Eaton Vance Municipal Bond Fund
 
 
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: 811-21142
Eaton Vance Municipal Bond Fund
(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 (EIM) • California (EVM) • New York (ENX)
 
 
 
(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
       
 
       
Municipal Bond Fund
    2  
 
       
California Municipal Bond Fund
    3  
 
       
New York Municipal Bond Fund
    4  
 
       
 
       
Endnotes and Additional Disclosures
    5  
 
       
Financial Statements
    6  
 
       
Notice to Shareholders
    33  
Officers and Trustees
    34  
Important Notices
    35  

 


 

Eaton Vance
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     8/30/2002       8.92 %     32.42 %     3.79 %     6.20 %
 
Fund at Market Price
          8.77       22.50 %     3.06       6.00  
Barclays Capital Long (22+) Municipal Bond Index
    8/30/2002       5.88 %     19.97 %     4.83 %     5.62 %
 
                                       
% Premium/Discount to NAV
                                       
 
 
                                    -1.81 %
 
                                       
Distributions3                                        
 
 
                                       
Total Distributions per share for the period
                                    $0.419  
Distribution Rate at NAV
                                    6.01 %
Taxable-Equivalent Distribution Rate at NAV
                                    9.25 %
Distribution Rate at Market Price
                                    6.12 %
Taxable-Equivalent Distribution Rate at Market Price
                                    9.42 %
 
                                       
% Total Leverage4                                        
 
 
                                       
Residual Interest Bond (RIB)
                                    40.56 %
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
    12.3 %   BBB     8.8 %
AA
    64.3     BB     0.2  
A
    13.9     D     0.5  
 
                               
 
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.

2


 

Eaton Vance
California Municipal Bond Fund
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     8/30/2002       9.05 %     29.20 %     2.62 %     5.06 %
Fund at Market Price
          0.72       24.23 %     1.72       4.67  
Barclays Capital Long (22+) Municipal Bond Index
    8/30/2002       5.88 %     19.97 %     4.83 %     5.62 %
 
                                       
% Premium/Discount to NAV
                                       
 
 
                                    -3.47 %
 
                                       
Distributions3                                        
 
 
                                       
Total Distributions per share for the period
                                    $0.397  
Distribution Rate at NAV
                                    5.96 %
Taxable-Equivalent Distribution Rate at NAV
                                    10.22 %
Distribution Rate at Market Price
                                    6.18 %
Taxable-Equivalent Distribution Rate at Market Price
                                    10.60 %
 
                                       
% Total Leverage4                                        
 
 
                                       
RIB
                                    38.93 %
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
    19.5 %   BBB     5.1 %
AA
    50.3     BB     2.2  
A
    22.9              
 
                               
 
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
New York 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     8/30/2002       6.90 %     22.71 %     3.87 %     5.55 %
Fund at Market Price
          3.07       22.74 %     3.64       5.38  
Barclays Capital Long (22+) Municipal Bond Index
    8/30/2002       5.88 %     19.97 %     4.83 %     5.62 %
 
                                       
% Premium/Discount to NAV
                                       
 
 
                                    -1.54 %
 
                                       
Distributions3                                        
 
 
                                       
Total Distributions per share for the period
                                    $0.389  
Distribution Rate at NAV
                                    5.39 %
Taxable-Equivalent Distribution Rate at NAV
                                    9.09 %
Distribution Rate at Market Price
                                    5.48 %
Taxable-Equivalent Distribution Rate at Market Price
                                    9.25 %
 
                                       
% Total Leverage4                                        
 
 
                                       
RIB
                                    38.49 %
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
    17.2 %   BBB     7.7 %
AA
    52.8     Not Rated     2.2  
A
    20.1              
 
                               
 
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.

4


 

Eaton Vance
Municipal Income 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 California Municipal Bond Fund.
 
4 Fund employs RIB financing. The leverage created by RIB investments provides an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater 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 as of period end as a percentage of Fund net assets plus Floating Rate Notes.
 
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.

5


 

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

                     
Tax-Exempt Investments — 165.1%
 
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
 
Education — 15.4%
 
California Educational Facilities Authority, (University of Southern California), 5.25%, 10/1/38(1)
  $ 9,750     $ 10,874,467      
Connecticut Health and Educational Facilities Authority, (Wesleyan University), 5.00%, 7/1/39(1)
    14,700       16,074,891      
Houston, TX, Higher Education Finance Corp., (William Marsh Rice University), 5.00%, 5/15/35(1)
    15,000       17,003,850      
Massachusetts Health and Educational Facilities Authority, (Boston College), 5.50%, 6/1/27
    5,810       7,436,509      
Massachusetts Health and Educational Facilities Authority, (Boston College), 5.50%, 6/1/30
    8,325       10,516,806      
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, (Harvard University), 5.50%, 11/15/36
    8,790       10,547,297      
New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/40(1)
    15,300       16,783,641      
New York Dormitory Authority, (State University Educational Facilities), 4.00%, 5/15/28
    8,025       8,367,828      
North Carolina Capital Facilities Finance Agency, (Duke University), 5.00%, 10/1/38(1)
    13,500       15,018,210      
Tennessee School Bond Authority, 5.50%, 5/1/38
    5,000       5,720,100      
University of California, 5.25%, 5/15/39
    4,450       4,923,836      
University of Colorado, (University Enterprise Revenue), 5.25%, 6/1/36(1)
    10,000       11,391,500      
University of North Carolina at Charlotte, 5.00%, 4/1/32
    2,090       2,366,800      
 
 
            $ 139,279,335      
 
 
 
 
Electric Utilities — 1.3%
 
South Carolina Public Service Authority, (Santee Cooper), 5.50%, 1/1/38
  $ 7,110     $ 7,969,599      
Wyandotte County/Kansas City, KS, Unified Government Board of Public Utilities, 5.00%, 9/1/36
    3,425       3,715,303      
 
 
            $ 11,684,902      
 
 
 
 
General Obligations — 15.1%
 
Chicago Park District, IL, (Harbor Facilities), 5.25%, 1/1/37(1)
  $ 8,320     $ 9,052,326      
City & County of San Francisco, CA, (Earthquake Safety & Emergency Response), 4.00%, 6/15/27
    9,080       9,613,813      
Delaware Valley, PA, Regional Finance Authority, 5.75%, 7/1/32
    3,000       3,462,000      
Florida Board of Education, 5.00%, 6/1/31
    10,000       11,390,400      
Frisco, TX, Independent School District, (PSF Guaranteed), 5.00%, 8/15/37
    6,465       7,225,866      
Georgia, 5.00%, 7/1/29
    10,000       11,759,700      
Hawaii, 5.00%, 12/1/29
    7,620       8,845,525      
Hawaii, 5.00%, 12/1/30
    6,500       7,533,565      
Klein, TX, Independent School District, (PSF Guaranteed), 5.00%, 2/1/36(1)
    2,000       2,236,720      
Mississippi, (Capital Improvements Projects), 5.00%, 10/1/30(1)
    10,000       11,478,100      
New York, 5.00%, 12/15/30
    7,660       8,840,483      
New York, 5.00%, 2/15/36
    5,000       5,557,650      
North East Independent School District, TX, (PSF Guaranteed), 5.25%, 2/1/28
    2,000       2,519,000      
Northside Independent School District, TX, (PSF Guaranteed), 5.00%, 6/15/35
    180       197,719      
Northside Independent School District, TX, (PSF Guaranteed), 5.00%, 6/15/35(1)
    12,250       13,455,890      
Oregon, 5.00%, 8/1/35(1)
    6,750       7,656,592      
Oregon, 5.00%, 8/1/36
    2,000       2,265,180      
Pasadena, TX, Independent School District, (PSF Guaranteed), 5.00%, 2/15/35
    4,355       4,944,972      
Port of Houston Authority of Harris County, TX, 5.00%, 10/1/35
    7,500       8,560,950      
 
 
            $ 136,596,451      
 
 
 
 
Hospital — 7.3%
 
California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/27
  $ 1,000     $ 1,102,030      
California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/28
    1,770       1,940,805      
California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%, 8/15/39
    11,760       12,408,094      
California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/36
    4,215       4,388,447      
Camden County, NJ, Improvement Authority, (Cooper Health System), 5.00%, 2/15/35
    2,610       2,505,078      
Camden County, NJ, Improvement Authority, (Cooper Health System), 5.25%, 2/15/27
    1,860       1,873,429      
Camden County, NJ, Improvement Authority, (Cooper Health System), 5.75%, 2/15/34
    4,535       4,590,236      
Hawaii Department of Budget and Finance, (Hawaii Pacific Health), 5.60%, 7/1/33
    3,900       3,945,747      
Highlands County, FL, Health Facilities Authority, (Adventist Health System), 5.25%, 11/15/36
    7,190       7,551,801      
Knox County, TN, Health, Educational and Housing Facilities Board, (Covenant Health), 0.00%, 1/1/38
    8,310       2,166,417      
Knox County, TN, Health, Educational and Housing Facilities Board, (Covenant Health), 0.00%, 1/1/41
    10,000       2,204,300      
Lehigh County, PA, General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32
    8,165       8,362,185      

 
See Notes to Financial Statements.
6


 

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

                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
Hospital (continued)
 
                     
Michigan Hospital Finance Authority, (Henry Ford Health System), 5.25%, 11/15/46
  $ 5,355     $ 5,516,882      
South Miami, FL, Health Facilities Authority, (Baptist Health), 5.00%, 8/15/42
    100       103,444      
South Miami, FL, Health Facilities Authority, (Baptist Health), 5.00%, 8/15/42(1)
    900       930,996      
Tarrant County, TX, Cultural Education Facilities Finance Corp., (Scott & White Healthcare), 5.25%, 8/15/40
    6,105       6,458,357      
 
 
            $ 66,048,248      
 
 
 
 
Industrial Development Revenue — 0.5%
 
St. John Baptist Parish, LA, (Marathon Oil Corp.), 5.125%, 6/1/37
  $ 4,370     $ 4,519,891      
 
 
            $ 4,519,891      
 
 
 
 
Insured – Electric Utilities — 3.6%
 
American Municipal Power-Ohio, Inc., OH, (Prairie State Energy Campus), (AGC), 5.75%, 2/15/39
  $ 5,000     $ 5,589,600      
Long Island, NY, Power Authority, (BHAC), 5.50%, 5/1/33
    1,350       1,535,801      
Mississippi Development Bank, (Municipal Energy), (XLCA), 5.00%, 3/1/41
    13,895       13,909,173      
Paducah, KY, Electric Plant Board, (AGC), 5.25%, 10/1/35
    2,735       2,951,530      
South Carolina Public Service Authority, (Santee Cooper), (BHAC), 5.50%, 1/1/38
    7,840       8,802,830      
 
 
            $ 32,788,934      
 
 
 
 
Insured – Education — 3.0%
 
Massachusetts Development Finance Agency, (College of the Holy Cross), (AMBAC), 5.25%, 9/1/32
  $ 14,400     $ 18,066,528      
Miami-Dade County, FL, Educational Facilities Authority, (University of Miami), (AMBAC), (BHAC), 5.00%, 4/1/31
    7,865       8,509,773      
 
 
            $ 26,576,301      
 
 
 
 
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
  $ 525     $ 628,829      
 
 
            $ 628,829      
 
 
 
 
Insured – General Obligations — 12.9%
 
Cincinnati, OH, City School District, (AGM), (FGIC), 5.25%, 12/1/30
  $ 3,750     $ 4,658,475      
Clark County, NV, (AMBAC), 2.50%, 11/1/36
    11,845       8,813,272      
Frisco, TX, Independent School District, (AGM), (PSF Guaranteed), 2.75%, 8/15/39
    9,755       8,190,591      
Frisco, TX, Independent School District, (AGM), (PSF Guaranteed), 4.00%, 8/15/40
    1,010       1,013,788      
Kane, Cook and DuPage Counties, IL, School District No. 46, (AMBAC), 0.00%, 1/1/21
    13,865       10,132,819      
Kane, Cook and DuPage Counties, IL, School District No. 46, (AMBAC), 0.00%, 1/1/22
    49,750       34,578,737      
King County, WA, Public Hospital District No. 1, (AGC), 5.00%, 12/1/37(1)
    7,000       7,408,380      
Palm Springs, CA, Unified School District, (AGC), 5.00%, 8/1/32
    8,955       9,887,126      
Port Arthur, TX, Independent School District, (AGC), 4.75%, 2/15/38
    95       100,813      
Port Arthur, TX, Independent School District, (AGC), 4.75%, 2/15/38(1)
    10,950       11,620,030      
Schaumburg, IL, (BHAC), (FGIC), 5.00%, 12/1/38(1)
    12,750       13,256,175      
Yuma and La Paz Counties, AZ, Community College District, (Arizona Western College), (NPFG), 3.75%, 7/1/31
    7,015       7,029,732      
 
 
            $ 116,689,938      
 
 
 
 
Insured – Hospital — 17.1%
 
Arizona Health Facilities Authority, (Banner Health), (BHAC), 5.375%, 1/1/32
  $ 8,250     $ 8,877,742      
California Statewide Communities Development Authority, (Sutter Health), (AGM), 5.05%, 8/15/38(1)
    11,000       11,458,370      
Centre County, PA, Hospital Authority, (Mount Nittany Medical Center), (AGC), 6.125%, 11/15/39
    3,950       4,138,494      
Centre County, PA, Hospital Authority, (Mount Nittany Medical Center), (AGC), 6.25%, 11/15/44
    1,050       1,101,713      
Colorado Health Facilities Authority, (Catholic Health), (AGM), 5.10%, 10/1/41(1)
    11,500       11,990,360      
Highlands County, FL, Health Facilities Authority, (Adventist Health System), (BHAC), 5.25%, 11/15/36(1)
    15,500       16,704,660      
Highlands County, FL, Health Facilities Authority, (Adventist Health System), (NPFG), 5.00%, 11/15/35
    3,795       3,931,430      
Illinois Finance Authority, (Children’s Memorial Hospital), (AGC), 5.25%, 8/15/47(1)
    15,000       15,707,244      
Indiana Health and Educational Facility Finance Authority, (Sisters of St. Francis Health Services), (AGM), 5.25%, 5/15/41(1)
    2,500       2,622,475      
Iowa Finance Authority, Health Facilities, (Iowa Health System), (AGC), 5.625%, 8/15/37
    2,625       2,862,589      
Maricopa County, AZ, Industrial Development Authority, (Catholic Healthcare West), (BHAC), 5.25%, 7/1/32
    1,675       1,838,112      

 
See Notes to Financial Statements.
7


 

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

                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
Insured – Hospital (continued)
 
                     
Maryland Health and Higher Educational Facilities Authority, (LifeBridge Health), (AGC), 4.75%, 7/1/47(1)
  $ 19,150     $ 19,395,503      
New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), (AGC), 5.25%, 1/1/36(1)
    5,250       5,557,650      
New Jersey Health Care Facilities Financing Authority, (Meridian Health System), Series II, (AGC), 5.00%, 7/1/38
    555       579,625      
New Jersey Health Care Facilities Financing Authority, (Meridian Health System), Series V, (AGC), 5.00%, 7/1/38
    235       245,427      
New Jersey Health Care Facilities Financing Authority, (Meridian Health System), Series V, (AGC), 5.00%, 7/1/38(1)
    3,500       3,655,295      
New Jersey Health Care Facilities Financing Authority, (Virtua Health), (AGC), 5.50%, 7/1/38
    13,115       14,200,397      
Washington Health Care Facilities Authority, (MultiCare Health System), (AGC), 6.00%, 8/15/39
    5,795       6,520,360      
Washington Health Care Facilities Authority, (Providence Health Care), Series C, (AGM), 5.25%, 10/1/33(1)
    8,700       9,372,771      
Washington Health Care Facilities Authority, (Providence Health Care), Series D, (AGM), 5.25%, 10/1/33(1)
    12,605       13,591,844      
 
 
            $ 154,352,061      
 
 
 
 
Insured – Industrial Development Revenue — 1.1%
 
Pennsylvania Economic Development Financing Authority, (Aqua Pennsylvania, Inc. Project), (BHAC), 5.00%, 10/1/39(1)
  $ 9,000     $ 9,775,800      
 
 
            $ 9,775,800      
 
 
 
 
Insured – Lease Revenue / Certificates of Participation — 9.9%
 
Hudson Yards Infrastructure Corp., NY, (NPFG), 4.50%, 2/15/47
  $ 3,085     $ 3,018,395      
New Jersey Economic Development Authority, (School Facilities Construction), (AGC), 5.50%, 12/15/34
    2,910       3,213,949      
San Diego County, CA, Water Authority, Certificates of Participation, (AGM), 5.00%, 5/1/38(1)
    24,000       25,692,240      
San Jose, CA, Financing Authority, (Civic Center), (AMBAC), (BHAC), 5.00%, 6/1/37(1)
    42,750       43,007,355      
Tri-Creek Middle School Building Corp., IN, (AGM), 5.25%, 1/15/34(1)
    13,000       13,921,310      
 
 
            $ 88,853,249      
 
 
 
 
Insured – Other Revenue — 4.2%
 
Golden State Tobacco Securitization Corp., CA, (AGC), 5.00%, 6/1/45(1)
  $ 25,875     $ 26,141,254      
Harris County-Houston, TX, Sports Authority, (NPFG), 0.00%, 11/15/34
    16,795       4,064,726      
New York, NY, Industrial Development Agency, (Yankee Stadium), (AGC), 7.00%, 3/1/49
    6,750       7,889,872      
 
 
            $ 38,095,852      
 
 
 
 
Insured – Solid Waste — 0.6%
 
Palm Beach County, FL, Solid Waste Authority, (BHAC), 5.00%, 10/1/24
  $ 2,760     $ 3,225,253      
Palm Beach County, FL, Solid Waste Authority, (BHAC), 5.00%, 10/1/26
    1,575       1,807,439      
 
 
            $ 5,032,692      
 
 
 
 
Insured – Special Tax Revenue — 7.4%
 
Alabama Public School and College Authority, (AGM), 2.50%, 12/1/27
  $ 17,940     $ 16,476,814      
Houston, TX, Hotel Occupancy Tax, (AMBAC), 0.00%, 9/1/24
    18,035       9,972,453      
Jacksonville, FL, Excise Tax, (FGIC), (NPFG), 5.125%, 10/1/27
    1,175       1,196,244      
Miami-Dade County, FL, Professional Sports Franchise Facilities, (AGC), 7.00%, (0.00% until 10/1/19), 10/1/39
    15,000       11,512,650      
Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54
    96,650       7,627,618      
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
    54,710       8,369,536      
Utah Transportation Authority, Sales Tax Revenue, (AGM), 4.75%, 6/15/32(1)
    10,800       11,656,331      
 
 
            $ 66,811,646      
 
 
 
 
Insured – Student Loan — 1.1%
 
Maine Educational Loan Authority, (AGC), 5.625%, 12/1/27
  $ 8,755     $ 9,620,519      
 
 
            $ 9,620,519      
 
 
 
 
Insured – Transportation — 20.8%
 
Chicago, IL, (O’Hare International Airport), (AGM), 4.75%, 1/1/34(1)
  $ 21,640     $ 22,325,122      
Clark County, NV, (Las Vegas-McCarran International Airport), (AGM), 5.25%, 7/1/39
    8,080       8,710,725      
Director of the State of Nevada Department of Business and Industry, (Las Vegas Monorail), (AMBAC), 0.00%, 1/1/23(2)
    10,070       1,032,175      

 
See Notes to Financial Statements.
8


 

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

                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
Insured – Transportation (continued)
 
                     
Director of the State of Nevada Department of Business and Industry, (Las Vegas Monorail), (AMBAC), 0.00%, 1/1/28(2)
  $ 3,100     $ 235,600      
Director of the State of Nevada Department of Business and Industry, (Las Vegas Monorail), (AMBAC), 5.375%, 1/1/40(2)
    15,000       3,225,000      
E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/21
    10,200       6,979,962      
E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/39
    25,000       4,305,500      
Harris County, TX, Toll Road, Senior Lien, (BHAC), (NPFG), 5.00%, 8/15/33(1)
    7,800       8,781,084      
Manchester, NH, (Manchester-Boston Regional Airport), (AGM), 5.125%, 1/1/30
    6,710       7,195,536      
Maryland Transportation Authority, (AGM), 5.00%, 7/1/35(1)
    20,995       22,927,378      
Maryland Transportation Authority, (AGM), 5.00%, 7/1/36(1)
    14,000       15,239,140      
Metropolitan Washington, D.C., Airports Authority, (BHAC), 5.00%, 10/1/29
    1,785       1,951,094      
New Jersey Transportation Trust Fund Authority, (AGC), 5.50%, 12/15/38
    11,700       12,856,428      
North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), 5.50%, 1/1/29
    1,015       1,124,823      
North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), 5.75%, 1/1/39
    1,160       1,286,614      
North Texas Tollway Authority, (BHAC), 5.75%, 1/1/48(1)
    20,000       22,413,800      
Port Authority of New York and New Jersey, (AGM), 5.00%, 8/15/26(1)
    10,000       11,009,100      
Port Palm Beach District, FL, (XLCA), 0.00%, 9/1/24
    1,605       725,203      
Port Palm Beach District, FL, (XLCA), 0.00%, 9/1/25
    1,950       815,821      
Port Palm Beach District, FL, (XLCA), 0.00%, 9/1/26
    1,000       386,260      
San Joaquin Hills, CA, Transportation Corridor Agency, (Toll Road Bonds), (NPFG), 0.00%, 1/15/25
    26,215       11,438,129      
Texas Turnpike Authority, (AMBAC), 0.00%, 8/15/20
    23,845       17,387,297      
Texas Turnpike Authority, (Central Texas Turnpike System), (AMBAC), 5.00%, 8/15/42
    5,475       5,475,493      
 
 
            $ 187,827,284      
 
 
 
 
Insured – Water and Sewer — 21.2%
 
Austin, TX, Water and Wastewater, (AGM), (BHAC), 5.00%, 11/15/33(1)
  $ 2,000     $ 2,213,000      
Bossier City, LA, Utilities Revenue, (BHAC), 5.25%, 10/1/26
    3,185       3,574,908      
Bossier City, LA, Utilities Revenue, (BHAC), 5.25%, 10/1/27
    1,985       2,215,776      
Bossier City, LA, Utilities Revenue, (BHAC), 5.50%, 10/1/38
    3,170       3,452,193      
Chicago, IL, Wastewater Transmission Revenue, (BHAC), 5.50%, 1/1/38
    3,060       3,335,431      
Chicago, IL, Wastewater Transmission Revenue, (NPFG), 0.00%, 1/1/23
    13,670       8,840,389      
DeKalb County, GA, Water and Sewer, (AGM), 5.25%, 10/1/32(1)
    10,000       11,684,600      
District of Columbia Water and Sewer Authority, (AGC), 5.00%, 10/1/34(1)
    8,500       9,295,260      
Houston, TX, Utility System, (AGM), (BHAC), 5.00%, 11/15/33(1)
    27,570       30,306,300      
Los Angeles, CA, Department of Water and Power, (BHAC), (FGIC), 5.00%, 7/1/43(1)
    53,500       54,031,255      
Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/32
    5,540       7,002,560      
Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/38
    1,070       1,371,954      
Massachusetts Water Resources Authority, (AMBAC), (BHAC), 4.00%, 8/1/40
    9,095       9,100,002      
New York, NY, Municipal Water Finance Authority, (BHAC), 5.75%, 6/15/40(1)
    9,500       11,064,080      
San Luis Obispo County, CA, (Nacimiento Water Project), (NPFG), 4.50%, 9/1/40
    3,535       3,578,127      
Seattle, WA, Drain and Wastewater Revenue, (AGM), 5.00%, 6/1/38(1)
    27,670       29,739,161      
 
 
            $ 190,804,996      
 
 
 
 
Lease Revenue / Certificates of Participation — 1.6%
 
Hudson Yards Infrastructure Corp., NY, 5.75%, 2/15/47
  $ 2,565     $ 2,874,031      
North Carolina, Capital Improvement Limited Obligation, 5.00%, 5/1/30
    10,335       11,787,068      
 
 
            $ 14,661,099      
 
 
 
 
Other Revenue — 2.5%
 
New York, NY, Transitional Finance Authority, Building Aid Revenue, 5.00%, 7/15/36(1)
  $ 10,750     $ 11,862,088      
Oregon Department of Administrative Services, Lottery Revenue, 5.25%, 4/1/30
    9,200       10,818,556      
 
 
            $ 22,680,644      
 
 
 
 
Special Tax Revenue — 1.9%
 
Michigan Trunk Line Fund, 5.00%, 11/15/30
  $ 1,390     $ 1,566,947      
Michigan Trunk Line Fund, 5.00%, 11/15/31
    1,500       1,683,105      
Michigan Trunk Line Fund, 5.00%, 11/15/33
    1,285       1,435,178      
Michigan Trunk Line Fund, 5.00%, 11/15/36
    1,020       1,136,566      
New York Urban Development Corp., Personal Income Tax Revenue, 5.00%, 3/15/31
    10,000       11,338,100      
 
 
            $ 17,159,896      
 
 
 

 
See Notes to Financial Statements.
9


 

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

                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
Senior Living / Life Care — 0.2%
 
Maryland Health and Higher Educational Facilities Authority, (Charlestown Community, Inc.), 6.125%, 1/1/30
  $ 1,175     $ 1,322,192      
 
 
            $ 1,322,192      
 
 
 
 
Transportation — 9.4%
 
Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/35
  $ 8,275     $ 8,841,341      
Los Angeles, CA, Department of Airports, (Los Angeles International Airport), 5.25%, 5/15/28
    3,285       3,739,414      
Metropolitan Transportation Authority, NY, 5.25%, 11/15/38
    4,640       5,078,016      
Metropolitan Transportation Authority, NY, 5.25%, 11/15/40
    6,735       7,341,150      
Miami-Dade County, FL, (Miami International Airport), 5.00%, 10/1/41
    10,940       11,532,401      
New Jersey Transportation Trust Fund Authority, (Transportation System), 5.00%, 12/15/24
    10,000       11,795,800      
Orlando-Orange County, FL, Expressway Authority, 5.00%, 7/1/35
    2,915       3,131,789      
Orlando-Orange County, FL, Expressway Authority, 5.00%, 7/1/40
    2,590       2,769,435      
Pennsylvania Turnpike Commission, 6.00%, (0.00% until 12/1/15), 12/1/34
    5,000       4,544,850      
Port Authority of New York and New Jersey, 4.00%, 7/15/32
    10,505       10,705,120      
Port Authority of New York and New Jersey, 4.75%, 7/15/31
    4,300       4,627,402      
Port Authority of New York and New Jersey, 5.00%, 7/15/39
    5,000       5,514,650      
Triborough Bridge and Tunnel Authority, NY, 5.00%, 11/15/33
    5,000       5,501,200      
 
 
            $ 85,122,568      
 
 
 
 
Water and Sewer — 6.9%
 
California Department of Water Resources, (Central Valley Project), 5.25%, 12/1/35(1)
  $ 10,000     $ 11,536,800      
Charleston, SC, Waterworks and Sewer Revenue, 5.00%, 1/1/35
    2,735       3,093,613      
Honolulu, HI, City and County Wastewater System, 5.25%, 7/1/36(1)
    9,750       11,142,007      
King County, WA, Sewer Revenue, 5.00%, 1/1/34(1)
    10,000       11,149,900      
Marco Island, FL, Utility System, 5.00%, 10/1/34
    1,445       1,556,381      
Marco Island, FL, Utility System, 5.00%, 10/1/40
    6,325       6,765,346      
New York Municipal Water Finance Authority, 5.00%, 6/15/34
    10,000       11,100,900      
Portland, OR, Water System, 5.00%, 5/1/36
    5,385       6,046,763      
 
 
            $ 62,391,710      
 
 
     
Total Tax-Exempt Investments — 165.1%
   
(identified cost $1,417,295,225)
  $ 1,489,325,037      
 
 
             
Other Assets, Less Liabilities — (65.1)%
  $ (587,103,048 )    
 
 
             
Net Assets — 100.0%
  $ 902,221,989      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
 
     
AGC
 
- Assured Guaranty Corp.
AGM
 
- Assured Guaranty Municipal Corp.
AMBAC
 
- AMBAC Financial Group, Inc.
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 and territories, determined as a percentage of total investments is as follows:
 
         
California
    16.5%  
Texas
    12.4%  
New York
    10.1%  
Others, representing less than 10% individually
    61.0%  
 
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, 62.3% 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 1.1% to 20.2% 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.

 
See Notes to Financial Statements.
10


 

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

 
 
                     
Tax-Exempt Investments — 164.3%
 
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
 
Education — 15.5%
 
California Educational Facilities Authority, (California Institute of Technology), 5.00%, 11/1/39(1)
  $ 10,000     $ 11,093,400      
California Educational Facilities Authority, (Claremont McKenna College), 5.00%, 1/1/27
    2,680       2,976,864      
California Educational Facilities Authority, (Harvey Mudd College), 5.25%, 12/1/31
    550       613,294      
California Educational Facilities Authority, (Harvey Mudd College), 5.25%, 12/1/36
    940       1,033,013      
California Educational Facilities Authority, (Loyola Marymount University), 5.00%, 10/1/22
    395       453,839      
California Educational Facilities Authority, (Loyola Marymount University), 5.00%, 10/1/23
    365       415,644      
California Educational Facilities Authority, (Loyola Marymount University), 5.00%, 10/1/30
    1,375       1,475,801      
California Educational Facilities Authority, (Santa Clara University), 5.00%, 2/1/29
    3,630       4,088,941      
California Educational Facilities Authority, (University of San Francisco), 6.125%, 10/1/36
    650       769,424      
California Educational Facilities Authority, (University of Southern California), 5.25%, 10/1/39
    6,200       6,918,146      
California Educational Facilities Authority, (University of the Pacific), 5.00%, 11/1/30
    1,790       1,929,083      
California Municipal Finance Authority, (University of San Diego), 5.00%, 10/1/31
    1,175       1,256,110      
California Municipal Finance Authority, (University of San Diego), 5.00%, 10/1/35
    800       843,624      
California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/26
    2,270       2,544,920      
California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/27
    2,395       2,663,767      
California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/28
    2,520       2,784,827      
 
 
            $ 41,860,697      
 
 
 
 
Electric Utilities — 4.5%
 
California Department of Water Resources System, Electric Revenue, 5.00%, 5/1/22
  $ 2,700     $ 3,239,244      
Puerto Rico Electric Power Authority, 5.25%, 7/1/29
    3,905       4,169,954      
Southern California Public Power Authority, (Tieton Hydropower), 5.00%, 7/1/35
    1,890       2,047,172      
Vernon, Electric System Revenue, 5.125%, 8/1/21
    2,375       2,538,614      
 
 
            $ 11,994,984      
 
 
 
 
General Obligations — 18.3%
 
California, 5.50%, 11/1/35(2)
  $ 4,600     $ 5,180,750      
Foothill-De Anza Community College District, 5.00%, 8/1/29(3)
    3,045       3,534,179      
Foothill-De Anza Community College District, 5.00%, 8/1/30(3)
    3,355       3,871,603      
Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/32
    545       581,973      
Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/33
    600       636,714      
Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/34
    655       691,831      
Larkspur-Corte Madera School District, (Election of 2011), 4.25%, 8/1/35
    645       691,453      
Larkspur-Corte Madera School District, (Election of 2011), 4.25%, 8/1/36
    785       838,286      
Larkspur-Corte Madera School District, (Election of 2011), 4.50%, 8/1/39
    2,815       3,054,950      
Palo Alto, (Election of 2008), 5.00%, 8/1/40(1)
    7,020       7,864,225      
San Diego Community College District, (Election of 2002), 5.00%, 8/1/32
    1,375       1,551,426      
San Diego Community College District, (Election of 2006), 5.00%, 8/1/31
    2,545       2,889,008      
San Francisco Bay Area Rapid Transit District, (Election of 2004), 5.00%, 8/1/35(2)
    5,000       5,558,050      
San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/33
    1,910       2,139,868      
San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/35
    2,230       2,467,919      
San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/37
    15       16,506      
San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/37(1)
    4,975       5,474,440      
Tamalpais Union High School District, 5.00%, 8/1/26
    1,000       1,191,290      
Tamalpais Union High School District, 5.00%, 8/1/28
    1,000       1,171,980      
 
 
            $ 49,406,451      
 
 
 
 
Hospital — 10.2%
 
California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 7/1/23
  $ 2,000     $ 2,146,780      
California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/27
    1,750       1,928,553      
California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/28
    550       603,075      
California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%, 8/15/39
    4,580       4,832,404      
California Health Facilities Financing Authority, (Sutter Health), 5.25%, 8/15/31(1)
    5,000       5,636,450      
California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/34
    2,170       2,272,619      
Torrance Hospital, (Torrance Memorial Medical Center), 5.50%, 6/1/31
    3,950       3,957,228      
Washington Township Health Care District, 5.00%, 7/1/32
    3,165       3,213,678      
Washington Township Health Care District, 5.25%, 7/1/29
    3,005       3,006,653      
 
 
            $ 27,597,440      
 
 
 

 
See Notes to Financial Statements.
11


 

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

 
 
                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
 
Insured – Education — 12.5%
 
California Educational Facilities Authority, (Pepperdine University), (AMBAC), 5.00%, 12/1/32
  $ 2,300     $ 2,527,631      
California Educational Facilities Authority, (Pepperdine University), (FGIC), (NPFG), 5.00%, 9/1/33
    1,135       1,151,571      
California State University, (AGM), (BHAC), 5.00%, 11/1/39(1)
    8,250       8,753,250      
University of California, (AGM), 4.50%, 5/15/26(1)
    3,095       3,262,996      
University of California, (AGM), 4.50%, 5/15/28(1)
    6,690       6,971,448      
University of California, (BHAC), (FGIC), 4.75%, 5/15/37(1)
    10,750       10,978,975      
 
 
            $ 33,645,871      
 
 
 
 
Insured – Electric Utilities — 14.6%
 
Anaheim Public Financing Authority, (Electric System District), (BHAC), (NPFG), 4.50%, 10/1/32(1)
  $ 20,000     $ 20,952,599      
Glendale, Electric System Revenue, (AGC), 5.00%, 2/1/31
    2,240       2,433,738      
Los Angeles Department of Water and Power, Electric System Revenue, (AMBAC), (BHAC), 5.00%, 7/1/26(1)
    6,750       7,667,392      
Northern California Power Agency, (Hydroelectric), (AGC), 5.00%, 7/1/24
    2,000       2,227,020      
Sacramento Municipal Utility District, (AGM), 5.00%, 8/15/27
    1,000       1,114,310      
Sacramento Municipal Utility District, (AMBAC), (BHAC), 5.25%, 7/1/24
    4,000       4,885,640      
 
 
            $ 39,280,699      
 
 
 
 
Insured – Escrowed / Prerefunded — 3.3%
 
California Department of Water Resources, (Central Valley Project), (BHAC), (FGIC), Prerefunded to 12/1/12, 5.00%, 12/1/29(1)
  $ 2,100     $ 2,167,689      
California Infrastructure & Economic Development Bank, (Bay Area Toll Bridges), (AMBAC), Prerefunded to 1/1/28, 5.00%, 7/1/36
    3,090       4,031,739      
Ventura County, Community College District, (NPFG), Prerefunded to 8/1/12, 5.00%, 8/1/27
    2,650       2,719,589      
 
 
            $ 8,919,017      
 
 
 
 
Insured – General Obligations — 20.8%
 
Antelope Valley Community College District, (Election of 2004), (NPFG), 5.25%, 8/1/39
  $ 4,175     $ 4,484,493      
Burbank Unified School District, (FGIC), (NPFG), 0.00%, 8/1/21
    4,135       3,048,487      
Coast Community College District, (Election of 2002), (AGM), 0.00%, 8/1/34
    23,150       6,720,213      
El Camino Hospital District, (NPFG), 4.45%, 8/1/36
    2,385       2,415,623      
Palm Springs Unified School District, (Election of 2008), (AGC), 5.00%, 8/1/33
    4,500       4,950,000      
Riverside Community College District, (Election of 2004), (AGM), (NPFG), 5.00%, 8/1/32
    5,705       6,241,726      
San Diego Community College District, (Election of 2006), (AGM), 5.00%, 8/1/32
    15       16,380      
San Diego Community College District, (Election of 2006), (AGM), 5.00%, 8/1/32(1)
    6,100       6,661,017      
San Diego Unified School District, (FGIC), (NPFG), 0.00%, 7/1/22
    2,300       1,541,690      
San Diego Unified School District, (FGIC), (NPFG), 0.00%, 7/1/23
    5,000       3,158,150      
San Juan Unified School District, (AGM), 0.00%, 8/1/21
    5,630       4,008,391      
San Mateo County, Community College District, (FGIC), (NPFG), 0.00%, 9/1/22(2)
    4,840       3,338,971      
San Mateo County, Community College District, (FGIC), (NPFG), 0.00%, 9/1/23
    4,365       2,848,774      
San Mateo County, Community College District, (FGIC), (NPFG), 0.00%, 9/1/25
    3,955       2,307,742      
San Mateo Union High School District, (FGIC), (NPFG), 0.00%, 9/1/21
    5,240       3,915,276      
Ventura County, Community College District, (NPFG), 5.00%, 8/1/27
    350       357,844      
 
 
            $ 56,014,777      
 
 
 
 
Insured – Hospital — 7.0%
 
California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), (BHAC), 5.00%, 11/15/34
  $ 2,205     $ 2,359,085      
California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC), 5.00%, 4/1/31(1)
    10,000       10,779,000      
California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC), 5.00%, 3/1/41(1)
    3,500       3,628,660      
California Statewide Communities Development Authority, (Sutter Health), (AMBAC), (BHAC), 5.00%, 11/15/38(1)
    2,000       2,080,380      
 
 
            $ 18,847,125      
 
 
 
 
Insured – Lease Revenue / Certificates of Participation — 12.5%
 
California Public Works Board, (California Community College), (FGIC), (NPFG), 4.00%, 10/1/30
  $ 3,000     $ 2,786,220      
Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27
    3,885       5,199,839      
San Diego County Water Authority, Certificates of Participation, (AGM), 5.00%, 5/1/38(1)
    10,000       10,705,100      
San Jose Financing Authority, (Civic Center), (AMBAC), (BHAC), 5.00%, 6/1/37
    1,000       1,006,020      
San Jose Financing Authority, (Civic Center), (AMBAC), (BHAC), 5.00%, 6/1/37(1)
    14,000       14,084,280      
 
 
            $ 33,781,459      
 
 
 
 
Insured – Special Tax Revenue — 13.3%
 
Ceres, Redevelopment Agency Tax, (AMBAC), 4.00%, 11/1/36
  $ 7,765     $ 6,191,501      
Hesperia Public Financing Authority, (Redevelopment and Housing Projects), (XLCA), 5.00%, 9/1/31
    595       480,451      

 
See Notes to Financial Statements.
12


 

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

 
 
                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
Insured – Special Tax Revenue (continued)
 
                     
Hesperia Public Financing Authority, (Redevelopment and Housing Projects), (XLCA), 5.00%, 9/1/37
  $ 7,240     $ 5,496,101      
Pomona, Public Financing Authority, (NPFG), 5.00%, 2/1/33
    5,940       5,630,288      
Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54
    29,265       2,309,594      
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
    18,040       2,759,759      
San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, (AGM), 4.25%, 7/1/36(2)
    1,600       1,618,224      
San Jose Redevelopment Agency, (Merged Area Redevelopment Project), (XLCA), 4.25%, 8/1/36
    3,680       3,071,070      
Santa Clara Valley Transportation Authority, Sales Tax Revenue, (AMBAC), 5.00%, 4/1/32(1)
    7,500       8,229,975      
 
 
            $ 35,786,963      
 
 
 
 
Insured – Transportation — 1.9%
 
San Joaquin Hills, Transportation Corridor Agency, (NPFG), 0.00%, 1/15/30
  $ 3,445     $ 1,068,364      
San Jose, Airport Revenue, (AMBAC), 5.00%, 3/1/33
    1,885       1,946,677      
San Jose, Airport Revenue, (AMBAC), 5.00%, 3/1/37
    2,040       2,089,470      
 
 
            $ 5,104,511      
 
 
 
 
Insured – Water and Sewer — 17.3%
 
California Department of Water Resources, (Central Valley Project), (BHAC), (FGIC), 5.00%, 12/1/29(1)
  $ 5,875     $ 6,026,751      
Calleguas Las Virgines Public Financing Authority, (Municipal Water District), (BHAC), (FGIC), 4.75%, 7/1/37(1)
    7,000       7,352,520      
Contra Costa, Water District, (AGM), 4.50%, 10/1/31(1)
    5,500       5,504,180      
East Bay Municipal Utility District, Water System Revenue, (AGM), (FGIC), 5.00%, 6/1/32
    345       388,784      
East Bay Municipal Utility District, Water System Revenue, (FGIC), (NPFG), 5.00%, 6/1/32(1)
    6,500       7,324,915      
Los Angeles Department of Water and Power, (BHAC), (FGIC), 5.00%, 7/1/43(1)
    7,750       7,826,957      
Riverside, Water System Revenue, (AGM), 5.00%, 10/1/38
    1,595       1,710,542      
San Luis Obispo County, (Nacimiento Water Project), (BHAC), (NPFG), 5.00%, 9/1/38
    5,000       5,330,300      
San Luis Obispo County, (Nacimiento Water Project), (NPFG), 4.50%, 9/1/40
    2,750       2,783,550      
Santa Clara Valley Water District, (AGM), 3.75%, 6/1/28
    2,225       2,264,939      
 
 
            $ 46,513,438      
 
 
 
 
Other Revenue — 0.8%
 
California Infrastructure & Economic Development Bank, (The J. Paul Getty Trust), 3.00%, 10/1/20
  $ 2,080     $ 2,285,442      
 
 
            $ 2,285,442      
 
 
 
 
Transportation — 8.1%
 
Bay Area Toll Authority, Toll Bridge Revenue, (San Francisco Bay Area), 5.25%, 4/1/29(1)
  $ 6,500     $ 7,406,555      
Long Beach, Harbor Revenue, 5.00%, 5/15/27
    1,960       2,221,229      
Los Angeles Department of Airports, (Los Angeles International Airport), 5.00%, 5/15/35(1)
    7,500       8,115,600      
San Francisco City and County Airport Commission, (San Francisco International Airport), 5.00%, 5/1/35
    2,190       2,339,183      
San Jose, Airport Revenue, 5.00%, 3/1/31
    1,750       1,857,887      
 
 
            $ 21,940,454      
 
 
 
 
Water and Sewer — 3.7%
 
Alameda County Water District Financing Authority, 4.00%, 6/1/24
  $ 1,320     $ 1,485,423      
Alameda County Water District Financing Authority, 4.00%, 6/1/25
    1,680       1,862,465      
Beverly Hills Public Financing Authority, Water Revenue, 5.00%, 6/1/37(3)
    5,735       6,552,524      
 
 
            $ 9,900,412      
 
 
     
Total Tax-Exempt Investments — 164.3%
   
(identified cost $421,686,865)
  $ 442,879,740      
 
 
             
Other Assets, Less Liabilities — (64.3)%
  $ (173,367,887 )    
 
 
             
Net Assets — 100.0%
  $ 269,511,853      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
 
     
AGC
 
- Assured Guaranty Corp.
AGM
 
- Assured Guaranty Municipal Corp.
AMBAC
 
- AMBAC Financial Group, Inc.
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, 62.7% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 2.0% to 26.2% 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.

 
See Notes to Financial Statements.
13


 

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

 
 
                     
Tax-Exempt Investments — 161.9%
 
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
 
Bond Bank — 4.9%
 
New York Environmental Facilities Corp., 5.00%, 10/15/39
  $ 3,360     $ 3,689,549      
New York Environmental Facilities Corp., Clean Water and Drinking Water, (Municipal Water Finance), 5.00%, 10/15/35
    50       56,000      
New York Environmental Facilities Corp., Clean Water and Drinking Water, (Municipal Water Finance), 5.00%, 10/15/35(1)
    6,100       6,832,061      
 
 
            $ 10,577,610      
 
 
 
 
Education — 26.6%
 
Hempstead Local Development Corp., (Adelphi University Project), 4.50%, 6/1/19
  $ 715     $ 808,958      
Hempstead Local Development Corp., (Adelphi University Project), 5.00%, 6/1/20
    760       883,660      
Hempstead Local Development Corp., (Adelphi University Project), 5.00%, 6/1/21
    950       1,107,501      
Hempstead Local Development Corp., (Adelphi University Project), 5.00%, 6/1/31
    800       856,104      
Hempstead Local Development Corp., (Adelphi University Project), 5.00%, 6/1/32
    300       320,091      
Madison County Industrial Development Agency, (Colgate University), 5.00%, 7/1/33
    1,630       1,666,577      
New York City Cultural Resource Trust, (The Juilliard School), 5.00%, 1/1/39
    240       261,698      
New York City Cultural Resource Trust, (The Juilliard School), 5.00%, 1/1/39(1)
    10,000       10,904,100      
New York Dormitory Authority, (Columbia University), 5.00%, 10/1/41(1)
    10,000       11,277,400      
New York Dormitory Authority, (Cornell University), 5.00%, 7/1/37(1)
    5,700       6,314,403      
New York Dormitory Authority, (New York University), 5.00%, 7/1/39(1)
    10,000       10,842,900      
New York Dormitory Authority, (Rochester Institute of Technology), 5.00%, 7/1/40
    2,000       2,153,120      
New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/40(1)
    2,700       2,961,819      
New York Dormitory Authority, (Skidmore College), 5.00%, 7/1/26
    1,175       1,324,613      
New York Dormitory Authority, (Skidmore College), 5.25%, 7/1/30
    250       279,595      
New York Dormitory Authority, (The New School), 5.50%, 7/1/40
    5,250       5,796,630      
 
 
            $ 57,759,169      
 
 
 
 
General Obligations — 9.3%
 
East Irondequoit Central School District, 3.00%, 6/15/23
  $ 1,720     $ 1,702,645      
Long Beach City School District, 4.50%, 5/1/26
    4,715       5,202,248      
New York, 5.00%, 4/1/22(2)
    3,500       4,254,600      
New York, 5.00%, 2/15/34(1)
    7,250       8,111,373      
Peekskill, 5.00%, 6/1/35
    465       505,664      
Peekskill, 5.00%, 6/1/36
    490       531,719      
 
 
            $ 20,308,249      
 
 
 
 
Hospital — 5.7%
 
New York Dormitory Authority, (Highland Hospital of Rochester), 5.00%, 7/1/26
  $ 620     $ 664,752      
New York Dormitory Authority, (Highland Hospital of Rochester), 5.20%, 7/1/32
    820       879,179      
New York Dormitory Authority, (North Shore-Long Island Jewish Obligated Group), 5.00%, 5/1/20
    1,065       1,234,718      
New York Dormitory Authority, (North Shore-Long Island Jewish Obligated Group), 5.00%, 5/1/26
    2,055       2,178,547      
Suffolk County Economic Development Corp., (Catholic Health Services of Long Island Obligated Group), 5.00%, 7/1/28
    6,900       7,487,190      
 
 
            $ 12,444,386      
 
 
 
 
Housing — 1.2%
 
New York Housing Development Corp., 4.95%, 11/1/39
  $ 2,500     $ 2,589,300      
 
 
            $ 2,589,300      
 
 
 
 
Industrial Development Revenue — 1.0%
 
New York Liberty Development Corp., (Goldman Sachs Group, Inc.), 5.25%, 10/1/35
  $ 500     $ 544,495      
New York Liberty Development Corp., (Goldman Sachs Group, Inc.), 5.50%, 10/1/37
    1,440       1,625,213      
 
 
            $ 2,169,708      
 
 
 
 
Insured – Education — 21.3%
 
Madison County Industrial Development Agency, (Colgate University), (NPFG), 5.00%, 7/1/39
  $ 4,000     $ 4,112,480      
New York Dormitory Authority, (Brooklyn Law School), (XLCA), 5.125%, 7/1/30
    3,280       3,418,383      
New York Dormitory Authority, (City University), (AMBAC), 5.50%, 7/1/35
    925       1,035,242      
New York Dormitory Authority, (Educational Housing Services CUNY Student Housing), (AMBAC), 5.25%, 7/1/23
    1,750       1,992,533      
New York Dormitory Authority, (Fordham University), (AGC), (BHAC), 5.00%, 7/1/38(1)
    10,750       11,588,500      
New York Dormitory Authority, (New York University), (AMBAC), 5.00%, 7/1/41
    725       727,545      
New York Dormitory Authority, (Pratt Institute), (AGC), 5.00%, 7/1/34
    1,555       1,652,467      

 
See Notes to Financial Statements.
14


 

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

 
 
                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
Insured – Education (continued)
 
                     
New York Dormitory Authority, (Pratt Institute), (AGC), 5.125%, 7/1/39(3)
  $ 2,405     $ 2,560,483      
New York Dormitory Authority, (St. John’s University), (NPFG), 5.25%, 7/1/37
    3,750       3,916,537      
New York Dormitory Authority, (State University), (BHAC), 5.00%, 7/1/38(1)
    8,500       9,163,000      
Oneida County Industrial Development Agency, (Hamilton College), (NPFG), 0.00%, 7/1/34
    5,555       2,037,019      
Oneida County Industrial Development Agency, (Hamilton College), (NPFG), 0.00%, 7/1/36
    8,455       2,819,573      
Oneida County Industrial Development Agency, (Hamilton College), (NPFG), 0.00%, 7/1/37
    4,000       1,270,720      
 
 
            $ 46,294,482      
 
 
 
 
Insured – Electric Utilities — 6.1%
 
Long Island Power Authority, Electric System Revenue, (BHAC), 5.75%, 4/1/33(3)
  $ 5,000     $ 5,765,450      
New York Power Authority, (BHAC), (NPFG), 4.50%, 11/15/47(1)
    7,210       7,450,598      
 
 
            $ 13,216,048      
 
 
 
 
Insured – Escrowed / Prerefunded — 3.5%
 
New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), (NPFG), Escrowed to Maturity, 0.00%, 7/1/26
  $ 1,645     $ 1,121,627      
New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), (NPFG), Escrowed to Maturity, 0.00%, 7/1/27
    2,485       1,624,842      
New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), (NPFG), Escrowed to Maturity, 0.00%, 7/1/30
    8,615       4,909,172      
 
 
            $ 7,655,641      
 
 
 
 
Insured – General Obligations — 9.5%
 
Brentwood Union Free School District, (AGC), 4.75%, 11/15/23
  $ 2,290     $ 2,660,110      
Brentwood Union Free School District, (AGC), 5.00%, 11/15/24
    2,390       2,799,144      
East Northport Fire District, (AGC), 4.50%, 11/1/20
    200       238,044      
East Northport Fire District, (AGC), 4.50%, 11/1/21
    200       235,992      
East Northport Fire District, (AGC), 4.50%, 11/1/22
    200       233,800      
East Northport Fire District, (AGC), 4.50%, 11/1/23
    200       231,108      
Eastchester Union Free School District, (AGM), 3.50%, 6/15/20
    245       268,194      
Eastchester Union Free School District, (AGM), 3.75%, 6/15/21
    255       279,381      
Eastchester Union Free School District, (AGM), 4.00%, 6/15/23
    175       190,666      
Freeport, (AGC), 5.00%, 10/15/20
    185       222,618      
Freeport, (AGC), 5.00%, 10/15/21
    195       232,231      
Hauppauge Union Free School District, (AGC), 4.00%, 7/15/24
    940       1,021,855      
Hoosic Valley Central School District, (AGC), 4.00%, 6/15/23
    1,110       1,222,476      
Longwood Central School District, Suffolk County, (AGC), 4.15%, 6/1/23
    820       894,727      
Longwood Central School District, Suffolk County, (AGC), 4.25%, 6/1/24
    860       937,305      
New York, (AGM), 5.00%, 4/1/22
    2,250       2,540,160      
Oneida County, (AGC), 4.00%, 4/15/22
    645       706,475      
Wantagh Union Free School District, (AGC), 4.50%, 11/15/19
    785       903,692      
Wantagh Union Free School District, (AGC), 4.50%, 11/15/20
    825       940,987      
Wantagh Union Free School District, (AGC), 4.75%, 11/15/22
    905       1,022,921      
Wantagh Union Free School District, (AGC), 4.75%, 11/15/23
    950       1,065,938      
William Floyd Union Free School District, (AGC), 4.00%, 12/15/24
    1,590       1,720,889      
 
 
            $ 20,568,713      
 
 
 
 
Insured – Hospital — 8.1%
 
New York Dormitory Authority, (Hudson Valley Hospital Center), (AGM), (BHAC), 5.00%, 8/15/36
  $ 4,355     $ 4,629,583      
New York Dormitory Authority, (Maimonides Medical Center), (NPFG), 5.00%, 8/1/33
    2,525       2,706,497      
New York Dormitory Authority, (New York and Presbyterian Hospital), (AGM), (BHAC), (FHA), 5.25%, 2/15/31(1)
    10,000       10,387,000      
 
 
            $ 17,723,080      
 
 
 
 
Insured – Housing — 1.1%
 
New York Housing Development Corp., (FGIC), (NPFG), 5.00%, 7/1/25
  $ 2,350     $ 2,484,796      
 
 
            $ 2,484,796      
 
 
 
 
Insured – Lease Revenue / Certificates of Participation — 0.5%
 
Hudson Yards Infrastructure Corp., (NPFG), 4.50%, 2/15/47
  $ 1,175     $ 1,149,632      
 
 
            $ 1,149,632      
 
 
 
 
Insured – Other Revenue — 6.2%
 
New York City Cultural Resource Trust, (American Museum of Natural History), (NPFG), 5.00%, 7/1/44
  $ 2,055     $ 2,107,875      
New York City Industrial Development Agency, (Yankee Stadium), (NPFG), 4.75%, 3/1/46
    6,950       6,863,125      

 
See Notes to Financial Statements.
15


 

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

 
 
                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
Insured – Other Revenue (continued)
 
                     
New York City Transitional Finance Authority, (BHAC), 5.50%, 7/15/38
  $ 4,050     $ 4,509,675      
 
 
            $ 13,480,675      
 
 
 
 
Insured – Solid Waste — 2.0%
 
Ulster County, Resource Recovery Agency, Solid Waste System, (AMBAC), 0.00%, 3/1/21
  $ 1,490     $ 1,163,943      
Ulster County, Resource Recovery Agency, Solid Waste System, (AMBAC), 0.00%, 3/1/23
    1,090       778,096      
Ulster County, Resource Recovery Agency, Solid Waste System, (AMBAC), 0.00%, 3/1/25
    3,635       2,363,441      
 
 
            $ 4,305,480      
 
 
 
 
Insured – Special Tax Revenue — 12.3%
 
Metropolitan Transportation Authority, (AGM), 5.00%, 11/15/32(1)
  $ 14,550     $ 14,907,493      
New York State Housing Finance Agency, (AGM), 5.00%, 3/15/37
    2,415       2,567,918      
Puerto Rico Infrastructure Financing Authority, (AMBAC), 0.00%, 7/1/36
    3,000       671,670      
Puerto Rico Infrastructure Financing Authority, (FGIC), 0.00%, 7/1/32
    4,000       1,194,120      
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
    12,675       1,939,021      
Sales Tax Asset Receivables Corp., (AMBAC), 5.00%, 10/15/29
    850       927,410      
Sales Tax Asset Receivables Corp., (AMBAC), 5.00%, 10/15/32(3)
    4,185       4,549,681      
 
 
            $ 26,757,313      
 
 
 
 
Insured – Transportation — 9.6%
 
New York Thruway Authority, (AMBAC), 5.50%, 4/1/20
  $ 2,175     $ 2,731,343      
Port Authority of New York and New Jersey, (AGM), 5.00%, 8/15/24(1)
    5,600       6,207,992      
Port Authority of New York and New Jersey, (AGM), 5.00%, 8/15/33(1)
    11,000       11,837,980      
 
 
            $ 20,777,315      
 
 
 
 
Insured – Water and Sewer — 7.2%
 
Nassau County Sewer and Storm Water Finance Authority, (BHAC), 5.125%, 11/1/23
  $ 300     $ 347,088      
Nassau County Sewer and Storm Water Finance Authority, (BHAC), 5.375%, 11/1/28
    3,835       4,391,573      
New York City Municipal Water Finance Authority, (Water and Sewer System), (AMBAC), (BHAC), 5.00%, 6/15/38(1)
    6,500       6,779,110      
New York City Municipal Water Finance Authority, (Water and Sewer System), (BHAC), (NPFG), 5.125%, 6/15/34
    2,500       2,521,700      
Suffolk County Water Authority, (NPFG), 4.50%, 6/1/25
    1,475       1,546,110      
 
 
            $ 15,585,581      
 
 
 
 
Lease Revenue / Certificates of Participation — 0.7%
 
Metropolitan Transportation Authority, Lease Contract, 5.125%, 1/1/29
  $ 1,500     $ 1,514,745      
 
 
            $ 1,514,745      
 
 
 
 
Other Revenue — 6.7%
 
Battery Park City Authority, 5.00%, 11/1/34
  $ 4,925     $ 5,677,885      
Brooklyn Arena Local Development Corp., (Barclays Center), 0.00%, 7/15/31
    4,900       1,764,539      
New York Liberty Development Corp., (7 World Trade Center Project), 5.00%, 9/15/40(2)
    6,500       7,110,545      
 
 
            $ 14,552,969      
 
 
 
 
Special Tax Revenue — 8.0%
 
New York City Transitional Finance Authority, Future Tax Revenue, 5.00%, 2/1/35(1)
  $ 10,000     $ 11,063,100      
New York City Transitional Finance Authority, Future Tax Revenue, 5.50%, 11/1/35(1)(4)
    1,000       1,171,860      
New York Dormitory Authority, Personal Income Tax Revenue, 5.00%, 3/15/33
    1,500       1,680,915      
New York Local Government Assistance Corp., 5.00%, 4/1/23
    1,300       1,532,128      
New York Urban Development Corp., Personal Income Tax Revenue, 5.00%, 3/15/32
    1,765       1,918,431      
 
 
            $ 17,366,434      
 
 
 
 
Transportation — 9.0%
 
Metropolitan Transportation Authority, 5.25%, 11/15/38
  $ 3,430     $ 3,753,792      
Nassau County Bridge Authority, 5.00%, 10/1/35
    1,565       1,732,111      
Nassau County Bridge Authority, 5.00%, 10/1/40
    300       327,201      
New York Thruway Authority, 5.00%, 4/1/26
    2,370       2,712,797      
Triborough Bridge and Tunnel Authority, 5.00%, 11/15/38(1)
    10,000       10,950,900      
 
 
            $ 19,476,801      
 
 
 
 
Water and Sewer — 1.4%
 
Albany Municipal Water Finance Authority, 5.00%, 12/1/21
  $ 500     $ 607,480      
Albany Municipal Water Finance Authority, 5.00%, 12/1/26
    755       872,387      

 
See Notes to Financial Statements.
16


 

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

 
                     
    Principal
           
    Amount
           
Security   (000’s omitted)     Value      
 
 
Water and Sewer (continued)
 
                     
Albany Municipal Water Finance Authority, 5.00%, 12/1/29
  $ 500     $ 567,465      
New York City Municipal Water Finance Authority, 5.00%, 6/15/34
    1,000       1,120,020      
 
 
            $ 3,167,352      
 
 
     
Total Tax-Exempt Investments — 161.9%
   
(identified cost $325,836,896)
  $ 351,925,479      
 
 
             
Other Assets, Less Liabilities — (61.9)%
  $ (134,574,011 )    
 
 
             
Net Assets — 100.0%
  $ 217,351,468      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
 
     
AGC
 
- Assured Guaranty Corp.
AGM
 
- Assured Guaranty Municipal Corp.
AMBAC
 
- AMBAC Financial Group, Inc.
BHAC
 
- Berkshire Hathaway Assurance Corp.
FGIC
 
- Financial Guaranty Insurance Company
FHA
 
- Federal Housing Administration
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, 54.0% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.0% to 19.2% of total investments.
 
(1) Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1H).
 
(2) When-issued security.
 
(3) Security (or a portion thereof) has been segregated to cover payable for when-issued securities.
 
(4) Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $421,860.

 
See Notes to Financial Statements.
17


 

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

 
                             
    March 31, 2012
   
Assets   Municipal Fund   California Fund   New York Fund    
 
Investments —
                           
Identified cost
  $ 1,417,295,225     $ 421,686,865     $ 325,836,896      
Unrealized appreciation
    72,029,812       21,192,875       26,088,583      
 
 
Investments, at value
  $ 1,489,325,037     $ 442,879,740     $ 351,925,479      
 
 
Cash
  $ 2,687,217     $     $      
Restricted cash*
    1,500,000       875,000       240,000      
Interest receivable
    18,413,213       5,707,726       4,325,437      
Receivable for investments sold
    6,403,510       10,707,393       9,884,040      
Receivable for variation margin on open financial futures contracts
    530,578       302,625       84,375      
Deferred debt issuance costs
    1,089,316       274,213       85,468      
 
 
Total assets
  $ 1,519,948,871     $ 460,746,697     $ 366,544,799      
 
 
                             
                             
 
Liabilities
 
Payable for floating rate notes issued
  $ 615,555,000     $ 171,840,000     $ 136,000,000      
Payable for when-issued securities
          13,923,368       11,199,090      
Due to custodian
          4,783,297       1,509,512      
Payable to affiliates:
                           
Investment adviser fee
    837,547       256,124       198,824      
Interest expense and fees payable
    1,209,291       360,739       216,807      
Accrued expenses
    125,044       71,316       69,098      
 
 
Total liabilities
  $ 617,726,882     $ 191,234,844     $ 149,193,331      
 
 
Net Assets
  $ 902,221,989     $ 269,511,853     $ 217,351,468      
 
 
                             
                             
 
Sources of Net Assets
 
Common shares, $0.01 par value, unlimited number of shares authorized
  $ 681,239     $ 217,562     $ 158,838      
Additional paid-in capital
    957,923,879       306,726,139       223,791,416      
Accumulated net realized loss
    (129,696,099 )     (59,741,830 )     (33,235,423 )    
Accumulated undistributed net investment income
    448,552       350,300       317,913      
Net unrealized appreciation
    72,864,418       21,959,682       26,318,724      
 
 
Net Assets
  $ 902,221,989     $ 269,511,853     $ 217,351,468      
 
 
                             
                             
                             
Common Shares Outstanding     68,123,883       21,756,186       15,883,830      
 
 
                             
                             
 
Net Asset Value
 
Net assets ¸ common shares issued and outstanding
  $ 13.24     $ 12.39     $ 13.68      
 
 
 
* Represents restricted cash on deposit at the broker for open financial futures contracts.

 
See Notes to Financial Statements.
18


 

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

 
                             
    Six Months Ended March 31, 2012
   
Investment Income   Municipal Fund   California Fund   New York Fund    
 
Interest
  $ 34,479,806     $ 9,878,776     $ 7,651,622      
 
 
Total investment income
  $ 34,479,806     $ 9,878,776     $ 7,651,622      
 
 
                             
                             
 
Expenses
 
Investment adviser fee
  $ 4,839,381     $ 1,481,817     $ 1,157,066      
Trustees’ fees and expenses
    30,352       9,438       7,468      
Custodian fee
    155,465       90,392       76,920      
Transfer and dividend disbursing agent fees
    11,397       9,803       9,845      
Legal and accounting services
    1,009,787       37,941       35,292      
Printing and postage
    52,397       14,685       14,022      
Interest expense and fees
    2,019,377       599,021       444,192      
Miscellaneous
    56,287       21,110       21,120      
 
 
Total expenses
  $ 8,174,443     $ 2,264,207     $ 1,765,925      
 
 
Deduct —
                           
Reduction of custodian fee
  $ 326     $ 347     $ 204      
 
 
Total expense reductions
  $ 326     $ 347     $ 204      
 
 
                             
Net expenses
  $ 8,174,117     $ 2,263,860     $ 1,765,721      
 
 
                             
Net investment income
  $ 26,305,689     $ 7,614,916     $ 5,885,901      
 
 
                             
                             
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) —
                           
Investment transactions
  $ 1,341,424     $ (2,686,637 )   $ 459,479      
Extinguishment of debt
    (323 )     (543 )          
Financial futures contracts
    (1,617,415 )     (1,783,616 )     (198,306 )    
Swap contracts
    (929,946 )           (381,278 )    
 
 
Net realized loss
  $ (1,206,260 )   $ (4,470,796 )   $ (120,105 )    
 
 
Change in unrealized appreciation (depreciation) —
                           
Investments
  $ 45,153,536     $ 17,258,958     $ 6,808,544      
Financial futures contracts
    1,092,950       2,339,356       333,449      
Swap contracts
    3,525,400             1,445,414      
 
 
Net change in unrealized appreciation (depreciation)
  $ 49,771,886     $ 19,598,314     $ 8,587,407      
 
 
                             
Net realized and unrealized gain
  $ 48,565,626     $ 15,127,518     $ 8,467,302      
 
 
                             
Net increase in net assets from operations
  $ 74,871,315     $ 22,742,434     $ 14,353,203      
 
 

 
See Notes to Financial Statements.
19


 

 
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   California Fund   New York Fund    
 
From operations —
                           
Net investment income
  $ 26,305,689     $ 7,614,916     $ 5,885,901      
Net realized loss from investment transactions, extinguishment of debt, financial futures contracts and swap contracts
    (1,206,260 )     (4,470,796 )     (120,105 )    
Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts
    49,771,886       19,598,314       8,587,407      
 
 
Net increase in net assets from operations
  $ 74,871,315     $ 22,742,434     $ 14,353,203      
 
 
Distributions to common shareholders —
                           
From net investment income
  $ (28,530,360 )   $ (8,635,540 )   $ (6,176,492 )    
 
 
Total distributions to common shareholders
  $ (28,530,360 )   $ (8,635,540 )   $ (6,176,492 )    
 
 
Capital share transactions —
                           
Reinvestment of distributions to common shareholders
  $ 176,533     $ 110,639     $ 171,579      
 
 
Net increase in net assets from capital share transactions
  $ 176,533     $ 110,639     $ 171,579      
 
 
                             
Net increase in net assets
  $ 46,517,488     $ 14,217,533     $ 8,348,290      
 
 
                             
                             
 
Net Assets
 
At beginning of period
  $ 855,704,501     $ 255,294,320     $ 209,003,178      
 
 
At end of period
  $ 902,221,989     $ 269,511,853     $ 217,351,468      
 
 
                             
                             
 
Accumulated undistributed net investment income
included in net assets
 
At end of period
  $ 448,552     $ 350,300     $ 317,913      
 
 

 
See Notes to Financial Statements.
20


 

 
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   California Fund   New York Fund    
 
From operations —
                           
Net investment income
  $ 59,775,936     $ 17,409,457     $ 12,638,739      
Net realized loss from investment transactions, extinguishment of debt, financial futures contracts and swap contracts
    (35,203,163 )     (17,357,508 )     (8,994,586 )    
Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts
    2,630,225       (542,668 )     2,521,605      
 
 
Net increase (decrease) in net assets from operations
  $ 27,202,998     $ (490,719 )   $ 6,165,758      
 
 
Distributions to common shareholders —
                           
From net investment income
  $ (62,345,602 )   $ (18,450,457 )   $ (13,072,034 )    
 
 
Total distributions to common shareholders
  $ (62,345,602 )   $ (18,450,457 )   $ (13,072,034 )    
 
 
Capital share transactions —
                           
Reinvestment of distributions to common shareholders
  $ 1,307,692     $ 321,761     $ 456,451      
 
 
Net increase in net assets from capital share transactions
  $ 1,307,692     $ 321,761     $ 456,451      
 
 
                             
Net decrease in net assets
  $ (33,834,912 )   $ (18,619,415 )   $ (6,449,825 )    
 
 
                             
                             
 
Net Assets
 
At beginning of year
  $ 889,539,413     $ 273,913,735     $ 215,453,003      
 
 
At end of year
  $ 855,704,501     $ 255,294,320     $ 209,003,178      
 
 
                             
                             
 
Accumulated undistributed net investment income
included in net assets
 
At end of year
  $ 2,673,223     $ 1,370,924     $ 608,504      
 
 

 
See Notes to Financial Statements.
21


 

 
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   California Fund   New York Fund    
 
Net increase in net assets from operations
  $ 74,871,315     $ 22,742,434     $ 14,353,203      
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities:
                           
Investments purchased
    (174,352,587 )     (71,019,716 )     (22,516,095 )    
Investments sold
    182,867,480       90,266,775       23,742,180      
Net amortization/accretion of premium (discount)
    (3,447,160 )     (458,391 )     (149,796 )    
Amortization of deferred debt issuance costs
    66,935       18,011       17,535      
Increase in restricted cash
    (1,500,000 )     (875,000 )     (240,000 )    
Decrease in interest receivable
    9,131       109,848       113,696      
Increase in receivable for investments sold
    (5,577,180 )     (7,273,974 )     (9,753,576 )    
Increase in receivable for variation margin on open financial futures contracts
    (530,578 )     (302,625 )     (84,375 )    
Decrease in receivable from the transfer agent
          29,491       39,589      
Decrease in miscellaneous receivable
    614,666                  
Increase in payable for when-issued securities
          4,134,202       11,199,090      
Decrease in payable for variation margin on open financial futures contracts
    (21,078 )     (124,938 )     (10,938 )    
Decrease in payable for open swap contracts
    (3,525,400 )           (1,445,414 )    
Increase in payable to affiliate for investment adviser fee
    60,653       16,984       11,507      
Decrease in interest expense and fees payable
    (4,849 )     (56,520 )     (16,255 )    
Decrease in accrued expenses
    (81,902 )     (51,677 )     (51,548 )    
Net change in unrealized (appreciation) depreciation from investments
    (45,153,536 )     (17,258,958 )     (6,808,544 )    
Net realized (gain) loss from investments
    (1,341,424 )     2,686,637       (459,479 )    
Net realized loss on extinguishment of debt
    323       543            
 
 
Net cash provided by operating activities
  $ 22,954,809     $ 22,583,126     $ 7,940,780      
 
 
                             
                             
 
Cash Flows From Financing Activities
 
Distributions paid to common shareholders, net of reinvestments
  $ (28,353,827 )   $ (8,524,901 )   $ (6,004,913 )    
Proceeds from secured borrowings
    27,455,000       19,240,000       11,640,000      
Repayment of secured borrowings
    (23,785,000 )     (44,890,000 )     (19,800,000 )    
Increase in due to custodian
          4,783,297       1,509,512      
 
 
Net cash used in financing activities
  $ (24,683,827 )   $ (29,391,604 )   $ (12,655,401 )    
 
 
                             
Net decrease in cash
  $ (1,729,018 )   $ (6,808,478 )   $ (4,714,621 )    
 
 
                             
Cash at beginning of period
  $ 4,416,235     $ 6,808,478     $ 4,714,621      
 
 
                             
Cash at end of period
  $ 2,687,217     $     $      
 
 
                             
                             
 
Supplemental disclosure of cash flow information:
 
Noncash financing activities not included herein consist of:
                           
Reinvestment of dividends and distributions
  $ 176,533     $ 110,639     $ 171,579      
Cash paid for interest and fees
    1,957,291       637,530       442,912      
 
 

 
See Notes to Financial Statements.
22


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Financial Highlights

 
                                                     
    Municipal 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)
  $ 12.560     $ 13.080     $ 13.170     $ 11.080     $ 15.100     $ 15.910      
 
 
                                                     
                                                     
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.386     $ 0.878     $ 0.878     $ 0.846     $ 0.959     $ 1.050      
Net realized and unrealized gain (loss)
    0.713       (0.482 )     (0.059 )     2.051       (3.797 )     (0.419 )    
Distributions to preferred shareholders
                                                   
From net investment income
                            (0.171 )     (0.225 )    
From net realized gain
                            (0.051 )     (0.113 )    
 
 
Total income (loss) from operations
  $ 1.099     $ 0.396     $ 0.819     $ 2.897     $ (3.060 )   $ 0.293      
 
 
                                                     
                                                     
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.419 )   $ (0.916 )   $ (0.909 )   $ (0.807 )   $ (0.773 )   $ (0.771 )    
From net realized gain
                            (0.187 )     (0.332 )    
 
 
Total distributions to common shareholders
  $ (0.419 )   $ (0.916 )   $ (0.909 )   $ (0.807 )   $ (0.960 )   $ (1.103 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 13.240     $ 12.560     $ 13.080     $ 13.170     $ 11.080     $ 15.100      
 
 
                                                     
Market value — End of period (Common shares)
  $ 13.000     $ 12.350     $ 13.900     $ 13.160     $ 11.140     $ 15.310      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    8.92 %(3)     3.89 %     6.77 %     28.15 %     (21.24 )%     1.87 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    8.77 %(3)     (3.87 )%     13.55 %     27.36 %     (21.90 )%     7.97 %    
 
 
                                                     
                                                     
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 902,222     $ 855,705     $ 889,539     $ 893,391     $ 719,392     $ 977,406      
Ratios (as a percentage of average daily net assets applicable to common shares):(4)
                                                   
Expenses excluding interest and fees
    1.41 %(5)     1.25 %     1.12 %     1.04 %     0.89 %     0.79 %    
Interest and fee expense(6)
    0.46 %(5)     0.56 %     0.54 %     1.33 %     0.59 %          
Total expenses before custodian fee reduction
    1.87 %(5)     1.81 %     1.66 %     2.37 %     1.48 %     0.79 %    
Expenses after custodian fee reduction excluding interest and fees
    1.41 %(5)     1.25 %     1.12 %     1.04 %     0.86 %     0.78 %    
Net investment income
    6.01 %(5)     7.54 %     7.04 %     7.94 %     6.94 %     6.76 %    
Portfolio Turnover
    12 %(3)     18 %     18 %     19 %     54 %     39 %    
 
 
 
(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) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).

 
See Notes to Financial Statements.
23


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Financial Highlights — continued

 
                                                     
    California 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)
  $ 11.740     $ 12.610     $ 12.940     $ 11.310     $ 15.000     $ 15.280      
 
 
                                                     
                                                     
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.350     $ 0.801     $ 0.847     $ 0.827     $ 0.930     $ 1.024      
Net realized and unrealized gain (loss)
    0.697       (0.822 )     (0.331 )     1.570       (3.418 )     (0.269 )    
Distributions to preferred shareholders
                                                   
From net investment income
                            (0.153 )     (0.296 )    
From net realized gain
                            (0.094 )          
 
 
Total income (loss) from operations
  $ 1.047     $ (0.021 )   $ 0.516     $ 2.397     $ (2.735 )   $ 0.459      
 
 
                                                     
                                                     
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.397 )   $ (0.849 )   $ (0.846 )   $ (0.767 )   $ (0.724 )   $ (0.739 )    
From net realized gain
                            (0.231 )          
 
 
Total distributions to common shareholders
  $ (0.397 )   $ (0.849 )   $ (0.846 )   $ (0.767 )   $ (0.955 )   $ (0.739 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 12.390     $ 11.740     $ 12.610     $ 12.940     $ 11.310     $ 15.000      
 
 
                                                     
Market value — End of period (Common shares)
  $ 11.960     $ 12.270     $ 13.300     $ 12.970     $ 11.090     $ 14.720      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    9.05 %(3)     0.48 %     4.53 %     22.99 %     (19.08 )%     3.10 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    0.72 %(3)     (0.43 )%     10.00 %     25.72 %     (19.15 )%     4.18 %    
 
 
                                                     
                                                     
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 269,512     $ 255,294     $ 273,914     $ 280,743     $ 245,011     $ 324,508      
Ratios (as a percentage of average daily net assets applicable to common shares):(4)
                                                   
Expenses excluding interest and fees
    1.27 %(5)     1.42 %     1.16 %     1.06 %     0.95 %     0.81 %    
Interest and fee expense(6)
    0.46 %(5)     0.57 %     0.56 %     1.28 %     0.51 %          
Total expenses before custodian fee reduction
    1.73 %(5)     1.99 %     1.72 %     2.34 %     1.46 %     0.81 %    
Expenses after custodian fee reduction excluding interest and fees
    1.27 %(5)     1.42 %     1.16 %     1.04 %     0.92 %     0.81 %    
Net investment income
    5.83 %(5)     7.20 %     7.01 %     7.64 %     6.74 %     6.73 %    
Portfolio Turnover
    16 %(3)     21 %     11 %     8 %     39 %     27 %    
 
 
 
(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) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).

 
See Notes to Financial Statements.
24


 

 
Eaton Vance
Municipal Bond Funds
 
March 31, 2012
 
 
Financial Highlights — continued

 
                                                     
    New York 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)
  $ 13.170     $ 13.610     $ 13.640     $ 11.650     $ 14.800     $ 15.140      
 
 
                                                     
                                                     
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.371     $ 0.797     $ 0.831     $ 0.790     $ 0.923     $ 1.012      
Net realized and unrealized gain (loss)
    0.528       (0.412 )     (0.041 )     1.934       (3.152 )     (0.335 )    
Distributions to preferred shareholders
                                                   
From net investment income
                            (0.215 )     (0.302 )    
 
 
Total income (loss) from operations
  $ 0.899     $ 0.385     $ 0.790     $ 2.724     $ (2.444 )   $ 0.375      
 
 
                                                     
                                                     
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.389 )   $ (0.825 )   $ (0.820 )   $ (0.734 )   $ (0.706 )   $ (0.715 )    
 
 
Total distributions to common shareholders
  $ (0.389 )   $ (0.825 )   $ (0.820 )   $ (0.734 )   $ (0.706 )   $ (0.715 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 13.680     $ 13.170     $ 13.610     $ 13.640     $ 11.650     $ 14.800      
 
 
                                                     
Market value — End of period (Common shares)
  $ 13.470     $ 13.450     $ 14.010     $ 14.120     $ 10.980     $ 14.500      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    6.90 %(3)     3.37 %     6.16 %     24.78 %     (17.07 )%     2.59 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    3.07 %(3)     2.56 %     5.56 %     37.06 %     (20.22 )%     3.87 %    
 
 
                                                     
                                                     
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 217,351     $ 209,003     $ 215,453     $ 215,303     $ 183,643     $ 232,624      
Ratios (as a percentage of average daily net assets applicable to common shares):(4)
                                                   
Expenses excluding interest and fees
    1.24 %(5)     1.39 %     1.12 %     1.04 %     0.99 %     0.86 %    
Interest and fee expense(6)
    0.41 %(5)     0.52 %     0.55 %     1.34 %     0.55 %          
Total expenses before custodian fee reduction
    1.65 %(5)     1.91 %     1.67 %     2.38 %     1.54 %     0.86 %    
Expenses after custodian fee reduction excluding interest and fees
    1.24 %(5)     1.39 %     1.12 %     1.03 %     0.95 %     0.85 %    
Net investment income
    5.51 %(5)     6.37 %     6.30 %     6.83 %     6.63 %     6.72 %    
Portfolio Turnover
    6 %(3)     29 %     11 %     21 %     48 %     28 %    
 
 
 
(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) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).

 
See Notes to Financial Statements.
25


 

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

 
1 Significant Accounting Policies
 
Eaton Vance Municipal Bond Fund, Eaton Vance California Municipal Bond Fund and Eaton Vance New York Municipal Bond 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. The Funds seek 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:
 
                             
Expiration Date   Municipal Fund   California Fund   New York Fund    
 
 
September 30, 2012
  $ 314,751     $     $      
September 30, 2013
                125,998      
September 30, 2015
    31,250                  
September 30, 2016
    6,857,645       533,889            
September 30, 2017
    18,034,628       4,562,453       7,946,914      
September 30, 2018
    56,183,712       23,169,615       8,909,352      
September 30, 2019
    16,458,561       7,665,268       6,463,209      
                             
 
 
    $ 97,880,547     $ 35,931,225     $ 23,445,473      
                             
 
 
 
In addition, such capital loss carryforwards cannot be utilized prior to the utilization of new capital losses, if any, created after September 30, 2011.

 
26


 

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

 
Additionally, at September 30, 2011, the Municipal Fund, California Fund and New York Fund had net capital losses of $37,513,142, $19,463,688 and $8,695,243, 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 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 Fund   California Fund   New York Fund    
 
 
Floating Rate Notes Outstanding
  $ 615,555,000     $ 171,840,000     $ 136,000,000      
Interest Rate or Range of Interest Rates (%)
    0.19 - 0.49       0.19 - 0.29       0.18 - 0.24      
Collateral for Floating Rate Notes Outstanding
  $ 703,465,907     $ 196,548,754     $ 158,751,589      
                             
 
 

 
27


 

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

 
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 Fund   California Fund   New York Fund    
 
 
Average Floating Rate Notes Outstanding
  $ 617,305,219     $ 191,603,005     $ 141,481,667      
Average Interest Rate
    0.65 %     0.63 %     0.63 %    
                             
 
 
 
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.
 
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 Distributions to Shareholders
 
Each Fund intends to make monthly distributions of net investment income to common shareholders. 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 are recorded on the ex-dividend date.

 
28


 

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

 
The Funds distinguish between distributions on a tax basis and a financial reporting basis. Accounting principles generally accepted in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.
 
3 Investment Adviser 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 0.65% 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. Pursuant to a fee reduction agreement with EVM, average weekly gross assets are calculated by adding to net assets the amount payable by the Fund to floating rate note holders, such adjustment being limited to the value of the Auction Preferred Shares (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 Fund   California Fund   New York Fund    
 
 
Investment Adviser Fee
  $ 4,839,381     $ 1,481,817     $ 1,157,066      
                             
 
 
 
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.
 
4 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 Fund   California Fund   New York Fund    
 
 
Purchases
  $ 174,352,587     $ 71,019,716     $ 22,516,095      
Sales
  $ 182,867,480     $ 90,266,775     $ 23,742,180      
                             
 
 
 
5 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 Fund   California Fund   New York Fund    
 
 
Six Months Ended March 31, 2012 (Unaudited)
    14,119       9,232       12,737      
Year Ended September 30, 2011
    114,120       29,025       36,395      
                             
 
 
 
6 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 Fund   California Fund   New York Fund    
 
 
Aggregate cost
  $ 797,796,142     $ 248,453,915     $ 191,155,866      
                             
 
 
Gross unrealized appreciation
  $ 105,593,769     $ 28,627,933     $ 25,960,411      
Gross unrealized depreciation
    (29,619,874 )     (6,042,108 )     (1,190,798 )    
                             
 
 
Net unrealized appreciation
  $ 75,973,895     $ 22,585,825     $ 24,769,613      
                             
 
 

 
29


 

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

 
7 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, the California Fund and New York Fund had payments due to SSBT pursuant to the foregoing arrangement of $4,783,297 and $1,509,512, respectively.
 
8 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.
 
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   6/12   47
U.S. 10-Year Treasury Note
  Short   $ (6,126,070 )   $ (6,085,765 )   $ 40,305      
    6/12   454
U.S. 30-Year Treasury Bond
  Short   $ (63,332,801 )   $ (62,538,500 )   $ 794,301      
                                         
 
 
California   6/12   200
U.S. 10-Year Treasury Note
  Short   $ (26,068,384 )   $ (25,896,875 )   $ 171,509      
    6/12   194
U.S. 30-Year Treasury Bond
  Short   $ (27,318,798 )   $ (26,723,500 )   $ 595,298      
                                         
 
 
New York
  6/12   75
U.S. 30-Year Treasury Bond
  Short   $ (10,561,391 )   $ (10,331,250 )   $ 230,141      
                                         
 
 
 
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 Municipal Fund and New York Fund entered 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 Fund   California Fund   New York Fund    
 
 
Asset Derivative:
                           
Futures Contracts
  $ 834,606 (1)   $ 766,807 (1)   $ 230,141 (1)    
                             
 
 
Total
  $ 834,606     $ 766,807     $ 230,141      
                             
 
 
 
(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.

 
30


 

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

 
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 Fund   California Fund   New York Fund    
 
 
Realized Gain (Loss) on Derivatives Recognized in Income
  $ (2,547,361 )(1)   $ (1,783,616 )(2)   $ (579,584 )(1)    
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
  $ 4,618,350 (3)   $ 2,339,356 (4)   $ 1,778,863 (3)    
                             
 
 
 
(1) Statement of Operations location: Net realized gain (loss) – Financial futures contracts and Swap contracts.
(2) Statement of Operations location: Net realized gain (loss) – Financial futures contracts.
(3) Statement of Operations location: Change in unrealized appreciation (depreciation) – Financial futures contracts and Swap contracts.
(4) Statement of Operations location: Change in unrealized appreciation (depreciation) – Financial futures 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 Fund   California Fund   New York Fund    
 
 
Average Notional Amount:
                           
Futures Contracts
  $ 38,471,000     $ 39,400,000     $ 8,571,000      
Interest Rate Swaps
  $ 4,286,000     $     $ 1,757,000      
                             
 
 
 
9 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
   
Asset Description   Level 1   Level 2   Level 3   Total    
 
 
Tax-Exempt Investments
  $     $ 1,489,325,037     $      —     $ 1,489,325,037      
                                     
 
 
Total Investments
  $     $ 1,489,325,037     $     $ 1,489,325,037      
                                     
 
 
Futures Contracts
  $ 834,606     $     $     $ 834,606      
                                     
 
 
Total
  $ 834,606     $ 1,489,325,037     $     $ 1,490,159,643      
                                     
 
 
 

 
31


 

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

 
                                     
California Fund
   
Asset Description   Level 1   Level 2   Level 3   Total    
 
 
Tax-Exempt Investments
  $     $ 442,879,740     $      —     $ 442,879,740      
                                     
 
 
Total Investments
  $     $ 442,879,740     $     $ 442,879,740      
                                     
 
 
Futures Contracts
  $ 766,807     $     $     $ 766,807      
                                     
 
 
Total
  $ 766,807     $ 442,879,740     $     $ 443,646,547      
                                     
 
 
 
                                     
New York Fund
   
Asset Description   Level 1   Level 2   Level 3   Total    
 
 
Tax-Exempt Investments
  $     $ 351,925,479     $      —     $ 351,925,479      
                                     
 
 
Total Investments
  $     $ 351,925,479     $     $ 351,925,479      
                                     
 
 
Futures Contracts
  $ 230,141     $     $     $ 230,141      
                                     
 
 
Total
  $ 230,141     $ 351,925,479     $     $ 352,155,620      
                                     
 
 
 
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.

 
32


 

 
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.”

 
33


 

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

 
     
Officers of Eaton Vance Municipal Bond Funds
 
 
Cynthia J. Clemson
President of EVM and ENX

Thomas M. Metzold
President of EIM

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 692, 134 and 135 registered shareholders for Municipal Bond Fund, California Municipal Bond Fund and New York Municipal Bond Fund, respectively, and approximately 24,974, 5,536 and 5,092 shareholders owning the Fund shares in street name, such as through brokers, banks and financial intermediaries for Municipal Bond Fund, California Municipal Bond Fund and New York Municipal Bond 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
  EIM
California Municipal Bond Fund
  EVM
New York Municipal Bond Fund
  ENX

 
34


 

 
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 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 a 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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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)
 
1453-5/12 CE-IMBSRC


 

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 Municipal Bond Fund
 
 
By:   /s/ Thomas M. Metzold    
  Thomas M. Metzold   
  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/ Thomas M. Metzold    
  Thomas M. Metzold   
  President   
 
Date:   May 8, 2012