Eaton Vance Municipal Income Trust
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: 811-09141
Eaton Vance Municipal Income Trust
(Exact Name of Registrant as Specified in Charter)
Two International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
Maureen A. Gemma
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
(617) 482-8260
(Registrants Telephone Number)
November 30
Date of Fiscal Year End
May 31, 2010
Item 1. Reports to Stockholders
IMPORTANT
NOTICES
Privacy. The Eaton Vance organization is committed
to ensuring your financial privacy. Each of the financial
institutions identified below has in effect the following policy
(Privacy Policy) with respect to nonpublic personal information
about its customers:
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Only such information received from you, through application
forms or otherwise, and information about your Eaton Vance fund
transactions will be collected. This may include information
such as name, address, social security number, tax status,
account balances and transactions.
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None of such information about you (or former customers) will be
disclosed to anyone, except as permitted by law (which includes
disclosure to employees necessary to service your account). In
the normal course of servicing a customers account, Eaton
Vance may share information with unaffiliated third parties that
perform various required services such as transfer agents,
custodians and broker/dealers.
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Policies and procedures (including physical, electronic and
procedural safeguards) are in place that are designed to protect
the confidentiality of such information.
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We reserve the right to change our Privacy Policy at any time
upon proper notification to you. Customers may want to review
our Privacy Policy periodically for changes by accessing the
link on our homepage: www.eatonvance.com.
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Our pledge of privacy applies to the following entities within
the Eaton Vance organization: the Eaton Vance Family of Funds,
Eaton Vance Management, Eaton Vance Investment Counsel, Boston
Management and Research, and Eaton Vance Distributors, Inc. Our
Privacy Policy applies only to those Eaton Vance customers who
are individuals and who have a direct relationship with us. If a
customers account (i.e., fund shares) is held in the name
of a third-party financial adviser/brokerdealer, it is likely
that only such advisers privacy policies apply to the
customer. This notice supersedes all previously issued privacy
disclosures. For more information about Eaton Vances
Privacy Policy, please call
1-800-262-1122.
Delivery of Shareholder Documents. The Securities
and Exchange Commission (the SEC) permits funds to
deliver only one copy of shareholder documents, including
prospectuses, proxy statements and shareholder reports, to fund
investors with multiple accounts at the same residential or post
office box address. This practice is often called
householding and it helps eliminate duplicate
mailings to shareholders.
Eaton Vance, or your financial adviser, may household the
mailing of your documents indefinitely unless you instruct Eaton
Vance, or your financial adviser, otherwise. If you
would prefer that your Eaton Vance documents not be householded,
please contact Eaton Vance at
1-800-262-1122,
or contact your financial adviser. Your instructions that
householding not apply to delivery of your Eaton Vance documents
will be effective within 30 days of receipt by Eaton Vance
or your financial adviser.
Portfolio Holdings. Each Eaton Vance Fund and its
underlying Portfolio(s) (if applicable) will file a schedule of
portfolio holdings on
Form N-Q
with the SEC for the first and third quarters of each fiscal
year. The
Form N-Q
will be available on the Eaton Vance website at
www.eatonvance.com, by calling Eaton Vance at
1-800-262-1122
or in the EDGAR database on the SECs website at
www.sec.gov.
Form N-Q
may also be reviewed and copied at the SECs public
reference room in Washington, D.C. (call
1-800-732-0330
for information on the operation of the public reference
room).
Proxy Voting. From time to time, funds are required
to vote proxies related to the securities held by the funds. The
Eaton Vance Funds or their underlying Portfolios (if applicable)
vote proxies according to a set of policies and procedures
approved by the Funds and Portfolios Boards. You may
obtain a description of these policies and procedures and
information on how the Funds or Portfolios voted proxies
relating to portfolio securities during the most recent
12 month period ended June 30, without charge, upon
request, by calling
1-800-262-1122.
This description is also available on the SECs website at
www.sec.gov.
Additional Notice to Shareholders. The Fund may
redeem or purchase its outstanding auction preferred shares
(APS) in order to maintain compliance with
regulatory requirements, borrowing or rating agency requirements
or for other purposes as it deems appropriate or necessary. The
Fund also may purchase shares of its common stock in the open
market when they trade at a discount to net asset value or at
other times if the Fund determines such purchases are advisable.
There can be no assurance that the Fund will take such action or
that such purchases would reduce the discount.
Eaton Vance Municipal Income Trust as of May 31, 2010
I N V E S T M E N T U P D A T E
Eaton Vance Municipal Income Trust (the Trust) is a closed-end fund, traded on the New York
Stock Exchange under the symbol EVN, designed to provide current income exempt from regular
federal income tax. This income is earned by investing primarily in investment-grade municipal
securities.
Economic and Market Conditions
During the six months ending May 31, 2010, the U.S. economy remained relatively stable, despite
continued high unemployment and concerns over the U.S. budget. U.S. equity and bond markets became
more skittish during the period, partially in reaction to the Euro Zone credit problems that began
in Greece. The U.S. economy grew at an annualized rate of 5.7% in the fourth quarter of 2009 and
2.7% in the first quarter of 2010, according to the U.S. Department of Commerce.
The municipal bond markets performance was relatively flat during the period, with slightly
negative returns in the final month of 2009 being offset by positive performance in the first part
of 2010. For the period, the Trusts primary benchmark, the Barclays Capital Long (22+) Municipal
Bond Index (the Index)a broad-based, unmanaged index of municipal bonds with maturities of at
least 22 yearsgained 6.08%.1 Economic fundamentals continued to improve and demand for
municipals remained strong.
The significant performance disparities among the municipal markets segments, which became
historically wide during 2008 and the first three quarters of 2009, began to dissipate during the
six-month period ended May 31, 2010. After nearly two years of irrational market behavior, we
witnessed a period in which there was more typicaland less volatileperformance across credit
quality, maturities and sectors. In the face of limited tax-exempt supply due to the success of the
Build America Bond program, demand from municipal investors remained positive during the period,
though the gusto with which they purchased municipal funds waned from 2009 levels. We believe
lighter inflows were likely driven by lower yields, a continuation of credit-related headline
noise and investor preparation for tax bills in March and April 2010.
Trust 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.
Management Discussion
During the six months ending May 31, 2010, the Trust outperformed the Index and its Lipper peer
group average at net asset value and market price.1 Given the combination of the Trusts
objective of providing tax-exempt income and the municipal yield curves historically upward slope,
the Trust generally holds longer-maturity bonds relative to the broad market than many of our
competitors. The Trust invests across the credit spectrum; as a result, narrowing credit yield
spreads during the period contributed to its outperformance of the Index. However, managements
bias toward long maturities, which was the basis for much of the Trusts significant relative
outperformance in the first three quarters of 2009, detracted slightly during the six-month period.
Management employed leverage in the Trust, through which additional exposure to the municipal
market was achieved. Leverage has the impact of magnifying the Trusts exposure to its underlying
investments in both up and down markets. During the period, the Trusts leverage also contributed
to its outperformance of the Index.
As we move ahead, we recognize that many state and local governments face significant budget
deficits that are driven primarily by a steep decline in tax revenues. We will continue to closely
monitor the economy and its impact on current and future budget deficits, and we will stay abreast
of any new solutions provided by state and local officials to address their fiscal problems. As in
all environments, we maintain our long-term perspective on the markets against the backdrop of
relatively short periods of market volatility. We will continue to actively manage the Trust with
the same income-focused, relative value approach we have always employed. We believe that this
approach, which is based on credit research and decades of experience in the municipal market, has
served municipal investors well over the long term.
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1 |
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It is not possible to invest directly in an Index or a Lipper Classification. The
Indexs total return does not reflect expenses that would have been incurred if an investor
individually purchased or sold the securities represented in the Index. |
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Past performance is no guarantee of future results. |
The views expressed throughout this report are those of the portfolio manager and are current only
through the end of the period of the report as stated on the cover. These views are subject to
change at any time based upon market or other conditions, and the investment adviser disclaims any
responsibility to update such views. These views may not be relied on as investment advice and,
because investment decisions for a fund are based on many factors, may not be relied on as an
indication of trading intent on behalf of any Eaton Vance fund. Portfolio information provided in
the report may not be representative of the Trusts current or future investments and may change
due to active management.
1
Eaton Vance Municipal Income Trust as of May 31, 2010
I N V E S T M E N T U P D A T E
A Note Regarding The Use Of Leverage
The Trust employs leverage through the issuance of Auction Preferred Shares (APS) and/or the use of
residual interest bond (RIB) financing.1 The Trusts APS and RIB leverage percentage as
of May 31, 2010, is reflected on page 3. The leverage created by APS and RIB investments provides
an opportunity for increased income but, at the same time, creates special risks (including the
likelihood of greater volatility of net asset value and market price of the common shares).
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1 |
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See Note 1H to the Financial Statements for more information on RIB investments. |
2
Eaton Vance Municipal Income Trust as of May 31, 2010
P E R F O R M A N C E I N F O R M A T I O N A N D P O R T F O L I O C O M P O S I T I O N
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Performance1 |
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NYSE Symbol |
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EVN |
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Average Annual Total Returns (by market price) |
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Six Months |
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13.70 |
% |
One Year |
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29.63 |
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Five Years |
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1.13 |
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Ten Years |
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9.23 |
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Life of Trust (1/29/99) |
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5.54 |
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Average Annual Total Returns (by net asset value) |
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Six Months |
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10.72 |
% |
One Year |
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31.03 |
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Five Years |
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2.29 |
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Ten Years |
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8.05 |
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Life of Trust (1/29/99) |
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4.76 |
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Premium/(Discount) to NAV (5/31/10) |
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8.76 |
% |
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Market Yields |
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Market Yield2
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7.58 |
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Taxable-Equivalent Market Yield3
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11.66 |
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Index Performance4 (Average Annual Total Returns)
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Barclays Capital Long (22+) Municipal Bond Index |
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Six Months |
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6.08 |
% |
One Year |
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13.53 |
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Five Years |
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3.86 |
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Ten Years |
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6.51 |
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Lipper Averages5 (Average Annual Total Returns)
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Lipper General Municipal Debt Funds (Leveraged) Classification (by net asset value) |
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Six Months |
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7.95 |
% |
One Year |
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18.69 |
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Five Years |
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3.79 |
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Ten Years |
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6.64 |
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Past performance is no guarantee of future results. Returns are historical and are calculated by
determining the percentage change in net asset value or market price (as applicable) with all
distributions reinvested. Investment return and principal value will fluctuate so that shares, when
sold, may be worth more or less than their original cost. Performance is for the stated time period
only; due to market volatility, the Trusts current performance may be lower or higher than
the quoted return. Trust performance during certain periods reflects the strong bond market
performance and/or the strong performance of bonds held during those periods. This performance is
not typical and may not be
repeated. For performance as of the most recent month end, please refer to www.eatonvance.com.
Portfolio Manager: Thomas M. Metzold, CFA
Rating Distribution*6
By total investments
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* |
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The rating distribution presented above includes the ratings of securities held by
special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the
Trusts financial statements. Absent such securities, the Trusts rating distribution at
5/31/10 is as follows: |
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AAA |
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20.8 |
% |
AA |
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13.6 |
% |
A |
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21.7 |
% |
BBB |
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18.1 |
% |
BB |
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2.5 |
% |
B |
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7.3 |
% |
CCC |
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1.9 |
% |
Not Rated |
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14.1 |
% |
Trust Statistics7
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188 |
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23.9 years
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Average Effective Maturity:
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18.1 years
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Average Call Protection:
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9.7 years
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$88.89 |
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24.6% |
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22.1% |
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** |
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APS leverage represents the liquidation value of the Trusts Auction Preferred Shares (APS)
outstanding as of 5/31/10 as a percentage of the Trusts net assets applicable to common shares
plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes
outstanding as of 5/31/10 as a percentage of the Trusts net assets applicable to common shares
plus APS and Floating Rate Notes. |
1 Six-month returns are cumulative. Other returns are presented on an average annual
basis. Returns are historical and are calculated by determining the percentage change in market
price or net asset value (as applicable) with all distributions reinvested. The Trusts performance
at market price will differ from its results at NAV. Although market price performance generally
reflects investment results over time, during shorter periods, returns at market price can also be
affected by factors such as changing perceptions about the Trust, market conditions, fluctuations
in supply and demand for the Trusts shares, or changes in Trust distributions. Performance results
reflect the effects of APS outstanding and RIB investments, which are forms of investment leverage.
Use of leverage creates an opportunity for increased income but, at the same time, creates special
risks (including the likelihood of greater volatility of net asset value and market price of common
shares). 2 The Trusts market yield is calculated by dividing the last regular dividend
per common share in the period (annualized) by the market price at the end of the period. 3
Taxable-equivalent figure assumes a maximum 35.00% federal income tax rate. A lower tax rate
would result in a lower tax-equivalent figure. 4 It is not possible to invest directly
in an
Index. The Indexs total returns do not reflect the expenses that would have been incurred if an
investor individually purchased or sold the securities represented in the Index. Index performance
is available as of month end only. 5 The Lipper Averages are the average annual total
returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust.
It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured
and uninsured funds, as well as leveraged and unleveraged funds. The Lipper General Municipal Debt
Funds (Leveraged) Classification (closed-end) contained 63, 62, 59 and 42 funds for the 6-month,
1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month
end only. 6 Ratings are based on Moodys, S&P or Fitch, as applicable. Credit
ratings are based largely on the rating agencys investment analysis at the time of rating and the
rating assigned to any particular security is not necessarily a reflection of the issuers current
financial condition. The rating assigned to a security by a rating agency does not necessarily
reflect its assessment of the volatility of a securitys market value or of the liquidity of an
investment in the security. If securities are rated differently by the rating agencies, the higher
rating is applied. 7 Trust holdings information excludes securities held by special
purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trusts financial
statements.
3
Eaton Vance
Municipal Income
Trust as
of May 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited)
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Tax-Exempt
Investments 191.7%
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Principal
Amount
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(000s
omitted)
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Security
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Value
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Cogeneration 1.4%
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$
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2,950
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Maryland Energy Financing Administration,
(AES Warrior Run), (AMT), 7.40%, 9/1/19
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$
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2,951,180
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1,300
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Pennsylvania Economic Development Financing Authority,
(Northampton Generating), (AMT), 6.50%, 1/1/13
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792,662
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$
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3,743,842
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Education 10.9%
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$
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9,000
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California Educational Facilities Authority,
(Stanford University),
5.25%, 12/1/32(1)
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$
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9,371,250
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1,000
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Massachusetts Development Finance Agency,
(Boston University), 6.00%, 5/15/59
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1,146,070
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2,490
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Massachusetts Health and Educational Facilities Authority,
(Harvard University),
5.00%, 10/1/38(1)
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2,646,115
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2,500
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Massachusetts Health and Educational Facilities Authority,
(Harvard University),
5.50%, 11/15/36(2)
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2,852,300
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10,500
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New York Dormitory Authority, (Cornell University),
5.00%, 7/1/39(1)
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11,141,235
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1,000
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Rhode Island Health and Educational Building Corp., (University
of Rhode Island), 6.25%, 9/15/34
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1,093,180
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$
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28,250,150
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Electric
Utilities 3.4%
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$
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1,300
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Brazos River Authority, TX, Pollution Control Revenue, (Texas
Energy Co.), (AMT), 5.40%, 5/1/29
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$
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616,265
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4,865
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Brazos River Authority, TX, Pollution Control Revenue, (Texas
Energy Co.), (AMT), 8.25%, 5/1/33
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3,025,154
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2,310
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Hawaii Department of Budget and Finance,
(Hawaiian Electric Co.), 6.50%, 7/1/39
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2,525,223
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2,935
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Massachusetts Development Finance Agency,
(Dominion Energy Brayton Point), (AMT), 5.00%, 2/1/36
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2,734,217
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$
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8,900,859
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General
Obligations 3.2%
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$
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500
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Burleson, TX, Independent School District, 5.00%, 8/1/38
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$
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527,940
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1,525
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California, (AMT), 5.05%, 12/1/36
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1,392,233
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4,000
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Michigan Municipal Bond Authority, 9.50%, 8/20/10
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3,996,320
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2,340
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Port Authority of Houston, TX, (Harris County), (AMT),
5.625%, 10/1/38(1)
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2,472,912
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$
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8,389,405
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Health
Care-Miscellaneous 1.2%
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$
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1,865
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|
New Jersey Health Care Facilities Financing Authority,
(Community Hospital Group, Inc.), 5.75%, 10/1/31
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$
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2,002,805
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117
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Osceola County, FL, Industrial Development Authority, (Community
Provider Pooled Loan), 7.75%, 7/1/17
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117,007
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231
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Tax Revenue Exempt Securities Trust, Community Health Provider,
(Pooled Loan Program Various States Trust Certificates),
6.00%, 12/1/36(3)
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237,099
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|
611
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Tax Revenue Exempt Securities Trust, Community Health Provider,
(Pooled Loan Program Various States Trust Certificates),
6.25%, 12/1/36(3)
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625,886
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232
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|
Tax Revenue Exempt Securities Trust, Community Health Provider,
(Pooled Loan Program Various States Trust Certificates),
7.75%, 12/1/36(3)
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|
237,484
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$
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3,220,281
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Hospital 23.5%
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|
$
|
10,000
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|
California Health Facilities Financing Authority, (Providence
Health System),
5.50%, 10/1/39(1)(4)
|
|
$
|
10,529,100
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|
|
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|
3,500
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|
California Statewide Communities Development Authority, (John
Muir Health), 5.00%, 8/15/34
|
|
|
3,408,650
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|
|
|
|
3,000
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|
California Statewide Communities Development Authority, (John
Muir Health), 5.00%, 8/15/36
|
|
|
2,914,410
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|
430
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|
Camden County, NJ, Improvement Authority,
(Cooper Health System), 5.00%, 2/15/25
|
|
|
414,348
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|
|
|
|
1,610
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|
Camden County, NJ, Improvement Authority,
(Cooper Health System), 5.00%, 2/15/35
|
|
|
1,455,520
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|
|
|
|
1,200
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|
Camden County, NJ, Improvement Authority,
(Cooper Health System), 5.25%, 2/15/27
|
|
|
1,172,496
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|
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|
680
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|
Chautauqua County, NY, Industrial Development Agency,
(Womens Christian Association), 6.35%, 11/15/17
|
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669,106
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|
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|
970
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|
Chautauqua County, NY, Industrial Development Agency,
(Womens Christian Association), 6.40%, 11/15/29
|
|
|
872,214
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|
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|
535
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|
Douglas County, NE, Hospital Authority No. 2, (Immanuel Health
System, Inc.), 5.50%, 1/1/30
|
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|
548,600
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|
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|
|
1,075
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|
Douglas County, NE, Hospital Authority No. 2, (Immanuel Health
System, Inc.), 5.625%, 1/1/40
|
|
|
1,092,867
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|
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|
1,885
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|
Hawaii Pacific Health Special Purpose Revenue,
5.50%, 7/1/40(5)
|
|
|
1,873,916
|
|
|
|
|
3,280
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|
|
Illinois Finance Authority, (Provena Healthcare),
7.75%, 8/15/34
|
|
|
3,726,113
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|
|
|
|
2,575
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|
Louisiana Public Facilities Authority, (Tuoro Infirmary),
5.625%, 8/15/29
|
|
|
1,989,960
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|
|
|
|
2,000
|
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|
Martin County, MN, (Fairmont Community Hospital Association),
6.625%, 9/1/22
|
|
|
2,014,080
|
|
|
|
|
2,280
|
|
|
Mecosta County, MI, (Michigan General Hospital),
6.00%, 5/15/18
|
|
|
2,218,189
|
|
|
|
|
3,000
|
|
|
Monroe County, PA, Hospital Authority, (Pocono Medical Center),
5.25%, 1/1/43
|
|
|
2,886,750
|
|
|
|
|
2,500
|
|
|
New York Dormitory Authority, (Memorial
Sloan-Kettering
Cancer Center),
5.00%, 7/1/36(1)
|
|
|
2,589,050
|
|
|
|
See
notes to financial statements
4
Eaton Vance
Municipal Income
Trust as
of May 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONTD
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
Hospital (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,465
|
|
|
New York Dormitory Authority, (Orange Regional Medical Center),
6.125%, 12/1/29
|
|
$
|
1,470,289
|
|
|
|
|
2,930
|
|
|
New York Dormitory Authority, (Orange Regional Medical Center),
6.25%, 12/1/37
|
|
|
2,862,346
|
|
|
|
|
11,400
|
|
|
North Carolina Medical Care Commission,
(North Carolina Baptist Hospital),
5.25%, 6/1/29(1)
|
|
|
12,168,208
|
|
|
|
|
1,570
|
|
|
South Lake County, FL, Hospital District,
(South Lake Hospital), 6.25%, 4/1/39
|
|
|
1,627,854
|
|
|
|
|
1,500
|
|
|
St. Paul, MN, Housing and Redevelopment Authority,
(HealthPartners, Inc.), 5.25%, 5/15/36
|
|
|
1,410,990
|
|
|
|
|
1,390
|
|
|
Sullivan County, TN, Health, Educational and Facilities Board,
(Wellmont Health System), Variable Rate, 5.44%, 9/1/32
|
|
|
1,299,859
|
|
|
|
|
|
|
|
|
|
|
|
$
|
61,214,915
|
|
|
|
|
|
|
|
Housing 18.0%
|
|
$
|
1,630
|
|
|
California Housing Finance Agency, (AMT), 4.75%, 8/1/42
|
|
$
|
1,270,455
|
|
|
|
|
2,050
|
|
|
California Housing Finance Agency, (AMT), 5.60%, 8/1/38
|
|
|
1,946,967
|
|
|
|
|
4,850
|
|
|
California Rural Home Mortgage Finance Authority, (AMT),
5.50%, 8/1/47
|
|
|
2,967,618
|
|
|
|
|
4,000
|
|
|
Charter Mac Equity Trust, TN,
6.00%, 5/15/19(3)
|
|
|
4,221,320
|
|
|
|
|
2,055
|
|
|
Colorado Housing and Finance Authority, (Birchwood Manor
Project), (GNMA), (AMT), 5.50%, 9/20/36
|
|
|
2,138,351
|
|
|
|
|
1,425
|
|
|
Fairfax County, VA, Redevelopment and Housing Authority, (Cedar
Ridge), (AMT), 4.85%, 10/1/48
|
|
|
1,358,053
|
|
|
|
|
1,530
|
|
|
Lake Creek, CO, Affordable Housing Corp., MFMR,
7.00%, 12/1/23
|
|
|
1,530,490
|
|
|
|
|
3,842
|
|
|
Muni Mae Tax-Exempt Bond, LLC,
7.50%, 6/30/49(3)
|
|
|
3,562,686
|
|
|
|
|
2,485
|
|
|
North Little Rock, AR, Residential Housing Facilities,
(Parkstone Place), 6.50%, 8/1/21
|
|
|
2,491,362
|
|
|
|
|
2,030
|
|
|
Ohio Housing Finance Agency, (Residential Mortgage-Backed
Securities), (FNMA), (GNMA), (AMT), 4.75%, 3/1/37
|
|
|
1,941,005
|
|
|
|
|
3,265
|
|
|
Oregon Health Authority, (Trillium Affordable Housing), (AMT),
6.75%, 2/15/29
|
|
|
3,043,992
|
|
|
|
|
4,020
|
|
|
Pennsylvania Housing Finance Agency, SFMR, (AMT),
4.70%, 10/1/37
|
|
|
3,796,448
|
|
|
|
|
13,480
|
|
|
Rhode Island Housing and Mortgage Finance Corp., (AMT),
5.45%, 10/1/47
|
|
|
13,561,486
|
|
|
|
|
3,300
|
|
|
Texas Student Housing Corp., (University of Northern Texas),
6.75%, 7/1/16
|
|
|
2,907,894
|
|
|
|
|
|
|
|
|
|
|
|
$
|
46,738,127
|
|
|
|
|
|
|
|
Industrial
Development Revenue 24.2%
|
|
$
|
1,640
|
|
|
ABIA Development Corp., TX, (Austin CargoPort Development),
(AMT), 6.50%, 10/1/24
|
|
$
|
1,408,383
|
|
|
|
|
3,260
|
|
|
Alabama Industrial Development Authority, Solid Waste Disposal,
(Pine City Fiber Co.), (AMT), 6.45%, 12/1/23
|
|
|
2,861,400
|
|
|
|
|
4,600
|
|
|
Brazos River, TX, Harbor Navigation District,
(Dow Chemical Co.), (AMT), 5.95%, 5/15/33
|
|
|
4,593,560
|
|
|
|
|
1,945
|
|
|
Broward County, FL, (Lynxs CargoPort), (AMT), 6.75%, 6/1/19
|
|
|
1,746,104
|
|
|
|
|
1,000
|
|
|
Butler County, AL, Industrial Development Authority,
(International Paper Co.), (AMT), 7.00%, 9/1/32
|
|
|
1,079,780
|
|
|
|
|
3,000
|
|
|
California Pollution Control Financing Authority,
(Browning-Ferris Industries, Inc.), (AMT), 6.875%, 11/1/27
|
|
|
3,004,830
|
|
|
|
|
1,300
|
|
|
California Pollution Control Financing Authority,
(Waste Management, Inc.), (AMT), 5.40%, 4/1/25
|
|
|
1,325,311
|
|
|
|
|
1,060
|
|
|
Capital Trust Agency, FL, (Fort Lauderdale Project), (AMT),
5.75%, 1/1/32
|
|
|
935,969
|
|
|
|
|
400
|
|
|
Clayton County, GA, Development Authority,
(Delta Airlines, Inc.), 8.75%, 6/1/29
|
|
|
426,920
|
|
|
|
|
2,240
|
|
|
Clayton County, GA, Development Authority,
(Delta Airlines, Inc.), (AMT), 9.00%, 6/1/35
|
|
|
2,333,722
|
|
|
|
|
2,625
|
|
|
Denver, CO, City and County Special Facilities,
(United Airlines), (AMT), 5.25%, 10/1/32
|
|
|
2,057,764
|
|
|
|
|
2,305
|
|
|
Denver, CO, City and County Special Facilities,
(United Airlines), (AMT), 5.75%, 10/1/32
|
|
|
1,936,131
|
|
|
|
|
1,000
|
|
|
Gulf Coast, TX, Waste Disposal Authority,
(Valero Energy Corp.), 5.60%, 4/1/32
|
|
|
940,000
|
|
|
|
|
2,500
|
|
|
Gulf Coast, TX, Waste Disposal Authority,
(Valero Energy Corp.), (AMT), 5.70%, 4/1/32
|
|
|
2,415,025
|
|
|
|
|
1,000
|
|
|
Indiana Financing Authority, (Duke Energy Indiana, Inc.),
6.00%, 8/1/39
|
|
|
1,098,260
|
|
|
|
|
1,590
|
|
|
Liberty Development Corp., NY, (Goldman Sachs Group, Inc.),
5.25%, 10/1/35
|
|
|
1,607,283
|
|
|
|
|
1,350
|
|
|
Liberty Development Corp., NY, (Goldman Sachs Group, Inc.),
5.25%, 10/1/35(1)
|
|
|
1,364,710
|
|
|
|
|
1,600
|
|
|
Luzerne County, PA, Industrial Development Authority,
(Pennsylvania-American Water Co.), 5.50%, 12/1/39
|
|
|
1,656,272
|
|
|
|
|
5,000
|
|
|
New Jersey Economic Development Authority, (Continental
Airlines), (AMT), 6.25%, 9/15/29
|
|
|
4,566,250
|
|
|
|
|
8,140
|
|
|
New York, NY, Industrial Development Agency, (American Airlines,
Inc. - JFK International Airport), (AMT), 7.75%, 8/1/31
|
|
|
8,326,162
|
|
|
|
|
3,500
|
|
|
New York, NY, Industrial Development Agency, (American Airlines,
Inc. - JFK International Airport), (AMT), 8.50%, 8/1/28
|
|
|
3,614,555
|
|
|
|
|
4,630
|
|
|
Phoenix, AZ, Industrial Development Authority, (America West
Airlines, Inc.), (AMT), 6.25%, 6/1/19
|
|
|
3,807,804
|
|
|
|
|
650
|
|
|
Puerto Rico Port Authority, (American Airlines, Inc.), (AMT),
6.30%, 6/1/23
|
|
|
530,777
|
|
|
|
|
2,090
|
|
|
Savannah, GA, Economic Development Authority,
(Intercat-Savannah), (AMT), 7.00%, 1/1/38
|
|
|
1,637,703
|
|
|
|
|
6,980
|
|
|
St. John Baptist Parish, LA, (Marathon Oil Corp.),
5.125%, 6/1/37
|
|
|
6,687,747
|
|
|
|
See
notes to financial statements
5
Eaton Vance
Municipal Income
Trust as
of May 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONTD
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
Industrial
Development Revenue (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,050
|
|
|
West Virginia Economic Development Authority, (Appalachian Power
Co.), Variable Rate, 5.375%, 12/1/38
|
|
$
|
1,053,759
|
|
|
|
|
|
|
|
|
|
|
|
$
|
63,016,181
|
|
|
|
|
|
|
|
Insured-Hospital 13.7%
|
|
$
|
3,250
|
|
|
Indiana Health and Educational Facility Finance Authority,
(Sisters of St. Francis Health Services), (AGM),
5.25%, 5/15/41(1)
|
|
$
|
3,349,645
|
|
|
|
|
2,625
|
|
|
Iowa Finance Authority, Health Facilities, (Iowa Health System),
(AGC), 5.625%, 8/15/37
|
|
|
2,804,681
|
|
|
|
|
15,000
|
|
|
Kentucky Economic Development Authority, (Norton Healthcare,
Inc.), (NPFG), 0.00%, 10/1/25
|
|
|
6,119,700
|
|
|
|
|
17,980
|
|
|
Kentucky Economic Development Authority, (Norton Healthcare,
Inc.), (NPFG),
0.00%, 10/1/26(6)
|
|
|
6,831,861
|
|
|
|
|
8,590
|
|
|
Kentucky Economic Development Authority, (Norton Healthcare,
Inc.), (NPFG), 0.00%, 10/1/27
|
|
|
3,045,327
|
|
|
|
|
2,500
|
|
|
Maryland Health and Higher Educational Facilities Authority,
(Lifebridge Health), (AGC),
4.75%, 7/1/47(1)
|
|
|
2,500,350
|
|
|
|
|
10,000
|
|
|
New Jersey Health Care Facilities Financing Authority, (Meridian
Health Center), Series I, (AGC),
5.00%, 7/1/38(1)
|
|
|
10,172,600
|
|
|
|
|
750
|
|
|
New Jersey Health Care Facilities Financing Authority, (Meridian
Health Center), Series V, (AGC),
5.00%, 7/1/38(1)
|
|
|
762,945
|
|
|
|
|
|
|
|
|
|
|
|
$
|
35,587,109
|
|
|
|
|
|
|
|
Insured-Housing 0.4%
|
|
$
|
1,100
|
|
|
Broward County, FL, Housing Finance Authority, MFMR, (Venice
Homes Apartments), (AGM), (AMT), 5.70%, 1/1/32
|
|
$
|
1,105,588
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,105,588
|
|
|
|
|
|
|
|
Insured-Lease
Revenue / Certificates of
Participation 2.1%
|
|
$
|
2,665
|
|
|
Hudson Yards, NY, Infrastructure Corp., (NPFG),
4.50%, 2/15/47
|
|
$
|
2,472,107
|
|
|
|
|
3,000
|
|
|
San Diego County, CA, Water Authority, Certificates of
Participation, (AGM),
5.00%, 5/1/38(1)
|
|
|
3,105,030
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,577,137
|
|
|
|
|
|
|
|
Insured-Other
Revenue 3.4%
|
|
$
|
4,210
|
|
|
Harris County-Houston, TX, Sports Authority, (NPFG),
0.00%, 11/15/34
|
|
$
|
810,383
|
|
|
|
|
10,325
|
|
|
New York, NY, Industrial Development Agency, (Yankee Stadium),
(AGC), 0.00%, 3/1/36
|
|
|
2,421,419
|
|
|
|
|
8,600
|
|
|
New York, NY, Industrial Development Agency, (Yankee Stadium),
(AGC), 0.00%, 3/1/37
|
|
|
1,886,754
|
|
|
|
|
3,100
|
|
|
New York, NY, Industrial Development Agency, (Yankee Stadium),
(AGC), 7.00%, 3/1/49
|
|
|
3,608,245
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,726,801
|
|
|
|
|
|
|
|
Insured-Special
Tax Revenue 9.9%
|
|
$
|
50,000
|
|
|
Metropolitan Pier and Exposition Authority, IL, (AGM), (NPFG),
0.00%, 12/15/38
|
|
$
|
9,299,000
|
|
|
|
|
34,950
|
|
|
Miami-Dade County, FL, Professional Sports Franchise Facilities,
(AGC), 0.00%, 10/1/37
|
|
|
6,905,071
|
|
|
|
|
3,040
|
|
|
Miami-Dade County, FL, Special Obligation, (NPFG),
0.00%, 10/1/35
|
|
|
572,219
|
|
|
|
|
5,000
|
|
|
Miami-Dade County, FL, Special Obligation, (NPFG),
0.00%, 10/1/38
|
|
|
753,500
|
|
|
|
|
5,610
|
|
|
Miami-Dade County, FL, Special Obligation, (NPFG),
0.00%, 10/1/40
|
|
|
729,412
|
|
|
|
|
2,290
|
|
|
New York Convention Center Development Corp., Hotel Occupancy
Tax, (AMBAC), 4.75%, 11/15/45
|
|
|
2,228,697
|
|
|
|
|
14,850
|
|
|
Puerto Rico Sales Tax Financing Corp., (AMBAC),
0.00%, 8/1/54
|
|
|
937,332
|
|
|
|
|
8,695
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44
|
|
|
1,116,873
|
|
|
|
|
17,245
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
|
|
|
2,061,295
|
|
|
|
|
10,850
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46
|
|
|
1,205,978
|
|
|
|
|
|
|
|
|
|
|
|
$
|
25,809,377
|
|
|
|
|
|
|
|
Insured-Student
Loan 5.9%
|
|
$
|
4,090
|
|
|
Maine Educational Loan Authority, (AGC), 5.625%, 12/1/27
|
|
$
|
4,312,987
|
|
|
|
|
805
|
|
|
Massachusetts Educational Financing Authority, (AGC), (AMT),
6.35%, 1/1/30
|
|
|
856,182
|
|
|
|
|
7,940
|
|
|
Massachusetts Educational Financing Authority, (AMBAC), (AMT),
4.70%, 1/1/33
|
|
|
7,026,264
|
|
|
|
|
3,000
|
|
|
New Jersey Higher Education Assistance Authority, (AGC), (AMT),
6.125%, 6/1/30
|
|
|
3,226,620
|
|
|
|
|
|
|
|
|
|
|
|
$
|
15,422,053
|
|
|
|
|
|
|
|
Insured-Transportation 19.5%
|
|
$
|
12,425
|
|
|
Alameda, CA, Corridor Transportation Authority, (NPFG),
0.00%, 10/1/33
|
|
$
|
2,731,139
|
|
|
|
|
3,500
|
|
|
Chicago, IL, (OHare International Airport), (AMBAC),
(AMT), 5.375%, 1/1/32
|
|
|
3,484,320
|
|
|
|
|
3,850
|
|
|
Clark County, NV, (Las Vegas-McCarran International Airport),
(AGM), 5.25%, 7/1/39
|
|
|
3,931,273
|
|
|
|
See
notes to financial statements
6
Eaton Vance
Municipal Income
Trust as
of May 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONTD
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
Insured-Transportation (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,500
|
|
|
Director of the State of Nevada Department of Business and
Industry, (Las Vegas Monorail), (AMBAC),
5.375%, 1/1/40(7)
|
|
$
|
1,653,795
|
|
|
|
|
1,000
|
|
|
Director of the State of Nevada Department of Business and
Industry, (Las Vegas Monorail), (AMBAC),
5.625%, 1/1/32(7)
|
|
|
300,690
|
|
|
|
|
2,100
|
|
|
Maryland Transportation Authority, (AGM),
5.00%, 7/1/41(1)
|
|
|
2,225,255
|
|
|
|
|
3,715
|
|
|
Miami-Dade County, FL, Aviation Revenue,
(Miami International Airport), (AGC), (CIFG), (AMT),
5.00%, 10/1/38
|
|
|
3,594,523
|
|
|
|
|
3,140
|
|
|
Miami-Dade County, FL, Aviation Revenue,
(Miami International Airport), (AGM), (AMT), 5.25%, 10/1/41
|
|
|
3,134,976
|
|
|
|
|
15,000
|
|
|
North Carolina Turnpike Authority, (AGC), 0.00%, 1/1/34
|
|
|
3,983,400
|
|
|
|
|
9,820
|
|
|
Puerto Rico Highway and Transportation Authority, (AGC), (CIFG),
5.25%, 7/1/41(1)
|
|
|
10,463,652
|
|
|
|
|
10,555
|
|
|
San Joaquin Hills, CA, Transportation Corridor Agency, Toll Road
Bonds, (NPFG), 0.00%, 1/15/32
|
|
|
1,918,477
|
|
|
|
|
1,610
|
|
|
San Jose, CA, Airport, (AGM), (AMBAC), (AMT), 5.00%, 3/1/37
|
|
|
1,536,793
|
|
|
|
|
2,500
|
|
|
San Jose, CA, Airport, (AGM), (AMBAC), (BHAC), (AMT),
5.00%, 3/1/37
|
|
|
2,511,200
|
|
|
|
|
8,990
|
|
|
San Jose, CA, Airport, (AMBAC), (AMT), 5.50%, 3/1/32
|
|
|
9,146,336
|
|
|
|
|
|
|
|
|
|
|
|
$
|
50,615,829
|
|
|
|
|
|
|
|
Insured-Water
and Sewer 10.4%
|
|
$
|
3,750
|
|
|
Austin, TX, Water and Wastewater, (AGM), (BHAC),
5.00%, 11/15/33(1)
|
|
$
|
3,907,462
|
|
|
|
|
17,985
|
|
|
DeKalb, GA, Water and Sewer, (AGM),
5.00%, 10/1/35(1)
|
|
|
19,796,449
|
|
|
|
|
3,250
|
|
|
Fernley, NV, Water and Sewer, (AGC),
5.00%, 2/1/38(1)
|
|
|
3,280,713
|
|
|
|
|
|
|
|
|
|
|
|
$
|
26,984,624
|
|
|
|
|
|
|
|
Lease
Revenue / Certificates of
Participation 1.9%
|
|
$
|
4,400
|
|
|
Mohave County, AZ, Industrial Development Authority, (Mohave
Prison LLC), 8.00%, 5/1/25
|
|
$
|
4,951,452
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,951,452
|
|
|
|
|
|
|
|
Nursing
Home 1.1%
|
|
$
|
265
|
|
|
Orange County, FL, Health Facilities Authority, (Westminster
Community Care), 6.60%, 4/1/24
|
|
$
|
265,064
|
|
|
|
|
2,735
|
|
|
Orange County, FL, Health Facilities Authority, (Westminster
Community Care), 6.75%, 4/1/34
|
|
|
2,666,734
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,931,798
|
|
|
|
|
|
|
Other
Revenue 14.2%
|
|
$
|
785
|
|
|
Brooklyn, NY, Arena Local Development Corp., (Barclays Center),
6.00%, 7/15/30
|
|
$
|
809,249
|
|
|
|
|
880
|
|
|
Brooklyn, NY, Arena Local Development Corp., (Barclays Center),
6.25%, 7/15/40
|
|
|
907,527
|
|
|
|
|
480
|
|
|
Brooklyn, NY, Arena Local Development Corp., (Barclays Center),
6.375%, 7/15/43
|
|
|
494,395
|
|
|
|
|
58,690
|
|
|
Buckeye Tobacco Settlement Financing Authority, OH,
0.00%, 6/1/47
|
|
|
1,987,830
|
|
|
|
|
1,955
|
|
|
Central Falls, RI, Detention Facility Revenue,
7.25%, 7/15/35
|
|
|
1,691,935
|
|
|
|
|
1,535
|
|
|
Main Street National Gas, Inc., GA, Gas Project Revenue,
5.50%, 9/15/27
|
|
|
1,511,315
|
|
|
|
|
7,600
|
|
|
Michigan Tobacco Settlement Finance Authority, 6.00%, 6/1/48
|
|
|
5,684,420
|
|
|
|
|
2,350
|
|
|
Michigan Tobacco Settlement Finance Authority,
6.875%, 6/1/42
|
|
|
2,105,389
|
|
|
|
|
1,500
|
|
|
Mohegan Tribe Indians Gaming Authority, CT,
(Public Improvements),
6.25%, 1/1/21(3)
|
|
|
1,309,845
|
|
|
|
|
5
|
|
|
New Jersey Economic Development Authority,
(Duke Farms Foundation), 5.00%, 7/1/48
|
|
|
5,267
|
|
|
|
|
2,370
|
|
|
New Jersey Economic Development Authority,
(Duke Farms Foundation),
5.00%, 7/1/48(1)
|
|
|
2,496,598
|
|
|
|
|
2,300
|
|
|
Northern Tobacco Securitization Corp., AK, 0.00%, 6/1/46
|
|
|
91,425
|
|
|
|
|
125
|
|
|
Otero County, NM, Jail Project Revenue, 5.50%, 4/1/13
|
|
|
123,021
|
|
|
|
|
360
|
|
|
Otero County, NM, Jail Project Revenue, 5.75%, 4/1/18
|
|
|
325,292
|
|
|
|
|
100
|
|
|
Otero County, NM, Jail Project Revenue, 6.00%, 4/1/23
|
|
|
83,203
|
|
|
|
|
110
|
|
|
Otero County, NM, Jail Project Revenue, 6.00%, 4/1/28
|
|
|
86,706
|
|
|
|
|
8,000
|
|
|
Salt Verde Financial Corp., AZ, Senior Gas Revenue,
5.00%, 12/1/37
|
|
|
7,226,880
|
|
|
|
|
4,000
|
|
|
Seminole Tribe, FL,
5.25%, 10/1/27(3)
|
|
|
3,629,360
|
|
|
|
|
1,365
|
|
|
Seminole Tribe, FL,
5.50%, 10/1/24(3)
|
|
|
1,292,328
|
|
|
|
|
1,000
|
|
|
Tennessee Energy Acquisition Corp., Gas Revenue,
5.00%, 2/1/22
|
|
|
981,470
|
|
|
|
|
6,905
|
|
|
Tobacco Settlement Financing Corp., VA, 0.00%, 6/1/47
|
|
|
233,872
|
|
|
|
|
4,180
|
|
|
Tobacco Settlement Financing Corp., VA, 5.00%, 6/1/47
|
|
|
2,789,272
|
|
|
|
|
1,415
|
|
|
White Earth Band of Chippewa Indians, MN,
6.375%, 12/1/26(3)
|
|
|
1,038,497
|
|
|
|
|
|
|
|
|
|
|
|
$
|
36,905,096
|
|
|
|
|
|
|
See
notes to financial statements
7
Eaton Vance
Municipal Income
Trust as
of May 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONTD
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
|
Senior
Living / Life Care 1.6%
|
|
$
|
3,210
|
|
|
Cliff House Trust, PA, (AMT), 6.625%, 6/1/27
|
|
$
|
1,682,618
|
|
|
|
|
3,240
|
|
|
Logan County, CO, Industrial Development, (TLC Care Choices,
Inc.),
6.875%, 12/1/23(8)
|
|
|
2,434,277
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,116,895
|
|
|
|
|
|
|
|
Special
Tax Revenue 4.0%
|
|
$
|
3,280
|
|
|
Bell Mountain Ranch, CO, Metropolitan District,
6.625%, 11/15/25
|
|
$
|
3,293,645
|
|
|
|
|
500
|
|
|
Covington Park, FL, Community Development District, (Capital
Improvements), 5.00%, 5/1/31
|
|
|
466,775
|
|
|
|
|
200
|
|
|
Dupree Lakes, FL, Community Development District,
5.00%, 11/1/10
|
|
|
181,020
|
|
|
|
|
205
|
|
|
Dupree Lakes, FL, Community Development District,
5.00%, 5/1/12
|
|
|
154,478
|
|
|
|
|
345
|
|
|
Dupree Lakes, FL, Community Development District,
5.375%, 5/1/37
|
|
|
264,894
|
|
|
|
|
300
|
|
|
Heritage Harbor South, FL, Community Development District,
(Capital Improvements), 6.20%, 5/1/35
|
|
|
295,863
|
|
|
|
|
210
|
|
|
Heritage Springs, FL, Community Development District,
5.25%, 5/1/26
|
|
|
186,283
|
|
|
|
|
190
|
|
|
Longleaf, FL, Community Development District,
6.20%, 5/1/09(9)
|
|
|
148,181
|
|
|
|
|
340
|
|
|
New River, FL, Community Development District, (Capital
Improvements), 5.00%, 5/1/13
|
|
|
135,864
|
|
|
|
|
140
|
|
|
New River, FL, Community Development District, (Capital
Improvements), 5.35%, 5/1/38
|
|
|
56,280
|
|
|
|
|
320
|
|
|
North Springs, FL, Improvement District, (Heron Bay),
5.20%, 5/1/27
|
|
|
208,390
|
|
|
|
|
520
|
|
|
North Springs, FL, Improvement District, (Heron Bay),
7.00%, 5/1/19
|
|
|
520,328
|
|
|
|
|
960
|
|
|
River Hall, FL, Community Development District, (Capital
Improvements), 5.45%, 5/1/36
|
|
|
464,314
|
|
|
|
|
470
|
|
|
Southern Hills Plantation I, FL, Community Development District,
5.80%, 5/1/35
|
|
|
240,203
|
|
|
|
|
600
|
|
|
Sterling Hill, FL, Community Development District,
6.20%, 5/1/35
|
|
|
562,470
|
|
|
|
|
655
|
|
|
University Square, FL, Community Development District,
6.75%, 5/1/20
|
|
|
657,043
|
|
|
|
|
1,780
|
|
|
Virgin Islands Public Finance Authority, 6.75%, 10/1/37
|
|
|
1,990,342
|
|
|
|
|
655
|
|
|
Waterlefe, FL, Community Development District, 6.95%, 5/1/31
|
|
|
654,234
|
|
|
|
|
|
|
|
|
|
|
|
$
|
10,480,607
|
|
|
|
|
|
|
|
Student
Loan 3.3%
|
|
$
|
8,500
|
|
|
New Jersey Higher Education Assistance Authority, (AMT),
Variable Rate,
1.337%, 6/1/36(1)
|
|
$
|
8,487,420
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,487,420
|
|
|
|
|
|
|
Transportation 11.4%
|
|
$
|
1,220
|
|
|
Augusta, GA, (AMT), 5.35%, 1/1/28
|
|
$
|
1,111,749
|
|
|
|
|
915
|
|
|
Branson, MO, Regional Airport Transportation Development
District, (Branson Airport, LLC), (AMT), 6.00%, 7/1/25
|
|
|
479,332
|
|
|
|
|
1,800
|
|
|
Branson, MO, Regional Airport Transportation Development
District, (Branson Airport, LLC), (AMT), 6.00%, 7/1/37
|
|
|
942,966
|
|
|
|
|
1,000
|
|
|
Los Angeles Department of Airports, CA, (Los Angeles
International Airport), (AMT), 5.375%, 5/15/33
|
|
|
1,030,330
|
|
|
|
|
400
|
|
|
Memphis-Shelby County, TN, Airport Authority, (AMT),
5.75%, 7/1/24
|
|
|
424,180
|
|
|
|
|
4,000
|
|
|
Miami-Dade County, FL, Aviation Revenue,
(Miami International Airport), 5.50%, 10/1/36
|
|
|
4,132,440
|
|
|
|
|
1,515
|
|
|
North Texas Tollway Authority, 5.75%, 1/1/38
|
|
|
1,586,947
|
|
|
|
|
1,500
|
|
|
Pennsylvania Turnpike Commission, 0.00%, 12/1/38
|
|
|
1,023,105
|
|
|
|
|
7,290
|
|
|
Port Authority of New York and New Jersey, (AMT),
5.75%, 3/15/35(1)
|
|
|
7,806,399
|
|
|
|
|
1,250
|
|
|
Texas Private Activity Bond Surface Transportation Corp., (North
Tarrant Express Managed Lanes Project), 6.875%, 12/31/39
|
|
|
1,319,463
|
|
|
|
|
9,300
|
|
|
Triborough Bridge & Tunnel Authority, NY,
5.00%, 11/15/37(1)
|
|
|
9,766,953
|
|
|
|
|
|
|
|
|
|
|
|
$
|
29,623,864
|
|
|
|
|
|
|
|
Water
and Sewer 3.1%
|
|
$
|
3,405
|
|
|
Massachusetts Water Resources Authority, 4.00%, 8/1/46
|
|
$
|
3,114,043
|
|
|
|
|
4,500
|
|
|
New York, NY, Municipal Water Finance Authority, (Water and
Sewer System),
5.25%, 6/15/40(1)
|
|
|
4,870,125
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7,984,168
|
|
|
|
|
|
|
|
|
Total
Tax-Exempt Investments 191.7%
|
|
|
(identified
cost $503,831,236)
|
|
$
|
498,783,578
|
|
|
|
|
|
|
|
|
Auction
Preferred Shares Plus Cumulative
|
|
|
Unpaid
Dividends (46.2)%
|
|
$
|
(120,157,161
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Other
Assets, Less Liabilities (45.5)%
|
|
$
|
(118,378,771
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets Applicable to
Common Shares 100.0%
|
|
$
|
260,247,646
|
|
|
|
|
|
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.
See
notes to financial statements
8
Eaton Vance
Municipal Income
Trust as
of May 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONTD
AMT - Interest earned from these securities may be
considered a tax preference item for purposes of the Federal
Alternative Minimum Tax.
BHAC - Berkshire Hathaway Assurance Corp.
CIFG - CIFG Assurance North America, Inc.
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
MFMR - Multi-Family Mortgage Revenue
NPFG - National Public Finance Guaranty Corp.
SFMR - Single Family Mortgage Revenue
At May 31, 2010, the concentration of the Trusts
investments in the various states, determined as a percentage of
total investments, is as follows:
|
|
|
|
|
New York
|
|
|
14.4%
|
|
California
|
|
|
12.0%
|
|
Others, representing less than 10% individually
|
|
|
73.6%
|
|
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
May 31, 2010, 34.0% 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 ranged from 1.3% to 12.2% of
total investments.
|
|
|
(1)
|
|
Security represents the underlying municipal bond of an inverse
floater (see Note 1H). |
|
(2)
|
|
Security (or a portion thereof) has been pledged to cover margin
requirements on open financial futures contracts. |
|
(3)
|
|
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 May 31,
2010, the aggregate value of these securities is $16,154,505 or
6.2% of the Trusts net assets applicable to common shares. |
|
(4)
|
|
Security (or a portion thereof) has been pledged as collateral
for inverse floating-rate security transactions. The aggregate
value of such collateral is $3,029,100. |
|
(5)
|
|
When-issued security. |
|
(6)
|
|
Security (or a portion thereof) has been segregated to cover
payable for when-issued securities. |
|
(7)
|
|
Defaulted bond. |
|
(8)
|
|
Security is in default and is making only partial interest
payments. |
|
(9)
|
|
Defaulted matured bond. |
See
notes to financial statements
9
Eaton Vance
Municipal Income
Trust as
of May 31, 2010
FINANCIAL
STATEMENTS (Unaudited)
Statement
of Assets and Liabilities
|
|
|
|
|
|
|
As of
May 31, 2010
|
|
|
|
|
|
|
Assets
|
|
Investments, at value (identified cost, $503,831,236)
|
|
$
|
498,783,578
|
|
|
|
Interest receivable
|
|
|
7,728,680
|
|
|
|
Receivable for investments sold
|
|
|
20,210
|
|
|
|
Deferred debt issuance costs
|
|
|
85,511
|
|
|
|
|
|
Total assets
|
|
$
|
506,617,979
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
Payable for floating rate notes issued
|
|
$
|
107,905,000
|
|
|
|
Payable for investments purchased
|
|
|
14,676,344
|
|
|
|
Payable for when-issued securities
|
|
|
1,848,246
|
|
|
|
Payable for variation margin on open financial futures contracts
|
|
|
82,031
|
|
|
|
Due to custodian
|
|
|
1,004,551
|
|
|
|
Payable to affiliates:
|
|
|
|
|
|
|
Investment adviser fee
|
|
|
248,245
|
|
|
|
Administration fee
|
|
|
72,480
|
|
|
|
Trustees fees
|
|
|
2,388
|
|
|
|
Interest expense and fees payable
|
|
|
222,245
|
|
|
|
Accrued expenses
|
|
|
151,642
|
|
|
|
|
|
Total liabilities
|
|
$
|
126,213,172
|
|
|
|
|
|
Auction preferred shares at liquidation value plus cumulative
unpaid dividends
|
|
$
|
120,157,161
|
|
|
|
|
|
Net assets applicable to common shares
|
|
$
|
260,247,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sources
of Net Assets
|
|
Common shares, $0.01 par value, unlimited number of shares
authorized
|
|
$
|
225,654
|
|
|
|
Additional paid-in capital
|
|
|
302,643,014
|
|
|
|
Accumulated net realized loss
|
|
|
(42,916,882
|
)
|
|
|
Accumulated undistributed net investment income
|
|
|
4,452,858
|
|
|
|
Net unrealized depreciation
|
|
|
(4,156,998
|
)
|
|
|
|
|
Net assets applicable to common shares
|
|
$
|
260,247,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auction
Preferred Shares Issued and
Outstanding (Liquidation preference
of $25,000 per share)
|
|
|
|
|
4,806
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Shares Outstanding
|
|
|
|
|
22,565,406
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Asset Value Per Common Share
|
|
Net assets applicable to common shares
¸
common shares issued and outstanding
|
|
$
|
11.53
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six
Months Ended
|
|
|
|
|
|
May 31,
2010
|
|
|
|
|
|
|
Investment
Income
|
|
Interest
|
|
$
|
14,165,064
|
|
|
|
|
|
Total investment income
|
|
$
|
14,165,064
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
Investment adviser fee
|
|
$
|
1,465,474
|
|
|
|
Administration fee
|
|
|
420,260
|
|
|
|
Trustees fees and expenses
|
|
|
7,439
|
|
|
|
Custodian fee
|
|
|
73,701
|
|
|
|
Transfer and dividend disbursing agent fees
|
|
|
18,350
|
|
|
|
Legal and accounting services
|
|
|
65,577
|
|
|
|
Printing and postage
|
|
|
47,095
|
|
|
|
Interest expense and fees
|
|
|
368,011
|
|
|
|
Preferred shares service fee
|
|
|
86,910
|
|
|
|
Miscellaneous
|
|
|
45,482
|
|
|
|
|
|
Total expenses
|
|
$
|
2,598,299
|
|
|
|
|
|
Deduct
|
|
|
|
|
|
|
Reduction of custodian fee
|
|
$
|
65
|
|
|
|
|
|
Total expense reductions
|
|
$
|
65
|
|
|
|
|
|
|
|
|
|
|
|
|
Net expenses
|
|
$
|
2,598,234
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
11,566,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized
and Unrealized Gain (Loss)
|
|
Net realized gain (loss)
|
|
|
|
|
|
|
Investment transactions
|
|
$
|
437,946
|
|
|
|
Financial futures contracts
|
|
|
(4,025,865
|
)
|
|
|
|
|
Net realized loss
|
|
$
|
(3,587,919
|
)
|
|
|
|
|
Change in unrealized appreciation (depreciation)
|
|
|
|
|
|
|
Investments
|
|
$
|
17,451,907
|
|
|
|
Financial futures contracts
|
|
|
890,660
|
|
|
|
|
|
Net change in unrealized appreciation (depreciation)
|
|
$
|
18,342,567
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized and unrealized gain
|
|
$
|
14,754,648
|
|
|
|
|
|
Distributions to preferred shareholders
|
|
|
|
|
|
|
From net investment income
|
|
$
|
(233,865
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
26,087,613
|
|
|
|
|
|
See
notes to financial statements
10
Eaton Vance
Municipal Income
Trust as
of May 31, 2010
FINANCIAL
STATEMENTS CONTD
Statements
of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
Increase (Decrease)
|
|
May 31,
2010
|
|
|
Year Ended
|
|
|
|
in Net Assets
|
|
(Unaudited)
|
|
|
November 30,
2009
|
|
|
|
|
From operations
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
11,566,830
|
|
|
$
|
19,582,420
|
|
|
|
Net realized loss from investment transactions, financial
futures contracts and swap contracts
|
|
|
(3,587,919
|
)
|
|
|
(21,027,307
|
)
|
|
|
Net change in unrealized appreciation (depreciation) from
investments, financial futures contracts and swap contracts
|
|
|
18,342,567
|
|
|
|
72,547,936
|
|
|
|
Distributions to preferred shareholders
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(233,865
|
)
|
|
|
(726,603
|
)
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
26,087,613
|
|
|
$
|
70,376,446
|
|
|
|
|
|
Distributions to common shareholders
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
$
|
(10,548,300
|
)
|
|
$
|
(16,875,356
|
)
|
|
|
|
|
Total distributions to common shareholders
|
|
$
|
(10,548,300
|
)
|
|
$
|
(16,875,356
|
)
|
|
|
|
|
Capital share transactions
|
|
|
|
|
|
|
|
|
|
|
Reinvestment of distributions to common shareholders
|
|
$
|
862,556
|
|
|
$
|
1,731,349
|
|
|
|
Issued in connection with tax-free reorganization (see
Note 11)
|
|
|
|
|
|
|
48,359,695
|
|
|
|
|
|
Net increase in net assets from capital
share transactions
|
|
$
|
862,556
|
|
|
$
|
50,091,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in net assets
|
|
$
|
16,401,869
|
|
|
$
|
103,592,134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets Applicable to
Common Shares
|
|
At beginning of period
|
|
$
|
243,845,777
|
|
|
$
|
140,253,643
|
|
|
|
|
|
At end of period
|
|
$
|
260,247,646
|
|
|
$
|
243,845,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
undistributed
net investment income
included in net assets
applicable to common shares
|
|
At end of period
|
|
$
|
4,452,858
|
|
|
$
|
3,668,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six
Months Ended
|
|
|
|
Cash Flows From
|
|
May 31,
2010
|
|
|
|
Operating Activities
|
|
(Unaudited)
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
26,087,613
|
|
|
|
Distributions to preferred shareholders
|
|
|
233,865
|
|
|
|
|
|
Net increase in net assets from operations excluding
distributions to preferred shareholders
|
|
$
|
26,321,478
|
|
|
|
Adjustments to reconcile net increase in net assets from
operations to net cash used in operating activities:
|
|
|
|
|
|
|
Investments purchased
|
|
|
(72,993,945
|
)
|
|
|
Investments sold
|
|
|
33,738,454
|
|
|
|
Net accretion/amortization of premium (discount)
|
|
|
(1,833,822
|
)
|
|
|
Amortization of deferred debt issuance costs
|
|
|
4,652
|
|
|
|
Increase in interest receivable
|
|
|
(506,220
|
)
|
|
|
Decrease in receivable for investments sold
|
|
|
84,790
|
|
|
|
Increase in payable for investments purchased
|
|
|
14,676,344
|
|
|
|
Increase in payable for when-issued securities
|
|
|
248,246
|
|
|
|
Increase in payable for variation margin on open financial
futures contracts
|
|
|
82,031
|
|
|
|
Increase in payable to affiliate for investment adviser fee
|
|
|
12,270
|
|
|
|
Increase in payable to affiliate for administration fees
|
|
|
5,059
|
|
|
|
Increase in payable to affiliate for Trustees fees
|
|
|
271
|
|
|
|
Increase in interest expense and fees payable
|
|
|
3,164
|
|
|
|
Increase in accrued expenses
|
|
|
11,281
|
|
|
|
Net change in unrealized (appreciation) depreciation from
investments
|
|
|
(17,451,907
|
)
|
|
|
Net realized gain from investments
|
|
|
(437,946
|
)
|
|
|
|
|
Net cash used in operating activities
|
|
$
|
(18,035,800
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
Flows From Financing Activities
|
|
Distributions paid to common shareholders, net of reinvestments
|
|
$
|
(9,685,744
|
)
|
|
|
Cash distributions paid to preferred shareholders
|
|
|
(233,983
|
)
|
|
|
Proceeds from secured borrowings
|
|
|
26,390,000
|
|
|
|
Increase in due to custodian
|
|
|
1,004,551
|
|
|
|
|
|
Net cash provided by financing activities
|
|
$
|
17,474,824
|
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash
|
|
$
|
(560,976
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Cash at beginning of period
|
|
$
|
560,976
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at end of period
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow
information:
|
|
Noncash financing activities not included herein consist of:
|
|
|
|
|
|
|
Reinvestment of dividends and distributions
|
|
$
|
862,556
|
|
|
|
Cash paid for interest and fees
|
|
$
|
210,570
|
|
|
|
|
|
See
notes to financial statements
11
Eaton Vance
Municipal Income
Trust as
of May 31, 2010
FINANCIAL
STATEMENTS CONTD
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
Year Ended
November 30,
|
|
|
May 31,
2010
|
|
|
|
|
|
(Unaudited)
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
2005
|
|
|
|
|
Net asset value Beginning of period (Common shares)
|
|
$
|
10.840
|
|
|
$
|
8.110
|
|
|
$
|
14.370
|
|
|
$
|
15.880
|
|
|
$
|
14.470
|
|
|
$
|
13.950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(Loss) From Operations
|
|
Net investment
income(1)
|
|
$
|
0.513
|
|
|
$
|
0.981
|
|
|
$
|
1.067
|
|
|
$
|
1.076
|
|
|
$
|
1.100
|
|
|
$
|
1.165
|
|
|
|
Net realized and unrealized gain (loss)
|
|
|
0.655
|
|
|
|
2.648
|
|
|
|
(6.262
|
)
|
|
|
(1.518
|
)
|
|
|
1.444
|
|
|
|
0.611
|
|
|
|
Distributions to preferred shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment
income(1)
|
|
|
(0.010
|
)
|
|
|
(0.036
|
)
|
|
|
(0.258
|
)
|
|
|
(0.278
|
)
|
|
|
(0.252
|
)
|
|
|
(0.151
|
)
|
|
|
|
|
Total income (loss) from operations
|
|
$
|
1.158
|
|
|
$
|
3.593
|
|
|
$
|
(5.453
|
)
|
|
$
|
(0.720
|
)
|
|
$
|
2.292
|
|
|
$
|
1.625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions to Common Shareholders
|
|
From net investment income
|
|
$
|
(0.468
|
)
|
|
$
|
(0.863
|
)
|
|
$
|
(0.807
|
)
|
|
$
|
(0.790
|
)
|
|
$
|
(0.882
|
)
|
|
$
|
(1.105
|
)
|
|
|
|
|
Total distributions to common shareholders
|
|
$
|
(0.468
|
)
|
|
$
|
(0.863
|
)
|
|
$
|
(0.807
|
)
|
|
$
|
(0.790
|
)
|
|
$
|
(0.882
|
)
|
|
$
|
(1.105
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value End of period (Common shares)
|
|
$
|
11.530
|
|
|
$
|
10.840
|
|
|
$
|
8.110
|
|
|
$
|
14.370
|
|
|
$
|
15.880
|
|
|
$
|
14.470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value End of period (Common shares)
|
|
$
|
12.540
|
|
|
$
|
11.480
|
|
|
$
|
8.450
|
|
|
$
|
13.300
|
|
|
$
|
16.010
|
|
|
$
|
14.960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Net Asset
Value(2)
|
|
|
10.72
|
%(3)
|
|
|
46.43
|
%
|
|
|
(39.72
|
)%
|
|
|
(4.62
|
)%
|
|
|
16.33
|
%
|
|
|
11.56
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Market
Value(2)
|
|
|
13.70
|
%(3)
|
|
|
48.84
|
%
|
|
|
(32.13
|
)%
|
|
|
(12.44
|
)%
|
|
|
13.43
|
%
|
|
|
(0.38
|
)%
|
|
|
|
|
See
notes to financial statements
12
Eaton Vance
Municipal Income
Trust as
of May 31, 2010
FINANCIAL
STATEMENTS CONTD
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
Year Ended
November 30,
|
|
|
May 31,
2010
|
|
|
|
|
|
(Unaudited)
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
2005
|
|
|
|
|
|
|
Ratios/Supplemental
Data
|
|
Net assets applicable to common shares, end of period
(000s omitted)
|
|
$
|
260,248
|
|
|
$
|
243,846
|
|
|
$
|
140,254
|
|
|
$
|
246,974
|
|
|
$
|
272,274
|
|
|
$
|
246,915
|
|
|
|
Ratios (as a percentage of average daily net assets applicable
to common
shares):(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding interest and fees
|
|
|
1.75
|
%(5)
|
|
|
2.00
|
%
|
|
|
1.84
|
%
|
|
|
1.71
|
%(6)
|
|
|
1.76
|
%
|
|
|
1.79
|
%
|
|
|
Interest and fee
expense(7)
|
|
|
0.29
|
%(5)
|
|
|
0.47
|
%
|
|
|
0.73
|
%
|
|
|
1.35
|
%
|
|
|
1.46
|
%
|
|
|
0.95
|
%
|
|
|
Total expenses before custodian fee reduction
|
|
|
2.04
|
%(5)
|
|
|
2.47
|
%
|
|
|
2.57
|
%
|
|
|
3.06
|
%(6)
|
|
|
3.22
|
%
|
|
|
2.74
|
%
|
|
|
Expenses after custodian fee reduction excluding interest and
fees
|
|
|
1.75
|
%(5)
|
|
|
2.00
|
%
|
|
|
1.82
|
%
|
|
|
1.70
|
%(6)
|
|
|
1.75
|
%
|
|
|
1.78
|
%
|
|
|
Net investment income
|
|
|
9.09
|
%(5)
|
|
|
10.44
|
%
|
|
|
8.45
|
%
|
|
|
7.02
|
%
|
|
|
7.27
|
%
|
|
|
8.08
|
%
|
|
|
Portfolio Turnover
|
|
|
7
|
%(3)
|
|
|
44
|
%
|
|
|
53
|
%
|
|
|
37
|
%
|
|
|
41
|
%
|
|
|
28
|
%
|
|
|
|
|
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
|
|
|
1.19
|
%(5)
|
|
|
1.26
|
%
|
|
|
1.17
|
%
|
|
|
1.14
|
%(6)
|
|
|
1.17
|
%
|
|
|
1.17
|
%
|
|
|
Interest and fee
expense(7)
|
|
|
0.20
|
%(5)
|
|
|
0.29
|
%
|
|
|
0.47
|
%
|
|
|
0.90
|
%
|
|
|
0.97
|
%
|
|
|
0.62
|
%
|
|
|
Total expenses before custodian fee reduction
|
|
|
1.39
|
%(5)
|
|
|
1.55
|
%
|
|
|
1.64
|
%
|
|
|
2.04
|
%(6)
|
|
|
2.14
|
%
|
|
|
1.79
|
%
|
|
|
Expenses after custodian fee reduction excluding interest and
fees
|
|
|
1.19
|
%(5)
|
|
|
1.26
|
%
|
|
|
1.16
|
%
|
|
|
1.14
|
%(6)
|
|
|
1.17
|
%
|
|
|
1.16
|
%
|
|
|
Net investment income
|
|
|
6.18
|
%(5)
|
|
|
6.56
|
%
|
|
|
5.40
|
%
|
|
|
4.69
|
%
|
|
|
4.83
|
%
|
|
|
5.27
|
%
|
|
|
|
|
Senior Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total preferred shares outstanding
|
|
|
4,806
|
|
|
|
4,806
|
|
|
|
4,394
|
|
|
|
5,240
|
|
|
|
5,240
|
|
|
|
5,240
|
|
|
|
Asset coverage per preferred
share(8)
|
|
$
|
79,152
|
|
|
$
|
75,739
|
|
|
$
|
56,919
|
|
|
$
|
72,138
|
|
|
$
|
76,963
|
|
|
$
|
72,128
|
|
|
|
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. |
|
(3)
|
|
Not annualized. |
|
(4)
|
|
Ratios do not reflect the effect of dividend payments to
preferred shareholders. |
|
(5)
|
|
Annualized. |
|
(6)
|
|
The investment adviser was allocated a portion of the
Trusts operating expenses (equal to less than 0.005% of
average daily net assets for the year ended November 30,
2007). Absent this allocation, total return would be lower. |
|
(7)
|
|
Interest and fee expense relates to the liability for floating
rate notes issued in conjunction with inverse floater securities
transactions (see Note 1H). |
|
(8)
|
|
Calculated by subtracting the Trusts total liabilities
(not including the preferred shares) from the Trusts total
assets, and dividing the result by the number of preferred
shares outstanding. |
|
(9)
|
|
Plus accumulated and unpaid dividends. |
See
notes to financial statements
13
Eaton Vance
Municipal Income
Trust as
of May 31, 2010
NOTES TO FINANCIAL
STATEMENTS (Unaudited)
1 Significant
Accounting Policies
Eaton Vance Municipal Income Trust (the Trust) is a
Massachusetts business trust registered under the Investment
Company Act of 1940, as amended (the 1940 Act), as a
diversified, closed-end management investment company. The Trust
seeks to provide current income exempt from regular federal
income tax.
The following is a summary of significant accounting policies of
the Trust. The policies are in conformity with accounting
principles generally accepted in the United States of
America.
A Investment
Valuation Debt obligations (including
short-term obligations with a remaining maturity of more than
sixty days) are generally valued on the basis of valuations
provided by third party pricing services, as derived from such
services pricing models. Inputs to the models may include,
but are not limited to, reported trades, executable bid and
asked prices,
broker/dealer
quotations, prices or yields of securities with similar
characteristics, benchmark curves or information pertaining to
the issuer, as well as industry and economic events. The pricing
services may use a matrix approach, which considers information
regarding securities with similar characteristics to determine
the valuation for a security. Short-term obligations purchased
with a remaining maturity of sixty days or less are generally
valued at amortized cost, which approximates market value.
Financial futures contracts are valued at the closing settlement
price established by the board of trade or exchange on which
they are traded. Interest rate swaps are normally valued using
valuations provided by a third party pricing service. Such
pricing service valuations are based on the present value of
fixed and projected floating rate cash flows over the term of
the swap contract. Future cash flows are discounted to their
present value using swap curves provided by electronic data
services or by broker/dealers. Investments for which valuations
or market quotations are not readily available or are deemed
unreliable are valued at fair value using methods determined in
good faith by or at the direction of the Trustees of the Trust
in a manner that most fairly reflects the securitys value,
or the amount that the Trust might reasonably expect to receive
for the security upon its current sale in the ordinary course.
Each such determination is based on a consideration of all
relevant factors, which are likely to vary from one pricing
context to another. These factors may include, but are not
limited to, the type of security, the existence of any
contractual restrictions on the securitys disposition, the
price and extent of public trading in similar securities of the
issuer or of comparable entities, quotations or relevant
information obtained from broker-dealers or other market
participants, information obtained from the issuer, analysts,
and/or the
appropriate stock exchange (for exchange-traded securities), an
analysis of the entitys financial condition, and an
evaluation of the forces that influence the issuer and the
market(s) in which the security is purchased and sold.
B Investment
Transactions and Related Income Investment
transactions for financial statement purposes are accounted for
on a trade date basis. Realized gains and losses on investments
sold are determined on the basis of identified cost. Interest
income is recorded on the basis of interest accrued, adjusted
for amortization of premium or accretion of discount.
C Federal
Taxes The Trusts policy is to comply
with the provisions of the Internal Revenue Code applicable to
regulated investment companies and to distribute to shareholders
each year substantially all of its taxable, if any, and
tax-exempt net investment income, and all or substantially all
of its net realized capital gains. Accordingly, no provision for
federal income or excise tax is necessary. The Trust intends to
satisfy conditions which will enable it to designate
distributions from the interest income generated by its
investments in municipal obligations, which are exempt from
regular federal income tax when received by the Trust, as
exempt-interest dividends. The portion of such interest, if any,
earned on private activity bonds issued after August 7,
1986, may be considered a tax preference item to shareholders.
At November 30, 2009, the Trust, for federal income tax
purposes, had a capital loss carryforward of $39,676,505 which
will reduce its 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 Trust of any liability for federal
income or excise tax. Such capital loss carryforward will expire
on November 30, 2011 ($4,036,249), November 30, 2012
($2,812,831), November 30, 2015 ($1,728,781),
November 30, 2016 ($11,985,328) and November 30, 2017
($19,113,316).
A capital loss carryforward of $4,633,627 included in the
amounts above is available to the Trust as a result of the
reorganization on May 28, 2009 (see Note 11).
Utilization of this capital loss carryforward may be limited in
accordance with certain income tax regulations.
As of May 31, 2010, the Trust had no uncertain tax
positions that would require financial statement recognition,
de-recognition, or disclosure. Each of the Trusts federal
tax returns filed in the
3-year
period ended November 30, 2009 remains subject to
examination by the Internal Revenue Service.
D Expense
Reduction State Street Bank and
Trust Company (SSBT) serves as custodian of the Trust.
Pursuant to the custodian agreement, SSBT receives a fee
14
Eaton Vance
Municipal Income
Trust as
of May 31, 2010
NOTES TO FINANCIAL
STATEMENTS (Unaudited) CONTD
reduced by credits, which are determined based on the average
daily cash balance the Trust maintains with SSBT. All credit
balances, if any, used to reduce the Trusts custodian fees
are reported as a reduction of expenses in the Statement 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 the Trusts organizational documents, its
officers and Trustees may be indemnified against certain
liabilities and expenses arising out of the performance of their
duties to the Trust. Under Massachusetts law, if certain
conditions prevail, shareholders of a Massachusetts business
trust (such as the Trust) could be deemed to have personal
liability for the obligations of the Trust. However, the
Trusts Declaration of Trust contains an express disclaimer
of liability on the part of Trust shareholders and the By-laws
provide that the Trust shall assume the defense on behalf of any
Trust shareholders. Moreover, the By-laws also provide for
indemnification out of Trust property of any shareholder held
personally liable solely by reason of being or having been a
shareholder for all loss or expense arising from such liability.
Additionally, in the normal course of business, the Trust enters
into agreements with service providers that may contain
indemnification clauses. The Trusts maximum exposure under
these arrangements is unknown as this would involve future
claims that may be made against the Trust that have not yet
occurred.
H Floating
Rate Notes Issued in Conjunction with Securities
Held The Trust may invest in inverse floating
rate securities, also referred to as residual interest bonds,
whereby the Trust may sell a fixed rate bond to a broker for
cash. At the same time, the Trust buys a residual interest in
the assets and cash flows of a Special-Purpose Vehicle (the
SPV), (which is generally organized as a trust), set up by the
broker, often referred to as an inverse floating rate obligation
(Inverse Floater). The broker deposits a fixed rate bond into
the SPV with the same CUSIP number as the fixed rate bond sold
to the broker by the Trust, and which may have been, but is not
required to be, the fixed rate bond purchased from the Trust
(the Fixed Rate Bond). The SPV also issues floating rate notes
(Floating Rate Notes) which are sold to third-parties. The
Inverse Floater held by the Trust gives the Trust the right
(1) to cause the holders of the Floating Rate Notes to
tender their notes at par, and (2) to have the broker
transfer the Fixed Rate Bond held by the SPV to the Trust,
thereby terminating the SPV. Should the Trust exercise such
right, it would pay the broker the par amount due on the
Floating Rate Notes and exchange the Inverse Floater for the
underlying Fixed Rate Bond. Pursuant to generally accepted
accounting principles for transfers and servicing of financial
assets and extinguishment of liabilities, the Trust accounts for
the transaction described above as a secured borrowing by
including the Fixed Rate Bond in its Portfolio of Investments
and the Floating Rate Notes as a liability under the caption
Payable for floating rate notes issued in its
Statement of Assets and Liabilities. The Floating Rate Notes
have interest rates that generally reset weekly and their
holders have the option to tender their notes to the broker for
redemption at par at each reset date. Interest expense related
to the Trusts liability with respect to Floating Rate
Notes is recorded as incurred. The SPV may be terminated by the
Trust, as noted above, or by the broker upon the occurrence of
certain termination events as defined in the trust agreement,
such as a downgrade in the credit quality of the underlying
bond, bankruptcy of or payment failure by the issuer of the
underlying bond, the inability to remarket Floating Rate Notes
that have been tendered due to insufficient buyers in the
market, or the failure by the SPV to obtain renewal of the
liquidity agreement under which liquidity support is provided
for the Floating Rate Notes up to one year. Structuring fees
paid to the liquidity provider upon the creation of an SPV have
been recorded as debt issuance costs and are being amortized as
interest expense to the expected maturity of the related trust.
At May 31, 2010, the amount of the Trusts Floating
Rate Notes outstanding and the related collateral were
$107,905,000 and $145,274,175, respectively. The range of
interest rates on Floating Rate Notes outstanding at
May 31, 2010 was 0.29% to 0.39%. For the six months ended
May 31, 2010, the Trusts average Floating Rate Notes
outstanding and the average interest rate (annualized) including
fees and amortization of deferred debt issuance costs were
$94,110,385 and 0.78%, respectively.
The Trust may enter into shortfall and forbearance agreements
with the broker by which the Trust agrees to reimburse the
broker, in certain circumstances, for the difference between the
liquidation value of the Fixed Rate Bond held by the SPV and the
liquidation value of the Floating Rate Notes, as well as any
shortfalls in interest cash flows. The Trust had no shortfalls
as of May 31, 2010.
15
Eaton Vance
Municipal Income
Trust as
of May 31, 2010
NOTES TO FINANCIAL
STATEMENTS (Unaudited) CONTD
The Trust may also purchase Inverse Floaters from brokers in a
secondary market transaction without first owning the underlying
fixed rate bond. Such transactions are not required to be
treated as secured borrowings. Shortfall agreements, if any,
related to Inverse Floaters purchased in a secondary market
transaction are disclosed in the Portfolio of Investments. The
Trusts investment policies and restrictions expressly
permit investments in Inverse Floaters. Inverse floating rate
securities typically offer the potential for yields exceeding
the yields available on fixed rate bonds with comparable credit
quality and maturity. These securities tend to underperform the
market for fixed rate bonds in a rising long-term interest rate
environment, but tend to outperform the market for fixed rate
bonds when long-term interest rates decline. The value and
income of inverse floating rate securities are generally more
volatile than that of a fixed rate bond. The Trusts
investment policies do not allow the Trust to borrow money
except as permitted by the 1940 Act. Management believes that
the Trusts restrictions on borrowing money and issuing
senior securities (other than as specifically permitted) do not
apply to Floating Rate Notes issued by the SPV and included as a
liability in the Trusts Statement of Assets and
Liabilities. As secured indebtedness issued by an SPV, Floating
Rate Notes are distinct from the borrowings and senior
securities to which the Trusts restrictions apply. Inverse
Floaters held by the Trust are securities exempt from
registration under Rule 144A of the Securities Act of 1933.
I Financial
Futures Contracts The Trust may enter into
financial futures contracts. The Trusts investment in
financial futures contracts is designed for hedging against
changes in interest rates or as a substitute for the purchase of
securities. Upon entering into a financial futures contract, the
Trust is required to deposit with the broker, either in cash or
securities, an amount equal to a certain percentage of the
purchase price (initial margin). Subsequent payments, known as
variation margin, are made or received by the Trust each
business day, depending on the daily fluctuations in the value
of the underlying security, and are recorded as unrealized gains
or losses by the Trust. Gains (losses) are realized upon the
expiration or closing of the financial futures contracts. Should
market conditions change unexpectedly, the Trust may not achieve
the anticipated benefits of the financial futures contracts and
may realize a loss. Futures contracts have minimal counterparty
risk as they are exchange traded and the clearinghouse for the
exchange is substituted as the counterparty, guaranteeing
counterparty performance.
J Interest
Rate Swaps The Trust may enter into interest
rate swap agreements to enhance return, to hedge against
fluctuations in securities prices or interest rates, or as
substitution for the purchase or sale of securities. Pursuant to
these agreements, the Trust makes periodic payments at a fixed
interest rate and, in exchange, receives payments based on the
interest rate of a benchmark industry index. During the term of
the outstanding swap agreement, changes in the underlying value
of the swap are recorded as unrealized gains or losses. The
value of the swap is determined by changes in the relationship
between two rates of interest. The Trust is exposed to credit
loss in the event of non-performance by the swap counterparty.
Risk may also arise from movements in interest rates.
K When-Issued
Securities and Delayed Delivery Transactions
The Trust 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 Trust maintains
security positions for these commitments such that sufficient
liquid assets will be available to make payments upon
settlement. Securities purchased on a delayed delivery or
when-issued basis are
marked-to-market
daily and begin earning interest on settlement date. Losses may
arise due to changes in the market value of the underlying
securities or if the counterparty does not perform under the
contract.
L Statement
of Cash Flows The cash amount shown in the
Statement of Cash Flows of the Trust is the amount included in
the Trusts Statement of Assets and Liabilities and
represents the cash on hand at its custodian and does not
include any short-term investments.
M Interim
Financial Statements The interim financial
statements relating to May 31, 2010 and for the six months
then ended have not been audited by an independent registered
public accounting firm, but in the opinion of the Trusts
management, reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of
the financial statements.
2 Auction
Preferred Shares
The Trust issued 2,620 Series A and Series B Auction
Preferred Shares (APS) on March 1, 1999 in a public
offering. The underwriting discount and other offering costs
incurred in connection with the offering were recorded as a
reduction of the paid-in capital of the common shares. The Trust
issued 806 Series C APS on May 28, 2009 in connection
with the acquisition of Eaton Vance National Municipal
Income Trust (see Note 11). 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
16
Eaton Vance
Municipal Income
Trust as
of May 31, 2010
NOTES TO FINANCIAL
STATEMENTS (Unaudited) CONTD
as the APS auctions are successful. The maximum applicable rate
on the APS is 110% (150% for taxable distributions) of the
greater of the 1) AA Financial Composite
Commercial Paper Rate or 2) Taxable Equivalent of the
Short-Term Municipal Obligation Rate on the date of the auction.
Series of APS are identical in all respects except for the reset
dates of the dividend rates.
The number of APS issued and outstanding as of May 31, 2010
is as follows:
|
|
|
|
|
|
|
|
|
APS Issued and
Outstanding
|
|
|
|
|
Series A
|
|
|
2,000
|
|
|
|
Series B
|
|
|
2,000
|
|
|
|
Series C
|
|
|
806
|
|
|
|
The APS are redeemable at the option of the Trust at a
redemption price equal to $25,000 per share, plus accumulated
and unpaid dividends, on any dividend payment date. The APS are
also subject to mandatory redemption at a redemption price equal
to $25,000 per share, plus accumulated and unpaid dividends, if
the Trust is in default for an extended period on its asset
maintenance requirements with respect to the APS. If the
dividends on the APS remain unpaid in an amount equal to two
full years dividends, the holders of the APS as a class
have the right to elect a majority of the Board of Trustees. In
general, the holders of the APS and the common shares have equal
voting rights of one vote per share, except that the holders of
the APS, as a separate class, have the right to elect at least
two members of the Board of Trustees. The APS have a liquidation
preference of $25,000 per share, plus accumulated and unpaid
dividends. The Trust is required to maintain certain asset
coverage with respect to the APS as defined in the Trusts
By-Laws and the 1940 Act. The Trust pays an annual fee up to
0.15% of the liquidation value of the APS to broker-dealers as a
service fee if the auctions are unsuccessful; otherwise, the
annual fee is 0.25%.
3 Distributions
to Shareholders
The Trust intends to make monthly distributions of net
investment income to common shareholders, after payment of any
dividends on any outstanding APS. In addition, at least
annually, the Trust intends to distribute all or substantially
all of its net realized capital gains (reduced by available
capital loss carryforwards from prior years, if any).
Distributions to common shareholders are recorded on the
ex-dividend date. Distributions to preferred shareholders are
recorded daily and are payable at the end of each dividend
period. The dividend rates for the APS at May 31, 2010, and
the amount of dividends paid (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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APS
|
|
|
Dividends
|
|
|
Average APS
|
|
|
Dividend
|
|
|
|
|
|
Dividend Rates
at
|
|
|
Paid to APS
|
|
|
Dividend
|
|
|
Rate
|
|
|
|
|
|
May 31,
2010
|
|
|
Shareholders
|
|
|
Rates
|
|
|
Ranges
(%)
|
|
|
|
|
Series A
|
|
|
0.44
|
%
|
|
$
|
98,120
|
|
|
|
0.39
|
%
|
|
|
0.260.58
|
|
|
|
Series B
|
|
|
0.43
|
|
|
|
96,622
|
|
|
|
0.39
|
|
|
|
0.240.56
|
|
|
|
Series C*
|
|
|
0.43
|
|
|
|
39,123
|
|
|
|
0.39
|
|
|
|
0.240.56
|
|
|
|
|
|
|
*
|
|
The Trust issued Series C APS on May 28, 2009 in
connection with the acquisition of Eaton Vance National
Municipal Income Trust (see Note 11). |
Beginning February 14, 2008 and consistent with the
patterns in the broader market for auction-rate securities, the
Trusts APS auctions were unsuccessful in clearing due to
an imbalance of sell orders over bids to buy the APS. As a
result, the dividend rates of the APS were reset to the maximum
applicable rates. The table above reflects such maximum dividend
rates for each series as of May 31, 2010.
The Trust distinguishes 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 the Trust. The fee is computed at an annual rate of 0.70% of
the Trusts 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 the Trust, and the amount of any
outstanding APS issued by the Trust. Pursuant to a fee reduction
agreement with EVM, average weekly gross assets are calculated
by adding to net assets the liquidation value of the
Trusts APS then outstanding and the amount payable by the
Trust to floating rate note holders, such adjustment being
limited to the value of the APS outstanding prior to any APS
redemptions by the Trust. Pursuant to a fee reduction agreement
between the Trust and EVM, commencing May 1, 2010, the
annual adviser fee rate will be reduced by 0.015% and an
additional 0.015% every May 1 thereafter for the next
nineteen years. The fee reduction cannot be terminated without
the consent of the Trustees and shareholders. The
administration fee is earned by EVM for administering the
business affairs of the Trust and is computed at an annual rate
of 0.20% of the Trusts average weekly gross assets.
17
Eaton Vance
Municipal Income
Trust as
of May 31, 2010
NOTES TO FINANCIAL
STATEMENTS (Unaudited) CONTD
For the six months ended May 31, 2010, the investment
adviser fee and administration fee were $1,465,474 and
$420,260, respectively.
Except for Trustees of the Trust who are not members of
EVMs organization, officers and Trustees receive
remuneration for their services to the Trust out of the
investment adviser fee. Trustees of the Trust who are not
affiliated with EVM 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 May 31, 2010, no significant amounts have been
deferred. Certain officers and Trustees of the Trust are
officers of EVM.
5 Purchases
and Sales of Investments
Purchases and sales of investments, other than short-term
obligations, aggregated $72,993,945 and $33,738,454,
respectively, for the six months ended May 31, 2010.
6 Common
Shares of Beneficial Interest
Common shares issued pursuant to the Trusts dividend
reinvestment plan for the six months ended May 31, 2010 and
the year ended November 30, 2009 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
May 31,
2010
|
|
|
Year
Ended
|
|
|
|
|
|
(Unaudited)
|
|
|
November 30,
2009
|
|
|
|
|
Issued pursuant to the Trusts dividend reinvestment plan
|
|
|
74,128
|
|
|
|
171,495
|
|
|
|
Issued in connection with the acquisition of Eaton Vance
National Municipal Income Trust (see Note 11)
|
|
|
|
|
|
|
5,027,606
|
|
|
|
|
|
Net increase
|
|
|
74,128
|
|
|
|
5,199,101
|
|
|
|
|
|
7 Federal
Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of
investments of the Trust at May 31, 2010, as determined on
a federal income tax basis, were as follows:
|
|
|
|
|
|
|
Aggregate cost
|
|
$
|
385,260,568
|
|
|
|
|
|
Gross unrealized appreciation
|
|
$
|
23,686,211
|
|
|
|
Gross unrealized depreciation
|
|
|
(28,178,201
|
)
|
|
|
|
|
Net unrealized depreciation
|
|
$
|
(4,491,990
|
)
|
|
|
|
|
8 Overdraft Advances
Pursuant to the custodian agreement, SSBT may, in its
discretion, advance funds to the Trust to make properly
authorized payments. When such payments result in an overdraft,
the Trust is obligated to repay SSBT at the current rate of
interest charged by SSBT for secured loans (currently, a rate
above the Federal Funds rate). This obligation is payable on
demand to SSBT. SSBT has a lien on the Trusts assets to
the extent of any overdraft. At May 31, 2010, the Trust had
a payment due to SSBT pursuant to the foregoing arrangement of
$1,004,551.
9 Financial Instruments
The Trust may trade in financial instruments with off-balance
sheet risk in the normal course of its 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 the Trust has in particular
classes of financial instruments and do not necessarily
represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is
meaningful only when all related and offsetting transactions are
considered.
A summary of obligations under these financial instruments at
May 31, 2010 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Futures
Contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
Expiration
|
|
|
|
|
|
Aggregate
|
|
|
|
|
|
Unrealized
|
|
|
|
Date
|
|
Contracts
|
|
Position
|
|
Cost
|
|
|
Value
|
|
|
Appreciation
|
|
|
|
|
9/10
|
|
375 U.S.
30-Year
Treasury Bond
|
|
Short
|
|
$
|
(46,886,754
|
)
|
|
$
|
(45,996,094
|
)
|
|
$
|
890,660
|
|
|
|
At May 31, 2010, the Trust had sufficient cash
and/or
securities to cover commitments under these contracts.
The Trust is subject to interest rate risk in the normal course
of pursuing its investment objectives. Because the Trust holds
fixed-rate bonds, the value of these bonds may decrease if
interest rates rise. The Trust may purchase and sell U.S.
Treasury futures contracts to hedge against changes in interest
rates.
The fair value of derivative instruments (not considered to be
hedging instruments for accounting disclosure purposes) and
whose primary underlying risk exposure is interest rate risk at
May 31, 2010 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair
Value
|
|
|
|
Derivative
|
|
Asset
Derivative(1)
|
|
|
Liability
Derivative
|
|
|
|
|
Futures Contracts
|
|
$
|
890,660
|
|
|
$
|
|
|
|
|
|
|
|
(1)
|
|
Amount represents cumulative unrealized appreciation on futures
contracts in the Futures Contracts table above. Only the current
days variation margin on open futures contracts is
reported within the Statement of Assets and Liabilities as
Receivable or Payable for variation margin, as applicable. |
18
Eaton Vance
Municipal Income
Trust as
of May 31, 2010
NOTES TO FINANCIAL
STATEMENTS (Unaudited) CONTD
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
May 31, 2010 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
|
|
|
|
|
|
|
|
|
Unrealized
|
|
|
|
|
|
Realized Gain
|
|
|
Appreciation
|
|
|
|
|
|
(Loss) on
|
|
|
(Depreciation)
on
|
|
|
|
|
|
Derivatives
|
|
|
Derivatives
|
|
|
|
|
|
Recognized in
|
|
|
Recognized in
|
|
|
|
Derivative
|
|
Income(1)
|
|
|
Income(2)
|
|
|
|
|
Futures Contracts
|
|
$
|
(4,025,865
|
)
|
|
$
|
890,660
|
|
|
|
|
|
|
(1)
|
|
Statement of Operations location: Net realized gain
(loss) Financial futures contracts. |
|
(2)
|
|
Statement of Operations location: Change in unrealized
appreciation (depreciation) Financial futures
contracts. |
The average notional amount of futures contracts outstanding
during the six months ended May 31, 2010, which is
indicative of the volume of this derivative type, was
approximately $10,714,000.
10 Fair
Value Measurements
Under generally accepted accounting principles for fair value
measurements, a
three-tier
hierarchy to prioritize the assumptions, referred to as inputs,
is used in valuation techniques to measure fair value. The
three-tier
hierarchy of inputs is summarized in the three broad levels
listed below.
|
|
|
|
|
Level 1 quoted prices in active markets for
identical investments
|
|
|
|
Level 2 other significant observable inputs
(including quoted prices for similar investments, interest
rates, prepayment speeds, credit risk, etc.)
|
|
|
|
Level 3 significant unobservable inputs
(including a funds own assumptions in determining the fair
value of investments)
|
The inputs or methodology used for valuing securities are not
necessarily an indication of the risk associated with investing
in those securities.
At May 31, 2010, the inputs used in valuing the
Trusts investments, which are carried at value, were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quoted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prices in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
|
|
|
Significant
|
|
|
|
|
|
|
|
|
|
|
|
Markets for
|
|
|
Other
|
|
|
Significant
|
|
|
|
|
|
|
|
|
Identical
|
|
|
Observable
|
|
|
Unobservable
|
|
|
|
|
|
|
|
|
Assets
|
|
|
Inputs
|
|
|
Inputs
|
|
|
|
|
|
|
|
|
|
Asset
Description
|
|
(Level
1)
|
|
|
(Level
2)
|
|
|
(Level
3)
|
|
|
Total
|
|
|
|
|
Tax-Exempt Investments
|
|
$
|
|
|
|
$
|
498,783,578
|
|
|
$
|
|
|
|
$
|
498,783,578
|
|
|
|
|
|
Total Investments
|
|
$
|
|
|
|
$
|
498,783,578
|
|
|
$
|
|
|
|
$
|
498,783,578
|
|
|
|
|
|
Futures Contracts
|
|
$
|
890,660
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
890,660
|
|
|
|
|
|
Total
|
|
$
|
890,660
|
|
|
$
|
498,783,578
|
|
|
$
|
|
|
|
$
|
499,674,238
|
|
|
|
|
|
The Trust held no investments or other financial instruments as
of November 30, 2009 whose fair value was determined using
Level 3 inputs.
11 Reorganization
Prior to the opening of business on May 28, 2009, the Trust
acquired the net assets of Eaton Vance National Municipal Income
Trust (National Trust) pursuant to an agreement and plan of
reorganization approved by the shareholders of the Trust and
National Trust. The acquisition was accomplished by a tax-free
exchange of 5,027,606 common shares of the Trust for the
4,260,513 common shares of National Trust outstanding on
May 27, 2009, and 806 newly-issued Series C APS
of the Trust with an aggregate liquidation value of $20,150,000
in exchange for 806 APS of National Trust outstanding on
May 27, 2009 and having the same aggregate liquidation
value. The aggregate net assets attributable to common shares of
the Trust immediately before the acquisition were $167,134,870.
The net assets attributable to common shares of National Trust
at that date of $48,359,695, including $4,633,627 of accumulated
net realized losses and $8,944,514 of unrealized depreciation,
were combined with those of the Trust, resulting in combined net
assets attributable to common shares of $215,494,565.
19
Eaton Vance
Municipal Income Trust
ANNUAL MEETING OF
SHAREHOLDERS (Unaudited)
The Trust held its Annual Meeting of Shareholders on
March 26, 2010. The following action was taken by the
shareholders:
Item 1: The election of Thomas E. Faust Jr.,
Allen R. Freedman and Ralph F. Verni as Class II Trustees
of the Trust for a
three-year
term expiring in 2013. Mr. Verni was elected solely by APS
shareholders.
|
|
|
|
|
|
|
|
|
|
|
Nominee for
Trustee
|
|
Number of
Shares
|
|
|
|
Elected by APS
Shareholders
|
|
For
|
|
|
Withheld
|
|
|
|
|
|
Ralph F. Verni (Class II)
|
|
|
2,511
|
|
|
|
154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nominees for
Trustee
|
|
Number of
Shares
|
|
|
|
Elected by All
Shareholders
|
|
For
|
|
|
Withheld
|
|
|
|
|
|
Thomas E. Faust Jr. (Class II)
|
|
|
20,063,549
|
|
|
|
541,272
|
|
|
|
Allen R. Freedman (Class II)
|
|
|
20,069,775
|
|
|
|
535,046
|
|
|
|
20
Eaton Vance
Municipal Income Trust
BOARD OF TRUSTEES ANNUAL
APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT
Overview
of the Contract Review Process
The Investment Company Act of 1940, as amended (the 1940
Act), provides, in substance, that each investment
advisory agreement between a fund and its investment adviser
will continue in effect from year to year only if its
continuance is approved at least annually by the funds
board of trustees, including by a vote of a majority of the
trustees who are not interested persons of the fund
(Independent Trustees), cast in person at a meeting
called for the purpose of considering such approval.
At a meeting of the Boards of Trustees (each a
Board) of the Eaton Vance group of mutual funds (the
Eaton Vance Funds) held on April 26, 2010, the
Board, including a majority of the Independent Trustees, voted
to approve continuation of existing advisory and
sub-advisory
agreements for the Eaton Vance Funds for an additional
one-year
period. In voting its approval, the Board relied upon the
affirmative recommendation of the Contract Review Committee of
the Board, which is a committee comprised exclusively of
Independent Trustees. Prior to making its recommendation, the
Contract Review Committee reviewed information furnished for a
series of meetings of the Contract Review Committee held between
February and April 2010. Such information included, among
other things, the following:
Information
about Fees, Performance and Expenses
|
|
|
|
|
An independent report comparing the advisory and related fees
paid by each fund with fees paid by comparable funds;
|
|
|
An independent report comparing each funds total expense
ratio and its components to comparable funds;
|
|
|
An independent report comparing the investment performance of
each fund (including yield where relevant) to the investment
performance of comparable funds over various time periods;
|
|
|
Data regarding investment performance in comparison to relevant
peer groups of similarly managed funds and appropriate indices;
|
|
|
For each fund, comparative information concerning the fees
charged and the services provided by each adviser in managing
other mutual funds and institutional accounts using investment
strategies and techniques similar to those used in managing such
fund;
|
|
|
Profitability analyses for each adviser with respect to each
fund;
|
Information
about Portfolio Management
|
|
|
|
|
Descriptions of the investment management services provided to
each fund, including the investment strategies and processes
employed, and any changes in portfolio management processes and
personnel;
|
|
|
Information concerning the allocation of brokerage and the
benefits received by each adviser as a result of brokerage
allocation, including information concerning the acquisition of
research through soft dollar benefits received in
connection with the funds brokerage, and the
implementation of a soft dollar reimbursement program
established with respect to the funds;
|
|
|
Data relating to portfolio turnover rates of each fund;
|
|
|
The procedures and processes used to determine the fair value of
fund assets and actions taken to monitor and test the
effectiveness of such procedures and processes;
|
Information
about each Adviser
|
|
|
|
|
Reports detailing the financial results and condition of each
adviser;
|
|
|
Descriptions of the qualifications, education and experience of
the individual investment professionals whose responsibilities
include portfolio management and investment research for the
funds, and information relating to their compensation and
responsibilities with respect to managing other mutual funds and
investment accounts;
|
|
|
Copies of the Codes of Ethics of each adviser and its
affiliates, together with information relating to compliance
with and the administration of such codes;
|
|
|
Copies of or descriptions of each advisers policies and
procedures relating to proxy voting, the handling of corporate
actions and class actions;
|
|
|
Information concerning the resources devoted to compliance
efforts undertaken by each adviser and its affiliates on behalf
of the funds (including descriptions of various compliance
programs) and their record of compliance with investment
policies and restrictions, including policies with respect to
market-timing, late trading and selective portfolio disclosure,
and with policies on personal securities transactions;
|
|
|
Descriptions of the business continuity and disaster recovery
plans of each adviser and its affiliates;
|
|
|
A description of Eaton Vance Managements procedures for
overseeing third party advisers and
sub-advisers;
|
Other
Relevant Information
|
|
|
|
|
Information concerning the nature, cost and character of the
administrative and other non-investment management services
provided by Eaton Vance Management and its affiliates;
|
|
|
Information concerning management of the relationship with the
custodian, subcustodians and fund accountants by each adviser or
the funds administrator; and
|
|
|
The terms of each advisory agreement.
|
21
Eaton Vance
Municipal Income Trust
BOARD OF TRUSTEES ANNUAL
APPROVAL OF THE INVESTMENT ADVISORY
AGREEMENT CONTD
In addition to the information identified above, the Contract
Review Committee considered information provided from time to
time by each adviser throughout the year at meetings of the
Board and its committees. Over the course of the twelve-month
period ended April 30, 2010, with respect to one or more
Funds, the Board met ten times and the Contract Review
Committee, the Audit Committee, the Governance Committee, the
Portfolio Management Committee and the Compliance Reports and
Regulatory Matters Committee, each of which is a Committee
comprised solely of Independent Trustees, met nine, thirteen,
three, eight and fifteen times, respectively. At such meetings,
the Trustees received, among other things, presentations by the
portfolio managers and other investment professionals of each
adviser relating to the investment performance of each fund and
the investment strategies used in pursuing the funds
investment objective including, where relevant, the use of
derivative instruments, as well as trading policies and
procedures and risk management techniques.
For funds that invest through one or more underlying portfolios,
the Board considered similar information about the portfolio(s)
when considering the approval of advisory agreements. In
addition, in cases where the funds investment adviser has
engaged a
sub-adviser,
the Board considered similar information about the
sub-adviser
when considering the approval of any
sub-advisory
agreement.
The Contract Review Committee was assisted throughout the
contract review process by Goodwin Procter LLP, legal counsel
for the Independent Trustees. The members of the Contract Review
Committee relied upon the advice of such counsel and their own
business judgment in determining the material factors to be
considered in evaluating each advisory and
sub-advisory
agreement and the weight to be given to each such factor. The
conclusions reached with respect to each advisory and
sub-advisory
agreement were based on a comprehensive evaluation of all the
information provided and not any single factor. Moreover, each
member of the Contract Review Committee may have placed varying
emphasis on particular factors in reaching conclusions with
respect to each advisory and
sub-advisory
agreement.
Results
of the Process
Based on its consideration of the foregoing, and such other
information as it deemed relevant, including the factors and
conclusions described below, the Contract Review Committee
concluded that the continuance of the investment advisory
agreement of Eaton Vance Municipal Income Trust (the
Fund) with Eaton Vance Management (the
Adviser), including its fee structure, is in the
interests of shareholders and, therefore, the Contract Review
Committee recommended to the Board approval of the agreement.
The Board accepted the recommendation of the Contract Review
Committee as well as the factors considered and conclusions
reached by the Contract Review Committee with respect to the
agreement. Accordingly, the Board, including a majority of the
Independent Trustees, voted to approve continuation of the
investment advisory agreement for the Fund.
Nature,
Extent and Quality of Services
In considering whether to approve the investment advisory
agreement of the Fund, the Board evaluated the nature, extent
and quality of services provided to the Fund by the Adviser.
The Board considered the Advisers management capabilities
and investment process with respect to the types of investments
held by the Fund, including the education, experience and number
of its investment professionals and other personnel who provide
portfolio management, investment research, and similar services
to the Fund. In particular, the Board evaluated, where relevant,
the abilities and experience of such investment personnel in
analyzing factors such as credit risk, tax efficiency, and
special considerations relevant to investing in municipal bonds.
The Board considered the Advisers large municipal bond
team, which includes portfolio managers and credit specialists
who provide services to the Fund. The Board also took into
account the resources dedicated to portfolio management and
other services, including the compensation methods of the
Adviser to recruit and retain investment personnel, and the time
and attention devoted to the Fund by senior management.
The Board also reviewed the compliance programs of the Adviser
and relevant affiliates thereof. Among other matters, the Board
considered compliance and reporting matters relating to personal
trading by investment personnel, selective disclosure of
portfolio holdings, late trading, frequent trading, portfolio
valuation, business continuity and the allocation of investment
opportunities. The Board also evaluated the responses of the
Adviser and its affiliates to requests in recent years from
regulatory authorities such as the Securities and Exchange
Commission and the Financial Industry Regulatory Authority.
The Board considered shareholder and other administrative
services provided or managed by Eaton Vance Management and its
affiliates, including transfer agency and accounting services.
The Board evaluated the benefits to shareholders of investing in
a fund that is a part of a large family of funds.
After consideration of the foregoing factors, among others, the
Board concluded that the nature, extent and quality of services
provided by the Adviser, taken as a whole, are appropriate and
consistent with the terms of the investment advisory agreement.
22
Eaton Vance
Municipal Income Trust
BOARD OF TRUSTEES ANNUAL
APPROVAL OF THE INVESTMENT ADVISORY
AGREEMENT CONTD
Fund Performance
The Board compared the Funds investment performance to a
relevant universe of similarly managed funds identified by an
independent data provider and appropriate benchmark indices. The
Board reviewed comparative performance data for the
one-,
three-,
five- and
ten-year
periods ended September 30, 2009 for the Fund. The Board
considered the impact of extraordinary market conditions during
2008 and 2009 on the Funds performance relative to its
peer universe in light of, among other things, the
Advisers long-standing strategy of generating current
income through investments in higher quality (including insured)
municipal bonds with longer maturities. The Board noted that the
Adviser had restructured management of the municipal bond team
and had implemented additional processes and tools designed to
manage credit and interest rate risk. The Board concluded that
appropriate actions are being taken by the Adviser to improve
Fund performance and that additional time is required to
evaluate the effectiveness of such actions.
Management
Fees and Expenses
The Board reviewed contractual investment advisory fee rates,
including any administrative fee rates, payable by the Fund
(referred to collectively as management fees). The
Board considered the financial resources committed by the
Adviser in structuring the Fund at the time of its initial
public offering. As part of its review, the Board considered the
management fees and the Funds total expense ratio for the
year ended September 30, 2009, as compared to a group of
similarly managed funds selected by an independent data
provider. The Board considered that, in response to inquiries by
the Contract Review Committee, the Adviser had agreed to
implement a series of permanent reductions in management fees
and that the first such reduction would be effective as of
May 1, 2010. The Board also considered factors that had an
impact on Fund expense ratios, as identified by management in
response to inquiries from the Contract Review Committee, as
well as actions being taken to reduce expenses at the Eaton
Vance fund complex level.
After reviewing the foregoing information, and in light of the
nature, extent and quality of the services provided by the
Adviser, the Board concluded that the management fees charged
for advisory and related services are reasonable.
Profitability
The Board reviewed the level of profits realized by the Adviser
and relevant affiliates thereof in providing investment advisory
and administrative services to the Fund and to all Eaton Vance
Funds as a group. The Board considered the level of profits
realized with and without regard to revenue sharing or other
payments by the Adviser and its affiliates to third parties in
respect of distribution services. The Board also considered
other direct or indirect benefits received by the Adviser and
its affiliates in connection with its relationship with the
Fund, including the benefits of research services that may be
available to the Adviser as a result of securities transactions
effected for the Fund and other investment advisory clients.
The Board concluded that, in light of the foregoing factors and
the nature, extent and quality of the services rendered, the
profits realized by the Adviser and its affiliates are
reasonable.
Economies
of Scale
In reviewing management fees and profitability, the Board also
considered the extent to which the Adviser and its affiliates,
on the one hand, and the Fund, on the other hand, can expect to
realize benefits from economies of scale as the assets of the
Fund increase. The Board acknowledged the difficulty in
accurately measuring the benefits resulting from the economies
of scale with respect to the management of any specific fund or
group of funds. The Board also considered the fact that the Fund
is not continuously offered and concluded that, in light of the
level of the advisers profits with respect to the Fund,
the implementation of breakpoints in the advisory fee schedule
is not appropriate at this time. Based upon the foregoing, the
Board concluded that the benefits from economies of scale are
currently being shared equitably by the Adviser and its
affiliates and the Fund.
23
Eaton Vance
Municipal Income Trust
OFFICERS AND
TRUSTEES
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Officers Thomas M. Metzold President
William H. Ahern, Jr. Vice President
Cynthia J. Clemson Vice President
Barbara E. Campbell Treasurer
Maureen A. Gemma Secretary and Chief Legal Officer
Paul M. ONeil Chief Compliance Officer
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Trustees Ralph F. Verni Chairman
Benjamin C. Esty
Thomas E. Faust Jr.
Allen R. Freedman
William H. Park
Ronald A. Pearlman
Helen Frame Peters
Heidi L. Steiger
Lynn A. Stout
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Number of
Employees
The Trust is organized as a Massachusetts business trust and is
registered under the Investment Company Act of 1940, as amended,
as a closed-end, non-diversified, management investment company
and has no employees.
Number of
Shareholders
As of May 31, 2010, our records indicate that there are 353
registered shareholders and approximately 9,033 shareholders
owning the Trust shares in street name, such as through brokers,
banks, and financial intermediaries.
If you are a street name shareholder and wish to receive Trust
reports directly, which contain important information about the
Trust, please write or call:
Eaton Vance Distributors, Inc.
Two International Place
Boston, MA 02110
1-800-262-1122
New York
Stock Exchange symbol
The New York Stock Exchange symbol is EVN.
24
Investment
Adviser and Administrator of Eaton Vance Municipal Income
Trust
Eaton Vance
Management
Two International
Place
Boston, MA 02110
State Street
Bank and Trust Company
200 Clarendon
Street
Boston, MA 02116
American Stock
Transfer & Trust Company
59 Maiden Lane
Plaza Level
New York, NY 10038
Eaton
Vance Municipal Income Trust
Two
International Place
Boston, MA
02110
Item 2. Code of Ethics
The registrant has adopted a code of ethics applicable to its Principal Executive Officer,
Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide
a copy of such code of ethics to any person upon request, without charge, by calling
1-800-262-1122.
Item 3. Audit Committee Financial Expert
The registrants Board has designated William H. Park, an independent trustee, as its audit
committee financial expert. Mr. Park is a certified public accountant who is the Vice Chairman of
Commercial Industrial Finance Corp. (specialty finance company). Previously, he served as President
and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm), as
Executive Vice President and Chief Financial Officer of United Asset Management Corporation (an
institutional
investment management firm) and as a Senior Manager at Price Waterhouse (now
PricewaterhouseCoopers) (an independent registered public accounting firm).
Item 4. Principal Accountant Fees and Services
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
The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the Fund
Policy), pursuant to which the Trustees have delegated proxy voting responsibility to the Funds
investment adviser and adopted the investment advisers proxy voting policies and procedures (the
Policies) which are described below. The Trustees will review the Funds proxy voting records
from time to time and will annually consider approving the Policies for the upcoming year. In the
event that a conflict of interest arises between the Funds shareholders and the investment
adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment
adviser will generally refrain from voting the proxies related to the companies giving rise to such
conflict until it consults with the Boards Special Committee except as contemplated under the Fund
Policy. The Boards Special Committee will instruct the investment adviser on the appropriate
course of action.
The Policies are designed to promote accountability of a companys management to its shareholders
and to align the interests of management with those shareholders. An independent proxy
voting service (Agent), currently Institutional Shareholder Services, Inc., has been retained to
assist in the voting of proxies through the provision of vote analysis, implementation and
recordkeeping and disclosure services. The investment adviser will generally vote proxies through
the Agent. The Agent is required to vote all proxies and/or refer then back to the investment
adviser pursuant to the Policies. It is generally the policy of the investment adviser to vote in
accordance with the recommendation of the Agent. The Agent shall refer to the investment adviser
proxies relating to mergers and restructurings, and the disposition of assets, termination,
liquidation and mergers contained in mutual fund proxies. The investment adviser will normally
vote against anti-takeover measures and other proposals designed to limit the ability of
shareholders to act on possible transactions, except in the case of closed-end management
investment companies. The investment adviser generally supports management on social and
environmental proposals. The investment adviser may abstain from voting from time to time where it
determines that the costs associated with voting a proxy outweighs the benefits derived from
exercising the right to vote or the economic effect on shareholders interests or the value of the
portfolio holding is indeterminable or insignificant.
In addition, the investment adviser will monitor situations that may result in a conflict of
interest between the Funds shareholders and the investment adviser, the administrator, or any of
their affiliates or any affiliate of the Fund by maintaining a list of significant existing and
prospective corporate clients. The investment advisers personnel responsible for reviewing and
voting proxies on behalf of the Fund will report any proxy received or expected to be received from
a company included on that
list to the personal of the investment adviser identified in the Policies. If such personnel
expects to instruct the Agent to vote such proxies in a manner inconsistent with the guidelines of
the Policies or the recommendation of the Agent, the personnel will consult with members of senior
management of the investment adviser to determine if a material conflict of interests exists. If
it is determined that a material conflict does exist, the investment adviser will seek instruction
on how to vote from the Special Committee.
Information on how the Fund voted proxies relating to portfolio securities during the most recent
12 month period ended June 30 is available (1) without charge, upon request, by calling
1-800-262-1122, and (2) on the Securities and Exchange Commissions website at http://www.sec.gov.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not required in this filing.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
No such purchases this period.
Item 10. Submission of Matters to a Vote of Security Holders
No Material Changes.
Item 11. Controls and Procedures
(a) It is the conclusion of the registrants principal executive officer and principal
financial officer that the effectiveness of the registrants current disclosure controls and
procedures (such disclosure controls and procedures having been evaluated within 90 days of the
date of this filing) provide reasonable assurance that the information required to be disclosed by
the registrant has been recorded, processed, summarized and reported within the time period
specified in the Commissions rules and forms and that the information required to be disclosed by
the registrant has been accumulated and communicated to the registrants principal executive
officer and principal financial officer in order to allow timely decisions regarding required
disclosure.
(b) There have been no changes in the registrants internal controls over financial reporting
during the second fiscal quarter of the period covered by this report that has materially affected,
or is reasonably likely to materially affect, the registrants internal control over financial
reporting.
Item 12. Exhibits
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(a)(1)
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Registrants Code of Ethics Not applicable (please see Item 2). |
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(a)(2)(i)
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Treasurers Section 302 certification. |
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(a)(2)(ii)
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Presidents Section 302 certification. |
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(b)
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Combined Section 906 certification. |
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
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By:
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/s/ Thomas M. Metzold
Thomas M. Metzold
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President |
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Date:
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July 08, 2010 |
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act
of 1940, this report has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.
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By:
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/s/ Barbara E. Campbell
Barbara E. Campbell
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Treasurer |
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Date:
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July 08, 2010 |
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By:
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/s/ Thomas M. Metzold |
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Thomas M. Metzold |
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President |
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Date:
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July 08, 2010 |
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