Eaton California Municipal Bond Fund II

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number: 811-21217

 

 

Eaton Vance California Municipal Bond Fund II

(Exact Name of Registrant as Specified in Charter)

 

 

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

 

 

Maureen A. Gemma

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

 

 

(617) 482-8260

(Registrant’s Telephone Number)

September 30

Date of Fiscal Year End

September 30, 2016

Date of Reporting Period

 

 

 


Item 1. Reports to Stockholders


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Eaton Vance

Municipal Bond Funds

Annual Report

September 30, 2016

 

 

 

Municipal II (EIV)        California II (EIA)    •    Massachusetts (MAB)         Michigan (MIW)

New Jersey (EMJ)        New York II (NYH)        Ohio (EIO)        Pennsylvania (EIP)

 

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Commodity Futures Trading Commission Registration. Effective December 31, 2012, the Commodity Futures Trading Commission (“CFTC”) adopted certain regulatory changes that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a prescribed level of its assets in certain CFTC-regulated instruments (including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. Each Fund has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act. Accordingly, neither the Funds nor the adviser with respect to the operation of the Funds is subject to CFTC regulation. Because of its management of other strategies, each Fund’s adviser is registered with the CFTC as a commodity pool operator and a commodity trading advisor.

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.


Annual Report September 30, 2016

Eaton Vance

Municipal Bond Funds

Table of Contents

 

Management’s Discussion of Fund Performance

     2   

Performance and Fund Profile

  
  

Municipal Bond Fund II

     4   

California Municipal Bond Fund II

     5   

Massachusetts Municipal Bond Fund

     6   

Michigan Municipal Bond Fund

     7   

New Jersey Municipal Bond Fund

     8   

New York Municipal Bond Fund II

     9   

Ohio Municipal Bond Fund

     10   

Pennsylvania Municipal Bond Fund

     11   
  

Endnotes and Additional Disclosures

     12   

Financial Statements

     13   

Report of Independent Registered Public Accounting Firm

     77   

Federal Tax Information

     78   

Annual Meeting of Shareholders

     79   

Dividend Reinvestment Plan

     80   

Board of Trustees’ Contract Approval

     82   

Management and Organization

     86   

Important Notices

     89   


Eaton Vance

Municipal Bond Funds

September 30, 2016

 

Management’s Discussion of Fund Performance1

 

 

Economic and Market Conditions

As the period opened on October 1, 2015, U.S. Treasurys, along with municipal bonds, were about two months into a rally that would continue for most of the period.

In the closing months of 2015, concerns about the Chinese economy, falling commodity prices and uncertainty about the Federal Reserve Board’s (the Fed) interest rate decisions led many asset classes to experience dramatic volatility. But the municipal market, a high quality asset class with a generally improving credit landscape, continued its steady rally despite a Fed rate hike in December 2015. A combination of lower than expected new issue supply and strong inflows into municipal mutual funds in the final quarter of 2015 was an additional tailwind for the asset class.

In January of 2016, the municipal rally accelerated as U.S. equities experienced what was widely reported as their worst-ever start to a new year. The combination of plummeting oil prices and slowing economic growth in China helped drive a global “flight to quality,” with investors fleeing asset classes regarded as risky for the perceived safety of U.S. Treasurys and municipal bonds. Falling government interest rates around the world, driven by actions such as quantitative easing in Japan and the European Union, put many sovereign rates into negative territory and made Treasurys look attractive by comparison.

Great Britain’s June 2016 vote to leave the European Union, ongoing Fed caution, and mixed U.S. economic reports continued to fuel the municipal rally in the summer of 2016. Even the Commonwealth of Puerto Rico’s July 1, 2016 default on over $1 billion in municipal bond and debt service payments — its second default in 2016 and its largest to date — failed to put a dent in the municipal rally, as the market had expected the defaults for some time.

In the final month of the period, however, remarks by three central banks — the European Central Bank, the Bank of Japan and the Fed — seemed to indicate that rates might begin to rise sooner than markets had anticipated. As a result, municipal rates crept upward in September of 2016 and prices declined modestly for the month.

For the one-year period as a whole, the yield curve flattened for municipal AAA-rated7 issues. Rates rose in the one- to three-year area of the curve — driven in part by new

money market regulations set to take effect in mid-October 2016 — but fell for maturities of four to 30 years. In general, longer maturities saw greater rate declines and thus better price performance. Across the yield curve, municipal bonds outperformed U.S. Treasurys for the period.

Fund Performance

For the fiscal year ended September 30, 2016, Municipal Bond Fund II, Massachusetts Municipal Bond Fund, Michigan Municipal Bond Fund, New Jersey Municipal Bond Fund, Ohio Municipal Bond Fund and Pennsylvania Municipal Bond Fund shares at net asset value (NAV) outperformed the 8.72% return of the Funds’ benchmark, the Bloomberg Barclays Long (22+) Year Municipal Bond Index (the Index).2 During the same 12-month period, California Municipal Bond Fund II and New York Municipal Bond Fund II shares at NAV underperformed the Index.

The Funds’ overall strategy is to invest primarily in higher-quality bonds (rated A or higher).

In managing the Funds, management employs leverage through Residual Interest Bond (RIB) financing, Auction Preferred Shares (APS) and Institutional MuniFund Term Preferred (iMTP) Shares6 to seek to enhance the Funds’ tax-exempt income. The use of leverage has the effect of achieving additional exposure to the municipal market, and thus magnifying a Fund’s exposure to its underlying investments in both up and down market environments. During this period of generally falling rates and rising prices in the medium- and long-maturity areas of the municipal yield curve, the use of leverage contributed to performance versus the Index — which does not employ leverage — for all eight Funds.

By using Treasury futures and/or interest-rate swaps, management hedges to various degrees against the greater potential risk of volatility caused by the use of leverage and investing in bonds at the long end of the yield curve. As a risk management tactic within the Funds’ overall strategy, interest rate hedging is intended to moderate performance on both the upside and the downside of the market. During this period of generally positive performance by municipal bonds, the Funds’ Treasury futures hedge mitigated some of the upside and thus detracted modestly from performance relative to the unhedged Index for all Funds except the Michigan and Ohio Funds, which did not use a hedging strategy during the period.

 

 

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 and include management fees and other expenses. 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 or equal to 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 eatonvance.com.

 

  2  


Eaton Vance

Municipal Bond Funds

September 30, 2016

 

Management’s Discussion of Fund Performance—continued

 

 

 

Fund-specific Results

Eaton Vance Municipal Bond Fund II shares at NAV returned 9.27%, outperforming the 8.72% return of the Index. Significant contributors to relative results versus the Index included leverage, as noted above; security selection in the special tax sector, which was the best-performing sector in the Index during the period; and security selection and an overweight, relative to the Index, in zero-coupon bonds, which were the best-performing coupon structure in the Index during the period. The main detractors from performance relative to the Index were the Fund’s hedging strategy, an underweight in BBB-rated bonds, and an overweight in prerefunded, or escrowed, bonds.

Eaton Vance California Municipal Bond Fund II shares at NAV returned 8.18%, underperforming the 8.72% return of the Index. Detractors from results versus the Index included the Fund’s hedging strategy, an overweight in prerefunded bonds, and an underweight in A-rated and BBB-rated bonds. In contrast, performance versus the Index was helped by leverage, an overweight in zero-coupon bonds, and an overweight and security selection in insured Puerto Rico bonds. The majority of the Fund’s Puerto Rico holdings were insured by various municipal bond insurers. It should be noted that most uninsured bonds issued by the Commonwealth of Puerto Rico and its various conduit issuers were no longer included in the Index. As Puerto Rico continued to deal with an ongoing fiscal crisis, bonds issued by its various legal entities were impacted by a number of factors throughout the period. As the period ended, the situation in Puerto Rico was continuing to evolve.

Eaton Vance Massachusetts Municipal Bond Fund shares at NAV returned 11.32%, outperforming the 8.72% return of the Index. Key contributors to performance relative to the Index included leverage, an overweight in insured Puerto Rico bonds, an overweight in the education sector, and an overweight in general obligation bonds. In contrast, the Fund’s hedging strategy, an overweight in prerefunded bonds, and an underweight in BBB-rated bonds detracted from performance versus the Index.

Eaton Vance Michigan Municipal Bond Fund shares at NAV returned 11.59%, outperforming the 8.72% return of the Index. Leverage, an overweight in insured Puerto Rico bonds, security selection in the electric utility sector, and security

selection in the water and sewer sector all contributed to results versus the Index. Detractors from Fund performance versus the Index included an overweight in prerefunded bonds; an underweight in the transportation sector, which was the second-best-performing sector in the Index during the period; and an underweight in BBB-rated bonds.

Eaton Vance New Jersey Municipal Bond Fund shares at NAV returned 12.67%, outperforming the 8.72% return of the Index. Contributors to performance versus the Index included leverage, an overweight in zero-coupon bonds, and an overweight in A-rated bonds. Detractors from results relative to the Index included the Fund’s hedging strategy, an overweight in prerefunded bonds, and an underweight in bonds with 22 or more years remaining to maturity.

Eaton Vance New York Municipal Bond Fund II shares at NAV returned 8.28%, underperforming the 8.72% return of the Index. Fund performance versus the Index was hurt by the Fund’s hedging strategy, an overweight in prerefunded bonds, and an underweight in A-rated and BBB-rated bonds. Contributors to results versus the Index included leverage, an overweight in the special tax sector, and an overweight and security selection in insured Puerto Rico bonds.

Eaton Vance Ohio Municipal Bond Fund shares at NAV returned 11.24%, outperforming the 8.72% return of the Index. Key contributors to results versus the Index included leverage, an overweight in insured Puerto Rico bonds, and an overweight in zero-coupon bonds. In contrast, an overweight in prerefunded bonds, an underweight in the transportation sector, and an underweight in bonds with 22 or more years remaining to maturity all detracted from performance relative to the Index.

Eaton Vance Pennsylvania Municipal Bond Fund shares at NAV returned 12.08%, outperforming the 8.72% return of the Index. Leverage contributed to performance versus the Index, as did an overweight and security selection in insured Puerto Rico bonds and an overweight in zero-coupon bonds. In contrast, the Fund’s hedging strategy, an overweight in prerefunded bonds, and an underweight in the transportation sector detracted from performance relative to the Index during the period.

 

 

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 and include management fees and other expenses. 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 or equal to 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 eatonvance.com.

 

  3  


Eaton Vance

Municipal Bond Fund II

September 30, 2016

 

Performance2,3

 

Portfolio Manager Cynthia J. Clemson

 

% Average Annual Total Returns    Inception Date      One Year      Five Years      Ten Years  

Fund at NAV

     11/29/2002         9.27      9.71      5.57

Fund at Market Price

             13.07         6.51         5.41   

Bloomberg Barclays Long (22+) Year Municipal Bond Index

             8.72      6.42      5.29
           
% Premium/Discount to NAV4                                
              –4.86
           
Distributions5                                

Total Distributions per share for the period

            $ 0.672   

Distribution Rate at NAV

              4.35

Taxable-Equivalent Distribution Rate at NAV

              7.69

Distribution Rate at Market Price

              4.57

Taxable-Equivalent Distribution Rate at Market Price

              8.07
           
% Total Leverage6                                

Auction Preferred Shares (APS)

              2.07

Institutional MuniFund Term Preferred (iMTP) Shares

              17.42   

Residual Interest Bond (RIB) Financing

              18.57   

Fund Profile

 

Credit Quality (% of total investments)7,8

 

 

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See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested and include management fees and other expenses. 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 or equal to 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 eatonvance.com.

 

  4  


Eaton Vance

California Municipal Bond Fund II

September 30, 2016

 

Performance2,3

 

Portfolio Manager Craig R. Brandon, CFA

 

% Average Annual Total Returns    Inception Date      One Year      Five Years      Ten Years  

Fund at NAV

     11/29/2002         8.18      9.00      5.09

Fund at Market Price

             8.99         7.27         5.20   

Bloomberg Barclays Long (22+) Year Municipal Bond Index

             8.72      6.42      5.29
           
% Premium/Discount to NAV4                                
              –3.56
           
Distributions5                                

Total Distributions per share for the period

            $ 0.641   

Distribution Rate at NAV

              3.93

Taxable-Equivalent Distribution Rate at NAV

              8.01

Distribution Rate at Market Price

              4.07

Taxable-Equivalent Distribution Rate at Market Price

              8.29
           
% Total Leverage6                                

APS

              1.07

iMTP Shares

              29.59   

RIB Financing

              6.74   

Fund Profile

 

Credit Quality (% of total investments)7,8

 

 

LOGO

    

 

 

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 and include management fees and other expenses. 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 or equal to 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 eatonvance.com.

 

  5  


Eaton Vance

Massachusetts Municipal Bond Fund

September 30, 2016

 

Performance2,3

 

Portfolio Manager Craig R. Brandon, CFA

 

% Average Annual Total Returns    Inception Date      One Year      Five Years      Ten Years  

Fund at NAV

     11/29/2002         11.32      8.01      5.82

Fund at Market Price

             16.93         6.77         4.98   

Bloomberg Barclays Long (22+) Year Municipal Bond Index

             8.72      6.42      5.29
           
% Premium/Discount to NAV4                                
              –4.98
           
Distributions5                                

Total Distributions per share for the period

            $ 0.658   

Distribution Rate at NAV

              3.67

Taxable-Equivalent Distribution Rate at NAV

              6.83

Distribution Rate at Market Price

              3.86

Taxable-Equivalent Distribution Rate at Market Price

              7.19
           
% Total Leverage6                                

APS

              1.44

iMTP Shares

              29.85   

RIB Financing

              3.16   

Fund Profile

 

Credit Quality (% of total investments)7,8

 

 

LOGO

    

 

 

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 and include management fees and other expenses. 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 or equal to 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 eatonvance.com.

 

  6  


Eaton Vance

Michigan Municipal Bond Fund

September 30, 2016

 

Performance2,3

 

Portfolio Manager Cynthia J. Clemson

 

% Average Annual Total Returns    Inception Date      One Year      Five Years      Ten Years  

Fund at NAV

     11/29/2002         11.59      8.43      6.24

Fund at Market Price

             21.36         7.95         6.56   

Bloomberg Barclays Long (22+) Year Municipal Bond Index

             8.72      6.42      5.29
           
% Premium/Discount to NAV4                                
              –5.22
           
Distributions5                                

Total Distributions per share for the period

            $ 0.706   

Distribution Rate at NAV

              4.03

Taxable-Equivalent Distribution Rate at NAV

              7.44

Distribution Rate at Market Price

              4.25

Taxable-Equivalent Distribution Rate at Market Price

              7.84
           
% Total Leverage6                                

APS

              7.54

iMTP Shares

              28.32   

Fund Profile

 

Credit Quality (% of total investments)7,8

 

 

LOGO

    

 

 

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 and include management fees and other expenses. 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 or equal to 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 eatonvance.com.

 

  7  


Eaton Vance

New Jersey Municipal Bond Fund

September 30, 2016

 

Performance2,3

 

Portfolio Manager Adam A. Weigold, CFA

 

% Average Annual Total Returns    Inception Date      One Year      Five Years      Ten Years  

Fund at NAV

     11/29/2002         12.67      8.78      5.80

Fund at Market Price

             18.43         7.66         5.04   

Bloomberg Barclays Long (22+) Year Municipal Bond Index

             8.72      6.42      5.29
           
% Premium/Discount to NAV4                                
              –3.67
           
Distributions5                                

Total Distributions per share for the period

            $ 0.713   

Distribution Rate at NAV

              4.19

Taxable-Equivalent Distribution Rate at NAV

              8.13

Distribution Rate at Market Price

              4.35

Taxable-Equivalent Distribution Rate at Market Price

              8.44
           
% Total Leverage6                                

APS

              3.55

iMTP Shares

              27.70   

RIB Financing

              5.96   

Fund Profile

 

Credit Quality (% of total investments)7,8

 

 

LOGO

    

 

 

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 and include management fees and other expenses. 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 or equal to 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 eatonvance.com.

 

  8  


Eaton Vance

New York Municipal Bond Fund II

September 30, 2016

 

Performance2,3

 

Portfolio Manager Craig R. Brandon, CFA

 

% Average Annual Total Returns    Inception Date      One Year      Five Years      Ten Years  

Fund at NAV

     11/29/2002         8.28      7.33      4.90

Fund at Market Price

             15.94         6.80         5.68   

Bloomberg Barclays Long (22+) Year Municipal Bond Index

             8.72      6.42      5.29
           
% Premium/Discount to NAV4                                
              –1.45
           
Distributions5                                

Total Distributions per share for the period

            $ 0.662   

Distribution Rate at NAV

              4.26

Taxable-Equivalent Distribution Rate at NAV

              8.25

Distribution Rate at Market Price

              4.32

Taxable-Equivalent Distribution Rate at Market Price

              8.37
           
% Total Leverage6                                

APS

              2.94

iMTP Shares

              19.30   

RIB Financing

              18.63   

Fund Profile

 

Credit Quality (% of total investments)7,8

 

 

LOGO

    

 

 

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 and include management fees and other expenses. 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 or equal to 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 eatonvance.com.

 

  9  


Eaton Vance

Ohio Municipal Bond Fund

September 30, 2016

 

Performance2,3

 

Portfolio Manager Cynthia J. Clemson

 

% Average Annual Total Returns    Inception Date      One Year      Five Years      Ten Years  

Fund at NAV

     11/29/2002         11.24      9.62      5.29

Fund at Market Price

             26.20         9.01         5.99   

Bloomberg Barclays Long (22+) Year Municipal Bond Index

             8.72      6.42      5.29
           
% Premium/Discount to NAV4                                
              +1.69
           
Distributions5                                

Total Distributions per share for the period

            $ 0.669   

Distribution Rate at NAV

              4.08

Taxable-Equivalent Distribution Rate at NAV

              7.59

Distribution Rate at Market Price

              4.02

Taxable-Equivalent Distribution Rate at Market Price

              7.48
           
% Total Leverage6                                

APS

              3.98

iMTP Shares

              26.09   

RIB Financing

              3.75   

Fund Profile

 

Credit Quality (% of total investments)7,8

 

 

LOGO

    

 

 

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 and include management fees and other expenses. 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 or equal to 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 eatonvance.com.

 

  10  


Eaton Vance

Pennsylvania Municipal Bond Fund

September 30, 2016

 

Performance2,3

 

Portfolio Manager Adam A. Weigold, CFA

 

% Average Annual Total Returns    Inception Date      One Year      Five Years      Ten Years  

Fund at NAV

     11/29/2002         12.08      8.84      6.22

Fund at Market Price

             25.00         8.41         6.21   

Bloomberg Barclays Long (22+) Year Municipal Bond Index

             8.72      6.42      5.29
           
% Premium/Discount to NAV4                                
              –3.04
           
Distributions5                                

Total Distributions per share for the period

            $ 0.753   

Distribution Rate at NAV

              4.37

Taxable-Equivalent Distribution Rate at NAV

              7.97

Distribution Rate at Market Price

              4.50

Taxable-Equivalent Distribution Rate at Market Price

              8.20
           
% Total Leverage6                                

APS

              1.84

iMTP Shares

              29.48   

RIB Financing

              4.89   

Fund Profile

 

Credit Quality (% of total investments)7,8

 

 

LOGO

    

 

 

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 and include management fees and other expenses. 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 or equal to 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 eatonvance.com.

 

  11  


Eaton Vance

Municipal Bond Funds

September 30, 2016

 

Endnotes and Additional Disclosures

 

 

1 

The views expressed in this report are those of the portfolio manager(s) and are current only through the date stated at the top of this page. These views are subject to change at any time based upon market or other conditions, and Eaton Vance and the Fund(s) disclaim any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Eaton Vance fund. This commentary may contain statements that are not historical facts, referred to as “forward looking statements”. The Fund’s actual future results may differ significantly from those stated in any forward looking statement, depending on factors such as changes in securities or financial markets or general economic conditions, the volume of sales and purchases of Fund shares, the continuation of investment advisory, administrative and service contracts, and other risks discussed from time to time in the Fund’s filings with the Securities and Exchange Commission.

 

2 

Bloomberg Barclays Long (22+) Year Municipal Bond Index is an unmanaged index of municipal bonds traded in the U.S. with maturities of 22 years or more. Prior to August 24, 2016, Bloomberg Barclays Long (22+) Year Municipal Bond Index was named Barclays Long (22+) Year Municipal Bond Index. 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.

 

3 

Performance results reflect the effects of leverage. Performance since inception for an index, if presented, is the performance since the Fund’s or oldest share class’ inception, as applicable. Included in the average annual total return at NAV is the impact of the tender and repurchase of a portion of the Fund’s APS at 95.5% of the Fund’s APS per share liquidation preference. Had this transaction not occurred, the total return at NAV would be lower for the Fund.

 

4 

The shares of the Fund often trade at a discount or premium from their net asset value. The discount or premium of the Fund may vary over time and may be higher or lower than what is quoted in this report. For up-to-date premium/discount information, please refer to http://eatonvance.com/closedend.

 

5 

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 comprised of amounts characterized for federal income tax purposes as tax-exempt income, qualified and non-qualified ordinary dividends, capital gains and nondividend distributions, also known as return of capital. The Fund will determine the federal income tax character of distributions paid to a shareholder after the end of the calendar year. This is reported on the IRS form 1099-DIV and provided to the shareholder shortly after each year-end. For information about the tax character of distributions made in prior calendar years, please refer to Performance-Tax Character of Distributions on the Fund’s webpage available at eatonvance.com.

  The Fund’s distributions are determined by the investment adviser based on its current assessment of the Fund’s long-term return potential. Fund distributions may be affected by numerous factors including changes in Fund performance, the cost of financing for Funds that employ leverage, portfolio holdings, realized and projected returns, and other factors. As portfolio and market conditions change, the rate of distributions paid by the Fund could change. Taxable-equivalent performance is based on the highest combined federal and state income tax rates, where applicable. Lower tax rates would result in lower tax-equivalent performance. Actual tax rates will vary depending on your income, exemptions and deductions. Rates do not include local taxes.

 

6 

Fund employs RIB financing and/or APS and iMTP Shares leverage. The leverage created by RIB investments, APS and iMTP Shares provides an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater price volatility). The cost of leverage rises and falls with changes in short-term interest rates. See “Floating Rate Notes Issued in Conjunction with Securities Held” in the notes to the financial statements for more information about RIB financing. RIB leverage represents the amount of Floating Rate Notes outstanding at period end as a percentage of Fund net assets applicable to common shares plus APS, iMTP Shares and Floating Rate Notes. APS leverage represents the liquidation value of the Fund’s APS outstanding at period end as a percentage of Fund net assets applicable to common shares plus APS, iMTP Shares and Floating Rate Notes. iMTP Shares leverage represents the liquidation value of the Fund’s iMTP Shares outstanding at period end as a percentage of Fund net assets applicable to common shares plus APS, iMTP Shares and Floating Rate Notes. The Fund may be required to maintain prescribed asset coverage for its leverage and may be required to reduce its leverage at an inopportune time.

 

7 

Ratings are based on Moody’s, S&P or Fitch, as applicable. If securities are rated differently by the ratings agencies, the higher rating is applied. Ratings, which are subject to change, apply to the creditworthiness of the issuers of the underlying securities and not to the Fund or its shares. Credit ratings measure the quality of a bond based on the issuer’s creditworthiness, with ratings ranging from AAA, being the highest, to D, being the lowest based on S&P’s measures. Ratings of BBB or higher by S&P or Fitch (Baa or higher by Moody’s) are considered to be investment- grade quality. Credit ratings are based largely on the ratings agency’s analysis at the time of rating. The rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition and does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. Holdings designated as “Not Rated” are not rated by the national ratings agencies stated above.

 

8 

The chart includes the municipal bonds held by a trust that issues residual interest bonds, consistent with the Portfolio of Investments.

 

   Fund profile subject to change due to active management.
 

 

  12  


Eaton Vance

Municipal Bond Fund II

September 30, 2016

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 157.9%   
   
Security  

Principal

Amount

(000’s omitted)

    Value  

Education — 8.1%

  

Houston Higher Education Finance Corp., TX, (St. John’s School), 5.25%, 9/1/33

  $ 565      $ 651,666   

Houston Higher Education Finance Corp., TX, (William Marsh Rice University), 5.00%, 5/15/35

    1,745        1,980,802   

Massachusetts Development Finance Agency, (Northeastern University), 5.25%, 3/1/37

    1,650        2,006,598   

Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.50%, 11/15/36

    2,710        2,977,287   

New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/40(1)

    1,500        1,664,880   

North Carolina Capital Facilities Finance Agency, (Duke University), 5.00%, 10/1/38(1)

    500        549,085   

University of Virginia, 5.00%, 6/1/40

    1,500        1,603,545   
                 
    $ 11,433,863   
                 

Electric Utilities — 2.3%

  

Energy Northwest, WA, (Columbia Generating Station), 5.00%, 7/1/40

  $ 330      $ 393,442   

Pima County Industrial Development Authority, AZ, (Tucson Electric Power Co.), 5.25%, 10/1/40

    1,300        1,457,755   

Unified Government of Wyandotte County/Kansas City Board of Public Utilities, KS, 5.00%, 9/1/36

    685        787,860   

Utility Debt Securitization Authority, NY, 5.00%, 12/15/35

    500        605,440   
                 
    $ 3,244,497   
                 

Escrowed / Prerefunded — 3.6%

  

Connecticut Health and Educational Facilities Authority, (Wesleyan University), Prerefunded to 7/1/20, 5.00%, 7/1/39(1)

  $ 2,200      $ 2,522,850   

South Carolina Public Service Authority, Prerefunded to 1/1/19, 5.50%, 1/1/38

    110        121,219   

South Carolina Public Service Authority, Prerefunded to 1/1/19, 5.50%, 1/1/38

    1,310        1,443,607   

Tennessee School Bond Authority, Prerefunded to 5/1/18, 5.50%, 5/1/38

    1,000        1,073,680   
                 
    $ 5,161,356   
                 

General Obligations — 23.3%

  

California, 5.00%, 12/1/30

  $ 610      $ 751,801   

California, 5.00%, 10/1/33

    2,150        2,655,228   

Chicago Park District, IL, (Harbor Facilities), 5.25%, 1/1/37(1)

    1,680        1,868,093   

Clark County, NV, 5.00%, 7/1/33

    500        593,230   

Delaware Valley Regional Finance Authority, PA, 5.75%, 7/1/32

    2,500        3,313,225   
Security  

Principal

Amount

(000’s omitted)

    Value  

General Obligations (continued)

  

Hawaii, 5.00%, 12/1/29

  $ 2,500      $ 2,918,575   

Hawaii, 5.00%, 12/1/30

    1,000        1,177,990   

Kane, Cook and DuPage Counties School District No. 46, IL, 5.00%, 1/1/33

    2,000        2,295,400   

Mississippi, 5.00%, 10/1/36(1)

    1,725        2,023,115   

New York, 5.00%, 2/15/34(1)

    2,750        3,198,525   

New York, NY, 5.00%, 8/1/31

    2,000        2,395,080   

Oregon, 5.00%, 8/1/36

    1,000        1,165,040   

Texas, (Texas Transportation Commission), 5.00%, 10/1/44

    2,110        2,529,362   

Washington, 5.00%, 2/1/35(1)

    5,250        6,260,310   
                 
    $ 33,144,974   
                 

Hospital — 8.2%

  

Hawaii Department of Budget and Finance, (Hawaii Pacific Health), 5.50%, 7/1/38

  $ 360      $ 431,284   

Highlands County Health Facilities Authority, FL, (Adventist Health System), 5.25%, 11/15/36

    1,285        1,292,325   

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

    1,120        389,592   

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

    3,000        990,720   

New Jersey Health Care Facilities Financing Authority, (Robert Wood Johnson University Hospital), 5.25%, 7/1/35

    615        723,855   

Ohio Higher Educational Facility Commission, (Cleveland Clinic Health System), 5.00%, 1/1/32

    1,550        1,804,262   

Vermont Educational and Health Buildings Financing Agency, (University of Vermont Medical Center), 5.00%, 12/1/46

    2,500        2,940,975   

Wisconsin Health and Educational Facilities Authority, (Ascension Senior Credit Group), 4.50%, 11/15/39

    2,695        3,096,285   
                 
    $ 11,669,298   
                 

Industrial Development Revenue — 0.4%

  

Maricopa County Pollution Control Corp., AZ, (El Paso Electric Co.), 4.50%, 8/1/42

  $ 595      $ 633,901   
                 
    $ 633,901   
                 

Insured – Electric Utilities — 4.5%

  

Chelan County Public Utility District No. 1, WA, (Columbia River), (NPFG), 0.00%, 6/1/23

  $ 6,335      $ 5,542,428   

Louisiana Energy and Power Authority, (AGM), 5.25%, 6/1/38

    735        860,898   
                 
    $ 6,403,326   
                 

Insured – Escrowed / Prerefunded — 16.8%

  

American Municipal Power-Ohio, Inc., OH, (Prairie State Energy Campus), (AGC), Prerefunded to 2/15/19, 5.75%, 2/15/39

  $ 1,000      $ 1,112,890   
 

 

  13   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Fund II

September 30, 2016

 

Portfolio of Investments — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – Escrowed / Prerefunded (continued)

  

Bossier City, LA, Utilities Revenue, (BHAC), Prerefunded to 10/1/18, 5.25%, 10/1/26

  $ 670      $ 727,580   

Bossier City, LA, Utilities Revenue, (BHAC), Prerefunded to 10/1/18, 5.25%, 10/1/27

    420        456,095   

Bossier City, LA, Utilities Revenue, (BHAC), Prerefunded to 10/1/18, 5.50%, 10/1/38

    660        719,987   

Colorado Health Facilities Authority, (Catholic Health), (AGM), Prerefunded to 4/29/18, 5.10%, 10/1/41(1)

    2,200        2,347,752   

District of Columbia Water and Sewer Authority, (AGC), Prerefunded to 10/1/18, 5.00%, 10/1/34(1)

    1,250        1,352,538   

Miami-Dade County Educational Facilities Authority, FL, (University of Miami), (AMBAC), (BHAC), Prerefunded to 4/1/17, 5.00%, 4/1/31

    1,555        1,587,826   

New Jersey Economic Development Authority, (School Facilities Construction), (AGC), Prerefunded to 12/15/18, 5.50%, 12/15/34

    565        622,031   

Palm Beach County Solid Waste Authority, FL, (BHAC), Prerefunded to 10/1/19, 5.00%, 10/1/24

    210        235,019   

Palm Beach County Solid Waste Authority, FL, (BHAC), Prerefunded to 10/1/19, 5.00%, 10/1/26

    425        475,635   

Palm Springs Unified School District, CA, (Election of 2008), (AGC), Prerefunded to 8/1/19, 5.00%, 8/1/33

    2,750        3,068,422   

San Diego County Water Authority, CA, Certificates of Participation, (AGM), Prerefunded to 5/1/18, 5.00%, 5/1/38(1)

    3,250        3,465,670   

South Carolina Public Service Authority, (BHAC), Prerefunded to 1/1/19, 5.50%, 1/1/38

    130        143,259   

South Carolina Public Service Authority, (BHAC), Prerefunded to 1/1/19, 5.50%, 1/1/38

    1,465        1,614,415   

University of South Alabama, (BHAC), Prerefunded to 8/1/18, 5.00%, 8/1/38

    3,900        4,192,968   

Washington Health Care Facilities Authority, (MultiCare Health System), (AGC), Prerefunded to 8/15/19, 6.00%, 8/15/39

    1,545        1,768,716   
                 
    $ 23,890,803   
                 

Insured – General Obligations — 0.7%

  

Cincinnati City School District, OH, (AGM), (FGIC), 5.25%, 12/1/30

  $ 750      $ 1,018,395   
                 
    $ 1,018,395   
                 

Insured – Hospital — 9.7%

  

Arizona Health Facilities Authority, (Banner Health), (BHAC), 5.375%, 1/1/32

  $ 1,750      $ 1,844,378   

California Statewide Communities Development Authority, (Sutter Health), (AGM), 5.05%, 8/15/38(1)

    1,500        1,600,080   

Illinois Finance Authority, (Children’s Memorial Hospital), (AGC), 5.25%, 8/15/47(1)

    2,500        2,657,500   
Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – Hospital (continued)

  

Maricopa County Industrial Development Authority, AZ, (Catholic Healthcare West), (BHAC), 5.25%, 7/1/32

  $ 2,090      $ 2,156,587   

New Jersey Health Care Facilities Financing Authority, (Meridian Health System), Series V, (AGC), 5.00%, 7/1/38

    495        526,537   

New Jersey Health Care Facilities Financing Authority, (Virtua Health), (AGC), 5.50%, 7/1/38

    2,245        2,501,693   

Washington Health Care Facilities Authority, (Providence Health Care), (AGM), 5.25%, 10/1/33

    2,300        2,482,574   
                 
    $ 13,769,349   
                 

Insured – Industrial Development Revenue — 1.1%

  

Pennsylvania Economic Development Financing Authority, (Aqua Pennsylvania, Inc.), (BHAC), 5.00%, 10/1/39

  $ 1,340      $ 1,486,703   
                 
    $ 1,486,703   
                 

Insured – Lease Revenue / Certificates of Participation — 1.2%

  

Essex County Improvement Authority, NJ, (NPFG), 5.50%, 10/1/30

  $ 1,000      $ 1,379,790   

New Jersey Economic Development Authority, (School Facilities Construction), (AGC), 5.50%, 12/15/34

    310        335,866   
                 
    $ 1,715,656   
                 

Insured – Other Revenue — 1.7%

  

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

  $ 2,540      $ 1,290,091   

New York City Industrial Development Agency, NY, (Yankee Stadium), (AGC), 7.00%, 3/1/49

    1,000        1,141,990   
                 
    $ 2,432,081   
                 

Insured – Solid Waste — 0.4%

  

Palm Beach County Solid Waste Authority, FL, (BHAC), 5.00%, 10/1/24

  $ 530      $ 592,975   
                 
    $ 592,975   
                 

Insured – Special Tax Revenue — 5.5%

  

Miami-Dade County, FL, Professional Sports Franchise Facilities, (AGC), 7.00%, (0.00% until 10/1/19), 10/1/39

  $ 3,000      $ 3,654,900   

Pennsylvania Turnpike Commission, (AGM), 5.25%, 7/15/30

    2,540        3,319,272   

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

    4,440        896,747   
                 
    $ 7,870,919   
                 

Insured – Student Loan — 0.9%

  

Maine Educational Loan Authority, (AGC), 5.625%, 12/1/27

  $ 1,105      $ 1,204,119   
                 
    $ 1,204,119   
                 
 

 

  14   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Fund II

September 30, 2016

 

Portfolio of Investments — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – Transportation — 19.2%

  

Chicago, IL, (O’Hare International Airport), (AGM), 5.00%, 1/1/29

  $ 260      $ 307,804   

Chicago, IL, (O’Hare International Airport), (AGM), 5.125%, 1/1/30

    400        473,500   

Chicago, IL, (O’Hare International Airport), (AGM), 5.125%, 1/1/31

    180        212,495   

Chicago, IL, (O’Hare International Airport), (AGM), 5.25%, 1/1/32

    100        118,429   

Clark County, NV, (Las Vegas-McCarran International Airport), (AGM), 5.25%, 7/1/39

    1,585        1,764,406   

E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/22

    7,800        6,991,062   

Manchester, NH, (Manchester-Boston Regional Airport), (AGM), 5.125%, 1/1/30

    1,305        1,386,471   

Maryland Transportation Authority, (AGM), 5.00%, 7/1/41(1)(2)

    10,000        10,672,400   

Metropolitan Washington Airports Authority, D.C., (BHAC), 5.00%, 10/1/24

    1,000        1,114,730   

Metropolitan Washington Airports Authority, D.C., (BHAC), 5.00%, 10/1/29

    535        593,026   

New Jersey Transportation Trust Fund Authority, (AGC), 5.50%, 12/15/38

    1,040        1,119,716   

North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), 5.50%, 1/1/29

    255        276,675   

North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), 5.75%, 1/1/39

    290        316,518   

North Texas Tollway Authority, (BHAC), 5.75%, 1/1/48

    210        222,411   

North Texas Tollway Authority, (BHAC), Prerefunded to 1/1/18, 5.75%, 1/1/48

    1,540        1,632,908   
                 
    $ 27,202,551   
                 

Insured – Water and Sewer — 5.8%

  

Chicago, IL, Wastewater Transmission Revenue, (BHAC), 5.50%, 1/1/38

  $ 1,635      $ 1,712,270   

Houston, TX, Combined Utility System Revenue, (AGM), (BHAC), 5.00%, 11/15/33

    105        109,813   

Houston, TX, Combined Utility System Revenue, (AGM), (BHAC), Prerefunded to 11/15/17, 5.00%, 11/15/33

    330        345,451   

Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/35

    1,000        1,398,140   

Michigan Finance Authority, (Detroit Water and Sewerage Department), (AGM), 5.00%, 7/1/32

    230        270,287   

Michigan Finance Authority, (Detroit Water and Sewerage Department), (AGM), 5.00%, 7/1/33

    195        228,407   

Michigan Finance Authority, (Detroit Water and Sewerage Department), (AGM), 5.00%, 7/1/35

    240        279,283   

Michigan Finance Authority, (Detroit Water and Sewerage Department), (AGM), 5.00%, 7/1/37

    195        225,880   

New York City Municipal Water Finance Authority, NY, (BHAC), 5.75%, 6/15/40

    2,205        2,387,001   
Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – Water and Sewer (continued)

  

Pearland, TX, Waterworks and Sewer Systems, (NPFG), 3.50%, 9/1/31

  $ 1,220      $ 1,230,114   
                 
    $ 8,186,646   
                 

Lease Revenue / Certificates of Participation — 10.4%

  

New Jersey Health Care Facilities Financing Authority, (Hospital Asset Transformation Program), 5.75%, 10/1/31

  $ 2,235      $ 2,488,449   

North Carolina, Capital Improvement Limited Obligation Bonds, 5.00%, 5/1/30

    5,000        5,802,550   

North Carolina, Limited Obligation Bonds, 5.00%, 5/1/26(1)

    5,250        6,517,612   
                 
    $ 14,808,611   
                 

Other Revenue — 1.3%

  

Oregon Department of Administrative Services, Lottery Revenue, 5.25%, 4/1/30

  $ 1,300      $ 1,517,061   

Texas Municipal Gas Acquisition and Supply Corp. III, Gas Supply Revenue, 5.00%, 12/15/30

    260        296,673   
                 
    $ 1,813,734   
                 

Senior Living / Life Care — 0.2%

  

Maryland Health and Higher Educational Facilities Authority, (Charlestown Community, Inc.), 6.125%, 1/1/30

  $ 235      $ 275,004   
                 
    $ 275,004   
                 

Special Tax Revenue — 10.6%

  

Central Puget Sound Regional Transit Authority, WA, Sales and Use Tax Revenue, 5.00%, 11/1/30(1)

  $ 1,850      $ 2,312,482   

Dallas Area Rapid Transit, TX, Sales Tax Revenue, 5.00%, 12/1/35

    405        489,357   

Dallas Area Rapid Transit, TX, Sales Tax Revenue, 5.00%, 12/1/36

    215        259,247   

Homewood City Board of Education, AL, 5.00%, 4/1/32

    1,880        2,169,501   

Massachusetts Bay Transportation Authority, Sales Tax Revenue, 5.25%, 7/1/33

    750        1,042,133   

New York City Transitional Finance Authority, NY, Future Tax Revenue, 3.00%, 2/1/39(1)

    1,750        1,776,285   

New York City Transitional Finance Authority, NY, Future Tax Revenue, 5.50%, 11/1/35(1)(2)

    3,800        4,472,600   

New York Dormitory Authority, Sales Tax Revenue, 5.00%, 3/15/34

    465        554,089   

New York Dormitory Authority, Sales Tax Revenue, 5.00%, 3/15/35

    1,710        2,035,310   
                 
    $ 15,111,004   
                 
 

 

  15   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Fund II

September 30, 2016

 

Portfolio of Investments — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Transportation — 16.8%

  

Chicago, IL, (O’Hare International Airport), 5.00%, 1/1/34

  $ 1,000      $ 1,189,450   

Dallas and Fort Worth, TX, (Dallas/Fort Worth International Airport), 5.25%, 11/1/30

    640        785,792   

Dallas and Fort Worth, TX, (Dallas/Fort Worth International Airport), 5.25%, 11/1/31

    990        1,212,562   

Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/35

    1,715        1,914,094   

Illinois Toll Highway Authority, 5.00%, 12/1/31

    375        457,894   

Los Angeles Department of Airports, CA, (Los Angeles International Airport), 5.25%, 5/15/28

    465        534,666   

Metropolitan Transportation Authority, NY, 5.25%, 11/15/32

    620        766,773   

Metropolitan Transportation Authority, NY, 5.25%, 11/15/38

    865        1,028,892   

Miami-Dade County, FL, (Miami International Airport), 5.00%, 10/1/41

    2,095        2,331,756   

Miami-Dade County, FL, Aviation Revenue, 5.00%, 10/1/37

    1,385        1,649,106   

New York Liberty Development Corp., (4 World Trade Center), 5.00%, 11/15/31

    1,070        1,246,015   

Orlando-Orange County Expressway Authority, FL, 5.00%, 7/1/35

    420        470,908   

Orlando-Orange County Expressway Authority, FL, 5.00%, 7/1/40

    375        420,161   

Port Authority of New York and New Jersey, 5.00%, 12/1/34(1)

    2,040        2,471,072   

Port Authority of New York and New Jersey, 5.00%, 10/15/41

    1,600        1,940,640   

South Carolina Transportation Infrastructure Bank, 5.25%, 10/1/40

    1,000        1,109,630   

Texas Transportation Commission, (Central Texas Turnpike System), 5.00%, 8/15/42

    1,500        1,731,720   

Triborough Bridge and Tunnel Authority, NY, 5.00%, 11/15/37

    2,500        2,662,725   
                 
    $ 23,923,856   
                 

Water and Sewer — 5.2%

  

Detroit, MI, Sewage Disposal System, 5.00%, 7/1/32

  $ 1,555      $ 1,743,435   

Detroit, MI, Sewage Disposal System, 5.25%, 7/1/39

    380        430,863   

Detroit, MI, Water Supply System, 5.25%, 7/1/41

    300        333,612   
Security  

Principal

Amount

(000’s omitted)

    Value  

Water and Sewer (continued)

  

New York City Municipal Water Finance Authority, NY, (Water and Sewer System), 5.00%, 6/15/36

  $ 4,000      $ 4,853,160   
                 
    $ 7,361,070   
                 

Total Tax-Exempt Investments — 157.9%
(identified cost $201,602,425)

   

  $ 224,354,691   
                 

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (3.3)%

  

  $ (4,750,691
                 

Institutional MuniFund Term Preferred Shares, at Liquidation Value — (28.1)%

   

  $ (39,950,000
                 

Other Assets, Less Liabilities — (26.5)%

  

  $ (37,597,731
                 

Net Assets Applicable to Common Shares — 100.0%

  

  $ 142,056,269   
                 

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

At September 30, 2016, the concentration of the Fund’s investments in the various states and territories, determined as a percentage of total investments, is as follows:

 

New York      15.7%   
Others, representing less than 10% individually      84.3%   

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 September 30, 2016, 42.7% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 0.5% to 15.2% of total investments.

 

(1) 

Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1G).

 

(2) 

Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $4,795,000.

 

 

Futures Contracts  
Description   Contracts      Position     

Expiration

Month/Year

     Aggregate Cost      Value     

Net

Unrealized

Appreciation

 

Interest Rate Futures

                
U.S. Long Treasury Bond     29         Short         Dec-16       $ (4,958,627    $ (4,876,531    $ 82,096   
                                                 $ 82,096   

 

  16   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Fund II

September 30, 2016

 

Portfolio of Investments — continued

 

 

Abbreviations:

 

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.
 

 

  17   See Notes to Financial Statements.


Eaton Vance

California Municipal Bond Fund II

September 30, 2016

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 163.3%   
   
Security  

Principal

Amount

(000’s omitted)

    Value  

Education — 12.8%

  

California Educational Facilities Authority, (Harvey Mudd College), 5.25%, 12/1/31

  $ 395      $ 467,830   

California Educational Facilities Authority, (Harvey Mudd College), 5.25%, 12/1/36

    160        189,501   

California Educational Facilities Authority, (Loyola Marymount University), 5.00%, 10/1/22

    70        82,534   

California Educational Facilities Authority, (Loyola Marymount University), 5.00%, 10/1/30

    380        420,709   

California Educational Facilities Authority, (Santa Clara University), 5.00%, 2/1/29

    890        992,386   

California Educational Facilities Authority, (University of San Francisco), 6.125%, 10/1/36

    115        141,228   

California Educational Facilities Authority, (University of Southern California), Prerefunded to 10/1/18, 5.25%, 10/1/39

    1,200        1,306,644   

California Educational Facilities Authority, (University of the Pacific), 5.00%, 11/1/30

    330        383,305   

California Municipal Finance Authority, (University of San Diego), 5.00%, 10/1/31

    210        244,747   

California Municipal Finance Authority, (University of San Diego), 5.00%, 10/1/35

    145        169,219   

California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/26

    405        480,674   

California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/27

    425        500,582   

California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/28

    450        527,189   

University of California, Prerefunded to 5/15/19, 5.25%, 5/15/39

    165        183,864   

University of California, Prerefunded to 5/15/19, 5.25%, 5/15/39

    550        612,881   
                 
    $ 6,703,293   
                 

Electric Utilities — 5.8%

  

Los Angeles Department of Water and Power, Electric System Revenue, 5.25%, 7/1/32

  $ 745      $ 803,744   

Sacramento Municipal Utility District, 5.00%, 8/15/30

    420        506,835   

Sacramento Municipal Utility District, 5.00%, 8/15/31

    125        150,451   

Southern California Public Power Authority, (Tieton Hydropower), 5.00%, 7/1/30

    1,000        1,133,700   

Vernon, Electric System Revenue, 5.125%, 8/1/21

    405        448,266   
                 
    $ 3,042,996   
                 

Escrowed / Prerefunded — 3.8%

  

California Educational Facilities Authority, (Claremont McKenna College), Prerefunded to 1/1/19, 5.00%, 1/1/39

  $ 1,370      $ 1,497,711   
Security  

Principal

Amount

(000’s omitted)

    Value  

Escrowed / Prerefunded (continued)

  

University of California, Prerefunded to 5/15/19, 5.25%, 5/15/39

  $ 285      $ 317,584   

Vernon, Electric System Revenue, Prerefunded to 8/1/19, 5.125%, 8/1/21

    170        184,838   
                 
    $ 2,000,133   
                 

General Obligations — 34.9%

  

California, 5.00%, 10/1/31

  $ 565      $ 702,046   

California, 5.50%, 11/1/35

    1,300        1,522,703   

Midpeninsula Regional Open Space District, 5.00%, 9/1/27

    1,135        1,486,419   

Midpeninsula Regional Open Space District, 5.00%, 9/1/29

    335        431,162   

Mountain View Whisman School District, (Election of 2012), 4.00%, 9/1/42(1)

    2,000        2,247,120   

Palo Alto, (Election of 2008), 5.00%, 8/1/40

    1,850        2,109,462   

San Bernardino Community College District, 4.00%, 8/1/30

    1,510        1,691,774   

San Diego Community College District, (Election of 2002), 5.00%, 8/1/32

    720        838,094   

San Diego Community College District, (Election of 2006), 5.00%, 8/1/31

    455        530,785   

San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/35

    410        491,754   

San Mateo Union High School District, (Election of 2006), 5.00%, 9/1/27

    685        852,188   

San Mateo Union High School District, (Election of 2006), 5.00%, 9/1/28

    1,170        1,446,541   

Southwestern Community College District, 5.00%, 8/1/27

    485        634,264   

Southwestern Community College District, 5.00%, 8/1/28

    575        742,624   

Torrance Unified School District, (Election of 2008), 5.00%, 8/1/35

    1,125        1,357,166   

Ventura County Community College District, 5.00%, 8/1/29

    1,000        1,229,000   
                 
    $ 18,313,102   
                 

Hospital — 12.9%

  

California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%, 8/15/39

  $ 1,400      $ 1,545,278   

California Health Facilities Financing Authority, (City of Hope), 5.00%, 11/15/32

    335        398,720   

California Health Facilities Financing Authority, (City of Hope), 5.00%, 11/15/35

    475        562,618   

California Health Facilities Financing Authority, (Memorial Health Services), 5.00%, 10/1/27

    750        898,485   

California Health Facilities Financing Authority, (Providence St. Joseph Health), 5.00%, 10/1/31

    500        627,640   

California Health Facilities Financing Authority, (St. Joseph Health System), 5.00%, 7/1/33

    600        708,582   

California Health Facilities Financing Authority, (St. Joseph Health System), 5.00%, 7/1/37

    280        328,362   
 

 

  18   See Notes to Financial Statements.


Eaton Vance

California Municipal Bond Fund II

September 30, 2016

 

Portfolio of Investments — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Hospital (continued)

  

California Statewide Communities Development Authority, (Cottage Health System), 5.25%, 11/1/30

  $ 1,000      $ 1,142,310   

Washington Township Health Care District, 5.00%, 7/1/32

    555        567,338   
                 
    $ 6,779,333   
                 

Insured – Electric Utilities — 3.4%

  

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/34

  $ 1,035      $ 1,135,281   

Sacramento Municipal Utility District, (AGM), 5.00%, 8/15/27

    610        656,482   
                 
    $ 1,791,763   
                 

Insured – Escrowed / Prerefunded — 27.1%

  

Antelope Valley Community College District, (Election of 2004), (NPFG), Prerefunded to 8/1/17, 5.25%, 8/1/39

  $ 725      $ 752,412   

California Infrastructure and Economic Development Bank, (Bay Area Toll Bridges), (AMBAC), Prerefunded to 1/1/28, 5.00%, 7/1/33

    1,150        1,551,856   

California Infrastructure and Economic Development Bank, (Bay Area Toll Bridges), (AMBAC), Prerefunded to 1/1/28, 5.00%, 7/1/36

    525        708,456   

Carlsbad Unified School District, (Election of 2006), (NPFG), Prerefunded to 8/1/17, 5.25%, 8/1/32

    1,500        1,556,595   

Clovis Unified School District, (NPFG), Escrowed to Maturity, 0.00%, 8/1/20

    3,130        3,007,899   

East Bay Municipal Utility District, Water System Revenue, (AGM), (FGIC), Prerefunded to 6/1/17, 5.00%, 6/1/32

    100        102,862   

Orange County Water District, Certificates of Participation, (NPFG), Prerefunded to 8/15/32, 5.00%, 8/15/34

    395        530,007   

Palm Springs Unified School District, (Election of 2008), (AGC), Prerefunded to 8/1/19, 5.00%, 8/1/33

    1,250        1,394,737   

Riverside Community College District, (Election of 2004), (AGM), (NPFG), Prerefunded to 8/1/17, 5.00%, 8/1/32

    1,040        1,077,159   

Sacramento Municipal Utility District, (AGM), Prerefunded to 8/15/18, 5.00%, 8/15/27

    390        420,514   

San Diego County Water Authority, Certificates of Participation, (AGM), Prerefunded to 5/1/18, 5.00%, 5/1/38(1)

    1,750        1,866,130   

Santa Clara Valley Transportation Authority, Sales Tax Revenue, (AMBAC), Prerefunded to 4/1/17, 5.00%, 4/1/32

    1,225        1,251,240   
                 
    $ 14,219,867   
                 

Insured – General Obligations — 12.9%

  

Arcadia Unified School District, (Election of 2006), (AGM), 0.00%, 8/1/38

  $ 7,125      $ 2,471,662   

Arcadia Unified School District, (Election of 2006), (AGM), 0.00%, 8/1/40

    2,525        793,835   

El Camino Hospital District, (NPFG), 4.45%, 8/1/36

    575        581,130   

Union Elementary School District, (Election of 1999), (NPFG), 0.00%, 9/1/22

    3,200        2,910,496   
                 
    $ 6,757,123   
                 
Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – Hospital — 3.6%

  

California Statewide Communities Development Authority, (Sutter Health), (AGM), 5.05%, 8/15/38(1)

  $ 1,750      $ 1,866,760   
                 
    $ 1,866,760   
                 

Insured – Special Tax Revenue — 7.2%

  

Hesperia Public Financing Authority, (Redevelopment and Housing Projects), (XLCA), 5.00%, 9/1/37

  $ 1,535      $ 1,557,979   

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

    2,675        540,270   

Successor Agency to Hawthorne Community Redevelopment Agency, (AGM), 5.00%, 9/1/34

    1,400        1,699,446   
                 
    $ 3,797,695   
                 

Insured – Transportation — 5.5%

  

San Joaquin Hills Transportation Corridor Agency, (NPFG), 0.00%, 1/15/27

  $ 3,520      $ 2,536,336   

San Jose, Airport Revenue, (AMBAC), 5.00%, 3/1/33

    330        335,610   
                 
    $ 2,871,946   
                 

Insured – Water and Sewer — 0.9%

  

Riverside, Water System Revenue, (AGM), 5.00%, 10/1/38

  $ 445      $ 481,250   
                 
    $ 481,250   
                 

Lease Revenue / Certificates of Participation — 1.1%

  

California Public Works Board, 5.00%, 11/1/38

  $ 480      $ 576,096   
                 
    $ 576,096   
                 

Other Revenue — 1.5%

  

California Infrastructure and Economic Development Bank, (The Scripps Research Institute), 5.00%, 7/1/22

  $ 200      $ 241,630   

California Infrastructure and Economic Development Bank, (The Scripps Research Institute), 5.00%, 7/1/23

    200        247,254   

California Infrastructure and Economic Development Bank, (The Scripps Research Institute), 5.00%, 7/1/25

    250        319,167   
                 
    $ 808,051   
                 

Special Tax Revenue — 7.0%

  

Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue, 5.00%, 7/1/31

  $ 1,490      $ 1,591,126   

San Francisco Bay Area Rapid Transit District, Sales Tax Revenue, 5.00%, 7/1/28

    1,300        1,474,824   

Successor Agency to La Quinta Redevelopment Agency, 5.00%, 9/1/29

    500        612,080   
                 
    $ 3,678,030   
                 
 

 

  19   See Notes to Financial Statements.


Eaton Vance

California Municipal Bond Fund II

September 30, 2016

 

Portfolio of Investments — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Transportation — 11.3%

  

Bay Area Toll Authority, Toll Bridge Revenue, (San Francisco Bay Area), Prerefunded to 4/1/19, 5.25%, 4/1/29

  $ 1,190      $ 1,319,389   

Long Beach, Harbor Revenue, 5.00%, 5/15/27

    540        617,981   

Los Angeles Department of Airports, (Los Angeles International Airport), 5.00%, 5/15/35(1)(2)

    1,060        1,208,093   

Los Angeles Harbor Department, 5.00%, 8/1/25

    1,250        1,482,325   

San Francisco City and County Airport Commission, (San Francisco International Airport), 5.00%, 5/1/35

    635        713,575   

San Jose, Airport Revenue, 5.00%, 3/1/20

    500        564,545   
                 
    $ 5,905,908   
                 

Water and Sewer — 11.6%

  

Los Angeles, Wastewater System Revenue, 5.00%, 6/1/34

  $ 2,000      $ 2,464,600   

Metropolitan Water District of Southern California, 5.00%, 1/1/39

    1,050        1,147,009   

Rancho California Water District Financing Authority, 5.00%, 8/1/46(3)

    2,000        2,451,060   
                 
    $ 6,062,669   
                 

Total Tax-Exempt Investments — 163.3%
(identified cost $77,945,048)

   

  $ 85,656,015   
                 
Security  

Principal

Amount

(000’s omitted)

    Value  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (1.7)%

  

  $ (900,067
                 

Institutional MuniFund Term Preferred Shares, at Liquidation Value — (47.3)%

   

  $ (24,800,000
                 

Other Assets, Less Liabilities — (14.3)%

  

  $ (7,507,431
                 

Net Assets Applicable to Common Shares — 100.0%

  

  $ 52,448,517   
                 

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

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 September 30, 2016, 37.1% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 0.1% to 17.1% of total investments.

 

(1) 

Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1G).

 

(2) 

Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $413,093.

 

(3) 

When-issued security.

 

 

Futures Contracts  
Description   Contracts      Position     

Expiration

Month/Year

     Aggregate Cost      Value     

Net

Unrealized

Appreciation

 

Interest Rate Futures

                
U.S. 10-Year Treasury Note     15         Short         Dec-16       $ (1,968,722    $ (1,966,875    $ 1,847   
U.S. Long Treasury Bond     15         Short         Dec-16         (2,564,807      (2,522,344      42,463   
                                                 $ 44,310   

Abbreviations:

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
FGIC     Financial Guaranty Insurance Company
NPFG     National Public Finance Guaranty Corp.
XLCA     XL Capital Assurance, Inc.
 

 

  20   See Notes to Financial Statements.


Eaton Vance

Massachusetts Municipal Bond Fund

September 30, 2016

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 147.8%   
   
Security  

Principal

Amount

(000’s omitted)

    Value  

Bond Bank — 6.0%

  

Massachusetts Water Pollution Abatement Trust, 5.25%, 8/1/33

  $ 585      $ 808,862   

Massachusetts Water Pollution Abatement Trust, 5.25%, 8/1/34

    640        893,126   
                 
    $ 1,701,988  
                 

Education — 10.6%

  

Massachusetts Development Finance Agency, (Milton Academy), 5.00%, 9/1/35

  $ 750      $ 851,280   

Massachusetts Health and Educational Facilities Authority, (Northeastern University), 5.00%, 10/1/35

    870        983,074   

University of Massachusetts Building Authority, 5.00%, 11/1/39

    1,000        1,192,140   
                 
    $ 3,026,494   
                 

Escrowed / Prerefunded — 9.5%

  

Massachusetts Bay Transportation Authority, Prerefunded to 7/1/18, 5.25%, 7/1/34

  $ 25      $ 26,916   

Massachusetts Bay Transportation Authority, Prerefunded to 7/1/18, 5.25%, 7/1/34

    70        75,366   

Massachusetts Health and Educational Facilities Authority, (Lahey Clinic Medical Center), Prerefunded to 8/15/17, 5.25%, 8/15/28

    400        415,512   

Massachusetts Health and Educational Facilities Authority, (Massachusetts Institute of Technology), Prerefunded to 7/1/18, 5.50%, 7/1/36

    1,000        1,080,440   

Massachusetts Health and Educational Facilities Authority, (Tufts University), Prerefunded to 8/15/18, 5.375%, 8/15/38

    1,025        1,110,731   
                 
    $ 2,708,965   
                 

General Obligations — 10.0%

  

Boston, 4.00%, 4/1/24

  $ 200      $ 226,024   

Danvers, 5.25%, 7/1/36

    565        669,536   

Plymouth, 5.00%, 5/1/26

    250        291,580   

Plymouth, 5.00%, 5/1/31

    225        259,954   

Plymouth, 5.00%, 5/1/32

    205        236,847   

Wayland, 5.00%, 2/1/33

    340        392,346   

Wayland, 5.00%, 2/1/36

    510        587,357   

Winchester, 5.00%, 4/15/36

    160        185,707   
                 
    $ 2,849,351   
                 

Hospital — 19.3%

  

Massachusetts Development Finance Agency, (CareGroup), 5.00%, 7/1/25

  $ 400      $ 502,672   

Massachusetts Development Finance Agency, (CareGroup), 5.00%, 7/1/33

    120        144,127   
Security  

Principal

Amount

(000’s omitted)

    Value  

Hospital (continued)

  

Massachusetts Development Finance Agency, (Children’s Hospital), 5.00%, 10/1/31

  $ 525      $ 642,243   

Massachusetts Development Finance Agency, (Lahey Health System Obligated Group), 5.00%, 8/15/40

    750        888,225   

Massachusetts Health and Educational Facilities Authority, (Dana-Farber Cancer Institute), 5.00%, 12/1/37

    775        837,434   

Massachusetts Health and Educational Facilities Authority, (Partners HealthCare System), 5.00%, 7/1/34

    500        553,660   

Massachusetts Health and Educational Facilities Authority, (Partners HealthCare System), 5.00%, 7/1/39

    750        827,040   

Massachusetts Health and Educational Facilities Authority, (Southcoast Health System), 5.00%, 7/1/29

    1,000        1,083,580   
                 
    $ 5,478,981   
                 

Insured – Education — 14.9%

  

Massachusetts College Building Authority, (XLCA), 5.50%, 5/1/39

  $ 700      $ 965,930   

Massachusetts Development Finance Agency, (Boston College), (NPFG), 5.00%, 7/1/38

    750        773,010   

Massachusetts Development Finance Agency, (Boston University), (XLCA), 6.00%, 5/15/59

    1,105        1,489,750   

Massachusetts Development Finance Agency, (College of the Holy Cross), (AMBAC), 5.25%, 9/1/32(1)(2)

    750        1,018,305   
                 
    $ 4,246,995   
                 

Insured – Electric Utilities — 4.2%

  

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/23

  $ 1,095      $ 1,211,037   
                 
    $ 1,211,037   
                 

Insured – Escrowed / Prerefunded — 16.7%

  

Massachusetts College Building Authority, (NPFG), Escrowed to Maturity, 0.00%, 5/1/26

  $ 2,900      $ 2,443,482   

Massachusetts School Building Authority, Dedicated Sales Tax Revenue, (AMBAC), Prerefunded to 8/15/17, 5.00%, 8/15/37(1)

    1,155        1,197,692   

Revere, (AGC), Prerefunded to 4/1/19, 5.00%, 4/1/39

    1,000        1,101,770   
                 
    $ 4,742,944   
                 

Insured – General Obligations — 9.3%

  

Massachusetts, (AMBAC), 5.50%, 8/1/30

  $ 1,900      $ 2,638,853   
                 
    $ 2,638,853   
                 
 

 

  21   See Notes to Financial Statements.


Eaton Vance

Massachusetts Municipal Bond Fund

September 30, 2016

 

Portfolio of Investments — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – Hospital — 0.9%

  

Massachusetts Health and Educational Facilities Authority, (Cape Cod Healthcare), (AGC), 5.00%, 11/15/25

  $ 220      $ 247,678   
                 
    $ 247,678   
                 

Insured – Lease Revenue / Certificates of Participation — 4.7%

  

Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27

  $ 1,000      $ 1,328,440   
                 
    $ 1,328,440   
                 

Insured – Other Revenue — 2.1%

  

Massachusetts Development Finance Agency, (WGBH Educational Foundation), (AMBAC), 5.75%, 1/1/42

  $ 415      $ 600,298   
                 
    $ 600,298   
                 

Insured – Special Tax Revenue — 12.2%

  

Martha’s Vineyard Land Bank, (BAM), 5.00%, 5/1/25

  $ 605      $ 757,502   

Martha’s Vineyard Land Bank, (BAM), 5.00%, 5/1/28

    805        985,151   

Massachusetts Bay Transportation Authority, Sales Tax Revenue, (NPFG), 5.50%, 7/1/28

    400        548,496   

Massachusetts School Building Authority, Dedicated Sales Tax Revenue, (AMBAC), 5.00%, 8/15/37(1)

    5        5,185   

Massachusetts, Special Obligation, Dedicated Tax Revenue, (NPFG), 5.50%, 1/1/29

    750        1,013,565   

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

    770        155,517   
                 
    $ 3,465,416   
                 

Insured – Water and Sewer — 4.7%

  

Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/36

  $ 960      $ 1,346,774   
                 
    $ 1,346,774   
                 

Other Revenue — 3.1%

  

Massachusetts Health and Educational Facilities Authority, (Isabella Stewart Gardner Museum), Prerefunded to 5/1/19, 5.00%, 5/1/25

  $ 320      $ 353,504   

Massachusetts Health and Educational Facilities Authority, (Isabella Stewart Gardner Museum), Prerefunded to 5/1/19, 5.00%, 5/1/29

    490        541,303   
                 
    $ 894,807   
                 

Special Tax Revenue — 4.8%

  

Massachusetts Bay Transportation Authority, 5.00%, 7/1/35

  $ 1,210      $ 1,368,934   
                 
    $ 1,368,934   
                 
Security  

Principal

Amount

(000’s omitted)

    Value  

Transportation — 11.8%

  

Massachusetts Department of Transportation, (Metropolitan Highway System), 5.00%, 1/1/32

  $ 1,000      $ 1,119,490   

Massachusetts Department of Transportation, (Metropolitan Highway System), 5.00%, 1/1/37

    500        555,345   

Massachusetts Port Authority, 5.00%, 7/1/28

    250        286,490   

Massachusetts Port Authority, 5.00%, 7/1/34

    435        491,285   

Massachusetts Port Authority, 5.00%, 7/1/45

    750        896,550   
                 
    $ 3,349,160   
                 

Water and Sewer — 3.0%

  

Boston Water & Sewer Commission, Prerefunded to 11/1/19, 5.00%, 11/1/27

  $ 750      $ 843,419   
                 
    $ 843,419   
                 

Total Tax-Exempt Investments — 147.8%
(identified cost $36,132,646)

   

  $ 42,050,534   
                 

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (2.2)%

  

  $ (625,023
                 

Institutional MuniFund Term Preferred Shares, at Liquidation Value — (45.5)%

   

  $ (12,950,000
                 

Other Assets, Less Liabilities — (0.1)%

  

  $ (36,058
                 

Net Assets Applicable to Common Shares — 100.0%

  

  $ 28,439,453   
                 

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

The Fund invests primarily in debt securities issued by Massachusetts municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2016, 47.2% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 3.2% to 16.1% of total investments.

 

(1) 

Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1G).

 

(2) 

Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $518,305.

 

 

  22   See Notes to Financial Statements.


Eaton Vance

Massachusetts Municipal Bond Fund

September 30, 2016

 

Portfolio of Investments — continued

 

 

 

Futures Contracts  
Description   Contracts      Position     

Expiration

Month/Year

     Aggregate Cost      Value     

Net

Unrealized

Appreciation

 

Interest Rate Futures

                
U.S. Long Treasury Bond     9         Short         Dec-16       $ (1,538,884    $ (1,513,406    $ 25,478   
                                                 $ 25,478   

Abbreviations:

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
BAM     Build America Mutual Assurance Co.
NPFG     National Public Finance Guaranty Corp.
XLCA     XL Capital Assurance, Inc.
 

 

  23   See Notes to Financial Statements.


Eaton Vance

Michigan Municipal Bond Fund

September 30, 2016

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 152.4%   
   
Security  

Principal

Amount

(000’s omitted)

    Value  

Education — 5.9%

  

Michigan Technological University, 4.00%, 10/1/36

  $ 570      $ 616,239   

Wayne State University, 5.00%, 11/15/40

    675        782,102   
                 
    $ 1,398,341   
                 

Electric Utilities — 7.4%

  

Holland, Electric Utility System, 5.00%, 7/1/39

  $ 865      $ 1,000,355   

Michigan Public Power Agency, 5.00%, 1/1/43

    700        764,694   
                 
    $ 1,765,049   
                 

General Obligations — 25.8%

  

Buchanan Community Schools, 4.00%, 5/1/31

  $ 500      $ 544,830   

Comstock Park Public Schools, 5.125%, 5/1/31

    205        235,037   

Comstock Park Public Schools, 5.25%, 5/1/33

    165        191,738   

East Grand Rapids Public Schools, 5.00%, 5/1/39

    665        772,737   

Grass Lake Community Schools, 5.00%, 5/1/30

    430        516,890   

Lansing Community College, 5.00%, 5/1/30

    1,000        1,184,130   

Plymouth-Canton Community Schools, 4.00%, 5/1/33

    750        810,810   

Walled Lake Consolidated School District, 5.00%, 5/1/34

    635        742,886   

Watervliet Public Schools, 5.00%, 5/1/38

    1,000        1,162,750   
                 
    $ 6,161,808   
                 

Hospital — 23.6%

  

Grand Traverse Hospital, 5.375%, 7/1/35

  $ 750      $ 847,290   

Kalamazoo Hospital Finance Authority, (Bronson Health Care Group), 5.25%, 5/15/33

    500        570,125   

Kent Hospital Finance Authority, (Spectrum Health System), 5.00%, 1/15/31

    750        847,133   

Michigan Finance Authority, (McLaren Health Care), 5.00%, 6/1/35

    750        849,360   

Michigan Finance Authority, (Oakwood Obligated Group), 5.00%, 11/1/32

    500        573,650   

Michigan Hospital Finance Authority, (Trinity Health Corp.), 5.00%, 12/1/48

    700        781,354   

Royal Oak Hospital Finance Authority, (William Beaumont Hospital), 5.00%, 9/1/39

    1,000        1,151,870   
                 
    $ 5,620,782   
                 

Insured – Bond Bank — 3.0%

  

Puerto Rico Municipal Finance Agency, (AGM), 5.00%, 8/1/27

  $ 700      $ 714,014   
                 
    $ 714,014   
                 
Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – Education — 2.0%

  

Ferris State University, (AGC), 5.125%, 10/1/33

  $ 435      $ 467,629   
                 
    $ 467,629   
                 

Insured – Electric Utilities — 2.7%

  

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26

  $ 610      $ 657,543   
                 
    $ 657,543   
                 

Insured – Escrowed / Prerefunded — 32.4%

  

Battle Creek, (BAM), Prerefunded to 6/1/18, 5.00%, 6/1/33

  $ 250      $ 267,223   

Grand Rapids Water Supply System, (AGC), Prerefunded to 1/1/19, 5.00%, 1/1/29

    1,000        1,091,800   

Michigan Building Authority, (AGM), (FGIC), 0.00%, 10/15/29

    440        231,462   

Michigan Building Authority, (AGM), (FGIC), Prerefunded to 10/15/16, 0.00%, 10/15/29

    560        294,588   

Michigan Building Authority, (NPFG), 0.00%, 10/15/30

    1,440        720,029   

Michigan Building Authority, (NPFG), Prerefunded to 10/15/16, 0.00%, 10/15/30

    1,060        530,021   

Michigan Hospital Finance Authority, (St. John Health System), (AMBAC), Escrowed to Maturity, 5.00%, 5/15/28

    1,135        1,139,165   

Michigan House of Representatives, (AMBAC), Escrowed to Maturity, 0.00%, 8/15/23

    2,615        2,344,086   

Royal Oak, (AGC), Prerefunded to 10/1/18, 6.25%, 10/1/28

    1,000        1,107,010   
                 
    $ 7,725,384   
                 

Insured – General Obligations — 25.3%

  

Bay City Brownfield Redevelopment Authority, (BAM), 5.375%, 10/1/38

  $ 500      $ 590,415   

Livonia Public Schools, (AGM), 5.00%, 5/1/43

    750        859,268   

Okemos Public Schools, (NPFG), 0.00%, 5/1/19

    1,330        1,275,377   

Pinconning Area Schools, (AGM), Prerefunded to 5/1/17, 5.00%, 5/1/33

    1,000        1,023,050   

South Haven Public Schools, (AGM), 5.00%, 5/1/40

    500        587,595   

South Haven Public Schools, (BAM), 5.00%, 5/1/41

    950        1,108,887   

Westland Tax Increment Finance Authority, (BAM), 5.25%, 4/1/34

    500        584,340   
                 
    $ 6,028,932   
                 

Insured – Special Tax Revenue — 1.3%

  

Puerto Rico Sales Tax Financing Corp., (AGM), 0.00%, 8/1/33

  $ 560      $ 198,895   

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

    615        124,212   
                 
    $ 323,107   
                 
 

 

  24   See Notes to Financial Statements.


Eaton Vance

Michigan Municipal Bond Fund

September 30, 2016

 

Portfolio of Investments — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – Water and Sewer — 9.0%

  

Michigan Finance Authority, (Detroit Water & Sewerage Department), (AGM), 5.00%, 7/1/31

  $ 1,500      $ 1,769,700   

Puerto Rico Aqueduct and Sewer Authority, (AGC), 5.00%, 7/1/28

    355        366,090   
                 
    $ 2,135,790   
                 

Lease Revenue / Certificates of Participation — 4.6%

  

Michigan Strategic Fund, (Facility for Rare Isotope Beams), 4.00%, 3/1/30

  $ 1,000      $ 1,100,990   
                 
    $ 1,100,990   
                 

Special Tax Revenue — 4.9%

  

Michigan Trunk Line Fund, 5.00%, 11/15/36

  $ 1,000      $ 1,165,300   
                 
    $ 1,165,300   
                 

Water and Sewer — 4.5%

  

Grand Rapids, Sanitary Sewer System, 5.00%, 1/1/28

  $ 605      $ 789,186   

Port Huron, Water Supply System, 5.25%, 10/1/31

    250        278,530   
                 
    $ 1,067,716   
                 

Total Tax-Exempt Investments — 152.4%
(identified cost $32,777,759)

   

  $ 36,332,385   
                 

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (11.7)%

  

  $ (2,800,313
                 

Institutional MuniFund Term Preferred Shares, at Liquidation Value — (44.2)%

   

  $ (10,525,000
                 

Other Assets, Less Liabilities — 3.5%

  

  $ 827,705   
                 

Net Assets Applicable to Common Shares — 100.0%

  

  $ 23,834,777   
                 

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

The Fund invests primarily in debt securities issued by Michigan municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2016, 49.7% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 1.4% to 15.6% of total investments.

Abbreviations:

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
BAM     Build America Mutual Assurance Co.
FGIC     Financial Guaranty Insurance Company
NPFG     National Public Finance Guaranty Corp.
 

 

  25   See Notes to Financial Statements.


Eaton Vance

New Jersey Municipal Bond Fund

September 30, 2016

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 157.4%   
   
Security  

Principal

Amount

(000’s omitted)

    Value  

Education — 4.7%

  

New Jersey Educational Facilities Authority, (Montclair State University), 5.00%, 7/1/33

  $ 340      $ 402,713   

New Jersey Educational Facilities Authority, (Montclair State University), 5.00%, 7/1/34

    210        248,084   

New Jersey Educational Facilities Authority, (Ramapo College), 5.00%, 7/1/37

    360        409,172   

New Jersey Educational Facilities Authority, (Ramapo College), 5.00%, 7/1/40

    690        799,537   
                 
    $ 1,859,506   
                 

Escrowed / Prerefunded — 2.4%

  

New Jersey Health Care Facilities Financing Authority, (AtlantiCare Regional Medical Center), Prerefunded to 7/1/17, 5.00%, 7/1/37

  $ 515      $ 531,094   

New Jersey Health Care Facilities Financing Authority, (Hospital Asset Transformation Program), Prerefunded to 10/1/18, 5.25%, 10/1/38

    135        146,770   

Rutgers State University, Prerefunded to 5/1/19, 5.00%, 5/1/39

    250        276,175   
                 
    $ 954,039   
                 

General Obligations — 4.0%

  

Monmouth County Improvement Authority, 5.00%, 1/15/27

  $ 1,375      $ 1,586,406   
                 
    $ 1,586,406   
                 

Hospital — 12.0%

  

Camden County Improvement Authority, (Cooper Health System), 5.75%, 2/15/42

  $ 250      $ 297,375   

New Jersey Health Care Facilities Financing Authority, (Barnabas Health Obligated Group), 4.25%, 7/1/44

    450        489,123   

New Jersey Health Care Facilities Financing Authority, (Meridian Health System), 5.00%, 7/1/26

    295        346,542   

New Jersey Health Care Facilities Financing Authority, (Palisades Medical Center), 5.25%, 7/1/31

    750        870,068   

New Jersey Health Care Facilities Financing Authority, (Princeton HealthCare System), 5.00%, 7/1/32

    400        490,136   

New Jersey Health Care Facilities Financing Authority, (Princeton HealthCare System), 5.00%, 7/1/39

    685        818,945   

New Jersey Health Care Facilities Financing Authority, (Robert Wood Johnson University Hospital), 5.00%, 7/1/34

    1,200        1,412,508   
                 
    $ 4,724,697   
                 
Security  

Principal

Amount

(000’s omitted)

    Value  

Housing — 2.6%

  

New Jersey Housing and Mortgage Finance Agency, (Single Family Housing), 4.375%, 4/1/28

  $ 940      $ 1,017,804   
                 
    $ 1,017,804   
                 

Insured – Education — 2.6%

  

New Jersey Educational Facilities Authority, (Rowan University), (AGM), (FGIC), 3.00%, 7/1/27

  $ 920      $ 924,692   

New Jersey Educational Facilities Authority, (William Paterson University), (AGC), 4.75%, 7/1/34

    85        90,103   

New Jersey Educational Facilities Authority, (William Paterson University), (AGC), 5.00%, 7/1/38

    20        21,294   
                 
    $ 1,036,089   
                 

Insured – Electric Utilities — 2.6%

  

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26

  $ 615      $ 662,933   

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/35

    335        366,393   
                 
    $ 1,029,326   
                 

Insured – Escrowed / Prerefunded — 21.5%

  

Bayonne, (AGM), Prerefunded to 7/1/19, 5.50%, 7/1/39

  $ 1,000      $ 1,124,050   

Delaware Township, Hunterdon County, (AGC), Prerefunded to 10/15/18, 5.00%, 10/15/35

    320        347,155   

Delaware Township, Hunterdon County, (AGC), Prerefunded to 10/15/18, 5.10%, 10/15/36

    340        369,543   

Delaware Township, Hunterdon County, (AGC), Prerefunded to 10/15/18, 5.15%, 10/15/37

    360        391,644   

Delaware Township, Hunterdon County, (AGC), Prerefunded to 10/15/18, 5.20%, 10/15/38

    382        415,964   

Jersey City, (AGM), Prerefunded to 1/15/19, 5.00%, 1/15/29

    1,000        1,093,560   

Lakewood Township, (AGC), Prerefunded to 11/1/18, 5.75%, 11/1/31

    700        771,050   

Monroe Township Board of Education, Middlesex County, (AGC), Prerefunded to 3/1/18, 4.75%, 3/1/34

    1,015        1,070,906   

New Jersey Economic Development Authority, (School Facilities Construction), (AGC), Prerefunded to 12/15/18, 5.50%, 12/15/34

    840        924,790   

New Jersey Educational Facilities Authority, (William Paterson University), (AGC), Prerefunded to 7/1/18, 4.75%, 7/1/34

    1,060        1,131,857   

New Jersey Educational Facilities Authority, (William Paterson University), (AGC), Prerefunded to 7/1/18, 5.00%, 7/1/38

    255        273,393   

Nutley School District, (NPFG), Prerefunded to 7/15/17, 4.75%, 7/15/30

    110        113,486   

Nutley School District, (NPFG), Prerefunded to 7/15/17, 4.75%, 7/15/31

    410        422,993   
                 
    $ 8,450,391   
                 
 

 

  26   See Notes to Financial Statements.


Eaton Vance

New Jersey Municipal Bond Fund

September 30, 2016

 

Portfolio of Investments — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – General Obligations — 28.2%

  

Bayonne, (AGM), 0.00%, 7/1/23

  $ 2,415      $ 2,081,948   

Hudson County Improvement Authority, (Harrison Parking), (AGC), 5.25%, 1/1/39

    1,500        1,631,445   

Hudson County Improvement Authority, (Harrison Redevelopment), (NPFG), 0.00%, 12/15/38

    2,000        1,038,020   

Irvington Township, (AGM), 0.00%, 7/15/26

    5,235        4,047,126   

Jackson Township School District, (NPFG), 2.50%, 6/15/27

    2,310        2,312,379   
                 
    $ 11,110,918   
                 

Insured – Hospital — 5.4%

  

New Jersey Health Care Facilities Financing Authority, (Meridian Health System), Series II, (AGC), 5.00%, 7/1/38

  $ 170      $ 180,831   

New Jersey Health Care Facilities Financing Authority, (Meridian Health System), Series V, (AGC), 5.00%, 7/1/38

    245        260,609   

New Jersey Health Care Facilities Financing Authority, (Virtua Health), (AGC), 5.50%, 7/1/38

    1,500        1,671,510   
                 
    $ 2,112,950   
                 

Insured – Lease Revenue / Certificates of Participation — 7.4%

  

Essex County Improvement Authority, (NPFG), 5.50%, 10/1/30

  $ 1,000      $ 1,379,790   

New Jersey Economic Development Authority, (School Facilities Construction), (AGC), 5.50%, 12/15/34

    460        498,383   

New Jersey Economic Development Authority, (School Facilities Construction), (AGM), 5.00%, 6/15/33

    360        415,904   

New Jersey Economic Development Authority, (School Facilities Construction), (NPFG), 5.50%, 9/1/28

    500        632,315   
                 
    $ 2,926,392   
                 

Insured – Special Tax Revenue — 13.7%

  

Garden State Preservation Trust, (AGM), 0.00%, 11/1/21

  $ 1,000      $ 914,030   

Garden State Preservation Trust, (AGM), 5.75%, 11/1/28

    500        650,565   

New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (BHAC), (NPFG), 5.00%, 7/1/27

    975        978,481   

New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/26

    2,380        1,794,758   

New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/27

    1,120        813,590   

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

    1,105        223,177   
                 
    $ 5,374,601   
                 

Insured – Transportation — 9.5%

  

New Jersey Transportation Trust Fund Authority, (Transportation System), (AMBAC), 0.00%, 12/15/28

  $ 1,200      $ 793,020   

New Jersey Turnpike Authority, (AGM), (BHAC), 5.25%, 1/1/29

    1,500        2,011,920   
Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – Transportation (continued)

  

Port Authority of New York and New Jersey, (AGM), 5.00%, 8/15/33

  $ 720      $ 746,035   

South Jersey Transportation Authority, (AGC), 5.50%, 11/1/33

    180        200,745   
                 
    $ 3,751,720   
                 

Insured – Water and Sewer — 10.9%

  

Middlesex County Improvement Authority, (Perth Amboy), (AMBAC), 0.00%, 9/1/24

  $ 4,500      $ 3,686,130   

Passaic Valley Sewerage Commissioners, (NPFG), 2.50%, 12/1/32

    635        593,769   
                 
    $ 4,279,899   
                 

Lease Revenue / Certificates of Participation — 1.3%

  

New Jersey Health Care Facilities Financing Authority, (Hospital Asset Transformation Program), 5.25%, 10/1/38

  $ 465      $ 495,281   
                 
    $ 495,281   
                 

Senior Living / Life Care — 1.9%

  

New Jersey Economic Development Authority, (United Methodist Homes of New Jersey), 5.00%, 7/1/34

  $ 675      $ 744,997   
                 
    $ 744,997   
                 

Student Loan — 2.7%

  

New Jersey Higher Education Student Assistance Authority, 5.625%, 6/1/30

  $ 965      $ 1,071,304   
                 
    $ 1,071,304   
                 

Transportation — 20.6%

  

Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/35

  $ 590      $ 658,493   

Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/40

    210        234,167   

New Jersey Transportation Trust Fund Authority, (Transportation System), 5.50%, 6/15/31

    1,150        1,308,332   

Port Authority of New York and New Jersey, 5.00%, 10/15/35(1)

    2,675        3,273,772   

Port Authority of New York and New Jersey, 5.00%, 10/15/41(1)

    2,000        2,425,800   

South Jersey Transportation Authority, 5.00%, 11/1/39

    200        227,142   
                 
    $ 8,127,706   
                 

Water and Sewer — 3.4%

  

North Hudson Sewerage Authority, 5.00%, 6/1/29

  $ 695      $ 789,339   

North Hudson Sewerage Authority, Prerefunded to 6/1/22, 5.00%, 6/1/29

    30        36,354   
 

 

  27   See Notes to Financial Statements.


Eaton Vance

New Jersey Municipal Bond Fund

September 30, 2016

 

Portfolio of Investments — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Water and Sewer (continued)

  

Sussex County Municipal Utilities Authority, 0.00%, 12/1/37

  $ 1,000      $ 520,040   
                 
    $ 1,345,733   
                 

Total Tax-Exempt Investments — 157.4%
(identified cost $54,438,143)

   

  $ 61,999,759   
                 

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (5.6)%

  

  $ (2,225,332
                 

Institutional MuniFund Term Preferred Shares, at Liquidation Value — (44.1)%

   

  $ (17,375,000
                 

Other Assets, Less Liabilities — (7.7)%

  

  $ (3,014,230
                 

Net Assets Applicable to Common Shares — 100.0%

  

  $ 39,385,197   
                 

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

The Fund invests primarily in debt securities issued by New Jersey municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2016, 64.6% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 1.5% to 22.6% of total investments.

 

(1) 

Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1G).

 

 

Futures Contracts  
Description   Contracts      Position     

Expiration

Month/Year

     Aggregate Cost      Value     

Net

Unrealized

Appreciation

 

Interest Rate Futures

                
U.S. Long Treasury Bond     14         Short         Dec-16       $ (2,393,820    $ (2,354,188    $ 39,632   
                                                 $ 39,632   

Abbreviations:

 

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.
 

 

  28   See Notes to Financial Statements.


Eaton Vance

New York Municipal Bond Fund II

September 30, 2016

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 166.2%   
   
Security  

Principal

Amount

(000’s omitted)

    Value  

Bond Bank — 18.2%

  

New York Environmental Facilities Corp., 5.00%, 10/15/39

  $ 750      $ 844,868   

New York Environmental Facilities Corp., Clean Water and Drinking Water, 4.00%, 6/15/46(1)

    5,000        5,587,949   
                 
    $ 6,432,817   
                 

Education — 19.3%

  

Geneva Development Corp., (Hobart and William Smith Colleges), 5.00%, 9/1/33

  $ 110      $ 128,743   

Geneva Development Corp., (Hobart and William Smith Colleges), Series 2012, 5.00%, 9/1/32

    605        712,490   

Monroe County Industrial Development Corp., (St. John Fisher College), 5.00%, 6/1/23

    60        70,136   

New York Dormitory Authority, (Columbia University), 5.00%, 10/1/41

    1,275        1,485,541   

New York Dormitory Authority, (Cornell University), 5.00%, 7/1/37(1)

    1,275        1,454,023   

New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/34

    100        120,938   

New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/40

    610        677,051   

New York Dormitory Authority, (Skidmore College), 5.00%, 7/1/28

    325        378,696   

New York Dormitory Authority, (The New School), 5.50%, 7/1/40

    1,000        1,148,380   

Onondaga County Cultural Resources Trust, (Syracuse University), 5.00%, 12/1/38

    515        619,226   
                 
    $ 6,795,224   
                 

Electric Utilities — 4.0%

  

Utility Debt Securitization Authority, 5.00%, 12/15/33

  $ 1,160      $ 1,413,367   
                 
    $ 1,413,367   
                 

Escrowed / Prerefunded — 1.0%

  

New York Dormitory Authority, (North Shore-Long Island Jewish Obligated Group), Prerefunded to 5/1/17, 5.00%, 5/1/26

  $ 335      $ 343,338   
                 
    $ 343,338   
                 

General Obligations — 10.3%

  

Long Beach City School District, 4.50%, 5/1/26

  $ 770      $ 854,723   

New York, 5.00%, 2/15/34(1)

    1,000        1,163,100   

New York City, 5.00%, 8/1/34(1)

    1,350        1,617,071