Eaton Vance California Municipal Bond Fund II

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number: 811-21217

 

 

Eaton Vance California Municipal Bond Fund II

(Exact Name of Registrant as Specified in Charter)

 

 

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

 

 

Maureen A. Gemma

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

 

 

(617) 482-8260

(Registrant’s Telephone Number)

September 30

Date of Fiscal Year End

September 30, 2018

Date of Reporting Period

 

 

 


Item 1. Reports to Stockholders

 


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Eaton Vance

Municipal Bond Funds

Annual Report

September 30, 2018

 

 

 

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, 2018

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

     70  

Federal Tax Information

     71  

Annual Meeting of Shareholders

     72  

Dividend Reinvestment Plan

     73  

Board of Trustees’ Contract Approval

     75  

Management and Organization

     79  

Important Notices

     82  


Eaton Vance

Municipal Bond Funds

September 30, 2018

 

Management’s Discussion of Fund Performance1

 

 

Economic and Market Conditions

The fiscal year that began October 1, 2017 was characterized by a flattening of the municipal bond yield curve. Long-term interest rates drifted downward in the first month of the period — despite the U.S. Federal Reserve Board (the Fed) rate hikes the previous March and June 2017 that put upward pressure on short-term rates.

In November and December 2017, however, the municipal market experienced considerable volatility after the GOP-controlled House and Senate released and then passed new tax legislation. The most significant change to the municipal market was the elimination of an issuer’s ability to refinance debt prior to its call date through the issuance of advanced refunding bonds — which accounted for just under 20% of new issuance over the past 10 years. As a result, December 2017 witnessed the largest-ever one-month issuance of new municipal debt, as issuers rushed to beat the December 31, 2017 deadline. Investors sold short maturity bonds to buy new-issue longer maturity bonds in anticipation of lower supply going forward. The net result was rising prices on longer-term debt that drove more flattening of the yield curve in December 2017.

But as the new year began, bond prices reversed direction. Signs of increasing inflation, higher wage growth, and fears that the new tax legislation might overheat the economy pushed interest rates up and caused longer-term bond prices to decline.

Upward pressure on short-term rates continued in March and June 2018 as the Fed delivered its first two rate hikes of the year. At the long end of the curve, however, fluctuating perceptions of geopolitical risk were a primary driver of rates from April through the end of August 2018. Investors toggled between concern that the U.S. was initiating a global trade war and optimism about economic growth and a potential detente between the U.S. and North Korea. Meanwhile, ongoing lower yields for German and Japanese bonds, compared with U.S. Treasurys, weighed on longer-term U.S. yields. In September 2018, however, the Fed hiked rates again and both U.S. Treasury and municipal rates rose across the curve. The net result for the period was a continued flattening of the yield curve, as the spread between two-year and 10-year rates narrowed significantly.

For the 12-month period, the Bloomberg Barclays Municipal Bond Index (the Index),2 a broad measure of the asset class, returned 0.35%. For the period as a whole, the municipal bond yield curve flattened. Rates for AAA-rated7 bonds rose across the curve, but rate increases were greater at the short end

of the curve than the long end. On a total return basis, longer maturities in general outperformed shorter maturities, and lower-rated bonds generally outperformed higher-rated issues. Across most of the curve, municipal bonds generally outperformed U.S. Treasurys.

Fund Performance

For the fiscal year ended September 30, 2018, Municipal Bond Fund II, California Municipal Bond Fund II, Massachusetts Municipal Bond Fund, Michigan Municipal Bond Fund, New Jersey Municipal Bond Fund, New York Municipal Bond Fund II, Ohio Municipal Bond Fund and Pennsylvania Municipal Bond Fund shares at net asset value (NAV) all underperformed the 0.35% return of the Funds’ primary benchmark, the Index.

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

During the fiscal year ended September 30, 2018, management employed leverage through Residual Interest Bond financing, Auction Preferred Shares, and Institutional MuniFund Term Preferred Shares (iMTP)6 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 rising rates and falling bond prices, the leverage amplified the relatively minor declines in the price of bonds owned by the Funds and generated additional tax-exempt bond income, enhancing the dividend of the Funds.

Security selection in insured Puerto Rico bonds contributed to performance relative to the Index for all eight Funds. This was due to strong performance of Puerto Rico’s debt in the second half of the period, as ongoing bankruptcy negotiations led to anticipation that bondholder recoveries could exceed those originally anticipated by the market. The Funds’ insured 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, including monetary default. As the period ended, Puerto Rico continued to negotiate with creditors and address its current debt structure under the Puerto Rico Oversight, Management, and Economic Stability Act passed by the U.S. Congress.

 

 

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, 2018

 

Management’s Discussion of Fund Performance — continued

 

 

Fund-specific Results

Eaton Vance Municipal Bond Fund II shares at NAV returned –1.82% during the fiscal year ended September 30, 2018, underperforming the 0.35% return of the Index. The main detractors from performance relative to the Index were an overweight, relative to the Index, in prerefunded, or escrowed, bonds; security selection in the education sector; and security selection in long-maturity bonds, with 22 years or more remaining to maturity. Significant contributors to relative results versus the Index included security selection in insured Puerto Rico bonds, as noted earlier; security selection in zero-coupon bonds; and security selection in the special tax sector. As of period-end on September 30, 2018, all insured Puerto Rico bonds had been sold out of the Fund.

Eaton Vance California Municipal Bond Fund II shares at NAV returned –1.37% during the fiscal year ended September 30, 2018, underperforming the 0.35% return of the Index. Detractors from results versus the Index included holdings in Residual Interest Bonds, an overweight in prerefunded bonds, security selection, and an overweight in local general obligation (GO) bonds. In contrast, performance versus the Index was helped by security selection in insured Puerto Rico bonds, security selection in zero-coupon bonds, and an overweight in low duration,9 currently callable bonds.

Eaton Vance Massachusetts Municipal Bond Fund shares at NAV returned –2.20% during the fiscal year ended September 30, 2018, underperforming the 0.35% return of the Index. Holdings in Residual Interest Bonds, an overweight in prerefunded bonds, and security selection in the education sector detracted from performance versus the Index. In contrast, key contributors to performance relative to the Index included security selection in insured Puerto Rico bonds, security selection in AAA-rated bonds, and an overweight in the health care sector, which was the best-performing sector in the Index during the period.

Eaton Vance Michigan Municipal Bond Fund shares at NAV returned –0.74% during the fiscal year ended September 30, 2018, underperforming the 0.35% return of the Index. Detractors from Fund performance versus the Index included holdings in Residual Interest Bonds, an overweight and security selection in zero-coupon bonds, and security selection in long-maturity bonds, with 22 years or more remaining to maturity. Contributors to results versus the Index included security selection in insured Puerto Rico bonds, security selection in the water & sewer sector, and security selection in AAA-rated bonds.

Eaton Vance New Jersey Municipal Bond Fund shares at NAV returned –0.29% during the fiscal year ended September 30, 2018, underperforming the 0.35% return of the Index. Detractors from results relative to the Index included holdings in Residual Interest Bonds, an overweight in prerefunded bonds, and security selection in the leasing sector. Contributors to performance versus the Index included security selection in insured Puerto Rico bonds, an overweight and security selection in the health care sector, and security selection in the education sector.

Eaton Vance New York Municipal Bond Fund II shares at NAV returned –2.33% during the fiscal year ended September 30, 2018, underperforming the 0.35% return of the Index. Fund performance versus the Index was hurt by holdings in Residual Interest Bonds, security selection in the industrial development revenue sector, and security selection in AAA-rated bonds. Contributors to results versus the Index included security selection in insured Puerto Rico bonds, an allocation to short maturity, currently callable bonds, and an overweight and security selection in the housing sector.

Eaton Vance Ohio Municipal Bond Fund shares at NAV returned –1.86%, underperforming the 0.35% return of the Index. Key detractors from results versus the Index included holdings in Residual Interest Bonds, an overweight in prerefunded bonds, and an overweight and security selection in zero-coupon bonds. In contrast, security selection in insured Puerto Rico bonds, an overweight and security selection in the health care sector, and security selection in the education sector contributed to performance relative to the Index during the period.

Eaton Vance Pennsylvania Municipal Bond Fund shares at NAV returned –1.26%, underperforming the 0.35% return of the Index. Holdings in Residual Interest Bonds, security selection in AAA-rated bonds, and security selection in the education sector detracted from performance versus the Index. In contrast, security selection in insured Puerto Rico bonds, security selection in state GO bonds, and holdings that were prerefunded during the period all contributed to 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, 2018

 

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        –1.82      6.98      7.94

Fund at Market Price

            –3.21        6.20        6.37  

Bloomberg Barclays Municipal Bond Index

            0.35      3.54      4.75

Bloomberg Barclays Long (22+) Year Municipal Bond Index

            1.07        5.43        6.33  
           
% Premium/Discount to NAV4                                
              –8.82
           
Distributions5                                

Total Distributions per share for the period

            $ 0.573  

Distribution Rate at NAV

              4.22

Taxable-Equivalent Distribution Rate at NAV

              7.13

Distribution Rate at Market Price

              4.63

Taxable-Equivalent Distribution Rate at Market Price

              7.82
           
% Total Leverage6                                

Institutional MuniFund Term Preferred (iMTP) Shares

              6.28

Residual Interest Bond (RIB) Financing

              29.74  

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, 2018

 

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        –1.37      6.02      7.00

Fund at Market Price

            –11.02        3.37        6.23  

Bloomberg Barclays Municipal Bond Index

            0.35      3.54      4.75

Bloomberg Barclays Long (22+) Year Municipal Bond Index

            1.07        5.43        6.33  
           
% Premium/Discount to NAV4                                
              –15.72
           
Distributions5                                

Total Distributions per share for the period

            $ 0.526  

Distribution Rate at NAV

              3.95

Taxable-Equivalent Distribution Rate at NAV

              7.70

Distribution Rate at Market Price

              4.69

Taxable-Equivalent Distribution Rate at Market Price

              9.14
           
% Total Leverage6                                

RIB Financing

              39.31

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, 2018

 

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        –2.20      5.91      7.13

Fund at Market Price

            –5.90        4.63        4.31  

Bloomberg Barclays Municipal Bond Index

            0.35      3.54      4.75

Bloomberg Barclays Long (22+) Year Municipal Bond Index

            1.07        5.43        6.33  
           
% Premium/Discount to NAV4                                
              –12.96
           
Distributions5                                

Total Distributions per share for the period

            $ 0.521  

Distribution Rate at NAV

              3.65

Taxable-Equivalent Distribution Rate at NAV

              6.50

Distribution Rate at Market Price

              4.19

Taxable-Equivalent Distribution Rate at Market Price

              7.46
           
% Total Leverage6                                

RIB Financing

              36.74

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.

 

  6  


Eaton Vance

Michigan Municipal Bond Fund

September 30, 2018

 

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        –0.74      7.34      7.40

Fund at Market Price

            –4.94        6.50        7.84  

Bloomberg Barclays Municipal Bond Index

            0.35      3.54      4.75

Bloomberg Barclays Long (22+) Year Municipal Bond Index

            1.07        5.43        6.33  
           
% Premium/Discount to NAV4                                
              –13.85
           
Distributions5                                

Total Distributions per share for the period

            $ 0.570  

Distribution Rate at NAV

              3.91

Taxable-Equivalent Distribution Rate at NAV

              6.88

Distribution Rate at Market Price

              4.53

Taxable-Equivalent Distribution Rate at Market Price

              7.99
           
% Total Leverage6                                

RIB Financing

              37.97

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, 2018

 

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        –0.29      6.33      7.48

Fund at Market Price

            –5.08        5.40        5.90  

Bloomberg Barclays Municipal Bond Index

            0.35      3.54      4.75

Bloomberg Barclays Long (22+) Year Municipal Bond Index

            1.07        5.43        6.33  
           
% Premium/Discount to NAV4                                
              –14.46
           
Distributions5                                

Total Distributions per share for the period

            $ 0.589  

Distribution Rate at NAV

              4.28

Taxable-Equivalent Distribution Rate at NAV

              7.94

Distribution Rate at Market Price

              5.01

Taxable-Equivalent Distribution Rate at Market Price

              9.30
           
% Total Leverage6                                

iMTP Shares

              9.86

RIB Financing

              29.84  

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, 2018

 

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        –2.33      5.06      6.58

Fund at Market Price

            –8.51        3.92        5.78  

Bloomberg Barclays Municipal Bond Index

            0.35      3.54      4.75

Bloomberg Barclays Long (22+) Year Municipal Bond Index

            1.07        5.43        6.33  
           
% Premium/Discount to NAV4                                
              –14.95
           
Distributions5                                

Total Distributions per share for the period

            $ 0.523  

Distribution Rate at NAV

              3.89

Taxable-Equivalent Distribution Rate at NAV

              7.21

Distribution Rate at Market Price

              4.58

Taxable-Equivalent Distribution Rate at Market Price

              8.48
           
% Total Leverage6                                

RIB Financing

              42.11

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, 2018

 

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        –1.86      6.59      7.19

Fund at Market Price

            –9.16        4.89        5.66  

Bloomberg Barclays Municipal Bond Index

            0.35      3.54      4.75

Bloomberg Barclays Long (22+) Year Municipal Bond Index

            1.07        5.43        6.33  
           
% Premium/Discount to NAV4                                
              –14.07
           
Distributions5                                

Total Distributions per share for the period

            $ 0.563  

Distribution Rate at NAV

              4.30

Taxable-Equivalent Distribution Rate at NAV

              7.65

Distribution Rate at Market Price

              5.01

Taxable-Equivalent Distribution Rate at Market Price

              8.91
           
% Total Leverage6                                

RIB Financing

              36.72

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, 2018

 

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        –1.26      6.82      7.65

Fund at Market Price

            –5.55        5.69        4.96  

Bloomberg Barclays Municipal Bond Index

            0.35      3.54      4.75

Bloomberg Barclays Long (22+) Year Municipal Bond Index

            1.07        5.43        6.33  
           
% Premium/Discount to NAV4                                
              –13.52
           
Distributions5                                

Total Distributions per share for the period

            $ 0.583  

Distribution Rate at NAV

              4.33

Taxable-Equivalent Distribution Rate at NAV

              7.55

Distribution Rate at Market Price

              5.01

Taxable-Equivalent Distribution Rate at Market Price

              8.73
           
% Total Leverage6                                

RIB Financing

              38.54

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.

 

  11  


Eaton Vance

Municipal Bond Funds

September 30, 2018

 

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 Municipal Bond Index is an unmanaged index of municipal bonds traded in the U.S. 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. 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.

 

  

Effective September 30, 2017, the Funds’ benchmark was changed to the Bloomberg Barclays Municipal Bond 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 for the five and ten year periods is the impact of the tender and repurchase of a portion of the Fund’s Auction Preferred Shares (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 iMTP Shares leverage. The leverage created by RIB investments 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 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 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 Investors Service, Inc. (“Moody’s”), S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), as applicable. If securities are rated differently by the ratings agencies, the highest 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” (if any) 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.

 

9 

Duration is a measure of the expected change in price of a bond — in percentage terms — given a one percent change in interest rates, all else being constant. Securities with lower durations tend to be less sensitive to interest rate changes.

 

  

Fund profiles subject to change due to active management.

   Important Notice to Shareholders

  

On April 26, 2018, the Boards of Trustees of the following Funds approved the following mergers: Eaton Vance California Municipal Bond Fund II into Eaton Vance California Municipal Bond Fund; Eaton Vance Massachusetts Municipal Bond Fund and Eaton Vance Michigan Municipal Bond Fund into Eaton Vance Municipal Bond Fund; and Eaton Vance New York Municipal Bond Fund II into Eaton Vance New York Municipal Bond Fund.

 

  

Each merger was approved at a Special Meeting of Shareholders on November 15, 2018. Each merger is expected to be completed as soon as practicable.

 

  

On July 26, 2018, the Boards of Trustees of the following Funds approved the following mergers: Eaton Vance Municipal Bond Fund II, Eaton Vance Ohio Municipal Bond Fund, Eaton Vance New Jersey Municipal Bond Fund and Eaton Vance Pennsylvania Municipal Bond Fund into Eaton Vance Municipal Bond Fund.

 

  

Each proposed merger is subject to approval at a Special Meeting of Shareholders scheduled for December 20, 2018. Each merger is expected to be completed as soon as practicable following the shareholder meeting or later if the meeting is adjourned or postponed.

 

 

  12  


Eaton Vance

Municipal Bond Fund II

September 30, 2018

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 159.2%

 

Security   Principal
Amount
(000’s omitted)
    Value  
Bond Bank — 4.0%  

Texas Water Development Board, 4.00%, 10/15/37(1)

  $ 4,875     $ 5,041,822  
      $ 5,041,822  
Education — 10.7%  

Connecticut Health and Educational Facilities Authority, (Fairfield University), 4.00%, 7/1/47

  $ 2,345     $ 2,313,296  

Connecticut Health and Educational Facilities Authority, (Fairfield University), 5.00%, 7/1/46

    1,500       1,630,230  

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

    565       617,279  

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

    1,650       1,814,291  

Massachusetts Development Finance Agency, (Williams College), 5.00%, 7/1/46(2)

    5,050       5,654,384  

New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/40(2)

    1,500       1,531,815  
      $ 13,561,295  
Electric Utilities — 10.0%  

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

  $ 330     $ 364,772  

Los Angeles Department of Water and Power, CA, Power System Revenue, 4.00%, 7/1/46(2)

    3,000       3,054,720  

Omaha Public Power District, NE, 5.00%, 2/1/40(2)

    6,000       6,613,680  

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

    1,300       1,372,878  

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

    685       730,436  

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

    500       555,450  
      $ 12,691,936  
Escrowed / Prerefunded — 8.8%  

Connecticut Health and Educational Facilities Authority, (Wesleyan University), Prerefunded to 7/1/20, 5.00%, 7/1/39(2)

  $ 2,200     $ 2,313,872  

Houston Higher Education Finance Corp., TX, (William Marsh Rice University), Prerefunded to 5/15/20, 5.00%, 5/15/35

    1,000       1,046,080  

Maryland Health and Higher Educational Facilities Authority, (Charlestown Community, Inc.), Prerefunded to 1/1/21, 6.125%, 1/1/30

    235       255,161  

Metropolitan Transportation Authority, NY, Prerefunded to 11/15/21, 5.25%, 11/15/38

    865       950,687  

Mississippi, Prerefunded to 10/1/21, 5.00%, 10/1/36(2)

    1,725       1,872,194  

North Carolina Capital Facilities Finance Agency, (Duke University), Prerefunded to 4/1/19, 5.00%, 10/1/38(2)

    500       507,835  
Security   Principal
Amount
(000’s omitted)
    Value  
Escrowed / Prerefunded (continued)  

Oregon, Prerefunded to 8/2/21, 5.00%, 8/1/36

  $ 570     $ 614,893  

Oregon Department of Administrative Services, Lottery Revenue, Prerefunded to 4/1/21, 5.25%, 4/1/30

    1,120       1,207,102  

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

    110       111,007  

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

    1,310       1,321,986  

South Carolina Transportation Infrastructure Bank, Prerefunded to 10/1/19, 5.25%, 10/1/40

    1,000       1,031,830  
      $ 11,232,647  
General Obligations — 25.5%  

Chicago Park District, IL, (Harbor Facilities), 5.25%, 1/1/37(2)

  $ 1,680     $ 1,746,242  

Clark County, NV, 5.00%, 7/1/33

    500       546,465  

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

    2,500       3,109,525  

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

    2,000       2,195,840  

Massachusetts, 5.00%, 9/1/38(2)

    6,000       6,872,700  

New York, 5.00%, 2/15/34(2)

    2,750       2,929,383  

Oregon, 5.00%, 8/1/36

    430       460,891  

Shoreline School District No. 412, WA, 4.00%, 6/1/38

    2,800       2,901,780  

Washington, 5.00%, 2/1/35(2)

    5,250       5,807,078  

Will County, IL, 5.00%, 11/15/45(2)

    5,400       5,877,954  
      $ 32,447,858  
Hospital — 4.5%  

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

  $ 360     $ 397,516  

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

    615       678,923  

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

    1,550       1,671,086  

Tampa, FL, (BayCare Health System), 4.00%, 11/15/46(2)

    3,000       3,007,710  
      $ 5,755,235  
Industrial Development Revenue — 0.5%  

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

  $ 595     $ 612,683  
      $ 612,683  
Insured – Electric Utilities — 5.0%  

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

  $ 6,335     $ 5,615,978  

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

    735       806,111  
      $ 6,422,089  
 

 

  13   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Fund II

September 30, 2018

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
Insured – Escrowed / Prerefunded — 7.6%  

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

  $ 1,000     $ 1,014,520  

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

    565       569,249  

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

    305       307,263  

North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), Prerefunded to 1/1/19, 5.50%, 1/1/29

    255       257,313  

North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), Prerefunded to 1/1/19, 5.75%, 1/1/39

    290       292,807  

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

    210       216,380  

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

    530       546,101  

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

    425       437,911  

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

    2,750       2,823,782  

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

    130       131,190  

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

    1,465       1,478,405  

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

    1,545       1,598,102  
      $ 9,673,023  
Insured – General Obligations — 0.7%  

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

  $ 750     $ 920,887  
      $ 920,887  
Insured – Hospital — 1.8%  

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

  $ 2,245     $ 2,302,562  
      $ 2,302,562  
Insured – Industrial Development Revenue — 1.1%  

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

  $ 1,340     $ 1,376,810  
      $ 1,376,810  
Insured – Lease Revenue / Certificates of Participation — 1.0%  

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

  $ 1,000     $ 1,241,200  
      $ 1,241,200  
Security   Principal
Amount
(000’s omitted)
    Value  
Insured – Other Revenue — 1.8%  

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

  $ 2,540     $ 1,271,829  

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

    1,000       1,020,180  
      $ 2,292,009  
Insured – Special Tax Revenue — 5.3%  

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

  $ 3,000     $ 3,766,890  

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

    2,540       3,039,491  
      $ 6,806,381  
Insured – Student Loan — 0.6%  

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

  $ 725     $ 739,993  
      $ 739,993  
Insured – Transportation — 10.8%  

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

  $ 260     $ 282,961  

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

    400       436,980  

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

    180       196,038  

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

    100       109,784  

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

    1,585       1,645,087  

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

    7,800       7,079,982  

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

    1,305       1,313,613  

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

    1,000       1,027,870  

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

    535       549,376  

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

    1,040       1,047,623  
      $ 13,689,314  
Insured – Water and Sewer — 2.7%  

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

  $ 1,000     $ 1,260,640  

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

    230       253,725  

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

    195       214,574  
 

 

  14   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Fund II

September 30, 2018

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
Insured – Water and Sewer (continued)  

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

  $ 240     $ 262,766  

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

    195       212,322  

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

    1,220       1,204,982  
      $ 3,409,009  
Lease Revenue / Certificates of Participation — 6.5%  

New Jersey Health Care Facilities Financing Authority, (Hospital Asset Transformation Program), Prerefunded to 10/1/19, 5.75%, 10/1/31

  $ 2,235     $ 2,315,996  

North Carolina, Limited Obligation Bonds, 5.00%, 5/1/26(2)

    5,250       5,955,915  
      $ 8,271,911  
Other Revenue — 0.4%  

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

  $ 180     $ 193,041  

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

    260       279,315  
      $ 472,356  
Special Tax Revenue — 22.8%  

Central Puget Sound Regional Transit Authority, WA, Sales and Use Tax Revenue, Green Bonds, 5.00%, 11/1/30(2)

  $ 1,850     $ 2,110,998  

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

    405       453,401  

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

    215       240,566  

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

    1,880       2,013,781  

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

    750       912,690  

New York City Transitional Finance Authority, NY, Future Tax Revenue, 4.00%, 8/1/39

    5,000       5,100,950  

New York City Transitional Finance Authority, NY, Future Tax Revenue, 4.00%, 8/1/41

    900       915,723  

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

    2,145       2,292,662  

New York City Transitional Finance Authority, NY, Future Tax Revenue, Prerefunded to 11/1/20, 5.50%, 11/1/35(2)

    1,655       1,770,337  

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

    465       511,425  

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

    1,710       1,877,717  

New York Dormitory Authority, Sales Tax Revenue, 5.00%, 3/15/43(2)

    6,000       6,796,380  
Security   Principal
Amount
(000’s omitted)
    Value  
Special Tax Revenue (continued)  

New York State Urban Development Corp., Personal Income Tax Revenue, 4.00%, 3/15/47(2)

  $ 4,000     $ 4,066,240  
      $ 29,062,870  
Transportation — 20.0%  

Austin, TX, Airport System Revenue, 5.00%, 11/15/41

  $ 2,110     $ 2,350,878  

Chicago, IL, (O’Hare International Airport), 5.00%, 1/1/33

    1,750       1,940,277  

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

    1,000       1,089,910  

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

    640       714,080  

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

    990       1,103,107  

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

    1,715       1,769,829  

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

    465       490,254  

Metropolitan Transportation Authority, NY, 4.00%, 11/15/42

    600       604,752  

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

    620       697,426  

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

    2,095       2,198,933  

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

    1,385       1,529,608  

New Jersey Transportation Trust Fund Authority, (Transportation Program), 5.00%, 6/15/38

    130       136,427  

New Jersey Transportation Trust Fund Authority, (Transportation System), 5.25%, 12/15/23

    1,000       1,106,580  

New Jersey Turnpike Authority, 4.00%, 1/1/43

    3,500       3,570,420  

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

    1,070       1,151,769  

Orlando-Orange County Expressway Authority, FL, Prerefunded to 7/1/20, 5.00%, 7/1/35

    330       346,497  

Orlando-Orange County Expressway Authority, FL, Prerefunded to 7/1/20, 5.00%, 7/1/35

    90       94,499  

Orlando-Orange County Expressway Authority, FL, Prerefunded to 7/1/20, 5.00%, 7/1/40

    145       152,249  

Orlando-Orange County Expressway Authority, FL, Prerefunded to 7/1/20, 5.00%, 7/1/40

    230       241,498  

Port Authority of New York and New Jersey, 5.00%, 12/1/34(2)

    2,040       2,277,170  

Texas Transportation Commission, (Central Texas Turnpike System), 5.00%, 8/15/37

    1,500       1,604,415  

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

    265       282,151  
      $ 25,452,729  
Water and Sewer — 7.1%  

Atlanta, GA, Water and Wastewater Revenue, 5.00%, 11/1/47(2)

  $ 5,900     $ 6,661,572  

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

    1,555       1,663,243  
 

 

  15   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Fund II

September 30, 2018

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
Water and Sewer (continued)  

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

  $ 380     $ 408,675  

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

    300       319,293  
      $ 9,052,783  

Total Tax-Exempt Investments — 159.2%
(identified cost $195,115,571)

 

  $ 202,529,402  

Institutional MuniFund Term Preferred Shares, at Liquidation Value
(net of unamortized deferred offering costs) — (9.8)%

 

  $ (12,410,486

Other Assets, Less Liabilities — (49.4)%

 

  $ (62,920,598

Net Assets Applicable to Common Shares — 100.0%

 

  $ 127,198,318  

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

At September 30, 2018, the concentration of the Fund’s investments in the various states, determined as a percentage of total investments, is as follows:

 

New York      17.3%  
Others, representing less than 10% individually      82.7%  

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, 2018, 24.1% 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 0.5% to 8.1% of total investments.

 

(1) 

When-issued security.

 

(2) 

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

Abbreviations:

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
BHAC     Berkshire Hathaway Assurance Corp.
FGIC     Financial Guaranty Insurance Company
NPFG     National Public Finance Guaranty Corp.
 

 

  16   See Notes to Financial Statements.


Eaton Vance

California Municipal Bond Fund II

September 30, 2018

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 166.9%

 

Security   Principal
Amount
(000’s omitted)
    Value  
Education — 23.3%  

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

  $ 95     $ 103,928  

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

    160       173,962  

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

    380       390,933  

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

    60       66,869  

California Educational Facilities Authority, (University of San Francisco), Prerefunded to 10/1/21, 6.125%, 10/1/36

    55       61,722  

California Municipal Finance Authority, (Pomona College), 5.00%, 1/1/48(1)

    3,000       3,442,080  

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

    210       226,204  

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

    145       155,666  

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

    425       461,754  

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

    450       488,371  

California State University, 5.00%, 11/1/43(1)

    2,000       2,306,180  

University of California, 5.00%, 5/15/36(1)

    2,050       2,386,589  

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

    165       168,602  

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

    550       562,006  
      $ 10,994,866  
Electric Utilities — 0.6%  

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

  $ 255     $ 261,202  
      $ 261,202  
Escrowed / Prerefunded — 9.5%  

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

  $ 1,370     $ 1,381,577  

California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), Prerefunded to 8/15/19, 5.00%, 8/15/39

    1,400       1,438,696  

San Diego Community College District, (Election of 2002), Prerefunded to 8/1/21, 5.00%, 8/1/32

    720       783,706  

San Diego Community College District, (Election of 2006), Prerefunded to 8/1/21, 5.00%, 8/1/31

    455       495,258  

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

    285       291,222  

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

    115       118,154  
      $ 4,508,613  
Security   Principal
Amount
(000’s omitted)
    Value  
General Obligations — 52.3%  

Alameda City Unified School District, (Election of 2014), 5.00%, 8/1/42(1)

  $ 1,675     $ 1,912,180  

Cabrillo Unified School District, (Election of 2018), 5.00%, 8/1/48(2)

    1,095       1,221,363  

California, 5.50%, 11/1/35

    1,300       1,396,668  

Campbell Union High School District, (Election of 2016), 5.00%, 8/1/36(1)

    3,000       3,445,170  

El Camino Community College District, (Election of 2012), 5.00%, 8/1/48(1)

    3,000       3,430,470  

Grossmont-Cuyamaca Community College District, (Election of 2012), 5.00%, 8/1/44(1)

    2,500       2,874,600  

La Canada Unified School District, (Election of 2017), 5.00%, 8/1/47(1)

    3,375       3,893,029  

Long Beach Unified School District, (Election of 2008), 5.00%, 8/1/41(1)

    1,500       1,700,085  

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

    1,850       1,948,198  

Redding School District, (Election of 2018), 5.00%, 8/1/45(2)

    750       836,527  

San Jose Unified School District, (Election of 2012), 4.00%, 8/1/42(1)

    2,000       2,067,640  
      $ 24,725,930  
Hospital — 16.2%  

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

  $ 335     $ 367,857  

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

    475       520,804  

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

    600       662,202  

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

    280       306,802  

California Health Facilities Financing Authority, (Sutter Health), 5.00%, 11/15/46(1)

    3,000       3,349,230  

California Public Finance Authority, (Sharp HealthCare), 5.00%, 8/1/47(1)

    1,250       1,402,325  

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

    1,000       1,061,890  
      $ 7,671,110  
Insured – Electric Utilities — 2.3%  

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

  $ 1,035     $ 1,109,903  
      $ 1,109,903  
Insured – Escrowed / Prerefunded — 9.1%  

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

  $ 3,130     $ 3,019,667  

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

    1,250       1,283,538  
      $ 4,303,205  
 

 

  17   See Notes to Financial Statements.


Eaton Vance

California Municipal Bond Fund II

September 30, 2018

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
Insured – General Obligations — 8.5%  

Garvey School District, (Election of 2016), (AGM), 5.00%, 8/1/48(2)

  $ 1,000     $ 1,106,900  

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

    3,200       2,929,440  
      $ 4,036,340  
Insured – Special Tax Revenue — 3.3%  

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

  $ 1,535     $ 1,536,412  
      $ 1,536,412  
Insured – Transportation — 5.6%  

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

  $ 3,520     $ 2,634,016  
      $ 2,634,016  
Insured – Water and Sewer — 1.0%  

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

  $ 445     $ 452,062  
      $ 452,062  
Lease Revenue / Certificates of Participation — 1.1%  

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

  $ 480     $ 529,675  
      $ 529,675  
Special Tax Revenue — 7.8%  

Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue, Green Bonds, 5.00%, 7/1/41(1)

  $ 2,000     $ 2,295,700  

San Francisco Bay Area Rapid Transit District, Sales Tax Revenue, Prerefunded to 7/1/20, 5.00%, 7/1/28

    1,300       1,371,435  
      $ 3,667,135  
Transportation — 7.5%  

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

  $ 1,190     $ 1,210,944  

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

    540       565,234  

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

    1,060       1,111,272  

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

    635       663,569  
      $ 3,551,019  
Water and Sewer — 18.8%  

East Bay Municipal Utility District, Green Bonds, 5.00%, 6/1/42(1)

  $ 2,900     $ 3,320,471  
Security   Principal
Amount
(000’s omitted)
    Value  
Water and Sewer (continued)  

Los Angeles Department of Water and Power, Water System Revenue, 5.00%, 7/1/41(1)

  $ 2,000     $ 2,273,020  

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

    1,050       1,057,686  

San Francisco City and County Public Utilities Commission, 5.00%, 11/1/42(1)

    2,000       2,226,640  
      $ 8,877,817  

Total Tax-Exempt Investments — 166.9%
(identified cost $77,055,962)

 

  $ 78,859,305  

Other Assets, Less Liabilities — (66.9)%

 

  $ (31,621,596

Net Assets Applicable to Common Shares — 100.0%

 

  $ 47,237,709  

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, 2018, 17.8% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 1.6% to 12.3% of total investments.

 

(1) 

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

 

(2) 

When-issued security.

Abbreviations:

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
NPFG     National Public Finance Guaranty Corp.
XLCA     XL Capital Assurance, Inc.
 

 

  18   See Notes to Financial Statements.


Eaton Vance

Massachusetts Municipal Bond Fund

September 30, 2018

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 154.3%

 

Security   Principal
Amount
(000’s omitted)
    Value  
Education — 41.9%  

Massachusetts Development Finance Agency, (Boston College), 5.00%, 7/1/42(1)

  $ 2,825     $ 3,173,464  

Massachusetts Development Finance Agency, (Harvard University), 5.00%, 7/15/33(1)

    3,000       3,470,100  

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

    750       787,687  

Massachusetts Development Finance Agency, (Williams College), 5.00%, 7/1/46(1)

    2,000       2,239,360  

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

    870       911,769  
      $ 10,582,380  
Escrowed / Prerefunded — 7.0%  

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

  $ 490     $ 498,580  

Massachusetts Health and Educational Facilities Authority, (Partners HealthCare System), Prerefunded to 7/1/19, 5.00%, 7/1/34

    500       511,545  

Massachusetts Health and Educational Facilities Authority, (Partners HealthCare System), Prerefunded to 7/1/19, 5.00%, 7/1/39

    750       767,317  
      $ 1,777,442  
General Obligations — 15.3%  

Boston, 5.00%, 5/1/38(1)

  $ 2,000     $ 2,321,840  

Plymouth, 5.00%, 5/1/31

    225       240,248  

Plymouth, 5.00%, 5/1/32

    205       218,786  

Wayland, 5.00%, 2/1/33

    340       360,706  

Wayland, 5.00%, 2/1/36

    510       540,462  

Winchester, 5.00%, 4/15/36

    160       170,378  
      $ 3,852,420  
Hospital — 17.4%  

Massachusetts Development Finance Agency, (Partners HealthCare System), 5.00%, 7/1/47(1)

  $ 2,375     $ 2,589,534  

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

    775       779,348  

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

    1,000       1,021,130  
      $ 4,390,012  
Security   Principal
Amount
(000’s omitted)
    Value  
Insured – Education — 12.6%  

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

  $ 700     $ 890,288  

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

    1,105       1,347,282  

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

    750       929,175  
      $ 3,166,745  
Insured – Electric Utilities — 4.6%  

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

  $ 1,095     $ 1,165,989  
      $ 1,165,989  
Insured – Escrowed / Prerefunded — 10.0%  

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

  $ 1,600     $ 1,290,112  

Massachusetts Health and Educational Facilities Authority, (Cape Cod Healthcare), (AGC), Prerefunded to 11/15/19, 5.00%, 11/15/25

    220       227,366  

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

    1,000       1,015,570  
      $ 2,533,048  
Insured – General Obligations — 9.4%  

Massachusetts, (AMBAC), 5.50%, 8/1/30

  $ 1,900     $ 2,376,767  
      $ 2,376,767  
Insured – Special Tax Revenue — 3.7%  

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

  $ 750     $ 921,015  
      $ 921,015  
Special Tax Revenue — 15.6%  

Massachusetts School Building Authority, Sales Tax Revenue, 5.00%, 11/15/46(1)

  $ 1,500     $ 1,675,755  

Massachusetts, (Rail Enhancement and Accelerated Bridge Programs),
5.00%, 6/1/47(1)

    2,000       2,247,900  
      $ 3,923,655  
Transportation — 7.9%  

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

  $ 1,000     $ 1,032,600  

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

    500       515,300  

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

    435       455,828  
      $ 2,003,728  
 

 

  19   See Notes to Financial Statements.


Eaton Vance

Massachusetts Municipal Bond Fund

September 30, 2018

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
Water and Sewer — 8.9%  

Massachusetts Water Resources Authority, Green Bonds, 5.00%, 8/1/40(1)

  $ 2,000     $ 2,247,520  
      $ 2,247,520  

Total Tax-Exempt Investments — 154.3%
(identified cost $37,563,655)

 

  $ 38,940,721  

Other Assets, Less Liabilities — (54.3)%

 

  $ (13,699,223

Net Assets Applicable to Common Shares — 100.0%

 

  $ 25,241,498  

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, 2018, 26.1% 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 3.2% to 8.7% of total investments.

 

(1) 

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

Abbreviations:

 

AGC     Assured Guaranty Corp.
AMBAC     AMBAC Financial Group, Inc.
NPFG     National Public Finance Guaranty Corp.
XLCA     XL Capital Assurance, Inc.
 

 

  20   See Notes to Financial Statements.


Eaton Vance

Michigan Municipal Bond Fund

September 30, 2018

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 158.1%

 

Security   Principal
Amount
(000’s omitted)
    Value  
Education — 18.3%  

University of Michigan, 5.00%, 4/1/48(1)

  $ 3,500     $ 4,000,114  
      $ 4,000,114  
Electric Utilities — 3.3%  

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

  $ 700     $ 728,434  
      $ 728,434  
Escrowed / Prerefunded — 2.4%  

Comstock Park Public Schools, Prerefunded to 5/1/21, 5.25%, 5/1/33

  $ 60     $ 64,723  

Kalamazoo Hospital Finance Authority, (Bronson Healthcare Group), Prerefunded to 5/15/21, 5.25%, 5/15/33

    430       463,763  
      $ 528,486  
General Obligations — 36.9%  

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

  $ 205     $ 219,213  

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

    105       112,470  

Jackson Public Schools, 5.00%, 5/1/48(1)

    2,150       2,362,742  

Trenton Public Schools, 5.00%, 5/1/42(1)

    2,150       2,399,400  

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

    635       700,716  

Will County, IL, 5.00%, 11/15/45(1)

    2,100       2,285,871  
      $ 8,080,412  
Hospital — 25.7%  

Grand Traverse Hospital , Finance Authority, (Munson Healthcare Obligated Group), 5.375%, 7/1/35

  $ 750     $ 812,490  

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

    750       796,815  

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

    500       541,725  

Michigan Finance Authority, (Trinity Health Credit Group), 5.00%, 12/1/42(1)

    2,150       2,388,392  

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

    1,000       1,080,020  
      $ 5,619,442  
Insured – Bond Bank — 3.3%  

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

  $ 700     $ 730,135  
      $ 730,135  
Security   Principal
Amount
(000’s omitted)
    Value  
Insured – Electric Utilities — 3.0%  

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

  $ 610     $ 656,775  
      $ 656,775  
Insured – Escrowed / Prerefunded — 16.1%  

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

  $ 1,135     $ 1,210,330  

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

    2,615       2,314,798  
      $ 3,525,128  
Insured – General Obligations — 14.7%  

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

  $ 500     $ 549,130  

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

    750       820,118  

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

    1,330       1,312,763  

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

    500       543,925  
      $ 3,225,936  
Insured – Water and Sewer — 9.3%  

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

  $ 1,500     $ 1,658,055  

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

    355       369,104  
      $ 2,027,159  
Lease Revenue / Certificates of Participation — 11.0%  

Michigan State Building Authority, 5.00%, 10/15/51(1)

  $ 2,200     $ 2,406,822  
      $ 2,406,822  
Water and Sewer — 14.1%  

Grand Rapids, Sanitary Sewer System Revenue, 5.00%, 1/1/43(1)

  $ 2,500     $ 2,821,325  

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

    250       268,835  
      $ 3,090,160  

Total Tax-Exempt Investments — 158.1%
(identified cost $33,736,879)

 

  $ 34,619,003  

Other Assets, Less Liabilities — (58.1)%

 

  $ (12,725,824

Net Assets Applicable to Common Shares — 100.0%

 

  $ 21,893,179  

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

 

 

  21   See Notes to Financial Statements.


Eaton Vance

Michigan Municipal Bond Fund

September 30, 2018

 

Portfolio of Investments — continued

 

 

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, 2018, 29.4% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 1.1% to 10.2% of total investments.

 

(1) 

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

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.
 

 

  22   See Notes to Financial Statements.


Eaton Vance

New Jersey Municipal Bond Fund

September 30, 2018

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 172.6%

 

Security   Principal
Amount
(000’s omitted)
    Value  
Education — 12.2%  

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

  $ 340     $ 379,825  

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

    210       233,888  

New Jersey Educational Facilities Authority, (Princeton University), 5.00%, 7/1/29

    1,675       1,990,536  

New Jersey Educational Facilities Authority, (Princeton University), 5.00%, 7/1/31

    1,125       1,326,308  

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

    360       387,043  
      $ 4,317,600  
Escrowed / Prerefunded — 3.6%  

New Jersey Health Care Facilities Financing Authority, (Palisades Medical Center), Prerefunded to 7/1/23, 5.25%, 7/1/31

  $ 615     $ 696,426  

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

    285       313,147  

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

    250       254,522  
      $ 1,264,095  
General Obligations — 19.6%  

Massachusetts, 5.00%, 9/1/38(1)

  $ 2,500     $ 2,863,625  

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

    260       276,676  

Ocean County, 3.00%, 9/1/35

    915       867,063  

Ocean County, 3.00%, 9/1/36

    375       352,106  

Ocean County, 4.00%, 9/1/30(1)

    775       850,462  

Ocean County, 4.00%, 9/1/30

    10       10,974  

Ocean County, 5.00%, 9/1/28(1)

    700       837,809  

Ocean County, 5.00%, 9/1/28

    10       11,969  

Ocean County, 5.00%, 9/1/29(1)

    725       863,265  

Ocean County, 5.00%, 9/1/29

    20       23,814  
      $ 6,957,763  
Hospital — 10.3%  

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

  $ 250     $ 269,340  

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

    450       456,858  

New Jersey Health Care Facilities Financing Authority, (Inspira Health Obligated Group), 4.00%, 7/1/47

    500       494,915  

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

    295       322,541  
Security   Principal
Amount
(000’s omitted)
    Value  
Hospital (continued)  

New Jersey Health Care Facilities Financing Authority, (Palisades Medical Center), Prerefunded to 7/1/23, 5.25%, 7/1/31

  $ 135     $ 152,549  

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

    1,750       1,949,290  
      $ 3,645,493  
Housing — 2.5%  

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

  $ 850     $ 877,344  
      $ 877,344  
Insured – Education — 0.3%  

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

  $ 85     $ 85,127  

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

    20       20,037  
      $ 105,164  
Insured – Electric Utilities — 2.9%  

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

  $ 615     $ 662,158  

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

    335       358,212  
      $ 1,020,370  
Insured – Escrowed / Prerefunded — 11.4%  

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

  $ 1,000     $ 1,026,400  

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

    1,000       1,009,170  

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

    700       702,233  

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

    840       846,317  

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

    450       453,339  
      $ 4,037,459  
Insured – General Obligations — 18.8%  

Bayonne, (AGM), 0.00%, 7/1/23

  $ 2,165     $ 1,905,287  

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

    1,500       1,511,445  

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

    4,165       3,247,867  
      $ 6,664,599  
 

 

  23   See Notes to Financial Statements.


Eaton Vance

New Jersey Municipal Bond Fund

September 30, 2018

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
Insured – Hospital — 4.3%  

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

  $ 1,500     $ 1,538,460  
      $ 1,538,460  
Insured – Lease Revenue / Certificates of Participation — 5.1%  

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

  $ 1,000     $ 1,241,200  

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

    500       584,970  
      $ 1,826,170  
Insured – Special Tax Revenue — 6.6%  

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

  $ 1,000     $ 926,320  

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

    420       317,839  

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

    1,120       809,245  

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

    1,105       280,106  
      $ 2,333,510  
Insured – Transportation — 3.9%  

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

  $ 1,000     $ 1,219,890  

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

    180       186,129  
      $ 1,406,019  
Insured – Water and Sewer — 6.6%  

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

  $ 2,150     $ 1,801,808  

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

    635       552,850  
      $ 2,354,658  
Senior Living / Life Care — 2.0%  

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

  $ 675     $ 701,811  
      $ 701,811  
Special Tax Revenue — 8.0%  

New York State Urban Development Corp., Personal Income Tax Revenue, 4.00%, 3/15/45(1)

  $ 2,800     $ 2,850,652  
      $ 2,850,652  
Security   Principal
Amount
(000’s omitted)
    Value  
Student Loan — 2.8%  

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

  $ 965     $ 987,214  
      $ 987,214  
Transportation — 34.8%  

Delaware River Joint Toll Bridge Commission of Pennsylvania and New Jersey, 5.00%, 7/1/37(1)

  $ 1,150     $ 1,302,099  

Delaware River Joint Toll Bridge Commission of Pennsylvania and New Jersey, 5.00%, 7/1/37

    20       22,645  

Delaware River Joint Toll Bridge Commission of Pennsylvania and New Jersey, 5.00%, 7/1/47(1)

    3,125       3,502,937  

Delaware River Joint Toll Bridge Commission of Pennsylvania and New Jersey, 5.00%, 7/1/47

    15       16,814  

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

    590       608,862  

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

    210       216,636  

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

    1,150       1,218,207  

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

    2,675       3,030,187  

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

    2,000       2,233,180  

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

    200       215,164  
      $ 12,366,731  
Water and Sewer — 16.9%  

Atlanta, GA, Water and Wastewater Revenue, 5.00%, 11/1/43(1)

  $ 3,750     $ 4,249,725  

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

    410       442,521  

Passaic County Utilities Authority, 5.00%, 3/1/37

    695       825,146  

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

    1,000       497,170  
      $ 6,014,562  

Total Tax-Exempt Investments — 172.6%
(identified cost $59,370,432)

 

  $ 61,269,674  

Institutional MuniFund Term Preferred Shares, at Liquidation Value
(net of unamortized deferred offering costs) — (16.3)%

 

  $ (5,767,682

Other Assets, Less Liabilities — (56.3)%

 

  $ (20,013,244

Net Assets Applicable to Common Shares — 100.0%

 

  $ 35,488,748  

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

 

 

  24   See Notes to Financial Statements.


Eaton Vance

New Jersey Municipal Bond Fund

September 30, 2018

 

Portfolio of Investments — continued

 

 

or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2018, 34.7% 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 1.8% to 15.2% of total investments.

 

(1) 

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

Abbreviations:

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
BHAC     Berkshire Hathaway Assurance Corp.
NPFG     National Public Finance Guaranty Corp.
XLCA     XL Capital Assurance, Inc.
 

 

  25   See Notes to Financial Statements.


Eaton Vance

New York Municipal Bond Fund II

September 30, 2018

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 170.7%

 

Security   Principal
Amount
(000’s omitted)
    Value  
Bond Bank — 10.7%  

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

  $ 750     $ 780,615  

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

    2,500       2,554,800  
      $ 3,335,415  
Education — 34.0%  

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

  $ 605     $ 656,812  

New York Dormitory Authority, (Columbia University), 5.00%, 10/1/38(1)

    2,000       2,314,120  

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

    1,275       1,354,254  

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

    1,275       1,332,681  

New York Dormitory Authority, (New York University), 5.00%, 7/1/39(1)

    2,000       2,281,320  

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

    100       109,298  

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

    610       622,938  

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

    325       347,594  

New York Dormitory Authority, (The New School), Prerefunded to 7/1/20, 5.50%, 7/1/40

    1,000       1,060,840  

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

    515       570,146  
      $ 10,650,003  
Electric Utilities — 6.1%  

Utility Debt Securitization Authority, 5.00%, 12/15/36(1)

  $ 1,675     $ 1,890,489  
      $ 1,890,489  
Escrowed / Prerefunded — 7.8%  

Metropolitan Transportation Authority, Prerefunded to 11/15/20, 5.00%, 11/15/34

  $ 2,000     $ 2,127,720  

Triborough Bridge and Tunnel Authority, Prerefunded to 11/15/18,
5.00%, 11/15/38(1)

    300       301,170  
      $ 2,428,890  
General Obligations — 9.5%  

New York, 5.00%, 2/15/34(1)

  $ 1,000     $ 1,065,230  

New York City, 4.00%, 8/1/34

    400       415,524  

New York City, 5.00%, 8/1/34(1)

    1,350       1,490,981  
      $ 2,971,735  
Security   Principal
Amount
(000’s omitted)
    Value  
Hospital — 4.4%  

New York Dormitory Authority, (Highland Hospital of Rochester), 5.00%, 7/1/26

  $ 135     $ 140,777  

New York Dormitory Authority, (Highland Hospital of Rochester), 5.20%, 7/1/32

    180       187,684  

New York Dormitory Authority, (Memorial Sloan Kettering Cancer Center), 4.375%, 7/1/34(1)

    500       527,290  

Suffolk County Economic Development Corp., (Catholic Health Services of Long Island Obligated Group), 5.00%, 7/1/28

    490       523,521  
      $ 1,379,272  
Industrial Development Revenue — 1.5%  

New York Liberty Development Corp., (Goldman Sachs Group, Inc.), 5.25%, 10/1/35

  $ 380     $ 462,460  
      $ 462,460  
Insured – Education — 3.8%  

New York Dormitory Authority, (Barnard College), (NPFG), 5.00%, 7/1/24

  $ 290     $ 290,737  

New York Dormitory Authority, (Pratt Institute), (AGC), Prerefunded to 7/1/19, 5.00%, 7/1/34

    345       352,966  

New York Dormitory Authority, (Pratt Institute), (AGC), Prerefunded to 7/1/19, 5.125%, 7/1/39

    545       558,085  
      $ 1,201,788  
Insured – Electric Utilities — 3.3%  

Long Island Power Authority, Electric System Revenue, (BHAC), Prerefunded to 5/1/19, 5.50%, 5/1/33

  $ 500     $ 510,480  

Long Island Power Authority, Electric System Revenue, (BHAC), Prerefunded to 5/1/19, 6.00%, 5/1/33

    500       511,920  
      $ 1,022,400  
Insured – Escrowed / Prerefunded — 2.9%  

Nassau County Sewer and Storm Water Finance Authority, (BHAC), Prerefunded to 11/1/18, 5.375%, 11/1/28

  $ 905     $ 907,570  
      $ 907,570  
Insured – General Obligations — 1.2%  

Longwood Central School District, Suffolk County, (AGC), 4.15%, 6/1/23

  $ 185     $ 185,303  

Longwood Central School District, Suffolk County, (AGC), 4.25%, 6/1/24

    190       190,329  
      $ 375,632  
 

 

  26   See Notes to Financial Statements.


Eaton Vance

New York Municipal Bond Fund II

September 30, 2018

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
Insured – Hospital — 1.6%  

New York City Health and Hospitals Corp., (AGM), 5.50%, 2/15/20

  $ 500     $ 501,390  
      $ 501,390  
Insured – Special Tax Revenue — 3.9%  

New York Thruway Authority, Miscellaneous Tax Revenue, (AMBAC), 5.50%, 4/1/20

  $ 510     $ 537,132  

Puerto Rico Infrastructure Financing Authority, (AMBAC), 0.00%, 7/1/35

    1,700       687,344  
      $ 1,224,476  
Lease Revenue / Certificates of Participation — 7.1%  

Hudson Yards Infrastructure Corp., 5.00%, 2/15/42(1)

  $ 2,000     $ 2,234,400  
      $ 2,234,400  
Other Revenue — 18.3%  

Brooklyn Arena Local Development Corp., (Barclays Center), 0.00%, 7/15/31

  $ 1,100     $ 663,762  

Brooklyn Arena Local Development Corp., (Barclays Center), 5.00%, 7/15/42

    500       533,850  

New York City Transitional Finance Authority, (Building Aid), 5.00%, 7/15/37(1)

    2,200       2,502,610  

New York Liberty Development Corp., (7 World Trade Center), 5.00%, 9/15/32

    1,865       2,029,251  
      $ 5,729,473  
Special Tax Revenue — 24.4%  

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

  $ 280     $ 299,275  

New York City Transitional Finance Authority, Future Tax Revenue, Prerefunded to 11/1/20, 5.50%, 11/1/35(1)

    220       235,332  

New York Dormitory Authority, Personal Income Tax Revenue, 5.00%, 6/15/31(1)

    2,750       3,021,397  

New York Dormitory Authority, Personal Income Tax Revenue, Series 2011A, 5.00%, 3/15/33

    650       692,257  

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

    1,020       1,121,837  

New York Dormitory Authority, Sales Tax Revenue, 5.00%, 3/15/43(1)

    2,000       2,265,460  
      $ 7,635,558  
Senior Living / Life Care — 0.5%  

Brookhaven Local Development Corp., (Jeffersons Ferry), 5.25%, 11/1/36

  $ 125     $ 140,371  
      $ 140,371  
Security   Principal
Amount
(000’s omitted)
    Value  
Transportation — 13.3%  

Metropolitan Transportation Authority, 4.00%, 11/15/42

  $ 1,240     $ 1,249,821  

Nassau County Bridge Authority, 5.00%, 10/1/35

    350       367,223  

Nassau County Bridge Authority, 5.00%, 10/1/40

    65       68,082  

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

    820       915,333  

Port Authority of New York and New Jersey, 5.00%, 10/15/36(1)

    1,200       1,363,092  

Triborough Bridge and Tunnel Authority, 5.00%, 11/15/38(1)

    200       200,766  
      $ 4,164,317  
Water and Sewer — 16.4%  

New York City Municipal Water Finance Authority, (Water and Sewer System), 5.00%, 6/15/46(1)

  $ 2,000     $ 2,225,180  

New York City Municipal Water Finance Authority, (Water and Sewer System), (SPA: Bank of Montreal), 1.67%, 6/15/49(2)

    575       575,000  

Suffolk County Water Authority,
5.00%, 6/1/36(1)

    2,000       2,336,980  
      $ 5,137,160  

Total Tax-Exempt Investments — 170.7%
(identified cost $52,549,983)

 

  $ 53,392,799  

Other Assets, Less Liabilities — (70.7)%

 

  $ (22,107,672

Net Assets Applicable to Common Shares — 100.0%

 

  $ 31,285,127  

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 York municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2018, 9.8% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 0.5% to 3.6% of total investments.

 

(1) 

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

 

(2) 

Variable rate demand obligation that may be tendered at par on any day for payment the same or next business day. The stated interest rate, which generally resets daily, is determined by the remarketing agent and represents the rate in effect at September 30, 2018.

Abbreviations:

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
BHAC     Berkshire Hathaway Assurance Corp.
NPFG     National Public Finance Guaranty Corp.
SPA     Standby Bond Purchase Agreement
 

 

  27   See Notes to Financial Statements.


Eaton Vance

Ohio Municipal Bond Fund

September 30, 2018

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 156.5%

 

Security

  Principal
Amount
(000’s omitted)
    Value  
Bond Bank — 4.1%  

Ohio Economic Development, (Ohio Enterprise Bond Fund), 6.00%, 12/1/34

  $ 700     $ 758,674  

Rickenbacker Port Authority, (OASBO Expanded Asset Pooled Financing Program), 5.375%, 1/1/32

    555       612,964  
      $ 1,371,638  
Education — 7.3%  

Ohio Higher Educational Facility Commission, (Kenyon College), 5.00%, 7/1/44

  $ 200     $ 209,014  

Ohio Higher Educational Facility Commission, (Oberlin College), 5.00%, 10/1/33

    500       549,495  

University of Cincinnati, 5.00%, 6/1/45(1)

    1,500       1,671,585  
      $ 2,430,094  
Electric Utilities — 1.6%  

Ohio Air Quality Development Authority, (Buckeye Power, Inc.), 6.00%, 12/1/40

  $ 500     $ 536,070  
      $ 536,070  
Escrowed / Prerefunded — 5.3%  

Apollo Career Center Joint Vocational School District, Prerefunded to 12/1/21, 5.25%, 12/1/33

  $ 270     $ 296,331  

Ohio Higher Educational Facility Commission, (Kenyon College), Prerefunded to 7/1/20, 5.00%, 7/1/44

    105       110,249  

Ohio Higher Educational Facility Commission, (Summa Health System), Prerefunded to 5/15/20, 5.75%, 11/15/40

    290       307,046  

Ohio Turnpike Commission, Prerefunded to 2/15/20, 5.00%, 2/15/31

    1,000       1,041,270  
      $ 1,754,896  
General Obligations — 37.3%  

Cleveland, 5.00%, 12/1/43(1)

  $ 2,225     $ 2,492,668  

Forest Hills Local School District, 5.00%, 12/1/46(1)

    2,225       2,447,344  

Ohio, 5.00%, 2/1/37(1)

    2,225       2,500,210  

Upper Arlington City School District, 5.00%, 12/1/48(1)

    2,225       2,520,035  

Will County, 5.00%, 11/15/45(1)

    2,225       2,421,935  
      $ 12,382,192  
Hospital — 20.2%  

Allen County, (Mercy Health), 4.00%, 8/1/47(1)

  $ 900     $ 890,838  

Franklin County, (Trinity Health Credit Group), 5.00%, 12/1/47(1)

    2,200       2,434,872  

Hamilton County, (Cincinnati Children’s Hospital Medical Center), 5.00%, 5/15/34

    250       275,400  

Security

  Principal
Amount
(000’s omitted)
    Value  
Hospital (continued)  

Lucas County, (ProMedica Healthcare Obligated Group), 4.00%, 11/15/45

  $ 260     $ 237,461  

Middleburg Heights, (Southwest General Health Center), 5.25%, 8/1/36

    500       538,755  

Middleburg Heights, (Southwest General Health Center), 5.25%, 8/1/41

    755       812,018  

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

    500       528,935  

Ohio Higher Educational Facility Commission, (Summa Health System), 5.75%, 11/15/40

    170       177,522  

Ohio Higher Educational Facility Commission, (University Hospitals Health System, Inc.), 5.00%, 1/15/27

    565       614,850  

Ohio Higher Educational Facility Commission, (University Hospitals Health System, Inc.), 5.00%, 1/15/29

    165       177,896  
      $ 6,688,547  
Insured – Education — 0.3%  

Kent State University, (AGC), 5.00%, 5/1/26

  $ 80     $ 81,358  
      $ 81,358  
Insured – Electric Utilities — 19.7%  

Cleveland, Public Power System Revenue, (NPFG), 0.00%, 11/15/27

  $ 2,750     $ 2,000,488  

Cleveland, Public Power System Revenue, (NPFG), 0.00%, 11/15/38

    1,000       424,670  

Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/27

    5,000       3,783,150  

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

    305       328,387  
      $ 6,536,695  
Insured – Escrowed / Prerefunded — 7.3%  

Brooklyn City School District, (AGM), Prerefunded to 12/1/20, 5.00%, 12/1/38

  $ 445     $ 472,732  

Kent State University, (AGC), Prerefunded to 5/1/19, 5.00%, 5/1/26

    920       936,376  

Youngstown State University, (AGC), Prerefunded to 6/15/19, 5.50%, 12/15/33

    1,000       1,024,910  
      $ 2,434,018  
Insured – General Obligations — 5.4%  

Plain School District, (NPFG), 0.00%, 12/1/27

  $ 2,400     $ 1,792,536  
      $ 1,792,536  
Insured – Special Tax Revenue — 12.5%  

Hamilton County Sales Tax, (AMBAC), 0.00%, 12/1/23

  $ 1,245     $ 1,079,577  
 

 

  28   See Notes to Financial Statements.


Eaton Vance

Ohio Municipal Bond Fund

September 30, 2018

 

Portfolio of Investments — continued

 

 

Security

  Principal
Amount
(000’s omitted)
    Value  
Insured – Special Tax Revenue (continued)  

Hamilton County Sales Tax, (AMBAC), 0.00%, 12/1/24

  $ 3,665     $ 3,069,034  
      $ 4,148,611  
Insured – Transportation — 3.0%  

Cleveland, Airport System Revenue, (AGM), 5.00%, 1/1/30

  $ 480     $ 516,408  

Puerto Rico Highway and Transportation Authority, (AGM), 5.00%, 7/1/32

    475       491,525  
      $ 1,007,933  
Insured – Water and Sewer — 1.7%  

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

  $ 535     $ 556,256  
      $ 556,256  
Senior Living / Life Care — 3.6%  

Franklin County, (Friendship Village of Dublin), 5.00%, 11/15/44

  $ 525     $ 550,032  

Hamilton County, (Life Enriching Communities), 5.00%, 1/1/32

    375       393,979  

Warren County, (Otterbein Homes Obligated Group), 5.75%, 7/1/33

    220       246,884  
      $ 1,190,895  
Special Tax Revenue — 15.2%  

Cleveland, Income Tax Revenue, 5.00%, 10/1/39(1)

  $ 450     $ 506,079  

Cleveland, Income Tax Revenue, 5.00%, 10/1/43(1)

    1,800       2,015,028  

Franklin County, Sales Tax Revenue, 5.00%, 6/1/38(1)

    1,100       1,269,356  

Franklin County, Sales Tax Revenue, 5.00%, 6/1/43(1)

    1,100       1,260,468  
      $ 5,050,931  
Water and Sewer — 12.0%  

Northeast Ohio Regional Sewer District, 4.00%, 11/15/33(1)

  $ 1,000     $ 1,034,070  

Texas Water Development Board, 4.00%, 10/15/47(1)

    2,900       2,950,634  
      $ 3,984,704  

Total Tax-Exempt Investments — 156.5%
(identified cost $49,721,276)

 

  $ 51,947,374  

Other Assets, Less Liabilities — (56.5)%

 

  $ (18,752,672

Net Assets Applicable to Common Shares — 100.0%

 

  $ 33,194,702  

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 Ohio municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2018, 31.9% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 2.9% to 16.0% of total investments.

 

(1) 

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

Abbreviations:

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
NPFG     National Public Finance Guaranty Corp.
 

 

  29   See Notes to Financial Statements.


Eaton Vance

Pennsylvania Municipal Bond Fund

September 30, 2018

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 161.1%

 

Security   Principal
Amount
(000’s omitted)
    Value  
Education — 25.1%  

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/24

  $ 95     $ 105,688  

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/25

    135       151,385  

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/26

    140       157,342  

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/27

    185       206,810  

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/30

    150       164,699  

Pennsylvania Higher Educational Facilities Authority, (Saint Joseph’s University), 5.00%, 11/1/40

    440       457,974  

Pennsylvania State University, 5.00%, 9/1/42(1)

    3,750       4,248,037  

State Public School Building Authority, (Northampton County Area Community College), 5.50%, 3/1/31

    750       802,733  

Swarthmore Borough Authority, (Swarthmore College), 5.00%, 9/15/38

    250       278,325  

Swarthmore Borough Authority, (Swarthmore College), 5.00%, 9/15/46(1)

    3,000       3,426,870  
      $ 9,999,863  
Escrowed / Prerefunded — 16.9%  

Allegheny County Higher Education Building Authority, (Duquesne University), Prerefunded to 3/1/21, 5.50%, 3/1/31

  $ 1,050     $ 1,133,842  

General Authority of Southcentral Pennsylvania, (York College of Pennsylvania), Prerefunded to 5/1/21, 5.50%, 11/1/31

    1,500       1,627,425  

Pennsylvania Higher Educational Facilities Authority, (Thomas Jefferson University), Prerefunded to 3/1/20, 5.00%, 3/1/40

    925       962,425  

Pennsylvania Turnpike Commission, Prerefunded to 12/1/20, 5.35%, 12/1/30

    135       144,408  

Pennsylvania Turnpike Commission, Prerefunded to 12/1/20, 5.35%, 12/1/30

    175       187,196  

Pennsylvania Turnpike Commission, Prerefunded to 12/1/21, 5.25%, 12/1/31

    1,000       1,097,520  

Philadelphia, Water and Wastewater Revenue, Prerefunded to 1/1/19, 5.25%, 1/1/32

    715       721,099  

South Fork Municipal Authority, (Conemaugh Health System), Prerefunded to 7/1/20, 5.50%, 7/1/29

    250       264,410  

Washington County Industrial Development Authority, (Washington and Jefferson College), Prerefunded to 5/1/20, 5.25%, 11/1/30

    575       604,475  
      $ 6,742,800  
Security   Principal
Amount
(000’s omitted)
    Value  
General Obligations — 48.9%  

Allegheny County, 5.00%, 11/1/43(1)

  $ 3,800     $ 4,256,570  

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

    1,000       1,243,810  

Pennsylvania, 4.00%, 4/1/29(1)

    3,000       3,117,630  

Pennsylvania, 5.00%, 3/1/32(1)

    2,750       3,123,203  

Peters Township School District, 5.00%, 9/1/40(1)

    3,225       3,612,838  

State College Area School District, 5.00%, 5/15/44(1)

    3,650       4,128,807  
      $ 19,482,858  
Hospital — 10.5%  

Franklin County Industrial Development Authority, (The Chambersburg Hospital), 5.375%, 7/1/42

  $ 1,000     $ 1,047,410  

Monroeville Finance Authority, (UPMC Obligated Group), 5.00%, 2/15/42

    500       538,535  

Northampton County General Purpose Authority, (Saint Luke’s Hospital), 5.50%, 8/15/33

    250       262,857  

Pennsylvania Higher Educational Facilities Authority, (University of Pennsylvania Health System), 4.00%, 8/15/42(1)

    1,600       1,616,624  

Pennsylvania Higher Educational Facilities Authority, (UPMC Health System), 5.00%, 5/15/31

    675       703,789  
      $ 4,169,215  
Housing — 0.5%  

East Hempfield Township Industrial Development Authority, (Student Services, Inc.), 5.00%, 7/1/39

  $ 175     $ 184,356  
      $ 184,356  
Insured – Electric Utilities — 3.3%  

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

  $ 490     $ 525,461  

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

    750       801,968  
      $ 1,327,429  
Insured – Escrowed / Prerefunded — 5.9%  

Bucks County Water and Sewer Authority, (AGM), Prerefunded to 12/1/20, 5.00%, 12/1/35

  $ 500     $ 531,710  

Centennial School District, (AGM), Prerefunded to 12/15/18, 5.25%, 12/15/37

    660       664,633  

Erie Sewer Authority, Series A, (AMBAC), Escrowed to Maturity, 0.00%, 12/1/25

    180       147,595  

Pennsylvania Higher Educational Facilities Authority, (University of the Sciences in Philadelphia), (AGC), Prerefunded to 11/1/18, 5.00%, 11/1/37

    500       501,275  

State Public School Building Authority, (Harrisburg School District), (AGC), Prerefunded to 5/15/19, 5.00%, 11/15/33

    85       86,587  

State Public School Building Authority, (Harrisburg School District), (AGC), Prerefunded to 5/15/19, 5.00%, 11/15/33

    85       86,587  
 

 

  30   See Notes to Financial Statements.


Eaton Vance

Pennsylvania Municipal Bond Fund

September 30, 2018

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
Insured – Escrowed / Prerefunded (continued)  

State Public School Building Authority, (Harrisburg School District), (AGC), Prerefunded to 5/15/19, 5.00%, 11/15/33

  $ 330     $ 336,161  
      $ 2,354,548  
Insured – General Obligations — 11.2%  

Erie School District, (AMBAC), 0.00%, 9/1/30

  $ 1,000     $ 604,490  

McKeesport School District, (NPFG), 0.00%, 10/1/21

    2,555       2,348,607  

Shaler Area School District, (XLCA), 0.00%, 9/1/33

    2,550       1,488,996  
      $ 4,442,093  
Insured – Hospital — 0.7%  

Allegheny County Hospital Development Authority, (UPMC Health System), (NPFG), 6.00%, 7/1/24

  $ 250     $ 294,655  
      $ 294,655  
Insured – Industrial Development Revenue — 2.6%  

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

  $ 1,000     $ 1,027,470  
      $ 1,027,470  
Insured – Lease Revenue / Certificates of Participation — 1.3%  

Commonwealth Financing Authority, (AGC), 5.00%, 6/1/31

  $ 500     $ 508,530  
      $ 508,530  
Insured – Special Tax Revenue — 0.8%  

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

  $ 1,295     $ 328,270  
      $ 328,270  
Insured – Transportation — 6.0%  

Puerto Rico Highway and Transportation Authority, (AGC), 5.25%, 7/1/41

  $ 2,100     $ 2,380,140  
      $ 2,380,140  
Insured – Water and Sewer — 3.5%  

Erie Sewer Authority, Series B, (AMBAC), 0.00%, 12/1/26

  $ 1,920     $ 1,392,902  
      $ 1,392,902  
Special Tax Revenue — 14.9%  

Allegheny County Port Authority, 5.75%, 3/1/29

  $ 1,500     $ 1,624,125  

Pennsylvania Turnpike Commission, Oil Franchise Tax Revenue, 5.25%, 12/1/44(1)

    3,750       4,320,900  
      $ 5,945,025  
Security   Principal
Amount
(000’s omitted)
    Value  
Transportation — 9.0%  

Delaware River Joint Toll Bridge Commission of Pennsylvania and New Jersey, 5.00%, 7/1/47(1)

  $ 1,450     $ 1,625,363  

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

    465       479,866  

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

    730       753,068  

Pennsylvania Turnpike Commission, Prerefunded to 12/1/20, 5.35%, 12/1/30

    190       202,616  

Philadelphia, Airport Revenue, 5.25%, 6/15/27

    500       525,675  
      $ 3,586,588  

Total Tax-Exempt Investments — 161.1%
(identified cost $62,709,750)

 

  $ 64,166,742  

Other Assets, Less Liabilities — (61.1)%

 

  $ (24,338,959

Net Assets Applicable to Common Shares — 100.0%

 

  $ 39,827,783  

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 Pennsylvania municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2018, 21.9% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 1.6% to 6.7% of total investments.

 

(1) 

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

Abbreviations:

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
BHAC     Berkshire Hathaway Assurance Corp.
NPFG     National Public Finance Guaranty Corp.
XLCA     XL Capital Assurance, Inc.
 

 

  31   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

September 30, 2018

 

Statements of Assets and Liabilities

 

 

    September 30, 2018  
Assets   Municipal Fund II     California Fund II     Massachusetts Fund     Michigan Fund  

Investments —

       

Identified cost

  $ 195,115,571     $ 77,055,962     $ 37,563,655     $ 33,736,879  

Unrealized appreciation

    7,413,831       1,803,343       1,377,066       882,124  

Investments, at value

  $ 202,529,402     $ 78,859,305     $ 38,940,721     $ 34,619,003  

Cash

  $ 4,516,362     $ 1,360,489     $ 605,265     $ 325,146  

Interest receivable

    2,151,498       771,819