Eaton Vance California Municipal Bond Fund II
 
 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-21217
Eaton Vance California Municipal Bond Fund II
(Exact Name of Registrant as Specified in Charter)
Two International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
Maureen A. Gemma
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
(617) 482-8260
(Registrant’s Telephone Number)
September 30
Date of Fiscal Year End
March 31, 2012
Date of Reporting Period
 
 

 


 

Item 1. Reports to Stockholders

 


 

     
Eaton Vance
Municipal Bond Funds

Semiannual Report
March 31, 2012
 
(STOPWATCH GRAPHIC)

 
Municipal II (EIV) • California II (EIA) • Massachusetts (MAB) • Michigan (MIW)
New Jersey (EMJ) • New York II (NYH) • Ohio (EIO) • Pennsylvania (EIP)
 
 
 
(EATON VANCE INVESTMENT MANAGERS LOGO)


 

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


 

Semiannual Report March 31, 2012
Eaton Vance
Municipal Bond Funds
Table of Contents
         
Performance and Fund Profile
       
 
       
 
   
    2  
    3  
    4  
    5  
    6  
    7  
    8  
    9  
 
       
 
   
    10  
Financial Statements
    11  
Notice to Shareholders
    69  
Officers and Trustees
    70  
Important Notices
    71  

 


 

Eaton Vance
Municipal Bond Fund II
March 31, 2012
Portfolio Manager William H. Ahern, Jr., CFA
Performance1,2
 
                                         
                                    Since
% Average Annual Total Returns   Inception Date   Six Months   One Year   Five Years   Inception
 
Fund at NAV
    11/29/2002       9.25 %     30.82 %     2.63 %     5.71 %
Fund at Market Price
          13.10       23.32       5.34       7.22  
Barclays Capital Long (22+) Municipal Bond Index
    11/29/2002       5.88 %     19.97 %     4.83 %     5.75 %
 
   
% Premium/Discount to NAV
                                       
 
 
                                    14.18 %
 
   
Distributions3
                                       
 
Total Distributions per share for the period
                                  $ 0.479  
Distribution Rate at NAV
                                    7.55 %
Taxable-Equivalent Distribution Rate at NAV
                                    11.62 %
Distribution Rate at Market Price
                                    6.61 %
Taxable-Equivalent Distribution Rate at Market Price
                                    10.17 %
 
   
% Total Leverage4
                                       
 
Auction Preferred Shares (APS)
                                    20.58 %
Residual Interest Bond (RIB)
                                    21.03  
Fund Profile
 
Credit Quality (% of total investments)5
 
(BAR CHART)
The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.4 Absent such securities, the Fund’s credit quality (% of total investments) is as follows:5
                         
 
AAA
    11.0 %   BBB     8.2 %
AA
    66.8     D     1.0  
A
    13.0          
 
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

2


 

Eaton Vance
California Municipal Bond Fund II
March 31, 2012
Portfolio Manager Cynthia J. Clemson
Performance1,2
 
                                         
                                    Since
% Average Annual Total Returns   Inception Date   Six Months   One Year   Five Years   Inception
 
Fund at NAV
    11/29/2002       11.49 %     33.64 %     2.85 %     5.22 %
Fund at Market Price
          5.41       29.64       2.98       5.08  
Barclays Capital Long (22+) Municipal Bond Index
    11/29/2002       5.88 %     19.97 %     4.83 %     5.75 %
 
   
% Premium/Discount to NAV
                                       
 
 
                                    -1.19 %
 
   
Distributions3
                                       
 
Total Distributions per share for the period
                                  $ 0.408  
Distribution Rate at NAV
                                    6.09 %
Taxable-Equivalent Distribution Rate at NAV
                                    10.45 %
Distribution Rate at Market Price
                                    6.17 %
Taxable-Equivalent Distribution Rate at Market Price
                                    10.58 %
 
   
% Total Leverage4
                                       
 
APS
                                    30.34 %
RIB
                                    11.67  
Fund Profile
 
Credit Quality (% of total investments)5
 
(BAR CHART)
The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.4 Absent such securities, the Fund’s credit quality (% of total investments) is as follows:5
                         
 
AAA
    17.3 %   BBB     3.4 %
AA
    59.6     BB     1.6  
A
    18.1          
 
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

3


 

Eaton Vance
Massachusetts Municipal Bond Fund
March 31, 2012
Portfolio Manager Craig R. Brandon, CFA
Performance1,2
 
                                         
                                    Since
% Average Annual Total Returns   Inception Date   Six Months   One Year   Five Years   Inception
 
Fund at NAV
    11/29/2002       8.10 %     27.17 %     4.82 %     6.44 %
Fund at Market Price
          11.45       30.07       5.68       6.86  
Barclays Capital Long (22+) Municipal Bond Index
    11/29/2002       5.88 %     19.97 %     4.83 %     5.75 %
 
   
% Premium/Discount to NAV
                                       
 
 
                                    3.75 %
 
   
Distributions3
                                       
 
Total Distributions per share for the period
                                    $0.420  
Distribution Rate at NAV
                                    5.62 %
Taxable-Equivalent Distribution Rate at NAV
                                    9.13 %
Distribution Rate at Market Price
                                    5.42 %
Taxable-Equivalent Distribution Rate at Market Price
                                    8.81 %
 
   
% Total Leverage4
                                       
 
APS
                                    31.33 %
RIB
                                    7.69  
Fund Profile
 
Credit Quality (% of total investments)5
 
(BAR CHART)
The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.4 Absent such securities, the Fund’s credit quality (% of total investments) is as follows:5
                         
 
AAA
    17.6 %   BBB     5.0 %
AA
    44.2     Not Rated     6.5  
A
    26.7            
 
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

4


 

Eaton Vance
Michigan Municipal Bond Fund
March 31, 2012
Portfolio Manager William H. Ahern, Jr., CFA
Performance1,2
 
                                         
                                    Since
% Average Annual Total Returns   Inception Date   Six Months   One Year   Five Years   Inception
 
Fund at NAV
    11/29/2002       7.17 %     20.02 %     4.96 %     6.27 %
Fund at Market Price
          14.04       11.81       6.86       6.62  
Barclays Capital Long (22+) Municipal Bond Index
    11/29/2002       5.88 %     19.97 %     4.83 %     5.75 %
 
   
% Premium/Discount to NAV
                                       
 
 
                                    3.15 %
 
   
Distributions3
                                       
 
Total Distributions per share for the period
                                    $0.444  
Distribution Rate at NAV
                                    6.09 %
Taxable-Equivalent Distribution Rate at NAV
                                    9.80 %
Distribution Rate at Market Price
                                    5.91 %
Taxable-Equivalent Distribution Rate at Market Price
                                    9.51 %
 
   
% Total Leverage4
                                       
 
APS
                                    37.64 %
Fund Profile
 
Credit Quality (% of total investments)5
 
(BAR CHART)
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

5


 

Eaton Vance
New Jersey Municipal Bond Fund
March 31, 2012
Portfolio Manager Adam A. Weigold, CFA
Performance1,2
 
                                         
                                    Since
% Average Annual Total Returns   Inception Date   Six Months   One Year   Five Years   Inception
 
Fund at NAV
    11/29/2002       9.85 %     23.29 %     4.13 %     6.38 %
Fund at Market Price
          12.99       23.53       5.30       6.87  
Barclays Capital Long (22+) Municipal Bond Index
    11/29/2002       5.88 %     19.97 %     4.83 %     5.75 %
 
   
% Premium/Discount to NAV
                                       
 
 
                                    4.34 %
 
   
Distributions3
                                       
 
Total Distributions per share for the period
                                    $0.422  
Distribution Rate at NAV
                                    5.56 %
Taxable-Equivalent Distribution Rate at NAV
                                    9.40 %
Distribution Rate at Market Price
                                    5.32 %
Taxable-Equivalent Distribution Rate at Market Price
                                    8.99 %
 
   
% Total Leverage4
                                       
 
APS
                                    32.18 %
RIB
                                    7.87  
Fund Profile
 
Credit Quality (% of total investments)5
 
(BAR CHART)
The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.4 Absent such securities, the Fund’s credit quality (% of total investments) is as follows:5
                         
 
AAA
    7.6 %   BBB     7.1 %
AA
    60.0          
A
    25.3          
 
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

6


 

Eaton Vance
New York Municipal Bond Fund II
March 31, 2012
Portfolio Manager Craig R. Brandon, CFA
Performance1,2
 
                                         
                                    Since
% Average Annual Total Returns   Inception Date   Six Months   One Year   Five Years   Inception
 
Fund at NAV
    11/29/2002       7.75 %     21.91 %     3.38 %     5.98 %
Fund at Market Price
          9.23       22.43       3.79       6.25  
Barclays Capital Long (22+) Municipal Bond Index
    11/29/2002       5.88 %     19.97 %     4.83 %     5.75 %
 
   
% Premium/Discount to NAV
                                       
 
 
                                    2.40 %
 
   
Distributions3
                                       
 
Total Distributions per share for the period
                                    $0.421  
Distribution Rate at NAV
                                    6.32 %
Taxable-Equivalent Distribution Rate at NAV
                                    10.66 %
Distribution Rate at Market Price
                                    6.17 %
Taxable-Equivalent Distribution Rate at Market Price
                                    10.41 %
 
   
% Total Leverage4
                                       
 
APS
                                    23.34 %
RIB
                                    16.50  
Fund Profile
 
Credit Quality (% of total investments)5
 
(BAR CHART)
The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.4 Absent such securities, the Fund’s credit quality (% of total investments) is as follows:5
                         
 
AAA
    20.0 %   BBB     10.4 %
AA
    48.3     Not Rated     0.8  
A
    20.5            
 
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

7


 

Eaton Vance
Ohio Municipal Bond Fund
March 31, 2012
Portfolio Manager William H. Ahern, Jr., CFA
Performance1,2
 
                                         
                                    Since
% Average Annual Total Returns   Inception Date   Six Months   One Year   Five Years   Inception
 
Fund at NAV
    11/29/2002       10.19 %     26.08 %     2.46 %     4.82 %
Fund at Market Price
          13.43       31.43       4.35       5.65  
Barclays Capital Long (22+) Municipal Bond Index
    11/29/2002       5.88 %     19.97 %     4.83 %     5.75 %
 
   
% Premium/Discount to NAV
                                       
 
 
                                    7.65 %
 
   
Distributions3
                                       
 
Total Distributions per share for the period
                                  $ 0.386  
Distribution Rate at NAV
                                    5.91 %
Taxable-Equivalent Distribution Rate at NAV
                                    9.66 %
Distribution Rate at Market Price
                                    5.49 %
Taxable-Equivalent Distribution Rate at Market Price
                                    8.98 %
 
   
% Total Leverage4
                                       
 
APS
                                    32.90 %
RIB
                                    3.04  
Fund Profile
 
Credit Quality (% of total investments)5
 
(BAR CHART)
The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.4 Absent such securities, the Fund’s credit quality (% of total investments) is as follows:5
                         
 
AAA
    4.0 %   BBB     8.9 %
AA
    58.7     Not Rated     2.9  
A
    25.5          
 
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

8


 

Eaton Vance
Pennsylvania Municipal Bond Fund
March 31, 2012
Portfolio Manager Adam A. Weigold, CFA
Performance1,2
 
                                         
                                    Since
% Average Annual Total Returns   Inception Date   Six Months   One Year   Five Years   Inception
 
Fund at NAV
    11/29/2002       8.22 %     26.61 %     4.57 %     6.26 %
Fund at Market Price
          9.38       20.72       5.24       6.26  
Barclays Capital Long (22+) Municipal Bond Index
    11/29/2002       5.88 %     19.97 %     4.83 %     5.75 %
 
   
% Premium/Discount to NAV
                                       
 
 
                                    –0.07 %
 
   
Distributions3
                                       
 
Total Distributions per share for the period
                                    $0.437  
Distribution Rate at NAV
                                    6.32 %
Taxable-Equivalent Distribution Rate at NAV
                                    10.03 %
Distribution Rate at Market Price
                                    6.33 %
Taxable-Equivalent Distribution Rate at Market Price
                                    10.05 %
 
   
% Total Leverage4
                                       
 
APS
                                    33.63 %
RIB
                                    3.16  
Fund Profile
 
Credit Quality (% of total investments)5
 
(BAR CHART)
The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.4 Absent such securities, the Fund’s credit quality (% of total investments) is as follows:5
                         
 
AAA
    0.6 %   BBB     8.0 %
AA
    52.9     Not Rated     6.3  
A
    32.2          
 
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

9


 

Eaton Vance
Municipal Bond Funds
March 31, 2012
Endnotes and Additional Disclosures
 
1 Barclays Capital Long (22+) Municipal Bond Index is an unmanaged index of municipal bonds traded in the U.S. with maturities of 22 years or more. Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index.
 
2 Performance results reflect the effects of leverage.
 
3 The Distribution Rate is based on the Fund’s last regular distribution per share in the period (annualized) divided by the Fund’s NAV or market price at the end of the period. The Fund’s distributions may be composed of ordinary income, tax-exempt income, net realized capital gains and return of capital. 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. Subsequent distributions declared, but not reflected in the Fund Profile, reflect a reduction of the monthly distribution for Municipal Bond Fund II and New York Municipal Bond Fund II.
 
4 Fund employs RIB financing and/or APS leverage. The leverage created by RIB investments and APS provides an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater price volatility). The cost of leverage rises and falls with changes in short-term interest rates. See “Floating Rate Notes Issued in Conjunction with Securities Held” in the notes to the financial statements for more information about RIB financing. RIB leverage represents the amount of Floating Rate Notes outstanding at period end as a percentage of Fund net assets applicable to common shares plus APS and Floating Rate Notes. APS leverage represents the liquidation value of the Fund’s APS outstanding at period end as a percentage of Fund net assets applicable to common shares plus APS and Floating Rate Notes. The Fund is required to maintain prescribed asset coverage for its APS, which could be reduced if Fund asset values decline. Floating Rate Notes in both calculations reflect the effect of RIBs purchased in secondary market transactions, if applicable.
 
5 Ratings are based on Moody’s, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency 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.
 
  Fund profile subject to change due to active management.

10


 

 
Eaton Vance
Municipal Bond Fund II
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited)

                     
Tax-Exempt Investments — 167.6%
 
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
 
Education — 12.8%
 
Connecticut Health and Educational Facilities Authority, (Wesleyan University), 5.00%, 7/1/39(1)
  $ 2,200     $ 2,405,766      
Houston, TX, Higher Education Finance Corp., (William Marsh Rice University), 5.00%, 5/15/35
    1,745       1,978,115      
Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.50%, 11/15/36
    2,710       3,251,783      
New Jersey Educational Facilities Authority, (Georgian Court University), 5.25%, 7/1/37
    1,500       1,552,350      
New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/40(1)
    1,500       1,645,455      
New York Dormitory Authority, (State University Educational Facilities), 4.00%, 5/15/28
    1,175       1,225,196      
North Carolina Capital Facilities Finance Agency, (Duke University), 5.00%, 10/1/38(1)
    500       556,230      
Tennessee School Bond Authority, 5.50%, 5/1/38
    1,000       1,144,020      
University of Virginia, 5.00%, 6/1/40
    1,500       1,636,410      
Vermont Educational and Health Buildings Financing Agency, (Middlebury College), 5.00%, 11/1/40
    750       822,007      
 
 
            $ 16,217,332      
 
 
 
 
Electric Utilities — 1.8%
 
South Carolina Public Service Authority, (Santee Cooper), 5.50%, 1/1/38
  $ 1,420     $ 1,591,678      
Wyandotte County/Kansas City, KS, Unified Government Board of Public Utilities, 5.00%, 9/1/36
    685       743,061      
 
 
            $ 2,334,739      
 
 
 
 
Escrowed / Prerefunded — 1.2%
 
New York, NY, Prerefunded to 1/15/13, 5.25%, 1/15/33
  $ 1,510     $ 1,570,325      
 
 
            $ 1,570,325      
 
 
 
 
General Obligations — 13.6%
 
Chicago Park District, IL, (Harbor Facilities), 5.25%, 1/1/37(1)
  $ 1,680     $ 1,827,874      
Delaware Valley, PA, Regional Finance Authority, 5.75%, 7/1/32
    2,500       2,885,000      
Frisco, TX, Independent School District, (PSF Guaranteed), 5.00%, 8/15/37
    1,280       1,430,643      
Hawaii, 5.00%, 12/1/29
    2,500       2,902,075      
Hawaii, 5.00%, 12/1/30
    1,000       1,159,010      
New York, 5.00%, 2/15/34(1)
    2,750       3,076,728      
New York, NY, 5.25%, 1/15/33
    1,990       2,054,456      
Oregon, 5.00%, 8/1/36
    1,000       1,132,590      
Pasadena, TX, Independent School District, (PSF Guaranteed), 5.00%, 2/15/35
    645       732,378      
 
 
            $ 17,200,754      
 
 
 
 
Health Care – Miscellaneous — 2.0%
 
New Jersey Health Care Facilities Financing Authority, (Hospital Asset Transformation Program), 5.75%, 10/1/31
  $ 2,235     $ 2,550,850      
 
 
            $ 2,550,850      
 
 
 
 
Hospital — 4.8%
 
Camden County, NJ, Improvement Authority, (Cooper Health System), 5.00%, 2/15/35
  $ 900     $ 863,820      
Camden County, NJ, Improvement Authority, (Cooper Health System), 5.25%, 2/15/27
    720       725,199      
Hawaii Department of Budget and Finance, (Hawaii Pacific Health), 5.60%, 7/1/33
    500       505,865      
Highlands County, FL, Health Facilities Authority, (Adventist Health System), 5.25%, 11/15/36
    1,285       1,349,661      
Knox County, TN, Health, Educational and Housing Facilities Board, (Covenant Health), 0.00%, 1/1/38
    1,850       482,295      
Knox County, TN, Health, Educational and Housing Facilities Board, (Covenant Health), 0.00%, 1/1/39
    5,000       1,233,350      
Lehigh County, PA, General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32
    960       983,184      
 
 
            $ 6,143,374      
 
 
 
 
Industrial Development Revenue — 0.8%
 
St. John Baptist Parish, LA, (Marathon Oil Corp.), 5.125%, 6/1/37
  $ 1,010     $ 1,044,643      
 
 
            $ 1,044,643      
 
 
 
 
Insured – Education — 6.9%
 
Massachusetts Development Finance Agency, (Boston University), (XLCA), 6.00%, 5/15/59
  $ 2,500     $ 2,933,350      
Miami-Dade County, FL, Educational Facilities Authority, (University of Miami), (AMBAC), (BHAC), 5.00%, 4/1/31
    1,555       1,682,479      
University of South Alabama, (BHAC), 5.00%, 8/1/38
    3,900       4,121,754      
 
 
            $ 8,737,583      
 
 
 
 
Insured – Electric Utilities — 7.4%
 
American Municipal Power-Ohio, Inc., OH, (Prairie State Energy Campus), (AGC), 5.75%, 2/15/39
  $ 1,000     $ 1,117,920      
Chelan County, WA, Public Utility District No. 1, (Columbia River), (NPFG), 0.00%, 6/1/23
    6,335       4,242,486      

 
See Notes to Financial Statements.
11


 

 
Eaton Vance
Municipal Bond Fund II
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited) — continued

                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
Insured – Electric Utilities (continued)
 
                     
Mississippi Development Bank, (Municipal Energy), (XLCA), 5.00%, 3/1/41
  $ 2,205     $ 2,207,249      
South Carolina Public Service Authority, (Santee Cooper), (BHAC), 5.50%, 1/1/38
    1,595       1,790,882      
 
 
            $ 9,358,537      
 
 
 
 
Insured – Escrowed / Prerefunded — 0.1%
 
Highlands County, FL, Health Facilities Authority, (Adventist Health System), (BHAC), Prerefunded to 11/15/16, 5.25%, 11/15/36
  $ 115     $ 137,744      
 
 
            $ 137,744      
 
 
 
 
Insured – General Obligations — 14.4%
 
Cincinnati, OH, City School District, (AGM), (FGIC), 5.25%, 12/1/30
  $ 750     $ 931,695      
Coast Community College District, CA, (Election of 2002), (AGM), 0.00%, 8/1/33
    17,000       5,270,170      
Goodyear, AZ, (NPFG), 3.00%, 7/1/26
    1,350       1,354,212      
Palm Springs, CA, Unified School District, (Election of 2008), (AGC), 5.00%, 8/1/33
    2,750       3,025,000      
Philadelphia, PA, (AGC), 7.00%, 7/15/28
    1,250       1,431,700      
Washington, (AGM), 5.00%, 7/1/25(1)
    5,500       6,235,405      
 
 
            $ 18,248,182      
 
 
 
 
Insured – Hospital — 22.5%
 
Arizona Health Facilities Authority, (Banner Health), (BHAC), 5.375%, 1/1/32
  $ 1,750     $ 1,883,157      
California Statewide Communities Development Authority, (Sutter Health), (AGM), 5.05%, 8/15/38(1)
    1,500       1,562,505      
Centre County, PA, Hospital Authority, (Mount Nittany Medical Center), (AGC), 6.125%, 11/15/39
    1,695       1,775,885      
Centre County, PA, Hospital Authority, (Mount Nittany Medical Center), (AGC), 6.25%, 11/15/44
    450       472,163      
Colorado Health Facilities Authority, (Catholic Health), (AGM), 5.10%, 10/1/41(1)
    2,200       2,293,808      
Highlands County, FL, Health Facilities Authority, (Adventist Health System), (BHAC), 5.25%, 11/15/36(1)
    3,000       3,233,160      
Highlands County, FL, Health Facilities Authority, (Adventist Health System), (NPFG), 5.00%, 11/15/35
    1,490       1,543,566      
Illinois Finance Authority, (Children’s Memorial Hospital), (AGC), 5.25%, 8/15/47(1)
    2,500       2,617,874      
Indiana Health and Educational Facility Finance Authority, (Sisters of St. Francis Health Services), (AGM), 5.25%, 5/15/41
    1,750       1,835,732      
Indiana Health and Educational Facility Finance Authority, (Sisters of St. Francis Health Services), (AGM), 5.25%, 5/15/41(1)
    750       786,743      
Maricopa County, AZ, Industrial Development Authority, (Catholic Healthcare West), (BHAC), 5.25%, 7/1/32
    2,090       2,293,524      
New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), (AGC), 5.25%, 1/1/36(1)
    1,000       1,058,600      
New Jersey Health Care Facilities Financing Authority, (Meridian Health System), Series V, (AGC), 5.00%, 7/1/38(1)
    500       522,185      
New Jersey Health Care Facilities Financing Authority, (Virtua Health), (AGC), 5.50%, 7/1/38
    2,245       2,430,796      
Washington Health Care Facilities Authority, (MultiCare Health System), (AGC), 6.00%, 8/15/39
    1,545       1,738,388      
Washington Health Care Facilities Authority, (Providence Health Care), (AGM), 5.25%, 10/1/33
    2,300       2,480,067      
 
 
            $ 28,528,153      
 
 
 
 
Insured – Industrial Development Revenue — 1.1%
 
Pennsylvania Economic Development Financing Authority, (Aqua Pennsylvania, Inc.), (BHAC), 5.00%, 10/1/39
  $ 1,340     $ 1,455,508      
 
 
            $ 1,455,508      
 
 
 
 
Insured – Lease Revenue / Certificates of Participation — 6.5%
 
Essex County, NJ, Improvement Authority, (NPFG), 5.50%, 10/1/30
  $ 1,000     $ 1,234,270      
Hudson Yards Infrastructure Corp., NY, (NPFG), 4.50%, 2/15/47
    960       939,274      
New Jersey Economic Development Authority, (School Facilities Construction), (AGC), 5.50%, 12/15/34
    875       966,394      
San Diego County, CA, Water Authority, Certificates of Participation, (AGM), 5.00%, 5/1/38(1)
    3,250       3,479,157      
Tri-Creek Middle School Building Corp., IN, (AGM), 5.25%, 1/15/34(1)
    1,500       1,606,305      
 
 
            $ 8,225,400      
 
 
 
 
Insured – Other Revenue — 1.4%
 
Harris County-Houston, TX, Sports Authority, (NPFG), 0.00%, 11/15/34
  $ 2,540     $ 614,731      
New York, NY, Industrial Development Agency, (Yankee Stadium), (AGC), 7.00%, 3/1/49
    1,000       1,168,870      
 
 
            $ 1,783,601      
 
 
 
 
Insured – Solid Waste — 1.1%
 
Palm Beach County, FL, Solid Waste Authority, (BHAC), 5.00%, 10/1/24
  $ 740     $ 864,742      
Palm Beach County, FL, Solid Waste Authority, (BHAC), 5.00%, 10/1/26
    425       487,721      
 
 
            $ 1,352,463      
 
 
 

 
See Notes to Financial Statements.
12


 

 
Eaton Vance
Municipal Bond Fund II
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited) — continued

                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
Insured – Special Tax Revenue — 4.9%
 
Metropolitan Pier and Exposition Authority, IL, (McCormick Place Expansion), (NPFG), 5.25%, 6/15/42
  $ 1,500     $ 1,526,190      
Miami-Dade County, FL, Professional Sports Franchise Facilities, (AGC), 7.00%, (0.00% until 10/1/19), 10/1/39
    3,000       2,302,530      
Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54
    14,620       1,153,810      
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
    8,395       1,284,267      
 
 
            $ 6,266,797      
 
 
 
 
Insured – Student Loan — 1.5%
 
Maine Educational Loan Authority, (AGC), 5.625%, 12/1/27
  $ 1,745     $ 1,917,511      
 
 
            $ 1,917,511      
 
 
 
 
Insured – Transportation — 24.4%
 
Clark County, NV, (Las Vegas-McCarran International Airport), (AGM), 5.25%, 7/1/39
  $ 1,585     $ 1,708,725      
E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/22
    7,800       4,938,570      
Manchester, NH, (Manchester-Boston Regional Airport), (AGM), 5.125%, 1/1/30
    1,305       1,399,430      
Maryland Transportation Authority, (AGM), 5.00%, 7/1/41(1)
    10,000       10,814,900      
Metropolitan Washington, D.C., Airports Authority, (BHAC), 5.00%, 10/1/24
    1,000       1,131,320      
Metropolitan Washington, D.C., Airports Authority, (BHAC), 5.00%, 10/1/29
    535       584,782      
Nevada Department of Business and Industry, (Las Vegas Monorail -1st Tier), (AMBAC), 0.00%, 1/1/20(2)
    13,885       1,713,409      
New Jersey Transportation Trust Fund Authority, (AGC), 5.50%, 12/15/38
    1,040       1,142,794      
North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), 5.50%, 1/1/29
    255       282,591      
North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), 5.75%, 1/1/39
    290       321,653      
North Texas Tollway Authority, (BHAC), 5.75%, 1/1/48
    1,750       1,961,207      
Pennsylvania Turnpike Commission, (AGM), 5.25%, 7/15/30
    2,540       3,111,373      
Texas Turnpike Authority, (Central Texas Turnpike System), (AMBAC), 5.00%, 8/15/42
    1,785       1,785,161      
 
 
            $ 30,895,915      
 
 
 
 
Insured – Water and Sewer — 13.4%
 
Bossier City, LA, Utilities Revenue, (BHAC), 5.25%, 10/1/26
  $ 670     $ 752,022      
Bossier City, LA, Utilities Revenue, (BHAC), 5.25%, 10/1/27
    420       468,829      
Bossier City, LA, Utilities Revenue, (BHAC), 5.50%, 10/1/38
    660       718,753      
Chicago, IL, Wastewater Transmission Revenue, (BHAC), 5.50%, 1/1/38
    1,635       1,782,166      
District of Columbia Water and Sewer Authority, (AGC), 5.00%, 10/1/34(1)
    1,250       1,366,950      
Houston, TX, Utility System, (AGM), (BHAC), 5.00%, 11/15/33
    435       478,174      
Los Angeles, CA, Department of Water and Power, (BHAC), (FGIC), 5.00%, 7/1/43(1)
    5,500       5,554,615      
Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/35
    1,000       1,282,140      
New York, NY, Municipal Water Finance Authority, (BHAC), 5.75%, 6/15/40
    2,205       2,568,031      
Pearland, TX, Waterworks and Sewer Systems, (NPFG), 3.50%, 9/1/31
    2,010       1,980,674      
 
 
            $ 16,952,354      
 
 
 
 
Lease Revenue / Certificates of Participation — 4.5%
 
North Carolina, Capital Improvement Limited Obligation, 5.00%, 5/1/30
  $ 5,000     $ 5,702,500      
 
 
            $ 5,702,500      
 
 
 
 
Other Revenue — 1.2%
 
Oregon Department of Administrative Services, Lottery Revenue, 5.25%, 4/1/30
  $ 1,300     $ 1,528,709      
 
 
            $ 1,528,709      
 
 
 
 
Senior Living / Life Care — 0.2%
 
Maryland Health and Higher Educational Facilities Authority, (Charlestown Community, Inc.), 6.125%, 1/1/30
  $ 235     $ 264,438      
 
 
            $ 264,438      
 
 
 
 
Special Tax Revenue — 7.3%
 
Homewood, AL, City Board of Education, 5.00%, 4/1/32
  $ 1,880     $ 2,068,771      
Illinois, Sales Tax Revenue, 5.00%, 6/15/31
    425       465,503      
Illinois, Sales Tax Revenue, 5.00%, 6/15/32
    405       442,608      
Illinois, Sales Tax Revenue, 5.00%, 6/15/33
    435       473,980      
Massachusetts Bay Transportation Authority, Sales Tax Revenue, 5.25%, 7/1/33
    750       933,315      
Michigan Trunk Line Fund, 5.00%, 11/15/30
    110       124,003      
Michigan Trunk Line Fund, 5.00%, 11/15/31
    125       140,259      

 
See Notes to Financial Statements.
13


 

 
Eaton Vance
Municipal Bond Fund II
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited) — continued

                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
Special Tax Revenue (continued)
 
                     
Michigan Trunk Line Fund, 5.00%, 11/15/33
  $ 105     $ 117,271      
Michigan Trunk Line Fund, 5.00%, 11/15/36
    80       89,142      
New York, NY, Transitional Finance Authority, Future Tax Revenue, 5.50%, 11/1/35(1)(3)
    3,800       4,453,068      
 
 
            $ 9,307,920      
 
 
 
 
Transportation — 10.2%
 
Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/35
  $ 1,715     $ 1,832,375      
Los Angeles, CA, Department of Airports, (Los Angeles International Airport), 5.25%, 5/15/28
    465       529,323      
Metropolitan Transportation Authority, NY, 5.25%, 11/15/38
    865       946,656      
Miami-Dade County, FL, (Miami International Airport), 5.00%, 10/1/41
    2,115       2,229,527      
New York Liberty Development Corp., (4 World Trade Center), 5.00%, 11/15/31
    1,070       1,168,590      
Orlando-Orange County, FL, Expressway Authority, Series A, 5.00%, 7/1/35
    420       451,235      
Orlando-Orange County, FL, Expressway Authority, Series A, 5.00%, 7/1/40
    375       400,980      
Port Authority of New York and New Jersey, 4.00%, 7/15/32
    1,535       1,564,242      
South Carolina Transportation Infrastructure Bank, 5.25%, 10/1/40
    1,000       1,083,360      
Triborough Bridge and Tunnel Authority, NY, 5.00%, 11/15/37
    2,500       2,723,000      
 
 
            $ 12,929,288      
 
 
 
 
Water and Sewer — 1.6%
 
Marco Island, FL, Utility System, 5.00%, 10/1/34
  $ 205     $ 220,801      
Marco Island, FL, Utility System, 5.00%, 10/1/40
    910       973,354      
New York, NY, Municipal Water Finance Authority, (Water and Sewer System), 5.00%, 6/15/37
    720       773,338      
 
 
            $ 1,967,493      
 
 
     
Total Tax-Exempt Investments — 167.6%
   
(identified cost $206,180,093)
  $ 212,622,113      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (35.2)%
  $ (44,701,698 )    
 
 
             
Other Assets, Less Liabilities — (32.4)%
  $ (41,068,175 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 126,852,240      
 
 
 
     
AGC
 
- Assured Guaranty Corp.
AGM
 
- Assured Guaranty Municipal Corp.
AMBAC
 
- AMBAC Financial Group, Inc.
BHAC
 
- Berkshire Hathaway Assurance Corp.
FGIC
 
- Financial Guaranty Insurance Company
NPFG
 
- National Public Finance Guaranty Corp.
PSF
 
- Permanent School Fund
XLCA
 
- XL Capital Assurance, Inc.
 
At March 31, 2012, the concentration of the Fund’s investments in the various states, determined as a percentage of total investments is as follows:
 
     
New York
 
12.2%
Others, representing less than 10% individually
 
87.8%
 
The Fund invests primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2012, 63.0% 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 2.4% to 21.3% of total investments.
 
(1) Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1H).
 
(2) Defaulted security. Issuer has defaulted on the payment of interest or has filed for bankruptcy.
 
(3) Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $1,603,068.

 
See Notes to Financial Statements.
14


 

 
Eaton Vance
California Municipal Bond Fund II
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited)

 
 
                     
Tax-Exempt Investments — 168.7%
 
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
 
Education — 17.1%
 
California Educational Facilities Authority, (Claremont McKenna College), 5.00%, 1/1/39
  $ 1,370     $ 1,470,832      
California Educational Facilities Authority, (Harvey Mudd College), 5.25%, 12/1/31
    395       440,457      
California Educational Facilities Authority, (Harvey Mudd College), 5.25%, 12/1/36
    160       175,832      
California Educational Facilities Authority, (Loyola Marymount University), 5.00%, 10/1/22
    70       80,427      
California Educational Facilities Authority, (Loyola Marymount University), 5.00%, 10/1/23
    65       74,019      
California Educational Facilities Authority, (Loyola Marymount University), 5.00%, 10/1/30
    380       407,858      
California Educational Facilities Authority, (Santa Clara University), 5.00%, 2/1/29
    890       1,002,523      
California Educational Facilities Authority, (University of San Francisco), 6.125%, 10/1/36
    115       136,129      
California Educational Facilities Authority, (University of Southern California), 5.25%, 10/1/39
    1,200       1,338,996      
California Educational Facilities Authority, (University of the Pacific), 5.00%, 11/1/30
    330       355,641      
California Municipal Finance Authority, (University of San Diego), 5.00%, 10/1/31
    210       224,496      
California Municipal Finance Authority, (University of San Diego), 5.00%, 10/1/35
    145       152,907      
California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/26
    405       454,050      
California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/27
    425       472,693      
California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/28
    450       497,290      
University of California, 5.25%, 5/15/39
    1,000       1,106,480      
 
 
            $ 8,390,630      
 
 
 
 
Electric Utilities — 7.7%
 
Los Angeles Department of Water and Power, Electric System Revenue, 5.25%, 7/1/32
  $ 745     $ 844,383      
Puerto Rico Electric Power Authority, 5.25%, 7/1/29
    1,050       1,121,242      
Southern California Public Power Authority, (Tieton Hydropower), 5.00%, 7/1/30
    1,000       1,109,310      
Vernon, Electric System Revenue, 5.125%, 8/1/21
    675       721,501      
 
 
            $ 3,796,436      
 
 
 
 
General Obligations — 14.1%
 
California, 5.50%, 11/1/35
  $ 1,300     $ 1,464,125      
Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/32
    100       106,784      
Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/33
    110       116,731      
Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/34
    120       126,748      
Larkspur-Corte Madera School District, (Election of 2011), 4.25%, 8/1/35
    120       128,642      
Larkspur-Corte Madera School District, (Election of 2011), 4.25%, 8/1/36
    145       154,843      
Larkspur-Corte Madera School District, (Election of 2011), 4.50%, 8/1/39
    520       564,325      
Palo Alto, (Election of 2008), 5.00%, 8/1/40
    1,850       2,072,481      
San Diego Community College District, (Election of 2002), 5.00%, 8/1/32
    720       812,383      
San Diego Community College District, (Election of 2006), 5.00%, 8/1/31
    455       516,502      
San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/33
    350       392,122      
San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/35
    410       453,743      
 
 
            $ 6,909,429      
 
 
 
 
Hospital — 11.7%
 
California Health Facilities Financing Authority, (Catholic Healthcare West), 5.625%, 7/1/32
  $ 1,330     $ 1,434,272      
California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%, 8/15/39
    1,425       1,503,532      
California Statewide Communities Development Authority, (Cottage Health System), 5.25%, 11/1/30
    1,000       1,103,420      
California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/36
    355       369,608      
Washington Township Health Care District, 5.00%, 7/1/32
    555       563,536      
Washington Township Health Care District, 5.25%, 7/1/29
    750       750,412      
 
 
            $ 5,724,780      
 
 
 
 
Insured – Education — 10.6%
 
California Educational Facilities Authority, (Pepperdine University), (AMBAC), 5.00%, 12/1/32
  $ 420     $ 461,567      
California Educational Facilities Authority, (Pepperdine University), (AMBAC), 5.00%, 12/1/35
    1,000       1,080,820      
California Educational Facilities Authority, (Pepperdine University), (FGIC), (NPFG), 5.00%, 9/1/33
    180       182,628      
California State University, (AGM), (BHAC), 5.00%, 11/1/39(1)
    2,000       2,122,000      
California State University, (AMBAC), 5.00%, 11/1/33
    1,335       1,362,982      
 
 
            $ 5,209,997      
 
 
 

 
See Notes to Financial Statements.
15


 

 
Eaton Vance
California Municipal Bond Fund II
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited) — continued

 
 
                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
 
Insured – Electric Utilities — 8.8%
 
Glendale, Electric System Revenue, (NPFG), 5.00%, 2/1/32
  $ 1,475     $ 1,516,241      
Los Angeles Department of Water and Power, Electric System Revenue, (AMBAC), (BHAC), 5.00%, 7/1/26(1)
    1,500       1,703,865      
Sacramento Municipal Utility District, (AGM), 5.00%, 8/15/27
    1,000       1,114,310      
 
 
            $ 4,334,416      
 
 
 
 
Insured – Escrowed / Prerefunded — 12.1%
 
California Infrastructure and Economic Development Bank, (Bay Area Toll Bridges), (AMBAC), Prerefunded to 1/1/28, 5.00%, 7/1/33
  $ 1,150     $ 1,500,485      
California Infrastructure and Economic Development Bank, (Bay Area Toll Bridges), (AMBAC), Prerefunded to 1/1/28, 5.00%, 7/1/36
    1,025       1,337,389      
Clovis Unified School District, (FGIC), (NPFG), Escrowed to Maturity, 0.00%, 8/1/20
    3,130       2,636,055      
Orange County Water District, Certificates of Participation, (NPFG), Escrowed to Maturity, 5.00%, 8/15/34
    395       460,357      
 
 
            $ 5,934,286      
 
 
 
 
Insured – General Obligations — 23.9%
 
Antelope Valley Community College District, (Election of 2004), (NPFG), 5.25%, 8/1/39
  $ 725     $ 778,744      
Arcadia Unified School District, (Election of 2006), (AGM), 0.00%, 8/1/38
    7,125       1,697,745      
Arcadia Unified School District, (Election of 2006), (AGM), 0.00%, 8/1/40
    2,525       536,159      
Carlsbad Unified School District, (Election of 2006), (NPFG), 5.25%, 8/1/32
    1,500       1,643,895      
Coast Community College District, (Election of 2002), (AGM), 0.00%, 8/1/35
    6,675       1,829,084      
El Camino Hospital District, (NPFG), 4.45%, 8/1/36
    575       582,383      
Palm Springs Unified School District, (Election of 2008), (AGC), 5.00%, 8/1/33
    1,250       1,375,000      
Riverside Community College District, (Election of 2004), (AGM), (NPFG), 5.00%, 8/1/32
    1,040       1,137,843      
Union Elementary School District, (Election of 1999), (FGIC), (NPFG), 0.00%, 9/1/22
    3,200       2,185,120      
 
 
            $ 11,765,973      
 
 
 
 
Insured – Hospital — 6.3%
 
California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC), 5.00%, 3/1/41(1)
  $ 1,250     $ 1,295,950      
California Statewide Communities Development Authority, (Sutter Health), (AGM), 5.05%, 8/15/38(1)
    1,750       1,822,923      
 
 
            $ 3,118,873      
 
 
 
 
Insured – Lease Revenue / Certificates of Participation — 9.4%
 
Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27
  $ 1,250     $ 1,673,050      
San Diego County Water Authority, Certificates of Participation, (AGM), 5.00%, 5/1/38(1)
    1,750       1,873,392      
San Jose Financing Authority, (Civic Center), (AMBAC), 5.00%, 6/1/32
    1,075       1,081,472      
 
 
            $ 4,627,914      
 
 
 
 
Insured – Special Tax Revenue — 10.8%
 
Cathedral City Public Financing Authority, (Housing Redevelopment), (NPFG), 5.00%, 8/1/33
  $ 1,400     $ 1,395,352      
Hesperia Public Financing Authority, (Redevelopment and Housing Projects), (XLCA), 5.00%, 9/1/37
    1,535       1,165,264      
Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue, (AGM), 4.50%, 7/1/27
    430       454,497      
Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54
    5,655       446,293      
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
    3,215       491,831      
Santa Clara Valley Transportation Authority, Sales Tax Revenue, (AMBAC), 5.00%, 4/1/32
    1,225       1,344,229      
 
 
            $ 5,297,466      
 
 
 
 
Insured – Transportation — 3.4%
 
San Joaquin Hills Transportation Corridor Agency, (NPFG), 0.00%, 1/15/27
  $ 3,520     $ 1,349,040      
San Jose, Airport Revenue, (AMBAC), 5.00%, 3/1/33
    330       340,798      
 
 
            $ 1,689,838      
 
 
 
 
Insured – Water and Sewer — 8.9%
 
Calleguas Las Virgines Public Financing Authority, (Municipal Water District), (BHAC), (FGIC), 4.75%, 7/1/37
  $ 1,235     $ 1,297,194      
East Bay Municipal Utility District, Water System Revenue, (AGM), (FGIC), 5.00%, 6/1/32
    100       112,691      
East Bay Municipal Utility District, Water System Revenue, (FGIC), (NPFG), 5.00%, 6/1/32(1)
    1,600       1,803,056      

 
See Notes to Financial Statements.
16


 

 
Eaton Vance
California Municipal Bond Fund II
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited) — continued

 
 
                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
Insured – Water and Sewer (continued)
 
                     
Riverside, Water System Revenue, (AGM), 5.00%, 10/1/38
  $ 445     $ 477,236      
Santa Clara Valley Water District, (AGM), 3.75%, 6/1/28
    665       676,937      
 
 
            $ 4,367,114      
 
 
 
 
Other Revenue — 0.8%
 
California Infrastructure and Economic Development Bank, (The J. Paul Getty Trust), 3.00%, 10/1/20
  $ 380     $ 417,533      
 
 
            $ 417,533      
 
 
 
 
Special Tax Revenue — 6.4%
 
Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue, 5.00%, 7/1/31
  $ 1,490     $ 1,650,175      
San Francisco Bay Area Rapid Transit District, Sales Tax Revenue, 5.00%, 7/1/28
    1,300       1,480,102      
 
 
            $ 3,130,277      
 
 
 
 
Transportation — 13.1%
 
Bay Area Toll Authority, Toll Bridge Revenue, (San Francisco Bay Area), 5.25%, 4/1/29
  $ 1,190     $ 1,355,969      
Long Beach, Harbor Revenue, 5.00%, 5/15/27
    540       611,971      
Los Angeles Department of Airports, (Los Angeles International Airport), 5.00%, 5/15/35(1)(2)
    1,060       1,147,005      
Los Angeles Harbor Department, 5.00%, 8/1/25
    1,250       1,469,788      
San Francisco City and County Airport Commission, (San Francisco International Airport), 5.00%, 5/1/35
    635       678,256      
San Jose, Airport Revenue, 5.00%, 3/1/20
    1,000       1,158,500      
 
 
            $ 6,421,489      
 
 
 
 
Water and Sewer — 3.6%
 
Alameda County Water District Financing Authority, 4.00%, 6/1/24
  $ 240     $ 270,077      
Alameda County Water District Financing Authority, 4.00%, 6/1/25
    305       338,126      
Metropolitan Water District of Southern California, 5.00%, 1/1/39
    1,050       1,139,659      
 
 
            $ 1,747,862      
 
 
     
Total Tax-Exempt Investments — 168.7%
   
(identified cost $78,295,158)
  $ 82,884,313      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (52.3)%
  $ (25,700,578 )    
 
 
             
Other Assets, Less Liabilities — (16.4)%
  $ (8,048,278 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 49,135,457      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 
     
AGC
 
- Assured Guaranty Corp.
AGM
 
- Assured Guaranty Municipal Corp.
AMBAC
 
- AMBAC Financial Group, Inc.
BHAC
 
- Berkshire Hathaway Assurance Corp.
FGIC
 
- Financial Guaranty Insurance Company
NPFG
 
- National Public Finance Guaranty Corp.
XLCA
 
- XL Capital Assurance, Inc.
 
The Fund invests primarily in debt securities issued by California municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2012, 55.9% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.4% to 19.5% of total investments.
 
(1) Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1H).
 
(2) Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $352,005.

 
See Notes to Financial Statements.
17


 

 
Eaton Vance
Massachusetts Municipal Bond Fund
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited)

 
 
                     
Tax-Exempt Investments — 160.6%
 
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
 
Bond Bank — 6.0%
 
Massachusetts Water Pollution Abatement Trust, 5.25%, 8/1/33
  $ 585     $ 756,072      
Massachusetts Water Pollution Abatement Trust, 5.25%, 8/1/34
    640       830,720      
 
 
            $ 1,586,792      
 
 
 
 
Education — 27.0%
 
Massachusetts Development Finance Agency, (Middlesex School), 5.00%, 9/1/33
  $ 750     $ 761,003      
Massachusetts Development Finance Agency, (Milton Academy), 5.00%, 9/1/35
    750       827,663      
Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.00%, 10/1/38(1)
    2,000       2,253,600      
Massachusetts Health and Educational Facilities Authority, (Massachusetts Institute of Technology), 5.50%, 7/1/36
    1,000       1,187,900      
Massachusetts Health and Educational Facilities Authority, (Northeastern University), 5.00%, 10/1/35
    870       932,509      
Massachusetts Health and Educational Facilities Authority, (Tufts University), 5.375%, 8/15/38
    1,025       1,181,640      
 
 
            $ 7,144,315      
 
 
 
 
Escrowed / Prerefunded — 4.4%
 
Massachusetts Development Finance Agency, (Massachusetts College of Pharmacy), Prerefunded to 7/1/13, 5.75%, 7/1/33
  $ 500     $ 538,595      
Massachusetts Development Finance Agency, (Western New England College), Prerefunded to 12/1/12, 6.125%, 12/1/32
    600       629,430      
 
 
            $ 1,168,025      
 
 
 
 
General Obligations — 12.3%
 
Boston, 4.00%, 4/1/24
  $ 200     $ 223,368      
Cambridge, 4.00%, 2/15/21
    395       463,888      
Danvers, 5.25%, 7/1/36
    565       646,631      
Plymouth, 5.00%, 5/1/26
    250       292,362      
Plymouth, 5.00%, 5/1/31
    225       256,041      
Plymouth, 5.00%, 5/1/32
    205       232,591      
Wayland, 5.00%, 2/1/33
    340       390,293      
Wayland, 5.00%, 2/1/36
    510       577,422      
Winchester, 5.00%, 4/15/36
    160       181,581      
 
 
            $ 3,264,177      
 
 
 
 
Hospital — 15.1%
 
Massachusetts Health and Educational Facilities Authority, (Dana-Farber Cancer Institute), 5.00%, 12/1/37
  $ 775     $ 816,455      
Massachusetts Health and Educational Facilities Authority, (Lahey Clinic Medical Center), 5.25%, 8/15/28
    400       422,068      
Massachusetts Health and Educational Facilities Authority, (Partners Healthcare System), 5.00%, 7/1/34
    500       535,240      
Massachusetts Health and Educational Facilities Authority, (Partners Healthcare System), 5.00%, 7/1/39
    750       793,140      
Massachusetts Health and Educational Facilities Authority, (South Shore Hospital), 5.75%, 7/1/29
    370       370,348      
Massachusetts Health and Educational Facilities Authority, (Southcoast Health System), 5.00%, 7/1/29
    1,000       1,050,470      
 
 
            $ 3,987,721      
 
 
 
 
Insured – Education — 17.7%
 
Massachusetts College Building Authority, (XLCA), 5.50%, 5/1/39
  $ 700     $ 874,160      
Massachusetts Development Finance Agency, (Boston College), (NPFG), 5.00%, 7/1/38
    750       783,180      
Massachusetts Development Finance Agency, (Boston University), (XLCA), 6.00%, 5/15/59
    1,105       1,296,541      
Massachusetts Development Finance Agency, (College of the Holy Cross), (AMBAC), 5.25%, 9/1/32(1)
    750       940,965      
Massachusetts Development Finance Agency, (Massachusetts College of Pharmacy), (AGC), 5.00%, 7/1/35
    750       774,352      
 
 
            $ 4,669,198      
 
 
 
 
Insured – Electric Utilities — 4.7%
 
Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/23
  $ 1,095     $ 1,257,071      
 
 
            $ 1,257,071      
 
 
 
 
Insured – Escrowed / Prerefunded — 7.2%
 
Massachusetts College Building Authority, (NPFG), Escrowed to Maturity, 0.00%, 5/1/26
  $ 2,900     $ 1,892,772      
 
 
            $ 1,892,772      
 
 
 
 
Insured – General Obligations — 13.4%
 
Massachusetts, (AMBAC), 5.50%, 8/1/30
  $ 1,900     $ 2,473,059      
Revere, (AGC), 5.00%, 4/1/39
    1,000       1,060,240      
 
 
            $ 3,533,299      
 
 
 
 
Insured – Hospital — 0.9%
 
Massachusetts Health and Educational Facilities Authority, (Cape Cod Healthcare), (AGC), 5.00%, 11/15/25
  $ 220     $ 237,400      
 
 
            $ 237,400      
 
 
 

 
See Notes to Financial Statements.
18


 

 
Eaton Vance
Massachusetts Municipal Bond Fund
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited) — continued

 
 
                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
 
Insured – Lease Revenue / Certificates of Participation — 5.1%
 
Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27
  $ 1,000     $ 1,338,440      
 
 
            $ 1,338,440      
 
 
 
 
Insured – Other Revenue — 1.9%
 
Massachusetts Development Finance Agency, (WGBH Educational Foundation), (AMBAC), 5.75%, 1/1/42
  $ 415     $ 499,187      
 
 
            $ 499,187      
 
 
 
 
Insured – Special Tax Revenue — 16.4%
 
Martha’s Vineyard Land Bank, (AMBAC), 5.00%, 5/1/32
  $ 1,225     $ 1,267,556      
Massachusetts Bay Transportation Authority, Sales Tax Revenue, (NPFG), 5.50%, 7/1/28
    400       511,452      
Massachusetts School Building Authority, Dedicated Sales Tax Revenue, (AMBAC), 5.00%, 8/15/37(1)
    1,160       1,250,492      
Massachusetts, Special Obligation, Dedicated Tax Revenue, (FGIC), (NPFG), 5.50%, 1/1/29
    750       883,815      
Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54
    2,595       204,797      
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
    1,460       223,351      
 
 
            $ 4,341,463      
 
 
 
 
Insured – Water and Sewer — 4.6%
 
Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/36
  $ 960     $ 1,229,021      
 
 
            $ 1,229,021      
 
 
 
 
Other Revenue — 3.4%
 
Massachusetts Health and Educational Facilities Authority, (Isabella Stewart Gardner Museum), 5.00%, 5/1/25
  $ 320     $ 357,584      
Massachusetts Health and Educational Facilities Authority, (Isabella Stewart Gardner Museum), 5.00%, 5/1/29
    490       533,992      
 
 
            $ 891,576      
 
 
 
 
Senior Living / Life Care — 2.7%
 
Massachusetts Development Finance Agency, (Berkshire Retirement Community, Inc.), 5.15%, 7/1/31
  $ 745     $ 706,580      
 
 
            $ 706,580      
 
 
 
 
Special Tax Revenue — 5.5%
 
Massachusetts Bay Transportation Authority, 5.25%, 7/1/34
  $ 95     $ 107,395      
Massachusetts Bay Transportation Authority, Special Tax Revenue, 5.00%, 7/1/35
    1,210       1,342,265      
 
 
            $ 1,449,660      
 
 
 
 
Transportation — 9.0%
 
Massachusetts Department of Transportation, (Metropolitan Highway System), 5.00%, 1/1/32
  $ 1,000     $ 1,076,740      
Massachusetts Department of Transportation, (Metropolitan Highway System), 5.00%, 1/1/37
    500       535,945      
Massachusetts Port Authority, 5.00%, 7/1/28
    250       281,337      
Massachusetts Port Authority, 5.00%, 7/1/34
    435       473,102      
 
 
            $ 2,367,124      
 
 
 
 
Water and Sewer — 3.3%
 
Boston Water & Sewer Commission, 5.00%, 11/1/27
  $ 750     $ 864,652      
 
 
            $ 864,652      
 
 
     
Total Tax-Exempt Investments — 160.6%
   
(identified cost $38,360,822)
  $ 42,428,473      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (51.4)%
  $ (13,575,205 )    
 
 
             
Other Assets, Less Liabilities — (9.2)%
  $ (2,435,176 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 26,418,092      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 
     
AGC
 
- Assured Guaranty Corp.
AGM
 
- Assured Guaranty Municipal Corp.
AMBAC
 
- AMBAC Financial Group, Inc.
FGIC
 
- Financial Guaranty Insurance Company
NPFG
 
- National Public Finance Guaranty Corp.
XLCA
 
- XL Capital Assurance, Inc.
 
The Fund invests primarily in debt securities issued by Massachusetts municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2012, 44.8% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 2.1% to 18.8% of total investments.
 
(1) Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1H).

 
See Notes to Financial Statements.
19


 

 
Eaton Vance
Michigan Municipal Bond Fund
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited)

 
 
                     
Tax-Exempt Investments — 155.2%
 
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
 
Education — 1.1%
 
Michigan Higher Education Facilities Authority, (Hillsdale College), 5.00%, 3/1/35
  $ 250     $ 252,838      
 
 
            $ 252,838      
 
 
 
 
Escrowed / Prerefunded — 2.1%
 
Michigan Hospital Finance Authority, (Chelsea Community Hospital), Prerefunded to 5/15/15, 5.00%, 5/15/30
  $ 400     $ 453,376      
 
 
            $ 453,376      
 
 
 
 
General Obligations — 2.7%
 
Comstock Park Public Schools, 5.00%, 5/1/28
  $ 170     $ 185,886      
Comstock Park Public Schools, 5.125%, 5/1/31
    205       223,479      
Comstock Park Public Schools, 5.25%, 5/1/33
    165       180,249      
 
 
            $ 589,614      
 
 
 
 
Hospital — 17.3%
 
Grand Traverse Hospital, 5.375%, 7/1/35
  $ 750     $ 798,293      
Kalamazoo Hospital Finance Authority, (Bronson Health Care Group), 5.25%, 5/15/33
    500       532,600      
Kent Hospital Finance Authority, (Spectrum Health System), 5.00%, 1/15/31
    750       816,255      
Michigan Hospital Finance Authority, (Oakwood Hospital System), 5.75%, 4/1/32
    1,000       1,017,670      
Michigan Hospital Finance Authority, (Trinity Health Corp.), 5.375%, 12/1/30
    640       647,810      
 
 
            $ 3,812,628      
 
 
 
 
Insured – Education — 11.3%
 
Central Michigan University, (AMBAC), 5.05%, 10/1/32
  $ 750     $ 784,380      
Ferris State University, (AGC), 5.125%, 10/1/33
    435       467,312      
Wayne University, (NPFG), 5.00%, 11/15/37
    1,200       1,250,952      
 
 
            $ 2,502,644      
 
 
 
 
Insured – Electric Utilities — 7.4%
 
Michigan Strategic Fund, (Detroit Edison Co.), (XLCA), 5.25%, 12/15/32
  $ 500     $ 503,260      
Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26
    1,000       1,138,830      
 
 
            $ 1,642,090      
 
 
 
 
Insured – Escrowed / Prerefunded — 40.1%
 
Detroit School District, (School Bond Loan Fund), (AGM), Prerefunded to 5/1/12, 5.125%, 5/1/31
  $ 500     $ 502,090      
Lansing Building Authority, (NPFG), Prerefunded to 6/1/13, 5.00%, 6/1/29
    1,500       1,583,055      
Michigan Hospital Finance Authority, (St. John Health System), (AMBAC), Escrowed to Maturity, 5.00%, 5/15/28
    1,150       1,154,094      
Michigan House of Representatives, (AMBAC), Escrowed to Maturity, 0.00%, 8/15/22
    1,750       1,295,315      
Michigan House of Representatives, (AMBAC), Escrowed to Maturity, 0.00%, 8/15/23
    2,615       1,880,446      
Reed City Public Schools, (AGM), Prerefunded to 5/1/14, 5.00%, 5/1/29
    1,300       1,424,618      
Ypsilanti Community Utilities Authority, (Sanitary Sewer System No. 3), (FGIC), Prerefunded to 5/1/12, 5.00%, 5/1/32
    705       707,933      
Ypsilanti Community Utilities Authority, (Sanitary Sewer System No. 3), (FGIC), (NPFG), Prerefunded to 5/1/12, 5.00%, 5/1/32
    295       296,230      
 
 
            $ 8,843,781      
 
 
 
 
Insured – General Obligations — 21.6%
 
Grand Rapids and Kent County Joint Building Authority, (DeVos Place), (NPFG), 0.00%, 12/1/27
  $ 1,960     $ 1,064,319      
Greenville Public Schools, (NPFG), 5.00%, 5/1/25
    375       376,204      
Okemos Public School District, (NPFG), 0.00%, 5/1/19
    1,330       1,092,063      
Pinconning Area Schools, (AGM), 5.00%, 5/1/33
    1,000       1,056,650      
Royal Oak, (AGC), 6.25%, 10/1/28
    1,000       1,171,060      
 
 
            $ 4,760,296      
 
 
 
 
Insured – Hospital — 6.1%
 
Michigan Hospital Finance Authority, (Mid-Michigan Obligation Group), (AMBAC), 5.00%, 4/15/32
  $ 500     $ 500,215      
Royal Oak Hospital Finance Authority, (William Beaumont Hospital), (NPFG), 5.25%, 11/15/35
    855       855,368      
 
 
            $ 1,355,583      
 
 
 
 
Insured – Lease Revenue / Certificates of Participation — 7.6%
 
Michigan Building Authority, (AGM), (FGIC), 0.00%, 10/15/29
  $ 1,000     $ 427,170      
Michigan Building Authority, (FGIC), (NPFG), 0.00%, 10/15/30
    3,100       1,247,099      
 
 
            $ 1,674,269      
 
 
 

 
See Notes to Financial Statements.
20


 

 
Eaton Vance
Michigan Municipal Bond Fund
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited) — continued

 
                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
 
Insured – Special Tax Revenue — 6.4%
 
Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54
  $ 3,005     $ 237,154      
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
    1,165       178,222      
Wayne Charter County, (Airport Hotel-Detroit Metropolitan Airport), (NPFG), 5.00%, 12/1/30
    1,000       1,000,810      
 
 
            $ 1,416,186      
 
 
 
 
Insured – Utilities — 7.0%
 
Lansing Board of Water and Light, (Water Supply, Steam and Electric Utility), (AGM), 5.00%, 7/1/25
  $ 1,000     $ 1,021,760      
Lansing Board of Water and Light, (Water Supply, Steam and Electric Utility), (AGM), 5.00%, 7/1/26
    510       520,404      
 
 
            $ 1,542,164      
 
 
 
 
Insured – Water and Sewer — 13.6%
 
Detroit Sewer Disposal System, (NPFG), 4.50%, 7/1/35
  $ 500     $ 466,800      
Detroit Water Supply System, (FGIC), (NPFG), 5.00%, 7/1/30
    1,425       1,425,299      
Grand Rapids Water Supply System, (AGC), 5.00%, 1/1/29
    1,000       1,112,660      
 
 
            $ 3,004,759      
 
 
 
 
Special Tax Revenue — 5.1%
 
Michigan Trunk Line Fund, 5.00%, 11/15/36
  $ 1,000     $ 1,114,280      
 
 
            $ 1,114,280      
 
 
 
 
Water and Sewer — 5.8%
 
Ann Arbor, Sewage Disposal System, 4.75%, 7/1/32
  $ 235     $ 248,851      
Grand Rapids, Sanitary Sewer System, 5.00%, 1/1/28
    650       776,438      
Port Huron, Water Supply System, 5.25%, 10/1/31
    250       264,865      
 
 
            $ 1,290,154      
 
 
     
Total Tax-Exempt Investments — 155.2%
   
(identified cost $31,794,501)
  $ 34,254,662      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (60.4)%
  $ (13,325,401 )    
 
 
             
Other Assets, Less Liabilities — 5.2%
  $ 1,146,646      
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 22,075,907      
 
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 
     
AGC
 
- Assured Guaranty Corp.
AGM
 
- Assured Guaranty Municipal Corp.
AMBAC
 
- AMBAC Financial Group, Inc.
FGIC
 
- Financial Guaranty Insurance Company
NPFG
 
- National Public Finance Guaranty Corp.
XLCA
 
- XL Capital Assurance, Inc.
 
The Fund invests primarily in debt securities issued by Michigan municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2012, 78.1% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.5% to 35.0% of total investments.

 
See Notes to Financial Statements.
21


 

 
Eaton Vance
New Jersey Municipal Bond Fund
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited)

 
 
                     
Tax-Exempt Investments — 164.6%
 
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
 
Bond Bank — 1.1%
 
New Jersey Environmental Infrastructure Trust, 4.00%, 9/1/23
  $ 350     $ 385,798      
 
 
            $ 385,798      
 
 
 
 
Education — 2.9%
 
New Jersey Educational Facilities Authority, (Georgian Court University), 5.25%, 7/1/37
  $ 750     $ 776,175      
Rutgers State University, 5.00%, 5/1/39
    250       271,467      
 
 
            $ 1,047,642      
 
 
 
 
General Obligations — 8.7%
 
Gloucester County, 4.00%, 10/1/22
  $ 250     $ 281,140      
Gloucester County, 5.00%, 10/1/23
    180       213,964      
Gloucester County, 5.00%, 10/1/24
    180       211,559      
Monmouth County Improvement Authority, 5.00%, 1/15/27
    1,375       1,606,330      
West Morris Regional High School District, 4.50%, 5/1/23
    360       422,313      
West Morris Regional High School District, 4.50%, 5/1/24
    395       459,022      
 
 
            $ 3,194,328      
 
 
 
 
Health Care – Miscellaneous — 0.8%
 
New Jersey Health Care Facilities Financing Authority, (Hospital Asset Transformation Program), 5.75%, 10/1/31
  $ 250     $ 285,330      
 
 
            $ 285,330      
 
 
 
 
Hospital — 10.6%
 
Camden County Improvement Authority, (Cooper Health System), 5.00%, 2/15/35
  $ 180     $ 172,764      
Camden County Improvement Authority, (Cooper Health System), 5.75%, 2/15/34
    685       693,343      
New Jersey Health Care Facilities Financing Authority, (Atlanticare Regional Medical Center), 5.00%, 7/1/37
    515       530,898      
New Jersey Health Care Facilities Financing Authority, (Hunterdon Medical Center), 5.125%, 7/1/35
    250       254,758      
New Jersey Health Care Facilities Financing Authority, (Meridian Health System), 5.00%, 7/1/21
    750       848,362      
New Jersey Health Care Facilities Financing Authority, (South Jersey Hospital), 5.00%, 7/1/46
    1,345       1,365,162      
 
 
            $ 3,865,287      
 
 
 
 
Housing — 2.9%
 
New Jersey Housing and Mortgage Finance Agency, (Single Family Housing), 4.375%, 4/1/28
  $ 1,000     $ 1,061,900      
 
 
            $ 1,061,900      
 
 
 
 
Insured – Education — 7.7%
 
New Jersey Educational Facilities Authority, (Rowan University), (AGM), (FGIC), 3.00%, 7/1/27
  $ 920     $ 860,255      
New Jersey Educational Facilities Authority, (Rowan University), (AGM), (FGIC), 3.00%, 7/1/28
    465       428,986      
New Jersey Educational Facilities Authority, (William Paterson University), (AGC), 4.75%, 7/1/34
    1,145       1,211,834      
New Jersey Educational Facilities Authority, (William Paterson University), (AGC), 5.00%, 7/1/38
    275       293,117      
 
 
            $ 2,794,192      
 
 
 
 
Insured – Electric Utilities — 4.1%
 
Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/35
  $ 335     $ 366,631      
Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26
    1,000       1,138,830      
 
 
            $ 1,505,461      
 
 
 
 
Insured – General Obligations — 41.0%
 
Bayonne, (AGM), 0.00%, 7/1/23
  $ 2,415     $ 1,594,238      
Bayonne, (AGM), 5.50%, 7/1/39
    1,000       1,101,160      
Delaware Township, Hunterdon County, (AGC), 5.00%, 10/15/35
    320       355,846      
Delaware Township, Hunterdon County, (AGC), 5.10%, 10/15/36
    340       379,573      
Delaware Township, Hunterdon County, (AGC), 5.15%, 10/15/37
    360       402,239      
Delaware Township, Hunterdon County, (AGC), 5.20%, 10/15/38
    382       427,172      
Hudson County Improvement Authority, (Harrison Parking), (AGC), 5.25%, 1/1/39
    1,500       1,635,375      
Hudson County Improvement Authority, (Harrison Redevelopment), (NPFG), 0.00%, 12/15/38
    2,000       478,540      
Irvington Township, (AGM), 0.00%, 7/15/26
    5,235       2,928,930      
Jackson Township School District, (NPFG), 2.50%, 6/15/27
    2,370       2,142,006      
Jersey City, (AGM), 5.00%, 1/15/29
    1,000       1,087,720      
Lakewood Township, (AGC), 5.75%, 11/1/31
    700       807,380      
Monroe Township Board of Education, Middlesex County, (AGC), 4.75%, 3/1/34
    1,015       1,087,603      
Nutley School District, (NPFG), 4.75%, 7/15/30
    110       118,540      
Nutley School District, (NPFG), 4.75%, 7/15/31
    410       440,590      
 
 
            $ 14,986,912      
 
 
 
 
Insured – Hospital — 13.5%
 
New Jersey Health Care Facilities Financing Authority, (Englewood Hospital), (NPFG), 5.00%, 8/1/31
  $ 750       753,172      

 
See Notes to Financial Statements.
22


 

 
Eaton Vance
New Jersey Municipal Bond Fund
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited) — continued

 
 
                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
Insured – Hospital (continued)
 
                     
New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), (AGC), 5.25%, 1/1/36(1)
  $ 2,000     $ 2,117,200      
New Jersey Health Care Facilities Financing Authority, (Meridian Health System), Series II, (AGC), 5.00%, 7/1/38
    170       177,543      
New Jersey Health Care Facilities Financing Authority, (Meridian Health System), Series V, (AGC), 5.00%, 7/1/38(1)
    250       261,093      
New Jersey Health Care Facilities Financing Authority, (Virtua Health), (AGC), 5.50%, 7/1/38
    1,500       1,624,140      
 
 
            $ 4,933,148      
 
 
 
 
Insured – Lease Revenue / Certificates of Participation — 17.0%
 
Essex County Improvement Authority, (NPFG), 5.50%, 10/1/30
  $ 1,000     $ 1,234,270      
Middlesex County, Certificates of Participation, (NPFG), 5.00%, 8/1/31
    1,250       1,253,562      
New Jersey Economic Development Authority, (School Facilities Construction), (AGC), 5.50%, 12/15/34
    1,300       1,435,785      
New Jersey Economic Development Authority, (School Facilities Construction), (FGIC), (NPFG), 5.50%, 9/1/28
    500       598,005      
Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27
    1,250       1,673,050      
 
 
            $ 6,194,672      
 
 
 
 
Insured – Special Tax Revenue — 13.1%
 
Garden State Preservation Trust, (AGM), 0.00%, 11/1/21
  $ 1,000     $ 759,390      
Garden State Preservation Trust, (AGM), 5.80%, 11/1/21
    500       581,215      
New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (BHAC), (NPFG), 5.00%, 7/1/27
    975       1,010,978      
New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/26
    2,380       1,266,588      
New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/27
    1,120       558,869      
Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54
    3,775       297,923      
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
    2,095       320,493      
 
 
            $ 4,795,456      
 
 
 
 
Insured – Transportation — 18.7%
 
New Jersey Turnpike Authority, (AGM), (BHAC), 5.25%, 1/1/29
  $ 1,500     $ 1,838,055      
Port Authority of New York and New Jersey, (AGM), 5.00%, 11/1/27(1)
    3,875       3,999,382      
Port Authority of New York and New Jersey, (AGM), 5.00%, 8/15/33
    720       774,850      
South Jersey Transportation Authority, (AGC), 5.50%, 11/1/33
    180       203,477      
 
 
            $ 6,815,764      
 
 
 
 
Insured – Water and Sewer — 8.3%
 
Middlesex County Improvement Authority, (Perth Amboy), (AMBAC), 0.00%, 9/1/24
  $ 4,500     $ 2,615,265      
Passaic Valley Sewerage Commissioners, (FGIC), (NPFG), 2.50%, 12/1/32
    610       427,024      
 
 
            $ 3,042,289      
 
 
 
 
Lease Revenue / Certificates of Participation — 1.7%
 
New Jersey Health Care Facilities Financing Authority, (Hospital Asset Transformation Program), 5.25%, 10/1/38
  $ 600     $ 638,154      
 
 
            $ 638,154      
 
 
 
 
Student Loan — 2.9%
 
New Jersey Higher Education Student Assistance Authority, 5.625%, 6/1/30
  $ 965     $ 1,057,756      
 
 
            $ 1,057,756      
 
 
 
 
Transportation — 9.6%
 
Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/35
  $ 590     $ 630,380      
Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/40
    210       223,507      
New Jersey Transportation Trust Fund Authority, (Transportation System), 5.50%, 6/15/31
    1,150       1,313,599      
South Jersey Port Authority, (Marine Terminal), 5.10%, 1/1/33
    1,325       1,335,772      
 
 
            $ 3,503,258      
 
 
     
Total Tax-Exempt Investments — 164.6%
   
(identified cost $55,348,265)
  $ 60,107,347      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (53.7)%
  $ (19,600,694 )    
 
 
             
Other Assets, Less Liabilities — (10.9)%
  $ (3,997,504 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 36,509,149      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 

 
See Notes to Financial Statements.
23


 

 
Eaton Vance
New Jersey Municipal Bond Fund
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited) — continued

 
     
AGC
 
- Assured Guaranty Corp.
AGM
 
- Assured Guaranty Municipal Corp.
AMBAC
 
- AMBAC Financial Group, Inc.
BHAC
 
- Berkshire Hathaway Assurance Corp.
FGIC
 
- Financial Guaranty Insurance Company
NPFG
 
- National Public Finance Guaranty Corp.
XLCA
 
- XL Capital Assurance, Inc.
 
The Fund invests primarily in debt securities issued by New Jersey municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2012, 75.0% 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 3.0% to 26.5% of total investments.
 
(1) Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1H).

 
See Notes to Financial Statements.
24


 

 
Eaton Vance
New York Municipal Bond Fund II
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited)

 
 
                     
Tax-Exempt Investments — 163.0%
 
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
 
Bond Bank — 4.7%
 
New York Environmental Facilities Corp., 5.00%, 10/15/39
  $ 750     $ 823,560      
New York Environmental Facilities Corp., Clean Water and Drinking Water, (Municipal Water Finance), 5.00%, 6/15/26
    235       254,265      
New York Environmental Facilities Corp., Clean Water and Drinking Water, (Municipal Water Finance), 5.00%, 6/15/32
    500       520,240      
 
 
            $ 1,598,065      
 
 
 
 
Education — 15.8%
 
New York City Industrial Development Agency, (St. Francis College), 5.00%, 10/1/34
  $ 390     $ 400,838      
New York Dormitory Authority, (Columbia University), 5.00%, 10/1/41
    1,275       1,437,868      
New York Dormitory Authority, (Cornell University), 5.00%, 7/1/37(1)
    1,275       1,412,432      
New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/40
    610       669,152      
New York Dormitory Authority, (Skidmore College), 5.00%, 7/1/28
    325       360,926      
New York Dormitory Authority, (The New School), 5.50%, 7/1/40
    1,000       1,104,120      
 
 
            $ 5,385,336      
 
 
 
 
Escrowed / Prerefunded — 2.3%
 
Suffolk County Industrial Development Agency, (Huntington Hospital), Prerefunded to 11/1/12, 5.875%, 11/1/32
  $ 750     $ 775,088      
 
 
            $ 775,088      
 
 
 
 
General Obligations — 6.6%
 
East Irondequoit Central School District, 3.00%, 6/15/23
  $ 280     $ 277,175      
Long Beach City School District, 4.50%, 5/1/26
    770       849,572      
New York, 5.00%, 2/15/34(1)
    1,000       1,118,810      
 
 
            $ 2,245,557      
 
 
 
 
Hospital — 6.4%
 
New York Dormitory Authority, (Highland Hospital of Rochester), 5.00%, 7/1/26
  $ 135     $ 144,744      
New York Dormitory Authority, (Highland Hospital of Rochester), 5.20%, 7/1/32
    180       192,991      
New York Dormitory Authority, (North Shore-Long Island Jewish Obligated Group), 5.00%, 5/1/20
    235       272,450      
New York Dormitory Authority, (North Shore-Long Island Jewish Obligated Group), 5.00%, 5/1/26
    335       355,140      
Suffolk County Economic Development Corp., (Catholic Health Services of Long Island Obligated Group), 5.00%, 7/1/28
    1,135       1,231,588      
 
 
            $ 2,196,913      
 
 
 
 
Industrial Development Revenue — 1.2%
 
New York Liberty Development Corp., (Goldman Sachs Group, Inc.), 5.25%, 10/1/35
  $ 390     $ 424,706      
 
 
            $ 424,706      
 
 
 
 
Insured – Education — 27.6%
 
New York Dormitory Authority, (Barnard College), (FGIC), (NPFG), 5.00%, 7/1/24
  $ 1,440     $ 1,574,899      
New York Dormitory Authority, (Brooklyn Law School), (XLCA), 5.125%, 7/1/30
    855       891,072      
New York Dormitory Authority, (Fordham University), (AGC), (BHAC), 5.00%, 7/1/38(1)
    2,250       2,425,500      
New York Dormitory Authority, (Pratt Institute), (AGC), 5.00%, 7/1/34
    345       366,625      
New York Dormitory Authority, (Pratt Institute), (AGC), 5.125%, 7/1/39
    545       580,234      
New York Dormitory Authority, (Skidmore College), (FGIC), (NPFG), 5.00%, 7/1/33
    500       515,700      
New York Dormitory Authority, (St. John’s University), (NPFG), 5.25%, 7/1/37
    850       887,749      
Oneida County Industrial Development Agency, (Hamilton College), (NPFG), 0.00%, 7/1/32
    5,425       2,200,543      
 
 
            $ 9,442,322      
 
 
 
 
Insured – Electric Utilities — 3.4%
 
Long Island Power Authority, (BHAC), 5.50%, 5/1/33
  $ 500     $ 568,815      
Long Island Power Authority, (BHAC), 6.00%, 5/1/33
    500       590,030      
 
 
            $ 1,158,845      
 
 
 
 
Insured – Escrowed / Prerefunded — 3.7%
 
New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), (NPFG), Escrowed to Maturity, 0.00%, 7/1/26
  $ 175     $ 119,322      
New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), (NPFG), Escrowed to Maturity, 0.00%, 7/1/27
    550       359,623      

 
See Notes to Financial Statements.
25


 

 
Eaton Vance
New York Municipal Bond Fund II
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited) — continued

 
 
                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
Insured – Escrowed / Prerefunded (continued)
 
                     
New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), (NPFG), Escrowed to Maturity, 0.00%, 7/1/30
  $ 1,385     $ 789,228      
 
 
            $ 1,268,173      
 
 
 
 
Insured – General Obligations — 16.2%
 
Brentwood Union Free School District, (AGC), 4.75%, 11/15/23
  $ 535     $ 621,467      
Brentwood Union Free School District, (AGC), 5.00%, 11/15/24
    560       655,866      
Hauppauge Union Free School District, (AGC), 4.00%, 7/15/24
    250       271,770      
Hoosic Valley Central School District, (AGC), 4.00%, 6/15/23
    250       275,333      
Longwood Central School District, Suffolk County, (AGC), 4.15%, 6/1/23
    185       201,859      
Longwood Central School District, Suffolk County, (AGC), 4.25%, 6/1/24
    190       207,079      
New York, (AGM), 5.00%, 4/1/22
    1,000       1,128,960      
Plattsburgh, (AGC), 4.25%, 11/15/19
    100       117,444      
Plattsburgh, (AGC), 4.25%, 11/15/20
    300       354,240      
Sachem Central School District, (FGIC), (NPFG), 4.25%, 10/15/28
    410       425,510      
Wantagh Union Free School District, (AGC), 4.50%, 11/15/19
    185       212,972      
Wantagh Union Free School District, (AGC), 4.50%, 11/15/20
    190       216,712      
Wantagh Union Free School District, (AGC), 4.75%, 11/15/22
    210       237,363      
Wantagh Union Free School District, (AGC), 4.75%, 11/15/23
    220       246,849      
William Floyd Union Free School District, (AGC), 4.00%, 12/15/24
    350       378,812      
 
 
            $ 5,552,236      
 
 
 
 
Insured – Hospital — 3.3%
 
New York City Health and Hospitals Corp., (AGM), 5.50%, 2/15/20
  $ 500     $ 592,815      
New York Dormitory Authority, (Hudson Valley Hospital Center), (AGM), (BHAC), 5.00%, 8/15/36
    500       531,525      
 
 
            $ 1,124,340      
 
 
 
 
Insured – Housing — 3.0%
 
New York City Housing Corp., (NPFG), 4.95%, 11/1/33
  $ 1,000     $ 1,019,390      
 
 
            $ 1,019,390      
 
 
 
 
Insured – Lease Revenue / Certificates of Participation — 0.6%
 
Hudson Yards Infrastructure Corp., (NPFG), 4.50%, 2/15/47
  $ 215     $ 210,358      
 
 
            $ 210,358      
 
 
 
 
Insured – Other Revenue — 9.8%
 
New York City Cultural Resource Trust, (American Museum of Natural History), (NPFG), 5.00%, 7/1/44
  $ 700     $ 718,011      
New York City Industrial Development Agency, (Yankee Stadium), (NPFG), 4.75%, 3/1/46
    1,585       1,565,187      
New York City Transitional Finance Authority, (BHAC), 5.50%, 7/15/38
    950       1,057,825      
 
 
            $ 3,341,023      
 
 
 
 
Insured – Special Tax Revenue — 5.6%
 
Puerto Rico Infrastructure Financing Authority, (AMBAC), 0.00%, 7/1/35
  $ 1,700     $ 407,592      
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
    2,240       342,675      
Sales Tax Asset Receivables Corp., (AMBAC), 5.00%, 10/15/29
    385       420,062      
Sales Tax Asset Receivables Corp., (AMBAC), 5.00%, 10/15/32(2)
    690       750,127      
 
 
            $ 1,920,456      
 
 
 
 
Insured – Transportation — 12.7%
 
Metropolitan Transportation Authority, (AGM), (NPFG), 5.00%, 11/15/31
  $ 1,000     $ 1,101,670      
New York Thruway Authority, (AMBAC), 5.50%, 4/1/20
    510       640,453      
Port Authority of New York and New Jersey, (AGM), 5.00%, 11/1/27(1)
    2,500       2,580,511      
 
 
            $ 4,322,634      
 
 
 
 
Insured – Water and Sewer — 12.5%
 
Nassau County Sewer and Storm Water Finance Authority, (BHAC), 5.375%, 11/1/28
  $ 905     $ 1,036,343      
New York City Municipal Water Finance Authority, (Water and Sewer System), (AMBAC), (BHAC), 5.00%, 6/15/38(1)
    2,750       2,868,085      
Suffolk County Water Authority, (NPFG), 4.50%, 6/1/25
    350       366,873      
 
 
            $ 4,271,301      
 
 
 

 
See Notes to Financial Statements.
26


 

 
Eaton Vance
New York Municipal Bond Fund II
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited) — continued

 
                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
 
Other Revenue — 9.2%
 
Brooklyn Arena Local Development Corp., (Barclays Center), 0.00%, 7/15/31
  $ 1,100     $ 396,121      
New York Liberty Development Corp., (7 World Trade Center), 5.00%, 9/15/40(3)
    2,500       2,734,825      
 
 
            $ 3,130,946      
 
 
 
 
Special Tax Revenue — 6.3%
 
New York City Transitional Finance Authority, Future Tax Revenue, 5.50%, 11/1/35(1)(4)
  $ 500     $ 585,930      
New York Dormitory Authority, Personal Income Tax Revenue, 5.00%, 3/15/33
    1,400       1,568,854      
 
 
            $ 2,154,784      
 
 
 
 
Transportation — 12.1%
 
Metropolitan Transportation Authority, 5.00%, 11/15/34(2)
  $ 2,000     $ 2,151,380      
Nassau County Bridge Authority, 5.00%, 10/1/35
    350       387,373      
Nassau County Bridge Authority, 5.00%, 10/1/40
    65       70,894      
New York Thruway Authority, 5.00%, 4/1/26
    530       606,659      
Triborough Bridge and Tunnel Authority, 5.00%, 11/15/37
    340       370,328      
Triborough Bridge and Tunnel Authority, 5.00%, 11/15/38(1)
    500       547,545      
 
 
            $ 4,134,179      
 
 
     
Total Tax-Exempt Investments — 163.0%
   
(identified cost $51,855,248)
  $ 55,676,652      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (38.8)%
  $ (13,250,397 )    
 
 
             
Other Assets, Less Liabilities — (24.2)%
  $ (8,268,684 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 34,157,571      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 
     
AGC
 
- Assured Guaranty Corp.
AGM
 
- Assured Guaranty Municipal Corp.
AMBAC
 
- AMBAC Financial Group, Inc.
BHAC
 
- Berkshire Hathaway Assurance Corp.
FGIC
 
- Financial Guaranty Insurance Company
NPFG
 
- National Public Finance Guaranty Corp.
XLCA
 
- XL Capital Assurance, Inc.
 
The Fund invests primarily in debt securities issued by New York municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2012, 60.4% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.6% to 21.9% of total investments.
 
(1) Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1H).
 
(2) Security (or a portion thereof) has been segregated to cover payable for when-issued securities.
 
(3) When-issued security.
 
(4) Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $210,930.

 
See Notes to Financial Statements.
27


 

 
Eaton Vance
Ohio Municipal Bond Fund
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited)

 
 
                     
Tax-Exempt Investments — 149.4%
 
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
 
Bond Bank — 14.1%
 
Cuyahoga County Port Authority, (Garfield Heights), 5.25%, 5/15/23
  $ 1,200     $ 1,137,600      
Ohio Economic Development, (Ohio Enterprise Bond Fund), 6.00%, 12/1/34
    700       792,078      
Ohio Water Development Authority, Water Pollution Control, (Water Quality), 5.00%, 6/1/30
    1,250       1,415,063      
Rickenbacker Port Authority, Oasbo Expanded Asset Pool Loan, 5.375%, 1/1/32
    1,140       1,307,705      
 
 
            $ 4,652,446      
 
 
 
 
Education — 7.5%
 
Ohio Higher Educational Facility Commission, (Kenyon College), 5.00%, 7/1/44
  $ 305     $ 321,741      
Ohio State University, 5.00%, 12/1/30
    1,325       1,633,884      
Wright State University, 5.00%, 5/1/31
    500       536,775      
 
 
            $ 2,492,400      
 
 
 
 
Electric Utilities — 1.7%
 
Ohio Air Quality Development Authority, (Buckeye Power, Inc.), 6.00%, 12/1/40
  $ 500     $ 546,740      
 
 
            $ 546,740      
 
 
 
 
General Obligations — 4.7%
 
Beavercreek City School District, 5.00%, 12/1/30
  $ 900     $ 996,633      
County of Franklin, 5.00%, 12/1/27
    500       570,415      
 
 
            $ 1,567,048      
 
 
 
 
Hospital — 8.7%
 
Miami County, (Upper Valley Medical Center), 5.25%, 5/15/26
  $ 500     $ 519,250      
Middleburg Heights, (Southwest General Health Center), 5.25%, 8/1/36
    500       529,275      
Middleburg Heights, (Southwest General Health Center), 5.25%, 8/1/41
    755       793,905      
Ohio Higher Educational Facility Commission, (Summa Health System), 5.75%, 11/15/40
    460       488,930      
Ohio Hospital Facility Revenue, (Cleveland Clinic Health System), 5.00%, 1/1/32
    500       542,550      
 
 
            $ 2,873,910      
 
 
 
 
Insured – Education — 26.4%
 
Cincinnati Technical and Community College, (AMBAC), 5.00%, 10/1/28
  $ 500     $ 534,150      
Kent State University, (AGC), 5.00%, 5/1/26
    1,000       1,108,070      
Kent State University, (AGC), 5.00%, 5/1/29
    360       391,853      
Miami University, (AMBAC), (AGM), 3.25%, 9/1/26
    2,000       1,985,840      
Ohio University, (AGM), 5.00%, 12/1/33
    500       530,860      
Ohio University, (AGM), 5.25%, 12/1/23
    1,170       1,265,379      
University of Akron, Series B, (AGM), 5.00%, 1/1/38
    1,000       1,052,710      
University of Cincinnati, (AMBAC), 5.00%, 6/1/31
    750       770,919      
Youngstown State University, (AGC), 5.50%, 12/15/33
    1,000       1,092,080      
 
 
            $ 8,731,861      
 
 
 
 
Insured – Electric Utilities — 19.5%
 
American Municipal Power-Ohio, Inc., (Prairie State Energy Campus), (AGC), 5.25%, 2/15/33
  $ 700     $ 760,445      
Cleveland Public Power System, (NPFG), 0.00%, 11/15/27
    2,750       1,327,673      
Cleveland Public Power System, (NPFG), 0.00%, 11/15/38
    1,000       248,710      
Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/25
    1,635       955,134      
Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/27
    5,000       2,599,950      
Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26
    500       569,415      
 
 
            $ 6,461,327      
 
 
 
 
Insured – General Obligations — 35.6%
 
Brookfield Local School District, (AGM), 5.00%, 1/15/30
  $ 200     $ 214,456      
Cincinnati City School District, (AGM), (FGIC), 5.25%, 12/1/30
    500       621,130      
Cleveland Municipal School District, (AGM), 5.00%, 12/1/27
    1,000       1,034,970      
Cuyahoga Community College District, (AMBAC), 5.00%, 12/1/32
    1,575       1,625,054      
Milford Exempt Village School District, (AGC), 5.25%, 12/1/36
    1,000       1,076,430      
Olentangy Local School District, (AGC), 5.00%, 12/1/36
    1,400       1,503,894      
Plain School District, (FGIC), (NPFG), 0.00%, 12/1/27
    2,400       1,186,992      
St. Marys City School District, (AGM), 5.00%, 12/1/35
    750       792,075      
Sylvania City School District, (AGC), 5.00%, 12/1/26
    500       539,235      
Sylvania City School District, (AGC), 5.00%, 12/1/32
    1,000       1,056,510      

 
See Notes to Financial Statements.
28


 

 
Eaton Vance
Ohio Municipal Bond Fund
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited) — continued

 
 
                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
Insured – General Obligations (continued)
 
                     
Wapakoneta City School District, (AGM), 4.75%, 12/1/35
  $ 2,000     $ 2,122,160      
 
 
            $ 11,772,906      
 
 
 
 
Insured – Hospital — 7.5%
 
Hamilton County, (Cincinnati Children’s Hospital), (FGIC), (NPFG), 5.00%, 5/15/32
  $ 425     $ 425,782      
Hamilton County, (Cincinnati Children’s Hospital), (FGIC), (NPFG), 5.125%, 5/15/28
    1,500       1,509,495      
Lorain County, (Catholic Healthcare Partners), (AGM), 14.896%, 2/1/29(1)(2)(3)
    440       557,515      
 
 
            $ 2,492,792      
 
 
 
 
Insured – Lease Revenue / Certificates of Participation — 3.4%
 
Puerto Rico Public Buildings Authority, Government Facilities Revenue, (XLCA), 5.25%, 7/1/36
  $ 235     $ 235,070      
Summit County, (Civic Theater Project), (AMBAC), 5.00%, 12/1/33
    1,040       901,129      
 
 
            $ 1,136,199      
 
 
 
 
Insured – Special Tax Revenue — 10.1%
 
Hamilton County Sales Tax, (AMBAC), 0.00%, 12/1/23
  $ 1,245     $ 758,491      
Hamilton County Sales Tax, (AMBAC), 0.00%, 12/1/24
    3,665       2,108,658      
Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54
    4,145       327,123      
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
    1,070       163,689      
 
 
            $ 3,357,961      
 
 
 
 
Insured – Transportation — 3.1%
 
Cleveland, Airport System, (AGM), 5.00%, 1/1/30
  $ 480     $ 507,091      
Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(4)
    500       528,215      
 
 
            $ 1,035,306      
 
 
 
 
Other Revenue — 1.2%
 
Summit County Port Authority, 5.00%, 12/1/31
  $ 350     $ 379,344      
 
 
            $ 379,344      
 
 
 
 
Transportation — 3.3%
 
Ohio Turnpike Commission, 5.00%, 2/15/31
  $ 1,000     $ 1,102,070      
 
 
            $ 1,102,070      
 
 
 
 
Water and Sewer — 2.6%
 
Hamilton County Sewer System, 5.00%, 12/1/32
  $ 750     $ 846,735      
 
 
            $ 846,735      
 
 
     
Total Tax-Exempt Investments — 149.4%
   
(identified cost $45,636,910)
  $ 49,449,045      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (51.4)%
  $ (17,000,909 )    
 
 
             
Other Assets, Less Liabilities — 2.0%
  $ 653,528      
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 33,101,664      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 
     
AGC
 
- Assured Guaranty Corp.
AGM
 
- Assured Guaranty Municipal Corp.
AMBAC
 
- AMBAC Financial Group, Inc.
CIFG
 
- CIFG Assurance North America, Inc.
FGIC
 
- Financial Guaranty Insurance Company
NPFG
 
- National Public Finance Guaranty Corp.
XLCA
 
- XL Capital Assurance, Inc.
 
The Fund invests primarily in debt securities issued by Ohio municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2012, 70.8% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 0.5% to 21.6% of total investments.
 
(1) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be sold in certain transactions (normally to qualified institutional buyers) and remain exempt from registration. At March 31, 2012, the aggregate value of these securities is $557,515 or 1.7% of the Fund’s net assets applicable to common share.
 
(2) Security has been issued as a leveraged residual interest bond with a variable interest rate. The stated interest rate represents the rate in effect at March 31, 2012.
 
(3) Security is subject to a shortfall agreement which may require the Fund to pay amounts to a counterparty in the event of a significant decline in the market value of the security held by the trust that issued the residual interest bond. In case of a shortfall, the maximum potential amount of payments the Fund could ultimately be required to make under the agreement is $1,320,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security held by the trust that issued the residual interest bond.
 
(4) Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1H).

 
See Notes to Financial Statements.
29


 

 
Eaton Vance
Pennsylvania Municipal Bond Fund
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited)

 
 
                     
Tax-Exempt Investments — 153.3%
 
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
 
Education — 22.9%
 
Allegheny County Higher Education Building Authority, (Duquesne University), 5.50%, 3/1/31
  $ 1,050     $ 1,179,286      
General Authority of South Central Pennsylvania, (York College of Pennsylvania), 5.50%, 11/1/31
    1,500       1,671,750      
Pennsylvania Higher Educational Facilities Authority, (Saint Joseph’s University), 5.00%, 11/1/40
    440       466,277      
Pennsylvania Higher Educational Facilities Authority, (Thomas Jefferson University), 5.00%, 3/1/40
    925       992,099      
Pennsylvania Higher Educational Facilities Authority, (University of Pennsylvania), 4.75%, 7/15/35
    2,900       3,011,186      
State Public School Building Authority, (Northampton County Area Community College), 5.50%, 3/1/31
    750       834,563      
University of Pittsburgh, 5.25%, 9/15/29
    500       573,775      
Washington County Industrial Development Authority, (Washington and Jefferson College), 5.25%, 11/1/30
    575       619,896      
 
 
            $ 9,348,832      
 
 
 
 
General Obligations — 3.7%
 
Delaware Valley Regional Finance Authority, 5.75%, 7/1/32
  $ 1,000     $ 1,154,000      
Montgomery County, 5.00%, 3/15/20
    300       370,956      
 
 
            $ 1,524,956      
 
 
 
 
Hospital — 16.3%
 
Chester County Health and Education Facilities Authority, (Jefferson Health System), 5.00%, 5/15/40
  $ 750     $ 794,347      
Franklin County Industrial Development Authority, (The Chambersburg Hospital), 5.375%, 7/1/42
    1,000       1,044,610      
Lehigh County General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32
    1,455       1,490,138      
Monroe County Hospital Authority, (Pocono Medical Center), 5.125%, 1/1/37
    1,250       1,268,850      
Northampton County General Purpose Authority, (Saint Luke’s Hospital), 5.50%, 8/15/33
    250       262,730      
Pennsylvania Higher Educational Facilities Authority, (UPMC Health System), 5.00%, 5/15/31
    675       726,982      
Philadelphia Hospitals and Higher Education Facilities Authority, 5.00%, 7/1/32
    750       821,145      
South Fork Municipal Authority, (Conemaugh Health System), 5.50%, 7/1/29
    250       262,398      
 
 
            $ 6,671,200      
 
 
 
 
Insured – Education — 19.1%
 
Chester County Industrial Development Authority, Educational Facility, (Westtown School), (AMBAC), 5.00%, 1/1/31
  $ 1,000     $ 1,000,850      
Lycoming County Authority, (Pennsylvania College of Technology), (AGC), 5.50%, 10/1/37
    500       534,855      
Lycoming County Authority, (Pennsylvania College of Technology), (AMBAC), 5.25%, 5/1/32
    775       777,069      
Pennsylvania Higher Educational Facilities Authority, (Drexel University), (NPFG), 5.00%, 5/1/37
    1,665       1,751,380      
Pennsylvania Higher Educational Facilities Authority, (Temple University), (NPFG), 4.50%, 4/1/36
    1,305       1,324,810      
Pennsylvania Higher Educational Facilities Authority, (University of the Sciences in Philadelphia), (AGC), 5.00%, 11/1/37
    500       529,425      
State Public School Building Authority, (Delaware County Community College), (AGM), 5.00%, 10/1/27
    500       543,590      
State Public School Building Authority, (Delaware County Community College), (AGM), 5.00%, 10/1/29
    375       403,639      
State Public School Building Authority, (Delaware County Community College), (AGM), 5.00%, 10/1/32
    875       929,679      
 
 
            $ 7,795,297      
 
 
 
 
Insured – Electric Utilities — 2.0%
 
Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/35
  $ 750     $ 820,815      
 
 
            $ 820,815      
 
 
 
 
Insured – General Obligations — 27.6%
 
Bethlehem Area School District, (AGM), 5.25%, 1/15/25
  $ 1,250     $ 1,401,875      
Centennial School District, (AGM), 5.25%, 12/15/37
    660       727,452      
Central Greene School District, (AGM), 5.00%, 2/15/35
    1,350       1,426,882      
Erie School District, (AMBAC), 0.00%, 9/1/30
    1,000       409,600      
Harrisburg School District, (AGC), 5.00%, 11/15/33
    500       529,915      
McKeesport School District, (NPFG), 0.00%, 10/1/21
    2,555       1,677,817      
Norwin School District, (AGM), 3.25%, 4/1/27
    1,500       1,467,330      
Reading School District, (AGM), 5.00%, 3/1/35
    1,500       1,592,415      
Scranton School District, (AGM), 5.00%, 7/15/38
    1,000       1,054,090      
Shaler Area School District, (XLCA), 0.00%, 9/1/33
    2,550       988,202      
 
 
            $ 11,275,578      
 
 
 

 
See Notes to Financial Statements.
30


 

 
Eaton Vance
Pennsylvania Municipal Bond Fund
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited) — continued

 
 
                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
 
Insured – Hospital — 8.4%
 
Allegheny County Hospital Development Authority, (UPMC Health System), (NPFG), 6.00%, 7/1/24
  $ 250     $ 320,040      
Centre County Hospital Authority, (Mount Nittany Medical Center), (AGC), 6.25%, 11/15/44
    500       524,625      
Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (AGM), 5.00%, 7/1/35
    1,620       1,700,725      
Washington County Hospital Authority, (Washington Hospital), (AMBAC), 5.125%, 7/1/28
    865       865,069      
 
 
            $ 3,410,459      
 
 
 
 
Insured – Industrial Development Revenue — 2.7%
 
Pennsylvania Economic Development Financing Authority, (Aqua Pennsylvania, Inc. Project), (BHAC), 5.00%, 10/1/39(1)
  $ 1,000     $ 1,086,200      
 
 
            $ 1,086,200      
 
 
 
 
Insured – Lease Revenue / Certificates of Participation — 4.5%
 
Commonwealth Financing Authority, (AGC), 5.00%, 6/1/31
  $ 500     $ 542,380      
Philadelphia Authority for Industrial Development, (One Benjamin Franklin), (AGM), 4.75%, 2/15/27
    1,215       1,305,931      
 
 
            $ 1,848,311      
 
 
 
 
Insured – Special Tax Revenue — 3.0%
 
Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54
  $ 10,835     $ 855,098      
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
    2,450       374,801      
 
 
            $ 1,229,899      
 
 
 
 
Insured – Transportation — 8.9%
 
Philadelphia, Airport Revenue, (AGC), 5.375%, 6/15/29
  $ 295     $ 319,577      
Pittsburgh and Allegheny County Sports and Exhibition Authority, (AGM), 5.00%, 2/1/31
    1,000       1,080,920      
Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(1)
    2,100       2,218,503      
 
 
            $ 3,619,000      
 
 
 
 
Insured – Utilities — 2.2%
 
Philadelphia Gas Works, (AMBAC), 5.00%, 10/1/37
  $ 890     $ 899,585      
 
 
            $ 899,585      
 
 
 
 
Insured – Water and Sewer — 12.9%
 
Allegheny County Sanitation Authority, (BHAC), (FGIC), 5.00%, 12/1/32
  $ 300     $ 317,820      
Allegheny County Sanitation Authority, (BHAC), (NPFG), 5.00%, 12/1/22
    1,500       1,622,100      
Bucks County Water and Sewer Authority, (AGM), 5.00%, 12/1/35
    500       541,825      
Erie Sewer Authority, (AMBAC), 0.00%, 12/1/26
    1,920       873,062      
Erie Sewer Authority, Series A, (AMBAC), 0.00%, 12/1/25
    1,430       693,664      
Erie Sewer Authority, Series B, (AMBAC), 0.00%, 12/1/25
    2,155       1,045,348      
Saxonburg Water and Sewer Authority, (AGC), 5.00%, 3/1/35
    150       155,912      
 
 
            $ 5,249,731      
 
 
 
 
Other Revenue — 2.6%
 
Southeastern Pennsylvania Transportation Authority, Federal Grant Receipts, 5.00%, 6/1/27
  $ 950     $ 1,052,809      
 
 
            $ 1,052,809      
 
 
 
 
Senior Living / Life Care — 0.5%
 
Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/24
  $ 200     $ 205,742      
 
 
            $ 205,742      
 
 
 
 
Special Tax Revenue — 0.3%
 
Virgin Islands Public Finance Authority, 6.75%, 10/1/37
  $ 110     $ 126,390      
 
 
            $ 126,390      
 
 
 
 
Transportation — 12.4%
 
Allegheny County Port Authority, 5.75%, 3/1/29
  $ 1,500     $ 1,716,420      
Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/35
    465       496,825      
Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/40
    730       776,953      
Pennsylvania Turnpike Commission, 1.00%, 12/1/30
    500       450,750      
Pennsylvania Turnpike Commission, 5.25%, 12/1/31
    1,000       1,089,730      
Philadelphia Airport, 5.25%, 6/15/27
    500       555,000      
 
 
            $ 5,085,678      
 
 
 

 
See Notes to Financial Statements.
31


 

 
Eaton Vance
Pennsylvania Municipal Bond Fund
 
March 31, 2012
 
 
Portfolio of Investments (Unaudited) — continued

 
                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
 
Water and Sewer — 3.3%
 
Philadelphia, Water and Wastewater Revenue, 5.00%, 1/1/36
  $ 500     $ 534,490      
Philadelphia, Water and Wastewater Revenue, 5.25%, 1/1/32
    765       823,163      
 
 
            $ 1,357,653      
 
 
     
Total Tax-Exempt Investments — 153.3%
   
(identified cost $59,650,296)
  $ 62,608,135      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (53.2)%
  $ (21,725,328 )    
 
 
             
Other Assets, Less Liabilities — (0.1)%
  $ (48,290 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 40,834,517      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 
     
AGC
 
- Assured Guaranty Corp.
AGM
 
- Assured Guaranty Municipal Corp.
AMBAC
 
- AMBAC Financial Group, Inc.
BHAC
 
- Berkshire Hathaway Assurance Corp.
CIFG
 
- CIFG Assurance North America, Inc.
FGIC
 
- Financial Guaranty Insurance Company
NPFG
 
- National Public Finance Guaranty Corp.
XLCA
 
- XL Capital Assurance, Inc.
 
The Fund invests primarily in debt securities issued by Pennsylvania municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2012, 59.5% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.6% to 22.6% of total investments.
 
(1) Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1H).

 
See Notes to Financial Statements.
32


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Statements of Assets and Liabilities (Unaudited)

 
                                     
    March 31, 2012    
   
Assets   Municipal Fund II   California Fund II   Massachusetts Fund   Michigan Fund    
 
Investments —
                                   
Identified cost
  $ 206,180,093     $ 78,295,158     $ 38,360,822     $ 31,794,501      
Unrealized appreciation
    6,442,020       4,589,155       4,067,651       2,460,161      
 
 
Investments, at value
  $ 212,622,113     $ 82,884,313     $ 42,428,473     $ 34,254,662      
 
 
Cash
  $     $ 864,598     $ 370,190     $      
Restricted cash*
    350,000       130,000       50,000       35,000      
Interest receivable
    2,802,096       865,225       498,480       459,310      
Receivable for investments sold
    7,316,040                   764,628      
Receivable for variation margin on open financial futures contracts
    123,891       42,047       15,750       11,250      
Receivable from the transfer agent
    20,456             3,110       1,634      
Deferred debt issuance costs
    74,771       21,536       3,773            
 
 
Total assets
  $ 223,309,367     $ 84,807,719     $ 43,369,776     $ 35,526,484      
 
 
                                     
                                     
 
Liabilities
 
Payable for floating rate notes issued
  $ 45,685,000     $ 9,885,000     $ 3,330,000     $      
Due to custodian
    5,844,112                   90,157      
Payable to affiliates:
                                   
Investment adviser fee
    100,232       38,704       19,675       16,560      
Interest expense and fees payable
    83,239       17,098       7,147            
Accrued expenses
    42,846       30,882       19,657       18,459      
 
 
Total liabilities
  $ 51,755,429     $ 9,971,684     $ 3,376,479     $ 125,176      
 
 
Auction preferred shares at liquidation value plus cumulative unpaid dividends
  $ 44,701,698     $ 25,700,578     $ 13,575,205     $ 13,325,401      
 
 
Net assets applicable to common shares
  $ 126,852,240     $ 49,135,457     $ 26,418,092     $ 22,075,907      
 
 
                                     
                                     
 
Sources of Net Assets
 
Common shares, $0.01 par value, unlimited number of shares authorized
  $ 99,999     $ 38,831     $ 17,667     $ 15,134      
Additional paid-in capital
    141,664,721       54,989,257       25,029,238       21,435,718      
Accumulated net realized loss
    (21,933,774 )     (10,729,963 )     (2,864,287 )     (1,973,429 )    
Accumulated undistributed net investment income
    367,489       140,819       124,863       122,122      
Net unrealized appreciation
    6,653,805       4,696,513       4,110,611       2,476,362      
 
 
Net assets applicable to common shares
  $ 126,852,240     $ 49,135,457     $ 26,418,092     $ 22,075,907      
 
 
                                     
                                     
                                     
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
    1,788 (1)     1,028       543       533      
 
 
                                     
                                     
                                     
Common Shares Outstanding     9,999,896       3,883,143       1,766,663       1,513,417      
 
 
                                     
                                     
 
Net Asset Value Per Common Share
 
Net assets applicable to common shares ¸ common shares issued and outstanding
  $ 12.69     $ 12.65     $ 14.95     $ 14.59      
 
 
 
* Represents restricted cash on deposit at the broker for open financial futures contracts.
(1) Comprised of 894 Series A shares and 894 Series B shares.

 
See Notes to Financial Statements.
33


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Statements of Assets and Liabilities (Unaudited) — continued

 
                                     
    March 31, 2012    
   
Assets   New Jersey Fund   New York Fund II   Ohio Fund   Pennsylvania Fund    
 
Investments —
                                   
Identified cost
  $ 55,348,265     $ 51,855,248     $ 45,636,910     $ 59,650,296      
Unrealized appreciation
    4,759,082       3,821,404       3,812,135       2,957,839      
 
 
Investments, at value
  $ 60,107,347     $ 55,676,652     $ 49,449,045     $ 62,608,135      
 
 
Cash
  $     $ 710,784     $ 171,555     $ 1,141,865      
Restricted cash*
    240,000       80,000       95,000       125,000      
Interest receivable
    628,629       767,688       570,529       741,512      
Receivable for investments sold
          2,281,666       391,731            
Receivable for variation margin on open financial futures contracts
    84,375       24,750       32,344       39,375      
Receivable from the transfer agent
    12,720       2,105       5,454       3,273      
Deferred debt issuance costs
    7,055       5,321                  
 
 
Total assets
  $ 61,080,126     $ 59,548,966     $ 50,715,658     $ 64,659,160      
 
 
                                     
                                     
 
Liabilities
 
Payable for floating rate notes issued
  $ 4,790,000     $ 9,370,000     $ 250,000     $ 2,040,000      
Payable for investments purchased
                316,830            
Payable for when-issued securities
          2,703,400                  
Due to custodian
    115,446                        
Payable to affiliates:
                                   
Investment adviser fee
    27,619       26,474       23,583       30,255      
Interest expense and fees payable
    14,868       18,711       630       5,630      
Accrued expenses
    22,350       22,413       22,042       23,430      
 
 
Total liabilities
  $ 4,970,283     $ 12,140,998     $ 613,085     $ 2,099,315      
 
 
Auction preferred shares at liquidation value plus cumulative unpaid dividends
  $ 19,600,694     $ 13,250,397     $ 17,000,909     $ 21,725,328      
 
 
Net assets applicable to common shares
  $ 36,509,149     $ 34,157,571     $ 33,101,664     $ 40,834,517      
 
 
                                     
                                     
 
Sources of Net Assets
 
Common shares, $0.01 par value, unlimited number of shares authorized
  $ 26,005     $ 25,651     $ 25,332     $ 29,572      
Additional paid-in capital
    36,831,993       36,329,848       35,854,565       41,890,843      
Accumulated net realized loss
    (5,417,834 )     (6,147,709 )     (6,832,724 )     (4,485,503 )    
Accumulated undistributed net investment income
    79,762       60,869       191,411       334,367      
Net unrealized appreciation
    4,989,223       3,888,912       3,863,080       3,065,238      
 
 
Net assets applicable to common shares
  $ 36,509,149     $ 34,157,571     $ 33,101,664     $ 40,834,517      
 
 
                                     
                                     
                                     
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
    784       530       680       869      
 
 
                                     
                                     
                                     
Common Shares Outstanding     2,600,507       2,565,110       2,533,242       2,957,217      
 
 
                                     
                                     
 
Net Asset Value Per Common Share
 
Net assets applicable to common shares ¸ common shares issued and outstanding
  $ 14.04     $ 13.32     $ 13.07     $ 13.81      
 
 
 
* Represents restricted cash on deposit at the broker for open financial futures contracts.

 
See Notes to Financial Statements.
34


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Statements of Operations (Unaudited)

 
                                     
    Six Months Ended March 31, 2012    
   
Investment Income   Municipal Fund II   California Fund II   Massachusetts Fund   Michigan Fund    
 
Interest
  $ 5,263,039     $ 1,882,818     $ 932,474     $ 830,810      
 
 
Total investment income
  $ 5,263,039     $ 1,882,818     $ 932,474     $ 830,810      
 
 
                                     
                                     
 
Expenses
 
Investment adviser fee
  $ 578,939     $ 222,627     $ 113,748     $ 96,361      
Trustees’ fees and expenses
    4,497       1,881       1,085       960      
Custodian fee
    55,063       26,494       17,603       17,031      
Transfer and dividend disbursing agent fees
    9,458       9,413       9,383       9,423      
Legal and accounting services
    159,643       21,707       18,535       16,525      
Printing and postage
    12,234       5,448       4,902       4,731      
Interest expense and fees
    180,418       30,547       11,698            
Preferred shares service fee
    33,656       19,350       10,221       10,032      
Miscellaneous
    25,482       38,848       14,803       13,712      
 
 
Total expenses
  $ 1,059,390     $ 376,315     $ 201,978     $ 168,775      
 
 
Deduct —
                                   
Reduction of custodian fee
  $ 210     $ 84     $ 26     $ 25      
 
 
Total expense reductions
  $ 210     $ 84     $ 26     $ 25      
 
 
                                     
Net expenses
  $ 1,059,180     $ 376,231     $ 201,952     $ 168,750      
 
 
                                     
Net investment income
  $ 4,203,859     $ 1,506,587     $ 730,522     $ 662,060      
 
 
                                     
                                     
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) —
                                   
Investment transactions
  $ 672,502     $ (284,958 )   $ (128,884 )   $ (136,159 )    
Extinguishment of debt
    (325 )                      
Financial futures contracts
    (365,654 )     (248,672 )     (45,403 )     (11,739 )    
Swap contracts
    (92,995 )     (56,184 )     (26,736 )     (20,924 )    
 
 
Net realized gain (loss)
  $ 213,528     $ (589,814 )   $ (201,023 )   $ (168,822 )    
 
 
Change in unrealized appreciation (depreciation) —
                                   
Investments
  $ 5,919,886     $ 3,729,223     $ 1,326,218     $ 930,309      
Financial futures contracts
    556,492       330,330       68,787       16,201      
Swap contracts
    352,540       212,993       101,355       79,322      
 
 
Net change in unrealized appreciation (depreciation)
  $ 6,828,918     $ 4,272,546     $ 1,496,360     $ 1,025,832      
 
 
                                     
Net realized and unrealized gain
  $ 7,042,446     $ 3,682,732     $ 1,295,337     $ 857,010      
 
 
                                     
Distributions to preferred shareholders —
                                   
 
 
From net investment income
  $ (45,124 )   $ (25,956 )   $ (13,575 )   $ (13,159 )    
 
 
                                     
Net increase in net assets from operations
  $ 11,201,181     $ 5,163,363     $ 2,012,284     $ 1,505,911      
 
 

 
See Notes to Financial Statements.
35


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Statements of Operations (Unaudited) — continued

 
                                     
    Six Months Ended March 31, 2012    
   
Investment Income   New Jersey Fund   New York Fund II   Ohio Fund   Pennsylvania Fund    
 
Interest
  $ 1,332,285     $ 1,314,678     $ 1,190,748     $ 1,512,104      
 
 
Total investment income
  $ 1,332,285     $ 1,314,678     $ 1,190,748     $ 1,512,104      
 
 
                                     
                                     
 
Expenses
 
Investment adviser fee
  $ 159,251     $ 154,077     $ 135,594     $ 175,133      
Trustees’ fees and expenses
    1,415       1,387       1,244       1,536      
Custodian fee
    21,598       20,950       19,951       22,660      
Transfer and dividend disbursing agent fees
    9,418       9,438       9,464       9,514      
Legal and accounting services
    19,007       20,568       19,686       19,717      
Printing and postage
    5,013       6,188       5,769       6,144      
Interest expense and fees
    21,490       40,159       1,242       8,237      
Preferred shares service fee
    14,757       9,975       12,799       16,357      
Miscellaneous
    15,444       16,747       14,877       15,984      
 
 
Total expenses
  $ 267,393     $ 279,489     $ 220,626     $ 275,282      
 
 
Deduct —
                                   
Reduction of custodian fee
  $ 139     $ 26     $ 21     $ 24      
 
 
Total expense reductions
  $ 139     $ 26     $ 21     $ 24      
 
 
                                     
Net expenses
  $ 267,254     $ 279,463     $ 220,605     $ 275,258      
 
 
                                     
Net investment income
  $ 1,065,031     $ 1,035,215     $ 970,143     $ 1,236,846      
 
 
                                     
                                     
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) —
                                   
Investment transactions
  $ (173,340 )   $ 78,004     $ (199,105 )   $ (571,277 )    
Financial futures contracts
    (499,501 )     (72,293 )     (103,373 )     15,531      
Swap contracts
    (38,748 )     (61,996 )     (23,249 )     (30,998 )    
 
 
Net realized loss
  $ (711,589 )   $ (56,285 )   $ (325,727 )   $ (586,744 )    
 
 
Change in unrealized appreciation (depreciation) —
                                   
Investments
  $ 2,114,707     $ 1,196,937     $ 2,279,570     $ 2,343,985      
Financial futures contracts
    743,306       108,831       131,372       47,288      
Swap contracts
    146,892       235,027       88,135       117,513      
 
 
Net change in unrealized appreciation (depreciation)
  $ 3,004,905     $ 1,540,795     $ 2,499,077     $ 2,508,786      
 
 
                                     
Net realized and unrealized gain
  $ 2,293,316     $ 1,484,510     $ 2,173,350     $ 1,922,042      
 
 
                                     
Distributions to preferred shareholders —
                                   
 
 
From net investment income
  $ (20,351 )   $ (13,249 )   $ (17,154 )   $ (21,994 )    
 
 
                                     
Net increase in net assets from operations
  $ 3,337,996     $ 2,506,476     $ 3,126,339     $ 3,136,894      
 
 

 
See Notes to Financial Statements.
36


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Statements of Changes in Net Assets

 
                                     
    Six Months Ended March 31, 2012 (Unaudited)    
   
Increase (Decrease) in Net Assets   Municipal Fund II   California Fund II   Massachusetts Fund   Michigan Fund    
 
From operations —
                                   
Net investment income
  $ 4,203,859     $ 1,506,587     $ 730,522     $ 662,060      
Net realized gain (loss) from investment transactions, extinguishment of debt, financial futures contracts and swap contracts
    213,528       (589,814 )     (201,023 )     (168,822 )    
Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts
    6,828,918       4,272,546       1,496,360       1,025,832      
Distributions to preferred shareholders —
                                   
From net investment income
    (45,124 )     (25,956 )     (13,575 )     (13,159 )    
 
 
Net increase in net assets from operations
  $ 11,201,181     $ 5,163,363     $ 2,012,284     $ 1,505,911      
 
 
Distributions to common shareholders —
                                   
From net investment income
  $ (4,784,754 )   $ (1,583,968 )   $ (741,770 )   $ (672,528 )    
 
 
Total distributions to common shareholders
  $ (4,784,754 )   $ (1,583,968 )   $ (741,770 )   $ (672,528 )    
 
 
Capital share transactions —
                                   
Reinvestment of distributions to common shareholders
  $ 128,069     $ 21,322     $ 13,153     $ 9,728      
 
 
Net increase in net assets from capital share transactions
  $ 128,069     $ 21,322     $ 13,153     $ 9,728      
 
 
                                     
Net increase in net assets
  $ 6,544,496     $ 3,600,717     $ 1,283,667     $ 843,111      
 
 
                                     
                                     
 
Net Assets Applicable to Common Shares
 
At beginning of period
  $ 120,307,744     $ 45,534,740     $ 25,134,425     $ 21,232,796      
 
 
At end of period
  $ 126,852,240     $ 49,135,457     $ 26,418,092     $ 22,075,907      
 
 
                                     
                                     
 
Accumulated undistributed net investment income
included in net assets applicable to common shares
 
At end of period
  $ 367,489     $ 140,819     $ 124,863     $ 122,122      
 
 

 
See Notes to Financial Statements.
37


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Statements of Changes in Net Assets — continued

 
                                     
    Six Months Ended March 31, 2012 (Unaudited)    
   
Increase (Decrease) in Net Assets   New Jersey Fund   New York Fund II   Ohio Fund   Pennsylvania Fund    
 
From operations —
                                   
Net investment income
  $ 1,065,031     $ 1,035,215     $ 970,143     $ 1,236,846      
Net realized loss from investment transactions, financial futures contracts and swap contracts
    (711,589 )     (56,285 )     (325,727 )     (586,744 )    
Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts
    3,004,905       1,540,795       2,499,077       2,508,786      
Distributions to preferred shareholders —
                                   
From net investment income
    (20,351 )     (13,249 )     (17,154 )     (21,994 )    
 
 
Net increase in net assets from operations
  $ 3,337,996     $ 2,506,476     $ 3,126,339     $ 3,136,894      
 
 
Distributions to common shareholders —
                                   
From net investment income
  $ (1,095,112 )   $ (1,079,659 )   $ (977,278 )   $ (1,290,467 )    
 
 
Total distributions to common shareholders
  $ (1,095,112 )   $ (1,079,659 )   $ (977,278 )   $ (1,290,467 )    
 
 
Capital share transactions —
                                   
Reinvestment of distributions to common shareholders
  $ 80,160     $ 14,122     $ 31,001     $ 15,893      
 
 
Net increase in net assets from capital share transactions
  $ 80,160     $ 14,122     $ 31,001     $ 15,893      
 
 
                                     
Net increase in net assets
  $ 2,323,044     $ 1,440,939     $ 2,180,062     $ 1,862,320      
 
 
                                     
                                     
 
Net Assets Applicable to Common Shares
 
At beginning of period
  $ 34,186,105     $ 32,716,632     $ 30,921,602     $ 38,972,197      
 
 
At end of period
  $ 36,509,149     $ 34,157,571     $ 33,101,664     $ 40,834,517      
 
 
                                     
                                     
 
Accumulated undistributed net investment income
included in net assets applicable to common shares
 
At end of period
  $ 79,762     $ 60,869     $ 191,411     $ 334,367      
 
 

 
See Notes to Financial Statements.
38


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Statements of Changes in Net Assets — continued

 
                                     
    Year Ended September 30, 2011    
   
Increase (Decrease) in Net Assets   Municipal Fund II   California Fund II   Massachusetts Fund   Michigan Fund    
 
From operations —
                                   
Net investment income
  $ 9,266,701     $ 3,314,138     $ 1,546,235     $ 1,381,043      
Net realized loss from investment transactions, extinguishment of debt, financial futures contracts and swap contracts
    (6,577,476 )     (4,047,797 )     (1,120,707 )     (371,914 )    
Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts
    255,940       1,097,057       274,726       (378,552 )    
Distributions to preferred shareholders —
                                   
From net investment income
    (153,850 )     (87,975 )     (46,254 )     (45,419 )    
 
 
Net increase in net assets from operations
  $ 2,791,315     $ 275,423     $ 654,000     $ 585,158      
 
 
Distributions to common shareholders —
                                   
From net investment income
  $ (9,538,162 )   $ (3,338,981 )   $ (1,481,919 )   $ (1,342,118 )    
 
 
Total distributions to common shareholders
  $ (9,538,162 )   $ (3,338,981 )   $ (1,481,919 )   $ (1,342,118 )    
 
 
Capital share transactions —
                                   
Reinvestment of distributions to common shareholders
  $ 240,533     $ 68,979     $ 42,595     $ 4,962      
 
 
Net increase in net assets from capital share transactions
  $ 240,533     $ 68,979     $ 42,595     $ 4,962      
 
 
                                     
Net decrease in net assets
  $ (6,506,314 )   $ (2,994,579 )   $ (785,324 )   $ (751,998 )    
 
 
                                     
                                     
 
Net Assets Applicable to Common Shares
 
At beginning of year
  $ 126,814,058     $ 48,529,319     $ 25,919,749     $ 21,984,794      
 
 
At end of year
  $ 120,307,744     $ 45,534,740     $ 25,134,425     $ 21,232,796      
 
 
                                     
                                     
 
Accumulated undistributed net investment income
included in net assets applicable to common shares
 
At end of year
  $ 993,508     $ 244,156     $ 149,686     $ 145,749      
 
 

 
See Notes to Financial Statements.
39


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Statements of Changes in Net Assets — continued

 
                                     
    Year Ended September 30, 2011    
   
Increase (Decrease) in Net Assets   New Jersey Fund   New York Fund II   Ohio Fund   Pennsylvania Fund    
 
From operations —
                                   
Net investment income
  $ 2,315,111     $ 2,225,131     $ 2,058,345     $ 2,636,633      
Net realized loss from investment transactions, extinguishment of debt, financial futures contracts and swap contracts
    (913,795 )     (1,555,448 )     (578,575 )     (1,067,018 )    
Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts
    (2,139,373 )     (43,377 )     (1,329,984 )     (268,752 )    
Distributions to preferred shareholders —
                                   
From net investment income
    (67,619 )     (45,630 )     (58,829 )     (73,587 )    
 
 
Net increase (decrease) in net assets from operations
  $ (805,676 )   $ 580,676     $ 90,957     $ 1,227,276      
 
 
Distributions to common shareholders —
                                   
From net investment income
  $ (2,381,054 )   $ (2,226,059 )   $ (1,951,904 )   $ (2,564,189 )    
 
 
Total distributions to common shareholders
  $ (2,381,054 )   $ (2,226,059 )   $ (1,951,904 )   $ (2,564,189 )    
 
 
Capital share transactions —
                                   
Reinvestment of distributions to common shareholders
  $ 150,425     $ 33,998     $ 56,745     $ 52,778      
 
 
Net increase in net assets from capital share transactions
  $ 150,425     $ 33,998     $ 56,745     $ 52,778      
 
 
                                     
Net decrease in net assets
  $ (3,036,305 )   $ (1,611,385 )   $ (1,804,202 )   $ (1,284,135 )    
 
 
                                     
                                     
 
Net Assets Applicable to Common Shares
 
At beginning of year
  $ 37,222,410     $ 34,328,017     $ 32,725,804     $ 40,256,332      
 
 
At end of year
  $ 34,186,105     $ 32,716,632     $ 30,921,602     $ 38,972,197      
 
 
                                     
                                     
 
Accumulated undistributed net investment income
included in net assets applicable to common shares
 
At end of year
  $ 130,194     $ 118,562     $ 215,700     $ 409,982      
 
 

 
See Notes to Financial Statements.
40


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Statements of Cash Flows* (Unaudited)

 
                             
    Six Months Ended March 31, 2012    
   
Cash Flows From Operating Activities   Municipal Fund II   California Fund II   New York Fund II    
 
Net increase in net assets from operations
  $ 11,201,181     $ 5,163,363     $ 2,506,476      
Distributions to preferred shareholders
    45,124       25,956       13,249      
 
 
Net increase in net assets from operations excluding distributions to preferred shareholders
  $ 11,246,305     $ 5,189,319     $ 2,519,725      
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities:
                           
Investments purchased
    (24,389,086 )     (9,140,863 )     (4,442,298 )    
Investments sold
    33,134,289       9,587,061       6,962,168      
Net amortization/accretion of premium (discount)
    (668,810 )     (234,434 )     (82,484 )    
Amortization of deferred debt issuance costs
    8,910       1,255       1,962      
Increase in restricted cash
    (350,000 )     (130,000 )     (80,000 )    
Decrease (increase) in interest receivable
    (108,742 )     (27,130 )     37,091      
Decrease (increase) in receivable for investments sold
    (7,209,065 )     859,572       (2,253,975 )    
Increase in receivable for variation margin on open financial futures contracts
    (123,891 )     (42,047 )     (24,750 )    
Decrease in receivable from the transfer agent
    1,180       5,513       434      
Decrease in payable for investments purchased
          (435,293 )          
Increase (decrease) in payable for when-issued securities
          (1,747,167 )     2,703,400      
Decrease in payable for variation margin on open financial futures contracts
    (27,203 )     (17,610 )     (4,375 )    
Decrease in payable for open swap contracts
    (352,540 )     (212,993 )     (235,027 )    
Increase in payable to affiliate for investment adviser fee
    6,688       3,063       1,571      
Decrease in interest expense and fees payable
    (22,346 )     (418 )     (3,816 )    
Decrease in accrued expenses
    (47,708 )     (28,151 )     (29,089 )    
Net change in unrealized (appreciation) depreciation from investments
    (5,919,886 )     (3,729,223 )     (1,196,937 )    
Net realized (gain) loss from investments
    (672,502 )     284,958       (78,004 )    
Net realized loss on extinguishment of debt
    325                  
 
 
Net cash provided by operating activities
  $ 4,505,918     $ 185,412     $ 3,795,596      
 
 
                             
                             
 
Cash Flows From Financing Activities
 
Distributions paid to common shareholders, net of reinvestments
  $ (4,656,685 )   $ (1,562,646 )   $ (1,065,537 )    
Cash distributions paid to preferred shareholders
    (44,835 )     (25,721 )     (13,118 )    
Repayment of secured borrowings
    (9,310,000 )           (2,450,000 )    
Increase in due to custodian
    5,844,112                  
 
 
Net cash used in financing activities
  $ (8,167,408 )   $ (1,588,367 )   $ (3,528,655 )    
 
 
                             
Net increase (decrease) in cash
  $ (3,661,490 )   $ (1,402,955 )   $ 266,941      
 
 
                             
Cash at beginning of period
  $ 3,661,490     $ 2,267,553     $ 443,843      
 
 
                             
Cash at end of period
  $     $ 864,598     $ 710,784      
 
 
                             
                             
 
Supplemental disclosure of cash flow information:
 
Noncash financing activities not included herein consist of:
                           
Reinvestment of dividends and distributions
  $ 128,069     $ 21,322     $ 14,122      
Cash paid for interest and fees
    193,854       29,710       42,013      
 
 
 
* Statement of Cash Flows is not required for Massachusetts Fund, Michigan Fund, New Jersey Fund, Ohio Fund and Pennsylvania Fund.

 
See Notes to Financial Statements.
41


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Financial Highlights
Selected data for a common share outstanding during the periods stated

 
                                                     
    Municipal Fund II    
   
    Six Months Ended
  Year Ended September 30,    
    March 31, 2012
 
    (Unaudited)   2011   2010   2009   2008   2007    
 
Net asset value — Beginning of period (Common shares)
  $ 12.040     $ 12.720     $ 12.880     $ 11.030     $ 15.470     $ 15.860      
 
 
                                                     
                                                     
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.421     $ 0.929     $ 0.961     $ 0.943     $ 1.037     $ 1.048      
Net realized and unrealized gain (loss)
    0.713       (0.638 )     (0.164 )     1.813       (4.159 )     (0.383 )    
Distributions to preferred shareholders(1)
                                                   
From net investment income
    (0.005 )     (0.015 )     (0.018 )     (0.058 )     (0.168 )     (0.303 )    
From net realized gain
                            (0.117 )          
 
 
Total income (loss) from operations
  $ 1.129     $ 0.276     $ 0.779     $ 2.698     $ (3.407 )   $ 0.362      
 
 
                                                     
                                                     
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.479 )   $ (0.956 )   $ (0.939 )   $ (0.848 )   $ (0.747 )   $ (0.752 )    
From net realized gain
                            (0.286 )          
 
 
Total distributions to common shareholders
  $ (0.479 )   $ (0.956 )   $ (0.939 )   $ (0.848 )   $ (1.033 )   $ (0.752 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 12.690     $ 12.040     $ 12.720     $ 12.880     $ 11.030     $ 15.470      
 
 
                                                     
Market value — End of period (Common shares)
  $ 14.490     $ 13.280     $ 14.010     $ 13.370     $ 11.650     $ 14.550      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    9.25 %(3)     2.45 %     6.26 %     26.08 %     (23.08 )%     2.43 %(4)    
 
 
                                                     
Total Investment Return on Market Value(2)
    13.10 %(3)     2.60 %     12.78 %     23.88 %     (13.61 )%     (0.20 )%(4)    
 
 

 
See Notes to Financial Statements.
42


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Financial Highlights — continued
Selected data for a common share outstanding during the periods stated

 
                                                     
    Municipal Fund II    
   
    Six Months Ended
  Year Ended September 30,    
    March 31, 2012
 
Ratios/Supplemental Data   (Unaudited)   2011   2010   2009   2008   2007    
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 126,852     $ 120,308     $ 126,814     $ 128,150     $ 109,648     $ 153,612      
Ratios (as a percentage of average daily net assets applicable to common shares):(5)
                                                   
Expenses excluding interest and fees
    1.43 %(6)     1.50 %     1.22 %     1.28 %     1.09 %     1.00 %(7)    
Interest and fee expense(8)
    0.29 %(6)     0.35 %     0.38 %     0.87 %     0.93 %     0.99 %    
Total expenses before custodian fee reduction
    1.72 %(6)     1.85 %     1.60 %     2.15 %     2.02 %     1.99 %(7)    
Expenses after custodian fee reduction excluding interest and fees
    1.43 %(6)     1.49 %     1.22 %     1.27 %     1.05 %     0.99 %(7)    
Net investment income
    6.83 %(6)     8.23 %     7.86 %     9.05 %     7.40 %     6.62 %    
Portfolio Turnover
    11 %(3)     12 %     13 %     22 %     54 %     31 %    
 
 
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(5)
                                                   
Expenses excluding interest and fees
    1.05 %(6)     1.07 %     0.89 %     0.89 %     0.69 %     0.64 %(7)    
Interest and fee expense(8)
    0.21 %(6)     0.25 %     0.28 %     0.61 %     0.60 %     0.64 %    
Total expenses before custodian fee reduction
    1.26 %(6)     1.32 %     1.17 %     1.50 %     1.29 %     1.28 %(7)    
Expenses after custodian fee reduction excluding interest and fees
    1.05 %(6)     1.07 %     0.89 %     0.89 %     0.67 %     0.63 %(7)    
Net investment income
    5.01 %(6)     5.89 %     5.75 %     6.32 %     4.73 %     4.25 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    1,788       1,788       1,788       1,788       1,788       3,500      
Asset coverage per preferred share(9)
  $ 95,947     $ 92,287     $ 95,926     $ 96,674     $ 86,356     $ 68,894      
Involuntary liquidation preference per preferred share(10)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(10)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
(3) Not annualized.
(4) During the year ended September 30, 2007, the investment adviser fully reimbursed the Fund for a realized loss on the disposal of an investment security which did not meet investment guidelines. The loss had no effect on total return.
(5) Ratios do not reflect the effect of dividend payments to preferred shareholders.
(6) Annualized.
(7) The investment adviser was allocated a portion of the Fund’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower.
(8) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).
(9) Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.
(10) Plus accumulated and unpaid dividends.

 
See Notes to Financial Statements.
43


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Financial Highlights — continued
Selected data for a common share outstanding during the periods stated

 
                                                     
    California Fund II    
   
    Six Months Ended
  Year Ended September 30,    
    March 31, 2012
 
    (Unaudited)   2011   2010   2009   2008   2007    
 
Net asset value — Beginning of period (Common shares)
  $ 11.730     $ 12.520     $ 12.940     $ 11.310     $ 15.020     $ 15.330      
 
 
                                                     
                                                     
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.388     $ 0.855     $ 0.898     $ 0.877     $ 0.983     $ 0.981      
Net realized and unrealized gain (loss)
    0.947       (0.761 )     (0.433 )     1.601       (3.583 )     (0.301 )    
Distributions to preferred shareholders(1)
                                                   
From net investment income
    (0.007 )     (0.023 )     (0.027 )     (0.084 )     (0.233 )     (0.282 )    
From net realized gain
                            (0.053 )          
 
 
Total income (loss) from operations
  $ 1.328     $ 0.071     $ 0.438     $ 2.394     $ (2.886 )   $ 0.398      
 
 
                                                     
                                                     
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.408 )   $ (0.861 )   $ (0.858 )   $ (0.764 )   $ (0.693 )   $ (0.708 )    
From net realized gain
                            (0.131 )          
 
 
Total distributions to common shareholders
  $ (0.408 )   $ (0.861 )   $ (0.858 )   $ (0.764 )   $ (0.824 )   $ (0.708 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 12.650     $ 11.730     $ 12.520     $ 12.940     $ 11.310     $ 15.020      
 
 
                                                     
Market value — End of period (Common shares)
  $ 12.500     $ 12.260     $ 13.250     $ 12.500     $ 10.250     $ 14.250      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    11.49 %(3)     1.31 %     3.93 %     23.06 %     (19.81 )%     2.75 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    5.41 %(3)     0.06 %     13.86 %     31.17 %     (23.40 )%     2.11 %    
 
 
                                                     
                                                     

 
See Notes to Financial Statements.
44


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Financial Highlights — continued
Selected data for a common share outstanding during the periods stated

 
                                                     
    California Fund II    
   
    Six Months Ended
  Year Ended September 30,    
    March 31, 2012
 
Ratios/Supplemental Data   (Unaudited)   2011   2010   2009   2008   2007    
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 49,135     $ 45,535     $ 48,529     $ 50,080     $ 43,718     $ 58,010      
Ratios (as a percentage of average daily net assets applicable to common shares):(4)
                                                   
Expenses excluding interest and fees
    1.46 %(5)     1.47 %     1.39 %     1.51 %     1.23 %     1.11 %(6)    
Interest and fee expense(7)
    0.13 %(5)     0.15 %     0.16 %     0.37 %     0.42 %     0.50 %    
Total expenses before custodian fee reduction
    1.59 %(5)     1.62 %     1.55 %     1.88 %     1.65 %     1.61 %(6)    
Expenses after custodian fee reduction excluding interest and fees
    1.46 %(5)     1.47 %     1.38 %     1.50 %     1.19 %     1.09 %(6)    
Net investment income
    6.37 %(5)     7.75 %     7.47 %     8.23 %     7.11 %     6.42 %    
Portfolio Turnover
    11 %(3)     34 %     17 %     17 %     22 %     37 %    
 
 
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4)
                                                   
Expenses excluding interest and fees
    0.95 %(5)     0.92 %     0.89 %     0.93 %     0.76 %     0.71 %(6)    
Interest and fee expense(7)
    0.08 %(5)     0.09 %     0.11 %     0.23 %     0.26 %     0.32 %    
Total expenses before custodian fee reduction
    1.03 %(5)     1.01 %     1.00 %     1.16 %     1.02 %     1.03 %(6)    
Expenses after custodian fee reduction excluding interest and fees
    0.95 %(5)     0.92 %     0.89 %     0.93 %     0.74 %     0.69 %(6)    
Net investment income
    4.13 %(5)     4.84 %     4.81 %     5.07 %     4.42 %     4.09 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    1,028       1,028       1,028       1,028       1,028       1,350      
Asset coverage per preferred share(8)
  $ 72,798     $ 69,295     $ 72,208     $ 73,719     $ 67,578     $ 67,980      
Involuntary liquidation preference per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
(3) Not annualized.
(4) Ratios do not reflect the effect of dividend payments to preferred shareholders.
(5) Annualized.
(6) The investment adviser was allocated a portion of the Fund’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower.
(7) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).
(8) Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.
(9) Plus accumulated and unpaid dividends.

 
See Notes to Financial Statements.
45


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Financial Highlights — continued
Selected data for a common share outstanding during the periods stated

 
                                                     
    Massachusetts Fund    
   
    Six Months Ended
  Year Ended September 30,    
    March 31, 2012
 
    (Unaudited)   2011   2010   2009   2008   2007    
 
Net asset value — Beginning of period (Common shares)
  $ 14.230     $ 14.710     $ 14.660     $ 12.130     $ 15.090     $ 15.640      
 
 
                                                     
                                                     
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.414     $ 0.876     $ 0.882     $ 0.901     $ 0.981     $ 0.969      
Net realized and unrealized gain (loss)
    0.734       (0.490 )     0.036       2.486       (2.981 )     (0.540 )    
Distributions to preferred shareholders(1)
                                                   
From net investment income
    (0.008 )     (0.026 )     (0.031 )     (0.099 )     (0.289 )     (0.293 )    
 
 
Total income (loss) from operations
  $ 1.140     $ 0.360     $ 0.887     $ 3.288     $ (2.289 )   $ 0.136      
 
 
                                                     
                                                     
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.420 )   $ (0.840 )   $ (0.837 )   $ (0.758 )   $ (0.671 )   $ (0.686 )    
 
 
Total distributions to common shareholders
  $ (0.420 )   $ (0.840 )   $ (0.837 )   $ (0.758 )   $ (0.671 )   $ (0.686 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 14.950     $ 14.230     $ 14.710     $ 14.660     $ 12.130     $ 15.090      
 
 
                                                     
Market value — End of period (Common shares)
  $ 15.510     $ 14.320     $ 15.160     $ 15.250     $ 13.780     $ 14.820      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    8.10 %(3)     3.06 %     6.43 %     28.42 %     (15.70 )%     0.88 %(4)    
 
 
                                                     
Total Investment Return on Market Value(2)
    11.45 %(3)     0.64 %     5.44 %     17.59 %     (2.46 )%     (3.72 )%(4)    
 
 
                                                     
                                                     

 
See Notes to Financial Statements.
46


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Financial Highlights — continued
Selected data for a common share outstanding during the periods stated

 
                                                     
    Massachusetts Fund    
   
    Six Months Ended
  Year Ended September 30,    
    March 31, 2012
 
Ratios/Supplemental Data   (Unaudited)   2011   2010   2009   2008   2007    
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 26,418     $ 25,134     $ 25,920     $ 25,771     $ 21,311     $ 26,476      
Ratios (as a percentage of average daily net assets applicable to common shares):(5)
                                                   
Expenses excluding interest and fees
    1.47 %(6)     1.54 %     1.45 %     1.69 %     1.41 %     1.25 %(7)    
Interest and fee expense(8)
    0.09 %(6)     0.11 %     0.09 %     0.23 %     0.71 %     0.98 %    
Total expenses before custodian fee reduction
    1.56 %(6)     1.65 %     1.54 %     1.92 %     2.12 %     2.23 %(7)    
Expenses after custodian fee reduction excluding interest and fees
    1.47 %(6)     1.54 %     1.45 %     1.68 %     1.38 %     1.25 %(7)    
Net investment income
    5.64 %(6)     6.60 %     6.29 %     7.41 %     6.83 %     6.27 %    
Portfolio Turnover
    2 %(3)     27 %     27 %     43 %     12 %     15 %    
 
 
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(5)
                                                   
Expenses excluding interest and fees
    0.96 %(6)     0.97 %     0.94 %     1.03 %     0.88 %     0.81 %(7)    
Interest and fee expense(8)
    0.06 %(6)     0.07 %     0.05 %     0.14 %     0.45 %     0.62 %    
Total expenses before custodian fee reduction
    1.02 %(6)     1.04 %     0.99 %     1.17 %     1.33 %     1.43 %(7)    
Expenses after custodian fee reduction excluding interest and fees
    0.96 %(6)     0.97 %     0.94 %     1.03 %     0.87 %     0.80 %(7)    
Net investment income
    3.70 %(6)     4.18 %     4.06 %     4.53 %     4.27 %     3.99 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    543       543       543       543       543       620      
Asset coverage per preferred share(9)
  $ 73,652     $ 71,288     $ 72,737     $ 72,462     $ 64,287     $ 67,711      
Involuntary liquidation preference per preferred share(10)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(10)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
(3) Not annualized.
(4) During the year ended September 30, 2007, the Fund realized a gain on the disposal of an investment security which did not meet investment guidelines. The gain was less than $0.01 per share and had no effect on total return.
(5) Ratios do not reflect the effect of dividend payments to preferred shareholders.
(6) Annualized.
(7) The investment adviser was allocated a portion of the Fund’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower.
(8) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).
(9) Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.
(10) Plus accumulated and unpaid dividends.

 
See Notes to Financial Statements.
47


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Financial Highlights — continued
Selected data for a common share outstanding during the periods stated

 
                                                     
    Michigan Fund    
   
    Six Months Ended
  Year Ended September 30,    
    March 31, 2012
 
    (Unaudited)   2011   2010   2009   2008   2007    
 
Net asset value — Beginning of period (Common shares)
  $ 14.040     $ 14.540     $ 14.730     $ 12.570     $ 15.150     $ 15.430      
 
 
                                                     
                                                     
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.438     $ 0.913     $ 0.928     $ 0.925     $ 0.975     $ 0.985      
Net realized and unrealized gain (loss)
    0.565       (0.496 )     (0.208 )     2.110       (2.590 )     (0.309 )    
Distributions to preferred shareholders(1)
                                                   
From net investment income
    (0.009 )     (0.030 )     (0.036 )     (0.113 )     (0.295 )     (0.288 )    
 
 
Total income (loss) from operations
  $ 0.994     $ 0.387     $ 0.684     $ 2.922     $ (1.910 )   $ 0.388      
 
 
                                                     
                                                     
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.444 )   $ (0.887 )   $ (0.874 )   $ (0.762 )   $ (0.670 )   $ (0.668 )    
 
 
Total distributions to common shareholders
  $ (0.444 )   $ (0.887 )   $ (0.874 )   $ (0.762 )   $ (0.670 )   $ (0.668 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 14.590     $ 14.040     $ 14.540     $ 14.730     $ 12.570     $ 15.150      
 
 
                                                     
Market value — End of period (Common shares)
  $ 15.050     $ 13.610     $ 14.430     $ 13.900     $ 10.400     $ 14.030      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    7.17 %(3)     3.25 %     5.16 %     25.29 %     (12.66 )%(4)     2.81 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    14.04 %(3)     0.85 %     10.60 %     42.90 %     (21.97 )%(4)     3.53 %    
 
 
                                                     
                                                     

 
See Notes to Financial Statements.
48


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Financial Highlights — continued
Selected data for a common share outstanding during the periods stated

 
                                                     
    Michigan Fund    
   
    Six Months Ended
  Year Ended September 30,    
    March 31, 2012
 
Ratios/Supplemental Data   (Unaudited)   2011   2010   2009   2008   2007    
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 22,076     $ 21,233     $ 21,985     $ 22,276     $ 19,007     $ 22,912      
Ratios (as a percentage of average daily net assets applicable to common shares):(5)
                                                   
Expenses excluding interest and fees
    1.55 %(6)     1.58 %     1.49 %     1.70 %     1.49 %     1.29 %(7)    
Interest and fee expense(8)
                            0.54 %     0.98 %    
Total expenses before custodian fee reduction
    1.55 %(6)     1.58 %     1.49 %     1.70 %     2.03 %     2.27 %(7)    
Expenses after custodian fee reduction excluding interest and fees
    1.55 %(6)     1.58 %     1.49 %     1.69 %     1.48 %     1.27 %(7)    
Net investment income
    6.09 %(6)     6.76 %     6.55 %     7.30 %     6.72 %     6.43 %    
Portfolio Turnover
    8 %(3)     5 %     2 %     9 %     11 %     6 %    
 
 
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(5)
                                                   
Expenses excluding interest and fees
    0.96 %(6)     0.96 %     0.92 %     1.00 %     0.93 %     0.81 %(7)    
Interest and fee expense(8)
                            0.33 %     0.62 %    
Total expenses before custodian fee reduction
    0.96 %(6)     0.96 %     0.92 %     1.00 %     1.26 %     1.43 %(7)    
Expenses after custodian fee reduction excluding interest and fees
    0.96 %(6)     0.96 %     0.92 %     1.00 %     0.92 %     0.80 %(7)    
Net investment income
    3.78 %(6)     4.09 %     4.04 %     4.30 %     4.16 %     4.06 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    533       533       533       533       540       540      
Asset coverage per preferred share(9)
  $ 66,419     $ 64,837     $ 66,248     $ 66,794     $ 60,199     $ 67,442      
Involuntary liquidation preference per preferred share(10)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(10)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
(3) Not annualized.
(4) During the year ended September 30, 2008, the investment adviser fully reimbursed the Fund for a realized loss on the disposal of an investment security which did not meet investment guidelines. The loss had no effect on total return.
(5) Ratios do not reflect the effect of dividend payments to preferred shareholders.
(6) Annualized.
(7) The investment adviser was allocated a portion of the Fund’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower.
(8) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).
(9) Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.
(10) Plus accumulated and unpaid dividends.

 
See Notes to Financial Statements.
49


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Financial Highlights — continued
Selected data for a common share outstanding during the periods stated

 
                                                     
    New Jersey Fund    
   
    Six Months Ended
  Year Ended September 30,    
    March 31, 2012
 
    (Unaudited)   2011   2010   2009   2008   2007    
 
Net asset value — Beginning of period (Common shares)
  $ 13.180     $ 14.410     $ 14.620     $ 11.980     $ 15.690     $ 15.840      
 
 
                                                     
                                                     
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.410     $ 0.895     $ 0.943     $ 0.926     $ 0.982     $ 0.996      
Net realized and unrealized gain (loss)
    0.880       (1.179 )     (0.207 )     2.740       (3.393 )     (0.150 )    
Distributions to preferred shareholders(1)
                                                   
From net investment income
    (0.008 )     (0.026 )     (0.031 )     (0.088 )     (0.196 )     (0.286 )    
From net realized gain
                      (0.016 )     (0.114 )          
 
 
Total income (loss) from operations
  $ 1.282     $ (0.310 )   $ 0.705     $ 3.562     $ (2.721 )   $ 0.560      
 
 
                                                     
                                                     
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.422 )   $ (0.920 )   $ (0.915 )   $ (0.819 )   $ (0.706 )   $ (0.710 )    
From net realized gain
                      (0.103 )     (0.283 )          
 
 
Total distributions to common shareholders
  $ (0.422 )   $ (0.920 )   $ (0.915 )   $ (0.922 )   $ (0.989 )   $ (0.710 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 14.040     $ 13.180     $ 14.410     $ 14.620     $ 11.980     $ 15.690      
 
 
                                                     
Market value — End of period (Common shares)
  $ 14.650     $ 13.370     $ 15.350     $ 14.730     $ 11.880     $ 14.790      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    9.85 %(3)     (1.80 )%     5.10 %     31.84 %     (18.15 )%     3.64 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    12.99 %(3)     (6.49 )%     11.12 %     33.95 %     (13.88 )%     (5.66 )%    
 
 
                                                     
                                                     

 
See Notes to Financial Statements.
50


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Financial Highlights — continued
Selected data for a common share outstanding during the periods stated

 
                                                     
    New Jersey Fund    
   
    Six Months Ended
  Year Ended September 30,    
    March 31, 2012
 
Ratios/Supplemental Data   (Unaudited)   2011   2010   2009   2008   2007    
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 36,509     $ 34,186     $ 37,222     $ 37,628     $ 30,776     $ 40,262      
Ratios (as a percentage of average daily net assets applicable to common shares):(4)
                                                   
Expenses excluding interest and fees
    1.39 %(5)     1.42 %     1.36 %     1.53 %     1.33 %     1.14 %(6)    
Interest and fee expense(7)
    0.12 %(5)     0.15 %     0.17 %     0.46 %     1.16 %     0.92 %    
Total expenses before custodian fee reduction
    1.51 %(5)     1.57 %     1.53 %     1.99 %     2.49 %     2.06 %(6)    
Expenses after custodian fee reduction excluding interest and fees
    1.39 %(5)     1.41 %     1.36 %     1.52 %     1.28 %     1.11 %(6)    
Net investment income
    6.01 %(5)     6.96 %     6.79 %     7.81 %     6.72 %     6.29 %    
Portfolio Turnover
    8 %(3)     4 %     8 %     39 %     48 %     27 %    
 
 
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4)
                                                   
Expenses excluding interest and fees
    0.89 %(5)     0.90 %     0.88 %     0.93 %     0.84 %     0.73 %(6)    
Interest and fee expense(7)
    0.08 %(5)     0.09 %     0.11 %     0.28 %     0.73 %     0.59 %    
Total expenses before custodian fee reduction
    0.97 %(5)     0.99 %     0.99 %     1.21 %     1.57 %     1.32 %(6)    
Expenses after custodian fee reduction excluding interest and fees
    0.89 %(5)     0.89 %     0.88 %     0.92 %     0.81 %     0.72 %(6)    
Net investment income
    3.87 %(5)     4.38 %     4.39 %     4.75 %     4.24 %     4.05 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    784       784       784       784       812       900      
Asset coverage per preferred share(8)
  $ 71,569     $ 68,605     $ 72,478     $ 72,996     $ 62,907     $ 69,751      
Involuntary liquidation preference per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
(3) Not annualized.
(4) Ratios do not reflect the effect of dividend payments to preferred shareholders.
(5) Annualized.
(6) The investment adviser was allocated a portion of the Fund’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower.
(7) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).
(8) Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.
(9) Plus accumulated and unpaid dividends.

 
See Notes to Financial Statements.
51


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Financial Highlights — continued
Selected data for a common share outstanding during the periods stated

 
                                                     
    New York Fund II    
   
    Six Months Ended
  Year Ended September 30,    
    March 31, 2012
 
    (Unaudited)   2011   2010   2009   2008   2007    
 
Net asset value — Beginning of period (Common shares)
  $ 12.760     $ 13.400     $ 13.620     $ 11.530     $ 15.240     $ 15.760      
 
 
                                                     
                                                     
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.404     $ 0.868     $ 0.847     $ 0.857     $ 0.938     $ 0.969      
Net realized and unrealized gain (loss)
    0.582       (0.621 )     (0.167 )     2.087       (3.483 )     (0.256 )    
Distributions to preferred shareholders(1)
                                                   
From net investment income
    (0.005 )     (0.018 )     (0.021 )     (0.066 )     (0.237 )     (0.209 )    
From net realized gain
                            (0.049 )     (0.079 )    
 
 
Total income (loss) from operations
  $ 0.981     $ 0.229     $ 0.659     $ 2.878     $ (2.831 )   $ 0.425      
 
 
                                                     
                                                     
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.421 )   $ (0.869 )   $ (0.879 )   $ (0.788 )   $ (0.699 )   $ (0.697 )    
From net realized gain
                            (0.180 )     (0.248 )    
 
 
Total distributions to common shareholders
  $ (0.421 )   $ (0.869 )   $ (0.879 )   $ (0.788 )   $ (0.879 )   $ (0.945 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 13.320     $ 12.760     $ 13.400     $ 13.620     $ 11.530     $ 15.240      
 
 
                                                     
Market value — End of period (Common shares)
  $ 13.640     $ 12.890     $ 14.000     $ 13.610     $ 10.580     $ 14.440      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    7.75 %(3)     2.16 %     5.20 %     26.71 %     (19.25 )%     3.00 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    9.23 %(3)     (1.21 )%     9.99 %     37.98 %     (21.80 )%     6.66 %    
 
 
                                                     
                                                     

 
See Notes to Financial Statements.
52


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Financial Highlights — continued
Selected data for a common share outstanding during the periods stated

 
                                                     
    New York Fund II    
   
    Six Months Ended
  Year Ended September 30,    
    March 31, 2012
 
Ratios/Supplemental Data   (Unaudited)   2011   2010   2009   2008   2007    
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 34,158     $ 32,717     $ 34,328     $ 34,847     $ 29,459     $ 38,947      
Ratios (as a percentage of average daily net assets applicable to common shares):(4)
                                                   
Expenses excluding interest and fees
    1.43 %(5)     1.47 %     1.41 %     1.51 %     1.33 %     1.16 %(6)    
Interest and fee expense(7)
    0.24 %(5)     0.28 %     0.28 %     0.63 %     0.46 %     0.46 %    
Total expenses before custodian fee reduction
    1.67 %(5)     1.75 %     1.69 %     2.14 %     1.79 %     1.62 %(6)    
Expenses after custodian fee reduction excluding interest and fees
    1.43 %(5)     1.46 %     1.41 %     1.50 %     1.28 %     1.14 %(6)    
Net investment income
    6.17 %(5)     7.07 %     6.49 %     7.67 %     6.67 %     6.24 %    
Portfolio Turnover
    8 %(3)     17 %     13 %     30 %     44 %     38 %    
 
 
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4)
                                                   
Expenses excluding interest and fees
    1.02 %(5)     1.03 %     1.01 %     1.03 %     0.83 %     0.74 %(6)    
Interest and fee expense(7)
    0.17 %(5)     0.20 %     0.20 %     0.43 %     0.29 %     0.29 %    
Total expenses before custodian fee reduction
    1.19 %(5)     1.23 %     1.21 %     1.46 %     1.12 %     1.03 %(6)    
Expenses after custodian fee reduction excluding interest and fees
    1.02 %(5)     1.02 %     1.01 %     1.02 %     0.80 %     0.73 %(6)    
Net investment income
    4.42 %(5)     4.98 %     4.65 %     5.24 %     4.17 %     3.98 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    530       530       530       530       530       900      
Asset coverage per preferred share(8)
  $ 89,449     $ 86,730     $ 89,770     $ 90,749     $ 80,583     $ 68,285      
Involuntary liquidation preference per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
(3) Not annualized.
(4) Ratios do not reflect the effect of dividend payments to preferred shareholders.
(5) Annualized.
(6) The investment adviser was allocated a portion of the Fund’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower.
(7) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).
(8) Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.
(9) Plus accumulated and unpaid dividends.

 
See Notes to Financial Statements.
53


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Financial Highlights — continued
Selected data for a common share outstanding during the periods stated

 
                                                     
    Ohio Fund    
   
    Six Months Ended
  Year Ended September 30,    
    March 31, 2012
 
    (Unaudited)   2011   2010   2009   2008   2007    
 
Net asset value — Beginning of period (Common shares)
  $ 12.220     $ 12.960     $ 12.980     $ 11.330     $ 14.970     $ 15.330      
 
 
                                                     
                                                     
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.383     $ 0.814     $ 0.828     $ 0.846     $ 0.948     $ 0.966      
Net realized and unrealized gain (loss)
    0.860       (0.759 )     (0.058 )     1.592       (3.665 )     (0.361 )    
Distributions to preferred shareholders(1)
                                                   
From net investment income
    (0.007 )     (0.023 )     (0.028 )     (0.101 )     (0.298 )     (0.301 )    
 
 
Total income (loss) from operations
  $ 1.236     $ 0.032     $ 0.742     $ 2.337     $ (3.015 )   $ 0.304      
 
 
                                                     
                                                     
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.386 )   $ (0.772 )   $ (0.762 )   $ (0.687 )   $ (0.625 )   $ (0.664 )    
 
 
Total distributions to common shareholders
  $ (0.386 )   $ (0.772 )   $ (0.762 )   $ (0.687 )   $ (0.625 )   $ (0.664 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 13.070     $ 12.220     $ 12.960     $ 12.980     $ 11.330     $ 14.970      
 
 
                                                     
Market value — End of period (Common shares)
  $ 14.070     $ 12.780     $ 14.100     $ 13.250     $ 11.250     $ 13.710      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    10.19 %(3)     0.65 %     6.04 %     22.05 %     (20.51 )%     2.17 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    13.43 %(3)     (3.25 )%     13.01 %     25.48 %     (13.81 )%     (1.75 )%    
 
 
                                                     
                                                     

 
See Notes to Financial Statements.
54


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Financial Highlights — continued
Selected data for a common share outstanding during the periods stated

 
                                                     
    Ohio Fund    
   
    Six Months Ended
  Year Ended September 30,    
    March 31, 2012
 
Ratios/Supplemental Data   (Unaudited)   2011   2010   2009   2008   2007    
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 33,102     $ 30,922     $ 32,726     $ 32,710     $ 28,495     $ 37,617      
Ratios (as a percentage of average daily net assets applicable to common shares):(4)
                                                   
Expenses excluding interest and fees
    1.37 %(5)     1.42 %     1.36 %     1.57 %     1.35 %     1.16 %(6)    
Interest and fee expense(7)
    0.01 %(5)     0.02 %     0.02 %     0.10 %     0.29 %     0.53 %    
Total expenses before custodian fee reduction
    1.38 %(5)     1.44 %     1.38 %     1.67 %     1.64 %     1.69 %(6)    
Expenses after custodian fee reduction excluding interest and fees
    1.37 %(5)     1.42 %     1.36 %     1.57 %     1.33 %     1.14 %(6)    
Net investment income
    6.04 %(5)     6.98 %     6.61 %     7.87 %     6.82 %     6.33 %    
Portfolio Turnover
    9 %(3)     10 %     11 %     18 %     22 %     30 %    
 
 
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4)
                                                   
Expenses excluding interest and fees
    0.89 %(5)     0.90 %     0.88 %     0.95 %     0.83 %     0.74 %(6)    
Interest and fee expense(7)
    0.01 %(5)     0.01 %     0.01 %     0.06 %     0.18 %     0.34 %    
Total expenses before custodian fee reduction
    0.90 %(5)     0.91 %     0.89 %     1.01 %     1.01 %     1.08 %(6)    
Expenses after custodian fee reduction excluding interest and fees
    0.89 %(5)     0.90 %     0.88 %     0.95 %     0.82 %     0.72 %(6)    
Net investment income
    3.95 %(5)     4.43 %     4.30 %     4.77 %     4.19 %     4.03 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    680       680       680       680       875       875      
Asset coverage per preferred share(8)
  $ 73,680     $ 70,474     $ 73,128     $ 73,104     $ 57,579     $ 67,991      
Involuntary liquidation preference per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
(3) Not annualized.
(4) Ratios do not reflect the effect of dividend payments to preferred shareholders.
(5) Annualized.
(6) The investment adviser was allocated a portion of the Fund’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower.
(7) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).
(8) Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.
(9) Plus accumulated and unpaid dividends.

 
See Notes to Financial Statements.
55


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Financial Highlights — continued
Selected data for a common share outstanding during the periods stated

 
                                                     
    Pennsylvania Fund    
   
    Six Months Ended
  Year Ended September 30,    
    March 31, 2012
 
    (Unaudited)   2011   2010   2009   2008   2007    
 
Net asset value — Beginning of period (Common shares)
  $ 13.180     $ 13.640     $ 13.900     $ 12.030     $ 15.270     $ 15.470      
 
 
                                                     
                                                     
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.418     $ 0.893     $ 0.878     $ 0.889     $ 0.995     $ 0.995      
Net realized and unrealized gain (loss)
    0.656       (0.460 )     (0.270 )     2.123       (3.047 )     (0.209 )    
Distributions to preferred shareholders(1)
                                                   
From net investment income
    (0.007 )     (0.025 )     (0.030 )     (0.071 )     (0.236 )     (0.291 )    
From net realized gain
                      (0.045 )     (0.076 )          
 
 
Total income (loss) from operations
  $ 1.067     $ 0.408     $ 0.578     $ 2.896     $ (2.364 )   $ 0.495      
 
 
                                                     
                                                     
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.437 )   $ (0.868 )   $ (0.838 )   $ (0.753 )   $ (0.693 )   $ (0.695 )    
From net realized gain
                      (0.273 )     (0.183 )          
 
 
Total distributions to common shareholders
  $ (0.437 )   $ (0.868 )   $ (0.838 )   $ (1.026 )   $ (0.876 )   $ (0.695 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 13.810     $ 13.180     $ 13.640     $ 13.900     $ 12.030     $ 15.270      
 
 
                                                     
Market value — End of period (Common shares)
  $ 13.800     $ 13.030     $ 14.230     $ 14.600     $ 13.400     $ 14.150      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    8.22 %(3)     3.63 %     4.53 %     27.36 %     (16.07 )%     3.44 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    9.38 %(3)     (1.79 )%     3.82 %     20.09 %     0.88 %     (1.28 )%    
 
 
                                                     
                                                     

 
See Notes to Financial Statements.
56


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Financial Highlights — continued
Selected data for a common share outstanding during the periods stated

 
                                                     
    Pennsylvania Fund    
   
    Six Months Ended
  Year Ended September 30,    
    March 31, 2012
 
Ratios/Supplemental Data   (Unaudited)   2011   2010   2009   2008   2007    
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 40,835     $ 38,972     $ 40,256     $ 40,956     $ 35,413     $ 44,955      
Ratios (as a percentage of average daily net assets applicable to common shares):(4)
                                                   
Expenses excluding interest and fees
    1.34 %(5)     1.41 %     1.36 %     1.52 %     1.30 %     1.15 %(6)    
Interest and fee expense(7)
    0.04 %(5)     0.08 %     0.07 %     0.17 %     1.03 %     0.83 %    
Total expenses before custodian fee reduction
    1.38 %(5)     1.49 %     1.43 %     1.69 %     2.33 %     1.98 %(6)    
Expenses after custodian fee reduction excluding interest and fees
    1.34 %(5)     1.40 %     1.36 %     1.51 %     1.28 %     1.12 %(6)    
Net investment income
    6.19 %(5)     7.19 %     6.67 %     7.80 %     6.86 %     6.45 %    
Portfolio Turnover
    7 %(3)     12 %     19 %     8 %     28 %     24 %    
 
 
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4)
                                                   
Expenses excluding interest and fees
    0.86 %(5)     0.88 %     0.87 %     0.91 %     0.81 %     0.73 %(6)    
Interest and fee expense(7)
    0.03 %(5)     0.05 %     0.05 %     0.10 %     0.64 %     0.53 %    
Total expenses before custodian fee reduction
    0.89 %(5)     0.93 %     0.92 %     1.01 %     1.45 %     1.26 %(6)    
Expenses after custodian fee reduction excluding interest and fees
    0.86 %(5)     0.88 %     0.87 %     0.90 %     0.80 %     0.71 %(6)    
Net investment income
    4.01 %(5)     4.51 %     4.28 %     4.68 %     4.26 %     4.10 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    869       869       869       869       1,040       1,040      
Asset coverage per preferred share(8)
  $ 71,991     $ 69,847     $ 71,327     $ 72,133     $ 59,091     $ 68,233      
Involuntary liquidation preference per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
(3) Not annualized.
(4) Ratios do not reflect the effect of dividend payments to preferred shareholders.
(5) Annualized.
(6) The investment adviser was allocated a portion of the Fund’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower.
(7) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).
(8) Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.
(9) Plus accumulated and unpaid dividends.

 
See Notes to Financial Statements.
57


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Notes to Financial Statements (Unaudited)

 
1 Significant Accounting Policies
 
Eaton Vance Municipal Bond Fund II (Municipal Fund II), Eaton Vance California Municipal Bond Fund II (California Fund II), Eaton Vance Massachusetts Municipal Bond Fund (Massachusetts Fund), Eaton Vance Michigan Municipal Bond Fund (Michigan Fund), Eaton Vance New Jersey Municipal Bond Fund (New Jersey Fund), Eaton Vance New York Municipal Bond Fund II (New York Fund II), Eaton Vance Ohio Municipal Bond Fund (Ohio Fund) and Eaton Vance Pennsylvania Municipal Bond Fund (Pennsylvania Fund), (each individually referred to as the Fund, and collectively, the Funds), are Massachusetts business trusts registered under the Investment Company Act of 1940, as amended (the 1940 Act), as non-diversified, closed-end management investment companies, except for Municipal Fund II, which is a diversified, closed-end management investment company. Each Fund seeks to provide current income exempt from regular federal income tax, including alternative minimum tax, and, in state specific funds, taxes in its specified state.
 
The following is a summary of significant accounting policies of the Funds. The policies are in conformity with accounting principles generally accepted in the United States of America.
 
A Investment Valuation — Debt obligations (including short-term obligations with a remaining maturity of more than sixty days) are generally valued on the basis of valuations provided by third party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, prices or yields of securities with similar characteristics, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Short-term obligations purchased with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates market value. Financial futures contracts are valued at the closing settlement price established by the board of trade or exchange on which they are traded. Interest rate swaps are normally valued using valuations provided by a third party pricing service. Such pricing service valuations are based on the present value of fixed and projected floating rate cash flows over the term of the swap contract. Future cash flows are discounted to their present value using swap rates provided by electronic data services or by broker/dealers. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of a Fund in a manner that 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 municipal obligations, which are exempt from regular federal income tax when received by each Fund, as exempt-interest dividends.
 
At September 30, 2011, the following Funds, for federal income tax purposes, had capital loss carryforwards which will reduce the respective Fund’s taxable income arising from future net realized gains on investment transactions, if any, to the extent permitted by the Internal Revenue Code, and thus will reduce the amount of distributions to shareholders, which would otherwise be necessary to relieve the Funds of any liability for federal income or excise tax. The amounts and expiration dates of the capital loss carryforwards are as follows:
 
                                     
    Municipal
  California
  Massachusetts
  Michigan
   
Expiration Date   Fund II   Fund II   Fund   Fund    
 
 
September 30, 2013
  $     $     $ 179,329     $ 384,407      
September 30, 2016
    658,427       52,500             1,883      
September 30, 2017
    2,011,041       1,365,711       94,578            
September 30, 2018
    11,539,291       3,330,399       1,054,999       579,696      
September 30, 2019
    1,277,303       1,539,887       225,669       515,704      
                                     
 
 
    $ 15,486,062     $ 6,288,497     $ 1,554,575     $ 1,481,690      
                                     
 
 
 

 
58


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Notes to Financial Statements (Unaudited) — continued

 
                                     
    New Jersey
  New York
  Ohio
  Pennsylvania
   
Expiration Date   Fund   Fund II   Fund   Fund    
 
 
September 30, 2013
  $     $     $ 321,978     $      
September 30, 2016
          41,818       83,319            
September 30, 2017
    244,927       1,233,356       1,620,085            
September 30, 2018
    2,060,337       1,545,637       3,381,936       1,949,047      
September 30, 2019
    1,369,694       1,548,104       669,118       925,899      
                                     
 
 
    $ 3,674,958     $ 4,368,915     $ 6,076,436     $ 2,874,946      
                                     
 
 
 
In addition, such capital loss carryforwards cannot be utilized prior to the utilization of new capital losses, if any, created after September 30, 2011.
 
Additionally, at September 30, 2011, the Municipal Fund II, California Fund II, Massachusetts Fund, Michigan Fund, New Jersey Fund, New York Fund II, Ohio Fund and Pennsylvania Fund had net capital losses of $7,531,552, $4,278,206, $1,148,638, $385,565, $1,622,131, $1,845,065, $640,569 and $970,585, respectively, attributable to security transactions incurred after October 31, 2010. These net capital losses are treated as arising on the first day of the Funds’ taxable year ending September 30, 2012.
 
As of March 31, 2012, the Funds had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each Fund files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.
 
D Expense Reduction — State Street Bank and Trust Company (SSBT) serves as custodian of the Funds. Pursuant to the respective custodian agreements, SSBT receives a fee reduced by credits, which are determined based on the average daily cash balance each Fund maintains with SSBT. All credit balances, if any, used to reduce each Fund’s custodian fees are reported as a reduction of expenses in the Statements of Operations.
 
E Legal Fees — Legal fees and other related expenses incurred as part of negotiations of the terms and requirement of capital infusions, or that are expected to result in the restructuring of, or a plan of reorganization for, an investment are recorded as realized losses. Ongoing expenditures to protect or enhance an investment are treated as operating expenses.
 
F Use of Estimates — The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.
 
G Indemnifications — Under each Fund’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to each Fund. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as a Fund) could be deemed to have personal liability for the obligations of the Fund. However, each Fund’s Declaration of Trust contains an express disclaimer of liability on the part of Fund shareholders and the By-laws provide that the Fund shall assume the defense on behalf of any Fund shareholders. Moreover, the By-laws also provide for indemnification out of Fund property of any shareholder held personally liable solely by reason of being or having been a shareholder for all loss or expense arising from such liability. Additionally, in the normal course of business, each Fund enters into agreements with service providers that may contain indemnification clauses. Each Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against each Fund that have not yet occurred.
 
H Floating Rate Notes Issued in Conjunction with Securities Held — The Funds may invest in residual interest bonds, also referred to as inverse floating rate securities, whereby a Fund may sell a variable or fixed rate bond to a broker for cash. At the same time, the Fund buys a residual interest in the assets and cash flows of a Special-Purpose Vehicle (the SPV), (which is generally organized as a trust), set up by the broker. The broker deposits a bond into the SPV with the same CUSIP number as the bond sold to the broker by the Fund, and which may have been, but is not required to be, the bond purchased from the Fund (the Bond). The SPV also issues floating rate notes (Floating Rate Notes) which are sold to third-parties. The residual interest bond held by a Fund gives the Fund the right (1) to cause the holders of the Floating Rate Notes to generally tender their notes at par, and (2) to have the broker transfer the Bond held by the SPV to the Fund, thereby terminating the SPV. Should the Fund exercise such right, it would generally pay the broker the par amount due on the Floating Rate Notes and exchange the residual interest bond for the underlying Bond. Pursuant to generally accepted accounting principles for transfers and servicing of financial assets and extinguishment of liabilities, the Funds account for the transaction described above as a secured borrowing by including the Bond in their Portfolio of Investments and the Floating Rate Notes as a liability under the caption “Payable for floating rate notes issued” in their Statement of Assets and Liabilities. The Floating Rate Notes have interest rates that generally reset weekly and their holders have the option to tender their notes to the broker for redemption at par at each reset date. Accordingly, the fair value of the payable for floating rate notes issued approximates its carrying value. Interest expense related to the Funds’ liability with respect to Floating Rate Notes is recorded as incurred. The SPV may be terminated by the Fund, as noted above, or by the broker upon the occurrence of certain termination events as defined in the trust agreement, such as a downgrade in the credit quality of the underlying Bond, bankruptcy of or payment failure by the issuer of the underlying Bond, the inability to remarket Floating Rate Notes that have been tendered due to insufficient buyers in the market, or the failure by the SPV to obtain renewal

 
59


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Notes to Financial Statements (Unaudited) — continued

 
of the liquidity agreement under which liquidity support is provided for the Floating Rate Notes up to one year. Structuring fees paid to the liquidity provider upon the creation of an SPV have been recorded as debt issuance costs and are being amortized as interest expense to the expected maturity of the related trust. Unamortized structuring fees related to a terminated SPV are recorded as a realized loss on extinguishment of debt. At March 31, 2012, the amounts of the Funds’ Floating Rate Notes and related interest rates and collateral were as follows:
 
                             
    Municipal
  California
  Massachusetts
   
    Fund II   Fund II   Fund    
 
 
Floating Rate Notes Outstanding
  $ 45,685,000     $ 9,885,000     $ 3,330,000      
Interest Rate or Range of Interest Rates (%)
    0.18 - 0.39       0.19 - 0.25       0.19 - 0.35      
Collateral for Floating Rate Notes Outstanding
  $ 55,097,328     $ 11,768,191     $ 4,445,057      
                             
 
 
 
                                     
    New Jersey
  New York
  Ohio
  Pennsylvania
   
    Fund   Fund II   Fund   Fund    
 
 
Floating Rate Notes Outstanding
  $ 4,790,000     $ 9,370,000     $ 250,000     $ 2,040,000      
Interest Rate or Range of Interest Rates (%)
    0.34 - 0.39       0.18 - 0.34       0.25 - 0.34       0.19 - 0.34      
Collateral for Floating Rate Notes Outstanding
  $ 6,377,675     $ 11,538,813     $ 528,215     $ 3,304,703      
                                     
 
 
 
For the six months ended March 31, 2012, the Funds’ average Floating Rate Notes outstanding and the average interest rate (annualized) including fees and amortization of deferred debt issuance costs were as follows:
 
                             
    Municipal
  California
  Massachusetts
   
    Fund II   Fund II   Fund    
 
 
Average Floating Rate Notes Outstanding
  $ 53,164,863     $ 9,885,000     $ 3,330,000      
Average Interest Rate
    0.68 %     0.62 %     0.70 %    
                             
 
 
 
                                     
    New Jersey
  New York
  Ohio
  Pennsylvania
   
    Fund   Fund II   Fund   Fund    
 
 
Average Floating Rate Notes Outstanding
  $ 4,790,000     $ 11,793,224     $ 250,000     $ 2,040,000      
Average Interest Rate
    0.90 %     0.68 %     0.99 %     0.81 %    
                                     
 
 
 
The Funds may enter into shortfall and forbearance agreements with the broker by which a Fund agrees to reimburse the broker, in certain circumstances, for the difference between the liquidation value of the Bond held by the SPV and the liquidation value of the Floating Rate Notes, as well as any shortfalls in interest cash flows. The Funds had no shortfalls as of March 31, 2012.
 
The Funds may also purchase residual interest bonds from brokers in a secondary market transaction without first owning the underlying bond. Such transactions are not required to be treated as secured borrowings. Shortfall agreements, if any, related to residual interest bonds purchased in a secondary market transaction are disclosed in the Portfolio of Investments.
 
The Funds’ investment policies and restrictions expressly permit investments in residual interest bonds. Such bonds typically offer the potential for yields exceeding the yields available on fixed rate bonds with comparable credit quality and maturity. These securities tend to underperform the market for fixed rate bonds in a rising long-term interest rate environment, but tend to outperform the market for fixed rate bonds when long-term interest rates decline. The value and income of residual interest bonds are generally more volatile than that of a fixed rate bond. The Funds’ investment policies do not allow the Funds to borrow money except as permitted by the 1940 Act. Management believes that the Funds’ restrictions on borrowing money and issuing senior securities (other than as specifically permitted) do not apply to Floating Rate Notes issued by the SPV and included as a liability in the Funds’ Statement of Assets and Liabilities. As secured indebtedness issued by an SPV, Floating Rate Notes are distinct from the borrowings and senior securities to which the Funds’ restrictions apply. Residual interest bonds held by the Funds are securities exempt from registration under Rule 144A of the Securities Act of 1933.

 
60


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Notes to Financial Statements (Unaudited) — continued

 
I Financial Futures Contracts — Upon entering into a financial futures contract, a Fund is required to deposit with the broker, either in cash or securities, an amount equal to a certain percentage of the purchase price (initial margin). Subsequent payments, known as variation margin, are made or received by the Fund each business day, depending on the daily fluctuations in the value of the underlying security, and are recorded as unrealized gains or losses by the Fund. Gains (losses) are realized upon the expiration or closing of the financial futures contracts. Should market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. Futures contracts have minimal counterparty risk as they are exchange traded and the clearinghouse for the exchange is substituted as the counterparty, guaranteeing counterparty performance.
 
J Interest Rate Swaps — Pursuant to interest rate swap agreements, a Fund makes periodic payments at a fixed interest rate and, in exchange, receives payments based on the interest rate of a benchmark industry index. Payments received or made are recorded as realized gains or losses. During the term of the outstanding swap agreement, changes in the underlying value of the swap are recorded as unrealized gains or losses. The value of the swap is determined by changes in the relationship between two rates of interest. A Fund is exposed to credit loss in the event of non-performance by the swap counterparty. Risk may also arise from movements in interest rates.
 
K When-Issued Securities and Delayed Delivery Transactions — The Funds may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. At the time the transaction is negotiated, the price of the security that will be delivered is fixed. The Funds maintain security positions for these commitments such that sufficient liquid assets will be available to make payments upon settlement. Securities purchased on a delayed delivery or when-issued basis are marked-to-market daily and begin earning interest on settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
 
L Statement of Cash Flows — The cash amount shown in the Statement of Cash Flows of a Fund is the amount included in the Fund’s Statement of Assets and Liabilities and represents the cash on hand at its custodian and does not include any short-term investments.
 
M Interim Financial Statements — The interim financial statements relating to March 31, 2012 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Funds’ management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.
 
2 Auction Preferred Shares
 
Each Fund issued Auction Preferred Shares (APS) on January 15, 2003 in a public offering. The underwriting discounts and other offering costs incurred in connection with the offering were recorded as a reduction of the paid-in capital of the common shares of each respective Fund. Dividends on the APS, which accrue daily, are cumulative at rates which are reset every seven days by an auction, unless a special dividend period has been set. If the APS auctions do not successfully clear, the dividend payment rate over the next period for the APS holders is set at a specified maximum applicable rate until such time as the APS auctions are successful. The maximum applicable rate on the APS is 110% (150% for taxable distributions) of the greater of the 1) “AA” Financial Composite Commercial Paper Rate or 2) Taxable Equivalent of the Short-Term Municipal Obligation Rate on the date of the auction. Series of APS are identical in all respects except for the reset dates of the dividend rates.
 
The APS are redeemable at the option of each Fund at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, on any dividend payment date. The APS are also subject to mandatory redemption at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, if a Fund is in default for an extended period on its asset maintenance requirements with respect to the APS. If the dividends on the APS remain unpaid in an amount equal to two full years’ dividends, the holders of the APS as a class have the right to elect a majority of the Board of Trustees. In general, the holders of the APS and the common shares have equal voting rights of one vote per share, except that the holders of the APS, as a separate class, have the right to elect at least two members of the Board of Trustees. The APS have a liquidation preference of $25,000 per share, plus accumulated and unpaid dividends. Each Fund is required to maintain certain asset coverage with respect to the APS as defined in the Funds’ By-laws and the 1940 Act. Each Fund pays an annual fee up to 0.15% of the liquidation value of the APS to broker/dealers as a service fee if the auctions are unsuccessful; otherwise, the annual fee is 0.25%.
 
3 Distributions to Shareholders
 
Each Fund intends to make monthly distributions of net investment income to common shareholders, after payment of any dividends on any outstanding APS. In addition, at least annually, each Fund intends to distribute all or substantially all of its net realized capital gains (reduced by available capital loss carryforwards from prior years, if any). Distributions to common shareholders are recorded on the ex-dividend date. Distributions to preferred shareholders

 
61


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Notes to Financial Statements (Unaudited) — continued

 
are recorded daily and are payable at the end of each dividend period. The dividend rates for APS at March 31, 2012, and the amount of dividends accrued (including capital gains, if any) to APS shareholders, average APS dividend rates (annualized), and dividend rate ranges for the six months then ended were as follows:
 
                                             
    Municipal
  Municipal
               
    Fund II
  Fund II
  California
  Massachusetts
  Michigan
   
    (Series A)   (Series B)   Fund II   Fund   Fund    
 
 
APS Dividend Rates at March 31, 2012
    0.27 %     0.24 %     0.27 %     0.27 %     0.27 %    
Dividends Accrued to APS Shareholders
  $ 22,571     $ 22,553     $ 25,956     $ 13,575     $ 13,159      
Average APS Dividend Rates
    0.20 %     0.20 %     0.20 %     0.20 %     0.20 %    
Dividend Rate Ranges (%)
    0.11 - 0.33       0.11 - 0.27       0.11 - 0.33       0.11 - 0.36       0.11 - 0.27      
                                             
 
 
 
                                     
    New Jersey
  New York
  Ohio
  Pennsylvania
   
    Fund   Fund II   Fund   Fund    
 
 
APS Dividend Rates at March 31, 2012
    0.26 %     0.27 %     0.24 %     0.27 %    
Dividends Accrued to APS Shareholders
  $ 20,351     $ 13,249     $ 17,154     $ 21,994      
Average APS Dividend Rates
    0.21 %     0.20 %     0.20 %     0.20 %    
Dividend Rate Ranges (%)
    0.11 - 0.36       0.11 - 0.27       0.11 - 0.27       0.11 - 0.36      
                                     
 
 
 
Beginning February 13, 2008 and consistent with the patterns in the broader market for auction-rate securities, the Funds’ APS auctions were unsuccessful in clearing due to an imbalance of sell orders over bids to buy the APS. As a result, the dividend rates of the APS were reset to the maximum applicable rates. The table above reflects such maximum dividend rates for each series as of March 31, 2012.
 
The Funds distinguish between distributions on a tax basis and a financial reporting basis. Accounting principles generally accepted in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.
 
4 Investment Adviser Fee and Other Transactions with Affiliates
 
The investment adviser fee is earned by Eaton Vance Management (EVM) as compensation for investment advisory services rendered to each Fund. The fee is computed at an annual rate of 0.55% of each Fund’s average weekly gross assets and is payable monthly. Average weekly gross assets include the principal amount of any indebtedness for money borrowed, including debt securities issued by a Fund, and the amount of any outstanding APS issued by the Fund. Pursuant to a fee reduction agreement with EVM, average weekly gross assets are calculated by adding to net assets the liquidation value of a Fund’s APS then outstanding and the amount payable by the Fund to floating rate note holders, such adjustment being limited to the value of the APS outstanding prior to any APS redemptions by the Fund. EVM also serves as the administrator of each Fund, but receives no compensation. For the six months ended March 31, 2012, the investment adviser fees were as follows:
 
                                     
    Municipal
  California
  Massachusetts
  Michigan
   
    Fund II   Fund II   Fund   Fund    
 
 
Investment Adviser Fee
  $ 578,939     $ 222,627     $ 113,748     $ 96,361      
                                     
 
 
                                     
                                     
    New Jersey
  New York
  Ohio
  Pennsylvania
   
    Fund   Fund II   Fund   Fund    
 
 
Investment Adviser Fee
  $ 159,251     $ 154,077     $ 135,594     $ 175,133      
                                     
 
 

 
62


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Notes to Financial Statements (Unaudited) — continued

 
Except for Trustees of the Funds who are not members of EVM’s organization, officers and Trustees receive remuneration for their services to the Funds out of the investment adviser fee. Trustees of the Funds who are not affiliated with the investment adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the six months ended March 31, 2012, no significant amounts have been deferred. Certain officers and Trustees of the Funds are officers of EVM.
 
5 Purchases and Sales of Investments
 
Purchases and sales of investments, other than short-term obligations, for the six months ended March 31, 2012 were as follows:
 
                                     
    Municipal
  California
  Massachusetts
  Michigan
   
    Fund II   Fund II   Fund   Fund    
 
 
Purchases
  $ 24,389,086     $ 9,140,863     $ 898,229     $ 2,572,116      
Sales
  $ 33,134,289     $ 9,587,061     $ 692,906     $ 2,686,191      
                                     
 
 
                                     
                                     
    New Jersey
  New York
  Ohio
  Pennsylvania
   
    Fund   Fund II   Fund   Fund    
 
 
Purchases
  $ 8,225,529     $ 4,442,298     $ 4,347,426     $ 4,415,186      
Sales
  $ 4,715,165     $ 6,962,168     $ 4,455,027     $ 5,742,439      
                                     
 
 
 
6 Common Shares of Beneficial Interest
 
Common shares issued pursuant to the Funds’ dividend reinvestment plan for the six months ended March 31, 2012 and the year ended September 30, 2011 were as follows:
 
                                     
    Municipal
  California
  Massachusetts
  Michigan
   
    Fund II   Fund II   Fund   Fund    
 
 
Six Months Ended March 31, 2012 (Unaudited)
    9,644       1,770       884       677      
Year Ended September 30, 2011
    19,997       6,283       3,205       372      
                                     
 
 
                                     
                                     
    New Jersey
  New York
  Ohio
  Pennsylvania
   
    Fund   Fund II   Fund   Fund    
 
 
Six Months Ended March 31, 2012 (Unaudited)
    5,857       1,074       2,396       1,150      
Year Ended September 30, 2011
    11,653       2,773       4,815       4,284      
                                     
 
 

 
63


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Notes to Financial Statements (Unaudited) — continued

 
7 Federal Income Tax Basis of Investments
 
The cost and unrealized appreciation (depreciation) of investments of each Fund at March 31, 2012, as determined on a federal income tax basis, were as follows:
 
                                     
    Municipal
  California
  Massachusetts
  Michigan
   
    Fund II   Fund II   Fund   Fund    
 
 
Aggregate cost
  $ 160,477,410     $ 68,203,861     $ 35,013,230     $ 31,726,414      
                                     
 
 
Gross unrealized appreciation
  $ 15,407,306     $ 6,228,268     $ 4,257,848     $ 2,689,233      
Gross unrealized depreciation
    (8,947,603 )     (1,432,816 )     (172,605 )     (160,985 )    
                                     
 
 
Net unrealized appreciation
  $ 6,459,703     $ 4,795,452     $ 4,085,243     $ 2,528,248      
                                     
 
 
                                     
                                     
    New Jersey
  New York
  Ohio
  Pennsylvania
   
    Fund   Fund II   Fund   Fund    
 
 
Aggregate cost
  $ 50,478,214     $ 42,423,393     $ 45,236,654     $ 57,590,805      
                                     
 
 
Gross unrealized appreciation
  $ 5,150,778     $ 4,133,499     $ 4,352,111     $ 3,475,799      
Gross unrealized depreciation
    (311,645 )     (250,240 )     (389,720 )     (498,469 )    
                                     
 
 
Net unrealized appreciation
  $ 4,839,133     $ 3,883,259     $ 3,962,391     $ 2,977,330      
                                     
 
 
 
8 Overdraft Advances
 
Pursuant to the respective custodian agreements, SSBT may, in its discretion, advance funds to the Funds to make properly authorized payments. When such payments result in an overdraft, the Funds are obligated to repay SSBT at the current rate of interest charged by SSBT for secured loans (currently, a rate above the Federal Funds rate). This obligation is payable on demand to SSBT. SSBT has a lien on a Fund’s assets to the extent of any overdraft. At March 31, 2012, Municipal Fund II, Michigan Fund and New Jersey Fund had payments due to SSBT pursuant to the foregoing arrangement of $5,844,112, $90,157 and $115,446, respectively.
 
9 Financial Instruments
 
The Funds may trade in financial instruments with off-balance sheet risk in the normal course of their investing activities. These financial instruments may include financial futures contracts and interest rate swaps and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment a Fund has in particular classes of financial instruments and do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered.

 
64


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Notes to Financial Statements (Unaudited) — continued

 
A summary of obligations under these financial instruments at March 31, 2012 is as follows:
 
                                         
Futures Contracts
                        Net
   
    Expiration
          Aggregate
      Unrealized
   
Fund   Month/Year   Contracts   Position   Cost   Value   Appreciation    
 
 
Municipal II
  6/12   35
U.S. 10-Year Treasury Note
  Short   $ (4,561,967 )   $ (4,531,953 )   $ 30,014      
    6/12   97
U.S. 30-Year Treasury Bond
  Short     (13,543,521 )     (13,361,750 )     181,771      
                                         
 
 
California II   6/12   25
U.S. 10-Year Treasury Note
  Short   $ (3,258,548 )   $ (3,237,109 )   $ 21,439      
    6/12   28
U.S. 30-Year Treasury Bond
  Short     (3,942,919 )     (3,857,000 )     85,919      
                                         
 
 
Massachusetts   6/12   14
U.S. 30-Year Treasury Bond
  Short   $ (1,971,460 )   $ (1,928,500 )   $ 42,960      
                                         
 
 
Michigan   6/12   10
U.S. 30-Year Treasury Bond
  Short   $ (1,393,701 )   $ (1,377,500 )   $ 16,201      
                                         
 
 
New Jersey   6/12   75
U.S. 30-Year Treasury Bond
  Short   $ (10,561,391 )   $ (10,331,250 )   $ 230,141      
                                         
 
 
New York II   6/12   22
U.S. 30-Year Treasury Bond
  Short   $ (3,098,008 )   $ (3,030,500 )   $ 67,508      
                                         
 
 
Ohio   6/12   10
U.S. 10-Year Treasury Note
  Short   $ (1,303,419 )   $ (1,294,843 )   $ 8,576      
    6/12   25
U.S. 30-Year Treasury Bond
  Short     (3,486,119 )     (3,443,750 )     42,369      
                                         
 
 
Pennsylvania   6/12   35
U.S. 30-Year Treasury Bond
  Short   $ (4,928,649 )   $ (4,821,250 )   $ 107,399      
                                         
 
 
 
At March 31, 2012, the Funds had sufficient cash and/or securities to cover commitments under these contracts.
 
Each Fund is subject to interest rate risk in the normal course of pursuing its investment objective. Because the Funds hold fixed-rate bonds, the value of these bonds may decrease if interest rates rise. To hedge against this risk, the Funds enter into interest rate swap contracts. The Funds also purchase and sell U.S. Treasury futures contracts to hedge against changes in interest rates.
 
The fair values of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) and whose primary underlying risk exposure is interest rate risk at March 31, 2012 were as follows:
 
                                     
    Municipal
  California
  Massachusetts
  Michigan
   
    Fund II   Fund II   Fund   Fund    
 
 
Asset Derivative:
                                   
Futures Contracts
  $ 211,785 (1)   $ 107,358 (1)   $ 42,960 (1)   $ 16,201 (1)    
                                     
 
 
Total
  $ 211,785     $ 107,358     $ 42,960     $ 16,201      
                                     
 
 
 

 
65


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Notes to Financial Statements (Unaudited) — continued

 
                                     
    New Jersey
  New York
  Ohio
  Pennsylvania
   
    Fund   Fund II   Fund   Fund    
 
 
Asset Derivative:
                                   
Futures Contracts
  $ 230,141 (1)   $ 67,508 (1)   $ 50,945 (1)   $ 107,399 (1)    
                                     
 
 
Total
  $ 230,141     $ 67,508     $ 50,945     $ 107,399      
                                     
 
 
 
(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 March 31, 2012 was as follows:
 
                                     
    Municipal
  California
  Massachusetts
  Michigan
   
    Fund II   Fund II   Fund   Fund    
 
 
Realized Gain (Loss) on Derivatives Recognized in Income
  $ (458,649 )(1)   $ (304,856 )(1)   $ (72,139 )(1)   $ (32,663 )(1)    
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
  $ 909,032 (2)   $ 543,323 (2)   $ 170,142 (2)   $ 95,523 (2)    
                                     
 
 
 
                                     
    New Jersey
  New York
  Ohio
  Pennsylvania
   
    Fund   Fund II   Fund   Fund    
 
 
Realized Gain (Loss) on Derivatives Recognized in Income
  $ (538,249 )(1)   $ (134,289 )(1)   $ (126,622 )(1)   $ (15,467 )(1)    
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
  $ 890,198 (2)   $ 343,858 (2)   $ 219,507 (2)   $ 164,801 (2)    
                                     
 
 
 
(1) Statement of Operations location: Net realized gain (loss) – Financial futures contracts and Swap contracts.
(2) Statement of Operations location: Change in unrealized appreciation (depreciation) – Financial futures contracts and Swap contracts.
 
The average notional amounts of futures contracts and interest rate swaps outstanding during the six months ended March 31, 2012, which are indicative of the volume of these derivative types, were approximately as follows:
 
                                     
    Municipal
  California
  Massachusetts
  Michigan
   
    Fund II   Fund II   Fund   Fund    
 
 
Average Notional Amount:
                                   
Futures Contracts
  $ 11,129,000     $ 5,300,000     $ 1,871,000     $ 729,000      
Interest Rate Swaps
  $ 429,000     $ 259,000     $ 123,000     $ 96,000      
                                     
 
 
 
                                     
    New Jersey
  New York
  Ohio
  Pennsylvania
   
    Fund   Fund II   Fund   Fund    
 
 
Average Notional Amount:
                                   
Futures Contracts
  $ 7,500,000     $ 2,971,000     $ 2,829,000     $ 3,357,000      
Interest Rate Swaps
  $ 179,000     $ 286,000     $ 107,000     $ 143,000      
                                     
 
 

 
66


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Notes to Financial Statements (Unaudited) — continued

 
10 Fair Value Measurements
 
Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
 
•  Level 1 – quoted prices in active markets for identical investments
 
•  Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
 
•  Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)
 
In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
 
At March 31, 2012, the hierarchy of inputs used in valuing the Funds’ investments and open derivative instruments, which are carried at value, were as follows:
 
                                     
Municipal Fund II
Asset Description   Level 1   Level 2   Level 3   Total    
 
 
Tax-Exempt Investments
  $     $ 212,622,113     $      —     $ 212,622,113      
                                     
 
 
Total Investments
  $     $ 212,622,113     $     $ 212,622,113      
                                     
 
 
Futures Contracts
  $ 211,785     $     $     $ 211,785      
                                     
 
 
Total
  $ 211,785     $ 212,622,113     $     $ 212,833,898      
                                     
 
 
                                     
                                     
California Fund II
Asset Description   Level 1   Level 2   Level 3   Total    
 
 
Tax-Exempt Investments
  $     $ 82,884,313     $     $ 82,884,313      
                                     
 
 
Total Investments
  $     $ 82,884,313     $     $ 82,884,313      
                                     
 
 
Futures Contracts
  $ 107,358     $     $     $ 107,358      
                                     
 
 
Total
  $ 107,358     $ 82,884,313     $     $ 82,991,671      
                                     
 
 
                                     
                                     
Massachusetts Fund
Asset Description   Level 1   Level 2   Level 3   Total    
 
 
Tax-Exempt Investments
  $     $ 42,428,473     $     $ 42,428,473      
                                     
 
 
Total Investments
  $     $ 42,428,473     $     $ 42,428,473      
                                     
 
 
Futures Contracts
  $ 42,960     $     $     $ 42,960      
                                     
 
 
Total
  $ 42,960     $ 42,428,473     $     $ 42,471,433      
                                     
 
 
                                     
                                     
Michigan Fund
Asset Description   Level 1   Level 2   Level 3   Total    
 
 
Tax-Exempt Investments
  $     $ 34,254,662     $     $ 34,254,662      
                                     
 
 
Total Investments
  $     $ 34,254,662     $     $ 34,254,662      
                                     
 
 
Futures Contracts
  $ 16,201     $     $     $ 16,201      
                                     
 
 
Total
  $ 16,201     $ 34,254,662     $     $ 34,270,863      
                                     
 
 
                                     
                                     

 
67


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Notes to Financial Statements (Unaudited) — continued

 
                                     
New Jersey Fund
Asset Description   Level 1   Level 2   Level 3   Total    
 
 
Tax-Exempt Investments
  $     $ 60,107,347     $     $ 60,107,347      
                                     
 
 
Total Investments
  $     $ 60,107,347     $     $ 60,107,347      
                                     
 
 
Futures Contracts
  $ 230,141     $     $     $ 230,141      
                                     
 
 
Total
  $ 230,141     $ 60,107,347     $     $ 60,337,488      
                                     
 
 
                                     
                                     
New York Fund II
Asset Description   Level 1   Level 2   Level 3   Total    
 
 
Tax-Exempt Investments
  $     $ 55,676,652     $     $ 55,676,652      
                                     
 
 
Total Investments
  $     $ 55,676,652     $     $ 55,676,652      
                                     
 
 
Futures Contracts
  $ 67,508     $     $     $ 67,508      
                                     
 
 
Total
  $ 67,508     $ 55,676,652     $     $ 55,744,160      
                                     
 
 
                                     
                                     
Ohio Fund
Asset Description   Level 1   Level 2   Level 3   Total    
 
 
Tax-Exempt Investments
  $     $ 49,449,045     $     $ 49,449,045      
                                     
 
 
Total Investments
  $     $ 49,449,045     $     $ 49,449,045      
                                     
 
 
Futures Contracts
  $ 50,945     $     $     $ 50,945      
                                     
 
 
Total
  $ 50,945     $ 49,449,045     $     $ 49,499,990      
                                     
 
 
                                     
                                     
Pennsylvania Fund
Asset Description   Level 1   Level 2   Level 3   Total    
 
 
Tax-Exempt Investments
  $     $ 62,608,135     $     $ 62,608,135      
                                     
 
 
Total Investments
  $     $ 62,608,135     $     $ 62,608,135      
                                     
 
 
Futures Contracts
  $ 107,399     $     $     $ 107,399      
                                     
 
 
Total
  $ 107,399     $ 62,608,135     $     $ 62,715,534      
                                     
 
 
 
The Funds held no investments or other financial instruments as of September 30, 2011 whose fair value was determined using Level 3 inputs. At March 31, 2012, the value of investments transferred between Level 1 and Level 2, if any, during the six months then ended was not significant.

 
68


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Notice to Shareholders

 
 
At the August 8, 2011 Board Meeting, the Trustees approved the following defensive investing policy: “During unusual market conditions, the Funds may invest up to 100% of assets in cash or cash equivalents temporarily, which may be inconsistent with a Fund’s investment objective(s) and other policies.”

 
69


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Officers and Trustees

 
     
Officers of Eaton Vance Municipal Bond Funds
 
 
Cynthia J. Clemson
President of EIA, MIW, NYH, EIO and EIP

Thomas M. Metzold
President of MAB, EIV and EMJ

Payson F. Swaffield
Vice President
 
Barbara E. Campbell
Treasurer

Maureen A. Gemma
Vice President, Secretary and Chief Legal Officer

Paul M. O’Neil
Chief Compliance Officer
 
     
Trustees of Eaton Vance Municipal Bond Funds
 
 
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
 
* Interested Trustee
 
 
Number of Employees
 
Each Fund is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a closed-end management investment company, and has no employees.
 
Number of Shareholders
 
As of March 31, 2012, Fund records indicate that there are 66, 25, 18, 24, 22, 36, 48 and 100 registered shareholders for Municipal Fund II, California Fund II, Massachusetts Fund, Michigan Fund, New Jersey Fund, New York Fund II, Ohio Fund and Pennsylvania Fund, respectively, and approximately 4,338, 1,296, 799, 818, 1,155, 1,053, 1,297 and 1,538 shareholders owning the Fund shares in street name, such as through brokers, banks and financial intermediaries for Municipal Fund II, California Fund II, Massachusetts Fund, Michigan Fund, New Jersey Fund, New York Fund II, Ohio Fund and Pennsylvania Fund, respectively.
 
If you are a street name shareholder and wish to receive Fund reports directly, which contain important information about a Fund, please write or call:
 
Eaton Vance Distributors, Inc.
Two International Place
Boston, MA 02110
1-800-262-1122
 
NYSE Amex symbols
 
 
     
Municipal Bond Fund II
  EIV
California Municipal Bond Fund II
  EIA
Massachusetts Municipal Bond Fund
  MAB
Michigan Municipal Bond Fund
  MIW
New Jersey Municipal Bond Fund
  EMJ
New York Municipal Bond Fund II
  NYH
Ohio Municipal Bond Fund
  EIO
Pennsylvania Municipal Bond Fund
  EIP

 
70


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
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:
 
•  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.
 
•  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.
 
•  Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information.
 
•  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.
 
Additional Notice to Shareholders. A Fund may redeem or purchase its outstanding auction preferred shares (APS) in order to maintain compliance with regulatory requirements, borrowing or rating agency requirements or for other purposes as it deems appropriate or necessary. A Fund also may purchase shares of its common stock in the open market when they trade at a discount to net asset value or at other times if the Fund determines such purchases are advisable. There can be no assurance that a Fund will take such action or that such purchases would reduce the discount.
 
Closed-End Fund Information. The Eaton Vance closed-end funds make certain quarterly fund performance data and information about portfolio characteristics (such as top holdings and asset allocation) available on the Eaton Vance website after the end of each calendar quarter-end. Certain month-end fund performance data for the funds, including total returns, are posted to the website shortly after the end of each calendar month. Portfolio holdings for the most recent calendar quarter-end are also posted to the website approximately 30 days following the end of the quarter. This information is available at www.eatonvance.com on the fund information pages under “Individual Investors – Closed-End Funds”.

 
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This Page Intentionally Left Blank
 


 

 
 
Investment Adviser and Administrator
Eaton Vance Management
Two International Place
Boston, MA 02110
 
Custodian
State Street Bank and Trust Company
200 Clarendon Street
Boston, MA 02116
 
Transfer Agent
American Stock Transfer & Trust Company
59 Maiden Lane
Plaza Level
New York, NY 10038
 
Fund Offices
Two International Place
Boston, MA 02110


 

 
 
(EATON VANCE INVESTMENT MANAGERS LOGO)
 
1557-5/12 CE-8IMBIISRC


 

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
The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the “Fund Policy”), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund’s investment adviser and adopted the investment adviser’s proxy voting policies and procedures (the “Policies”) which are described below. The Trustees will review the Fund’s proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board’s Special Committee except as contemplated under the Fund Policy. The Board’s Special Committee will instruct the investment adviser on the appropriate course of action.
The Policies are designed to promote accountability of a company’s management to its shareholders and to align the interests of management with those shareholders. An independent proxy voting service (“Agent”), currently Institutional Shareholder Services, Inc., has been retained to assist in the voting of proxies through the provision of vote analysis, implementation and recordkeeping and disclosure services. The investment adviser will generally vote proxies through the Agent. The Agent is required to vote all proxies and/or refer them back to the investment adviser pursuant to the Policies. It is generally the policy of the investment adviser to vote in accordance with the recommendation of the Agent. The Agent shall refer to the investment adviser proxies relating to mergers and restructurings, and the disposition of assets, termination, liquidation and mergers contained in mutual fund proxies. The investment adviser will normally vote against anti-takeover measures and other proposals designed to limit the ability of shareholders to act on possible transactions, except in the case of closed-end management investment companies. The investment adviser generally supports management on social and environmental proposals. The investment adviser may abstain from voting from time to time where it determines that the costs associated with voting a proxy outweighs the benefits derived from exercising the right to vote or the economic effect on shareholders interests or the value of the portfolio holding is indeterminable or insignificant.
In addition, the investment adviser will monitor situations that may result in a conflict of interest between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund by maintaining a list of significant existing and prospective corporate clients. The investment adviser’s personnel responsible for reviewing and voting proxies on behalf of the Fund will report any proxy received or expected to be received from a company included on that list to the personnel of the investment adviser identified in the Policies. If such personnel expects to

 


 

instruct the Agent to vote such proxies in a manner inconsistent with the guidelines of the Policies or the recommendation of the Agent, the personnel will consult with members of senior management of the investment adviser to determine if a material conflict of interests exists. If it is determined that a material conflict does exist, the investment adviser will seek instruction on how to vote from the Special Committee.
Information on how the Fund voted proxies relating to portfolio securities during the most recent 12 month period ended June 30 is available (1) without charge, upon request, by calling 1-800-262-1122, and (2) on the Securities and Exchange Commission’s website at http://www.sec.gov.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not required in this filing.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
No such purchases this period.
Item 10. Submission of Matters to a Vote of Security Holders
No Material Changes.
Item 11. Controls and Procedures
(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrant’s internal controls over financial reporting during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits
     
(a)(1)
  Registrant’s Code of Ethics — Not applicable (please see Item 2).
 
   
(a)(2)(i)
  Treasurer’s Section 302 certification.
 
   
(a)(2)(ii)
  President’s Section 302 certification.
 
   
(b)
  Combined Section 906 certification.

 


 

Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Eaton Vance California Municipal Bond Fund II
         
By:
  /s/ Cynthia J. Clemson
 
Cynthia J. Clemson
President
   
 
       
Date:
  May 8, 2012    
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/ Barbara E. Campbell
 
Barbara E. Campbell
Treasurer
   
 
       
Date:
  May 8, 2012    
 
       
By:
  /s/ Cynthia J. Clemson
 
Cynthia J. Clemson
President
   
 
       
Date:
  May 8, 2012