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: 811-08134
Eaton Vance Municipals Trust II
(Exact Name of Registrant as Specified in Charter)
Two International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
Maureen A. Gemma
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
(617) 482-8260
(Registrant’s Telephone Number)
January 31
Date of Fiscal Year End
July 31, 2013
Date of Reporting Period
Item 1. Reports to Stockholders
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Eaton Vance High Yield Municipal Income Fund Semiannual Report July 31, 2013 | | |
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Commodity Futures Trading Commission Registration. Effective December 31, 2012, the Commodity Futures Trading Commission (“CFTC”) adopted certain regulatory changes that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a prescribed level of its assets in certain CFTC-regulated instruments (including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. The Fund has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act and is not subject to the CFTC regulation. Because of its management of other strategies, the Fund’s adviser is registered with the CFTC as a commodity pool operator.
Fund shares are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.
This report must be preceded or accompanied by a current summary prospectus or prospectus. Before investing, investors should consider carefully the investment objective, risks, and charges and expenses of a mutual fund. This and other important information is contained in the summary prospectus and prospectus, which can be obtained from a financial advisor. Prospective investors should read the prospectus carefully before investing. For further information, please call 1-800-262-1122.
Semiannual Report July 31, 2013
Eaton Vance
High Yield Municipal Income Fund
Table of Contents
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Performance | | | 2 | |
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Fund Profile | | | 3 | |
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Endnotes and Additional Disclosures | | | 4 | |
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Fund Expenses | | | 5 | |
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Financial Statements | | | 6 | |
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Board of Trustees’ Contract Approval | | | 27 | |
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Officers and Trustees | | | 30 | |
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Important Notices | | | 31 | |
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Performance1,2
Portfolio Managers Thomas M. Metzold, CFA and Cynthia J. Clemson
| | | | | | | | | | | | | | | | | | | | | | | | |
% Average Annual Total Returns | | Class Inception Date | | | Performance Inception Date | | | Six Months | | | One Year | | | Five Years | | | Ten Years | |
Class A at NAV | | | 08/07/1995 | | | | 08/07/1995 | | | | –7.26 | % | | | –3.04 | % | | | 3.66 | % | | | 3.55 | % |
Class A with 4.75% Maximum Sales Charge | | | — | | | | — | | | | –11.66 | | | | –7.63 | | | | 2.65 | | | | 3.05 | |
Class B at NAV | | | 08/07/1995 | | | | 08/07/1995 | | | | –7.64 | | | | –3.79 | | | | 2.89 | | | | 2.80 | |
Class B with 5% Maximum Sales Charge | | | — | | | | — | | | | –12.17 | | | | –8.41 | | | | 2.57 | | | | 2.80 | |
Class C at NAV | | | 06/18/1997 | | | | 08/07/1995 | | | | –7.64 | | | | –3.75 | | | | 2.89 | | | | 2.79 | |
Class C with 1% Maximum Sales Charge | | | — | | | | — | | | | –8.55 | | | | –4.68 | | | | 2.89 | | | | 2.79 | |
Class I at NAV | | | 05/09/2007 | | | | 08/07/1995 | | | | –7.14 | | | | –2.67 | | | | 3.94 | | | | 3.71 | |
Barclays Municipal Bond Index | | | — | | | | — | | | | –3.94 | % | | | –2.19 | % | | | 5.06 | % | | | 4.70 | % |
Barclays High Yield Long (22+) Municipal Bond Index | | | — | | | | — | | | | –8.64 | | | | –0.90 | | | | 6.31 | | | | 6.26 | |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
% Total Annual Operating Expense Ratios3 | | | | | | | | Class A | | | Class B | | | Class C | | | Class I | |
Gross | | | | | | | | | | | 0.96 | % | | | 1.72 | % | | | 1.71 | % | | | 0.71 | % |
Net | | | | | | | | | | | 0.86 | | | | 1.62 | | | | 1.61 | | | | 0.61 | |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
% Distribution Rates/Yields4 | | | | | | | | Class A | | | Class B | | | Class C | | | Class I | |
Distribution Rate | | | | | | | | | | | 5.28 | % | | | 4.51 | % | | | 4.51 | % | | | 5.54 | % |
Taxable-Equivalent Distribution Rate | | | | | | | | | | | 9.33 | | | | 7.97 | | | | 7.97 | | | | 9.79 | |
SEC 30-day Yield | | | | | | | | | | | 4.41 | | | | 3.88 | | | | 3.88 | | | | 4.89 | |
Taxable-Equivalent SEC 30-day Yield | | | | | | | | | | | 7.79 | | | | 6.86 | | | | 6.86 | | | | 8.64 | |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
% Total Leverage5 | | | | | | | | | | | | | | | | | | |
Residual Interest Bond (RIB) | | | | | | | | | | | | | | | | | | | | | | | 12.62 | % |
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than quoted. Returns are before taxes unless otherwise noted. For performance as of the most recent month end, please refer to www.eatonvance.com.
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Fund Profile
Credit Quality (% of total investments)6
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The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6
| | | | | | | | | | |
AAA | | | 3.7 | % | | BB | | | 4.9 | % |
AA | | | 18.8 | | | B | | | 7.0 | |
A | | | 20.6 | | | CCC | | | 2.9 | |
BBB | | | 25.8 | | | Not Rated | | | 16.3 | |
See Endnotes and Additional Disclosures in this report.
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Endnotes and Additional Disclosures
1 | Barclays Municipal Bond Index is an unmanaged index of municipal bonds traded in the U.S. Barclays High Yield Long (22+) Municipal Bond Index is an unmanaged index of high-yield municipal bonds traded in the U.S. with maturities of 22 years or more. Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index. |
2 | Total Returns at NAV do not include applicable sales charges. If sales charges were deducted, the returns would be lower. Total Returns shown with maximum sales charge reflect the stated maximum sales charge. Unless otherwise stated, performance does not reflect the deduction of taxes on Fund distributions or redemptions of Fund shares. |
| Performance prior to the inception date of a class may be linked to the performance of an older class of the Fund. This linked performance is adjusted for any applicable sales charge, but is not adjusted for class expense differences. If adjusted for such differences, the performance would be different. Performance presented in the financial highlights included in the financial statements is not linked. In the performance table, the performance of Class I is linked to Class A. |
3 | Total annual operating expense ratios are as stated in the Fund’s most recent prospectus. Net expense ratio excludes interest expense relating to the Fund’s liability with respect to floating rate notes held by third parties in conjunction with residual interest bond transactions by the Fund. The Fund also records offsetting interest income in an amount equal to this expense relating to the municipal obligations underlying such transactions and, as a result, net asset value and performance have not been affected by this expense. |
4 | The Distribution Rate is based on the Fund’s last regular distribution per share in the period (annualized) divided by the Fund’s NAV at the end of the period. The Fund’s distributions may be composed of ordinary income, tax-exempt income, net realized capital gains and return of capital. The Fund’s distributions are determined by the investment adviser based on its current assessment of the Fund’s long-term return potential. As portfolio and market conditions change, the rate of distributions paid by the Fund could change. Taxable-equivalent performance is based on the highest combined federal and state income tax rates, where applicable. Lower tax rates would result in lower tax-equivalent performance. Actual tax rates will vary depending on your income, exemptions and deductions. Rates do not include local taxes. SEC Yield is a standardized measure based on the estimated yield to maturity of a fund’s investments over a 30-day period and is based on the maximum offer price at the date specified. The SEC Yield is not based on the distributions made by the Fund, which may differ. |
5 | Fund employs RIB financing. The leverage created by RIB investments provides an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of NAV). The cost of leverage rises and falls with changes in short-term interest rates. See “Floating Rate Notes Issued in Conjunction with Securities Held” in the notes to the financial statements for more information about RIB financing. RIB leverage represents the amount of Floating Rate Notes outstanding at period end as a percentage of Fund net assets plus Floating Rate Notes. Floating Rate Notes reflect adjustments for executed but unsettled RIB transactions. |
6 | Ratings are based on Moody’s, S&P or Fitch, as applicable. Ratings, which are subject to change, apply to the creditworthiness of the issuers of the underlying securities and not to the Fund or its shares. Credit ratings measure the quality of a bond based on the issuer’s creditworthiness, with ratings ranging from AAA, being the highest, to D, being the lowest based on S&P’s measures. Ratings of BBB or higher by Standard and Poor’s or Fitch (Baa or higher by Moody’s) are considered to be investment grade quality. Credit ratings are based largely on the rating agency’s analysis at the time of rating. The rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition and does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. If securities are rated differently by the rating agencies, the higher rating is applied. Holdings designated as “Not Rated” are not rated by the national rating agencies stated above. |
| Fund profile subject to change due to active management. |
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Fund Expenses
Example: As a Fund shareholder, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases and redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution and/or service fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of Fund investing and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2013 – July 31, 2013).
Actual Expenses: The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes: The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the actual Fund expense ratio and an assumed rate of return of 5% per year (before expenses), which is not the actual Fund return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption fees (if applicable). Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would be higher.
| | | | | | | | | | | | | | | | |
| | Beginning Account Value (2/1/13) | | | Ending Account Value (7/31/13) | | | Expenses Paid During Period* (2/1/13 – 7/31/13) | | | Annualized Expense Ratio | |
| | | | |
| | | | | | | | | | | | | | | | |
Actual | | | | | | | | | | | | | |
Class A | | $ | 1,000.00 | | | $ | 927.40 | | | $ | 4.64 | | | | 0.97 | % |
Class B | | $ | 1,000.00 | | | $ | 923.60 | | | $ | 8.20 | | | | 1.72 | % |
Class C | | $ | 1,000.00 | | | $ | 923.60 | | | $ | 8.20 | | | | 1.72 | % |
Class I | | $ | 1,000.00 | | | $ | 928.60 | | | $ | 3.44 | | | | 0.72 | % |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | | |
Hypothetical | | | | | | | | | | | | | |
(5% return per year before expenses) | | | | | | | | | | | | | |
Class A | | $ | 1,000.00 | | | $ | 1,020.00 | | | $ | 4.86 | | | | 0.97 | % |
Class B | | $ | 1,000.00 | | | $ | 1,016.30 | | | $ | 8.60 | | | | 1.72 | % |
Class C | | $ | 1,000.00 | | | $ | 1,016.30 | | | $ | 8.60 | | | | 1.72 | % |
Class I | | $ | 1,000.00 | | | $ | 1,021.20 | | | $ | 3.61 | | | | 0.72 | % |
* | Expenses are equal to the Fund’s annualized expense ratio for the indicated Class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on January 31, 2013. |
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Portfolio of Investments (Unaudited)
| | | | | | | | |
Tax-Exempt Municipal Securities — 112.4% | |
| | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Cogeneration — 0.2% | |
Northampton County, PA, Industrial Development Authority, (Northampton Generating), 5.00%, 12/31/23 | | $ | 638 | | | $ | 541,701 | |
Pennsylvania Economic Development Financing Authority, (Colver), (AMT), 5.125%, 12/1/15 | | | 850 | | | | 838,321 | |
| | | | | | | | |
| | | $ | 1,380,022 | |
| | | | | | | | |
| | |
Education — 2.1% | | | | | | | | |
Maryland Health and Higher Educational Facilities Authority, (Washington Christian Academy), 5.50%, 7/1/38(1) | | $ | 800 | | | $ | 223,840 | |
New York Dormitory Authority, (Cornell University), 5.00%, 7/1/34(2) | | | 10,000 | | | | 10,507,900 | |
Oregon Facilities Authority, (Lewis & Clark College), 5.625%, 10/1/36 | | | 1,935 | | | | 2,071,340 | |
| | | | | | | | |
| | | $ | 12,803,080 | |
| | | | | | | | |
| | |
Electric Utilities — 1.9% | | | | | | | | |
Apache County, AZ, Industrial Development Authority, (Tucson Electric Power Co.), 4.50%, 3/1/30 | | $ | 1,695 | | | $ | 1,601,995 | |
Hawaii Department of Budget and Finance, (Hawaiian Electric Co.), 6.50%, 7/1/39 | | | 5,920 | | | | 6,423,259 | |
Pima County, AZ, Industrial Development Authority, (Tucson Electric Power Co.), 4.00%, 9/1/29 | | | 1,520 | | | | 1,354,883 | |
Pima County, AZ, Industrial Development Authority, (Tucson Electric Power Co.), 5.25%, 10/1/40 | | | 2,420 | | | | 2,344,955 | |
| | | | | | | | |
| | | $ | 11,725,092 | |
| | | | | | | | |
| | |
Escrowed / Prerefunded — 0.4% | | | | | | | | |
Dawson Ridge, CO, Metropolitan District No. 1, Escrowed to Maturity, 0.00%, 10/1/22 | | $ | 3,500 | | | $ | 2,658,530 | |
| | | | | | | | |
| | | $ | 2,658,530 | |
| | | | | | | | |
| | |
General Obligations — 5.9% | | | | | | | | |
Illinois, 5.25%, 7/1/30 | | $ | 1,235 | | | $ | 1,241,583 | |
Illinois, 5.25%, 7/1/31 | | | 390 | | | | 390,877 | |
Illinois, 5.50%, 7/1/33 | | | 770 | | | | 781,719 | |
Louisiana, 4.00%, 8/1/30(2) | | | 5,200 | | | | 5,124,236 | |
Louisiana, 4.00%, 8/1/31(2) | | | 5,200 | | | | 5,088,876 | |
Port of Houston Authority of Harris County, TX, (AMT), 5.625%, 10/1/38(2) | | | 6,480 | | | | 6,858,238 | |
Santa Clara County, CA, (Election of 2008), 3.375%, 8/1/37 | | | 3,015 | | | | 2,323,871 | |
Washington, 5.25%, 2/1/36(2) | | | 10,000 | | | | 10,682,800 | |
Will County, IL, Community Unit School District No. 365-U, (Valley View), 5.75%, 11/1/32(3) | | | 3,855 | | | | 4,228,280 | |
| | | | | | | | |
| | | $ | 36,720,480 | |
| | | | | | | | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Health Care – Miscellaneous — 1.3% | |
Illinois Development Finance Authority, (Community Rehabilitation Providers), 5.60%, 7/1/19 | | $ | 1,525 | | | $ | 1,426,058 | |
Tax Revenue Exempt Securities Trust, Community Health Provider, (Pooled Loan Program Various States Trust Certificates), 6.75%, 12/1/36(4) | | | 386 | | | | 386,264 | |
Tax Revenue Exempt Securities Trust, Community Health Provider, (Pooled Loan Program Various States Trust Certificates), 7.75%, 12/1/36(4) | | | 359 | | | | 359,556 | |
Tax Revenue Exempt Securities Trust, Community Health Provider, (Pooled Loan Program Various States Trust Certificates), 7.90%, 12/1/36(4) | | | 302 | | | | 302,425 | |
Tax Revenue Exempt Securities Trust, Community Health Provider, (Pooled Loan Program Various States Trust Certificates), 8.25%, 12/1/36(4) | | | 57 | | | | 56,724 | |
Tax Revenue Exempt Securities Trust, Community Health Provider, (Pooled Loan Program Various States Trust Certificates), 8.375%, 12/1/36(4) | | | 129 | | | | 128,919 | |
Tax Revenue Exempt Securities Trust, Community Health Provider, (Pooled Loan Program Various States Trust Certificates), 8.50%, 12/1/36(4) | | | 356 | | | | 357,116 | |
Tax Revenue Exempt Securities Trust, Community Health Provider, (Pooled Loan Program Various States Trust Certificates), 8.70%, 12/1/36(4) | | | 150 | | | | 149,953 | |
Tax Revenue Exempt Securities Trust, Community Health Provider, (Pooled Loan Program Various States Trust Certificates), 8.81%, 12/1/36(4) | | | 299 | | | | 299,304 | |
Tax Revenue Exempt Securities Trust, Community Health Provider, (Pooled Loan Program Various States Trust Certificates), 8.875%, 12/1/36(4) | | | 90 | | | | 89,972 | |
Tax Revenue Exempt Securities Trust, Community Health Provider, (Pooled Loan Program Various States Trust Certificates), Series 2, 7.00%, 12/1/36(4) | | | 199 | | | | 199,169 | |
Tax Revenue Exempt Securities Trust, Community Health Provider, (Pooled Loan Program Various States Trust Certificates), Series 3, 7.00%, 12/1/36(4) | | | 164 | | | | 164,726 | |
Yavapai County, AZ, Industrial Development Authority, (West Yavapai Guidance Clinic), 6.25%, 12/1/36 | | | 4,115 | | | | 4,037,844 | |
| | | | | | | | |
| | | $ | 7,958,030 | |
| | | | | | | | |
| | |
Hospital — 16.2% | | | | | | | | |
Camden County, NJ, Improvement Authority, (Cooper Health System), 5.00%, 2/15/35 | | $ | 8,015 | | | $ | 8,108,856 | |
Gaylord, MI, Hospital Finance Authority, (Otsego Memorial Hospital Association), 6.20%, 1/1/25 | | | 905 | | | | 913,073 | |
Gaylord, MI, Hospital Finance Authority, (Otsego Memorial Hospital Association), 6.50%, 1/1/37 | | | 875 | | | | 879,156 | |
Hawaii Pacific Health Special Purpose Revenue, 5.50%, 7/1/40(3) | | | 6,555 | | | | 6,661,978 | |
| | | | |
| | 6 | | See Notes to Financial Statements. |
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Portfolio of Investments (Unaudited) — continued
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Hospital (continued) | |
Illinois Finance Authority, (Provena Healthcare), 7.75%, 8/15/34 | | $ | 6,340 | | | $ | 7,706,207 | |
Johnson City, TN, Health & Educational Facilities Board, (Mountain States Health Alliance), 6.00%, 7/1/38 | | | 3,335 | | | | 3,575,120 | |
Knox County, TN, Health, Educational & Housing Facilities, (Covenant Health), 0.00%, 1/1/40 | | | 5,035 | | | | 1,078,144 | |
Massachusetts Development Finance Agency, (Tufts Medical Center), 6.75%, 1/1/36 | | | 2,005 | | | | 2,225,991 | |
Massachusetts Health and Educational Facilities Authority, (Jordan Hospital), 6.75%, 10/1/33 | | | 6,205 | | | | 6,213,315 | |
Monroe County, PA, Hospital Authority, (Pocono Medical Center), 5.25%, 1/1/43 | | | 4,500 | | | | 4,511,655 | |
Muskingum County, OH, (Genesis HealthCare System Obligated Group), 5.00%, 2/15/33 | | | 2,775 | | | | 2,514,400 | |
New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), 5.00%, 7/1/36(2) | | | 7,470 | | | | 7,596,542 | |
New York Dormitory Authority, (Orange Regional Medical Center), 6.125%, 12/1/29 | | | 3,190 | | | | 3,373,489 | |
New York Dormitory Authority, (Orange Regional Medical Center), 6.25%, 12/1/37 | | | 2,000 | | | | 2,098,920 | |
Oneida County, NY, Industrial Development Agency, (St. Elizabeth Medical Center), 6.00%, 12/1/29 | | | 1,780 | | | | 1,780,961 | |
Onondaga Civic Development Corp., NY, (St. Joseph’s Hospital Health Center), 5.00%, 7/1/42 | | | 2,550 | | | | 2,298,366 | |
South Lake County, FL, Hospital District, (South Lake Hospital), 6.25%, 4/1/39 | | | 3,065 | | | | 3,268,117 | |
Sullivan County, TN, Health, Educational and Facilities Board, (Wellmont Health System), 5.25%, 9/1/36 | | | 5,735 | | | | 5,708,160 | |
Tarrant County Cultural Education Facilities Finance Corp., TX, (Cook Children’s Medical Center), 5.25%, 12/1/39(5) | | | 7,000 | | | | 7,156,380 | |
Vermont Educational and Health Buildings Financing Agency, (Fletcher Allen Healthcare Project), 4.75%, 12/1/36 | | | 14,660 | | | | 14,325,459 | |
Wisconsin Health and Educational Facilities Authority, (Wheaton Franciscan Healthcare System), 5.25%, 8/15/31 | | | 5,650 | | | | 5,652,203 | |
Yavapai County, AZ, Industrial Development Authority, (Yavapai Regional Medical Center), 5.25%, 8/1/33(5) | | | 2,500 | | | | 2,450,000 | |
| | | | | | | | |
| | | $ | 100,096,492 | |
| | | | | | | | |
| | |
Housing — 1.9% | | | | | | | | |
Centerline Equity Issuer Trust, TN, 6.00%, 5/15/19(4) | | $ | 4,000 | | | $ | 4,615,000 | |
Jefferson County, MO, Industrial Development Authority, MFMR, (Riverview Bend Apartments), (AMT), 6.75%, 11/1/29 | | | 1,505 | | | | 1,472,161 | |
Jefferson County, MO, Industrial Development Authority, MFMR, (Riverview Bend Apartments), (AMT), 7.125%, 11/1/29 | | | 400 | | | | 386,432 | |
Oregon Health Authority, (Trillium Affordable Housing), Series A, (AMT), 6.75%, 2/15/29 | | | 2,660 | | | | 2,615,232 | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Housing (continued) | |
Oregon Health Authority, (Trillium Affordable Housing), Series B, (AMT), 6.75%, 2/15/29 | | $ | 1,180 | | | $ | 1,111,241 | |
Texas Student Housing Corp., (University of North Texas), 9.375%, 7/1/06(6) | | | 860 | | | | 481,351 | |
Texas Student Housing Corp., (University of North Texas), 11.00%, 7/1/31(1) | | | 2,000 | | | | 1,119,420 | |
| | | | | | | | |
| | | $ | 11,800,837 | |
| | | | | | | | |
|
Industrial Development Revenue — 16.8% | |
ABIA Development Corp., TX, (Austin CargoPort Development), (AMT), 6.50%, 10/1/24 | | $ | 1,735 | | | $ | 1,453,739 | |
ABIA Development Corp., TX, (Austin CargoPort Development), (AMT), 9.25%, 10/1/21 | | | 2,370 | | | | 2,263,682 | |
Alabama Industrial Development Authority, (Pine City Fiber Co.), Series 1993, (AMT), 6.45%, 12/1/23 | | | 6,325 | | | | 6,331,957 | |
Alabama Industrial Development Authority, (Pine City Fiber Co.), Series 1994, (AMT), 6.45%, 12/1/23 | | | 1,360 | | | | 1,361,496 | |
Brazos River Harbor Navigation District of Brazoria County, TX, (Dow Chemical Co.), (AMT), 5.95%, 5/15/33 | | | 9,085 | | | | 9,691,424 | |
Butler, AL, Industrial Development Board, (Georgia-Pacific Corp.), (AMT), 5.75%, 9/1/28 | | | 2,150 | | | | 2,224,411 | |
Clayton County, GA, Development Authority, (Delta Airlines, Inc.), 8.75%, 6/1/29 | | | 1,180 | | | | 1,381,202 | |
Clayton County, GA, Development Authority, (Delta Airlines, Inc.), (AMT), 9.00%, 6/1/35 | | | 6,510 | | | | 7,031,256 | |
Denver City and County, CO, (United Airlines), (AMT), 5.75%, 10/1/32 | | | 1,300 | | | | 1,283,542 | |
Hardeman County, TN, (Correctional Facilities Corp.), 7.75%, 8/1/17 | | | 1,745 | | | | 1,727,393 | |
Illinois Finance Authority, Solid Waste Disposal, (Waste Management, Inc.), (AMT), 5.05%, 8/1/29 | | | 7,600 | | | | 7,636,860 | |
Louisiana Public Facilities Authority (Cleco Power LLC), 4.25%, 12/1/38 | | | 3,250 | | | | 2,984,930 | |
Maine Finance Authority, Solid Waste Disposal, (Casella Waste Systems, Inc.), (AMT), 6.25% to 2/1/17 (Put Date), 1/1/25 | | | 2,175 | | | | 2,186,702 | |
Maricopa County, AZ, Pollution Control Corp., (El Paso Electric Co.), 4.50%, 8/1/42 | | | 6,300 | | | | 5,730,858 | |
Maryland Economic Development Corp., (AFCO Cargo), (AMT), 6.50%, 7/1/24 | | | 2,245 | | | | 1,993,380 | |
Maryland Economic Development Corp., (AFCO Cargo), (AMT), 7.34%, 7/1/24 | | | 445 | | | | 421,486 | |
Matagorda County, TX, Navigation District No. 1, (AEP Texas Central Co.), Series 2008-1, 4.00%, 6/1/30 | | | 1,000 | | | | 897,580 | |
Matagorda County, TX, Navigation District No. 1, (AEP Texas Central Co.), Series 2008-2, 4.00%, 6/1/30 | | | 6,155 | | | | 5,524,605 | |
New Jersey Economic Development Authority, (Continental Airlines), (AMT), 5.125%, 9/15/23 | | | 2,760 | | | | 2,639,029 | |
| | | | |
| | 7 | | See Notes to Financial Statements. |
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Portfolio of Investments (Unaudited) — continued
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Industrial Development Revenue (continued) | |
New Jersey Economic Development Authority, (Continental Airlines), (AMT), 5.25%, 9/15/29 | | $ | 8,285 | | | $ | 7,811,347 | |
New Jersey Economic Development Authority, (Continental Airlines), (AMT), 5.50%, 6/1/33 | | | 4,375 | | | | 4,147,150 | |
New Jersey Economic Development Authority, (New Jersey-American Water Co., Inc.), (AMT), 5.70%, 10/1/39 | | | 6,245 | | | | 6,578,920 | |
Niagara Area Development Corp., NY, (Covanta Energy), 5.25%, 11/1/42 | | | 3,745 | | | | 3,303,539 | |
Phenix City, AL, Industrial Development Board, (MeadWestvaco Coated Board), (AMT), 4.125%, 5/15/35 | | | 5,455 | | | | 4,309,668 | |
Phoenix, AZ, Industrial Development Authority, (America West Airlines, Inc.), (AMT), 6.25%, 6/1/19 | | | 8,200 | | | | 8,199,672 | |
Selma, AL, Industrial Development Board, (International Paper Co.), 5.80%, 5/1/34 | | | 4,230 | | | | 4,443,700 | |
| | | | | | | | |
| | | $ | 103,559,528 | |
| | | | | | | | |
| | |
Insured – Industrial Development Revenue — 1.3% | | | | | | | | |
Matagorda County, TX, Navigation District No. 1, (AEP Texas Central Co.), (NPFG), (AMT), 5.20%, 5/1/30 | | $ | 8,050 | | | $ | 8,259,783 | |
| | | | | | | | |
| | | $ | 8,259,783 | |
| | | | | | | | |
| | |
Insured – Other Revenue — 3.1% | | | | | | | | |
Harris County-Houston, TX, Sports Authority, (NPFG), 0.00%, 11/15/26 | | $ | 10,510 | | | $ | 4,909,852 | |
Harris County-Houston, TX, Sports Authority, (NPFG), 0.00%, 11/15/28 | | | 10,000 | | | | 4,044,100 | |
Harris County-Houston, TX, Sports Authority, (NPFG), 0.00%, 11/15/34 | | | 12,700 | | | | 3,523,361 | |
New York, NY, Industrial Development Agency, (Yankee Stadium), (AGC), 7.00%, 3/1/49 | | | 5,650 | | | | 6,611,065 | |
| | | | | | | | |
| | | $ | 19,088,378 | |
| | | | | | | | |
| | |
Insured – Special Tax Revenue — 2.4% | | | | | | | | |
Miami-Dade County, FL, Professional Sports Franchise Facilities, (AGC), 7.00%, (0.00% until 10/1/19), 10/1/39 | | $ | 14,500 | | | $ | 11,043,635 | |
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/43 | | | 20,000 | | | | 2,843,400 | |
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 | | | 5,415 | | | | 662,633 | |
| | | | | | | | |
| | | $ | 14,549,668 | |
| | | | | | | | |
| | |
Insured – Student Loan — 2.4% | | | | | | | | |
Massachusetts Educational Financing Authority, (AGC), (AMT), 6.35%, 1/1/30 | | $ | 5,860 | | | $ | 6,157,923 | |
Massachusetts Educational Financing Authority, (AMBAC), (AMT), 4.70%, 1/1/33 | | | 9,440 | | | | 8,374,035 | |
| | | | | | | | |
| | | $ | 14,531,958 | |
| | | | | | | | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | |
Insured – Transportation — 6.6% | | | | | | | | |
E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/33 | | $ | 15,000 | | | $ | 4,656,750 | |
E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/34 | | | 20,000 | | | | 5,798,000 | |
E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/37 | | | 6,665 | | | | 1,582,671 | |
E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/38 | | | 3,335 | | | | 740,603 | |
North Texas Tollway Authority, (AGC), 6.20%, (0.00% until 1/1/15), 1/1/42 | | | 10,000 | | | | 10,302,800 | |
San Joaquin Hills Transportation Corridor Agency, CA, (NPFG), 0.00%, 1/15/32 | | | 20,335 | | | | 6,438,061 | |
San Jose, CA, Airport, (AGM), (AMBAC), (BHAC), (AMT), 6.00%, 3/1/47(3) | | | 7,150 | | | | 7,337,116 | |
Texas Turnpike Authority, (AMBAC), 0.00%, 8/15/30 | | | 10,000 | | | | 4,020,400 | |
| | | | | | | | |
| | | $ | 40,876,401 | |
| | | | | | | | |
| |
Lease Revenue / Certificates of Participation — 4.3% | | | | | |
Greenville County, SC, School District, 5.00%, 12/1/24(2) | | $ | 21,000 | | | $ | 23,446,080 | |
Hudson Yards Infrastructure Corp., NY, 5.75%, 2/15/47 | | | 2,765 | | | | 2,941,020 | |
| | | | | | | | |
| | | $ | 26,387,100 | |
| | | | | | | | |
| | |
Nursing Home — 0.5% | | | | | | | | |
Mississippi Business Finance Corp., (Magnolia Healthcare), 7.99%, 7/1/25 | | $ | 925 | | | $ | 865,680 | |
Westmoreland County, PA, Industrial Development Authority, (Highland Health Systems, Inc.), 9.25%, 6/1/22 | | | 2,155 | | | | 1,966,243 | |
| | | | | | | | |
| | | $ | 2,831,923 | |
| | | | | | | | |
|
Other Revenue — 11.0% | |
Brooklyn, NY, Arena Local Development Corp., (Barclays Center), 6.00%, 7/15/30 | | $ | 1,150 | | | $ | 1,274,867 | |
Brooklyn, NY, Arena Local Development Corp., (Barclays Center), 6.25%, 7/15/40 | | | 1,290 | | | | 1,425,102 | |
Brooklyn, NY, Arena Local Development Corp., (Barclays Center), 6.375%, 7/15/43 | | | 700 | | | | 776,531 | |
Central Falls, RI, Detention Facility Corp., 7.25%, 7/15/35 | | | 6,305 | | | | 4,938,769 | |
Children’s Trust Fund, PR, Tobacco Settlement, 0.00%, 5/15/55 | | | 81,635 | | | | 2,473,540 | |
Cow Creek Band Umpqua Tribe of Indians, OR, 5.625%, 10/1/26(4) | | | 6,000 | | | | 5,448,240 | |
New Jersey Economic Development Authority, (Duke Farms Foundation), 5.00%, 7/1/48(2) (7) | | | 7,200 | | | | 7,394,328 | |
Non-Profit Preferred Funding Trust I, Various States, 5.17%, 9/15/37(4) | | | 14,000 | | | | 9,405,200 | |
Otero County, NM, Jail Project Revenue, 5.75%, 4/1/18 | | | 840 | | | | 782,754 | |
Salt Verde Financial Corp., AZ, Senior Gas Revenue, 5.00%, 12/1/37 | | | 3,135 | | | | 3,005,775 | |
Seminole Tribe, FL, 5.25%, 10/1/27(4) | | | 9,000 | | | | 9,367,020 | |
Seminole Tribe, FL, 5.50%, 10/1/24(4) | | | 6,135 | | | | 6,481,014 | |
| | | | |
| | 8 | | See Notes to Financial Statements. |
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Portfolio of Investments (Unaudited) — continued
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Other Revenue (continued) | |
Texas Municipal Gas Acquisition and Supply Corp. I, Gas Supply Revenue, 6.25%, 12/15/26 | | $ | 3,355 | | | $ | 3,820,875 | |
Texas Municipal Gas Acquisition and Supply Corp. III, Gas Supply Revenue, 5.00%, 12/15/29 | | | 2,765 | | | | 2,695,737 | |
Texas Municipal Gas Acquisition and Supply Corp. III, Gas Supply Revenue, 5.00%, 12/15/30 | | | 1,860 | | | | 1,791,013 | |
White Earth Band of Chippewa Indians, MN, 6.375%, 12/1/26(4) | | | 8,580 | | | | 6,849,929 | |
| | | | | | | | |
| | | $ | 67,930,694 | |
| | | | | | | | |
| | |
Senior Living / Life Care — 8.8% | | | | | | | | |
Albemarle County, VA, Economic Development Authority, (Westminster-Canterbury Blue Ridge), 5.00%, 1/1/42 | | $ | 900 | | | $ | 785,628 | |
Atlantic Beach, FL, (Fleet Landing), 5.00%, 11/15/37 | | | 1,670 | | | | 1,578,985 | |
California Statewide Communities Development Authority, (Southern California Presbyterian Homes), 4.75%, 11/15/26 | | | 1,575 | | | | 1,468,058 | |
California Statewide Communities Development Authority, (Southern California Presbyterian Homes), 4.875%, 11/15/36 | | | 6,000 | | | | 5,202,360 | |
Cliff House Trust, (AMT), 6.625%, 6/1/27(1) | | | 3,000 | | | | 1,564,080 | |
Fairfax County, VA, Economic Development Authority, (Goodwin House, Inc.), 5.125%, 10/1/37 | | | 2,710 | | | | 2,710,813 | |
Hawaii Department of Budget and Finance, (Kahala Senior Living Community, Inc.), 5.125%, 11/15/32 | | | 525 | | | | 525,341 | |
Hawaii Department of Budget and Finance, (Kahala Senior Living Community, Inc.), 5.25%, 11/15/37 | | | 480 | | | | 477,677 | |
Indiana Finance Authority, (Marquette), 5.00%, 3/1/39 | | | 1,000 | | | | 895,800 | |
Kansas City, MO, Industrial Development Authority, (Kingswood United Methodist Manor), 5.875%, 11/15/29 | | | 7,425 | | | | 6,777,763 | |
Lee County, FL, Industrial Development Authority, (Shell Point Village/Alliance Community), 5.00%, 11/15/29 | | | 7,000 | | | | 6,735,260 | |
Maryland Health and Higher Educational Facilities Authority, (Edenwald), 5.40%, 1/1/37 | | | 2,600 | | | | 2,525,874 | |
Massachusetts Development Finance Agency, (North Hill Communities), 3.50%, 11/15/16 | | | 985 | | | | 976,657 | |
Massachusetts Development Finance Agency, (North Hill Communities), 4.00%, 11/15/17 | | | 1,730 | | | | 1,711,108 | |
Massachusetts Development Finance Agency, (North Hill Communities), 4.50%, 11/15/18 | | | 1,780 | | | | 1,757,643 | |
Massachusetts Development Finance Agency, (VOA Concord Assisted Living, Inc.), 5.125%, 11/1/27 | | | 1,085 | | | | 987,545 | |
Massachusetts Development Finance Agency, (VOA Concord Assisted Living, Inc.), 5.20%, 11/1/41 | | | 1,560 | | | | 1,288,981 | |
North Miami, FL, Health Care Facilities, (Imperial Club), 7.00%, 1/1/42(1) | | | 3,475 | | | | 346,666 | |
North Miami, FL, Health Care Facilities, (Imperial Club), 7.625%, (0.00% until 1/1/17), 1/1/41(1) | | | 7,315 | | | | 729,744 | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Senior Living / Life Care (continued) | |
St. Joseph County, IN, Holy Cross Village, 5.70%, 5/15/28 | | $ | 530 | | | $ | 530,000 | |
St. Joseph County, IN, Holy Cross Village, 6.00%, 5/15/26 | | | 1,225 | | | | 1,243,204 | |
St. Joseph County, IN, Holy Cross Village, 6.00%, 5/15/38 | | | 5,460 | | | | 5,467,044 | |
Tempe, AZ, Industrial Development Authority, (Friendship Village of Tempe), 6.00%, 12/1/32 | | | 450 | | | | 453,771 | |
Tempe, AZ, Industrial Development Authority, (Friendship Village of Tempe), 6.25%, 12/1/42 | | | 1,320 | | | | 1,329,649 | |
Tompkins County, NY, Development Corp., (Kendal at Ithaca, Inc.), 4.25%, 7/1/32 | | | 1,270 | | | | 1,118,108 | |
Tompkins County, NY, Development Corp., (Kendal at Ithaca, Inc.), 4.50%, 7/1/42 | | | 1,270 | | | | 1,076,604 | |
Warren County, OH, Health Care Facilities, (Otterbein Homes Obligated Group), 5.50%, 7/1/39 | | | 1,000 | | | | 1,001,080 | |
Washington Housing Finance Commission, (Wesley Homes), 6.20%, 1/1/36 | | | 2,500 | | | | 2,582,475 | |
Westchester County, NY, Local Development Corp., (Kendal on Hudson), 5.00%, 1/1/34 | | | 850 | | | | 825,087 | |
| | | | | | | | |
| | | $ | 54,673,005 | |
| | | | | | | | |
| | |
Solid Waste — 0.9% | | | | | | | | |
Connecticut Resources Recovery Authority, (American REF-FUEL Co.), (AMT), 6.45%, 11/15/22 | | $ | 5,610 | | | $ | 5,615,217 | |
| | | | | | | | |
| | | $ | 5,615,217 | |
| | | | | | | | |
| | |
Special Tax Revenue — 7.7% | | | | | | | | |
Avelar Creek, FL, Community Development District, (Capital Improvements), 5.375%, 5/1/36 | | $ | 1,255 | | | $ | 1,117,063 | |
Bridgeville, DE, (Heritage Shores Special Development District), 5.125%, 7/1/35 | | | 55 | | | | 42,559 | |
Bridgeville, DE, (Heritage Shores Special Development District), 5.45%, 7/1/35 | | | 6,167 | | | | 4,767,523 | |
Dupree Lakes, FL, Community Development District, 5.375%, 5/1/37 | | | 3,165 | | | | 2,623,975 | |
Illinois, Sales Tax Revenue, 5.00%, 6/15/31 | | | 1,210 | | | | 1,251,297 | |
Illinois, Sales Tax Revenue, 5.00%, 6/15/32 | | | 670 | | | | 691,963 | |
Massachusetts Bay Transportation Authority, Sales Tax Revenue, 5.25%, 7/1/32(2) | | | 19,980 | | | | 22,049,528 | |
New River, FL, Community Development District, (Capital Improvements), Series 2010A-1, 5.75%, 5/1/38 | | | 540 | | | | 433,274 | |
New River, FL, Community Development District, (Capital Improvements), Series 2010A-2, 5.75%, (0.00% until 11/1/14), 5/1/38 | | | 1,390 | | | | 594,892 | |
New River, FL, Community Development District, (Capital Improvements), Series 2010B-1, 5.00%, 5/1/15 | | | 825 | | | | 794,904 | |
New River, FL, Community Development District, (Capital Improvements), Series 2010B-2, 5.00%, (0.00% until 11/1/14), 5/1/18 | | | 1,085 | | | | 515,516 | |
| | | | |
| | 9 | | See Notes to Financial Statements. |
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Portfolio of Investments (Unaudited) — continued
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Special Tax Revenue (continued) | |
New River, FL, Community Development District, (Capital Improvements), 5.00%, 5/1/13(6) | | $ | 1,005 | | | $ | 10 | |
Poinciana West, FL, Community Development District, 6.00%, 5/1/37 | | | 2,230 | | | | 2,025,821 | |
River Hall, FL, Community Development District, (Capital Improvements), 5.45%, 5/1/36 | | | 2,990 | | | | 2,490,521 | |
Southern Hills Plantation I, FL, Community Development District, Series A1, 5.80%, 5/1/35 | | | 1,353 | | | | 1,164,327 | |
Southern Hills Plantation I, FL, Community Development District, Series A2, 5.80%, 5/1/35 | | | 1,000 | | | | 589,800 | |
Sterling Hill, FL, Community Development District, 5.50%, 5/1/37(1) | | | 3,650 | | | | 1,038,681 | |
University Square, FL, Community Development District, 5.875%, 5/1/38 | | | 1,805 | | | | 1,733,251 | |
Virgin Islands Public Finance Authority, 6.75%, 10/1/37 | | | 3,505 | | | | 3,886,484 | |
| | | | | | | | |
| | | $ | 47,811,389 | |
| | | | | | | | |
|
Student Loan — 1.0% | |
New Jersey Higher Education Student Assistance Authority, (AMT), 4.75%, 12/1/43 | | $ | 2,790 | | | $ | 2,449,285 | |
New Jersey Higher Education Student Assistance Authority, (AMT), 5.00%, 12/1/27 | | | 3,735 | | | | 3,993,201 | |
| | | | | | | | |
| | | $ | 6,442,486 | |
| | | | | | | | |
| | |
Transportation — 14.4% | | | | | | | | |
Central Texas Regional Mobility Authority, 5.75%, 1/1/31 | | $ | 565 | | | $ | 601,036 | |
Dallas and Fort Worth, TX, (Dallas/Fort Worth International Airport), 5.25%, 11/1/30(5) | | | 2,085 | | | | 2,170,381 | |
Dallas and Fort Worth, TX, (Dallas/Fort Worth International Airport), 5.25%, 11/1/31(5) | | | 3,215 | | | | 3,304,570 | |
Grand Parkway Transportation Corp., TX, 5.125%, 10/1/43(5) | | | 3,025 | | | | 2,945,503 | |
Miami-Dade County, FL, (Miami International Airport), 5.00%, 10/1/41 | | | 4,430 | | | | 4,445,594 | |
New Jersey Transportation Trust Fund Authority, (Transportation System), 5.875%, 12/15/38 | | | 2,000 | | | | 2,236,120 | |
North Texas Tollway Authority, 5.75%, 1/1/38 | | | 7,150 | | | | 7,515,794 | |
North Texas Tollway Authority, (Special Projects System), 5.50%, 9/1/41(2) | | | 10,000 | | | | 10,727,000 | |
Pennsylvania Economic Development Financing Authority, (Amtrak), (AMT), 5.00%, 11/1/41 | | | 5,540 | | | | 5,376,459 | |
Pennsylvania Turnpike Commission, 5.35%, (0.00% until 12/1/15), 12/1/30 | | | 560 | | | | 507,870 | |
Pennsylvania Turnpike Commission, 5.45%, (0.00% until 12/1/15), 12/1/35 | | | 1,125 | | | | 1,005,233 | |
Philadelphia, PA, Airport Revenue, (AMT), 5.00%, 6/15/26 | | | 655 | | | | 672,344 | |
Philadelphia, PA, Airport Revenue, (AMT), 5.00%, 6/15/27 | | | 1,600 | | | | 1,627,072 | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Transportation (continued) | |
Port Authority of New York and New Jersey, (AMT), 4.50%, 4/1/37(2) | | $ | 10,000 | | | $ | 9,376,100 | |
Port Authority of New York and New Jersey, (AMT), 4.75%, 4/15/37(2) | | | 4,980 | | | | 4,909,931 | |
Port Authority of New York and New Jersey, (AMT), 5.25%, 9/15/23(2) | | | 5,025 | | | | 5,479,260 | |
Port Authority of New York and New Jersey, (AMT), 5.75%, 3/15/35(2) | | | 9,990 | | | | 10,847,442 | |
Route 460 Funding Corp., VA, 0.00%, 7/1/39 | | | 4,700 | | | | 1,036,209 | |
Route 460 Funding Corp., VA, 0.00%, 7/1/40 | | | 9,890 | | | | 2,046,142 | |
Route 460 Funding Corp., VA, 0.00%, 7/1/41 | | | 10,630 | | | | 2,068,598 | |
Texas Private Activity Bond Surface Transportation Corp., (LBJ Express Managed Lanes Project), 7.00%, 6/30/34 | | | 3,650 | | | | 4,191,696 | |
Texas Private Activity Bond Surface Transportation Corp., (North Tarrant Express Managed Lanes Project), 6.875%, 12/31/39 | | | 3,415 | | | | 3,836,240 | |
Walker Field, Public Airport Authority, CO, 4.75%, 12/1/27 | | | 1,090 | | | | 1,104,410 | |
Walker Field, Public Airport Authority, CO, 5.00%, 12/1/22 | | | 1,040 | | | | 1,114,058 | |
| | | | | | | | |
| | | $ | 89,145,062 | |
| | | | | | | | |
| | |
Water and Sewer — 1.3% | | | | | | | | |
Detroit, MI, Sewage Disposal System, 5.00%, 7/1/32 | | $ | 1,490 | | | $ | 1,352,503 | |
Detroit, MI, Sewage Disposal System, 5.25%, 7/1/39 | | | 2,580 | | | | 2,365,008 | |
Detroit, MI, Water Supply System, 5.25%, 7/1/41 | | | 4,485 | | | | 4,110,996 | |
| |
| | | | | | $ | 7,828,507 | |
| |
| |
Total Tax-Exempt Municipal Securities — 112.4% (identified cost $710,967,531) | | | $ | 694,673,662 | |
| |
| | | | |
| | 10 | | See Notes to Financial Statements. |
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Portfolio of Investments (Unaudited) — continued
| | | | | | | | |
Taxable Municipal Securities — 1.2% | |
| | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Insured-Special Tax Revenue — 1.0% | |
Colony Local Development Corp., TX, Sales Tax Revenue, (BHAC), 4.881%, 10/1/47 | | $ | 6,965 | | | $ | 6,150,165 | |
| | | | | | | | |
| | | $ | 6,150,165 | |
| | | | | | | | |
|
Other Revenue — 0.2% | |
Pueblo of Santa Ana, NM, 15.00%, 4/1/24(4) | | $ | 1,481 | | | $ | 1,481,874 | |
| | | | | | | | |
| | | | | | $ | 1,481,874 | |
| |
| |
Total Taxable Municipal Securities — 1.2% (identified cost $8,571,236) | | | $ | 7,632,039 | |
| |
| |
Total Investments — 113.6% (identified cost $719,538,767) | | | $ | 702,305,701 | |
| |
| |
Other Assets, Less Liabilities — (13.6)% | | | $ | (84,136,057 | ) |
| |
| |
Net Assets — 100.0% | | | $ | 618,169,644 | |
| |
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
| | | | |
AGC | | – | | Assured Guaranty Corp. |
AGM | | – | | Assured Guaranty Municipal Corp. |
AMBAC | | – | | AMBAC Financial Group, Inc. |
AMT | | – | | Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. |
BHAC | | – | | Berkshire Hathaway Assurance Corp. |
MFMR | | – | | Multi-Family Mortgage Revenue |
NPFG | | – | | National Public Finance Guaranty Corp. |
At July 31, 2013, the concentration of the Fund’s investments in the various states, determined as a percentage of net assets, is as follows:
| | | | |
Texas | | | 19.4% | |
New York | | | 12.6% | |
Others, representing less than 10% individually | | | 81.6% | |
The Fund invests primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at July 31, 2013, 14.7% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 1.0% to 6.2% of total investments.
(1) | Defaulted security. Issuer has defaulted on the payment of interest or has filed for bankruptcy. |
(2) | Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1I). |
(3) | Security (or a portion thereof) has been segregated to cover payable for when-issued securities. |
(4) | 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 July 31, 2013, the aggregate value of these securities is $46,142,405 or 7.5% of the Fund’s net assets. |
(5) | When-issued security. |
(6) | Defaulted matured bond. |
(7) | Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $2,594,328. |
| | | | |
| | 11 | | See Notes to Financial Statements. |
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Statement of Assets and Liabilities (Unaudited)
| | | | |
Assets | | July 31, 2013 | |
Investments, at value (identified cost, $719,538,767) | | $ | 702,305,701 | |
Cash | | | 20,994,738 | |
Restricted cash* | | | 875,000 | |
Interest receivable | | | 8,226,917 | |
Receivable for investments sold | | | 2,857,020 | |
Receivable for Fund shares sold | | | 1,391,707 | |
Total assets | | $ | 736,651,083 | |
Liabilities | | | | |
Payable for floating rate notes issued | | $ | 91,845,000 | |
Payable for investments purchased | | | 2,557,986 | |
Payable for when-issued securities | | | 18,182,713 | |
Payable for variation margin on open financial futures contracts | | | 29,774 | |
Payable for Fund shares redeemed | | | 4,625,453 | |
Distributions payable | | | 484,677 | |
Payable to affiliates: | | | | |
Investment adviser fee | | | 269,722 | |
Distribution and service fees | | | 196,515 | |
Interest expense and fees payable | | | 132,742 | |
Accrued expenses | | | 156,857 | |
Total liabilities | | $ | 118,481,439 | |
Net Assets | | $ | 618,169,644 | |
Sources of Net Assets | | | | |
Paid-in capital | | $ | 878,498,421 | |
Accumulated net realized loss | | | (247,285,349 | ) |
Accumulated undistributed net investment income | | | 2,195,779 | |
Net unrealized depreciation | | | (15,239,207 | ) |
Net Assets | | $ | 618,169,644 | |
Class A Shares | | | | |
Net Assets | | $ | 341,178,006 | |
Shares Outstanding | | | 42,710,112 | |
Net Asset Value and Redemption Price Per Share | | | | |
(net assets ÷ shares of beneficial interest outstanding) | | $ | 7.99 | |
Maximum Offering Price Per Share | | | | |
(100 ÷ 95.25 of net asset value per share) | | $ | 8.39 | |
Class B Shares | | | | |
Net Assets | | $ | 9,896,010 | |
Shares Outstanding | | | 1,242,864 | |
Net Asset Value and Offering Price Per Share** | | | | |
(net assets ÷ shares of beneficial interest outstanding) | | $ | 7.96 | |
Class C Shares | | | | |
Net Assets | | $ | 128,686,601 | |
Shares Outstanding | | | 17,407,840 | |
Net Asset Value and Offering Price Per Share** | | | | |
(net assets ÷ shares of beneficial interest outstanding) | | $ | 7.39 | |
Class I Shares | | | | |
Net Assets | | $ | 138,409,027 | |
Shares Outstanding | | | 17,309,561 | |
Net Asset Value, Offering Price and Redemption Price Per Share | | | | |
(net assets ÷ shares of beneficial interest outstanding) | | $ | 8.00 | |
On sales of $50,000 or more, the offering price of Class A shares is reduced.
* | Represents restricted cash on deposit at the broker for open financial futures contracts. |
** | Redemption price per share is equal to the net asset value less any applicable contingent deferred sales charge. |
| | | | |
| | 12 | | See Notes to Financial Statements. |
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Statement of Operations (Unaudited)
| | | | |
Investment Income | | Six Months Ended July 31, 2013 | |
Interest | | $ | 21,509,364 | |
Total investment income | | $ | 21,509,364 | |
| |
Expenses | | | | |
Investment adviser fee | | $ | 1,750,569 | |
Distribution and service fees | | | | |
Class A | | | 499,135 | |
Class B | | | 63,060 | |
Class C | | | 774,568 | |
Trustees’ fees and expenses | | | 13,282 | |
Custodian fee | | | 111,611 | |
Transfer and dividend disbursing agent fees | | | 137,256 | |
Legal and accounting services | | | 60,220 | |
Printing and postage | | | 20,502 | |
Registration fees | | | 52,657 | |
Interest expense and fees | | | 382,339 | |
Miscellaneous | | | 61,634 | |
Total expenses | | $ | 3,926,833 | |
Deduct — | | | | |
Reduction of custodian fee | | $ | 2,061 | |
Total expense reductions | | $ | 2,061 | |
| |
Net expenses | | $ | 3,924,772 | |
| |
Net investment income | | $ | 17,584,592 | |
| |
Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) — | | | | |
Investment transactions | | $ | (5,865,301 | ) |
Financial futures contracts | | | 1,428,523 | |
Net realized loss | | $ | (4,436,778 | ) |
Change in unrealized appreciation (depreciation) — | | | | |
Investments | | $ | (64,932,426 | ) |
Financial futures contracts | | | (329,792 | ) |
Net change in unrealized appreciation (depreciation) | | $ | (65,262,218 | ) |
| |
Net realized and unrealized loss | | $ | (69,698,996 | ) |
| |
Net decrease in net assets from operations | | $ | (52,114,404 | ) |
| | | | |
| | 13 | | See Notes to Financial Statements. |
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Statements of Changes in Net Assets
| | | | | | | | |
Increase (Decrease) in Net Assets | | Six Months Ended July 31, 2013 (Unaudited) | | | Year Ended January 31, 2013 | |
From operations — | | | | | | | | |
Net investment income | | $ | 17,584,592 | | | $ | 34,997,830 | |
Net realized loss from investment transactions and financial futures contracts | | | (4,436,778 | ) | | | (4,786,754 | ) |
Net change in unrealized appreciation (depreciation) from investments and financial futures contracts | | | (65,262,218 | ) | | | 44,698,931 | |
Net increase (decrease) in net assets from operations | | $ | (52,114,404 | ) | | $ | 74,910,007 | |
Distributions to shareholders — | | | | | | | | |
From net investment income | | | | | | | | |
Class A | | $ | (9,794,248 | ) | | $ | (19,357,383 | ) |
Class B | | | (262,071 | ) | | | (795,352 | ) |
Class C | | | (3,220,036 | ) | | | (6,624,499 | ) |
Class I | | | (4,029,566 | ) | | | (7,464,322 | ) |
Total distributions to shareholders | | $ | (17,305,921 | ) | | $ | (34,241,556 | ) |
Transactions in shares of beneficial interest — | | | | | | | | |
Proceeds from sale of shares | | | | | | | | |
Class A | | $ | 47,815,432 | | | $ | 126,685,379 | |
Class B | | | 140,233 | | | | 383,870 | |
Class C | | | 8,101,981 | | | | 33,034,684 | |
Class I | | | 28,834,354 | | | | 87,235,591 | |
Net asset value of shares issued to shareholders in payment of distributions declared | | | | | | | | |
Class A | | | 8,271,619 | | | | 15,738,852 | |
Class B | | | 211,121 | | | | 598,710 | |
Class C | | | 2,451,877 | | | | 4,644,623 | |
Class I | | | 3,270,959 | | | | 6,055,559 | |
Cost of shares redeemed | | | | | | | | |
Class A | | | (90,491,932 | ) | | | (135,548,463 | ) |
Class B | | | (2,212,714 | ) | | | (3,692,603 | ) |
Class C | | | (32,992,221 | ) | | | (27,638,412 | ) |
Class I | | | (39,353,772 | ) | | | (65,506,925 | ) |
Net asset value of shares exchanged | | | | | | | | |
Class A | | | 2,008,628 | | | | 6,409,319 | |
Class B | | | (2,008,628 | ) | | | (6,409,319 | ) |
Net increase (decrease) in net assets from Fund share transactions | | $ | (65,953,063 | ) | | $ | 41,990,865 | |
| | |
Net increase (decrease) in net assets | | $ | (135,373,388 | ) | | $ | 82,659,316 | |
|
Net Assets | |
At beginning of period | | $ | 753,543,032 | | | $ | 670,883,716 | |
At end of period | | $ | 618,169,644 | | | $ | 753,543,032 | |
|
Accumulated undistributed net investment income included in net assets | |
At end of period | | $ | 2,195,779 | | | $ | 1,917,108 | |
| | | | |
| | 14 | | See Notes to Financial Statements. |
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Statement of Cash Flows
| | | | |
Cash Flows From Operating Activities | | Six Months Ended July 31, 2013 (Unaudited) | |
Net decrease in net assets from operations | | $ | (52,114,404 | ) |
Adjustments to reconcile net decrease in net assets from operations to net cash provided by operating activities: | | | | |
Investments purchased | | | (124,027,878 | ) |
Investments sold | | | 189,964,276 | |
Net amortization/accretion of premium (discount) | | | (2,427,231 | ) |
Decrease in restricted cash | | | 400,000 | |
Decrease in interest receivable | | | 842,483 | |
Decrease in payable for variation margin on open financial futures contracts | | | (109,578 | ) |
Decrease in payable to affiliate for investment adviser fee | | | (30,490 | ) |
Decrease in payable to affiliate for distribution and service fees | | | (43,033 | ) |
Decrease in interest expense and fees payable | | | (16,207 | ) |
Decrease in accrued expenses | | | (33,171 | ) |
Net change in unrealized (appreciation) depreciation from investments | | | 64,932,426 | |
Net realized loss from investments | | | 5,865,301 | |
Net cash provided by operating activities | | $ | 83,202,494 | |
| |
Cash Flows From Financing Activities | | | | |
Proceeds from Fund shares sold | | $ | 85,709,337 | |
Fund shares redeemed | | | (163,313,133 | ) |
Distributions paid, net of reinvestments | | | (3,188,448 | ) |
Proceeds from secured borrowings | | | 13,100,000 | |
Repayment of secured borrowings | | | (16,422,000 | ) |
Net cash used in financing activities | | $ | (84,114,244 | ) |
| |
Net decrease in cash | | $ | (911,750 | ) |
| |
Cash at beginning of period | | $ | 21,906,488 | |
| |
Cash at end of period | | $ | 20,994,738 | |
| |
Supplemental disclosure of cash flow information: | | | | |
Noncash financing activities not included herein consist of: | | | | |
Reinvestment of dividends and distributions | | $ | 14,205,576 | |
Cash paid for interest and fees | | | 398,546 | |
| | | | |
| | 15 | | See Notes to Financial Statements. |
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Class A | |
| | Six Months Ended July 31, 2013 (Unaudited) | | | Year Ended January 31, | |
| | | 2013 | | | 2012 | | | 2011 | | | 2010 | | | 2009 | |
Net asset value — Beginning of period | | $ | 8.830 | | | $ | 8.340 | | | $ | 7.410 | | | $ | 7.900 | | | $ | 6.440 | | | $ | 9.780 | |
| | | | | | |
Income (Loss) From Operations | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | $ | 0.213 | | | $ | 0.434 | | | $ | 0.491 | | | $ | 0.472 | | | $ | 0.488 | | | $ | 0.504 | |
Net realized and unrealized gain (loss) | | | (0.843 | ) | | | 0.481 | | | | 0.894 | | | | (0.479 | ) | | | 1.452 | | | | (3.351 | ) |
| | | | | | |
Total income (loss) from operations | | $ | (0.630 | ) | | $ | 0.915 | | | $ | 1.385 | | | $ | (0.007 | ) | | $ | 1.940 | | | $ | (2.847 | ) |
| | | | | | |
Less Distributions | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | $ | (0.210 | ) | | $ | (0.425 | ) | | $ | (0.455 | ) | | $ | (0.483 | ) | | $ | (0.480 | ) | | $ | (0.493 | ) |
| | | | | | |
Total distributions | | $ | (0.210 | ) | | $ | (0.425 | ) | | $ | (0.455 | ) | | $ | (0.483 | ) | | $ | (0.480 | ) | | $ | (0.493 | ) |
| | | | | | |
Net asset value — End of period | | $ | 7.990 | | | $ | 8.830 | | | $ | 8.340 | | | $ | 7.410 | | | $ | 7.900 | | | $ | 6.440 | |
| | | | | | |
Total Return(2) | | | (7.26 | )%(3) | | | 11.23 | % | | | 19.34 | % | | | (0.35 | )% | | | 31.04 | % | | | (29.94 | )% |
| | | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | $ | 341,178 | | | $ | 411,671 | | | $ | 376,496 | | | $ | 361,171 | | | $ | 481,346 | | | $ | 407,816 | |
Ratios (as a percentage of average daily net assets): | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses excluding interest and fees | | | 0.86 | %(4) | | | 0.86 | % | | | 0.93 | % | | | 0.99 | % | | | 1.00 | % | | | 0.97 | % |
Interest and fee expense(5) | | | 0.11 | %(4) | | | 0.10 | % | | | 0.11 | % | | | 0.12 | % | | | 0.11 | % | | | 0.35 | % |
Total expenses before custodian fee reduction | | | 0.97 | %(4) | | | 0.96 | % | | | 1.04 | % | | | 1.11 | % | | | 1.11 | % | | | 1.32 | % |
Expenses after custodian fee reduction excluding interest and fees | | | 0.86 | %(4) | | | 0.86 | % | | | 0.93 | % | | | 0.99 | % | | | 1.00 | % | | | 0.96 | % |
Net investment income | | | 4.99 | %(4) | | | 5.05 | % | | | 6.35 | % | | | 5.90 | % | | | 6.72 | % | | | 5.97 | % |
Portfolio Turnover | | | 17 | %(3) | | | 22 | % | | | 19 | % | | | 12 | % | | | 22 | % | | | 35 | % |
(1) | Computed using average shares outstanding. |
(2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges. |
(5) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1I). |
| | | | |
| | 16 | | See Notes to Financial Statements. |
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Financial Highlights — continued
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Class B | |
| | Six Months Ended July 31, 2013 (Unaudited) | | | Year Ended January 31, | |
| | | 2013 | | | 2012 | | | 2011 | | | 2010 | | | 2009 | |
Net asset value — Beginning of period | | $ | 8.800 | | | $ | 8.310 | | | $ | 7.390 | | | $ | 7.880 | | | $ | 6.430 | | | $ | 9.750 | |
| | | | | | |
Income (Loss) From Operations | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | $ | 0.181 | | | $ | 0.370 | | | $ | 0.433 | | | $ | 0.410 | | | $ | 0.432 | | | $ | 0.440 | |
Net realized and unrealized gain (loss) | | | (0.844 | ) | | | 0.479 | | | | 0.883 | | | | (0.477 | ) | | | 1.448 | | | | (3.336 | ) |
| | | | | | |
Total income (loss) from operations | | $ | (0.663 | ) | | $ | 0.849 | | | $ | 1.316 | | | $ | (0.067 | ) | | $ | 1.880 | | | $ | (2.896 | ) |
| | | | | | |
Less Distributions | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | $ | (0.177 | ) | | $ | (0.359 | ) | | $ | (0.396 | ) | | $ | (0.423 | ) | | $ | (0.430 | ) | | $ | (0.424 | ) |
| | | | | | |
Total distributions | | $ | (0.177 | ) | | $ | (0.359 | ) | | $ | (0.396 | ) | | $ | (0.423 | ) | | $ | (0.430 | ) | | $ | (0.424 | ) |
| | | | | | |
Net asset value — End of period | | $ | 7.960 | | | $ | 8.800 | | | $ | 8.310 | | | $ | 7.390 | | | $ | 7.880 | | | $ | 6.430 | |
| | | | | | |
Total Return(2) | | | (7.64 | )%(3) | | | 10.42 | % | | | 18.35 | % | | | (1.09 | )% | | | 30.02 | % | | | (30.42 | )% |
| | | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | $ | 9,896 | | | $ | 14,919 | | | $ | 22,973 | | | $ | 31,380 | | | $ | 46,335 | | | $ | 46,123 | |
Ratios (as a percentage of average daily net assets): | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses excluding interest and fees | | | 1.61 | %(4) | | | 1.62 | % | | | 1.68 | % | | | 1.74 | % | | | 1.76 | % | | | 1.72 | % |
Interest and fee expense(5) | | | 0.11 | %(4) | | | 0.10 | % | | | 0.11 | % | | | 0.12 | % | | | 0.11 | % | | | 0.35 | % |
Total expenses before custodian fee reduction | | | 1.72 | %(4) | | | 1.72 | % | | | 1.79 | % | | | 1.86 | % | | | 1.87 | % | | | 2.07 | % |
Expenses after custodian fee reduction excluding interest and fees | | | 1.61 | %(4) | | | 1.62 | % | | | 1.68 | % | | | 1.74 | % | | | 1.76 | % | | | 1.71 | % |
Net investment income | | | 4.25 | %(4) | | | 4.34 | % | | | 5.64 | % | | | 5.14 | % | | | 5.99 | % | | | 5.23 | % |
Portfolio Turnover | | | 17 | %(3) | | | 22 | % | | | 19 | % | | | 12 | % | | | 22 | % | | | 35 | % |
(1) | Computed using average shares outstanding. |
(2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges. |
(5) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1I). |
| | | | |
| | 17 | | See Notes to Financial Statements. |
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Financial Highlights — continued
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Class C | |
| | Six Months Ended July 31, 2013 (Unaudited) | | | Year Ended January 31, | |
| | | 2013 | | | 2012 | | | 2011 | | | 2010 | | | 2009 | |
Net asset value — Beginning of period | | $ | 8.170 | | | $ | 7.720 | | | $ | 6.860 | | | $ | 7.310 | | | $ | 5.970 | | | $ | 9.050 | |
| | | | | | |
Income (Loss) From Operations | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | $ | 0.168 | | | $ | 0.341 | | | $ | 0.400 | | | $ | 0.380 | | | $ | 0.401 | | | $ | 0.408 | |
Net realized and unrealized gain (loss) | | | (0.783 | ) | | | 0.442 | | | | 0.827 | | | | (0.437 | ) | | | 1.339 | | | | (3.095 | ) |
| | | | | | |
Total income (loss) from operations | | $ | (0.615 | ) | | $ | 0.783 | | | $ | 1.227 | | | $ | (0.057 | ) | | $ | 1.740 | | | $ | (2.687 | ) |
| | | | | | |
Less Distributions | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | $ | (0.165 | ) | | $ | (0.333 | ) | | $ | (0.367 | ) | | $ | (0.393 | ) | | $ | (0.400 | ) | | $ | (0.393 | ) |
| | | | | | |
Total distributions | | $ | (0.165 | ) | | $ | (0.333 | ) | | $ | (0.367 | ) | | $ | (0.393 | ) | | $ | (0.400 | ) | | $ | (0.393 | ) |
| | | | | | |
Net asset value — End of period | | $ | 7.390 | | | $ | 8.170 | | | $ | 7.720 | | | $ | 6.860 | | | $ | 7.310 | | | $ | 5.970 | |
| | | | | | |
Total Return(2) | | | (7.64 | )%(3) | | | 10.35 | % | | | 18.44 | % | | | (1.02 | )% | | | 29.92 | % | | | (30.40 | )% |
| | | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | $ | 128,687 | | | $ | 165,887 | | | $ | 146,788 | | | $ | 139,798 | | | $ | 162,425 | | | $ | 123,933 | |
Ratios (as a percentage of average daily net assets): | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses excluding interest and fees | | | 1.61 | %(4) | | | 1.61 | % | | | 1.68 | % | | | 1.73 | % | | | 1.75 | % | | | 1.72 | % |
Interest and fee expense(5) | | | 0.11 | %(4) | | | 0.10 | % | | | 0.11 | % | | | 0.12 | % | | | 0.11 | % | | | 0.35 | % |
Total expenses before custodian fee reduction | | | 1.72 | %(4) | | | 1.71 | % | | | 1.79 | % | | | 1.85 | % | | | 1.86 | % | | | 2.07 | % |
Expenses after custodian fee reduction excluding interest and fees | | | 1.61 | %(4) | | | 1.61 | % | | | 1.68 | % | | | 1.73 | % | | | 1.75 | % | | | 1.71 | % |
Net investment income | | | 4.24 | %(4) | | | 4.30 | % | | | 5.60 | % | | | 5.14 | % | | | 5.95 | % | | | 5.23 | % |
Portfolio Turnover | | | 17 | %(3) | | | 22 | % | | | 19 | % | | | 12 | % | | | 22 | % | | | 35 | % |
(1) | Computed using average shares outstanding. |
(2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges. |
(5) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1I). |
| | | | |
| | 18 | | See Notes to Financial Statements. |
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Financial Highlights — continued
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Class I | |
| | Six Months Ended July 31, 2013 (Unaudited) | | | Year Ended January 31, | |
| | | 2013 | | | 2012 | | | 2011 | | | 2010 | | | 2009 | |
Net asset value — Beginning of period | | $ | 8.840 | | | $ | 8.350 | | | $ | 7.420 | | | $ | 7.910 | | | $ | 6.440 | | | $ | 9.780 | |
| | | | | | |
Income (Loss) From Operations | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | $ | 0.225 | | | $ | 0.455 | | | $ | 0.504 | | | $ | 0.486 | | | $ | 0.505 | | | $ | 0.520 | |
Net realized and unrealized gain (loss) | | | (0.844 | ) | | | 0.482 | | | | 0.900 | | | | (0.474 | ) | | | 1.461 | | | | (3.345 | ) |
| | | | | | |
Total income (loss) from operations | | $ | (0.619 | ) | | $ | 0.937 | | | $ | 1.404 | | | $ | 0.012 | | | $ | 1.966 | | | $ | (2.825 | ) |
| | | | | | |
Less Distributions | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | $ | (0.221 | ) | | $ | (0.447 | ) | | $ | (0.474 | ) | | $ | (0.502 | ) | | $ | (0.496 | ) | | $ | (0.515 | ) |
| | | | | | |
Total distributions | | $ | (0.221 | ) | | $ | (0.447 | ) | | $ | (0.474 | ) | | $ | (0.502 | ) | | $ | (0.496 | ) | | $ | (0.515 | ) |
| | | | | | |
Net asset value — End of period | | $ | 8.000 | | | $ | 8.840 | | | $ | 8.350 | | | $ | 7.420 | | | $ | 7.910 | | | $ | 6.440 | |
| | | | | | |
Total Return(2) | | | (7.14 | )%(3) | | | 11.50 | % | | | 19.60 | % | | | (0.12 | )% | | | 31.48 | % | | | (29.75 | )% |
| | | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | $ | 138,409 | | | $ | 161,066 | | | $ | 124,627 | | | $ | 64,318 | | | $ | 27,780 | | | $ | 3,442 | |
Ratios (as a percentage of average daily net assets): | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses excluding interest and fees | | | 0.61 | %(4) | | | 0.61 | % | | | 0.68 | % | | | 0.73 | % | | | 0.74 | % | | | 0.71 | % |
Interest and fee expense(5) | | | 0.11 | %(4) | | | 0.10 | % | | | 0.11 | % | | | 0.12 | % | | | 0.11 | % | | | 0.35 | % |
Total expenses before custodian fee reduction | | | 0.72 | %(4) | | | 0.71 | % | | | 0.79 | % | | | 0.85 | % | | | 0.85 | % | | | 1.06 | % |
Expenses after custodian fee reduction excluding interest and fees | | | 0.61 | %(4) | | | 0.61 | % | | | 0.68 | % | | | 0.73 | % | | | 0.74 | % | | | 0.70 | % |
Net investment income | | | 5.25 | %(4) | | | 5.29 | % | | | 6.49 | % | | | 6.10 | % | | | 6.66 | % | | | 6.57 | % |
Portfolio Turnover | | | 17 | %(3) | | | 22 | % | | | 19 | % | | | 12 | % | | | 22 | % | | | 35 | % |
(1) | Computed using average shares outstanding. |
(2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. |
(5) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1I). |
| | | | |
| | 19 | | See Notes to Financial Statements. |
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Notes to Financial Statements (Unaudited)
1 Significant Accounting Policies
Eaton Vance High Yield Municipal Income Fund (the Fund) is a diversified series of Eaton Vance Municipals Trust II (the Trust). The Trust is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. The Fund seeks to provide high current income exempt from regular federal income tax. The Fund primarily invests in high yield municipal obligations with maturities of ten years or more. The Fund offers four classes of shares. Class A shares are generally sold subject to a sales charge imposed at time of purchase. Class B and Class C shares are sold at net asset value and are generally subject to a contingent deferred sales charge (see Note 5). Class I shares are sold at net asset value and are not subject to a sales charge. Class B shares automatically convert to Class A shares eight years after their purchase as described in the Fund’s prospectus. Beginning January 1, 2012, Class B shares are only available for purchase upon exchange from another Eaton Vance fund or through reinvestment of distributions. Each class represents a pro-rata interest in the Fund, but votes separately on class-specific matters and (as noted below) is subject to different expenses. Realized and unrealized gains and losses are allocated daily to each class of shares based on the relative net assets of each class to the total net assets of the Fund. Net investment income, other than class-specific expenses, is allocated daily to each class of shares based upon the ratio of the value of each class’s paid shares to the total value of all paid shares. Each class of shares differs in its distribution plan and certain other class-specific expenses.
The following is a summary of significant accounting policies of the Fund. The policies are in conformity with accounting principles generally accepted in the United States of America.
A Investment Valuation — The following methodologies are used to determine the market value or fair value of investments.
Debt Obligations. Debt obligations (including short-term obligations with a remaining maturity of more than sixty days) are generally valued on the basis of valuations provided by third party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, prices or yields of securities with similar characteristics, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Short-term obligations purchased with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates market value.
Derivatives. Financial futures contracts are valued at the closing settlement price established by the board of trade or exchange on which they are traded.
Fair Valuation. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the Fund in a manner that fairly reflects the security’s value, or the amount that the Fund might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable entities, quotations or relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the entity’s financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
B Investment Transactions and Related Income — Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount.
C Federal Taxes — The Fund’s policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its taxable, if any, and tax-exempt net investment income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary. The Fund intends to satisfy conditions which will enable it to designate distributions from the interest income generated by its investments in non-taxable municipal securities, which are exempt from regular federal income tax when received by the Fund, 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 January 31, 2013, the Fund, for federal income tax purposes, had a capital loss carryforward of $195,870,739 and deferred capital losses of $48,252,392 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 Fund of any liability for federal income or excise tax. The capital loss carryforward will expire on January 31, 2014 ($6,453,293), January 31, 2016 ($14,863,328), January 31, 2017 ($49,195,524), January 31, 2018 ($115,791,581) and January 31, 2019 ($9,567,013). The deferred capital losses are treated as arising on the first day of the Fund’s next taxable year and are treated as realized prior to the utilization of the capital loss carryforward.
As of July 31, 2013, the Fund had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. The Fund files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.
D Expenses — The majority of expenses of the Trust are directly identifiable to an individual fund. Expenses which are not readily identifiable to a specific fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the funds.
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Notes to Financial Statements (Unaudited) — continued
E Expense Reduction — State Street Bank and Trust Company (SSBT) serves as custodian of the Fund. Pursuant to the custodian agreement, SSBT receives a fee reduced by credits, which are determined based on the average daily cash balance the Fund maintains with SSBT. All credit balances, if any, used to reduce the Fund’s custodian fees are reported as a reduction of expenses in the Statement of Operations.
F 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.
G 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.
H Indemnifications — Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Fund. 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 Trust’s Declaration of Trust contains an express disclaimer of liability on the part of Fund shareholders and the By-laws provide that the Trust shall assume the defense on behalf of any Fund shareholders. Moreover, the By-laws also provide for indemnification out of Fund property of any shareholder held personally liable solely by reason of being or having been a shareholder for all loss or expense arising from such liability. Additionally, in the normal course of business, the Fund enters into agreements with service providers that may contain indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.
I Floating Rate Notes Issued in Conjunction with Securities Held — The Fund may invest in residual interest bonds, also referred to as inverse floating rate securities, whereby the Fund may sell a variable or fixed rate bond to a broker for cash. At the same time, the Fund buys a residual interest in the assets and cash flows of a Special-Purpose Vehicle (the SPV), (which is generally organized as a trust), set up by the broker. The broker deposits a bond into the SPV with the same CUSIP number as the bond sold to the broker by the Fund, and which may have been, but is not required to be, the bond purchased from the Fund (the Bond). The SPV also issues floating rate notes (Floating Rate Notes) which are sold to third-parties. The residual interest bond held by the Fund gives the Fund the right (1) to cause the holders of the Floating Rate Notes to generally tender their notes at par, and (2) to have the broker transfer the Bond held by the SPV to the Fund, thereby terminating the SPV. Should the Fund exercise such right, it would generally pay the broker the par amount due on the Floating Rate Notes and exchange the residual interest bond for the underlying Bond. Pursuant to generally accepted accounting principles for transfers and servicing of financial assets and extinguishment of liabilities, the Fund accounts for the transaction described above as a secured borrowing by including the 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. Accordingly, the fair value of the payable for floating rate notes issued approximates its carrying value. If measured at fair value, the payable for floating rate notes would have been considered as Level 2 in the fair value hierarchy (see Note 11) at July 31, 2013. Interest expense related to the Fund’s liability with respect to Floating Rate Notes is recorded as incurred. The SPV may be terminated by the Fund, as noted above, or by the broker upon the occurrence of certain termination events as defined in the trust agreement, such as a downgrade in the credit quality of the underlying Bond, bankruptcy of or payment failure by the issuer of the underlying Bond, the inability to remarket Floating Rate Notes that have been tendered due to insufficient buyers in the market, or the failure by the SPV to obtain renewal of the liquidity agreement under which liquidity support is provided for the Floating Rate Notes up to one year. At July 31, 2013, the amount of the Fund’s Floating Rate Notes outstanding and the related collateral were $91,845,000 and $140,088,261, respectively. The range of interest rates on the Floating Rate Notes outstanding at July 31, 2013 was 0.06% to 0.11%. For the six months ended July 31, 2013, the Fund’s average Floating Rate Notes outstanding and the average interest rate including fees were $99,276,646 and 0.78% (annualized), respectively.
The Fund may enter into shortfall and forbearance agreements with the broker by which the Fund agrees to reimburse the broker, in certain circumstances, for the difference between the liquidation value of the Bond held by the SPV and the liquidation value of the Floating Rate Notes, as well as any shortfalls in interest cash flows. The Fund had no shortfalls as of July 31, 2013.
The Fund may also purchase residual interest bonds from brokers in a secondary market transaction without first owning the underlying bond. Such transactions are not required to be treated as secured borrowings. Shortfall agreements, if any, related to residual interest bonds purchased in a secondary market transaction are disclosed in the Portfolio of Investments.
The Fund’s investment policies and restrictions expressly permit investments in residual interest bonds. Such bonds typically offer the potential for yields exceeding the yields available on fixed rate bonds with comparable credit quality and maturity. These securities tend to underperform the market for fixed rate bonds in a rising long-term interest rate environment, but tend to outperform the market for fixed rate bonds when long-term interest rates decline. The value and income of residual interest bonds are generally more volatile than that of a fixed rate bond. The Fund’s investment policies do not allow the Fund to borrow money except as permitted by the 1940 Act. Management believes that the Fund’s 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 Fund’s 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 Fund’s restrictions apply. Residual interest bonds held by the Fund are securities exempt from registration under Rule 144A of the Securities Act of 1933.
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Notes to Financial Statements (Unaudited) — continued
J Financial Futures Contracts — Upon entering into a financial futures contract, the Fund is required to deposit with the broker, either in cash or securities, an amount equal to a certain percentage of the contract amount (initial margin). Subsequent payments, known as variation margin, are made or received by the Fund each business day, depending on the daily fluctuations in the value of the underlying security, and are recorded as unrealized gains or losses by the Fund. Gains (losses) are realized upon the expiration or closing of the financial futures contracts. Should market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. Futures contracts have minimal counterparty risk as they are exchange traded and the clearinghouse for the exchange is substituted as the counterparty, guaranteeing counterparty performance.
K When-Issued Securities and Delayed Delivery Transactions — The Fund 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 Fund 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 Fund is the amount included in the Fund’s Statement of Assets and Liabilities and represents the unrestricted cash on hand at its custodian and does not include any short-term investments.
M Interim Financial Statements — The interim financial statements relating to July 31, 2013 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Fund’s management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.
2 Distributions to Shareholders
The net investment income of the Fund is determined daily and substantially all of the net investment income so determined is declared as a dividend to shareholders of record at the time of declaration. Distributions are declared separately for each class of shares. Distributions are paid monthly. Distributions of realized capital gains (reduced by available capital loss carryforwards) are made at least annually. Shareholders may reinvest income and capital gain distributions in additional shares of the same class of the Fund at the net asset value as of the reinvestment date or, at the election of the shareholder, receive distributions in cash. The Fund 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.
3 Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Boston Management and Research (BMR), a subsidiary of Eaton Vance Management (EVM), as compensation for management and investment advisory services rendered to the Fund. Pursuant to the investment advisory agreement and subsequent fee reduction agreements between the Fund and BMR, the fee is based upon a percentage of average daily net assets plus a percentage of gross income (i.e., income other than gains from the sale of securities) as presented in the following table and is payable monthly.
| | | | | | | | |
Daily Net Assets | | Annual Asset Rate | | | Daily Income Rate | |
| | |
Up to $500 million | | | 0.3150 | % | | | 3.1500 | % |
$500 million but less than $750 million | | | 0.2925 | | | | 2.9250 | |
$750 million but less than $1 billion | | | 0.2700 | | | | 2.9250 | |
$1 billion but less than $1.5 billion | | | 0.2700 | | | | 2.7000 | |
On average daily net assets of $1.5 billion or more, the rates are further reduced. The fee reductions cannot be terminated without the consent of a majority of the Trustees and a majority of shareholders. For the six months ended July 31, 2013, the investment adviser fee amounted to $1,750,569 or 0.49% (annualized) of the Fund’s average daily net assets. EVM serves as the administrator of the Fund, but receives no compensation. EVM serves as the sub-transfer agent of the Fund and receives from the transfer agent an aggregate fee based upon the actual expenses incurred by EVM in the performance of these services. For the six months ended July 31, 2013, EVM earned $5,562 in sub-transfer agent fees. The Fund was informed that Eaton Vance Distributors, Inc. (EVD), an affiliate of EVM and the Fund’s principal underwriter, received $27,094 as its portion of the sales charge on sales of Class A shares for the six months ended July 31, 2013. EVD also received distribution and service fees from Class A, Class B and Class C shares (see Note 4) and contingent deferred sales charges (see Note 5).
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Notes to Financial Statements (Unaudited) — continued
Trustees and officers of the Fund who are members of EVM’s or BMR’s organizations receive remuneration for their services to the Fund out of the investment adviser fee. Trustees of the Fund who are not affiliated with the investment adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the six months ended July 31, 2013, no significant amounts have been deferred. Certain officers and Trustees of the Fund are officers of the above organizations.
4 Distribution Plans
The Fund has in effect a distribution plan for Class A shares (Class A Plan) pursuant to Rule 12b-1 under the 1940 Act. Pursuant to the Class A Plan, the Fund pays EVD a distribution and service fee of 0.25% per annum of its average daily net assets attributable to Class A shares for distribution services and facilities provided to the Fund by EVD, as well as for personal services and/or the maintenance of shareholder accounts. Distribution and service fees paid or accrued to EVD for the six months ended July 31, 2013 amounted to $499,135 for Class A shares.
The Fund also has in effect distribution plans for Class B shares (Class B Plan) and Class C shares (Class C Plan) pursuant to Rule 12b-1 under the 1940 Act. Pursuant to the Class B and Class C Plans, the Fund pays EVD amounts equal to 0.75% per annum of its average daily net assets attributable to Class B and Class C shares for providing ongoing distribution services and facilities to the Fund. For the six months ended July 31, 2013, the Fund paid or accrued to EVD $47,295 and $580,926 for Class B and Class C shares, respectively.
Pursuant to the Class B and Class C Plans, the Fund also makes payments of service fees to EVD, financial intermediaries and other persons in amounts equal to 0.25% per annum of its average daily net assets attributable to that class. Service fees paid or accrued are for personal services and/or the maintenance of shareholder accounts. They are separate and distinct from the sales commissions and distribution fees payable to EVD. Service fees paid or accrued for the six months ended July 31, 2013 amounted to $15,765 and $193,642 for Class B and Class C shares, respectively.
Distribution and service fees are subject to the limitations contained in the Financial Industry Regulatory Authority’s NASD Conduct Rule 2830(d) and for Class B, are further limited to a 5% maximum sales charge as determined in accordance with such rule.
5 Contingent Deferred Sales Charges
A contingent deferred sales charge (CDSC) generally is imposed on redemptions of Class B shares made within six years of purchase and on redemptions of Class C shares made within one year of purchase. Class A shares may be subject to a 1% CDSC if redeemed within eighteen months of purchase (depending on the circumstances of purchase). Generally, the CDSC is based upon the lower of the net asset value at date of redemption or date of purchase. No charge is levied on shares acquired by reinvestment of dividends or capital gain distributions. The CDSC for Class B shares is imposed at declining rates that begin at 5% in the case of redemptions in the first and second year after purchase, declining one percentage point each subsequent year. Class C shares are subject to a 1% CDSC if redeemed within one year of purchase. No CDSC is levied on shares which have been sold to EVM or its affiliates or to their respective employees or clients and may be waived under certain other limited conditions. For the six months ended July 31, 2013, the Fund was informed that EVD received approximately $45,000, $5,000 and $7,000 of CDSCs paid by Class A, Class B and Class C shareholders, respectively.
6 Purchases and Sales of Investments
Purchases and sales of investments, other than short-term obligations, aggregated $135,951,556 and $190,495,174, respectively, for the six months ended July 31, 2013.
7 Shares of Beneficial Interest
The Fund’s Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Such shares may be issued in a number of different series (such as the Fund) and classes. Transactions in Fund shares were as follows:
| | | | | | | | |
Class A | | Six Months Ended July 31, 2013 (Unaudited) | | | Year Ended January 31, 2013 | |
| | |
Sales | | | 5,545,814 | | | | 14,609,849 | |
Issued to shareholders electing to receive payments of distributions in Fund shares | | | 969,124 | | | | 1,830,088 | |
Redemptions | | | (10,664,772 | ) | | | (15,715,863 | ) |
Exchange from Class B shares | | | 234,330 | | | | 749,767 | |
| | |
Net increase (decrease) | | | (3,915,504 | ) | | | 1,473,841 | |
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Notes to Financial Statements (Unaudited) — continued
| | | | | | | | |
Class B | | Six Months Ended July 31, 2013 (Unaudited) | | | Year Ended January 31, 2013 | |
| | |
Sales | | | 17,121 | | | | 44,726 | |
Issued to shareholders electing to receive payments of distributions in Fund shares | | | 24,766 | | | | 70,072 | |
Redemptions | | | (259,111 | ) | | | (431,682 | ) |
Exchange to Class A shares | | | (235,055 | ) | | | (751,874 | ) |
| | |
Net decrease | | | (452,279 | ) | | | (1,068,758 | ) |
| | |
| | | | | | | | |
Class C | | Six Months Ended July 31, 2013 (Unaudited) | | | Year Ended January 31, 2013 | |
| | |
Sales | | | 1,011,813 | | | | 4,162,312 | |
Issued to shareholders electing to receive payments of distributions in Fund shares | | | 310,313 | | | | 583,536 | |
Redemptions | | | (4,217,338 | ) | | | (3,466,419 | ) |
| | |
Net increase (decrease) | | | (2,895,212 | ) | | | 1,279,429 | |
| | |
| | | | | | | | |
Class I | | Six Months Ended July 31, 2013 (Unaudited) | | | Year Ended January 31, 2013 | |
| | |
Sales | | | 3,355,425 | | | | 10,095,198 | |
Issued to shareholders electing to receive payments of distributions in Fund shares | | | 382,910 | | | | 703,073 | |
Redemptions | | | (4,653,324 | ) | | | (7,505,361 | ) |
| | |
Net increase (decrease) | | | (914,989 | ) | | | 3,292,910 | |
8 Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of investments of the Fund at July 31, 2013, as determined on a federal income tax basis, were as follows:
| | | | |
| |
Aggregate cost | | $ | 627,020,618 | |
| |
Gross unrealized appreciation | | $ | 29,688,700 | |
Gross unrealized depreciation | | | (43,698,617 | ) |
| |
Net unrealized depreciation | | $ | (14,009,917 | ) |
9 Line of Credit
The Fund participates with other portfolios and funds managed by EVM and its affiliates in a $600 million unsecured line of credit agreement with a group of banks. Borrowings are made by the Fund solely to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Interest is charged to the Fund based on its borrowings at an amount above either the Eurodollar rate or Federal Funds rate. In addition, a fee computed at an annual rate of 0.08% on the daily unused portion of the line of credit is allocated among the participating portfolios and funds at the end of each quarter. Because the line of credit is not available exclusively to the Fund, it may be unable to borrow some or all of its requested amounts at any particular time. The Fund did not have any significant borrowings or allocated fees during the six months ended July 31, 2013.
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Notes to Financial Statements (Unaudited) — continued
10 Financial Instruments
The Fund 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 Fund has in particular classes of financial instruments and do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered.
A summary of obligations under these financial instruments at July 31, 2013 is as follows:
| | | | | | | | | | | | | | | | |
Futures Contracts | | | | | | | | | | | |
Expiration Month/Year | | Contracts | | Position | | Aggregate Cost | | | Value | | | Net Unrealized Appreciation | |
| | | | | |
9/13 | | 225 U.S. 10-Year Treasury Note | | Short | | $ | (29,337,479 | ) | | $ | (28,448,438 | ) | | $ | 889,041 | |
9/13 | | 168 U.S. Long Treasury Bond | | Short | | | (23,627,318 | ) | | | (22,522,500 | ) | | | 1,104,818 | |
| | | | | |
| | | | | | | | | | | | | | $ | 1,993,859 | |
At July 31, 2013, the Fund had sufficient cash and/or securities to cover commitments under these contracts.
The Fund is subject to interest rate risk in the normal course of pursuing its investment objective. Because the Fund holds fixed-rate bonds, the value of these bonds may decrease if interest rates rise. The Fund purchases and sells U.S. Treasury futures contracts to hedge against changes in interest rates.
The fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) and whose primary underlying risk exposure is interest rate risk at July 31, 2013 was as follows:
| | | | | | | | |
| | Fair Value | |
| | Asset Derivative | | | Liability Derivative | |
Futures Contracts | | $ | 1,993,859 | (1) | | $ | — | |
| | |
Total | | $ | 1,993,859 | | | $ | — | |
(1) | Amount represents cumulative unrealized appreciation on futures contracts in the Futures Contracts table above. Only the current day’s variation margin on open futures contracts is reported within the Statement of Assets and Liabilities as Receivable or Payable for variation margin, as applicable. |
The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations and whose primary underlying risk exposure is interest rate risk for the six months ended July 31, 2013 was as follows:
| | | | | | | | |
| | Realized Gain (Loss) on Derivatives Recognized in Income | | | Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | |
| | |
Futures Contracts | | $ | 1,428,523 | (1) | | $ | (329,792 | )(2) |
(1) | Statement of Operations location: Net realized gain (loss) – Financial futures contracts. |
(2) | Statement of Operations location: Change in unrealized appreciation (depreciation) – Financial futures contracts. |
The average notional amount of futures contracts outstanding during the six months ended July 31, 2013, which is indicative of the volume of this derivative type, was approximately $47,900,000.
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Notes to Financial Statements (Unaudited) — continued
11 Fair Value Measurements
Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
Ÿ | | Level 1 – quoted prices in active markets for identical investments |
Ÿ | | Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
Ÿ | | Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments) |
In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
At July 31, 2013, the hierarchy of inputs used in valuing the Fund’s investments and open derivative instruments, which are carried at value, were as follows:
| | | | | | | | | | | | | | | | |
Asset Description | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| | | | |
Tax-Exempt Municipal Securities | | $ | — | | | $ | 694,673,662 | | | $ | — | | | $ | 694,673,662 | |
Taxable Municipal Securities | | | — | | | | 7,632,039 | | | | — | | | | 7,632,039 | |
| | | | |
Total Investments | | $ | — | | | $ | 702,305,701 | | | $ | — | | | $ | 702,305,701 | |
| | | | |
Futures Contracts | | $ | 1,993,859 | | | $ | — | | | $ | — | | | $ | 1,993,859 | |
| | | | |
Total | | $ | 1,993,859 | | | $ | 702,305,701 | | | $ | — | | | $ | 704,299,560 | |
The Fund held no investments or other financial instruments as of January 31, 2013 whose fair value was determined using Level 3 inputs. At July 31, 2013, there were no investments transferred between Level 1 and Level 2 during the six months then ended.
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Board of Trustees’ Contract Approval
Overview of the Contract Review Process
The Investment Company Act of 1940, as amended (the “1940 Act”), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuation is approved at least annually by the fund’s 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 23, 2013, 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 by each adviser to the Eaton Vance Funds (including information specifically requested by the Board) for a series of meetings of the Contract Review Committee held between February and April 2013, as well as information considered during prior meetings of the committee. Such information included, among other things, the following:
Information about Fees, Performance and Expenses
Ÿ | | An independent report comparing the advisory and related fees paid by each fund with fees paid by comparable funds; |
Ÿ | | An independent report comparing each fund’s total expense ratio and its components to comparable funds; |
Ÿ | | An independent report comparing the investment performance of each fund (including, where relevant, yield data, Sharpe ratios and information ratios) to the investment performance of comparable funds over various time periods; |
Ÿ | | Data regarding investment performance in comparison to benchmark indices and customized peer groups, in each case as approved by the Board with respect to the funds; |
Ÿ | | For each fund, comparative information concerning the fees charged and the services provided by each adviser in managing other accounts (including mutual funds, other collective investment funds and institutional accounts) using investment strategies and techniques similar to those used in managing such fund; |
Ÿ | | Profitability analyses for each adviser with respect to each fund; |
Information about Portfolio Management and Trading
Ÿ | | 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; |
Ÿ | | Information about 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 client commission arrangements and the fund’s policies with respect to “soft dollar” arrangements; |
Ÿ | | Data relating to portfolio turnover rates of each fund; |
Ÿ | | 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; |
Ÿ | | Information about each adviser’s processes for monitoring best execution of portfolio transactions, and other policies and practices of each adviser with respect to trading; |
Information about each Adviser
Ÿ | | Reports detailing the financial results and condition of each adviser; |
Ÿ | | 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; |
Ÿ | | 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; |
Ÿ | | Copies of or descriptions of each adviser’s policies and procedures relating to proxy voting, the handling of corporate actions and class actions; |
Ÿ | | 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; |
Ÿ | | Descriptions of the business continuity and disaster recovery plans of each adviser and its affiliates; |
Ÿ | | A description of Eaton Vance Management’s procedures for overseeing third party advisers and sub-advisers, including with respect to regulatory and compliance issues, investment management and other matters; |
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Board of Trustees’ Contract Approval — continued
Other Relevant Information
Ÿ | | Information concerning the nature, cost and character of the administrative and other non-investment management services provided by Eaton Vance Management and its affiliates; |
Ÿ | | Information concerning management of the relationship with the custodian, subcustodians and fund accountants by each adviser or the funds’ administrator; and |
Ÿ | | The terms of each advisory agreement. |
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, 2013, with respect to one or more funds, the Board met eight 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 eight, twenty-one, five, nine and thirteen times respectively. At such meetings, the Trustees participated in investment and performance reviews with the portfolio managers and other investment professionals of each adviser relating to each fund. The Board and its Committees considered the investment and trading strategies used in pursuing each fund’s investment objective, including, where relevant, the use of derivative instruments, as well as processes for monitoring best execution of portfolio transactions and risk management techniques. The Board and its Committees also evaluated issues pertaining to industry and regulatory developments, compliance procedures, fund governance and other issues with respect to the funds, and received and participated in reports and presentations provided by Eaton Vance Management and other fund advisers with respect to such matters.
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 fund’s 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 continuation of the investment advisory agreement of Eaton Vance High Yield Municipal Income Fund (the “Fund”) with Boston Management and Research (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 Adviser’s 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 considered, 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 Adviser’s 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 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, including the ability, in many cases, to exchange an investment among different funds without incurring additional sales charges.
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Board of Trustees’ Contract Approval — continued
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.
Fund Performance
The Board compared the Fund’s 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, 2012 for the Fund. The Board concluded that the performance of the Fund was satisfactory.
Management Fees and Expenses
The Board reviewed contractual investment advisory fee rates payable by the Fund (referred to as “management fees”). As part of its review, the Board considered the management fees and the Fund’s total expense ratio for the year ended September 30, 2012, as compared to a group of similarly managed funds selected by an independent data provider. The Board also considered factors that had an impact on Fund expense ratios, as identified by management in response to inquiries from the Contract Review Committee, as well as actions taken by management in recent years to reduce expenses at the Eaton Vance fund complex level, including the negotiation of reduced fees for transfer agency and custody services.
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 without regard to revenue sharing or other payments by the Adviser and its affiliates to third parties in respect of distribution services. The Board also considered other direct or indirect benefits received by the Adviser and its affiliates in connection with their relationships 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 reviewed data summarizing the increases and decreases in the assets of the Fund and of all Eaton Vance Funds as a group over various time periods, and evaluated the extent to which the total expense ratio of the Fund and the profitability of the Adviser and its affiliates may have been affected by such increases or decreases. Based upon the foregoing, the Board concluded that the Fund currently shares in the benefits from economies of scale. The Board also concluded that, assuming reasonably foreseeable increases in the assets of the Fund, the structure of the advisory fee, which includes breakpoints at several asset levels, will allow the Fund to continue to benefit from economies of scale in the future.
Eaton Vance
High Yield Municipal Income Fund
July 31, 2013
Officers and Trustees
Officers of Eaton Vance High Yield Municipal Income Fund
Cynthia J. Clemson
President
Payson F. Swaffield
Vice President
Maureen A. Gemma
Vice President, Secretary and
Chief Legal Officer
James F. Kirchner
Treasurer
Paul M. O’Neil
Chief Compliance Officer
Trustees of Eaton Vance High Yield Municipal Income Fund
Ralph F. Verni
Chairman
Scott E. Eston
Benjamin C. Esty
Thomas E. Faust Jr.*
Allen R. Freedman
William H. Park
Ronald A. Pearlman
Helen Frame Peters
Lynn A. Stout
Harriett Tee Taggart
Eaton Vance Funds
IMPORTANT NOTICES
Privacy. The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy (“Privacy Policy”) with respect to nonpublic personal information about its customers:
Ÿ | | Only such information received from you, through application forms or otherwise, and information about your Eaton Vance fund transactions will be collected. This may include information such as name, address, social security number, tax status, account balances and transactions. |
Ÿ | | None of such information about you (or former customers) will be disclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to service your account). In the normal course of servicing a customer’s account, Eaton Vance may share information with unaffiliated third parties that perform various required services such as transfer agents, custodians and broker-dealers. |
Ÿ | | Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information. |
Ÿ | | We reserve the right to change our Privacy Policy at any time upon proper notification to you. Customers may want to review our Privacy Policy periodically for changes by accessing the link on our homepage: www.eatonvance.com. |
Our pledge of privacy applies to the following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance Investment Counsel, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management’s Real Estate Investment Group and Boston Management and Research. In addition, our Privacy Policy applies only to those Eaton Vance customers who are individuals and who have a direct relationship with us. If a customer’s account (i.e., fund shares) is held in the name of a third-party financial advisor/broker-dealer, it is likely that only such advisor’s privacy policies apply to the customer. This notice supersedes all previously issued privacy disclosures. For more information about Eaton Vance’s Privacy Policy, please call 1-800-262-1122.
Delivery of Shareholder Documents. The Securities and Exchange Commission (SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called “householding” and it helps eliminate duplicate mailings to shareholders. Eaton Vance, or your financial advisor, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial advisor, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial advisor. Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial advisor.
Portfolio Holdings. Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) will file a schedule of portfolio holdings on Form N-Q with the SEC for the first and third quarters of each fiscal year. The Form N-Q will be available on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SEC’s website at www.sec.gov. Form N-Q may also be reviewed and copied at the SEC’s public reference room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the public reference room).
Proxy Voting. From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds’ and Portfolios’ Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge, upon request, by calling 1-800-262-1122 and by accessing the SEC’s website at www.sec.gov.
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Investment Adviser
Boston Management and Research
Two International Place
Boston, MA 02110
Administrator
Eaton Vance Management
Two International Place
Boston, MA 02110
Principal Underwriter*
Eaton Vance Distributors, Inc.
Two International Place
Boston, MA 02110
(617) 482-8260
Custodian
State Street Bank and Trust Company
200 Clarendon Street
Boston, MA 02116
Transfer Agent
BNY Mellon Investment Servicing (US) Inc.
Attn: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02940-9653
(800) 262-1122
Fund Offices
Two International Place
Boston, MA 02110
* | FINRA BrokerCheck. Investors may check the background of their Investment Professional by contacting the Financial Industry Regulatory Authority (FINRA). FINRA BrokerCheck is a free tool to help investors check the professional background of current and former FINRA-registered securities firms and brokers. FINRA BrokerCheck is available by calling 1-800-289-9999 and at www.FINRA.org. The FINRA BrokerCheck brochure describing this program is available to investors at www.FINRA.org. |
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Eaton Vance
Tax-Advantaged Bond Strategies Funds
Semiannual Report
July 31, 2013
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Commodity Futures Trading Commission Registration. Effective December 31, 2012, the Commodity Futures Trading Commission (“CFTC”) adopted certain regulatory changes that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a prescribed level of its assets in certain CFTC-regulated instruments (including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. Each Fund has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act and is not subject to the CFTC regulation. Because of its management of other strategies, each Fund’s adviser is registered with the CFTC as a commodity pool operator.
Fund shares are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.
This report must be preceded or accompanied by a current summary prospectus or prospectus. Before investing, investors should consider carefully the investment objective, risks, and charges and expenses of a mutual fund. This and other important information is contained in the summary prospectus and prospectus, which can be obtained from a financial advisor. Prospective investors should read the prospectus carefully before investing. For further information, please call 1-800-262-1122.
Semiannual Report July 31, 2013
Eaton Vance
Tax-Advantaged Bond Strategies Funds
Table of Contents
| | | | |
Performance and Fund Profile | | | | |
| |
| | | | |
Tax-Advantaged Bond Strategies Short Term Fund | | | 2 | |
Tax-Advantaged Bond Strategies Intermediate Term Fund | | | 3 | |
Tax-Advantaged Bond Strategies Long Term Fund | | | 4 | |
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| | | | |
| |
Endnotes and Additional Disclosures | | | 5 | |
| |
Fund Expenses | | | 6 | |
| |
Financial Statements | | | 8 | |
| |
Board of Trustees’ Contract Approval | | | 42 | |
| |
Officers and Trustees | | | 45 | |
| |
Important Notices | | | 46 | |
Eaton Vance
Tax-Advantaged Bond Strategies Short Term Fund
July 31, 2013
Performance1,2
Portfolio Managers James H. Evans, CFA, Brian C. Barney, CFA and Devin J. Cooch, CFA
| | | | | | | | | | | | | | | | | | | | | | | | |
% Average Annual Total Returns | | Class Inception Date | | | Performance Inception Date | | | Six Months | | | One Year | | | Five Years | | | Ten Years | |
Class A at NAV | | | 03/27/2009 | | | | 12/31/1998 | | | | –1.50 | % | | | –1.06 | % | | | 3.68 | % | | | 3.51 | % |
Class A with 2.25% Maximum Sales Charge | | | — | | | | — | | | | –3.76 | | | | –3.29 | | | | 3.20 | | | | 3.28 | |
Class C at NAV | | | 03/27/2009 | | | | 12/31/1998 | | | | –1.88 | | | | –1.83 | | | | 3.03 | | | | 3.19 | |
Class C with 1% Maximum Sales Charge | | | — | | | | — | | | | –2.86 | | | | –2.79 | | | | 3.03 | | | | 3.19 | |
Class I at NAV | | | 03/27/2009 | | | | 12/31/1998 | | | | –1.38 | | | | –0.91 | | | | 3.91 | | | | 3.63 | |
Barclays 5 Year Municipal Bond Index | | | — | | | | — | | | | –0.76 | % | | | 0.10 | % | | | 4.69 | % | | | 4.15 | % |
Barclays Municipal Managed Money 1-7 Year Bond Index | | | — | | | | — | | | | –0.83 | | | | –0.26 | | | | — | | | | — | |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
% After-Tax Returns with Maximum Sales Charge | | | Class Inception Date | | | Performance Inception Date | | | One Year | | | Five Years | | | Ten Years | |
Class A After Taxes on Distributions | | | | | | | 03/27/2009 | | | | 12/31/1998 | | | | –3.63 | % | | | — | | | | — | |
Class A After Taxes on Distributions and Sale of Fund Shares | | | | | | | — | | | | — | | | | –1.11 | | | | — | | | | — | |
Class C After Taxes on Distributions | | | | | | | 03/27/2009 | | | | 12/31/1998 | | | | –3.14 | | | | — | | | | — | |
Class C After Taxes on Distributions and Sale of Fund Shares | | | | | | | — | | | | — | | | | –1.03 | | | | — | | | | — | |
Class I After Taxes on Distributions | | | | | | | 03/27/2009 | | | | 12/31/1998 | | | | –1.26 | | | | — | | | | — | |
Class I After Taxes on Distributions and Sale of Fund Shares | | | | | | | — | | | | — | | | | 0.36 | | | | — | | | | — | |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
% Total Annual Operating Expense Ratios3 | | | | | | | | | Class A | | | Class C | | | Class I | |
| | | | | | | | | | | | | | | 0.88 | % | | | 1.63 | % | | | 0.63 | % |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
% Distribution Rates/Yields4 | | | | | | | | | | | Class A | | | Class C | | | Class I | |
Distribution Rate | | | | | | | | | | | | | | | 0.64 | % | | | — | | | | 0.89 | % |
SEC 30-day Yield | | | | | | | | | | | | | | | 0.53 | | | | –0.20 | | | | 0.78 | |
Fund Profile
Credit Quality (% of total investments)5
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See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than quoted. Returns are before taxes unless otherwise noted. For performance as of the most recent month end, please refer to www.eatonvance.com.
Eaton Vance
Tax-Advantaged Bond Strategies Intermediate Term Fund
July 31, 2013
Performance1,2
Portfolio Managers James H. Evans, CFA, Brian C. Barney, CFA and Christopher J. Harshman, CFA
| | | | | | | | | | | | | | | | | | | | | | | | |
% Average Annual Total Returns | | Class Inception Date | | | Performance Inception Date | | | Six Months | | | One Year | | | Five Years | | | Since Inception | |
Class A at NAV | | | 02/01/2010 | | | | 02/01/2010 | | | | –3.84 | % | | | –2.84 | % | | | — | | | | 5.44 | % |
Class A with 2.25% Maximum Sales Charge | | | — | | | | — | | | | –5.98 | | | | –4.99 | | | | — | | | | 4.76 | |
Class C at NAV | | | 02/01/2010 | | | | 02/01/2010 | | | | –4.20 | | | | –3.70 | | | | — | | | | 4.65 | |
Class C with 1% Maximum Sales Charge | | | — | | | | — | | | | –5.16 | | | | –4.65 | | | | — | | | | 4.65 | |
Class I at NAV | | | 02/01/2010 | | | | 02/01/2010 | | | | –3.72 | | | | –2.59 | | | | — | | | | 5.72 | |
Barclays Municipal Managed Money Intermediate 1-17 Year Bond Index | | | — | | | | 02/01/2010 | | | | –3.37 | % | | | –2.26 | % | | | 5.00 | % | | | 3.92 | % |
Barclays 7 Year Municipal Bond Index | | | — | | | | 02/01/2010 | | | | –1.97 | | | | –0.69 | | | | 5.41 | | | | 4.54 | |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
% After-Tax Returns with Maximum Sales Charge | | | Class Inception Date | | | Performance Inception Date | | | One Year | | | Five Years | | | Since Inception | |
Class A After Taxes on Distributions | | | | | | | 02/01/2010 | | | | 02/01/2010 | | | | –5.40 | % | | | — | | | | 4.55 | % |
Class A After Taxes on Distributions and Sale of Fund Shares | | | | | | | — | | | | — | | | | –2.31 | | | | — | | | | 3.89 | |
Class C After Taxes on Distributions | | | | | | | 02/01/2010 | | | | 02/01/2010 | | | | –5.06 | | | | — | | | | 4.45 | |
Class C After Taxes on Distributions and Sale of Fund Shares | | | | | | | — | | | | — | | | | –2.41 | | | | — | | | | 3.63 | |
Class I After Taxes on Distributions | | | | | | | 02/01/2010 | | | | 02/01/2010 | | | | –3.01 | | | | — | | | | 5.52 | |
Class I After Taxes on Distributions and Sale of Fund Shares | | | | | | | — | | | | — | | | | –0.83 | | | | — | | | | 4.71 | |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
% Total Annual Operating Expense Ratios3 | | | | | | | | | Class A | | | Class C | | | Class I | |
Gross | | | | | | | | | | | | | | | 1.01 | % | | | 1.76 | % | | | 0.76 | % |
Net | | | | | | | | | | | | | | | 0.95 | | | | 1.70 | | | | 0.70 | |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
% Distribution Rates/Yields4 | | | | | | | | | | | Class A | | | Class C | | | Class I | |
Distribution Rate | | | | | | | | | | | | | | | 1.01 | % | | | 0.18 | % | | | 1.25 | % |
SEC 30-day Yield | | | | | | | | | | | | | | | 1.31 | | | | 0.60 | | | | 1.58 | |
Fund Profile
Credit Quality (% of total investments)5
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-13-381792/g5811053.jpg)
*Amount is less than 0.05%.
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than quoted. Returns are before taxes unless otherwise noted. For performance as of the most recent month end, please refer to www.eatonvance.com.
Eaton Vance
Tax-Advantaged Bond Strategies Long Term Fund
July 31, 2013
Performance1,2
Portfolio Managers James H. Evans, CFA, Brian C. Barney, CFA and Christopher J. Harshman, CFA
| | | | | | | | | | | | | | | | | | | | | | | | |
% Average Annual Total Returns | | Class Inception Date | | | Performance Inception Date | | | Six Months | | | One Year | | | Five Years | | | Since Inception | |
Class A at NAV | | | 02/01/2010 | | | | 02/01/2010 | | | | –6.78 | % | | | –4.45 | % | | | — | | | | 6.72 | % |
Class A with 4.75% Maximum Sales Charge | | | — | | | | — | | | | –11.24 | | | | –8.98 | | | | — | | | | 5.25 | |
Class C at NAV | | | 02/01/2010 | | | | 02/01/2010 | | | | –7.05 | | | | –5.09 | | | | — | | | | 5.94 | |
Class C with 1% Maximum Sales Charge | | | — | | | | — | | | | –7.98 | | | | –5.98 | | | | — | | | | 5.94 | |
Class I at NAV | | | 02/01/2010 | | | | 02/01/2010 | | | | –6.59 | | | | –4.13 | | | | — | | | | 6.99 | |
Barclays Municipal Managed Money Long (10+) Year Bond Index | | | — | | | | 02/01/2010 | | | | –7.21 | % | | | –5.15 | % | | | 5.47 | % | | | 4.59 | % |
Barclays 15 Year Municipal Bond Index | | | — | | | | 02/01/2010 | | | | –5.25 | | | | –3.27 | | | | 5.68 | | | | 4.91 | |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
% After-Tax Returns with Maximum Sales Charge | | | Class Inception Date | | | Performance Inception Date | | | One Year | | | Five Years | | | Since Inception | |
Class A After Taxes on Distributions | | | | | | | 02/01/2010 | | | | 02/01/2010 | | | | –10.80 | % | | | — | | | | 4.36 | % |
Class A After Taxes on Distributions and Sale of Fund Shares | | | | | | | — | | | | — | | | | –3.87 | | | | — | | | | 4.26 | |
Class C After Taxes on Distributions | | | | | | | 02/01/2010 | | | | 02/01/2010 | | | | –7.88 | | | | — | | | | 5.04 | |
Class C After Taxes on Distributions and Sale of Fund Shares | | | | | | | — | | | | — | | | | –2.45 | | | | — | | | | 4.64 | |
Class I After Taxes on Distributions | | | | | | | 02/01/2010 | | | | 02/01/2010 | | | | –6.05 | | | | — | | | | 6.08 | |
Class I After Taxes on Distributions and Sale of Fund Shares | | | | | | | — | | | | — | | | | –0.96 | | | | — | | | | 5.69 | |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
% Total Annual Operating Expense Ratios3 | | | | | | | | | Class A | | | Class C | | | Class I | |
Gross | | | | | | | | | | | | | | | 1.31 | % | | | 2.07 | % | | | 1.05 | % |
Net | | | | | | | | | | | | | | | 0.95 | | | | 1.70 | | | | 0.70 | |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
% Distribution Rates/Yields4 | | | | | | | | | | | Class A | | | Class C | | | Class I | |
Distribution Rate | | | | | | | | | | | | | | | 2.24 | % | | | 1.43 | % | | | 2.46 | % |
SEC 30-day Yield | | | | | | | | | | | | | | | 2.45 | | | | 1.77 | | | | 2.80 | |
Fund Profile
Credit Quality (% of total investments)5
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-13-381792/g5811054.jpg)
*Amount is less than 0.05%.
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than quoted. Returns are before taxes unless otherwise noted. For performance as of the most recent month end, please refer to www.eatonvance.com.
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Endnotes and Additional Disclosures
1 | Barclays 5 Year Municipal Bond Index is an unmanaged index of municipal bonds traded in the U.S. with maturities ranging from 4-6 years. Barclays Municipal Managed Money 1-7 Year Bond Index is an unmanaged, tax-exempt bond market index that measures the 1-7 year maturity component of the Barclays Municipal Managed Money Bond Index. Barclays Municipal Managed Money Intermediate 1-17 Year Bond Index is an unmanaged, tax-exempt bond market index that measures the 1-17 year maturity component of the Barclays Municipal Managed Money Bond Index. Barclays 7 Year Municipal Bond Index is an unmanaged index of municipal bonds traded in the U.S. with maturities ranging from 6-8 years. Barclays Municipal Managed Money Long (10+) Year Bond Index is an unmanaged, tax-exempt bond market index that measures the 10+ year maturity component of the Barclays Municipal Managed Money Bond Index. Barclays 15 Year Municipal Bond Index is an unmanaged index of municipal bonds traded in the U.S. with maturities ranging from 12-17 years. Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index. |
2 | Total Returns at NAV do not include applicable sales charges. If sales charges were deducted, the returns would be lower. Total Returns shown with maximum sales charge reflect the stated maximum sales charge. Unless otherwise stated, performance does not reflect the deduction of taxes on Fund distributions or redemptions of Fund shares. After-tax returns are calculated using certain assumptions, including using the highest historical individual federal income tax rates and do not reflect the impact of state/local taxes. Actual after-tax returns depend on a shareholder’s tax situation and the actual characterization of distributions and may differ from those shown. After-tax returns are not relevant to shareholders who hold shares in tax-deferred accounts or shares held by nontaxable entities. Return After Taxes on Distributions may be the same as Return Before Taxes for the same period because no taxable distributions were made during that period. Return After Taxes on Distributions and Sale of Fund Shares may be greater than or equal to Return After Taxes on Distributions for the same period because of losses realized on the sale of Fund shares. |
| For the Tax-Advantaged Bond Strategies Short Term Fund, performance prior to the inception date of each share class is that of a private investment partnership (the Predecessor Account). Performance shown prior to the inception of the share class is adjusted for any applicable sales charge, but not adjusted for expense differences between the Predecessor Account and each share class. If adjusted for such differences, the performance would be different. The Predecessor Account was not a mutual fund registered under the Investment Company Act of 1940, as amended (the 1940 Act) or a regulated investment company under the Internal Revenue Code of 1986, as amended (the Code), and therefore the Predecessor Account was not subject to investment limitations, diversification requirements and other restrictions imposed by the 1940 Act and/or the Code. If such requirements were applicable to the Predecessor Account, the performance shown may have been adversely affected. Performance presented in the financial highlights included in the financial statements is not linked. |
| After-Tax Returns are not shown for the Five Year and Ten Year periods because the Predecessor Account, unlike a registered investment company, was not required to make annual income distributions to its investors. |
3 | Source: Fund prospectus. Net expense ratio reflects a contractual expense reimbursement for Tax-Advantaged Bond Strategies Intermediate Term Fund and Tax-Advantaged Bond Strategies Long Term Fund that continues through 5/31/14. Without the reimbursement, performance would have been lower. |
4 | The Distribution Rate is based on the Fund’s last regular distribution per share in the period (annualized) divided by the Fund’s NAV at the end of the period. The Fund’s distributions may be composed of ordinary income, tax-exempt income, net realized capital gains and return of capital. The Fund’s distributions are determined by the investment adviser based on its current assessment of the Fund’s long-term return potential. As portfolio and market conditions change, the rate of distributions paid by the Fund could change. Taxable-equivalent performance is based on the highest combined federal and state income tax rates, where applicable. Lower tax rates would result in lower tax-equivalent performance. Actual tax rates will vary depending on your income, exemptions and deductions. Rates do not include local taxes. SEC Yield is a standardized measure based on the estimated yield to maturity of a fund’s investments over a 30-day period and is based on the maximum offer price at the date specified. The SEC Yield is not based on the distributions made by the Fund, which may differ. Yield reflects the effect of fees waivers and expense reimbursements. |
5 | Ratings are based on Moody’s, S&P or Fitch, as applicable. Ratings, which are subject to change, apply to the creditworthiness of the issuers of the underlying securities and not to the Fund or its shares. Credit ratings measure the quality of a bond based on the issuer’s creditworthiness, with ratings ranging from AAA, being the highest, to D, being the lowest based on S&P’s measures. Ratings of BBB or higher by Standard and Poor’s or Fitch (Baa or higher by Moody’s) are considered to be investment grade quality. Credit ratings are based largely on the rating agency’s analysis at the time of rating. The rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition and does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. If securities are rated differently by the rating agencies, the higher rating is applied. Holdings designated as “Not Rated” are not rated by the national rating agencies stated above. |
| Fund profile subject to change due to active management. |
| Important Notice to Shareholders |
| Effective July 3, 2013, Devin J. Cooch, CFA, became a portfolio manager of the Eaton Vance Tax-Advantaged Bond Strategies Short Term Fund. He joined James H. Evans, CFA, and Brian C. Barney, CFA. Mr. Cooch has been managing the Fund since July 2013 and is a Vice President of Eaton Vance. Prior to joining Eaton Vance in 2009, Mr. Cooch was employed by M.D. Sass. |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Fund Expenses
Example: As a Fund shareholder, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases and redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution and/or service fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of Fund investing and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2013 – July 31, 2013).
Actual Expenses: The first section of each table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes: The second section of each table below provides information about hypothetical account values and hypothetical expenses based on the actual Fund expense ratio and an assumed rate of return of 5% per year (before expenses), which is not the actual Fund return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in each table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption fees (if applicable). Therefore, the second section of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would be higher.
Eaton Vance Tax-Advantaged Bond Strategies Short Term Fund
| | | | | | | | | | | | | | | | |
| | Beginning Account Value (2/1/13) | | | Ending Account Value (7/31/13) | | | Expenses Paid During Period* (2/1/13 – 7/31/13) | | | Annualized Expense Ratio | |
| | | | |
| | | | | | | | | | | | | | | | |
Actual | | | | | | | | | | | | | |
Class A | | $ | 1,000.00 | | | $ | 985.00 | | | $ | 4.43 | | | | 0.90 | % |
Class C | | $ | 1,000.00 | | | $ | 981.20 | | | $ | 8.11 | | | | 1.65 | % |
Class I | | $ | 1,000.00 | | | $ | 986.20 | | | $ | 3.20 | | | | 0.65 | % |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | | |
Hypothetical | | | | | | | | | | | | | |
(5% return per year before expenses) | | | | | | | | | | | | | |
Class A | | $ | 1,000.00 | | | $ | 1,020.30 | | | $ | 4.51 | | | | 0.90 | % |
Class C | | $ | 1,000.00 | | | $ | 1,016.60 | | | $ | 8.25 | | | | 1.65 | % |
Class I | | $ | 1,000.00 | | | $ | 1,021.60 | | | $ | 3.26 | | | | 0.65 | % |
* | Expenses are equal to the Fund’s annualized expense ratio for the indicated Class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on January 31, 2013. |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Fund Expenses — continued
Eaton Vance Tax-Advantaged Bond Strategies Intermediate Term Fund
| | | | | | | | | | | | | | | | |
| | Beginning Account Value (2/1/13) | | | Ending Account Value (7/31/13) | | | Expenses Paid During Period* (2/1/13 – 7/31/13) | | | Annualized Expense Ratio | |
| | | | |
| | | | | | | | | | | | | | | | |
Actual | | | | | | | | | | | | | |
Class A | | $ | 1,000.00 | | | $ | 961.60 | | | $ | 4.62 | ** | | | 0.95 | % |
Class C | | $ | 1,000.00 | | | $ | 958.00 | | | $ | 8.25 | ** | | | 1.70 | % |
Class I | | $ | 1,000.00 | | | $ | 962.80 | | | $ | 3.41 | ** | | | 0.70 | % |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | | |
Hypothetical | | | | | | | | | | | | | |
(5% return per year before expenses) | | | | | | | | | | | | | |
Class A | | $ | 1,000.00 | | | $ | 1,020.10 | | | $ | 4.76 | ** | | | 0.95 | % |
Class C | | $ | 1,000.00 | | | $ | 1,016.40 | | | $ | 8.50 | ** | | | 1.70 | % |
Class I | | $ | 1,000.00 | | | $ | 1,021.30 | | | $ | 3.51 | ** | | | 0.70 | % |
* | Expenses are equal to the Fund’s annualized expense ratio for the indicated Class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on January 31, 2013. |
** | Absent an allocation of expenses to an affiliate, expenses would be higher. |
Eaton Vance Tax-Advantaged Bond Strategies Long Term Fund
| | | | | | | | | | | | | | | | |
| | Beginning Account Value (2/1/13) | | | Ending Account Value (7/31/13) | | | Expenses Paid During Period* (2/1/13 – 7/31/13) | | | Annualized Expense Ratio | |
| | | | |
| | | | | | | | | | | | | | | | |
Actual | | | | | | | | | | | | | |
Class A | | $ | 1,000.00 | | | $ | 932.20 | | | $ | 4.55 | ** | | | 0.95 | % |
Class C | | $ | 1,000.00 | | | $ | 929.50 | | | $ | 8.13 | ** | | | 1.70 | % |
Class I | | $ | 1,000.00 | | | $ | 934.10 | | | $ | 3.36 | ** | | | 0.70 | % |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | | |
Hypothetical | | | | | | | | | | | | | |
(5% return per year before expenses) | | | | | | | | | | | | | |
Class A | | $ | 1,000.00 | | | $ | 1,020.10 | | | $ | 4.76 | ** | | | 0.95 | % |
Class C | | $ | 1,000.00 | | | $ | 1,016.40 | | | $ | 8.50 | ** | | | 1.70 | % |
Class I | | $ | 1,000.00 | | | $ | 1,021.30 | | | $ | 3.51 | ** | | | 0.70 | % |
* | Expenses are equal to the Fund’s annualized expense ratio for the indicated Class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on January 31, 2013. |
** | Absent an allocation of expenses to an affiliate, expenses would be higher. |
Eaton Vance
Tax-Advantaged Bond Strategies Short Term Fund
July 31, 2013
Portfolio of Investments (Unaudited)
| | | | | | | | |
Tax-Exempt Municipal Securities — 97.3% | |
| | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Education — 5.8% | |
Colorado, (UCDHSC Fitzsimons Academic), 5.00%, 11/1/17 | | $ | 1,000 | | | $ | 1,154,410 | |
Florida Board of Education, Lottery Revenue, 4.00%, 7/1/14 | | | 5,000 | | | | 5,171,800 | |
Florida Board of Education, Lottery Revenue, 5.00%, 7/1/18 | | | 14,425 | | | | 16,798,490 | |
Missouri Health and Educational Facilities Authority, (Washington University), 5.50%, 6/15/16 | | | 1,000 | | | | 1,136,320 | |
North Penn, PA, School District, 5.00%, 3/1/21 | | | 3,010 | | | | 3,499,095 | |
Pennsylvania Higher Educational Facilities Authority, (Temple University), 5.00%, 4/1/19 | | | 750 | | | | 869,655 | |
Seminole County, FL, School Board, 5.00%, 7/1/20 | | | 1,710 | | | | 1,964,756 | |
University of Arkansas, 4.00%, 12/1/14 | | | 810 | | | | 849,463 | |
University of Arkansas, 4.00%, 12/1/15 | | | 670 | | | | 720,692 | |
University of Iowa Facilities Corp., (Medical Education & Biomedical Research Facility), 3.75%, 6/1/17 | | | 1,005 | | | | 1,098,324 | |
University of Maryland, Auxiliary Facility & Tuition Revenue, 3.00%, 4/1/14 | | | 3,120 | | | | 3,179,654 | |
University of Maryland, Auxiliary Facility & Tuition Revenue, 4.00%, 4/1/14 | | | 400 | | | | 410,312 | |
University of North Carolina System, 5.00%, 5/1/18 | | | 1,365 | | | | 1,578,745 | |
University of Texas, 5.00%, 8/15/23 | | | 4,775 | | | | 5,500,896 | |
Vermont Educational & Health Buildings Financing Agency, (Middlebury College), 5.00%, 11/1/20 | | | 1,000 | | | | 1,183,070 | |
Vermont Educational & Health Buildings Financing Agency, (Middlebury College), 5.00%, 11/1/21 | | | 860 | | | | 1,012,194 | |
Virginia College Building Authority, Educational Facilities Revenue, 5.00%, 2/1/17 | | | 1,850 | | | | 2,103,469 | |
Virginia Public School Authority, 5.00%, 1/15/19 | | | 2,000 | | | | 2,349,580 | |
| | | | | | | | |
| | | | | | $ | 50,580,925 | |
| | | | | | | | |
|
Electric Utilities — 5.5% | |
California Department of Water Resources, Power Supply Revenue, 5.00%, 5/1/14 | | $ | 735 | | | $ | 761,394 | |
Energy Northwest, WA, (Columbia Generating Station), 5.00%, 7/1/19 | | | 6,600 | | | | 7,804,830 | |
Energy Northwest, WA, (Columbia Generating Station), 5.00%, 7/1/20 | | | 5,000 | | | | 5,902,500 | |
Energy Northwest, WA, (Columbia Generating Station), 5.00%, 7/1/21 | | | 2,500 | | | | 2,939,550 | |
Energy Northwest, WA, (Columbia Generating Station), 5.00%, 7/1/23 | | | 1,125 | | | | 1,263,645 | |
Municipal Electric Authority of Georgia, 5.00%, 1/1/20 | | | 7,000 | | | | 8,112,370 | |
Omaha, NE, Public Power District, 3.00%, 2/1/16 | | | 950 | | | | 1,006,107 | |
Salt River, AZ, Agricultural Improvements and Power District, 3.00%, 12/1/16 | | | 465 | | | | 499,266 | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Electric Utilities (continued) | |
San Antonio, TX, (Electric and Gas Systems), 5.00%, 2/1/19 | | $ | 8,660 | | | $ | 10,175,846 | |
Southern California Public Power Authority, 5.00%, 7/1/20 | | | 8,005 | | | | 9,281,878 | |
| | | | | | | | |
| | | $ | 47,747,386 | |
| | | | | | | | |
|
Escrowed / Prerefunded — 3.4% | |
California, Prerefunded to 2/1/14, 5.00%, 2/1/33 | | $ | 5,000 | | | $ | 5,120,800 | |
Harris County, TX, Prerefunded to 10/1/18, 5.75%, 10/1/23 | | | 770 | | | | 936,905 | |
Massachusetts Bay Transportation Authority, Escrowed to Maturity, 4.00%, 7/1/15 | | | 870 | | | | 930,517 | |
Massachusetts Bay Transportation Authority, Prerefunded to 7/1/18, 5.00%, 7/1/34 | | | 750 | | | | 880,590 | |
Massachusetts Water Pollution Abatement Trust, Prerefunded to 8/1/14, 5.00%, 8/1/29 | | | 700 | | | | 733,572 | |
New Jersey Economic Development Authority, (School Facilities Construction), Prerefunded to 9/1/14, 5.25%, 9/1/29 | | | 1,000 | | | | 1,054,370 | |
New York, NY, Prerefunded to 10/15/13, 5.25%, 10/15/23 | | | 7,500 | | | | 7,578,150 | |
New York, NY, Series C, Prerefunded to 9/15/13, 5.25%, 9/15/33 | | | 5,155 | | | | 5,186,961 | |
North Carolina, Prerefunded to 3/1/15, 5.25%, 3/1/23 | | | 830 | | | | 893,454 | |
Ohio, Prerefunded to 3/15/14, 5.00%, 3/15/24 | | | 1,000 | | | | 1,030,050 | |
Ohio Water Development Authority, Pollution Control Revenue, Prerefunded to 6/1/14, 5.00%, 6/1/17 | | | 785 | | | | 816,455 | |
Orange County, NC, Prerefunded to 2/1/14, 4.25%, 2/1/20 | | | 1,420 | | | | 1,449,110 | |
Palmdale, CA, Community Redevelopment Agency, Escrowed to Maturity, 8.00%, 3/1/16 | | | 1,000 | | | | 1,188,980 | |
San Benito, TX, Consolidated Independent School District, (PSF Guaranteed), Prerefunded to 2/15/14, 5.00%, 2/15/20 | | | 1,095 | | | | 1,123,382 | |
Tobacco Settlement Financing Corp., VA, Prerefunded to 6/1/15, 5.625%, 6/1/37 | | | 270 | | | | 295,758 | |
| | | | | | | | |
| | | $ | 29,219,054 | |
| | | | | | | | |
|
General Obligations — 40.8% | |
Albuquerque, NM, Municipal School District No. 12, 5.00%, 8/1/13 | | $ | 340 | | | $ | 340,000 | |
Allen County, IA, Juvenile Justice Center Building Corp., 3.00%, 1/1/15 | | | 720 | | | | 743,558 | |
Allen County, IA, Juvenile Justice Center Building Corp., 3.00%, 7/1/15 | | | 695 | | | | 723,961 | |
Allen County, IA, Juvenile Justice Center Building Corp., 3.00%, 1/1/16 | | | 1,020 | | | | 1,067,583 | |
Atlantic County, NJ, 2.50%, 10/1/14 | | | 730 | | | | 749,513 | |
Beaumont, TX, Independent School District, (PSF Guaranteed), 2.00%, 2/15/14 | | | 420 | | | | 424,192 | |
Beaumont, TX, Independent School District, (PSF Guaranteed), 3.00%, 2/15/15 | | | 740 | | | | 770,333 | |
| | | | |
| | 8 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Short Term Fund
July 31, 2013
Portfolio of Investments (Unaudited) — continued
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
General Obligations (continued) | |
Bergen County, NJ, 3.25%, 11/1/16 | | $ | 2,195 | | | $ | 2,366,144 | |
Berks County, PA, 5.00%, 11/15/22 | | | 1,700 | | | | 1,935,926 | |
Brookhaven, NY, 2.00%, 1/15/17 | | | 1,000 | | | | 1,034,680 | |
Brown County, WI, 4.00%, 11/1/21 | | | 620 | | | | 679,923 | |
Caledonia, MI, Community Schools, 4.00%, 5/1/17 | | | 1,000 | | | | 1,089,820 | |
Carrollton-Farmers Branch, TX, Independent School District, (PSF Guaranteed), 5.00%, 2/15/21 | | | 1,785 | | | | 2,109,906 | |
Carrollton-Farmers Branch, TX, Independent School District, (PSF Guaranteed), 5.00%, 2/15/22 | | | 1,875 | | | | 2,205,825 | |
Cary, NC, 5.00%, 6/1/18 | | | 195 | | | | 229,562 | |
Cedar Hill, TX, Independent School District, (PSF Guaranteed), 0.00%, 2/15/18 | | | 100 | | | | 92,153 | |
Clark County, WA, 5.00%, 12/1/18 | | | 685 | | | | 801,162 | |
Clark County, WA, Battleground School District No. 119, 4.00%, 12/1/20 | | | 1,000 | | | | 1,113,070 | |
Clark County, WA, Camas School District No. 117, 3.00%, 12/1/15 | | | 1,015 | | | | 1,072,317 | |
Columbia County, GA, School District, 5.00%, 4/1/16 | | | 1,000 | | | | 1,115,230 | |
Comal County, TX, 4.00%, 2/1/18 | | | 1,200 | | | | 1,328,580 | |
Commonwealth of Pennsylvania, 5.00%, 2/15/18 | | | 865 | | | | 1,005,424 | |
Crandall, TX, Independent School District, (PSF Guaranteed), 0.00%, 8/15/14 | | | 380 | | | | 378,408 | |
Crandall, TX, Independent School District, (PSF Guaranteed), 0.00%, 8/15/16 | | | 300 | | | | 289,743 | |
Crandall, TX, Independent School District, (PSF Guaranteed), 0.00%, 8/15/21 | | | 155 | | | | 121,703 | |
Crowley, TX, Independent School District, (PSF Guaranteed), 0.00%, 8/1/18 | | | 1,675 | | | | 1,529,074 | |
Dallas, TX, Independent School District, (PSF Guaranteed), 5.50%, 2/15/18 | | | 240 | | | | 284,582 | |
Dare County, NC, 3.00%, 6/1/15 | | | 695 | | | | 725,976 | |
Deer Park, TX, Independent School District, 3.00%, 2/15/15 | | | 125 | | | | 130,030 | |
DeKalb, Kane, LaSalle, Lee, Ogle, Winnebago and Boone Counties, IL, Community College District No. 523, (Kishwaukee Community College), 0.00%, 2/1/16 | | | 500 | | | | 486,205 | |
Del Mar College District, TX, 4.00%, 8/15/16 | | | 1,000 | | | | 1,096,760 | |
Delaware, 5.00%, 7/1/22 | | | 1,565 | | | | 1,819,516 | |
Delaware, 5.00%, 7/1/23 | | | 1,000 | | | | 1,156,700 | |
Denton, TX, Independent School District, (PSF Guaranteed), 0.00%, 8/15/15 | | | 825 | | | | 812,765 | |
Eagle Mountain & Saginaw, TX, Independent School District, (PSF Guaranteed), 0.00%, 8/15/20 | | | 155 | | | | 130,578 | |
El Camino, CA, Community College District, 0.00%, 8/1/17 | | | 1,390 | | | | 1,296,092 | |
El Camino, CA, Community College District, 0.00%, 8/1/18 | | | 2,280 | | | | 2,058,133 | |
El Dorado, CA, Union High School District, 0.00%, 8/1/18 | | | 110 | | | | 96,653 | |
El Dorado, CA, Union High School District, 0.00%, 8/1/20 | | | 30 | | | | 23,757 | |
El Dorado, CA, Union High School District, 0.00%, 8/1/21 | | | 125 | | | | 92,953 | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
General Obligations (continued) | |
El Dorado, CA, Union High School District, 0.00%, 8/1/22 | | $ | 150 | | | $ | 104,064 | |
Fitchburg, MA, 4.00%, 12/1/16 | | | 570 | | | | 623,227 | |
Florida Board of Public Education, Full Faith and Credit, Capital Outlay, 5.00%, 6/1/17 | | | 1,350 | | | | 1,548,234 | |
Florida Board of Public Education, Full Faith and Credit, Capital Outlay, 5.00%, 6/1/21 | | | 2,000 | | | | 2,302,540 | |
Fort Worth, TX, Independent School District, (PSF Guaranteed), 5.00%, 2/15/14 | | | 500 | | | | 513,035 | |
Frisco, TX, 4.00%, 2/15/19 | | | 155 | | | | 173,465 | |
Garland, TX, Independent School District, (PSF Guaranteed), 0.00%, 2/15/16 | | | 1,525 | | | | 1,491,069 | |
Garland, TX, Independent School District, (PSF Guaranteed), 3.00%, 2/15/16 | | | 200 | | | | 200,434 | |
Garland, TX, Independent School District, (PSF Guaranteed), 3.00%, 2/15/18 | | | 300 | | | | 300,651 | |
Gaston County, NC, 5.00%, 3/1/19 | | | 2,480 | | | | 2,906,560 | |
Georgia, 5.00%, 7/1/14 | | | 1,575 | | | | 1,644,867 | |
Georgia, 5.00%, 5/1/15 | | | 315 | | | | 340,562 | |
Georgia, 5.00%, 7/1/20 | | | 5,160 | | | | 5,975,125 | |
Georgia, 5.00%, 7/1/22 | | | 4,500 | | | | 5,180,985 | |
Georgia, 5.75%, 9/1/13 | | | 4,850 | | | | 4,872,649 | |
Georgia, 5.75%, 8/1/14 | | | 500 | | | | 527,905 | |
Gloucester County, NJ, 2.00%, 9/15/17 | | | 280 | | | | 287,339 | |
Grand Blanc, MI, Community Schools, 4.00%, 5/1/15 | | | 600 | | | | 635,772 | |
Grand Blanc, MI, Community Schools, 4.00%, 5/1/17 | | | 800 | | | | 876,760 | |
Grand Blanc, MI, Community Schools, 5.00%, 5/1/18 | | | 2,130 | | | | 2,451,247 | |
Guilford County, NC, Series A, 5.00%, 3/1/19 | | | 4,000 | | | | 4,755,960 | |
Guilford County, NC, Series A, 5.00%, 8/1/19 | | | 1,265 | | | | 1,514,407 | |
Guilford County, NC, Series C, 5.00%, 4/1/18 | | | 1,220 | | | | 1,431,011 | |
Guilford County, NC, Series D, 5.00%, 8/1/19 | | | 10,190 | | | | 12,199,060 | |
Gull Lake, MI, Community Schools, 4.00%, 5/1/17 | | | 1,260 | | | | 1,377,520 | |
Gull Lake, MI, Community Schools, 4.00%, 5/1/18 | | | 1,000 | | | | 1,099,100 | |
Gull Lake, MI, Community Schools, 4.00%, 5/1/19 | | | 1,295 | | | | 1,424,927 | |
Gull Lake, MI, Community Schools, 5.00%, 5/1/20 | | | 1,465 | | | | 1,691,504 | |
Hartford County, CT, Metropolitan District, 5.00%, 7/15/18 | | | 4,250 | | | | 4,985,080 | |
Hartford County, CT, Metropolitan District, 5.00%, 2/1/19 | | | 1,515 | | | | 1,783,670 | |
Hays, TX, Consolidated Independent School District, (PSF Guaranteed), 5.00%, 8/15/21 | | | 1,165 | | | | 1,375,387 | |
Hutto, TX, Independent School District, (PSF Guaranteed), 0.00%, 8/1/17 | | | 390 | | | | 366,565 | |
Hutto, TX, Independent School District, (PSF Guaranteed), 0.00%, 8/1/18 | | | 310 | | | | 281,821 | |
Irving, TX, Independent School District, (PSF Guaranteed), 4.00%, 2/15/17 | | | 420 | | | | 464,113 | |
Jackson County, GA, School District, 5.00%, 3/1/19 | | | 5,000 | | | | 5,862,900 | |
Kenston Local School District, OH, 4.00%, 12/1/14 | | | 765 | | | | 801,406 | |
| | | | |
| | 9 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Short Term Fund
July 31, 2013
Portfolio of Investments (Unaudited) — continued
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
General Obligations (continued) | |
King County, WA, 4.00%, 12/1/19 | | $ | 1,050 | | | $ | 1,186,091 | |
King County, WA, School District No. 414 Lake Washington, 4.00%, 12/1/16 | | | 1,790 | | | | 1,974,477 | |
King County, WA, School District No. 414 Lake Washington Limited Obligations Bonds, 4.00%, 12/1/16 | | | 2,305 | | | | 2,541,747 | |
King County, WA, School District No. 414 Lake Washington Limited Obligations Bonds, 5.00%, 6/1/17 | | | 1,320 | | | | 1,507,955 | |
Larimer, Weld & Boulder Counties, CO, School District No. R2-J Thompson, 5.00%, 12/15/20 | | | 5,425 | | | | 6,416,256 | |
Lewisville, TX, Independent School District, 0.00%, 8/15/13 | | | 1,615 | | | | 1,614,871 | |
Lewisville, TX, Independent School District, 5.00%, 8/15/18 | | | 1,365 | | | | 1,595,712 | |
Lewisville, TX, Independent School District, (PSF Guaranteed), 5.00%, 8/15/19 | | | 2,000 | | | | 2,265,340 | |
Lexington, MA, 5.00%, 2/15/14 | | | 1,095 | | | | 1,123,623 | |
Lone Star College System, TX, 5.00%, 2/15/19 | | | 450 | | | | 528,318 | |
Lone Star College System, TX, 5.00%, 2/15/20 | | | 720 | | | | 843,422 | |
Loudoun County, VA, 5.00%, 12/1/18 | | | 1,100 | | | | 1,307,570 | |
Manhattan Beach, CA, Unified School District, 3.00%, 9/1/20 | | | 1,000 | | | | 1,058,470 | |
Maricopa County, AZ, Community College District, 2.00%, 7/1/14 | | | 2,845 | | | | 2,892,540 | |
Maryland, 3.00%, 8/1/22 | | | 5,000 | | | | 5,074,300 | |
Maryland, 4.50%, 8/1/18 | | | 3,000 | | | | 3,468,540 | |
Maryland, 5.00%, 3/1/16 | | | 150 | | | | 166,991 | |
Maryland, 5.00%, 3/1/19 | | | 5,465 | | | | 6,497,830 | |
Massachusetts, 4.00%, 1/1/15 | | | 500 | | | | 525,950 | |
Massachusetts, 5.00%, 8/1/17 | | | 2,500 | | | | 2,877,275 | |
McKinney, TX, 5.00%, 8/15/18 | | | 1,390 | | | | 1,624,938 | |
Mecklenburg County, NC, 4.00%, 12/1/19 | | | 1,900 | | | | 2,168,223 | |
Mecklenburg County, NC, 5.00%, 12/1/19 | | | 7,605 | | | | 9,149,423 | |
Medina County, OH, Library District, 5.00%, 12/1/21 | | | 1,000 | | | | 1,150,310 | |
Metro, OR, Regional Center, 5.00%, 6/1/18 | | | 2,010 | | | | 2,364,182 | |
Metro, OR, Regional Center, 5.00%, 6/1/19 | | | 1,000 | | | | 1,192,740 | |
Middlesex County, NJ, 2.00%, 6/1/14 | | | 3,510 | | | | 3,562,123 | |
Middlesex County, NJ, 2.50%, 6/1/15 | | | 3,295 | | | | 3,420,012 | |
Midland, TX, College District, 0.00%, 2/15/16 | | | 845 | | | | 823,596 | |
Minnesota, 4.00%, 8/1/16 | | | 1,750 | | | | 1,919,313 | |
Minnesota, 4.00%, 8/1/19 | | | 3,000 | | | | 3,407,310 | |
Minnesota, 5.00%, 6/1/18 | | | 1,000 | | | | 1,175,180 | |
Minnesota, 5.00%, 8/1/18 | | | 90 | | | | 106,134 | |
Mississippi, 5.00%, 10/1/21 | | | 750 | | | | 860,340 | |
Mississippi Development Bank, Special Obligation Bond, (Harrison County Highway), 5.00%, 1/1/22 | | | 1,500 | | | | 1,722,855 | |
Mississippi Development Bank, Special Obligation Bond, (Harrison County Highway), 5.00%, 1/1/23 | | | 2,840 | | | | 3,242,797 | |
Mississippi Development Bank, Special Obligation Bond, (Laurel Highway), 4.00%, 1/1/21 | | | 1,515 | | | | 1,650,805 | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
General Obligations (continued) | |
Mississippi Development Bank, Special Obligation Bond, (Laurel Highway), 4.00%, 1/1/22 | | $ | 2,095 | | | $ | 2,248,145 | |
Mississippi Development Bank, Special Obligation Bond, (Madison County Highway), 5.00%, 1/1/19 | | | 1,230 | | | | 1,428,805 | |
Mississippi Development Bank, Special Obligation Bond, (Madison County Highway), 5.00%, 1/1/20 | | | 1,500 | | | | 1,744,185 | |
Missouri, (Water Pollution Control), 5.00%, 10/1/13 | | | 1,000 | | | | 1,008,090 | |
Monmouth County, NJ, 4.00%, 12/1/16 | | | 1,095 | | | | 1,210,523 | |
Montclair, NJ, 2.00%, 3/1/14 | | | 1,205 | | | | 1,217,363 | |
Montclair, NJ, 3.00%, 3/1/15 | | | 1,285 | | | | 1,337,454 | |
Montclair, NJ, 3.00%, 3/1/16 | | | 1,365 | | | | 1,446,026 | |
Montclair, NJ, (School Bond Revenue Act), 3.00%, 3/1/14 | | | 800 | | | | 812,872 | |
Montclair, NJ, (School Bond Revenue Act), 3.00%, 3/1/15 | | | 835 | | | | 869,085 | |
Montclair, NJ, (School Bond Revenue Act), 3.00%, 3/1/16 | | | 870 | | | | 921,643 | |
Montgomery County, MD, 5.00%, 7/1/23 | | | 4,265 | | | | 4,952,049 | |
Morris County, NJ, 5.00%, 2/15/17 | | | 1,650 | | | | 1,881,792 | |
Morris County, NJ, 5.00%, 2/15/19 | | | 1,720 | | | | 2,037,323 | |
Mountain View-Los Altos, CA, Union High School District, 0.00%, 8/1/24 | | | 950 | | | | 619,372 | |
New Hanover County, NC, 5.00%, 12/1/18 | | | 430 | | | | 511,386 | |
North Carolina, 4.00%, 6/1/14 | | | 10,000 | | | | 10,320,100 | |
North Carolina, 5.00%, 5/1/19 | | | 1,240 | | | | 1,478,514 | |
Northside, TX, Independent School District, (PSF Guaranteed), 3.00%, 8/1/15 | | | 265 | | | | 278,393 | |
Northwest, TX, Independent School District, (PSF Guaranteed), 5.00%, 2/15/21 | | | 1,000 | | | | 1,176,730 | |
Ocean County, NJ, 3.00%, 9/1/14 | | | 775 | | | | 797,460 | |
Ocean County, NJ, 3.00%, 8/1/16 | | | 1,255 | | | | 1,336,550 | |
Ocean County, NJ, 4.00%, 9/1/15 | | | 1,250 | | | | 1,339,425 | |
Ohio, 4.00%, 9/1/15 | | | 935 | | | | 1,002,825 | |
Ohio, 5.00%, 9/15/15 | | | 500 | | | | 548,080 | |
Ohio, 5.00%, 9/15/19 | | | 1,100 | | | | 1,303,786 | |
Ohio, 5.50%, 6/15/20 | | | 500 | | | | 578,850 | |
Ohio, Higher Education Board, 5.00%, 8/1/19 | | | 5,425 | | | | 6,419,511 | |
Oklahoma County, OK, Independent School District No. 12 Edmond, 2.00%, 3/1/15 | | | 2,500 | | | | 2,557,825 | |
Oklahoma County, OK, Independent School District No. 89 Oklahoma City, 2.00%, 7/1/15 | | | 3,670 | | | | 3,766,741 | |
Osseo, MN, Independent School District No. 279, 4.00%, 2/1/20 | | | 450 | | | | 491,585 | |
Pennsylvania, 5.00%, 2/15/17 | | | 2,500 | | | | 2,847,450 | |
Pennsylvania, 5.00%, 2/15/19 | | | 2,000 | | | | 2,355,020 | |
Pima County, AZ, 4.00%, 7/1/18 | | | 2,400 | | | | 2,665,344 | |
Prosper, TX, Independent School District, (PSF Guaranteed), 0.00%, 8/15/16 | | | 615 | | | | 595,867 | |
Ramsey, NJ, School District, 2.00%, 1/15/16 | | | 1,850 | | | | 1,909,422 | |
| | | | |
| | 10 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Short Term Fund
July 31, 2013
Portfolio of Investments (Unaudited) — continued
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
General Obligations (continued) | |
Richmond County, GA, Board of Education, 5.00%, 10/1/17 | | $ | 1,000 | | | $ | 1,156,510 | |
Rockville, MD, 4.00%, 6/1/19 | | | 750 | | | | 849,720 | |
Roma, TX, Independent School District, (PSF Guaranteed), 0.00%, 8/15/15 | | | 235 | | | | 232,655 | |
Saint Augustine, FL, Capital Improvement, 3.00%, 10/1/16 | | | 100 | | | | 105,543 | |
Saint Augustine, FL, Capital Improvement, 3.00%, 10/1/18 | | | 275 | | | | 288,706 | |
Saint Augustine, FL, Capital Improvement, 3.00%, 10/1/21 | | | 30 | | | | 29,412 | |
Salt Lake City, UT, 4.00%, 6/15/19 | | | 1,550 | | | | 1,760,413 | |
San Antonio, TX, 4.00%, 8/1/15 | | | 800 | | | | 856,672 | |
San Diego, CA, Community College District, 0.00%, 8/1/18 | | | 285 | | | | 254,229 | |
San Diego, CA, Community College District, 0.00%, 8/1/19 | | | 300 | | | | 257,157 | |
San Diego, CA, Community College District, 0.00%, 8/1/20 | | | 315 | | | | 254,838 | |
Schertz-Cibolo-Universal City, TX, Independent School District, (PSF Guaranteed), 5.00%, 2/1/22 | | | 1,500 | | | | 1,705,620 | |
Snohomish County, WA, Marysville School District No. 25, 5.00%, 12/1/21 | | | 1,750 | | | | 2,056,215 | |
Spring Branch, TX, Independent School District, (PSF Guaranteed), 5.00%, 2/1/18 | | | 1,875 | | | | 2,180,213 | |
St. Louis County, MO, (Courthouse Project), 5.00%, 2/1/19 | | | 1,000 | | | | 1,184,860 | |
St. Louis County, MO, School District C-2 Parkway, 5.00%, 3/1/21 | | | 645 | | | | 767,144 | |
St. Mary’s County, MD, 3.00%, 7/15/15 | | | 920 | | | | 966,892 | |
Suffolk, VA, 4.00%, 8/1/18 | | | 1,000 | | | | 1,125,830 | |
Sumner County, TN, 3.00%, 6/1/16 | | | 1,000 | | | | 1,063,380 | |
Sumner County, TN, 5.00%, 6/1/16 | | | 3,000 | | | | 3,360,780 | |
Susquehanna Township, PA, School District, 3.00%, 5/15/18 | | | 690 | | | | 722,485 | |
Texas, 5.00%, 10/1/20 | | | 1,000 | | | | 1,149,820 | |
Tomball, TX, Independent School District, (PSF Guaranteed), 4.00%, 2/15/20 | | | 50 | | | | 53,182 | |
Tulsa, OK, 4.00%, 3/1/17 | | | 1,000 | | | | 1,105,300 | |
Tyler, TX, Independent School District, 4.00%, 2/15/14 | | | 130 | | | | 132,682 | |
United Independent School District, TX, (PSF Guaranteed), 5.00%, 8/15/15 | | | 1,755 | | | | 1,918,215 | |
United Independent School District, TX, (PSF Guaranteed), 5.00%, 8/15/21 | | | 1,180 | | | | 1,399,704 | |
Utah, 5.00%, 7/1/18 | | | 10,000 | | | | 11,798,700 | |
Utah, 5.00%, Series 2011A, 7/1/19 | | | 9,495 | | | | 11,352,222 | |
Utah, 5.00%, Series 2013, 7/1/19 | | | 5,000 | | | | 5,978,000 | |
Utica, MI, Community Schools, 3.00%, 5/1/19 | | | 5,775 | | | | 6,043,537 | |
Virginia, 5.00%, 6/1/21 | | | 1,000 | | | | 1,198,800 | |
Virginia Beach, VA, 5.00%, 3/15/19 | | | 1,540 | | | | 1,829,535 | |
Virginia Beach, VA, 5.00%, 7/15/19 | | | 1,000 | | | | 1,194,460 | |
Wake County, NC, 5.00%, 3/1/14 | | | 1,880 | | | | 1,933,091 | |
Wake County, NC, 5.00%, 3/1/23 | | | 2,120 | | | | 2,417,563 | |
Warren, MI, Consolidated Schools, 4.00%, 5/1/15 | | | 500 | | | | 529,325 | |
Warren, MI, Consolidated Schools, 4.00%, 5/1/17 | | | 1,600 | | | | 1,743,712 | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
General Obligations (continued) | |
Washington, 5.00%, 7/1/22 | | $ | 5,000 | | | $ | 5,769,400 | |
Washington, MD, Suburban Sanitary District, (Consolidated Public Improvement), 5.00%, 6/1/20 | | | 5,000 | | | | 5,879,350 | |
Washington, Motor Vehicle Fuel Tax, 5.00%, 7/1/19 | | | 2,030 | | | | 2,400,576 | |
Washington, Motor Vehicle Fuel Tax, 5.00%, 7/1/21 | | | 1,500 | | | | 1,773,165 | |
Whitney, TX, Independent School District, (PSF Guaranteed), 0.00%, 8/15/21 | | | 620 | | | | 488,281 | |
Wink-Loving, TX, Independent School District, (PSF Guaranteed), 4.00%, 2/15/18 | | | 500 | | | | 508,685 | |
Wink-Loving, TX, Independent School District, (PSF Guaranteed), 4.00%, 2/15/19 | | | 815 | | | | 829,067 | |
| | | | | | | | |
| | | $ | 353,528,207 | |
| | | | | | | | |
|
Health Care — 0.0%(1) | |
Connecticut Health and Educational Facilities Authority, (Lawrence & Memorial Hospital), Series F, 5.00%, 7/1/18 | | $ | 85 | | | $ | 97,399 | |
| | | | | | | | |
| | | $ | 97,399 | |
| | | | | | | | |
|
Hospital — 7.2% | |
Beaver County, PA, Hospital Authority, (Heritage Valley Health System), 5.00%, 5/15/14 | | $ | 1,895 | | | $ | 1,959,051 | |
Beaver County, PA, Hospital Authority, (Heritage Valley Health System), 5.00%, 5/15/15 | | | 1,435 | | | | 1,535,177 | |
California Health Facilities Financing Authority, (Lucile Packard Children’s Hospital), 4.00%, 8/15/18 | | | 300 | | | | 332,175 | |
California Health Facilities Financing Authority, (Stanford Hospital and Clinics), 5.00%, 8/15/19 | | | 1,000 | | | | 1,167,410 | |
Fairfax County, VA, Industrial Development Authority, (Inova Health System), 4.00%, 5/15/15 | | | 200 | | | | 211,842 | |
Florence County, SC, Hospital Revenue, (McLeod Regional Medical Center), 5.00%, 11/1/18 | | | 870 | | | | 997,794 | |
Grand Traverse County, MI, Hospital Finance Authority, (Munson Healthcare), 5.00%, 7/1/16 | | | 1,160 | | | | 1,288,969 | |
Grand Traverse County, MI, Hospital Finance Authority, (Munson Healthcare), 5.00%, 7/1/17 | | | 2,355 | | | | 2,668,333 | |
Grand Traverse County, MI, Hospital Finance Authority, (Munson Healthcare), 5.00%, 7/1/20 | | | 445 | | | | 513,575 | |
Illinois Finance Authority, (Ascenison Health Credit Group), 5.00%, 11/15/22 | | | 1,000 | | | | 1,120,820 | |
Indiana Finance Authority Hospital Revenue, (Indiana University Health), 5.00%, 3/1/19 | | | 5,000 | | | | 5,718,150 | |
Indiana Finance Authority Hospital Revenue, (Indiana University Health), 5.00%, 3/1/20 | | | 6,395 | | | | 7,313,258 | |
Indiana Finance Authority Hospital Revenue, (Jackson County Schneck Memorial Hospital), 5.00%, 2/15/18 | | | 1,250 | | | | 1,375,475 | |
Massachusetts Health & Educational Facilities Authority, (Partners Healthcare System), 5.00%, 7/1/22 | | | 1,000 | | | | 1,103,160 | |
| | | | |
| | 11 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Short Term Fund
July 31, 2013
Portfolio of Investments (Unaudited) — continued
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Hospital (continued) | |
Michigan Hospital Finance Authority, (Ascension Health Senior Credit Group), 1.95% to 4/1/20 (Put Date), 11/15/47 | | $ | 5,000 | | | $ | 4,778,200 | |
Monroe County, NY, Industrial Development Corp., (Rochester General Hospital), 3.00%, 12/1/14 | | | 550 | | | | 567,584 | |
Monroe County, NY, Industrial Development Corp., (Rochester General Hospital), 3.00%, 12/1/15 | | | 415 | | | | 433,663 | |
New Hampshire Health and Education Facilities Authority, (Concord Hospital), 4.00% to 8/7/13 (Put Date), 10/1/17 | | | 500 | | | | 540,035 | |
New York Dormitory Authority, (Memorial Sloan Kettering Cancer Center), 4.00%, 7/1/15 | | | 225 | | | | 240,028 | |
New York Dormitory Authority, (Memorial Sloan Kettering Cancer Center), 4.00%, 7/1/16 | | | 225 | | | | 245,171 | |
New York Dormitory Authority, (New York Downtown Hospital), 5.00%, 2/15/16 | | | 525 | | | | 579,999 | |
North Carolina Medical Care Commission, (North Carolina Baptist Hospital), 5.00%, 6/1/18 | | | 2,000 | | | | 2,279,280 | |
Oregon Facilities Authority, (Providence Health System), 5.00%, 10/1/18 | | | 785 | | | | 906,816 | |
Oregon Facilities Authority, (Providence Health System), 5.00%, 10/1/19 | | | 575 | | | | 667,351 | |
San Benito, CA, Health Care District, 3.00%, 3/1/16 | | | 250 | | | | 261,793 | |
San Benito, CA, Health Care District, 4.00%, 3/1/17 | | | 400 | | | | 434,080 | |
San Benito, CA, Health Care District, 4.00%, 3/1/18 | | | 300 | | | | 327,993 | |
San Benito, CA, Health Care District, 4.00%, 3/1/19 | | | 600 | | | | 655,518 | |
Tarrant County, TX, Cultural Education Facilities Finance Corp., (Methodist Hospitals of Dallas), 5.00%, 10/1/17 | | | 800 | | | | 907,552 | |
Tarrant County, TX, Cultural Education Facilities Finance Corp., (Methodist Hospitals of Dallas), 5.00%, 10/1/19 | | | 1,250 | | | | 1,435,987 | |
Tarrant County, TX, Cultural Education Facilities Finance Corp., (Scott & White Healthcare), 5.00%, 8/15/19 | | | 1,295 | | | | 1,492,293 | |
Tarrant County, TX, Hospital District, 5.00%, 8/15/20 | | | 1,655 | | | | 1,873,890 | |
Wisconsin Health and Educational Facilities Authority, (Hospital Sisters Services Obligation), 4.00%, 8/15/17 | | | 1,000 | | | | 1,094,490 | |
Wisconsin Health and Educational Facilities Authority, (Hospital Sisters Services Obligation), 4.00%, 8/15/19 | | | 1,000 | | | | 1,090,070 | |
Wisconsin Health and Educational Facilities Authority, (Hospital Sisters Services Obligation), 5.00%, 8/15/16 | | | 1,000 | | | | 1,110,370 | |
Wisconsin Health and Educational Facilities Authority, (Hospital Sisters Services Obligation), 5.00%, 8/15/18 | | | 500 | | | | 572,955 | |
Wisconsin Health and Educational Facilities Authority, (Ministry Health Care), 5.00%, 8/15/18 | | | 1,190 | | | | 1,357,504 | |
Wisconsin Health and Educational Facilities Authority, (ProHealth Care, Inc.), 2.00%, 8/15/15 | | | 330 | | | | 338,217 | |
Wisconsin Health and Educational Facilities Authority, (ProHealth Care, Inc.), 3.00%, 8/15/17 | | | 135 | | | | 141,938 | |
Wisconsin Health and Educational Facilities Authority, (ProHealth Care, Inc.), 3.00%, 8/15/18 | | | 365 | | | | 384,283 | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Hospital (continued) | |
Wisconsin Health and Educational Facilities Authority, (ProHealth Care, Inc.), 5.00%, 8/15/18 | | $ | 1,695 | | | $ | 1,925,757 | |
Yavapai County, AZ, Industrial Development Authority, (Northern Arizona Healthcare System), 5.00%, 10/1/17 | | | 1,440 | | | | 1,644,840 | |
Yavapai County, AZ, Industrial Development Authority, (Northern Arizona Healthcare System), 5.00%, 10/1/18 | | | 2,185 | | | | 2,522,298 | |
Yavapai County, AZ, Industrial Development Authority, (Northern Arizona Healthcare System), 5.00%, 10/1/19 | | | 3,630 | | | | 4,215,846 | |
| | | | | | | | |
| | | $ | 62,330,990 | |
| | | | | | | | |
|
Housing — 1.2% | |
Minnesota Housing Finance Agency, 2.35%, 7/1/21 | | $ | 755 | | | $ | 731,550 | |
Minnesota Housing Finance Agency, 2.55%, 7/1/22 | | | 810 | | | | 764,608 | |
Virginia Housing Development Authority, 1.10%, 4/1/17 | | | 2,200 | | | | 2,187,064 | |
Virginia Housing Development Authority, 1.25%, 4/1/18 | | | 1,115 | | | | 1,096,658 | |
Virginia Housing Development Authority, 1.30%, 4/1/18 | | | 2,245 | | | | 2,236,020 | |
Virginia Housing Development Authority, 1.60%, 7/1/17 | | | 460 | | | | 461,927 | |
Virginia Housing Development Authority, 1.70%, 4/1/19 | | | 3,035 | | | | 2,995,332 | |
Virginia Housing Development Authority, 2.05%, 7/1/18 | | | 230 | | | | 231,776 | |
| | | | | | | | |
| | | $ | 10,704,935 | |
| | | | | | | | |
|
Industrial Development Revenue — 0.4% | |
Missouri Redevelopment Finance Board Cultural Facilities, (Nelson Gallery Foundation), 3.00%, 12/1/13 | | $ | 595 | | | $ | 600,456 | |
Ohio, 5.00%, 6/1/19 | | | 1,000 | | | | 1,153,480 | |
Tulsa County, OK, Industrial Authority Capital Improvements, 4.00%, 5/15/15 | | | 2,000 | | | | 2,124,620 | |
| | | | | | | | |
| | | $ | 3,878,556 | |
| | | | | | | | |
|
Insured – Education — 0.7% | |
Collier County, FL, School Board, (AGM), 5.00%, 2/15/22 | | $ | 1,525 | | | $ | 1,662,601 | |
Palm Beach County, FL, School District, (AGM), 5.00%, 8/1/22 | | | 3,000 | | | | 3,311,400 | |
University of Massachusetts Building Authority, (AMBAC), 5.25%, 11/1/17 | | | 1,275 | | | | 1,397,680 | |
| | | | | | | | |
| | | $ | 6,371,681 | |
| | | | | | | | |
|
Insured – Electric Utilities — 0.2% | |
New York Power Authority, (NPFG), 5.00%, 11/15/21 | | $ | 1,550 | | | $ | 1,764,675 | |
| | | | | | | | |
| | | $ | 1,764,675 | |
| | | | | | | | |
| | | | |
| | 12 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Short Term Fund
July 31, 2013
Portfolio of Investments (Unaudited) — continued
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Insured – Escrowed / Prerefunded — 2.3% | |
Anchorage, AK, (NPFG), Prerefunded to 3/1/15, 5.00%, 3/1/19 | | $ | 250 | | | $ | 267,962 | |
Central Puget Sound, WA, Regional Transit Authority, Sales and Use Tax Revenue, (AMBAC), Prerefunded to 5/1/15, 5.00%, 11/1/20 | | | 5,750 | | | | 6,212,012 | |
Coatesville, PA, School District, (AGM), Prerefunded to 8/15/14, 5.25%, 8/15/19 | | | 6,515 | | | | 6,852,738 | |
Cook County, IL, Community High School District No. 219, Niles Township, (FGIC), Escrowed to Maturity, 5.50%, 12/1/19 | | | 2,000 | | | | 2,441,000 | |
Henderson, NV, (FGIC), (NPFG), Prerefunded to 12/1/14, 5.00%, 6/1/22 | | | 700 | | | | 744,702 | |
Illinois State Toll Highway Authority, (AGM), Prerefunded to 7/1/16, 5.00%, 1/1/31 | | | 360 | | | | 403,780 | |
Massachusetts, (AGM), Prerefunded to 12/1/14, 5.00%, 11/1/24 | | | 375 | | | | 398,782 | |
Mount Union, PA, Area School District, (AGC), Prerefunded to 3/1/14, 4.60%, 3/1/25 | | | 1,000 | | | | 1,025,550 | |
Oregon Department of Administrative Services, (AGM), Prerefunded to 5/1/14, 5.00%, 5/1/17 | | | 1,235 | | | | 1,279,732 | |
| | | | | | | | |
| | | $ | 19,626,258 | |
| | | | | | | | |
|
Insured – General Obligations — 1.7% | |
Butler County, KS, Unified School District No. 375, (AGM), 5.00%, 9/1/23 | | $ | 1,000 | | | $ | 1,142,310 | |
Clackamas County, OR, School District No. 12, (AGM), 5.00%, 6/15/23 | | | 6,420 | | | | 7,141,929 | |
Forsyth County, GA, School District, (AGM), 5.00%, 2/1/15 | | | 5,000 | | | | 5,348,800 | |
Travis County, TX, Water Control & Improvement District No. 17, (BAM), 0.00%, 11/1/17 | | | 500 | | | | 459,990 | |
Washington, (XLCA), 0.00%, 12/1/16 | | | 200 | | | | 193,270 | |
| | | | | | | | |
| | | $ | 14,286,299 | |
| | | | | | | | |
|
Insured – Hospital — 0.2% | |
Carbon County, PA, Hospital Authority, (AGM), 3.00%, 11/15/15 | | $ | 1,000 | | | $ | 1,037,630 | |
Carbon County, PA, Hospital Authority, (AGM), 4.00%, 11/15/17 | | | 535 | | | | 576,703 | |
| | | | | | | | |
| | | $ | 1,614,333 | |
| | | | | | | | |
|
Insured – Lease Revenue / Certificates of Participation — 1.4% | |
Orange County, FL, School Board, (NPFG), 5.00%, 8/1/19 | | $ | 6,500 | | | $ | 7,046,715 | |
Palm Beach County, FL, School Board, (AGM), 5.00%, 8/1/23 | | | 4,655 | | | | 5,123,759 | |
| | | | | | | | |
| | | $ | 12,170,474 | |
| | | | | | | | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Insured – Special Tax Revenue — 0.6% | |
Hamilton County, OH, Sales Tax, (AMBAC), 5.00%, 12/1/20 | | $ | 1,600 | | | $ | 1,779,728 | |
Massachusetts, Special Obligation, Dedicated Tax Revenue, (FGIC), Prerefunded to 1/1/14, 5.25%, 1/1/29 | | | 2,300 | | | | 2,348,093 | |
Massachusetts, Special Obligation, Dedicated Tax Revenue, (FGIC), Prerefunded to 1/1/14, 5.75%, 1/1/32 | | | 1,200 | | | | 1,227,588 | |
| | | | | | | | |
| | | $ | 5,355,409 | |
| | | | | | | | |
|
Insured – Transportation — 1.1% | |
Central Puget Sound, WA, Regional Transportation Authority, (FGIC), (NPFG), 5.25%, 2/1/15 | | $ | 1,865 | | | $ | 2,001,481 | |
Florida Department of Transportation, (FGIC), (NPFG), 5.00%, 7/1/22 | | | 5,350 | | | | 5,976,538 | |
New York Thruway Authority, (AMBAC), 5.00%, 4/1/21 | | | 1,325 | | | | 1,447,139 | |
| | | | | | | | |
| | | $ | 9,425,158 | |
| | | | | | | | |
|
Insured – Water and Sewer — 0.1% | |
New Mexico Finance Authority, (NPFG), 5.00%, 6/15/19 | | $ | 1,050 | | | $ | 1,161,384 | |
| | | | | | | | |
| | | $ | 1,161,384 | |
| | | | | | | | |
|
Lease Revenue / Certificates of Participation — 3.2% | |
Arizona, 5.00%, 10/1/17 | | $ | 920 | | | $ | 1,034,006 | |
Cupertino, CA, 2.00%, 7/1/17 | | | 2,135 | | | | 2,194,396 | |
Cupertino, CA, 3.00%, 7/1/19 | | | 1,220 | | | | 1,294,444 | |
Montgomery County, MD, Lease Revenue Project, 5.00%, 6/1/18 | | | 2,395 | | | | 2,775,422 | |
Montgomery County, MD, Lease Revenue Project, 5.00%, 6/1/19 | | | 2,420 | | | | 2,831,545 | |
Montgomery County, MD, Lease Revenue Project, 5.00%, 6/1/20 | | | 660 | | | | 771,916 | |
Montgomery County, MD, Lease Revenue Project, 5.00%, 6/1/21 | | | 2,155 | | | | 2,511,221 | |
Ohio, 5.00%, 4/1/18 | | | 1,360 | | | | 1,571,113 | |
Orange County, FL, School Board, 5.00%, 8/1/13 | | | 500 | | | | 500,000 | |
Orange County, FL, School Board, 5.00%, 8/1/14 | | | 3,320 | | | | 3,474,978 | |
Orange County, FL, School Board, 5.00%, 8/1/15 | | | 5,000 | | | | 5,424,550 | |
Orange County, FL, School Board, 5.00%, 8/1/17 | | | 540 | | | | 608,040 | |
Orange County, FL, School Board, 5.00%, 8/1/18 | | | 675 | | | | 770,648 | |
Orange County, FL, School Board, 5.00%, 8/1/19 | | | 750 | | | | 860,708 | |
Virginia Resources Authority Infrastructure Revenue, (Pooled Funding Program), 4.00%, 11/1/19 | | | 1,000 | | | | 1,131,560 | |
| | | | | | | | |
| | | $ | 27,754,547 | |
| | | | | | | | |
| | | | |
| | 13 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Short Term Fund
July 31, 2013
Portfolio of Investments (Unaudited) — continued
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Other Revenue — 4.4% | |
Illinois Educational Facilities Authority, (University of Chicago), 1.875% to 2/12/15 (Put Date), 7/1/36 | | $ | 3,525 | | | $ | 3,568,146 | |
Illinois Unemployment Insurance Fund Building Receipts Revenue, 5.00%, 6/15/19 | | | 4,500 | | | | 4,844,385 | |
Illinois Unemployment Insurance Fund Building Receipts Revenue, 5.00%, 12/15/19 | | | 4,000 | | | | 4,306,120 | |
Illinois Unemployment Insurance Fund Building Receipts Revenue, 5.00%, 6/15/20 | | | 2,040 | | | | 2,164,114 | |
Michigan Finance Authority, (Unemployment Obligation Assessment), 5.00%, 7/1/22 | | | 6,000 | | | | 6,594,000 | |
Michigan Finance Authority, (Unemployment Obligation Assessment), 5.00%, 1/1/23 | | | 3,930 | | | | 4,252,299 | |
New Jersey Environmental Infrastructure Trust, 4.00%, 9/1/19 | | | 2,500 | | | | 2,835,050 | |
Pennsylvania Economic Development Financing Authority, 5.00%, 1/1/22 | | | 7,000 | | | | 7,907,900 | |
Virginia Public Building Authority, Public Facilities Revenue, 5.00%, 8/1/14 | | | 550 | | | | 576,680 | |
Virginia Public Building Authority, Public Facilities Revenue, 5.00%, 8/1/15 | | | 1,085 | | | | 1,183,670 | |
| | | | | | | | |
| | | $ | 38,232,364 | |
| | | | | | | | |
|
Special Tax Revenue — 7.9% | |
Battery Park City Authority, NY, 5.25%, 11/1/22 | | $ | 1,000 | | | $ | 1,012,290 | |
Catawba, NC, Limited Obligation Bonds, 4.00%, 10/1/16 | | | 1,045 | | | | 1,144,003 | |
Collier County, FL, Special Obligation, 5.00%, 10/1/15 | | | 2,605 | | | | 2,849,557 | |
Hoover, AL, Board of Education, 5.00%, 2/15/19 | | | 2,155 | | | | 2,488,120 | |
Los Angeles County, CA, Metropolitan Transportation Authority, Sales Tax Revenue, 5.00%, 7/1/15 | | | 3,000 | | | | 3,267,150 | |
Los Angeles County, CA, Metropolitan Transportation Authority, Sales Tax Revenue, 5.00%, 7/1/16 | | | 3,250 | | | | 3,658,785 | |
Los Angeles County, CA, Metropolitan Transportation Authority, Sales Tax Revenue, 5.00%, 7/1/18 | | | 5,750 | | | | 6,769,245 | |
Los Angeles County, CA, Metropolitan Transportation Authority, Sales Tax Revenue, 5.00%, 7/1/21 | | | 5,000 | | | | 5,926,400 | |
Metropolitan Pier & Exposition Authority, IL, (McCormick Place), 5.00%, 12/15/20 | | | 5,000 | | | | 5,763,650 | |
Metropolitan Pier & Exposition Authority, IL, (McCormick Place), 5.00%, 12/15/22 | | | 1,000 | | | | 1,126,990 | |
New Mexico, Severance Tax, 5.00%, 7/1/15 | | | 1,425 | | | | 1,549,887 | |
New York Dormitory Authority, Personal Income Tax Revenue, 5.00%, 2/15/17 | | | 2,890 | | | | 3,299,368 | |
New York Dormitory Authority, Personal Income Tax Revenue, 5.00%, 2/15/18 | | | 11,440 | | | | 13,312,957 | |
New York, NY, Transitional Finance Authority, 5.00%, 11/1/19 | | | 6,530 | | | | 7,731,389 | |
Phoenix, AZ, Civic Improvement Corp., Excise Tax Revenue, 5.00%, 7/1/19 | | | 4,665 | | | | 5,467,940 | |
Portland, OR, Gas Tax Revenue, 5.00%, 2/1/20 | | | 1,120 | | | | 1,324,075 | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Special Tax Revenue (continued) | |
Regional Public Transportation Authority, AZ, Excise Tax Revenue, (Maricopa County Public Transportation Fund), 5.00%, 7/1/17 | | $ | 145 | | | $ | 164,710 | |
Watauga, NC, Public Facilities Corp., 4.00%, 6/1/19 | | | 550 | | | | 612,981 | |
Westminster, CO, Sales & Use Tax, 5.00%, 12/1/19 | | | 1,135 | | | | 1,340,753 | |
| | | | | | | | |
| | | $ | 68,810,250 | |
| | | | | | | | |
|
Transportation — 2.9% | |
Dallas and Fort Worth, TX, (Dallas/Fort Worth International Airport), 5.00%, 11/1/16(2) | | $ | 1,000 | | | $ | 1,122,430 | |
Dallas and Fort Worth, TX, (Dallas/Fort Worth International Airport), 5.00%, 11/1/17(2) | | | 2,000 | | | | 2,281,620 | |
Florida Department of Transportation, 5.00%, 7/1/22 | | | 1,000 | | | | 1,120,940 | |
Kansas Department of Transportation, 4.00%, 9/1/15 | | | 1,000 | | | | 1,074,780 | |
Maryland Department of Transportation, 4.00%, 5/15/16 | | | 1,305 | | | | 1,425,099 | |
Maryland Department of Transportation, 5.25%, 12/15/17 | | | 1,900 | | | | 2,238,181 | |
Mesa, AZ, Highway Revenue, 5.00%, 7/1/20 | | | 1,225 | | | | 1,321,812 | |
Mesa, AZ, Highway Revenue, 5.00%, 7/1/21 | | | 1,550 | | | | 1,668,482 | |
New Jersey Turnpike Authority, 5.00%, 1/1/21 | | | 5,000 | | | | 5,613,300 | |
Ohio Turnpike Commission, 5.50%, 2/15/20(2) | | | 745 | | | | 861,339 | |
Ohio, Major New State Infrastructure, 5.50%, 6/15/14 | | | 405 | | | | 423,792 | |
San Bernardino County, CA, Transportation Authority, 4.00%, 3/1/22 | | | 425 | | | | 467,088 | |
Texas Transportation Commission, 5.00%, 4/1/23 | | | 4,635 | | | | 5,105,638 | |
| | | | | | | | |
| | | $ | 24,724,501 | |
| | | | | | | | |
|
Water and Sewer — 6.3% | |
Alabama Drinking Water Finance Authority, 3.00%, 8/15/13 | | $ | 1,000 | | | $ | 1,001,110 | |
Alabama Drinking Water Finance Authority, 3.00%, 8/15/14 | | | 3,135 | | | | 3,225,601 | |
California Department of Water Resources, 5.00%, 12/1/24 | | | 1,965 | | | | 2,245,288 | |
East Bay, CA, Municipal Utility District, Water System Revenue, 5.00%, 6/1/14 | | | 1,145 | | | | 1,190,983 | |
East Bay, CA, Municipal Utility District, Water System Revenue, 5.00%, 6/1/15 | | | 3,510 | | | | 3,805,963 | |
East Bay, CA, Municipal Utility District, Water System Revenue, 5.00%, 6/1/16 | | | 3,815 | | | | 4,278,179 | |
East Bay, CA, Municipal Utility District, Water System Revenue, 5.00%, 6/1/18 | | | 1,000 | | | | 1,176,210 | |
East Bay, CA, Municipal Utility District, Water System Revenue, 5.00%, 6/1/20 | | | 2,000 | | | | 2,391,380 | |
East Bay, CA, Municipal Utility District, Water System Revenue, 5.00%, 6/1/21 | | | 1,000 | | | | 1,194,040 | |
Garland, TX, Water & Sewer System, 2.00%, 3/1/17 | | | 295 | | | | 304,295 | |
Gwinnett County, GA, Water and Sewer Authority, 4.00%, 8/1/16 | | | 500 | | | | 548,375 | |
Indiana Finance Authority, 5.00%, 2/1/23 | | | 1,000 | | | | 1,128,850 | |
| | | | |
| | 14 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Short Term Fund
July 31, 2013
Portfolio of Investments (Unaudited) — continued
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Water and Sewer (continued) | |
Michigan Finance Authority, (Revolving Fund - Clean Water), 5.00%, 10/1/19 | | $ | 1,455 | | | $ | 1,720,916 | |
Michigan Municipal Bond Authority, (Revolving Fund - Clean Water), 5.00%, 10/1/14 | | | 2,310 | | | | 2,438,852 | |
Michigan Municipal Bond Authority, (Revolving Fund - Clean Water), 5.00%, 10/1/19 | | | 1,975 | | | | 2,267,438 | |
Montgomery, AL, Water Works & Sanitary Sewer Board, 4.00%, 3/1/18 | | | 1,000 | | | | 1,117,740 | |
New York Environmental Facilities Corp., 5.00%, 8/15/20 | | | 4,235 | | | | 5,065,018 | |
Ohio Water Development Authority, Water Pollution Control, (Water Quality), 5.00%, 12/1/19 | | | 1,020 | | | | 1,214,290 | |
Ohio Water Development Authority, Water Pollution Control, (Water Quality), 5.00%, 12/1/21 | | | 3,000 | | | | 3,523,050 | |
Palm Coast, FL, Utility System, 5.00%, 10/1/21 | | | 3,285 | | | | 3,767,238 | |
Palm Coast, FL, Utility System, 5.00%, 10/1/22 | | | 2,650 | | | | 3,021,159 | |
Richmond, VA, Public Utility Revenue, 5.00%, 1/15/18 | | | 1,000 | | | | 1,129,100 | |
Seattle, WA, Solid Waste Revenue, 5.00%, 8/1/19 | | | 275 | | | | 323,526 | |
Tohopekaliga, FL, Utility System, 5.00%, 10/1/19 | | | 1,165 | | | | 1,377,170 | |
Tohopekaliga, FL, Utility System, 5.00%, 10/1/20 | | | 1,825 | | | | 2,159,030 | |
Tucson, AZ, Water System Revenue, 5.00%, 7/1/18 | | | 1,500 | | | | 1,749,915 | |
West Harris County, TX, Regional Water Authority, 4.00%, 12/15/19 | | | 540 | | | | 595,798 | |
West Harris County, TX, Regional Water Authority, 4.00%, 12/15/20 | | | 500 | | | | 545,230 | |
| | | | | | | | |
| | | $ | 54,505,744 | |
| | | | | | | | |
| |
Total Tax-Exempt Municipal Securities — 97.3% (identified cost $837,246,742) | | | $ | 843,890,529 | |
| |
|
Taxable Municipal Securities — 0.0%(1) | |
| | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
|
Education — 0.0%(1) | |
Virginia Public School Authority, 4.167%, 8/1/18 | | $ | 225 | | | $ | 243,680 | |
| | | | | | | | |
| |
Total Taxable Municipal Securities — 0.0%(1) (identified cost $225,000) | | | $ | 243,680 | |
| | | | | | | | |
| | | | | | | | |
Short-Term Investments — 1.2% | |
| | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Short-Term Investments – Tax-Exempt — 1.2% | |
Texas, 2.50%, 8/30/13 | | $ | 10,000 | | | $ | 10,019,600 | |
| | | | | | | | |
| |
Total Short-Term Investments — 1.2% (identified cost $10,018,028) | | | $ | 10,019,600 | |
| | | | | | | | |
| |
Total Investments — 98.5% (identified cost $847,489,770) | | | $ | 854,153,809 | |
| |
| |
Other Assets, Less Liabilities — 1.5% | | | $ | 12,855,098 | |
| |
| |
Net Assets — 100.0% | | | $ | 867,008,907 | |
| |
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
| | | | |
AGC | | – | | Assured Guaranty Corp. |
AGM | | – | | Assured Guaranty Municipal Corp. |
AMBAC | | – | | AMBAC Financial Group, Inc. |
BAM | | – | | Build America Mutual Assurance Co. |
FGIC | | – | | Financial Guaranty Insurance Company |
NPFG | | – | | National Public Finance Guaranty Corp. |
PSF | | – | | Permanent School Fund |
XLCA | | – | | XL Capital Assurance, Inc. |
At July 31, 2013, the concentration of the Fund’s investments in the various states, determined as a percentage of net assets, is less than 10% individually.
The Fund invests primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at July 31, 2013, 8.4% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from less than 0.05% to 4.0% of total investments.
(1) | Amount is less than 0.05%. |
(2) | When-issued security. |
| | | | |
| | 15 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Intermediate Term Fund
July 31, 2013
Portfolio of Investments (Unaudited)
| | | | | | | | |
Tax-Exempt Investments — 96.9% | |
| | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
| | |
Bond Bank — 1.5% | | | | | | | | |
Alaska Municipal Bond Bank Authority, 5.00%, 6/1/30 | | $ | 1,500 | | | $ | 1,569,885 | |
Connecticut, (Revolving Fund), 5.00%, 3/1/26 | | | 2,000 | | | | 2,264,200 | |
New Hampshire Municipal Bond Bank, 5.00%, 1/15/21 | | | 1,330 | | | | 1,544,409 | |
| |
| | | | | | $ | 5,378,494 | |
| |
|
Education — 5.9% | |
Alabama Public School and College Authority, 5.00%, 12/1/24 | | $ | 2,500 | | | $ | 2,795,425 | |
Florida Board of Governors, (Florida University System), 4.00%, 7/1/23 | | | 2,000 | | | | 2,099,480 | |
Illinois Finance Authority, (University of Chicago), 5.00%, 10/1/30 | | | 1,250 | | | | 1,329,125 | |
Metropolitan Government of Nashville & Davidson County, TN, Health & Educational Facilities Board, (Vanderbilt University), 5.00%, 10/1/27 | | | 800 | | | | 886,256 | |
Nevada System of Higher Education, 5.00%, 7/1/25 | | | 1,860 | | | | 2,071,426 | |
New Jersey Educational Facilities Authority, (Princeton University), 5.00%, 7/1/30 | | | 650 | | | | 716,892 | |
New York Dormitory Authority, (Cornell University), 5.00%, 7/1/31 | | | 5,000 | | | | 5,339,950 | |
Ohio State University, General Receipts, 5.00%, 6/1/28 | | | 1,250 | | | | 1,351,787 | |
University of Colorado, Enterprise Revenue, 5.00%, 6/1/18 | | | 500 | | | | 581,970 | |
University of Colorado, Enterprise Revenue, 5.00%, 6/1/26 | | | 1,165 | | | | 1,288,607 | |
Vermont Educational & Health Buildings Financing Agency, (Middlebury College), 5.00%, 11/1/28 | | | 200 | | | | 218,234 | |
Virginia College Building Authority, (Public Higher Education Financing), 5.00%, 9/1/20 | | | 1,455 | | | | 1,715,925 | |
| |
| | | | | | $ | 20,395,077 | |
| |
|
Electric Utilities — 2.6% | |
California Department of Water Resources, Electric Revenue, 5.00%, 5/1/22 | | $ | 1,500 | | | $ | 1,734,870 | |
Colorado Springs, CO, Utilities System Revenue, 5.00%, 11/15/23 | | | 1,000 | | | | 1,136,760 | |
Energy Northwest, WA, (Columbia Generating Station), 5.00%, 7/1/21 | | | 2,500 | | | | 2,939,550 | |
Huntsville, AL, Electric System Revenue, 5.00%, 12/1/24 | | | 1,045 | | | | 1,177,924 | |
Snohomish County, WA, Public Utility District No. 1, 5.00%, 12/1/18 | | | 1,680 | | | | 1,955,570 | |
| |
| | | | | | $ | 8,944,674 | |
| |
|
Escrowed / Prerefunded — 1.9% | |
Cypress-Fairbanks, TX, Independent School District, (PSF Guaranteed), Prerefunded to 2/15/14, 5.125%, 2/15/24 | | $ | 1,320 | | | $ | 1,355,257 | |
Mansfield, TX, Independent School District, (PSF Guaranteed), Prerefunded to 2/15/14, 5.00%, 2/15/29 | | | 5,000 | | | | 5,130,150 | |
University of Texas, Prerefunded to 8/15/16, 5.00%, 8/15/18 | | | 20 | | | | 22,528 | |
| |
| | | | | | $ | 6,507,935 | |
| |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
General Obligations — 43.7% | |
Addison, TX, 5.00%, 2/15/24(1) | | $ | 460 | | | $ | 526,079 | |
Anchor Bay, MI, School District, 2.00%, 5/1/20 | | | 1,680 | | | | 1,600,402 | |
Arlington County, VA, 3.00%, 8/15/13 | | | 3,420 | | | | 3,423,796 | |
Arlington County, VA, 5.00%, 8/15/14 | | | 3,565 | | | | 3,744,997 | |
Benton County, WA, Richland School District No. 400, 4.00%, 12/1/25 | | | 2,000 | | | | 2,058,000 | |
Berks County, PA, 5.00%, 11/15/29 | | | 1,020 | | | | 1,097,908 | |
Bloomfield, CT, 4.00%, 10/15/20 | | | 140 | | | | 156,211 | |
Brazos, TX, Independent School District, (PSF Guaranteed), 3.00%, 2/15/20 | | | 405 | | | | 431,313 | |
Brenham, TX, Independent School District, (PSF Guaranteed), 0.00%, 2/15/29 | | | 1,355 | | | | 724,762 | |
California, 5.25%, 2/1/23 | | | 3,000 | | | | 3,511,500 | |
Cambridge, MA, 5.00%, 1/1/19 | | | 3,430 | | | | 4,066,025 | |
Charlotte, NC, 5.00%, 6/1/29 | | | 2,500 | | | | 2,764,250 | |
Chippewa Valley Schools, MI, 5.25%, 5/1/25 | | | 2,100 | | | | 2,426,319 | |
Clark County, WA, Evergreen School District No. 114, 3.00%, 6/1/17 | | | 2,000 | | | | 2,138,440 | |
Commonwealth of Massachusetts, 5.00%, 10/1/24 | | | 475 | | | | 545,860 | |
Commonwealth of Massachusetts, 5.00%, 4/1/26 | | | 1,500 | | | | 1,666,050 | |
Connecticut, 5.00%, 12/1/20 | | | 50 | | | | 56,225 | |
Conroe, TX, Independent School District, (PSF Guaranteed), 5.00%, 2/15/24 | | | 1,000 | | | | 1,158,370 | |
Coronado, CA, Unified School District, 5.00%, 8/1/26 | | | 990 | | | | 1,107,721 | |
Dare County, NC, 5.00%, 6/1/26 | | | 1,090 | | | | 1,184,841 | |
Dare County, NC, 5.00%, 6/1/27 | | | 1,310 | | | | 1,406,783 | |
Denver City, TX, Independent School District, (PSF Guaranteed), 2.00%, 2/15/30(1) | | | 1,000 | | | | 1,050,380 | |
Denver City, TX, Independent School District, (PSF Guaranteed), 2.00%, 2/15/31(1) | | | 1,415 | | | | 1,478,618 | |
Edgewood City, OH, School District, 5.25%, 12/1/33 | | | 4,500 | | | | 4,873,410 | |
Florida Board of Public Education, Full Faith and Credit, Capital Outlay, 5.00%, 6/1/22 | | | 4,000 | | | | 4,704,920 | |
Foothill-De Anza, CA, Community College District, 4.00%, 8/1/19 | | | 550 | | | | 617,309 | |
Forsan, TX, Independent School District, (PSF Guaranteed), 5.00%, 2/15/31(1) | | | 1,560 | | | | 1,619,280 | |
Garland, TX, 5.00%, 2/15/25 | | | 1,000 | | | | 1,108,780 | |
Grand Blanc, MI, Community Schools, 5.00%, 5/1/20 | | | 1,280 | | | | 1,478,758 | |
Grand Prairie, TX, Independent School District, (PSF Guaranteed), 4.00%, 2/15/22 | | | 2,180 | | | | 2,384,397 | |
Groton, CT, 4.00%, 7/15/19 | | | 50 | | | | 56,545 | |
Guilford County, NC, 5.00%, 2/1/22 | | | 5,000 | | | | 5,761,750 | |
Hamilton County, TN, 5.00%, 1/1/18 | | | 500 | | | | 582,660 | |
Hartford County, CT, Metropolitan District, 5.00%, 2/1/19 | | | 1,255 | | | | 1,477,562 | |
Hempfield, PA, School District, 5.00%, 10/15/27 | | | 1,000 | | | | 1,085,310 | |
| | | | |
| | 16 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Intermediate Term Fund
July 31, 2013
Portfolio of Investments (Unaudited) — continued
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
General Obligations (continued) | |
Hilliard, OH, School District, 3.00%, 12/1/21 | | $ | 1,100 | | | $ | 1,133,088 | |
Houston, TX, Community College System, 5.25%, 2/15/25 | | | 1,000 | | | | 1,134,470 | |
Howard County, MD, 5.00%, 8/15/19 | | | 2,000 | | | | 2,390,680 | |
Illinois, 5.50%, 7/1/33 | | | 1,500 | | | | 1,522,830 | |
Las Vegas Valley Water District, NV, 5.00%, 2/1/27 | | | 900 | | | | 961,362 | |
Lynchburg, VA, 3.00%, 12/1/16 | | | 250 | | | | 267,910 | |
Maryland, 5.00%, 3/1/16 | | | 7,250 | | | | 8,071,207 | |
Maryland, 5.00%, 3/1/23 | | | 5,615 | | | | 6,539,903 | |
Massachusetts, 5.00%, 6/1/24 | | | 3,000 | | | | 3,440,520 | |
Massachusetts, 5.00%, 8/1/33 | | | 2,000 | | | | 2,123,120 | |
Massachusetts, 5.25%, 8/1/22 | | | 1,000 | | | | 1,203,580 | |
Mecklenburg County, NC, 5.00%, 3/1/19 | | | 50 | | | | 59,449 | |
Mississippi Development Bank, Special Obligation Bond, (Harrison County Highway), 5.00%, 1/1/20 | | | 2,640 | | | | 3,069,766 | |
Mississippi Development Bank, Special Obligation Bond, (Laurel Highway), 4.00%, 1/1/23 | | | 1,730 | | | | 1,831,603 | |
Mississippi Development Bank, Special Obligation Bond, (Madison County Highway), 5.00%, 1/1/22 | | | 1,500 | | | | 1,722,855 | |
Mountain View-Los Altos, CA, Union High School District, 0.00%, 8/1/25 | | | 2,300 | | | | 1,411,717 | |
Mountain View-Los Altos, CA, Union High School District, 0.00%, 8/1/26 | | | 500 | | | | 289,245 | |
New Braunfels, TX, Independent School District, (PSF Guaranteed), 5.00%, 2/1/26 | | | 120 | | | | 133,132 | |
New Canaan, CT, 4.00%, 4/1/24 | | | 245 | | | | 259,773 | |
New York, 5.00%, 2/15/20 | | | 1,210 | | | | 1,433,402 | |
New York, 5.00%, 3/1/25 | | | 3,000 | | | | 3,449,370 | |
North Carolina, 5.00%, 6/1/17 | | | 5,000 | | | | 5,760,700 | |
North Carolina, 5.00%, 6/1/18 | | | 1,000 | | | | 1,177,240 | |
Ohio, 5.00%, 9/15/29 | | | 1,000 | | | | 1,078,720 | |
Onslow County, NC, 5.00%, 12/1/21 | | | 1,740 | | | | 2,051,582 | |
Orange Beach, AL, 5.00%, 2/1/24 | | | 1,270 | | | | 1,443,812 | |
Oregon, 5.00%, 11/1/21 | | | 2,910 | | | | 3,463,045 | |
Oregon, 5.00%, 8/1/25 | | | 500 | | | | 573,775 | |
Oregon, 5.00%, 8/1/26 | | | 555 | | | | 628,576 | |
Palo Alto, CA, 5.00%, 8/1/28 | | | 645 | | | | 716,834 | |
Pennsbury, PA, School District, 4.00%, 8/1/31 | | | 500 | | | | 503,380 | |
Pennsylvania, 5.00%, 6/1/18 | | | 10,000 | | | | 11,695,500 | |
Richardson, TX, 5.00%, 2/15/20 | | | 50 | | | | 59,106 | |
Rowland, CA, Unified School District, 5.00%, 8/1/30 | | | 1,000 | | | | 1,056,410 | |
Saint Augustine, FL, Capital Improvement, 3.00%, 10/1/22 | | | 170 | | | | 163,023 | |
Saint Augustine, FL, Capital Improvement, 3.00%, 10/1/23 | | | 175 | | | | 163,807 | |
Saint Augustine, FL, Capital Improvement, 4.00%, 10/1/24 | | | 160 | | | | 161,224 | |
Saint Augustine, FL, Capital Improvement, 4.00%, 10/1/26 | | | 125 | | | | 122,207 | |
San Jose, CA, Unified School District, 5.00%, 8/1/26 | | | 1,000 | | | | 1,121,020 | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
General Obligations (continued) | |
St. Louis County, MO, School District C-2 Parkway, 5.00%, 3/1/21 | | $ | 1,000 | | | $ | 1,189,370 | |
Tamalpais, CA, Union High School District, 5.00%, 8/1/24 | | | 1,225 | | | | 1,415,059 | |
Tamalpais, CA, Union High School District, 5.00%, 8/1/25 | | | 1,000 | | | | 1,141,540 | |
Tatum, TX, Independent School District, (PSF Guaranteed), 5.00%, 2/15/30 | | | 515 | | | | 561,350 | |
United Independent School District, TX, (PSF Guaranteed), 5.00%, 8/15/21 | | | 1,000 | | | | 1,186,190 | |
Utah, 5.00%, 7/1/19 | | | 2,525 | | | | 3,018,890 | |
Vermont, 5.00%, 8/15/23 | | | 1,185 | | | | 1,381,722 | |
Washington, 5.00%, 7/1/22 | | | 1,490 | | | | 1,746,384 | |
Washington, 5.00%, 7/1/24 | | | 950 | | | | 1,107,063 | |
| | | | | | | | |
| | | | | | $ | 151,212,042 | |
| | | | | | | | |
|
Health Care – Miscellaneous — 0.7% | |
Pennsylvania Economic Development Financing Authority, 5.00%, 1/1/22 | | $ | 2,225 | | | $ | 2,513,583 | |
| | | | | | | | |
| | | | | | $ | 2,513,583 | |
| | | | | | | | |
|
Hospital — 4.6% | |
California Health Facilities Financing Authority, (Memorial Health Services), 5.00%, 10/1/26 | | $ | 1,000 | | | $ | 1,075,860 | |
Cobb County, GA, Kennestone Hospital Authority, (Wellstar Health System Obligation), 5.00%, 4/1/30 | | | 325 | | | | 337,087 | |
Fairfax County, VA, Industrial Development Authority, (Inova Health System), 5.00%, 5/15/24 | | | 500 | | | | 553,710 | |
Maryland Health and Higher Educational Facilities Authority, (Johns Hopkins Health Care), 5.00%, 5/15/18 | | | 1,000 | | | | 1,150,970 | |
Massachusetts Development Finance Agency, (Partners Healthcare System), 5.00%, 7/1/26 | | | 1,500 | | | | 1,613,535 | |
Michigan Hospital Finance Authority, (Ascension Health Senior Credit Group), 1.95% to 4/1/20 (Put Date), 11/15/47 | | | 5,000 | | | | 4,778,200 | |
Tarrant County, TX, Cultural Education Facilities Finance Corp., (Methodist Hospitals of Dallas), 5.00%, 10/1/20 | | | 1,500 | | | | 1,711,560 | |
Tift County, GA, Hospital Authority, 5.00%, 12/1/26 | | | 520 | | | | 546,962 | |
Utah County Hospital Revenue, (IHC Health Services, Inc.), 5.00%, 5/15/23 | | | 1,000 | | | | 1,113,660 | |
Wisconsin Health and Educational Facilities Authority, (Ascension Health Credit Group), 5.00%, 11/15/27 | | | 2,720 | | | | 2,954,600 | |
| | | | | | | | |
| | | | | | $ | 15,836,144 | |
| | | | | | | | |
|
Housing — 0.3% | |
Virginia Housing Development Authority, 2.45%, 7/1/19 | | $ | 1,200 | | | $ | 1,211,916 | |
| | | | | | | | |
| | | | | | $ | 1,211,916 | |
| | | | | | | | |
| | | | |
| | 17 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Intermediate Term Fund
July 31, 2013
Portfolio of Investments (Unaudited) — continued
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Insured – Education — 0.9% | |
Palm Beach County, FL, School District, (AGM), 5.00%, 8/1/22 | | $ | 2,725 | | | $ | 3,007,855 | |
| | | | | | | | |
| | | | | | $ | 3,007,855 | |
| | | | | | | | |
|
Insured – Escrowed / Prerefunded — 1.7% | |
Cook County, IL, Community High School District No. 219, Niles Township, (FGIC), Escrowed to Maturity, 5.50%, 12/1/19 | | $ | 2,000 | | | $ | 2,441,000 | |
Salt Lake and Sandy, UT, Metropolitan Water District, (AMBAC), Prerefunded to 7/1/14, 5.00%, 7/1/17 | | | 1,230 | | | | 1,284,797 | |
Simi Valley, CA, Unified School District, (NPFG), Prerefunded to 8/1/14, 5.00%, 8/1/28 | | | 2,000 | | | | 2,095,480 | |
| | | | | | | | |
| | | | | | $ | 5,821,277 | |
| | | | | | | | |
|
Insured – General Obligations — 0.5% | |
Frisco, TX, (AGM), 5.50%, 2/15/29 | | $ | 1,190 | | | $ | 1,320,686 | |
Texas Transportation Commission, (NPFG), 5.00%, 4/1/29 | | | 250 | | | | 262,092 | |
| | | | | | | | |
| | | | | | $ | 1,582,778 | |
| | | | | | | | |
|
Insured – Lease Revenue / Certificates of Participation — 1.3% | |
Palm Beach County, FL, School Board, (AGM), 5.00%, 8/1/23 | | $ | 4,000 | | | $ | 4,402,800 | |
| | | | | | | | |
| | | | | | $ | 4,402,800 | |
| | | | | | | | |
|
Insured – Water and Sewer — 2.5% | |
Massachusetts Water Resources Authority, (AGM), 5.50%, 8/1/20 | | $ | 2,000 | | | $ | 2,437,480 | |
New Mexico Finance Authority, (AMBAC), 5.00%, 6/1/23 | | | 1,000 | | | | 1,035,560 | |
New Mexico Finance Authority, (NPFG), 5.00%, 6/15/19 | | | 1,000 | | | | 1,106,080 | |
New Mexico Finance Authority, (NPFG), 5.00%, 6/15/25 | | | 1,275 | | | | 1,356,103 | |
Phoenix, AZ, Civic Improvement Corp., Water System Revenue, (NPFG), 4.75%, 7/1/22 | | | 2,625 | | | | 2,814,787 | |
| | | | | | | | |
| | | | | | $ | 8,750,010 | |
| | | | | | | | |
|
Lease Revenue / Certificates of Participation — 2.0% | |
Charleston, SC, Educational Excellence Finance Corp., (Charleston County School), 5.00%, 12/1/23 | | $ | 1,000 | | | $ | 1,143,920 | |
Charlotte, NC, (Equipment Acquisition Public Facility), 5.00%, 12/1/30 | | | 1,130 | | | | 1,193,438 | |
Colorado, Building Excellent Schools Today, 5.00%, 3/15/21 | | | 1,870 | | | | 2,167,517 | |
Orange County, FL, School Board, 5.00%, 8/1/17 | | | 500 | | | | 563,000 | |
Orange County, FL, School Board, 5.00%, 8/1/18 | | | 500 | | | | 570,850 | |
Seminole County, FL, School Board, 5.00%, 7/1/22 | | | 1,000 | | | | 1,137,440 | |
| | | | | | | | |
| | | | | | $ | 6,776,165 | |
| | | | | | | | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Other Revenue — 0.9% | |
Midpeninsula Regional Open Space District, CA, 5.00%, 9/1/26 | | $ | 1,205 | | | $ | 1,323,247 | |
New Jersey Environmental Infrastructure Trust, 5.00%, 9/1/24 | | | 1,000 | | | | 1,167,190 | |
Oregon State Department of Administrative Services, Lottery Revenue, 5.00%, 4/1/27 | | | 500 | | | | 551,990 | |
| | | | | | | | |
| | | | | | $ | 3,042,427 | |
| | | | | | | | |
|
Special Tax Revenue — 7.7% | |
Los Angeles County, CA, Metropolitan Transportation Authority, Sales Tax Revenue, 5.00%, 7/1/20 | | $ | 5,000 | | | $ | 5,944,900 | |
Marana, AZ, Excise Tax Revenue, 4.00%, 7/1/20 | | | 765 | | | | 837,981 | |
Marana, AZ, Excise Tax Revenue, 5.00%, 7/1/23 | | | 450 | | | | 508,163 | |
Mesa, AZ, 5.00%, 7/1/27 | | | 1,750 | | | | 1,869,770 | |
Metropolitan Pier & Exposition Authority, IL, (McCormick Place), 5.00%, 12/15/22 | | | 1,500 | | | | 1,690,485 | |
New York Dormitory Authority, Personal Income Tax Revenue, 5.00%, 8/15/13 | | | 4,200 | | | | 4,207,854 | |
New York Dormitory Authority, Personal Income Tax Revenue, 5.00%, 2/15/23 | | | 500 | | | | 583,965 | |
New York, NY, Transitional Finance Authority, (Future Tax), 5.00%, 11/1/23 | | | 1,000 | | | | 1,144,890 | |
New York, NY, Transitional Finance Authority, (Future Tax), 5.00%, 11/1/31 | | | 3,220 | | | | 3,430,813 | |
Riverside County, CA, Transportation Commission, Sales Tax Revenue, 5.25%, 6/1/29 | | | 3,000 | | | | 3,304,800 | |
Riverside County, CA, Transportation Commission, Sales Tax Revenue, 5.25%, 6/1/30 | | | 3,000 | | | | 3,289,440 | |
| | | | | | | | |
| | | | | | $ | 26,813,061 | |
| | | | | | | | |
|
Transportation — 6.8% | |
Dallas and Fort Worth, TX, (Dallas/Fort Worth International Airport), 5.00%, 11/1/18(1) | | $ | 1,000 | | | $ | 1,153,160 | |
Dallas and Fort Worth, TX, (Dallas/Fort Worth International Airport), 5.00%, 11/1/19(1) | | | 2,500 | | | | 2,873,450 | |
Dallas and Fort Worth, TX, (Dallas/Fort Worth International Airport), 5.25%, 11/1/32(1) | | | 4,500 | | | | 4,625,370 | |
Metropolitan Transportation Authority, NY, 5.00%, 11/15/31 | | | 5,995 | | | | 6,234,620 | |
Metropolitan Transportation Authority, NY, 5.00%, 11/15/32 | | | 1,000 | | | | 1,034,360 | |
Missouri Highway and Transit Commission, 5.00%, 2/1/22 | | | 2,100 | | | | 2,362,269 | |
North Carolina, Grant Anticipation Revenue, 5.25%, 3/1/20 | | | 1,950 | | | | 2,289,417 | |
Virginia Transportation Board, 5.00%, 3/15/20 | | | 2,500 | | | | 2,905,950 | |
| | | | | | | | |
| | | | | | $ | 23,478,596 | |
| | | | | | | | |
|
Water and Sewer — 10.2% | |
Central Utah Water Conservancy District, 5.00%, 10/1/23 | | $ | 495 | | | $ | 566,453 | |
Columbus, GA, Water & Sewer Revenue, 5.00%, 5/1/25 | | | 1,000 | | | | 1,116,440 | |
East Richland County, SC, Public Service District, Sewer System Revenue, 4.00%, 1/1/22 | | | 1,135 | | | | 1,225,868 | |
| | | | |
| | 18 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Intermediate Term Fund
July 31, 2013
Portfolio of Investments (Unaudited) — continued
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Water and Sewer (continued) | |
Hamilton County, OH, Sewer System, 5.00%, 12/1/24 | | $ | 1,000 | | | $ | 1,151,090 | |
Hamilton County, OH, Sewer System, 5.00%, 12/1/28 | | | 2,210 | | | | 2,413,055 | |
Lafayette, CO, Water Revenue, 5.00%, 12/1/24 | | | 1,080 | | | | 1,217,376 | |
Lafayette, CO, Water Revenue, 5.00%, 12/1/27 | | | 665 | | | | 725,023 | |
Lakeland, FL, Water and Wastewater Revenue, 5.00%, 10/1/26 | | | 1,070 | | | | 1,167,809 | |
Louisville and Jefferson County, KY, Metro Government Board of Water Works, 5.00%, 11/15/16 | | | 5,295 | | | | 6,013,584 | |
Massachusetts Water Pollution Abatement Trust, 5.00%, 8/1/23 | | | 1,700 | | | | 1,949,441 | |
Michigan Finance Authority, (Revolving Fund - Clean Water), 5.00%, 10/1/19 | | | 4,385 | | | | 5,186,403 | |
Michigan Finance Authority, (Revolving Fund - Drinking Water), 5.00%, 10/1/19 | | | 1,000 | | | | 1,182,760 | |
New York Environmental Facilities Corp., Clean Water and Drinking Water, 4.00%, 6/15/19 | | | 50 | | | | 56,131 | |
New York, NY, Municipal Water Finance Authority, Water and Sewer System, 5.00%, 6/15/20 | | | 1,275 | | | | 1,506,935 | |
Northeast Ohio Regional Sewer District, 5.00%, 11/15/28 | | | 1,000 | | | | 1,089,590 | |
Ohio Water Development Authority, Water Pollution Control, (Water Quality), 5.00%, 12/1/21 | | | 2,000 | | | | 2,348,700 | |
Orange County, CA, Water District, 5.00%, 8/15/31 | | | 2,500 | | | | 2,722,250 | |
Rogers, AR, Water Revenue, 2.00%, 11/1/19 | | | 100 | | | | 100,280 | |
Rogers, AR, Water Revenue, 2.75%, 11/1/23 | | | 40 | | | | 39,365 | |
Rutherford County, TN, Consolidated Utility District, 4.00%, 2/1/25 | | | 1,000 | | | | 1,058,840 | |
Tucson, AZ, Water System Revenue, 5.00%, 7/1/18 | | | 1,500 | | | | 1,749,915 | |
Virginia Resources Authority Water & Sewer System, (Tuckahoe Creek Service District Project), 0.00%, 11/1/31 | | | 2,000 | | | | 848,180 | |
| | | | | | | | |
| | | | | | $ | 35,435,488 | |
| | | | | | | | |
|
Water Revenue — 1.2% | |
California Department of Water Resources, (Central Valley Project), 5.00%, 5/1/21 | | $ | 2,560 | | | $ | 2,931,149 | |
California Department of Water Resources, (Central Valley Project), 5.00%, 12/1/27 | | | 1,215 | | | | 1,362,161 | |
| | | | | | | | |
| | | | | | $ | 4,293,310 | |
| | | | | | | | |
| |
Total Tax-Exempt Investments — 96.9% (identified cost $341,043,390) | | | $ | 335,403,632 | |
| |
| |
Other Assets, Less Liabilities — 3.1% | | | $ | 10,659,259 | |
| |
| |
Net Assets — 100.0% | | | $ | 346,062,891 | |
| |
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
| | | | |
AGM | | – | | Assured Guaranty Municipal Corp. |
AMBAC | | – | | AMBAC Financial Group, Inc. |
FGIC | | – | | Financial Guaranty Insurance Company |
NPFG | | – | | National Public Finance Guaranty Corp. |
PSF | | – | | Permanent School Fund |
At July 31, 2013, the concentration of the Fund’s investments in the various states, determined as a percentage of net assets, is as follows:
| | | | |
California | | | 11.0% | |
Others, representing less than 10% individually | | | 85.9% | |
The Fund invests primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at July 31, 2013, 7.0% 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 0.7% to 3.3% of total investments.
(1) | When-issued security. |
| | | | |
| | 19 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Long Term Fund
July 31, 2013
Portfolio of Investments (Unaudited)
| | | | | | | | |
Tax-Exempt Investments — 96.8% | |
| | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
| | |
Bond Bank — 0.3% | | | | | | | | |
New York Environmental Facilities Corp., Revolving Fund Revenue, 5.00%, 6/15/29 | | $ | 50 | | | $ | 54,017 | |
| | | | | | | | |
| | | | | | $ | 54,017 | |
| | | | | | | | |
|
Education — 8.4% | |
Massachusetts School Building Authority, 5.00%, 5/15/38 | | $ | 1,000 | | | $ | 1,049,680 | |
New York Dormitory Authority, (Third Generation Resolution), 5.00%, 5/15/29 | | | 50 | | | | 53,063 | |
University of California, 5.125%, 5/15/29 | | | 80 | | | | 85,827 | |
University of Virginia, 5.00%, 9/1/27 | | | 375 | | | | 418,582 | |
Vermont Educational & Health Buildings Financing Agency, (Middlebury College), 5.00%, 11/1/32 | | | 50 | | | | 53,195 | |
Washington State University, 5.00%, 4/1/32 | | | 15 | | | | 15,784 | |
| | | | | | | | |
| | | | | | $ | 1,676,131 | |
| | | | | | | | |
|
General Obligations — 46.0% | |
Addison, TX, 5.00%, 2/15/26(1) | | $ | 270 | | | $ | 300,199 | |
Addison, TX, 5.00%, 2/15/28(1) | | | 285 | | | | 308,587 | |
Birmingham, MI, School District, 4.00%, 5/1/25 | | | 360 | | | | 371,243 | |
California, 5.00%, 4/1/37 | | | 890 | | | | 912,579 | |
Campbell, CA, Union High School District, 5.00%, 8/1/34 | | | 1,000 | | | | 1,056,410 | |
Chippewa Valley Schools, MI, 5.25%, 5/1/25 | | | 440 | | | | 508,372 | |
Dallas, TX, Independent School District, (PSF Guaranteed), 6.25%, 2/15/24 | | | 195 | | | | 230,890 | |
Denver City, TX, Independent School District, (PSF Guaranteed), 2.00%, 2/15/30(1) | | | 345 | | | | 362,381 | |
Denver City, TX, Independent School District, (PSF Guaranteed), 2.00%, 2/15/33(1) | | | 500 | | | | 516,220 | |
Edgewood City, OH, School District, 5.25%, 12/1/33 | | | 500 | | | | 541,490 | |
Forsan, TX, Independent School District (PSF Guaranteed), 5.00%, 2/15/25(1) | | | 700 | | | | 763,427 | |
Illinois, 5.50%, 7/1/38 | | | 1,000 | | | | 1,010,610 | |
Mountain View-Los Altos, CA, Union High School District, 0.00%, 8/1/26 | | | 500 | | | | 289,245 | |
Mountain View-Los Altos, CA, Union High School District, 0.00%, 8/1/27 | | | 1,000 | | | | 546,270 | |
Pennsbury, PA, School District, 4.00%, 8/1/31 | | | 500 | | | | 503,380 | |
Phoenix, AZ, 4.50%, 7/1/24 | | | 200 | | | | 206,988 | |
Rowland, CA, Unified School District, 5.00%, 8/1/33 | | | 750 | | | | 783,007 | |
| | | | | | | | |
| | | | | | $ | 9,211,298 | |
| | | | | | | | |
|
Hospital — 10.6% | |
Charlotte-Mecklenburg, NC, Hospital Authority, 5.125%, 1/15/37 | | $ | 40 | | | $ | 40,456 | |
Cobb County, GA, Kennestone Hospital Authority, (Wellstar Health System Obligation), 5.00%, 4/1/30 | | | 500 | | | | 518,595 | |
| | | | | | | | |
Security | | Principal Amount (000’s omitted) | | | Value | |
| | | | | | | | |
|
Hospital (continued) | |
Fairfax County, VA, Industrial Development Authority, (Inova Health System), 5.00%, 5/15/25 | | $ | 500 | | | $ | 547,745 | |
Michigan Hospital Finance Authority, (Trinity Health Corp.), 5.00%, 12/1/39 | | | 500 | | | | 497,065 | |
Tift County, GA, Hospital Authority, 5.00%, 12/1/26 | | | 500 | | | | 525,925 | |
| | | | | | | | |
| | | | | | $ | 2,129,786 | |
| | | | | | | | |
| | |
Transportation — 9.5% | | | | | | | | |
Dallas and Fort Worth, TX, (Dallas/Fort Worth International Airport), 5.25%, 11/1/32(1) | | $ | 500 | | | $ | 513,930 | |
Louisiana Highway Revenue, 5.00%, 6/15/30 | | | 360 | | | | 383,062 | |
Metropolitan Transportation Authority, NY, 5.00%, 11/15/38 | | | 1,000 | | | | 1,011,160 | |
| | | | | | | | |
| | | | | | $ | 1,908,152 | |
| | | | | | | | |
| | |
Water and Sewer — 22.0% | | | | | | | | |
New York Environmental Facilities Corp., Clean Water and Drinking Water, 5.00%, 6/15/32 | | $ | 1,000 | | | $ | 1,060,740 | |
New York, NY, Municipal Water Finance Authority, (Water and Sewer System), 5.00%, 6/15/37 | | | 500 | | | | 514,640 | |
New York, NY, Municipal Water Finance Authority, (Water and Sewer System), 5.00%, 6/15/45 | | | 500 | | | | 514,040 | |
New York, NY, Municipal Water Finance Authority, (Water and Sewer System), 5.50%, 6/15/22 | | | 25 | | | | 29,069 | |
New York, NY, Municipal Water Finance Authority, (Water and Sewer System), 5.625%, 6/15/24 | | | 300 | | | | 348,585 | |
New York, NY, Municipal Water Finance Authority, (Water and Sewer System), 5.625%, 6/15/27 | | | 50 | | | | 56,487 | |
Orange County, CA, Water District, 5.00%, 8/15/31 | | | 500 | | | | 544,450 | |
Rhode Island Clean Water Finance Agency, (Revolving Fund), 5.00%, 10/1/32 | | | 450 | | | | 476,779 | |
Rutherford County, TN, Consolidated Utility District Waterworks Revenue, 4.00%, 2/1/26 | | | 400 | | | | 417,608 | |
Virginia Resources Authority Water & Sewer System, (Tuckahoe Creek Service District Project), 0.00%, 11/1/32 | | | 1,100 | | | | 438,735 | |
| | | | | | | | |
| | | | | | $ | 4,401,133 | |
| | | | | | | | |
| |
Total Tax-Exempt Investments — 96.8% (identified cost $19,967,927) | | | $ | 19,380,517 | |
| |
| |
Other Assets, Less Liabilities — 3.2% | | | $ | 641,019 | |
| |
| |
Net Assets — 100.0% | | | $ | 20,021,536 | |
| |
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
| | | | |
PSF | | – | | Permanent School Fund |
| | | | |
| | 20 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Long Term Fund
July 31, 2013
Portfolio of Investments (Unaudited) — continued
At July 31, 2013, the concentration of the Fund’s investments in the various states, determined as a percentage of net assets, is as follows:
| | | | |
California | | | 21.1% | |
New York | | | 18.2% | |
Texas | | | 15.0% | |
Others, representing less than 10% individually | | | 42.5% | |
The Fund invests primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality.
(1) | When-issued security. |
| | | | |
| | 21 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Statements of Assets and Liabilities (Unaudited)
| | | | | | | | | | | | |
| | July 31, 2013 | |
Assets | | Short Term Fund | | | Intermediate Term Fund | | | Long Term Fund | |
Investments — | | | | | | | | | | | | |
Identified cost | | $ | 847,489,770 | | | $ | 341,043,390 | | | $ | 19,967,927 | |
Unrealized appreciation (depreciation) | | | 6,664,039 | | | | (5,639,758 | ) | | | (587,410 | ) |
Investments, at value | | $ | 854,153,809 | | | $ | 335,403,632 | | | $ | 19,380,517 | |
Cash | | $ | 4,888,291 | | | $ | 15,662,640 | | | $ | 2,131,537 | |
Interest receivable | | | 8,874,057 | | | | 3,742,697 | | | | 122,848 | |
Receivable for investments sold | | | 9,225,432 | | | | 8,849,413 | | | | 1,251,975 | |
Receivable for Fund shares sold | | | 919,773 | | | | 400,683 | | | | 14 | |
Receivable from affiliate | | | — | | | | 25,899 | | | | — | |
Total assets | | $ | 878,061,362 | | | $ | 364,084,964 | | | $ | 22,886,891 | |
|
Liabilities | |
Payable for investments purchased | | $ | 545,648 | | | $ | — | | | $ | — | |
Payable for when-issued securities | | | 4,249,158 | | | | 13,307,083 | | | | 2,762,069 | |
Payable for Fund shares redeemed | | | 5,324,591 | | | | 4,184,553 | | | | 50,041 | |
Distributions payable | | | 123,068 | | | | 200,479 | | | | 9,821 | |
Payable to affiliates: | | | | | | | | | | | | |
Investment adviser and administration fee | | | 412,318 | | | | 182,010 | | | | 10,709 | |
Distribution and service fees | | | 246,695 | | | | 60,758 | | | | 4,088 | |
Accrued expenses | | | 150,977 | | | | 87,190 | | | | 28,627 | |
Total liabilities | | $ | 11,052,455 | | | $ | 18,022,073 | | | $ | 2,865,355 | |
Net Assets | | $ | 867,008,907 | | | $ | 346,062,891 | | | $ | 20,021,536 | |
|
Sources of Net Assets | |
Paid-in capital | | $ | 859,166,135 | | | $ | 353,809,268 | | | $ | 20,490,848 | |
Accumulated net realized gain (loss) | | | 1,238,879 | | | | (2,101,055 | ) | | | 117,841 | |
Accumulated undistributed (distributions in excess of) net investment income | | | (60,146 | ) | | | (5,564 | ) | | | 257 | |
Net unrealized appreciation (depreciation) | | | 6,664,039 | | | | (5,639,758 | ) | | | (587,410 | ) |
Net Assets | | $ | 867,008,907 | | | $ | 346,062,891 | | | $ | 20,021,536 | |
|
Class A Shares | |
Net Assets | | $ | 405,396,777 | | | $ | 93,064,983 | | | $ | 6,142,780 | |
Shares Outstanding | | | 38,715,920 | | | | 8,209,114 | | | | 573,942 | |
Net Asset Value and Redemption Price Per Share | | | | | | | | | | | | |
(net assets ÷ shares of beneficial interest outstanding) | | $ | 10.47 | | | $ | 11.34 | | | $ | 10.70 | |
Maximum Offering Price Per Share | | | | | | | | | | | | |
(100 ÷ 97.75, 97.75 and 95.25, respectively, of net asset value per share) | | $ | 10.71 | | | $ | 11.60 | | | $ | 11.23 | |
|
Class C Shares | |
Net Assets | | $ | 181,643,102 | | | $ | 45,304,953 | | | $ | 2,976,348 | |
Shares Outstanding | | | 17,397,103 | | | | 3,997,375 | | | | 278,257 | |
Net Asset Value and Offering Price Per Share* | | | | | | | | | | | | |
(net assets ÷ shares of beneficial interest outstanding) | | $ | 10.44 | | | $ | 11.33 | | | $ | 10.70 | |
|
Class I Shares | |
Net Assets | | $ | 279,969,028 | | | $ | 207,692,955 | | | $ | 10,902,408 | |
Shares Outstanding | | | 26,729,593 | | | | 18,302,872 | | | | 1,019,057 | |
Net Asset Value, Offering Price and Redemption Price Per Share | | | | | | | | | | | | |
(net assets ÷ shares of beneficial interest outstanding) | | $ | 10.47 | | | $ | 11.35 | | | $ | 10.70 | |
On sales of $50,000 or more for Long Term Fund and $100,000 or more for Short Term Fund and Intermediate Term Fund, the offering price of Class A shares is reduced.
* | Redemption price per share is equal to the net asset value less any applicable contingent deferred sales charge. |
| | | | |
| | 22 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Statements of Operations (Unaudited)
| | | | | | | | | | | | |
| | Six Months Ended July 31, 2013 | |
Investment Income | | Short Term Fund | | | Intermediate Term Fund | | | Long Term Fund | |
Interest | | $ | 7,352,350 | | | $ | 3,551,274 | | | $ | 296,401 | |
Total investment income | | $ | 7,352,350 | | | $ | 3,551,274 | | | $ | 296,401 | |
| |
Expenses | | | | | |
Investment adviser and administration fee | | $ | 2,661,267 | | | $ | 1,218,197 | | | $ | 76,162 | |
Distribution and service fees | | | | | | | | | | | | |
Class A | | | 573,642 | | | | 133,950 | | | | 13,063 | |
Class C | | | 1,030,381 | | | | 274,788 | | | | 20,578 | |
Trustees’ fees and expenses | | | 18,289 | | | | 7,531 | | | | 694 | |
Custodian fee | | | 144,426 | | | | 91,681 | | | | 15,204 | |
Transfer and dividend disbursing agent fees | | | 154,647 | | | | 88,128 | | | | 5,183 | |
Legal and accounting services | | | 31,195 | | | | 16,930 | | | | 15,138 | |
Printing and postage | | | 26,488 | | | | 12,230 | | | | 3,763 | |
Registration fees | | | 45,907 | | | | 66,158 | | | | 12,824 | |
Miscellaneous | | | 75,576 | | | | 26,704 | | | | 12,129 | |
Total expenses | | $ | 4,761,818 | | | $ | 1,936,297 | | | $ | 174,738 | |
Deduct — | | | | | | | | | | | | |
Reduction of custodian fee | | $ | 31,502 | | | $ | 14,222 | | | $ | 1,265 | |
Allocation of expenses to affiliate | | | — | | | | 95,111 | | | | 51,442 | |
Total expense reductions | | $ | 31,502 | | | $ | 109,333 | | | $ | 52,707 | |
| | | |
Net expenses | | $ | 4,730,316 | | | $ | 1,826,964 | | | $ | 122,031 | |
| | | |
Net investment income | | $ | 2,622,034 | | | $ | 1,724,310 | | | $ | 174,370 | |
| |
Realized and Unrealized Gain (Loss) | | | | | |
Net realized gain (loss) — | | | | | | | | | | | | |
Investment transactions | | $ | (19,033 | ) | | $ | (3,417,139 | ) | | $ | (542,577 | ) |
Net realized loss | | $ | (19,033 | ) | | $ | (3,417,139 | ) | | $ | (542,577 | ) |
Change in unrealized appreciation (depreciation) — | | | | | | | | | | | | |
Investments | | $ | (17,282,998 | ) | | $ | (13,659,865 | ) | | $ | (1,297,608 | ) |
Net change in unrealized appreciation (depreciation) | | $ | (17,282,998 | ) | | $ | (13,659,865 | ) | | $ | (1,297,608 | ) |
| | | |
Net realized and unrealized loss | | $ | (17,302,031 | ) | | $ | (17,077,004 | ) | | $ | (1,840,185 | ) |
| | | |
Net decrease in net assets from operations | | $ | (14,679,997 | ) | | $ | (15,352,694 | ) | | $ | (1,665,815 | ) |
| | | | |
| | 23 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Statements of Changes in Net Assets
| | | | | | | | | | | | |
| | Six Months Ended July 31, 2013 (Unaudited) | |
Increase (Decrease) in Net Assets | | Short Term Fund | | | Intermediate Term Fund | | | Long Term Fund | |
From operations — | | | | | | | | | | | | |
Net investment income | | $ | 2,622,034 | | | $ | 1,724,310 | | | $ | 174,370 | |
Net realized loss from investment transactions | | | (19,033 | ) | | | (3,417,139 | ) | | | (542,577 | ) |
Net change in unrealized appreciation (depreciation) from investments | | | (17,282,998 | ) | | | (13,659,865 | ) | | | (1,297,608 | ) |
Net decrease in net assets from operations | | $ | (14,679,997 | ) | | $ | (15,352,694 | ) | | $ | (1,665,815 | ) |
Distributions to shareholders — | | | | | | | | | | | | |
From net investment income | | | | | | | | | | | | |
Class A | | $ | (1,324,945 | ) | | $ | (430,036 | ) | | $ | (71,383 | ) |
Class C | | | (7,494 | ) | | | (14,212 | ) | | | (12,661 | ) |
Class I | | | (1,288,646 | ) | | | (1,279,762 | ) | | | (90,242 | ) |
Total distributions to shareholders | | $ | (2,621,085 | ) | | $ | (1,724,010 | ) | | $ | (174,286 | ) |
Transactions in shares of beneficial interest — | | | | | | | | | | | | |
Proceeds from sale of shares | | | | | | | | | | | | |
Class A | | $ | 49,415,220 | | | $ | 23,040,210 | | | $ | 1,685,302 | |
Class C | | | 17,024,877 | | | | 6,011,542 | | | | 433,689 | |
Class I | | | 64,339,667 | | | | 62,486,668 | | | | 2,755,305 | |
Net asset value of shares issued to shareholders in payment of distributions declared | | | | | | | | | | | | |
Class A | | | 1,157,007 | | | | 329,067 | | | | 70,961 | |
Class C | | | 6,374 | | | | 7,449 | | | | 12,446 | |
Class I | | | 785,049 | | | | 321,927 | | | | 41,587 | |
Cost of shares redeemed | | | | | | | | | | | | |
Class A | | | (152,962,223 | ) | | | (41,004,607 | ) | | | (9,256,685 | ) |
Class C | | | (55,563,792 | ) | | | (16,202,334 | ) | | | (1,938,466 | ) |
Class I | | | (116,175,758 | ) | | | (98,312,952 | ) | | | (1,393,449 | ) |
Net decrease in net assets from Fund share transactions | | $ | (191,973,579 | ) | | $ | (63,323,030 | ) | | $ | (7,589,310 | ) |
| | | |
Net decrease in net assets | | $ | (209,274,661 | ) | | $ | (80,399,734 | ) | | $ | (9,429,411 | ) |
| |
Net Assets | | | | | |
At beginning of period | | $ | 1,076,283,568 | | | $ | 426,462,625 | | | $ | 29,450,947 | |
At end of period | | $ | 867,008,907 | | | $ | 346,062,891 | | | $ | 20,021,536 | |
| |
Accumulated undistributed (distributions in excess of) net investment income included in net assets | | | | | |
At end of period | | $ | (60,146 | ) | | $ | (5,564 | ) | | $ | 257 | |
| | | | |
| | 24 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Statements of Changes in Net Assets — continued
| | | | | | | | | | | | |
| | Year Ended January 31, 2013 | |
Increase (Decrease) in Net Assets | | Short Term Fund | | | Intermediate Term Fund | | | Long Term Fund | |
From operations — | | | | | | | | | | | | |
Net investment income | | $ | 5,089,488 | | | $ | 2,568,604 | | | $ | 534,958 | |
Net realized gain from investment transactions | | | 19,105,172 | | | | 6,464,341 | | | | 2,405,379 | |
Net change in unrealized appreciation (depreciation) from investments | | | (11,728,330 | ) | | | (574,781 | ) | | | (1,170,036 | ) |
Net increase in net assets from operations | | $ | 12,466,330 | | | $ | 8,458,164 | | | $ | 1,770,301 | |
Distributions to shareholders — | | | | | | | | | | | | |
From net investment income | | | | | | | | | | | | |
Class A | | $ | (2,546,955 | ) | | $ | (736,166 | ) | | $ | (217,242 | ) |
Class C | | | — | | | | (36,636 | ) | | | (15,564 | ) |
Class I | | | (2,581,332 | ) | | | (1,797,045 | ) | | | (302,160 | ) |
From net realized gain | | | | | | | | | | | | |
Class A | | | (10,942,374 | ) | | | (1,498,701 | ) | | | (942,098 | ) |
Class C | | | (4,692,814 | ) | | | (792,885 | ) | | | (266,911 | ) |
Class I | | | (7,323,305 | ) | | | (3,410,231 | ) | | | (633,247 | ) |
Total distributions to shareholders | | $ | (28,086,780 | ) | | $ | (8,271,664 | ) | | $ | (2,377,222 | ) |
Transactions in shares of beneficial interest — | | | | | | | | | | | | |
Proceeds from sale of shares | | | | | | | | | | | | |
Class A | | $ | 218,033,312 | | | $ | 92,779,675 | | | $ | 14,341,807 | |
Class C | | | 92,953,312 | | | | 40,053,914 | | | | 5,250,645 | |
Class I | | | 199,276,992 | | | | 221,623,303 | | | | 3,945,276 | |
Net asset value of shares issued to shareholders in payment of distributions declared | | | | | | | | | | | | |
Class A | | | 11,599,965 | | | | 1,708,118 | | | | 1,155,789 | |
Class C | | | 3,966,200 | | | | 424,279 | | | | 280,200 | |
Class I | | | 6,248,529 | | | | 1,366,309 | | | | 303,757 | |
Cost of shares redeemed | | | | | | | | | | | | |
Class A | | | (198,884,167 | ) | | | (47,335,562 | ) | | | (16,854,795 | ) |
Class C | | | (54,553,263 | ) | | | (8,008,614 | ) | | | (1,156,254 | ) |
Class I | | | (174,901,332 | ) | | | (77,161,588 | ) | | | (19,746,810 | ) |
Net increase (decrease) in net assets from Fund share transactions | | $ | 103,739,548 | | | $ | 225,449,834 | | | $ | (12,480,385 | ) |
| | | |
Net increase (decrease) in net assets | | $ | 88,119,098 | | | $ | 225,636,334 | | | $ | (13,087,306 | ) |
| |
Net Assets | | | | | |
At beginning of year | | $ | 988,164,470 | | | $ | 200,826,291 | | | $ | 42,538,253 | |
At end of year | | $ | 1,076,283,568 | | | $ | 426,462,625 | | | $ | 29,450,947 | |
| |
Accumulated undistributed (distributions in excess of) net investment income included in net assets | | | | | |
At end of year | | $ | (61,095 | ) | | $ | (5,864 | ) | | $ | 173 | |
| | | | |
| | 25 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Financial Highlights
| | | | | | | | | | | | | | | | | | | | |
| | Short Term Fund — Class A | |
| | Six Months Ended July 31, 2013 (Unaudited) | | | Year Ended January 31, | | | Period Ended January 31, 2010(1) | |
| | | 2013 | | | 2012 | | | 2011 | | |
Net asset value — Beginning of period | | $ | 10.660 | | | $ | 10.810 | | | $ | 10.230 | | | $ | 10.260 | | | $ | 10.000 | |
| | | | | |
Income (Loss) From Operations | | | | | | | | | | | | | | | | | | | | |
Net investment income | | $ | 0.034 | | | $ | 0.060 | | | $ | 0.078 | | | $ | 0.090 | | | $ | 0.082 | (2) |
Net realized and unrealized gain (loss) | | | (0.194 | ) | | | 0.069 | | | | 0.626 | | | | 0.084 | (3) | | | 0.363 | |
| | | | | |
Total income (loss) from operations | | $ | (0.160 | ) | | $ | 0.129 | | | $ | 0.704 | | | $ | 0.174 | | | $ | 0.445 | |
| | | | | |
Less Distributions | | | | | | | | | | | | | | | | | | | | |
From net investment income | | $ | (0.030 | ) | | $ | (0.054 | ) | | $ | (0.078 | ) | | $ | (0.090 | ) | | $ | (0.140 | ) |
From net realized gain | | | — | | | | (0.225 | ) | | | (0.046 | ) | | | (0.114 | ) | | | (0.045 | ) |
| | | | | |
Total distributions | | $ | (0.030 | ) | | $ | (0.279 | ) | | $ | (0.124 | ) | | $ | (0.204 | ) | | $ | (0.185 | ) |
| | | | | |
Net asset value — End of period | | $ | 10.470 | | | $ | 10.660 | | | $ | 10.810 | | | $ | 10.230 | | | $ | 10.260 | |
| | | | | |
Total Return(4) | | | (1.50 | )%(5) | | | 1.20 | % | | | 6.92 | % | | | 1.69 | % | | | 4.49 | %(5) |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | $ | 405,397 | | | $ | 515,694 | | | $ | 492,264 | | | $ | 473,976 | | | $ | 230,414 | |
Ratios (as a percentage of average daily net assets): | | | | | | | | | | | | | | | | | | | | |
Expenses before custodian fee reduction | | | 0.90 | %(6) | | | 0.88 | % | | | 0.89 | % | | | 0.90 | % | | | 0.90 | %(6)(7) |
Expenses after custodian fee reduction | | | 0.89 | %(6) | | | 0.87 | % | | | 0.89 | % | | | 0.89 | % | | | 0.90 | %(6)(7) |
Net investment income | | | 0.62 | %(6) | | | 0.54 | % | | | 0.74 | % | | | 0.83 | % | | | 0.94 | %(6) |
Portfolio Turnover | | | 52 | %(5) | | | 72 | % | | | 80 | % | | | 107 | % | | | 129 | %(5)(8) |
(1) | For the period from the start of business, March 27, 2009, to January 31, 2010. |
(2) | Computed using average shares outstanding. |
(3) | The per share amount is not in accord with the net realized and unrealized gain (loss) on investments for the period because of the timing of sales of Fund shares and the amount of the per share realized and unrealized gains and losses at such time. |
(4) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges. |
(7) | The investment adviser and administrator subsidized certain operating expenses equal to 0.11% of average daily net assets for the period ended January 31, 2010. Absent this subsidy, total return would be lower. |
(8) | Excluding the value of portfolio securities delivered in payment of redemptions in-kind, the portfolio turnover would have been 120%. |
| | | | |
| | 26 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Financial Highlights — continued
| | | | | | | | | | | | | | | | | | | | |
| | Short Term Fund — Class C | |
| | Six Months Ended July 31, 2013 (Unaudited) | | | Year Ended January 31, | | | Period Ended January 31, 2010(1) | |
| | | 2013 | | | 2012 | | | 2011 | | |
Net asset value — Beginning of period | | $ | 10.640 | | | $ | 10.820 | | | $ | 10.240 | | | $ | 10.270 | | | $ | 10.000 | |
| | | | | |
Income (Loss) From Operations | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | (0.013 | ) | | $ | (0.020 | ) | | $ | (0.001 | ) | | $ | 0.011 | | | $ | 0.019 | (2) |
Net realized and unrealized gain (loss) | | | (0.187 | ) | | | 0.065 | | | | 0.629 | | | | 0.085 | (3) | | | 0.372 | |
| | | | | |
Total income (loss) from operations | | $ | (0.200 | ) | | $ | 0.045 | | | $ | 0.628 | | | $ | 0.096 | | | $ | 0.391 | |
| | | | | |
Less Distributions | | | | | | | | | | | | | | | | | | | | |
From net investment income | | $ | (0.000 | )(4) | | $ | — | | | $ | (0.002 | ) | | $ | (0.012 | ) | | $ | (0.076 | ) |
From net realized gain | | | — | | | | (0.225 | ) | | | (0.046 | ) | | | (0.114 | ) | | | (0.045 | ) |
| | | | | |
Total distributions | | $ | (0.000 | )(4) | | $ | (0.225 | ) | | $ | (0.048 | ) | | $ | (0.126 | ) | | $ | (0.121 | ) |
| | | | | |
Net asset value — End of period | | $ | 10.440 | | | $ | 10.640 | | | $ | 10.820 | | | $ | 10.240 | | | $ | 10.270 | |
| | | | | |
Total Return(5) | | | (1.88 | )%(6) | | | 0.41 | % | | | 6.14 | % | | | 0.93 | % | | | 3.93 | %(6) |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | $ | 181,643 | | | $ | 223,992 | | | $ | 185,291 | | | $ | 150,490 | | | $ | 59,381 | |
Ratios (as a percentage of average daily net assets): | | | | | | | | | | | | | | | | | | | | |
Expenses before custodian fee reduction | | | 1.65 | %(7) | | | 1.63 | % | | | 1.64 | % | | | 1.64 | % | | | 1.65 | %(7)(8) |
Expenses after custodian fee reduction | | | 1.64 | %(7) | | | 1.62 | % | | | 1.64 | % | | | 1.63 | % | | | 1.65 | %(7)(8) |
Net investment income (loss) | | | (0.14 | )%(7) | | | (0.21 | )% | | | (0.01 | )% | | | 0.08 | % | | | 0.22 | %(7) |
Portfolio Turnover | | | 52 | %(6) | | | 72 | % | | | 80 | % | | | 107 | % | | | 129 | %(6)(9) |
(1) | For the period from the start of business, March 27, 2009, to January 31, 2010. |
(2) | Computed using average shares outstanding. |
(3) | The per share amount is not in accord with the net realized and unrealized gain (loss) on investments for the period because of the timing of sales of Fund shares and the amount of the per share realized and unrealized gains and losses at such time. |
(4) | Amount is less than $0.0005. |
(5) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges. |
(8) | The investment adviser and administrator subsidized certain operating expenses equal to 0.11% of average daily net assets for the period ended January 31, 2010. Absent this subsidy, total return would be lower. |
(9) | Excluding the value of portfolio securities delivered in payment of redemptions in-kind, the portfolio turnover would have been 120%. |
| | | | |
| | 27 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Financial Highlights — continued
| | | | | | | | | | | | | | | | | | | | |
| | Short Term Fund — Class I | |
| | Six Months Ended July 31, 2013 (Unaudited) | | | Year Ended January 31, | | | Period Ended January 31, 2010(1) | |
| | | 2013 | | | 2012 | | | 2011 | | |
Net asset value — Beginning of period | | $ | 10.660 | | | $ | 10.810 | | | $ | 10.230 | | | $ | 10.260 | | | $ | 10.000 | |
| | | | | |
Income (Loss) From Operations | | | | | | | | | | | | | | | | | | | | |
Net investment income | | $ | 0.046 | | | $ | 0.088 | | | $ | 0.105 | | | $ | 0.119 | | | $ | 0.129 | (2) |
Net realized and unrealized gain (loss) | | | (0.193 | ) | | | 0.068 | | | | 0.626 | | | | 0.082 | (3) | | | 0.338 | |
| | | | | |
Total income (loss) from operations | | $ | (0.147 | ) | | $ | 0.156 | | | $ | 0.731 | | | $ | 0.201 | | | $ | 0.467 | |
| | | | | |
Less Distributions | | | | | | | | | | | | | | | | | | | | |
From net investment income | | $ | (0.043 | ) | | $ | (0.081 | ) | | $ | (0.105 | ) | | $ | (0.117 | ) | | $ | (0.162 | ) |
From net realized gain | | | — | | | | (0.225 | ) | | | (0.046 | ) | | | (0.114 | ) | | | (0.045 | ) |
| | | | | |
Total distributions | | $ | (0.043 | ) | | $ | (0.306 | ) | | $ | (0.151 | ) | | $ | (0.231 | ) | | $ | (0.207 | ) |
| | | | | |
Net asset value — End of period | | $ | 10.470 | | | $ | 10.660 | | | $ | 10.810 | | | $ | 10.230 | | | $ | 10.260 | |
| | | | | |
Total Return(4) | | | (1.38 | )%(5) | | | 1.45 | % | | | 7.18 | % | | | 1.94 | % | | | 4.71 | %(5) |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | $ | 279,969 | | | $ | 336,597 | | | $ | 310,609 | | | $ | 246,296 | | | $ | 127,546 | |
Ratios (as a percentage of average daily net assets): | | | | | | | | | | | | | | | | | | | | |
Expenses before custodian fee reduction | | | 0.65 | %(6) | | | 0.63 | % | | | 0.64 | % | | | 0.65 | % | | | 0.65 | %(6)(7) |
Expenses after custodian fee reduction | | | 0.64 | %(6) | | | 0.62 | % | | | 0.64 | % | | | 0.64 | % | | | 0.65 | %(6)(7) |
Net investment income | | | 0.87 | %(6) | | | 0.79 | % | | | 0.99 | % | | | 1.09 | % | | | 1.48 | %(6) |
Portfolio Turnover | | | 52 | %(5) | | | 72 | % | | | 80 | % | | | 107 | % | | | 129 | %(5)(8) |
(1) | For the period from the start of business, March 27, 2009, to January 31, 2010. |
(2) | Computed using average shares outstanding. |
(3) | The per share amount is not in accord with the net realized and unrealized gain (loss) on investments for the period because of the timing of sales of Fund shares and the amount of the per share realized and unrealized gains and losses at such time. |
(4) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. |
(7) | The investment adviser and administrator subsidized certain operating expenses equal to 0.11% of average daily net assets for the period ended January 31, 2010. Absent this subsidy, total return would be lower. |
(8) | Excluding the value of portfolio securities delivered in payment of redemptions in-kind, the portfolio turnover would have been 120%. |
| | | | |
| | 28 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Financial Highlights — continued
| | | | | | | | | | | | | | | | |
| | Intermediate Term Fund — Class A | |
| | Six Months Ended July 31, 2013 (Unaudited) | | | Year Ended January 31, | |
| | | 2013 | | | 2012 | | | 2011 | |
Net asset value — Beginning of period | | $ | 11.840 | | | $ | 11.780 | | | $ | 10.380 | | | $ | 10.000 | |
| | | | |
Income (Loss) From Operations | | | | | | | | | | | | | | | | |
Net investment income | | $ | 0.047 | | | $ | 0.097 | | | $ | 0.152 | | | $ | 0.131 | |
Net realized and unrealized gain (loss) | | | (0.500 | ) | | | 0.231 | | | | 1.451 | | | | 0.406 | (1) |
| | | | |
Total income (loss) from operations | | $ | (0.453 | ) | | $ | 0.328 | | | $ | 1.603 | | | $ | 0.537 | |
| | | | |
Less Distributions | | | | | | | | | | | | | | | | |
From net investment income | | $ | (0.047 | ) | | $ | (0.097 | ) | | $ | (0.152 | ) | | $ | (0.131 | ) |
From net realized gain | | | — | | | | (0.171 | ) | | | (0.051 | ) | | | (0.026 | ) |
| | | | |
Total distributions | | $ | (0.047 | ) | | $ | (0.268 | ) | | $ | (0.203 | ) | | $ | (0.157 | ) |
| | | | |
Net asset value — End of period | | $ | 11.340 | | | $ | 11.840 | | | $ | 11.780 | | | $ | 10.380 | |
| | | | |
Total Return(2) | | | (3.84 | )%(3) | | | 2.79 | % | | | 15.58 | % | | | 5.38 | % |
| | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | $ | 93,065 | | | $ | 115,170 | | | $ | 67,785 | | | $ | 3,972 | |
Ratios (as a percentage of average daily net assets): | | | | | | | | | | | | | | | | |
Expenses before custodian fee reduction(4) | | | 0.96 | %(5) | | | 0.96 | % | | | 0.95 | % | | | 0.96 | % |
Expenses after custodian fee reduction(4) | | | 0.95 | %(5) | | | 0.95 | % | | | 0.95 | % | | | 0.95 | % |
Net investment income | | | 0.80 | %(5) | | | 0.80 | % | | | 1.14 | % | | | 1.26 | % |
Portfolio Turnover | | | 75 | %(3) | | | 103 | % | | | 125 | % | | | 202 | % |
(1) | The per share amount is not in accord with the net realized and unrealized gain (loss) on investments for the period because of the timing of sales of Fund shares and the amount of the per share realized and unrealized gains and losses at such time. |
(2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges. |
(4) | The investment adviser and administrator subsidized certain operating expenses equal to 0.05%, 0.05%, 0.16% and 0.68% of average daily net assets for the six months ended July 31, 2013 and the years ended January 31, 2013, 2012 and 2011, respectively. Absent this subsidy, total return would be lower. |
| | | | |
| | 29 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Financial Highlights — continued
| | | | | | | | | | | | | | | | |
| | Intermediate Term Fund — Class C | |
| | Six Months Ended July 31, 2013 (Unaudited) | | | Year Ended January 31, | |
| | | 2013 | | | 2012 | | | 2011 | |
Net asset value — Beginning of period | | $ | 11.830 | | | $ | 11.780 | | | $ | 10.380 | | | $ | 10.000 | |
| | | | |
Income (Loss) From Operations | | | | | | | | | | | | | | | | |
Net investment income | | $ | 0.002 | | | $ | 0.008 | | | $ | 0.071 | | | $ | 0.057 | |
Net realized and unrealized gain (loss) | | | (0.499 | ) | | | 0.225 | | | | 1.451 | | | | 0.406 | (1) |
| | | | |
Total income (loss) from operations | | $ | (0.497 | ) | | $ | 0.233 | | | $ | 1.522 | | | $ | 0.463 | |
| | | | |
Less Distributions | | | | | | | | | | | | | | | | |
From net investment income | | $ | (0.003 | ) | | $ | (0.012 | ) | | $ | (0.071 | ) | | $ | (0.057 | ) |
From net realized gain | | | — | | | | (0.171 | ) | | | (0.051 | ) | | | (0.026 | ) |
| | | | |
Total distributions | | $ | (0.003 | ) | | $ | (0.183 | ) | | $ | (0.122 | ) | | $ | (0.083 | ) |
| | | | |
Net asset value — End of period | | $ | 11.330 | | | $ | 11.830 | | | $ | 11.780 | | | $ | 10.380 | |
| | | | |
Total Return(2) | | | (4.20 | )%(3) | | | 1.98 | % | | | 14.73 | % | | | 4.63 | % |
| | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | $ | 45,305 | | | $ | 57,816 | | | $ | 25,215 | | | $ | 1,216 | |
Ratios (as a percentage of average daily net assets): | | | | | | | | | | | | | | | | |
Expenses before custodian fee reduction(4) | | | 1.71 | %(5) | | | 1.71 | % | | | 1.70 | % | | | 1.71 | % |
Expenses after custodian fee reduction(4) | | | 1.70 | %(5) | | | 1.70 | % | | | 1.70 | % | | | 1.70 | % |
Net investment income | | | 0.05 | %(5) | | | 0.04 | % | | | 0.45 | % | | | 0.58 | % |
Portfolio Turnover | | | 75 | %(3) | | | 103 | % | | | 125 | % | | | 202 | % |
(1) | The per share amount is not in accord with the net realized and unrealized gain (loss) on investments for the period because of the timing of sales of Fund shares and the amount of the per share realized and unrealized gains and losses at such time. |
(2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges. |
(4) | The investment adviser and administrator subsidized certain operating expenses equal to 0.05%, 0.05%, 0.16% and 0.68% of average daily net assets for the six months ended July 31, 2013 and the years ended January 31, 2013, 2012 and 2011, respectively. Absent this subsidy, total return would be lower. |
| | | | |
| | 30 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Financial Highlights — continued
| | | | | | | | | | | | | | | | |
| | Intermediate Term Fund — Class I | |
| | Six Months Ended July 31, 2013 (Unaudited) | | | Year Ended January 31, | |
| | | 2013 | | | 2012 | | | 2011 | |
Net asset value — Beginning of period | | $ | 11.850 | | | $ | 11.790 | | | $ | 10.380 | | | $ | 10.000 | |
| | | | |
Income (Loss) From Operations | | | | | | | | | | | | | | | | |
Net investment income | | $ | 0.062 | | | $ | 0.127 | | | $ | 0.181 | | | $ | 0.155 | |
Net realized and unrealized gain (loss) | | | (0.501 | ) | | | 0.231 | | | | 1.461 | | | | 0.406 | (1) |
| | | | |
Total income (loss) from operations | | $ | (0.439 | ) | | $ | 0.358 | | | $ | 1.642 | | | $ | 0.561 | |
| | | | |
Less Distributions | | | | | | | | | | | | | | | | |
From net investment income | | $ | (0.061 | ) | | $ | (0.127 | ) | | $ | (0.181 | ) | | $ | (0.155 | ) |
From net realized gain | | | — | | | | (0.171 | ) | | | (0.051 | ) | | | (0.026 | ) |
| | | | |
Total distributions | | $ | (0.061 | ) | | $ | (0.298 | ) | | $ | (0.232 | ) | | $ | (0.181 | ) |
| | | | |
Net asset value — End of period | | $ | 11.350 | | | $ | 11.850 | | | $ | 11.790 | | | $ | 10.380 | |
| | | | |
Total Return(2) | | | (3.72 | )%(3) | | | 3.05 | % | | | 15.97 | % | | | 5.62 | % |
| | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | $ | 207,693 | | | $ | 253,476 | | | $ | 107,826 | | | $ | 52,224 | |
Ratios (as a percentage of average daily net assets): | | | | | | | | | | | | | | | | |
Expenses before custodian fee reduction(4) | | | 0.71 | %(5) | | | 0.71 | % | | | 0.70 | % | | | 0.71 | % |
Expenses after custodian fee reduction(4) | | | 0.70 | %(5) | | | 0.70 | % | | | 0.70 | % | | | 0.70 | % |
Net investment income | | | 1.05 | %(5) | | | 1.04 | % | | | 1.58 | % | | | 1.24 | % |
Portfolio Turnover | | | 75 | %(3) | | | 103 | % | | | 125 | % | | | 202 | % |
(1) | The per share amount is not in accord with the net realized and unrealized gain (loss) on investments for the period because of the timing of sales of Fund shares and the amount of the per share realized and unrealized gains and losses at such time. |
(2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. |
(4) | The investment adviser and administrator subsidized certain operating expenses equal to 0.05%, 0.05%, 0.16% and 0.68% of average daily net assets for the six months ended July 31, 2013 and the years ended January 31, 2013, 2012 and 2011, respectively. Absent this subsidy, total return would be lower. |
| | | | |
| | 31 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Financial Highlights — continued
| | | | | | | | | | | | | | | | |
| | Long Term Fund — Class A | |
| | Six Months Ended July 31, 2013 (Unaudited) | | | Year Ended January 31, | |
| | | 2013 | | | 2012 | | | 2011 | |
Net asset value — Beginning of period | | $ | 11.560 | | | $ | 11.710 | | | $ | 9.810 | | | $ | 10.000 | |
| | | | |
Income (Loss) From Operations | | | | | | | | | | | | | | | | |
Net investment income | | $ | 0.079 | | | $ | 0.182 | | | $ | 0.249 | | | $ | 0.268 | |
Net realized and unrealized gain (loss) | | | (0.860 | ) | | | 0.582 | | | | 1.929 | | | | 0.056 | (1) |
| | | | |
Total income (loss) from operations | | $ | (0.781 | ) | | $ | 0.764 | | | $ | 2.178 | | | $ | 0.324 | |
| | | | |
Less Distributions | | | | | | | | | | | | | | | | |
From net investment income | | $ | (0.079 | ) | | $ | (0.182 | ) | | $ | (0.249 | ) | | $ | (0.267 | ) |
From net realized gain | | | — | | | | (0.732 | ) | | | (0.029 | ) | | | (0.247 | ) |
| | | | |
Total distributions | | $ | (0.079 | ) | | $ | (0.914 | ) | | $ | (0.278 | ) | | $ | (0.514 | ) |
| | | | |
Net asset value — End of period | | $ | 10.700 | | | $ | 11.560 | | | $ | 11.710 | | | $ | 9.810 | |
| | | | |
Total Return(2) | | | (6.78 | )%(3) | | | 6.55 | % | | | 22.53 | % | | | 3.21 | % |
| | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | $ | 6,143 | | | $ | 14,340 | | | $ | 16,143 | | | $ | 149 | |
Ratios (as a percentage of average daily net assets): | | | | | | | | | | | | | | | | |
Expenses before custodian fee reduction(4) | | | 0.96 | %(5) | | | 0.96 | % | | | 0.95 | % | | | 0.95 | % |
Expenses after custodian fee reduction(4) | | | 0.95 | %(5) | | | 0.95 | % | | | 0.95 | % | | | 0.95 | % |
Net investment income | | | 1.37 | %(5) | | | 1.53 | % | | | 1.57 | % | | | 2.65 | % |
Portfolio Turnover | | | 171 | %(3) | | | 211 | % | | | 239 | % | | | 200 | % |
(1) | The per share amount is not in accord with the net realized and unrealized gain (loss) on investments for the period because of the timing of sales of Fund shares and the amount of the per share realized and unrealized gains and losses at such time. |
(2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges. |
(4) | The investment adviser and administrator subsidized certain operating expenses equal to 0.41%, 0.35%, 1.21% and 7.17% of average daily net assets for the six months ended July 31, 2013 and the years ended January 31, 2013, 2012 and 2011, respectively. Absent this subsidy, total return would be lower. |
| | | | |
| | 32 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Financial Highlights — continued
| | | | | | | | | | | | | | | | |
| | Long Term Fund — Class C | |
| | Six Months Ended July 31, 2013 (Unaudited) | | | Year Ended January 31, | |
| | | 2013 | | | 2012 | | | 2011 | |
Net asset value — Beginning of period | | $ | 11.550 | | | $ | 11.710 | | | $ | 9.810 | | | $ | 10.000 | |
| | | | |
Income (Loss) From Operations | | | | | | | | | | | | | | | | |
Net investment income | | $ | 0.037 | | | $ | 0.093 | | | $ | 0.172 | | | $ | 0.192 | |
Net realized and unrealized gain (loss) | | | (0.850 | ) | | | 0.573 | | | | 1.929 | | | | 0.056 | (1) |
| | | | |
Total income (loss) from operations | | $ | (0.813 | ) | | $ | 0.666 | | | $ | 2.101 | | | $ | 0.248 | |
| | | | |
Less Distributions | | | | | | | | | | | | | | | | |
From net investment income | | $ | (0.037 | ) | | $ | (0.094 | ) | | $ | (0.172 | ) | | $ | (0.191 | ) |
From net realized gain | | | — | | | | (0.732 | ) | | | (0.029 | ) | | | (0.247 | ) |
| | | | |
Total distributions | | $ | (0.037 | ) | | $ | (0.826 | ) | | $ | (0.201 | ) | | $ | (0.438 | ) |
| | | | |
Net asset value — End of period | | $ | 10.700 | | | $ | 11.550 | | | $ | 11.710 | | | $ | 9.810 | |
| | | | |
Total Return(2) | | | (7.05 | )%(3) | | | 5.76 | % | | | 21.54 | % | | | 2.44 | % |
| | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | $ | 2,976 | | | $ | 4,764 | | | $ | 547 | | | $ | 141 | |
Ratios (as a percentage of average daily net assets): | | | | | | | | | | | | | | | | |
Expenses before custodian fee reduction(4) | | | 1.71 | %(5) | | | 1.71 | % | | | 1.70 | % | | | 1.70 | % |
Expenses after custodian fee reduction(4) | | | 1.70 | %(5) | | | 1.70 | % | | | 1.70 | % | | | 1.70 | % |
Net investment income | | | 0.62 | %(5) | | | 0.66 | % | | | 1.36 | % | | | 1.88 | % |
Portfolio Turnover | | | 171 | %(3) | | | 211 | % | | | 239 | % | | | 200 | % |
(1) | The per share amount is not in accord with the net realized and unrealized gain (loss) on investments for the period because of the timing of sales of Fund shares and the amount of the per share realized and unrealized gains and losses at such time. |
(2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges. |
(4) | The investment adviser and administrator subsidized certain operating expenses equal to 0.41%, 0.36%, 1.21% and 7.17% of average daily net assets for the six months ended July 31, 2013 and the years ended January 31, 2013, 2012 and 2011, respectively. Absent this subsidy, total return would be lower. |
| | | | |
| | 33 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Financial Highlights — continued
| | | | | | | | | | | | | | | | |
| | Long Term Fund — Class I | |
| | Six Months Ended July 31, 2013 (Unaudited) | | | Year Ended January 31, | |
| | | 2013 | | | 2012 | | | 2011 | |
Net asset value — Beginning of period | | $ | 11.550 | | | $ | 11.710 | | | $ | 9.810 | | | $ | 10.000 | |
| | | | |
Income (Loss) From Operations | | | | | | | | | | | | | | | | |
Net investment income | | $ | 0.093 | | | $ | 0.212 | | | $ | 0.274 | | | $ | 0.294 | |
Net realized and unrealized gain (loss) | | | (0.850 | ) | | | 0.572 | | | | 1.929 | | | | 0.056 | (1) |
| | | | |
Total income (loss) from operations | | $ | (0.757 | ) | | $ | 0.784 | | | $ | 2.203 | | | $ | 0.350 | |
| | | | |
Less Distributions | | | | | | | | | | | | | | | | |
From net investment income | | $ | (0.093 | ) | | $ | (0.212 | ) | | $ | (0.274 | ) | | $ | (0.293 | ) |
From net realized gain | | | — | | | | (0.732 | ) | | | (0.029 | ) | | | (0.247 | ) |
| | | | |
Total distributions | | $ | (0.093 | ) | | $ | (0.944 | ) | | $ | (0.303 | ) | | $ | (0.540 | ) |
| | | | |
Net asset value — End of period | | $ | 10.700 | | | $ | 11.550 | | | $ | 11.710 | | | $ | 9.810 | |
| | | | |
Total Return(2) | | | (6.59 | )%(3) | | | 6.82 | % | | | 22.71 | % | | | 3.47 | % |
| | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | $ | 10,902 | | | $ | 10,347 | | | $ | 25,848 | | | $ | 1,958 | |
Ratios (as a percentage of average daily net assets): | | | | | | | | | | | | | | | | |
Expenses before custodian fee reduction(4) | | | 0.71 | %(5) | | | 0.71 | % | | | 0.70 | % | | | 0.70 | % |
Expenses after custodian fee reduction(4) | | | 0.70 | %(5) | | | 0.70 | % | | | 0.70 | % | | | 0.70 | % |
Net investment income | | | 1.67 | %(5) | | | 1.83 | % | | | 2.05 | % | | | 2.86 | % |
Portfolio Turnover | | | 171 | %(3) | | | 211 | % | | | 239 | % | | | 200 | % |
(1) | The per share amount is not in accord with the net realized and unrealized gain (loss) on investments for the period because of the timing of sales of Fund shares and the amount of the per share realized and unrealized gains and losses at such time. |
(2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. |
(4) | The investment adviser and administrator subsidized certain operating expenses equal to 0.41%, 0.34%, 1.21% and 7.17% of average daily net assets for the six months ended July 31, 2013 and the years ended January 31, 2013, 2012 and 2011, respectively. Absent this subsidy, total return would be lower. |
| | | | |
| | 34 | | See Notes to Financial Statements. |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Notes to Financial Statements (Unaudited)
1 Significant Accounting Policies
Eaton Vance Municipals Trust II (the Trust) is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. The Trust presently consists of four funds, three of which, each diversified, are included in these financial statements. They include Eaton Vance Tax-Advantaged Bond Strategies Short Term Fund (Short Term Fund), Eaton Vance Tax-Advantaged Bond Strategies Intermediate Term Fund (Intermediate Term Fund) and Eaton Vance Tax-Advantaged Bond Strategies Long Term Fund (Long Term Fund), (each individually referred to as the Fund, and collectively the Funds). The Funds’ investment objective is to seek after-tax total return. The Funds offer three classes of shares. Class A shares are generally sold subject to a sales charge imposed at time of purchase. Class C shares are sold at net asset value and are generally subject to a contingent deferred sales charge (see Note 5). Class I shares are sold at net asset value and are not subject to a sales charge. Each class represents a pro-rata interest in the Fund, but votes separately on class-specific matters and (as noted below) is subject to different expenses. Realized and unrealized gains and losses are allocated daily to each class of shares based on the relative net assets of each class to the total net assets of the Fund. Net investment income, other than class-specific expenses, is allocated daily to each class of shares based upon the ratio of the value of each class’s paid shares to the total value of all paid shares. Each class of shares differs in its distribution plan and certain other class-specific expenses.
The following is a summary of significant accounting policies of the Funds. The policies are in conformity with accounting principles generally accepted in the United States of America.
A Investment Valuation — The following methodologies are used to determine the market value or fair value of investments.
Debt Obligations. Debt obligations (including short-term obligations with a remaining maturity of more than sixty days) are generally valued on the basis of valuations provided by third party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, prices or yields of securities with similar characteristics, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Short-term obligations purchased with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates market value.
Fair Valuation. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of a Fund in a manner that fairly reflects the security’s value, or the amount that the Fund might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable entities, quotations or relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the entity’s financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
B Investment Transactions and Related Income — Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount.
C Federal Taxes — Each Fund’s policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its taxable, if any, and tax-exempt net investment income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary. Each Fund intends to satisfy conditions which will enable it to designate distributions from the interest income generated by its investments in non-taxable municipal securities, which are exempt from regular federal income tax when received by each Fund, as exempt-interest dividends. 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.
As of July 31, 2013, the Funds had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each Fund files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.
D Expenses — The majority of expenses of the Trust are directly identifiable to an individual fund. Expenses which are not readily identifiable to a specific fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the funds.
E Expense Reduction — State Street Bank and Trust Company (SSBT) serves as custodian of the Funds. Pursuant to the custodian agreement, SSBT receives a fee reduced by credits, which are determined based on the average daily cash balance each Fund maintains with SSBT. All credit balances, if any, used to reduce each Fund’s custodian fees are reported as a reduction of expenses in the Statements of Operations.
F 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.
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Notes to Financial Statements (Unaudited) — continued
G 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.
H Indemnifications — Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Funds. 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 Trust’s Declaration of Trust contains an express disclaimer of liability on the part of Fund shareholders and the By-laws provide that the Trust shall assume the defense on behalf of any Fund shareholders. Moreover, the By-laws also provide for indemnification out of Fund property of any shareholder held personally liable solely by reason of being or having been a shareholder for all loss or expense arising from such liability. Additionally, in the normal course of business, each Fund enters into agreements with service providers that may contain indemnification clauses. Each Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against each Fund that have not yet occurred.
I When-Issued Securities and Delayed Delivery Transactions — The Funds may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. At the time the transaction is negotiated, the price of the security that will be delivered is fixed. The Funds maintain security positions for these commitments such that sufficient liquid assets will be available to make payments upon settlement. Securities purchased on a delayed delivery or when-issued basis are marked-to-market daily and begin earning interest on settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
J Interim Financial Statements — The interim financial statements relating to July 31, 2013 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Funds’ management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.
2 Distributions to Shareholders
The net investment income of each Fund is determined daily and substantially all of the net investment income so determined is declared as a dividend to shareholders of record at the time of declaration. Distributions are declared separately for each class of shares. Distributions are paid monthly. Distributions of realized capital gains are made at least annually. Shareholders may reinvest income and capital gain distributions in additional shares of the same class of a Fund at the net asset value as of the reinvestment date or, at the election of the shareholder, receive distributions in cash. The Funds distinguish between distributions on a tax basis and a financial reporting basis. Accounting principles generally accepted in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.
3 Investment Adviser and Administration Fee and Other Transactions with Affiliates
The investment adviser and administration fee is earned by Eaton Vance Management (EVM) as compensation for investment advisory and administrative services rendered to each Fund. The fee is based upon a percentage of average daily net assets as presented in the following table and is payable monthly.
| | | | | | | | | | | | |
| | Annual Asset Rate | |
Daily Net Assets | | Short Term Fund | | | Intermediate Term Fund | | | Long Term Fund | |
| | | |
Up to $500 million | | | 0.55 | % | | | 0.60 | % | | | 0.60 | % |
$500 million up to $1 billion | | | 0.54 | % | | | 0.60 | % | | | 0.60 | % |
On average daily net assets of $1 billion or more, the rates are reduced. For the six months ended July 31, 2013, investment adviser and administration fees incurred by the Funds and the effective annual rates, as a percentage of average daily net assets, were as follows:
| | | | | | | | | | | | |
| | Short Term Fund | | | Intermediate Term Fund | | | Long Term Fund | |
| | | |
Investment Adviser and Administration Fee | | $ | 2,661,267 | | | $ | 1,218,197 | | | $ | 76,162 | |
Effective Annual Rate | | | 0.55 | % | | | 0.60 | % | | | 0.60 | % |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Notes to Financial Statements (Unaudited) — continued
For Intermediate Term Fund and Long Term Fund, EVM has agreed to reimburse the Fund’s expenses to the extent that total annual operating expenses (relating to ordinary operating expenses only) exceed 0.95%, 1.70% and 0.70% of the Fund’s average daily net assets for Class A, Class C and Class I, respectively. These agreements may be changed or terminated after May 31, 2014. Pursuant to these agreements, EVM was allocated $95,111 and $51,442, respectively, of Intermediate Term Fund’s and Long Term Fund’s operating expenses for the six months ended July 31, 2013.
EVM serves as the sub-transfer agent of each Fund and receives from the transfer agent an aggregate fee based upon the actual expenses incurred by EVM in the performance of these services. Eaton Vance Distributors, Inc. (EVD), an affiliate of EVM and the Funds’ principal underwriter, received a portion of the sales charges on sales of Class A shares of the Funds. EVD also received distribution and service fees from Class A and Class C shares (see Note 4) and contingent deferred sales charges (see Note 5). Sub-transfer agent fees earned by EVM and Class A sales charges that the Funds were informed were received by EVD for the six months ended July 31, 2013 were as follows:
| | | | | | | | | | | | |
| | Short Term Fund | | | Intermediate Term Fund | | | Long Term Fund | |
| | | |
EVM’s Sub-Transfer Agent Fees | | $ | 2,216 | | | $ | 576 | | | $ | 239 | |
EVD’s Class A Sales Charges | | $ | 12,737 | | | $ | 4,397 | | | $ | 2,556 | |
Trustees and officers of the Funds who are members of EVM’s organization receive remuneration for their services to the Fund out of the investment adviser and administration fee. Trustees of the Funds 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 July 31, 2013, no significant amounts have been deferred. Certain officers and Trustees of the Funds are officers of EVM.
4 Distribution Plans
Each Fund has in effect a distribution plan for Class A shares (Class A Plan) pursuant to Rule 12b-1 under the 1940 Act. Pursuant to the Class A Plan, each Fund pays EVD a distribution and service fee of 0.25% per annum of its average daily net assets attributable to Class A shares for distribution services and facilities provided to each Fund by EVD, as well as for personal services and/or the maintenance of shareholder accounts. Distribution and service fees paid or accrued to EVD for the six months ended July 31, 2013 for Class A shares amounted to the following:
| | | | | | | | | | | | |
| | Short Term Fund | | | Intermediate Term Fund | | | Long Term Fund | |
| | | |
Class A Distribution and Service Fees | | $ | 573,642 | | | $ | 133,950 | | | $ | 13,063 | |
Each Fund also has in effect a distribution plan for Class C shares (Class C Plan) pursuant to Rule 12b-1 under the 1940 Act. Pursuant to the Class C Plan, each Fund pays EVD amounts equal to 0.75% per annum of its average daily net assets attributable to Class C shares for providing ongoing distribution services and facilities to the Funds. For the six months ended July 31, 2013, the Funds paid or accrued to EVD the following distribution fees, representing 0.75% (annualized) of the average daily net assets of each Fund’s Class C shares:
| | | | | | | | | | | | |
| | Short Term Fund | | | Intermediate Term Fund | | | Long Term Fund | |
| | | |
Class C Distribution Fees | | $ | 772,786 | | | $ | 206,091 | | | $ | 15,434 | |
Pursuant to the Class C Plan, the Funds also make payments of service fees to EVD, financial intermediaries and other persons in amounts equal to 0.25% per annum of the average daily net assets attributable to Class C shares. Service fees paid or accrued are for personal services and/or the maintenance of shareholder accounts. They are separate and distinct from the sales commissions and distribution fees payable to EVD. Service fees paid or accrued for the six months ended July 31, 2013 amounted to the following:
| | | | | | | | | | | | |
| | Short Term Fund | | | Intermediate Term Fund | | | Long Term Fund | |
| | | |
Class C Service Fees | | $ | 257,595 | | | $ | 68,697 | | | $ | 5,144 | |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Notes to Financial Statements (Unaudited) — continued
5 Contingent Deferred Sales Charges
A contingent deferred sales charge (CDSC) of 1% generally is imposed on redemptions of Class C shares made within one year of purchase. Class A shares may be subject to a 1% CDSC if redeemed within eighteen months of purchase (depending on the circumstances of purchase). Generally, the CDSC is based upon the lower of the net asset value at date of redemption or date of purchase. No charge is levied on shares acquired by reinvestment of dividends or capital gain distributions. No CDSC is levied on shares which have been sold to EVM or its affiliates or to their respective employees or clients and may be waived under certain other limited conditions. For the six months ended July 31, 2013, the Funds were informed that EVD received approximately the following amounts of CDSCs paid by Class A and Class C shareholders:
| | | | | | | | | | | | |
| | Short Term Fund | | | Intermediate Term Fund | | | Long Term Fund | |
| | | |
Class A | | $ | 142,000 | | | $ | 23,000 | | | $ | 7,000 | |
Class C | | $ | 33,000 | | | $ | 30 | | | $ | 0 | |
6 Purchases and Sales of Investments
Purchases and sales of investments, other than short-term obligations, for the six months ended July 31, 2013 were as follows:
| | | | | | | | | | | | |
| | Short Term Fund | | | Intermediate Term Fund | | | Long Term Fund | |
| | | |
Purchases | | $ | 479,754,436 | | | $ | 288,385,671 | | | $ | 40,537,486 | |
Sales | | $ | 593,329,602 | | | $ | 338,029,915 | | | $ | 48,288,086 | |
7 Shares of Beneficial Interest
Each Fund’s Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Such shares may be issued in a number of different series (such as the Funds) and classes. Transactions in Fund shares were as follows:
| | | | | | | | | | | | |
Short Term Fund | | | | | | | | | |
| | Six Months Ended July 31, 2013 (Unaudited) | |
| | Class A | | | Class C | | | Class I | |
| | | |
Sales | | | 4,655,708 | | | | 1,604,814 | | | | 6,052,763 | |
Issued to shareholders electing to receive payments of distributions in Fund shares | | | 109,124 | | | | 597 | | | | 74,025 | |
Redemptions | | | (14,419,219 | ) | | | (5,259,255 | ) | | | (10,959,215 | ) |
| | | |
Net decrease | | | (9,654,387 | ) | | | (3,653,844 | ) | | | (4,832,427 | ) |
| | | |
| | | | | | | | | | | | |
| | Year Ended January 31, 2013 | |
| | Class A | | | Class C | | | Class I | |
| | | |
Sales | | | 20,177,050 | | | | 8,600,444 | | | | 18,440,022 | |
Issued to shareholders electing to receive payments of distributions in Fund shares | | | 1,083,552 | | | | 372,064 | | | | 583,067 | |
Redemptions | | | (18,427,121 | ) | | | (5,051,897 | ) | | | (16,186,917 | ) |
| | | |
Net increase | | | 2,833,481 | | | | 3,920,611 | | | | 2,836,172 | |
| | | |
| | | | | | | | | | | | |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Notes to Financial Statements (Unaudited) — continued
| | | | | | | | | | | | |
Intermediate Term Fund | | | | | | | | | |
| | Six Months Ended July 31, 2013 (Unaudited) | |
| | Class A | | | Class C | | | Class I | |
| | | |
Sales | | | 1,972,612 | | | | 509,920 | | | | 5,319,311 | |
Issued to shareholders electing to receive payments of distributions in Fund shares | | | 28,248 | | | | 642 | | | | 27,551 | |
Redemptions | | | (3,521,609 | ) | | | (1,399,218 | ) | | | (8,438,379 | ) |
| | | |
Net decrease | | | (1,520,749 | ) | | | (888,656 | ) | | | (3,091,517 | ) |
| | | |
| | | | | | | | | | | | |
| | Year Ended January 31, 2013 | |
| | Class A | | | Class C | | | Class I | |
| | | |
Sales | | | 7,852,159 | | | | 3,384,641 | | | | 18,699,007 | |
Issued to shareholders electing to receive payments of distributions in Fund shares | | | 143,921 | | | | 35,725 | | | | 114,942 | |
Redemptions | | | (4,021,803 | ) | | | (675,023 | ) | | | (6,567,181 | ) |
| | | |
Net increase | | | 3,974,277 | | | | 2,745,343 | | | | 12,246,768 | |
| | | |
| | | | | | | | | | | | |
Long Term Fund | | | | | | | | | |
| | Six Months Ended July 31, 2013 (Unaudited) | |
| | Class A | | | Class C | | | Class I | |
| | | |
Sales | | | 147,181 | | | | 37,763 | | | | 244,217 | |
Issued to shareholders electing to receive payments of distributions in Fund shares | | | 6,285 | | | | 1,115 | | | | 3,721 | |
Redemptions | | | (820,067 | ) | | | (172,946 | ) | | | (124,370 | ) |
| | | |
Net increase (decrease) | | | (666,601 | ) | | | (134,068 | ) | | | 123,568 | |
| | | |
| | | | | | | | | | | | |
| | Year Ended January 31, 2013 | |
| | Class A | | | Class C | | | Class I | |
| | | |
Sales | | | 1,211,724 | | | | 438,357 | | | | 332,944 | |
Issued to shareholders electing to receive payments of distributions in Fund shares | | | 98,982 | | | | 24,064 | | | | 26,010 | |
Redemptions | | | (1,448,945 | ) | | | (96,844 | ) | | | (1,671,590 | ) |
| | | |
Net increase (decrease) | | | (138,239 | ) | | | 365,577 | | | | (1,312,636 | ) |
At July 31, 2013, EVM owned approximately 28% of the value of the outstanding shares of Tax-Advantaged Bond Strategies Long Term Fund.
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Notes to Financial Statements (Unaudited) — continued
8 Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of investments of each Fund at July 31, 2013, as determined on a federal income tax basis, were as follows:
| | | | | | | | | | | | |
| | Short Term Fund | | | Intermediate Term Fund | | | Long Term Fund | |
| | | |
Aggregate cost | | $ | 847,467,868 | | | $ | 341,043,240 | | | $ | 19,967,923 | |
| | | |
Gross unrealized appreciation | | $ | 11,868,434 | | | $ | 1,733,551 | | | $ | 100,675 | |
Gross unrealized depreciation | | | (5,182,493 | ) | | | (7,373,159 | ) | | | (688,081 | ) |
| | | |
Net unrealized appreciation (depreciation) | | $ | 6,685,941 | | | $ | (5,639,608 | ) | | $ | (587,406 | ) |
9 Line of Credit
The Funds participate with other portfolios and funds managed by EVM and its affiliates in a $600 million unsecured line of credit agreement with a group of banks. Borrowings are made by the Funds solely to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Interest is charged to each Fund based on its borrowings at an amount above either the Eurodollar rate or Federal Funds rate. In addition, a fee computed at an annual rate of 0.08% on the daily unused portion of the line of credit is allocated among the participating portfolios and funds at the end of each quarter. Because the line of credit is not available exclusively to the Funds, a Fund may be unable to borrow some or all of its requested amounts at any particular time. The Funds did not have any significant borrowings or allocated fees during the six months ended July 31, 2013.
10 Fair Value Measurements
Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
Ÿ | | Level 1 – quoted prices in active markets for identical investments |
Ÿ | | Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
Ÿ | | Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments) |
In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
At July 31, 2013, the hierarchy of inputs used in valuing the Funds’ investments, which are carried at value, were as follows:
| | | | | | | | | | | | | | | | |
Short Term Fund | | | | | | | | | | | | |
Asset Description | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| | | | |
Tax-Exempt Municipal Securities | | $ | — | | | $ | 843,890,529 | | | $ | — | | | $ | 843,890,529 | |
Taxable Municipal Securities | | | — | | | | 243,680 | | | | — | | | | 243,680 | |
Short-Term Investments | | | — | | | | 10,019,600 | | | | — | | | | 10,019,600 | |
| | | | |
Total Investments | | $ | — | | | $ | 854,153,809 | | | $ | — | | | $ | 854,153,809 | |
| | | | |
| | | | | | | | | | | | | | | | |
Intermediate Term Fund | | | | | | | | | | | | |
Asset Description | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| | | | |
Tax-Exempt Investments | | $ | — | | | $ | 335,403,632 | | | $ | — | | | $ | 335,403,632 | |
| | | | |
Total Investments | | $ | — | | | $ | 335,403,632 | | | $ | — | | | $ | 335,403,632 | |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Notes to Financial Statements (Unaudited) — continued
| | | | | | | | | | | | | | | | |
Long Term Fund | | | | | | | | | | | | |
Asset Description | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| | | | |
Tax-Exempt Investments | | $ | — | | | $ | 19,380,517 | | | $ | — | | | $ | 19,380,517 | |
| | | | |
Total Investments | | $ | — | | | $ | 19,380,517 | | | $ | — | | | $ | 19,380,517 | |
The Funds held no investments or other financial instruments as of January 31, 2013 whose fair value was determined using Level 3 inputs. At July 31, 2013, there were no investments transferred between Level 1 and Level 2 during the six months then ended.
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Board of Trustees’ Contract Approval
Overview of the Contract Review Process
The Investment Company Act of 1940, as amended (the “1940 Act”), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuation is approved at least annually by the fund’s 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 23, 2013, 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 by each adviser to the Eaton Vance Funds (including information specifically requested by the Board) for a series of meetings of the Contract Review Committee held between February and April 2013, as well as information considered during prior meetings of the committee. Such information included, among other things, the following:
Information about Fees, Performance and Expenses
Ÿ | | An independent report comparing the advisory and related fees paid by each fund with fees paid by comparable funds; |
Ÿ | | An independent report comparing each fund’s total expense ratio and its components to comparable funds; |
Ÿ | | An independent report comparing the investment performance of each fund (including, where relevant, yield data, Sharpe ratios and information ratios) to the investment performance of comparable funds over various time periods; |
Ÿ | | Data regarding investment performance in comparison to benchmark indices and customized peer groups, in each case as approved by the Board with respect to the funds; |
Ÿ | | For each fund, comparative information concerning the fees charged and the services provided by each adviser in managing other accounts (including mutual funds, other collective investment funds and institutional accounts) using investment strategies and techniques similar to those used in managing such fund; |
Ÿ | | Profitability analyses for each adviser with respect to each fund; |
Information about Portfolio Management and Trading
Ÿ | | 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; |
Ÿ | | Information about 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 client commission arrangements and the fund’s policies with respect to “soft dollar” arrangements; |
Ÿ | | Data relating to portfolio turnover rates of each fund; |
Ÿ | | 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; |
Ÿ | | Information about each adviser’s processes for monitoring best execution of portfolio transactions, and other policies and practices of each adviser with respect to trading; |
Information about each Adviser
Ÿ | | Reports detailing the financial results and condition of each adviser; |
Ÿ | | 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; |
Ÿ | | 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; |
Ÿ | | Copies of or descriptions of each adviser’s policies and procedures relating to proxy voting, the handling of corporate actions and class actions; |
Ÿ | | 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; |
Ÿ | | Descriptions of the business continuity and disaster recovery plans of each adviser and its affiliates; |
Ÿ | | A description of Eaton Vance Management’s procedures for overseeing third party advisers and sub-advisers, including with respect to regulatory and compliance issues, investment management and other matters; |
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Board of Trustees’ Contract Approval — continued
Other Relevant Information
Ÿ | | Information concerning the nature, cost and character of the administrative and other non-investment management services provided by Eaton Vance Management and its affiliates; |
Ÿ | | Information concerning management of the relationship with the custodian, subcustodians and fund accountants by each adviser or the funds’ administrator; and |
Ÿ | | The terms of each advisory agreement. |
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, 2013, with respect to one or more funds, the Board met eight 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 eight, twenty-one, five, nine and thirteen times respectively. At such meetings, the Trustees participated in investment and performance reviews with the portfolio managers and other investment professionals of each adviser relating to each fund. The Board and its Committees considered the investment and trading strategies used in pursuing each fund’s investment objective, including, where relevant, the use of derivative instruments, as well as processes for monitoring best execution of portfolio transactions and risk management techniques. The Board and its Committees also evaluated issues pertaining to industry and regulatory developments, compliance procedures, fund governance and other issues with respect to the funds, and received and participated in reports and presentations provided by Eaton Vance Management and other fund advisers with respect to such matters.
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 fund’s 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 continuation of the investment advisory and administrative agreements of the following funds:
Ÿ | | Eaton Vance Tax-Advantaged Bond Strategies Intermediate Term Fund |
Ÿ | | Eaton Vance Tax-Advantaged Bond Strategies Long Term Fund |
Ÿ | | Eaton Vance Tax-Advantaged Bond Strategies Short Term Fund |
(the “Funds”) with Eaton Vance Management (the “Adviser”), including their fee structures, is in the interests of shareholders and, therefore, the Contract Review Committee recommended to the Board approval of each agreement. The Board accepted the recommendation of the Contract Review Committee as well as the factors considered and conclusions reached by the Contract Review Committee with respect to each agreement. Accordingly, the Board, including a majority of the Independent Trustees, voted to approve continuation of the investment advisory and administrative agreement for each Fund.
Nature, Extent and Quality of Services
In considering whether to approve the investment advisory and administrative agreements of the Funds, the Board evaluated the nature, extent and quality of services provided to the Funds by the Adviser.
The Board considered the Adviser’s management capabilities and investment process with respect to the types of investments held by each Fund, including the education, experience and number of its investment professionals and other personnel who provide portfolio management, investment research, and similar services to the Funds, including (for Eaton Vance Tax-Advantaged Bond Strategies Long Term Fund) recent changes to such personnel. In particular, the Board considered 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, Treasury securities and other securities backed by the U.S. government or its agencies. The Board considered the Adviser’s tax-advantaged bond strategies (“TABS”) group, which includes portfolio managers and credit specialists who provide services to the Funds. The Board also took into account the resources dedicated to portfolio management and other services, including the compensation methods of the Adviser to recruit and retain investment personnel, and the time and attention devoted to each Fund by senior management.
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Board of Trustees’ Contract Approval — continued
The Board 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, including the ability, in many cases, to exchange an investment among different funds without incurring additional sales charges.
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 and administrative agreements.
Fund Performance
The Board compared each Fund’s 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-year period ended September 30, 2012 for Eaton Vance Tax-Advantaged Bond Strategies Intermediate Term Fund and Eaton Vance Tax-Advantaged Bond Strategies Long Term Fund and comparative performance data for the one-, three-, five- and ten-year periods for Eaton Vance Tax-Advantaged Bond Strategies Short Term Fund. On the basis of the foregoing and other relevant information provided by the Adviser in response to inquiries from the Contract Review Committee, the Board concluded that the performance of each of the Funds was satisfactory.
Management Fees and Expenses
The Board reviewed contractual investment advisory and administrative fee rates payable by each Fund (referred to as “management fees”). As part of its review, the Board considered the management fees and each Fund’s total expense ratio for the year ended September 30, 2012, as compared to a group of similarly managed funds selected by an independent data provider. The Board noted that the Adviser had waived fees and/or paid expenses for each of Eaton Vance Tax-Advantaged Bond Strategies Intermediate Term Fund and Eaton Vance Tax-Advantaged Bond Strategies Long Term Fund. The Board also considered factors that had an impact on Fund expense ratios relative to the peer group, as identified by management in response to inquiries from the Contract Review Committee, as well as actions taken by management in recent years to reduce expenses at the Eaton Vance fund complex level, including the negotiation of reduced fees for transfer agency and custody services.
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 each Fund and to all Eaton Vance Funds as a group. The Board considered the level of profits realized without regard to revenue sharing or other payments by the Adviser and its affiliates to third parties in respect of distribution services. The Board also considered other direct or indirect benefits received by the Adviser and its affiliates in connection with their relationships with the Funds, including the benefits of research services that may be available to the Adviser as a result of securities transactions effected for the Funds and other investment advisory clients.
The Board concluded that, in light of the foregoing factors and the nature, extent and quality of the services rendered, the profits realized by the Adviser and its affiliates are reasonable.
Economies of Scale
In reviewing management fees and profitability, the Board also considered the extent to which the Adviser and its affiliates, on the one hand, and each Fund, on the other hand, can expect to realize benefits from economies of scale as the assets of each 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 reviewed data summarizing the increases and decreases in the assets of each Fund and of all Eaton Vance Funds as a group over various time periods, and evaluated the extent to which the total expense ratio of each Fund and the profitability of the Adviser and its affiliates may have been affected by such increases or decreases. Based upon the foregoing, the Board concluded that each Fund currently shares in the benefits from economies of scale. The Board also concluded that, assuming reasonably foreseeable increases in the assets of each Fund, the structure of the advisory fee, which includes breakpoints at several asset levels, will allow each Fund to continue to benefit from economies of scale in the future.
Eaton Vance
Tax-Advantaged Bond Strategies Funds
July 31, 2013
Officers and Trustees
Officers of Eaton Vance Municipals Trust II
Cynthia J. Clemson
President
Payson F. Swaffield
Vice President
Maureen A. Gemma
Vice President, Secretary and
Chief Legal Officer
James F. Kirchner
Treasurer
Paul M. O’Neil
Chief Compliance Officer
Trustees of Eaton Vance Municipals Trust II
Ralph F. Verni
Chairman
Scott E. Eston
Benjamin C. Esty
Thomas E. Faust Jr.*
Allen R. Freedman
William H. Park
Ronald A. Pearlman
Helen Frame Peters
Lynn A. Stout
Harriett Tee Taggart
Eaton Vance Funds
IMPORTANT NOTICES
Privacy. The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy (“Privacy Policy”) with respect to nonpublic personal information about its customers:
Ÿ | | Only such information received from you, through application forms or otherwise, and information about your Eaton Vance fund transactions will be collected. This may include information such as name, address, social security number, tax status, account balances and transactions. |
Ÿ | | None of such information about you (or former customers) will be disclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to service your account). In the normal course of servicing a customer’s account, Eaton Vance may share information with unaffiliated third parties that perform various required services such as transfer agents, custodians and broker-dealers. |
Ÿ | | Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information. |
Ÿ | | We reserve the right to change our Privacy Policy at any time upon proper notification to you. Customers may want to review our Privacy Policy periodically for changes by accessing the link on our homepage: www.eatonvance.com. |
Our pledge of privacy applies to the following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance Investment Counsel, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management’s Real Estate Investment Group and Boston Management and Research. In addition, our Privacy Policy applies only to those Eaton Vance customers who are individuals and who have a direct relationship with us. If a customer’s account (i.e., fund shares) is held in the name of a third-party financial advisor/broker-dealer, it is likely that only such advisor’s privacy policies apply to the customer. This notice supersedes all previously issued privacy disclosures. For more information about Eaton Vance’s Privacy Policy, please call 1-800-262-1122.
Delivery of Shareholder Documents. The Securities and Exchange Commission (SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called “householding” and it helps eliminate duplicate mailings to shareholders. Eaton Vance, or your financial advisor, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial advisor, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial advisor. Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial advisor.
Portfolio Holdings. Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) will file a schedule of portfolio holdings on Form N-Q with the SEC for the first and third quarters of each fiscal year. The Form N-Q will be available on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SEC’s website at www.sec.gov. Form N-Q may also be reviewed and copied at the SEC’s public reference room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the public reference room).
Proxy Voting. From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds’ and Portfolios’ Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge, upon request, by calling 1-800-262-1122 and by accessing the SEC’s website at www.sec.gov.
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Investment Adviser and Administrator
Eaton Vance Management
Two International Place
Boston, MA 02110
Principal Underwriter*
Eaton Vance Distributors, Inc.
Two International Place
Boston, MA 02110
(617) 482-8260
Custodian
State Street Bank and Trust Company
200 Clarendon Street
Boston, MA 02116
Transfer Agent
BNY Mellon Asset Servicing (US) Inc.
Attn: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02940-9653
(800) 262-1122
Offices of the Funds
Two International Place
Boston, MA 02110
* | FINRA BrokerCheck. Investors may check the background of their Investment Professional by contacting the Financial Industry Regulatory Authority (FINRA). FINRA BrokerCheck is a free tool to help investors check the professional background of current and former FINRA-registered securities firms and brokers. FINRA BrokerCheck is available by calling 1-800-289-9999 and at www.FINRA.org. The FINRA BrokerCheck brochure describing the program is available to investors at www.FINRA.org. |
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-13-381792/g581105u44053_bwlogo.jpg)
Item 2. Code of Ethics
Not required in this filing.
Item 3. Audit Committee Financial Expert
The registrant’s Board has designated William H. Park, an independent trustee, as its audit committee financial expert. Mr. Park is a certified public accountant who is a consultant and private investor. Previously, he served as the Chief Financial Officer of Aveon Group, L.P. (an investment management firm), as the Vice Chairman of Commercial Industrial Finance Corp. (specialty finance company), as President and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm), as Executive Vice President and Chief Financial Officer of United Asset Management Corporation (an institutional investment management firm) and as a Senior Manager at Price Waterhouse (now PricewaterhouseCoopers) (an independent registered public accounting firm).
Item 4. Principal Accountant Fees and Services
Not required in this filing.
Item 5. Audit Committee of Listed Registrants
Not required in this filing.
Item 6. Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not required in this filing.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not required in this filing.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not required in this filing.
Item 10. Submission of Matters to a Vote of Security Holders
No Material Changes.
Item 11. Controls and Procedures
(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrant’s internal controls over financial reporting during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits
| | |
(a)(1) | | Registrant’s Code of Ethics – Not applicable (please see Item 2). |
(a)(2)(i) | | Treasurer’s Section 302 certification. |
(a)(2)(ii) | | President’s Section 302 certification. |
(b) | | Combined Section 906 certification. |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Eaton Vance Municipals Trust II
| | |
By: | | /s/ Cynthia J. Clemson |
| | Cynthia J. Clemson |
| | President |
| |
Date: | | September 12, 2013 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | |
By: | | /s/ James F. Kirchner |
| | James F. Kirchner |
| | Treasurer |
| |
Date: | | September 12, 2013 |
| | |
By: | | /s/ Cynthia J. Clemson |
| | Cynthia J. Clemson |
| | President |
| |
Date: | | September 12, 2013 |