Regulatory Filings • Jul 26, 2012
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Download Source FileN-CSRS 1 b90736a1nvcsrs.htm EATON VANCE MUNICIPAL INCOME TRUST Eaton Vance Municipal Income Trust PAGEBREAK
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: 811-09141
Eaton Vance Municipal Income Trust
(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
(Registrants Telephone Number)
November 30
Date of Fiscal Year End
May 31, 2012
Date of Reporting Period
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Item 1. Reports to Stockholders
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Eaton Vance Municipal Income Trust (EVN) Semiannual Report May 31, 2012
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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.
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Semiannual Report May 31, 2012
Eaton Vance Municipal Income Trust
Table of Contents
| Performance | 2 |
|---|---|
| Fund Profile | 2 |
| Endnotes and Additional Disclosures | 3 |
| Financial Statements | 4 |
| Annual Meeting of Shareholders | 22 |
| Board of Trustees Contract Approval | 23 |
| Officers and Trustees | 26 |
| Important Notices | 27 |
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Eaton Vance
Municipal Income Trust
May 31, 2012
Portfolio Manager Thomas M. Metzold, CFA
Performance 1,2
| % Average Annual Total Returns — Fund at NAV | 1/29/1999 | 17.81 % | 25.49 % | 2.99 % | 7.24 % |
|---|---|---|---|---|---|
| Fund at Market Price | | 18.59 | 25.27 | 5.64 | 7.59 |
| Barclays Capital Long (22+) Municipal Bond Index | | 9.18 % | 16.60 % | 5.45 % | 6.09 % |
| % Premium/Discount to NAV |
|---|
| 15.32 % |
| Distributions 3 | |
|---|---|
| Total Distributions per share for the period | $ 0.487 |
| Distribution Rate at NAV | 7.74 % |
| Taxable-Equivalent Distribution Rate at NAV | 11.91 % |
| Distribution Rate at Market Price | 6.71 % |
| Taxable-Equivalent Distribution Rate at Market Price | 10.32 % |
| % Total Leverage 4 | |
|---|---|
| Auction Preferred Shares (APS) | 23.32 % |
| Residual Interest Bond (RIB) | 22.95 |
Fund Profile
Credit Quality (% of total investments) 5
The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing. 4 Absent such securities, credit quality (% of total investments) is as follows: 5
| AAA | 10.1 | B | 6.8 |
|---|---|---|---|
| AA | 28.6 | CCC | 1.8 |
| A | 27.9 | CC | 0.1 |
| BBB | 13.0 | D | 0.4 |
| BB | 5.0 | Not Rated | 6.3 |
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.
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Eaton Vance
Municipal Income Trust
May 31, 2012
Endnotes and Additional Disclosures
1 Barclays Capital Long (22+) Municipal Bond Index is an unmanaged index of municipal bonds traded in the U.S. with maturities of 22 years or more. Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index.
2 Performance results reflect the effects of leverage.
3 The Distribution Rate is based on the Funds last regular distribution per share in the period (annualized) divided by the Funds NAV or market price at the end of the period. The Funds distributions may be composed of ordinary income, tax-exempt income, net realized capital gains and return of capital. Taxable-equivalent performance is based on the highest combined federal and state income tax rates, where applicable. Lower tax rates would result in lower tax-equivalent performance. Actual tax rates will vary depending on your income, exemptions and deductions. Rates do not include local taxes.
4 Fund employs RIB financing and/or APS leverage. The leverage created by RIB investments and APS provides an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater price volatility). The cost of leverage rises and falls with changes in short-term interest rates. See Floating Rate Notes Issued in Conjunction with Securities Held in the notes to the financial statements for more information about RIB financing. RIB leverage represents the amount of Floating Rate Notes outstanding at period end as a percentage of Fund net assets applicable to common shares plus APS and Floating Rate Notes. APS leverage represents the liquidation value of the Funds APS outstanding at period end as a percentage of Fund net assets applicable to common shares plus APS and Floating Rate Notes. The Fund is required to maintain prescribed asset coverage for its APS, which could be reduced if Fund asset values decline.
5 Ratings are based on Moodys, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agencys investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuers current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a securitys market value or of the liquidity of an investment in the security. If securities are rated differently by the rating agencies, the higher rating is applied.
Fund profile subject to change due to active management.
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Eaton Vance
Municipal Income Trust
May 31, 2012
Portfolio of Investments (Unaudited)
| Tax-Exempt Municipal Securities 181.5% | ||
|---|---|---|
| Principal Amount | ||
| Security | (000s omitted) | Value |
| Cogeneration 1.2% | ||
| Maryland Energy Financing Administration, (AES Warrior Run), | ||
| (AMT), 7.40%, 9/1/19 | $ 2,950 | $ 2,966,756 |
| Pennsylvania Economic Development Financing Authority, | ||
| (Northampton Generating), (AMT), | ||
| 6.50%, 1/1/13 (1) | 400 | 252,000 |
| $ 3,218,756 | ||
| Education 9.9% | ||
| Massachusetts Development Finance Agency, (Boston University), | ||
| 6.00%, 5/15/59 | $ 1,000 | $ 1,215,720 |
| Massachusetts Health and Educational Facilities Authority, | ||
| (Harvard University), | ||
| 5.00%, 10/1/38 (2) | 2,490 | 2,865,368 |
| Massachusetts Health and Educational Facilities Authority, | ||
| (Harvard University), 5.50%, 11/15/36 | 2,500 | 3,009,800 |
| New York Dormitory Authority, (Cornell University), | ||
| 5.00%, 7/1/39 (2) | 10,500 | 11,713,800 |
| New York Dormitory Authority, (The New School), | ||
| 5.75%, 7/1/50 | 5,000 | 5,674,800 |
| Oregon Facilities Authority, (Lewis & Clark College), | ||
| 5.625%, 10/1/36 | 1,475 | 1,700,439 |
| Rhode Island Health and Educational Building Corp., (University | ||
| of Rhode Island), 6.25%, 9/15/34 | 1,000 | 1,158,250 |
| $ 27,338,177 | ||
| Electric | ||
| Utilities 2.3% | ||
| Apache County, AZ, Industrial Development Authority, (Tucson | ||
| Electric Power Co.), 4.50%, 3/1/30 | $ 1,715 | $ 1,753,793 |
| Brazos River Authority, TX, Pollution Control Revenue, (Texas | ||
| Energy Co.), (AMT), 8.25%, 5/1/33 | 3,715 | 559,108 |
| Hawaii Department of Budget and Finance, (Hawaiian Electric | ||
| Co.), 6.50%, 7/1/39 | 2,540 | 2,948,610 |
| Puerto Rico Electric Power Authority, 5.00%, 7/1/42 | 1,000 | 1,012,210 |
| $ 6,273,721 | ||
| General | ||
| Obligations 9.5% | ||
| California, 5.50%, 3/1/40 | $ 1,475 | $ 1,667,768 |
| California, (AMT), 5.05%, 12/1/36 | 1,525 | 1,552,785 |
| Frisco, TX, Independent School District, (PSF Guaranteed), | ||
| 5.00%, 8/15/37 (2) | 9,000 | 10,324,980 |
| Klein, TX, Independent School District, (PSF Guaranteed), | ||
| 5.00%, 2/1/36 (2) | 3,250 | 3,720,015 |
| New York, | ||
| 5.00%, 2/15/34 (2) | 2,500 | 2,865,000 |
| Port of Houston Authority of Harris County, TX, (AMT), | ||
| 5.625%, 10/1/38 (2) | 2,340 | 2,627,914 |
| Will County, IL, Community Unit School District No. 365-U, (Valley View), 5.75%, 11/1/32 | 2,980 | 3,496,881 |
| $ 26,255,343 | ||
| Health Care | ||
| Miscellaneous 1.0% | ||
| New Jersey Health Care Facilities Financing Authority, (Hospital | ||
| Asset Transformation Program), 5.75%, 10/1/31 | $ 1,735 | $ 2,015,306 |
| Tax Revenue Exempt Securities Trust, Community Health Provider, | ||
| (Pooled Loan Program Various States Trust Certificates), | ||
| 6.00%, 12/1/36 (3) | 158 | 158,931 |
| Tax Revenue Exempt Securities Trust, Community Health Provider, | ||
| (Pooled Loan Program Various States Trust Certificates), | ||
| 6.25%, 12/1/36 (3) | 418 | 421,007 |
| Tax Revenue Exempt Securities Trust, Community Health Provider, | ||
| (Pooled Loan Program Various States Trust Certificates), | ||
| 7.75%, 12/1/36 (3) | 158 | 160,096 |
| $ 2,755,340 | ||
| Hospital 22.1% | ||
| California Health Facilities Financing Authority, (Cedars-Sinai | ||
| Medical Center), 5.00%, 8/15/39 | $ 2,295 | $ 2,457,325 |
| California Health Facilities Financing Authority, (Providence | ||
| Health System), | ||
| 5.50%, 10/1/39 (2)(4) | 10,000 | 11,272,900 |
| California Statewide Communities Development Authority, (John | ||
| Muir Health), 5.00%, 8/15/34 | 3,255 | 3,448,803 |
| California Statewide Communities Development Authority, (John | ||
| Muir Health), 5.00%, 8/15/36 | 2,510 | 2,641,373 |
| Camden County, NJ, Improvement Authority, (Cooper Health | ||
| System), 5.00%, 2/15/35 | 1,610 | 1,643,552 |
| Camden County, NJ, Improvement Authority, (Cooper Health | ||
| System), 5.25%, 2/15/27 | 1,165 | 1,205,973 |
| Hawaii Pacific Health Special Purpose Revenue, 5.50%, 7/1/40 | 1,870 | 2,002,658 |
| Illinois Finance Authority, (Provena Healthcare), | ||
| 7.75%, 8/15/34 | 3,280 | 4,181,180 |
| Louisiana Public Facilities Authority, (Touro Infirmary), | ||
| 5.625%, 8/15/29 | 2,575 | 2,576,288 |
| Massachusetts Development Finance Agency, (Tufts Medical | ||
| Center), 6.75%, 1/1/36 | 1,535 | 1,780,370 |
| Mecosta County, MI, (Michigan General Hospital), | ||
| 6.00%, 5/15/18 | 1,800 | 1,802,880 |
| Monroe County, PA, Hospital Authority, (Pocono Medical Center), | ||
| 5.25%, 1/1/43 | 3,000 | 3,091,500 |
| New York Dormitory Authority, (Orange Regional Medical Center), | ||
| 6.125%, 12/1/29 | 1,465 | 1,593,583 |
| New York Dormitory Authority, (Orange Regional Medical Center), | ||
| 6.25%, 12/1/37 | 2,930 | 3,152,973 |
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Eaton Vance
Municipal Income Trust
May 31, 2012
Portfolio of Investments (Unaudited) continued
| Security | Principal Amount — (000s omitted) | Value |
|---|---|---|
| Hospital (continued) | ||
| North Carolina Medical Care Commission, (North Carolina Baptist | ||
| Hospital), | ||
| 5.25%, 6/1/29 (2) | $ 11,400 | $ 12,802,770 |
| Orange County, FL, Health Facilities Authority, (Orlando Health, | ||
| Inc.), 5.00%, 10/1/42 | 2,215 | 2,353,659 |
| South Lake County, FL, Hospital District, (South Lake Hospital), | ||
| 6.25%, 4/1/39 | 1,570 | 1,720,783 |
| St. Paul, MN, Housing and Redevelopment Authority, | ||
| (HealthPartners, Inc.), 5.25%, 5/15/36 | 1,500 | 1,547,685 |
| $ 61,276,255 | ||
| Housing 6.3% | ||
| Charter Mac Equity Trust, TN, | ||
| 6.00%, 5/15/19 (3) | $ 4,000 | $ 4,705,440 |
| Fairfax County, VA, Redevelopment and Housing Authority, (Cedar | ||
| Ridge), (AMT), 4.85%, 10/1/48 | 1,420 | 1,452,305 |
| Lake Creek, CO, Affordable Housing Corp., MFMR, | ||
| 7.00%, 12/1/23 | 1,395 | 1,396,186 |
| Nebraska Investment Finance Authority, Single Family Housing, | ||
| (FHLMC), (FNMA), (GNMA), 5.90%, 9/1/36 | 1,750 | 2,003,785 |
| Oregon Health Authority, (Trillium Affordable Housing), (AMT), | ||
| 6.75%, 2/15/29 | 3,055 | 3,056,803 |
| Texas Student Housing Corp., (University of Northern Texas), | ||
| 6.75%, 7/1/16 | 3,325 | 3,072,067 |
| Texas Student Housing Corp., (University of Northern Texas), | ||
| 6.85%, 7/1/31 | 125 | 91,311 |
| Virginia Housing Development Authority, (AMT), 5.30%, 7/1/35 | 1,500 | 1,573,710 |
| $ 17,351,607 | ||
| Industrial Development | ||
| Revenue 10.8% | ||
| ABIA Development Corp., TX, (Austin CargoPort Development), | ||
| (AMT), 6.50%, 10/1/24 | $ 1,510 | $ 1,337,181 |
| Broward County, FL, (Lynxs CargoPort), (AMT), | ||
| 6.75%, 6/1/19 (1) | 1,770 | 1,267,497 |
| Butler County, AL, Industrial Development Authority, | ||
| (International Paper Co.), (AMT), 7.00%, 9/1/32 | 1,000 | 1,124,370 |
| Capital Trust Agency, FL, (Fort Lauderdale Project), | ||
| (AMT), 5.75%, 1/1/32 | 1,060 | 989,786 |
| Clayton County, GA, Development Authority, (Delta Airlines, | ||
| Inc.), 8.75%, 6/1/29 | 400 | 472,432 |
| Clayton County, GA, Development Authority, (Delta Airlines, | ||
| Inc.), (AMT), 9.00%, 6/1/35 | 2,240 | 2,429,683 |
| Denver, CO, City and County, (United Airlines), (AMT), | ||
| 5.75%, 10/1/32 | 2,305 | 2,358,891 |
| Illinois Finance Authority, (Navistar International Corp.), | ||
| 6.50%, 10/15/40 | 1,735 | 1,919,014 |
| Indiana Financing Authority, (Duke Energy Indiana, Inc.), | ||
| 6.00%, 8/1/39 | 1,000 | 1,156,850 |
| Luzerne County, PA, Industrial Development Authority, (Pennsylvania-American Water Co.), 5.50%, 12/1/39 | 1,600 | 1,775,520 |
| Maine Finance Authority, Solid Waste Disposal, (Casella Waste | ||
| Systems, Inc.), (AMT), 6.25% to 2/1/17 (Put Date), 1/1/25 | 1,660 | 1,688,984 |
| New Jersey Economic Development Authority, (Continental | ||
| Airlines), (AMT), | ||
| 6.25%, 9/15/29 (5) | 7,395 | 7,424,876 |
| Phoenix, AZ, Industrial Development Authority, (America West | ||
| Airlines, Inc.), (AMT), 6.25%, 6/1/19 | 4,630 | 4,221,680 |
| St. Charles Parish, LA, (Valero Energy Corp.), 4.00% to | ||
| 6/1/22 (Put Date), | ||
| 12/1/40 (6) | 1,665 | 1,707,790 |
| $ 29,874,554 | ||
| Insured General | ||
| Obligations 0.8% | ||
| Arcadia, CA, Unified School District, (Election of 2006), (AGM), | ||
| 0.00%, 8/1/38 | $ 10,000 | $ 2,326,600 |
| $ 2,326,600 | ||
| Insured | ||
| Hospital 14.9% | ||
| Indiana Health and Educational Facility Finance Authority, | ||
| (Sisters of St. Francis Health Services), (AGM), | ||
| 5.25%, 5/15/41 (2) | $ 3,250 | $ 3,457,642 |
| Iowa Finance Authority, Health Facilities, (Iowa Health System), | ||
| (AGC), 5.625%, 8/15/37 | 2,625 | 2,948,059 |
| Kentucky Economic Development Authority, (Norton Healthcare, | ||
| Inc.), (NPFG), 0.00%, 10/1/25 | 15,000 | 8,119,200 |
| Kentucky Economic Development Authority, (Norton Healthcare, | ||
| Inc.), (NPFG), 0.00%, 10/1/26 | 17,080 | 8,672,370 |
| Kentucky Economic Development Authority, (Norton Healthcare, | ||
| Inc.), (NPFG), 0.00%, 10/1/27 | 8,575 | 4,066,694 |
| Maryland Health and Higher Educational Facilities Authority, | ||
| (LifeBridge Health), (AGC), | ||
| 4.75%, 7/1/47 (2) | 2,500 | 2,567,800 |
| New Jersey Health Care Facilities Financing Authority, (Meridian | ||
| Health System), Series I, (AGC), | ||
| 5.00%, 7/1/38 (2) | 9,955 | 10,550,904 |
| New Jersey Health Care Facilities Financing Authority, (Meridian | ||
| Health System), Series V, (AGC), | ||
| 5.00%, 7/1/38 (2) | 750 | 794,895 |
| $ 41,177,564 | ||
| Insured | ||
| Housing 1.0% | ||
| Broward County, FL, Housing Finance Authority, MFMR, (Venice | ||
| Homes Apartments), (AGM), (AMT), 5.70%, 1/1/32 | $ 1,100 | $ 1,101,089 |
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Eaton Vance
Municipal Income Trust
May 31, 2012
Portfolio of Investments (Unaudited) continued
| Security | Principal Amount — (000s omitted) | Value |
|---|---|---|
| Insured | ||
| Housing (continued) | ||
| California Rural Home Mortgage Finance Authority, (RADIAN), | ||
| (AMT), 5.50%, 8/1/47 | $ 3,175 | $ 1,693,767 |
| $ 2,794,856 | ||
| Insured Lease | ||
| Revenue / Certificates of | ||
| Participation 1.3% | ||
| Hudson Yards Infrastructure Corp., NY, (NPFG), | ||
| 4.50%, 2/15/47 | $ 220 | $ 222,517 |
| San Diego County, CA, Water Authority, Certificates of | ||
| Participation, (AGM), | ||
| 5.00%, 5/1/38 (2) | 3,000 | 3,257,730 |
| $ 3,480,247 | ||
| Insured Other | ||
| Revenue 7.0% | ||
| Harris County-Houston, TX, Sports Authority, (NPFG), | ||
| 0.00%, 11/15/34 | $ 4,210 | $ 1,147,099 |
| New York, NY, Industrial Development Agency, (Queens Baseball | ||
| Stadium), (AMBAC), 5.00%, 1/1/36 | 5,000 | 5,009,950 |
| New York, NY, Industrial Development Agency, (Yankee Stadium), | ||
| (AGC), 0.00%, 3/1/36 | 10,325 | 3,371,835 |
| New York, NY, Industrial Development Agency, (Yankee Stadium), | ||
| (AGC), 0.00%, 3/1/37 | 8,600 | 2,603,306 |
| New York, NY, Industrial Development Agency, (Yankee Stadium), | ||
| (AGC), 7.00%, 3/1/49 | 3,100 | 3,694,642 |
| New York, NY, Industrial Development Agency, (Yankee Stadium), | ||
| (NPFG), 4.75%, 3/1/46 | 3,515 | 3,518,093 |
| $ 19,344,925 | ||
| Insured Special Tax | ||
| Revenue 10.4% | ||
| Metropolitan Pier and Exposition Authority, IL, (AGM), (NPFG), | ||
| 0.00%, 12/15/38 | $ 50,000 | $ 13,087,000 |
| Miami-Dade County, FL, Professional Sports Franchise Facilities, | ||
| (AGC), 0.00%, 10/1/37 | 34,950 | 9,327,106 |
| Puerto Rico Sales Tax Financing Corp., (AMBAC), | ||
| 0.00%, 8/1/54 | 7,310 | 632,461 |
| Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/43 | 22,500 | 3,970,350 |
| Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 | 12,040 | 1,865,478 |
| $ 28,882,395 | ||
| Insured Student | ||
| Loan 4.7% | ||
| Maine Educational Loan Authority, (AGC), 5.625%, 12/1/27 | $ 2,980 | $ 3,351,457 |
| Massachusetts Educational Financing Authority, (AGC), (AMT), | ||
| 6.35%, 1/1/30 | 650 | 721,104 |
| Massachusetts Educational Financing Authority, (AMBAC), (AMT), | ||
| 4.70%, 1/1/33 | 6,785 | 6,848,236 |
| New Jersey Higher Education Student Assistance Authority, (AGC), | ||
| (AMT), 6.125%, 6/1/30 | 2,040 | 2,226,619 |
| $ 13,147,416 | ||
| Insured | ||
| Transportation 16.4% | ||
| Alameda, CA, Corridor Transportation Authority, (NPFG), | ||
| 0.00%, 10/1/33 | $ 12,425 | $ 3,785,897 |
| Clark County, NV, (Las Vegas-McCarran International Airport), | ||
| (AGM), 5.25%, 7/1/39 | 3,850 | 4,253,403 |
| Director of the State of Nevada Department of Business and | ||
| Industry, (Las Vegas Monorail), (AMBAC), | ||
| 5.375%, 1/1/40 (1) | 5,500 | 1,167,650 |
| Director of the State of Nevada Department of Business and | ||
| Industry, (Las Vegas Monorail), (AMBAC), | ||
| 5.625%, 1/1/32 (1) | 1,000 | 212,300 |
| Miami-Dade County, FL, (Miami International Airport), (AGM), | ||
| (AMT), 5.25%, 10/1/41 | 2,140 | 2,254,576 |
| North Carolina Turnpike Authority, (AGC), 0.00%, 1/1/34 | 15,000 | 5,579,400 |
| Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), | ||
| 5.25%, 7/1/41 (2) | 9,820 | 11,050,741 |
| San Joaquin Hills, CA, Transportation Corridor Agency, (NPFG), | ||
| 0.00%, 1/15/32 | 10,555 | 3,302,448 |
| San Jose, CA, Airport, (AGM), (AMBAC), (BHAC), (AMT), | ||
| 5.00%, 3/1/37 | 2,500 | 2,606,475 |
| San Jose, CA, Airport, (AMBAC), (AMT), 5.50%, 3/1/32 | 8,805 | 9,353,023 |
| Texas Turnpike Authority, (Central Texas Turnpike System), | ||
| (AMBAC), 0.00%, 8/15/34 | 5,175 | 1,374,687 |
| Texas Turnpike Authority, (Central Texas Turnpike System), | ||
| (AMBAC), 0.00%, 8/15/35 | 2,015 | 502,803 |
| $ 45,443,403 | ||
| Insured Water and | ||
| Sewer 9.1% | ||
| Austin, TX, Water and Wastewater, (AGM), (BHAC), | ||
| 5.00%, 11/15/33 (2) | $ 3,750 | $ 4,231,538 |
| DeKalb, GA, Water and Sewer, (AGM), | ||
| 5.00%, 10/1/35 (2) | 17,985 | 21,015,472 |
| $ 25,247,010 | ||
| Lease | ||
| Revenue / Certificates of | ||
| Participation 2.8% | ||
| Hudson Yards Infrastructure Corp., NY, 5.75%, 2/15/47 | $ 2,135 | $ 2,462,381 |
| Mohave County, AZ, Industrial Development Authority, (Mohave | ||
| Prison LLC), 8.00%, 5/1/25 | 4,400 | 5,283,212 |
| $ 7,745,593 |
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Eaton Vance
Municipal Income Trust
May 31, 2012
Portfolio of Investments (Unaudited) continued
| Security | Principal Amount — (000s omitted) | Value |
|---|---|---|
| Other Revenue 15.2% | ||
| Brooklyn, NY, Arena Local Development Corp., (Barclays Center), | ||
| 6.00%, 7/15/30 | $ 785 | $ 882,842 |
| Brooklyn, NY, Arena Local Development Corp., (Barclays Center), | ||
| 6.25%, 7/15/40 | 880 | 988,645 |
| Brooklyn, NY, Arena Local Development Corp., (Barclays Center), | ||
| 6.375%, 7/15/43 | 480 | 542,122 |
| Central Falls, RI, Detention Facility Corp., 7.25%, 7/15/35 | 1,955 | 1,660,753 |
| Michigan Tobacco Settlement Finance Authority, 6.00%, 6/1/48 | 7,600 | 5,877,232 |
| Michigan Tobacco Settlement Finance Authority, | ||
| 6.875%, 6/1/42 | 2,350 | 2,298,958 |
| Mohegan Tribe of Indians Gaming Authority, CT, (Public | ||
| Improvements), 6.25%, 1/1/21 (3) | 1,500 | 1,471,665 |
| New Jersey Economic Development Authority, (Duke Farms | ||
| Foundation), | ||
| 5.00%, 7/1/48 (2) | 2,370 | 2,608,896 |
| New York Liberty Development Corp., (7 World Trade Center | ||
| Project), 5.00%, 9/15/32 | 5,000 | 5,776,050 |
| New York Liberty Development Corp., (7 World Trade Center | ||
| Project), 5.00%, 9/15/40 | 1,000 | 1,130,890 |
| Otero County, NM, Jail Project Revenue, 5.50%, 4/1/13 | 45 | 44,848 |
| Otero County, NM, Jail Project Revenue, 5.75%, 4/1/18 | 265 | 254,087 |
| Salt Verde Financial Corp., AZ, Senior Gas Revenue, | ||
| 5.00%, 12/1/37 | 8,000 | 8,186,480 |
| Seminole Tribe, FL, | ||
| 5.25%, 10/1/27 (3) | 4,000 | 4,032,040 |
| Seminole Tribe, FL, | ||
| 5.50%, 10/1/24 (3) | 2,365 | 2,473,033 |
| Tobacco Settlement Financing Corp., VA, 5.00%, 6/1/47 | 4,180 | 2,773,012 |
| White Earth Band of Chippewa Indians, MN, | ||
| 6.375%, 12/1/26 (3) | 1,415 | 1,192,477 |
| $ 42,194,030 | ||
| Senior Living / Life | ||
| Care 3.1% | ||
| Cliff House Trust, PA, (AMT), | ||
| 6.625%, 6/1/27 (1) | $ 3,210 | $ 1,692,922 |
| Douglas County, NE, Hospital Authority No. 2, (Immanuel | ||
| Obligated Group), 5.50%, 1/1/30 | 535 | 597,590 |
| Douglas County, NE, Hospital Authority No. 2, (Immanuel | ||
| Obligated Group), 5.625%, 1/1/40 | 1,075 | 1,180,522 |
| Lee County, FL, Industrial Development Authority, (Shell Point | ||
| Village/Alliance Community), 5.00%, 11/15/29 | 2,295 | 2,219,701 |
| Logan County, CO, Industrial Development, (TLC Care Choices, | ||
| Inc.), 2.75%, 12/1/23 (7) | 3,115 | 1,579,087 |
| Tempe, AZ, Industrial Development Authority, (Friendship Village | ||
| of Tempe), 6.00%, 12/1/32 | 335 | 349,787 |
| Tempe, AZ, Industrial Development Authority, (Friendship Village | ||
| of Tempe), 6.25%, 12/1/42 | 985 | 1,035,008 |
| $ 8,654,617 | ||
| Special Tax | ||
| Revenue 5.2% | ||
| Covington Park, FL, Community Development District, (Capital | ||
| Improvements), 5.00%, 5/1/31 | $ 500 | $ 503,210 |
| Dupree Lakes, FL, Community Development District, | ||
| 5.375%, 5/1/37 | 325 | 291,561 |
| Dupree Lakes, FL, Community Development District, | ||
| 6.83%, 11/1/15 | 185 | 186,241 |
| Heritage Harbor South, FL, Community Development District, | ||
| (Capital Improvements), 6.20%, 5/1/35 | 270 | 283,808 |
| Heritage Springs, FL, Community Development District, | ||
| 5.25%, 5/1/26 | 190 | 183,266 |
| New River, FL, Community Development District, (Capital | ||
| Improvements), Series 2010A-1, 5.75%, (0.00% until 11/1/12), 5/1/38 | 65 | 42,710 |
| New River, FL, Community Development District, (Capital | ||
| Improvements), Series 2010A-2, 5.75%, (0.00% until 11/1/14), 5/1/38 | 165 | 69,079 |
| New River, FL, Community Development District, (Capital | ||
| Improvements), Series 2010B-1, 5.00%, (0.00% until 11/1/12), 5/1/15 | 100 | 86,788 |
| New River, FL, Community Development District, (Capital | ||
| Improvements), Series 2010B-2, 5.00%, (0.00% until 11/1/13), 5/1/18 | 130 | 61,056 |
| New River, FL, Community Development District, (Capital | ||
| Improvements), | ||
| 5.00%, 5/1/13 (1) | 90 | 0 |
| New River, FL, Community Development District, (Capital | ||
| Improvements), | ||
| 5.35%, 5/1/38 (1) | 35 | 0 |
| New York, NY, Transitional Finance Authority, Future Tax | ||
| Revenue, 5.50%, 11/1/35 | 1,500 | 1,778,910 |
| New York, NY, Transitional Finance Authority, Future Tax | ||
| Revenue, 5.50%, 11/1/35 (2)(4) | 5,000 | 5,929,700 |
| North Springs, FL, Improvement District, (Heron Bay), | ||
| 7.00%, 5/1/19 | 430 | 430,335 |
| River Hall, FL, Community Development District, (Capital | ||
| Improvements), 5.45%, 5/1/36 | 475 | 366,196 |
| Southern Hills Plantation I, FL, Community Development District, | ||
| 0.00%, 5/1/35 | 205 | 131,020 |
| Southern Hills Plantation I, FL, Community Development District, | ||
| 5.80%, 5/1/35 | 278 | 232,345 |
| Sterling Hill, FL, Community Development District, | ||
| 6.20%, 5/1/35 | 600 | 515,658 |
| University Square, FL, Community Development District, | ||
| 6.75%, 5/1/20 | 530 | 530,472 |
| Virgin Islands Public Finance Authority, 6.75%, 10/1/37 | 1,780 | 2,084,380 |
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Eaton Vance
Municipal Income Trust
May 31, 2012
Portfolio of Investments (Unaudited) continued
| Security | Principal Amount — (000s omitted) | Value | |
|---|---|---|---|
| Special Tax Revenue (continued) | |||
| Waterlefe, FL, Community Development District, 6.95%, 5/1/31 | $ 625 | $ 625,495 | |
| $ 14,332,230 | |||
| Student Loan 3.0% | |||
| New Jersey Higher Education Student Assistance Authority, (AMT), 1.438%, 6/1/36 (2)(4)(8) | $ 8,500 | $ 8,201,650 | |
| $ 8,201,650 | |||
| Transportation 23.5% | |||
| Atlanta, GA, Airport Revenue, (AMT), 5.00%, 1/1/37 | $ 500 | $ 536,375 | |
| Augusta, GA, (AMT), 5.35%, 1/1/28 | 1,000 | 968,930 | |
| Central Texas Regional Mobility Authority, 5.75%, 1/1/31 | 435 | 487,478 | |
| Los Angeles Department of Airports, CA, (Los Angeles | |||
| International Airport), (AMT), 5.375%, 5/15/33 | 1,000 | 1,093,530 | |
| Memphis-Shelby County, TN, Airport Authority, (AMT), | |||
| 5.75%, 7/1/24 | 400 | 463,332 | |
| Miami-Dade County, FL, (Miami International Airport), | |||
| 5.50%, 10/1/36 | 3,715 | 4,218,717 | |
| New York Liberty Development Corp., (1 World Trade Center Port | |||
| Authority Construction), | |||
| 5.00%, 12/15/41 (2) | 7,880 | 8,773,986 | |
| North Texas Tollway Authority, 5.75%, 1/1/38 | 1,515 | 1,649,199 | |
| Pennsylvania Economic Development Financing Authority, (Amtrak), | |||
| (AMT), 5.00%, 11/1/41 | 3,940 | 4,177,976 | |
| Pennsylvania Turnpike Commission, 5.25%, 6/1/39 | 565 | 611,511 | |
| Pennsylvania Turnpike Commission, 5.50%, 12/1/41 | 375 | 416,392 | |
| Pennsylvania Turnpike Commission, | |||
| 6.375%, (0.00% until 12/1/17), 12/1/38 | 2,500 | 2,338,875 | |
| Philadelphia, PA, Airport Revenue, (AMT), 5.00%, 6/15/26 | 2,175 | 2,369,053 | |
| Philadelphia, PA, Airport Revenue, (AMT), 5.00%, 6/15/27 | 2,160 | 2,342,239 | |
| Port Authority of New York and New Jersey, (AMT), | |||
| 4.50%, 4/1/37 (2) | 8,500 | 8,831,755 | |
| Port Authority of New York and New Jersey, (AMT), | |||
| 5.00%, 10/15/41 | 1,000 | 1,082,110 | |
| Port Authority of New York and New Jersey, (AMT), | |||
| 5.75%, 3/15/35 (2) | 7,290 | 8,544,682 | |
| San Francisco, CA, City and County Airport Commission, (San | |||
| Francisco International Airport), (AMT), 5.00%, 5/1/32 | 1,415 | 1,551,463 | |
| Texas Private Activity Bond Surface Transportation Corp., (LBJ | |||
| Express Managed Lanes Project), 7.00%, 6/30/34 | 1,885 | 2,254,931 | |
| Texas Private Activity Bond Surface Transportation Corp., (North | |||
| Tarrant Express Managed Lanes Project), 6.875%, 12/31/39 | 1,725 | 2,025,616 | |
| Triborough Bridge & Tunnel Authority, NY, | |||
| 5.00%, 11/15/37 (2) | 9,300 | 10,376,103 | |
| $ 65,114,253 | |||
| Total Tax-Exempt Municipal | |||
| Securities 181.5% | |||
| (identified cost $465,732,347) | $ 502,430,542 | ||
| Taxable Municipal Securities 2.8% | |||
| Principal Amount | |||
| Security | (000s omitted) | Value | |
| General | |||
| Obligations 2.8% | |||
| California, | |||
| 7.95%, 3/1/36 (9) | $ 6,375 | $ 7,631,066 | |
| Total Taxable Municipal | |||
| Securities 2.8% | |||
| (identified cost $7,536,365) | $ 7,631,066 | ||
| Total Investments 184.3% | |||
| (identified cost $473,268,712) | $ 510,061,608 | ||
| Auction Preferred Shares Plus | |||
| Cumulative | |||
| Unpaid | |||
| Dividends (43.4)% | $ (120,154,015 | ) | |
| Other Assets, Less | |||
| Liabilities (40.9)% | $ (113,152,156 | ) | |
| Net Assets Applicable to Common | |||
| Shares 100.0% | $ 276,755,437 |
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
| AGC | - Assured Guaranty Corp. |
|---|---|
| AGM | - Assured Guaranty Municipal Corp. |
| AMBAC | - AMBAC Financial Group, Inc. |
| AMT | - Interest earned from these securities may be considered a |
| tax preference item for purposes of the Federal Alternative | |
| Minimum Tax. | |
| BHAC | - Berkshire Hathaway Assurance Corp. |
| CIFG | - CIFG Assurance North America, Inc. |
| FHLMC | - Federal Home Loan Mortgage Corporation |
| FNMA | - Federal National Mortgage Association |
| GNMA | - Government National Mortgage Association |
| MFMR | - Multi-Family Mortgage Revenue |
| NPFG | - National Public Finance Guaranty Corp. |
| PSF | - Permanent School Fund |
| RADIAN | - Radian Group, Inc. |
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Eaton Vance
Municipal Income Trust
May 31, 2012
Portfolio of Investments (Unaudited) continued
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At May 31, 2012, the concentration of the Trusts investments in the various states, determined as a percentage of total investments is as follows:
| New York | 19.7% |
|---|---|
| California | 11.7% |
| Others, representing less than 10% individually | 68.6% |
The Trust 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 May 31, 2012, 35.7% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 0.3% to 11.3% of total investments.
| (1) | Defaulted bond. |
|---|---|
| (2) | Security represents the municipal bond held by a trust that |
| issues residual interest bonds (see Note 1H). | |
| (3) | Security exempt from registration pursuant to Rule 144A |
| under the Securities Act of 1933. These securities may be sold | |
| in certain transactions (normally to qualified institutional | |
| buyers) and remain exempt from registration. At May 31, | |
| 2012, the aggregate value of these securities is $14,614,689 or | |
| 5.3% of the Trusts net assets. | |
| (4) | Security (or a portion thereof) has been pledged as collateral |
| for residual interest bond transactions. The aggregate value of | |
| such collateral is $7,354,250. | |
| (5) | Security (or a portion thereof) has been segregated to cover |
| payable for when-issued securities. | |
| (6) | When-issued security. |
| (7) | Security is in default and making only partial interest payments. |
| (8) | Variable rate security. The stated interest rate represents the |
| rate in effect at May 31, 2012. | |
| (9) | Build America Bond. Represents taxable municipal obligation |
| issued pursuant to the America Recovery and Reinvestment Act of | |
| 2009 or other legislation providing for the issuance of taxable | |
| municipal debt on which the issuer receives federal support. |
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Eaton Vance
Municipal Income Trust
May 31, 2012
Statement of Assets and Liabilities (Unaudited)
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| Assets | May 31, 2012 | |
|---|---|---|
| Investments, at value (identified cost, $473,268,712) | $ 510,061,608 | |
| Restricted cash* | 2,190,000 | |
| Interest receivable | 6,589,517 | |
| Receivable for investments sold | 40,964 | |
| Deferred debt issuance costs | 54,785 | |
| Total assets | $ 518,936,874 | |
| Liabilities | ||
| Payable for floating rate notes issued | $ 118,210,000 | |
| Payable for when-issued securities | 1,665,000 | |
| Payable for variation margin on open financial futures contracts | 562,500 | |
| Due to custodian | 1,055,785 | |
| Payable to affiliates: | ||
| Investment adviser fee | 246,063 | |
| Administration fee | 75,134 | |
| Trustees fees | 2,892 | |
| Interest expense and fees payable | 114,568 | |
| Accrued expenses | 95,481 | |
| Total liabilities | $ 122,027,423 | |
| Auction preferred shares at liquidation value plus cumulative | ||
| unpaid dividends | $ 120,154,014 | |
| Net assets applicable to common shares | $ 276,755,437 | |
| Sources of Net Assets | ||
| Common shares, $0.01 par value, unlimited number of shares | ||
| authorized | $ 227,933 | |
| Additional paid-in capital | 301,208,723 | |
| Accumulated net realized loss | (62,462,341 | ) |
| Accumulated undistributed net investment income | 2,925,498 | |
| Net unrealized appreciation | 34,855,624 | |
| Net assets applicable to common shares | $ 276,755,437 | |
| Auction Preferred | ||
| Shares Issued and Outstanding (Liquidation preference of $25,000 per share) | 4,806 | |
| Common Shares Outstanding | 22,793,297 | |
| Net Asset Value Per Common Share | ||
| Net assets applicable to common shares ¸ common shares issued and outstanding | $ 12.14 |
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Eaton Vance
Municipal Income Trust
May 31, 2012
Statement of Operations (Unaudited)
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| Investment Income | Six Months Ended — May 31, 2012 | |
|---|---|---|
| Interest | $ 13,109,487 | |
| Total investment income | $ 13,109,487 | |
| Expenses | ||
| Investment adviser fee | $ 1,448,329 | |
| Administration fee | 434,019 | |
| Trustees fees and expenses | 9,459 | |
| Custodian fee | 95,774 | |
| Transfer and dividend disbursing agent fees | 10,858 | |
| Legal and accounting services | 148,120 | |
| Printing and postage | 30,899 | |
| Interest expense and fees | 442,665 | |
| Preferred shares service fee | 87,388 | |
| Miscellaneous | 87,280 | |
| Total expenses | $ 2,794,791 | |
| Deduct | ||
| Reduction of custodian fee | $ 305 | |
| Total expense reductions | $ 305 | |
| Net expenses | $ 2,794,486 | |
| Net investment income | $ 10,315,001 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) | ||
| Investment transactions | $ 3,023,024 | |
| Financial futures contracts | (4,658,865 | ) |
| Net realized loss | $ (1,635,841 | ) |
| Change in unrealized appreciation (depreciation) | ||
| Investments | $ 37,864,566 | |
| Financial futures contracts | (2,789,236 | ) |
| Net change in unrealized appreciation (depreciation) | $ 35,075,330 | |
| Net realized and unrealized gain | $ 33,439,489 | |
| Distributions to preferred shareholders | ||
| From net investment income | $ (144,153 | ) |
| Net increase in net assets from operations | $ 43,610,337 |
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Eaton Vance
Municipal Income Trust
May 31, 2012
Statements of Changes in Net Assets
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| Six Months Ended — May 31, 2012 | Year Ended | |||
|---|---|---|---|---|
| Increase (Decrease) | ||||
| in Net Assets | (Unaudited) | November 30, 2011 | ||
| From operations | ||||
| Net investment income | $ 10,315,001 | $ 22,443,277 | ||
| Net realized loss from investment transactions, extinguishment | ||||
| of debt and financial futures contracts | (1,635,841 | ) | (26,463,271 | ) |
| Net change in unrealized appreciation (depreciation) from | ||||
| investments and financial futures contracts | 35,075,330 | 18,593,304 | ||
| Distributions to preferred shareholders | ||||
| From net investment income | (144,153 | ) | (371,730 | ) |
| Net increase in net assets from operations | $ 43,610,337 | $ 14,201,580 | ||
| Distributions to common shareholders | ||||
| From net investment income | $ (11,087,684 | ) | $ (22,474,297 | ) |
| Total distributions to common shareholders | $ (11,087,684 | ) | $ (22,474,297 | ) |
| Capital share transactions | ||||
| Reinvestment of distributions to common shareholders | 296,357 | 1,478,310 | ||
| Net increase in net assets from capital share transactions | $ 296,357 | $ 1,478,310 | ||
| Net increase (decrease) in net assets | $ 32,819,010 | $ (6,794,407 | ) | |
| Net Assets Applicable to Common | ||||
| Shares | ||||
| At beginning of period | $ 243,936,427 | $ 250,730,834 | ||
| At end of period | $ 276,755,437 | $ 243,936,427 | ||
| Accumulated undistributed net | ||||
| investment income included in net assets applicable to common shares | ||||
| At end of period | $ 2,925,498 | $ 3,842,334 |
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Eaton Vance
Municipal Income Trust
May 31, 2012
Statement of Cash Flows (Unaudited)
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| Six Months Ended | ||
|---|---|---|
| May 31, 2012 | ||
| Cash Flows From | ||
| Operating Activities | (Unaudited) | |
| Net increase in net assets from operations | $ 43,610,337 | |
| Distributions to preferred shareholders | 144,153 | |
| Net increase in net assets from operations excluding | ||
| distributions to preferred shareholders | $ 43,754,490 | |
| Adjustments to reconcile net increase in net assets from | ||
| operations to net cash provided by operating activities: | ||
| Investments purchased | (67,854,184 | ) |
| Investments sold | 74,307,614 | |
| Net amortization/accretion of premium (discount) | (1,910,056 | ) |
| Amortization of deferred debt issuance costs | 3,197 | |
| Increase in restricted cash | (2,190,000 | ) |
| Increase in interest receivable | (118,311 | ) |
| Decrease in receivable for investments sold | 11,385,524 | |
| Decrease in receivable for variation margin on open financial | ||
| futures contracts | 1,225,000 | |
| Decrease in payable for investments purchased | (6,363,944 | ) |
| Decrease in payable for when-issued securities | (6,609,675 | ) |
| Increase in payable for variation margin on open financial | ||
| futures contracts | 562,500 | |
| Increase in payable to affiliate for investment adviser fee | 18,046 | |
| Increase in payable to affiliate for administration fee | 7,069 | |
| Increase in payable to affiliate for Trustees fees | 694 | |
| Increase in interest expense and fees payable | 102,415 | |
| Decrease in accrued expenses | (51,295 | ) |
| Net change in unrealized (appreciation) depreciation from | ||
| investments | (37,864,566 | ) |
| Net realized gain from investments | (3,023,024 | ) |
| Net cash provided by operating activities | $ 5,381,494 | |
| Cash Flows From Financing Activities | ||
| Distributions paid to common shareholders, net of reinvestments | $ (10,791,327 | ) |
| Cash distributions paid to preferred shareholders | (143,054 | ) |
| Proceeds from secured borrowings | 12,285,000 | |
| Repayment of secured borrowings | (9,275,000 | ) |
| Increase in due to custodian | 1,055,785 | |
| Net cash used in financing activities | $ (6,868,596 | ) |
| Net decrease in cash | $ (1,487,102 | ) |
| Cash at beginning of period | $ 1,487,102 | |
| Cash at end of period | $ | |
| Supplemental disclosure of cash | ||
| flow information: | ||
| Noncash financing activities not included herein consist of: | ||
| Reinvestment of dividends and distributions | $ 296,357 | |
| Cash paid for interest and fees | 337,053 |
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Eaton Vance
Municipal Income Trust
May 31, 2012
Financial Highlights
Selected data for a common share outstanding during the periods stated
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| Six Months Ended | Year Ended November 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| May 31, 2012 | ||||||||||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||
| Net asset value Beginning of period (Common shares) | $ 10.710 | $ 11.080 | $ 10.840 | $ 8.110 | $ 14.370 | $ 15.880 | ||||||
| Income (Loss) From Operations | ||||||||||||
| Net investment | ||||||||||||
| income (1) | $ 0.453 | $ 0.988 | $ 1.036 | $ 0.981 | $ 1.067 | $ 1.076 | ||||||
| Net realized and unrealized gain (loss) | 1.470 | (0.352 | ) | 0.169 | 2.648 | (6.262 | ) | (1.518 | ) | |||
| Distributions to preferred shareholders | ||||||||||||
| From net investment | ||||||||||||
| income (1) | (0.006 | ) | (0.016 | ) | (0.022 | ) | (0.036 | ) | (0.258 | ) | (0.278 | ) |
| Total income (loss) from operations | $ 1.917 | $ 0.620 | $ 1.183 | $ 3.593 | $ (5.453 | ) | $ (0.720 | ) | ||||
| Less Distributions to Common | ||||||||||||
| Shareholders | ||||||||||||
| From net investment income | $ (0.487 | ) | $ (0.990 | ) | $ (0.943 | ) | $ (0.863 | ) | $ (0.807 | ) | $ (0.790 | ) |
| Total distributions to common shareholders | $ (0.487 | ) | $ (0.990 | ) | $ (0.943 | ) | $ (0.863 | ) | $ (0.807 | ) | $ (0.790 | ) |
| Net asset value End of period (Common shares) | $ 12.140 | $ 10.710 | $ 11.080 | $ 10.840 | $ 8.110 | $ 14.370 | ||||||
| Market value End of period (Common shares) | $ 14.000 | $ 12.270 | $ 11.980 | $ 11.480 | $ 8.450 | $ 13.300 | ||||||
| Total Investment Return on Net Asset | ||||||||||||
| Value (2) | 17.81 | % (3) | 5.66 | % | 10.74 | % | 46.43 | % | (39.72 | )% | (4.62 | )% |
| Total Investment Return on Market | ||||||||||||
| Value (2) | 18.59 | % (3) | 11.96 | % | 13.06 | % | 48.84 | % | (32.13 | )% | (12.44 | )% |
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Eaton Vance
Municipal Income Trust
May 31, 2012
Financial Highlights continued
Selected data for a common share outstanding during the periods stated
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| Six Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| May 31, 2012 | ||||||||
| Ratios/Supplemental | ||||||||
| Data | (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 | ||
| Net assets applicable to common shares, end of period | ||||||||
| (000s omitted) | $ 276,755 | $ | 243,936 | $ 250,731 | $ 243,846 | $ 140,254 | $ 246,974 | |
| Ratios (as a percentage of average daily net assets applicable | ||||||||
| to common | ||||||||
| shares): (4) | ||||||||
| Expenses excluding interest and fees | 1.76 | % (5) | 1.88 % | 1.73 % | 2.00 % | 1.84 % | 1.71 | % (6) |
| Interest and fee | ||||||||
| expense (7) | 0.33 | % (5) | 0.39 % | 0.34 % | 0.47 % | 0.73 % | 1.35 | % |
| Total expenses before custodian fee reduction | 2.09 | % (5) | 2.27 % | 2.07 % | 2.47 % | 2.57 % | 3.06 | % (6) |
| Expenses after custodian fee reduction excluding interest and | ||||||||
| fees | 1.76 | % (5) | 1.88 % | 1.73 % | 2.00 % | 1.82 % | 1.70 | % (6) |
| Net investment income | 7.70 | % (5) | 9.46 % | 9.00 % | 10.44 % | 8.45 % | 7.02 | % |
| Portfolio Turnover | 14 | % (3) | 15 % | 16 % | 44 % | 53 % | 37 | % |
| The ratios reported above are based on net assets applicable to | ||||||||
| common shares. The ratios based on net assets, including amounts | ||||||||
| related to preferred shares, are as follows: | ||||||||
| Ratios (as a percentage of average daily net assets applicable | ||||||||
| to common shares and preferred | ||||||||
| shares): (4) | ||||||||
| Expenses excluding interest and fees | 1.21 | % (5) | 1.25 % | 1.19 % | 1.26 % | 1.17 % | 1.14 | % (6) |
| Interest and fee | ||||||||
| expense (7) | 0.23 | % (5) | 0.26 % | 0.23 % | 0.29 % | 0.47 % | 0.90 | % |
| Total expenses before custodian fee reduction | 1.44 | % (5) | 1.51 % | 1.42 % | 1.55 % | 1.64 % | 2.04 | % (6) |
| Expenses after custodian fee reduction excluding interest and | ||||||||
| fees | 1.21 | % (5) | 1.25 % | 1.19 % | 1.26 % | 1.16 % | 1.14 | % (6) |
| Net investment income | 5.31 | % (5) | 6.28 % | 6.15 % | 6.56 % | 5.40 % | 4.69 | % |
| Senior Securities: | ||||||||
| Total preferred shares outstanding | 4,806 | 4,806 | 4,806 | 4,806 | 4,394 | 5,240 | ||
| Asset coverage per preferred | ||||||||
| share (8) | $ 82,586 | $ | 75,757 | $ 77,172 | $ 75,739 | $ 56,919 | $ 72,138 | |
| Involuntary liquidation preference per preferred | ||||||||
| share (9) | $ 25,000 | $ | 25,000 | $ 25,000 | $ 25,000 | $ 25,000 | $ 25,000 | |
| Approximate market value per preferred | ||||||||
| share (9) | $ 25,000 | $ | 25,000 | $ 25,000 | $ 25,000 | $ 25,000 | $ 25,000 |
| (1) | Computed using average common shares outstanding. |
|---|---|
| (2) | Returns are historical and are calculated by determining the |
| percentage change in net asset value or market value with all | |
| distributions reinvested. | |
| (3) | Not annualized. |
| (4) | Ratios do not reflect the effect of dividend payments to |
| preferred shareholders. | |
| (5) | Annualized. |
| (6) | The investment adviser was allocated a portion of the |
| Trusts operating expenses (equal to less than 0.005% of | |
| average daily net assets for the year ended November 30, | |
| 2007). Absent this allocation, total return would be lower. | |
| (7) | Interest and fee expense relates to the liability for floating |
| rate notes issued in conjunction with residual interest bond | |
| transactions (see Note 1H). | |
| (8) | Calculated by subtracting the Trusts total liabilities |
| (not including the preferred shares) from the Trusts total | |
| assets, and dividing the result by the number of preferred | |
| shares outstanding. | |
| (9) | Plus accumulated and unpaid dividends. |
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See Notes to Financial Statements.
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Eaton Vance
Municipal Income Trust
May 31, 2012
Notes to Financial Statements (Unaudited)
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1 Significant Accounting Policies
Eaton Vance Municipal Income Trust (the Trust) is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a diversified, closed-end management investment company. The Trust seeks to provide current income exempt from regular federal income tax.
The following is a summary of significant accounting policies of the Trust. The policies are in conformity with accounting principles generally accepted in the United States of America.
A Investment Valuation Debt obligations (including short-term obligations with a remaining maturity of more than sixty days) are generally valued on the basis of valuations provided by third party pricing services, as derived from such services pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, prices or yields of securities with similar characteristics, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Short-term obligations purchased with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates market value. Financial futures contracts are valued at the closing settlement price established by the board of trade or exchange on which they are traded. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the Trust in a manner that fairly reflects the securitys value, or the amount that the Trust might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the securitys disposition, the price and extent of public trading in similar securities of the issuer or of comparable entities, quotations or relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the entitys financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
B Investment Transactions and Related Income Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount.
C Federal Taxes The Trusts policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its taxable, if any, and tax-exempt net investment income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary. The Trust intends to satisfy conditions which will enable it to designate distributions from the interest income generated by its investments in municipal obligations, which are exempt from regular federal income tax when received by the Trust, as exempt-interest dividends. The portion of such interest, if any, earned on private activity bonds issued after August 7, 1986, may be considered a tax preference item to shareholders.
At November 30, 2011, the Trust, for federal income tax purposes, had a capital loss carryforward of $61,868,307 which will reduce its taxable income arising from future net realized gains on investment transactions, if any, to the extent permitted by the Internal Revenue Code, and thus will reduce the amount of distributions to shareholders, which would otherwise be necessary to relieve the Trust of any liability for federal income or excise tax. Such capital loss carryforward will expire on November 30, 2012 ($2,812,831), November 30, 2015 ($1,728,781), November 30, 2016 ($11,985,328), November 30, 2017 ($19,113,316), November 30, 2018 ($195,807) and November 30, 2019 ($26,032,244). In addition, such capital loss carryforward cannot be utilized prior to the utilization of new capital losses, if any, created after November 30, 2011.
As of May 31, 2012, the Trust had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. The Trust files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.
D Expense Reduction State Street Bank and Trust Company (SSBT) serves as custodian of the Trust. Pursuant to the custodian agreement, SSBT receives a fee reduced by credits, which are determined based on the average daily cash balance the Trust maintains with SSBT. All credit balances, if any, used to reduce the Trusts custodian fees are reported as a reduction of expenses in the Statement of Operations.
E Legal Fees Legal fees and other related expenses incurred as part of negotiations of the terms and requirement of capital infusions, or that are expected to result in the restructuring of, or a plan of reorganization for, an investment are recorded as realized losses. Ongoing expenditures to protect or enhance an investment are treated as operating expenses.
F Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.
G Indemnifications Under the Trusts organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as the Trust) could be deemed to have personal liability for the obligations of the Trust. However, the Trusts Declaration of Trust
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Municipal Income Trust
May 31, 2012
Notes to Financial Statements (Unaudited) continued
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contains an express disclaimer of liability on the part of Fund shareholders and the By-laws provide that the Trust shall assume the defense on behalf of any Fund shareholders. Moreover, the By-laws also provide for indemnification out of Fund property of any shareholder held personally liable solely by reason of being or having been a shareholder for all loss or expense arising from such liability. Additionally, in the normal course of business, the Trust enters into agreements with service providers that may contain indemnification clauses. The Trusts maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred.
H Floating Rate Notes Issued in Conjunction with Securities Held The Trust may invest in residual interest bonds, also referred to as inverse floating rate securities, whereby the Trust may sell a variable or fixed rate bond to a broker for cash. At the same time, the Trust buys a residual interest in the assets and cash flows of a Special-Purpose Vehicle (the SPV), (which is generally organized as a trust), set up by the broker. The broker deposits a bond into the SPV with the same CUSIP number as the bond sold to the broker by the Trust, and which may have been, but is not required to be, the bond purchased from the Trust (the Bond). The SPV also issues floating rate notes (Floating Rate Notes) which are sold to third-parties. The residual interest bond held by the Trust gives the Trust the right (1) to cause the holders of the Floating Rate Notes to generally tender their notes at par, and (2) to have the broker transfer the Bond held by the SPV to the Trust, thereby terminating the SPV. Should the Trust exercise such right, it would generally pay the broker the par amount due on the Floating Rate Notes and exchange the residual interest bond for the underlying Bond. Pursuant to generally accepted accounting principles for transfers and servicing of financial assets and extinguishment of liabilities, the Trust accounts for the transaction described above as a secured borrowing by including the Bond in its Portfolio of Investments and the Floating Rate Notes as a liability under the caption Payable for floating rate notes issued in its Statement of Assets and Liabilities. The Floating Rate Notes have interest rates that generally reset weekly and their holders have the option to tender their notes to the broker for redemption at par at each reset date. Accordingly, the fair value of the payable for floating rates notes issued approximates its carrying value. Interest expense related to the Trusts liability with respect to Floating Rate Notes is recorded as incurred. The SPV may be terminated by the Trust, as noted above, or by the broker upon the occurrence of certain termination events as defined in the trust agreement, such as a downgrade in the credit quality of the underlying Bond, bankruptcy of or payment failure by the issuer of the underlying Bond, the inability to remarket Floating Rate Notes that have been tendered due to insufficient buyers in the market, or the failure by the SPV to obtain renewal of the liquidity agreement under which liquidity support is provided for the Floating Rate Notes up to one year. Structuring fees paid to the liquidity provider upon the creation of an SPV have been recorded as debt issuance costs and are being amortized as interest expense to the expected maturity of the related trust. Unamortized structuring fees related to a terminated SPV are recorded as a realized loss on extinguishment of debt. At May 31, 2012, the amount of the Trusts Floating Rate Notes outstanding and the related collateral were $118,210,000 and $168,386,241, respectively. The range of interest rates on the Floating Rate Notes outstanding at May 31, 2012 was 0.17% to 0.53%. For the six months ended May 31, 2012, the Trusts average Floating Rate Notes outstanding and the average interest rate (annualized) including fees and amortization of deferred debt issuance costs were $115,447,104 and 0.77%, respectively.
The Trust may enter into shortfall and forbearance agreements with the broker by which the Trust agrees to reimburse the broker, in certain circumstances, for the difference between the liquidation value of the Fixed Rate Bond held by the SPV and the liquidation value of the Floating Rate Notes, as well as any shortfalls in interest cash flows. The Trust had no shortfalls as of May 31, 2012.
The Trust may also purchase residual interest bonds from brokers in a secondary market transaction without first owning the underlying bond. Such transactions are not required to be treated as secured borrowings. Shortfall agreements, if any, related to residual interest bonds purchased in a secondary market transaction are disclosed in the Portfolio of Investments.
The Trusts investment policies and restrictions expressly permit investments in residual interest bonds. Such bonds typically offer the potential for yields exceeding the yields available on fixed rate bonds with comparable credit quality and maturity. These securities tend to underperform the market for fixed rate bonds in a rising long-term interest rate environment, but tend to outperform the market for fixed rate bonds when long-term interest rates decline. The value and income of residual interest bonds are generally more volatile than that of a fixed rate bond. The Trusts investment policies do not allow the Trust to borrow money except as permitted by the 1940 Act. Management believes that the Trusts restrictions on borrowing money and issuing senior securities (other than as specifically permitted) do not apply to Floating Rate Notes issued by the SPV and included as a liability in the Trusts Statement of Assets and Liabilities. As secured indebtedness issued by an SPV, Floating Rate Notes are distinct from the borrowings and senior securities to which the Trusts restrictions apply. Residual interest bonds held by the Trust are securities exempt from registration under Rule 144A of the Securities Act of 1933.
I Financial Futures Contracts Upon entering into a financial futures contract, the Trust is required to deposit with the broker, either in cash or securities, an amount equal to a certain percentage of the purchase price (initial margin). Subsequent payments, known as variation margin, are made or received by the Trust each business day, depending on the daily fluctuations in the value of the underlying security, and are recorded as unrealized gains or losses by the Trust. Gains (losses) are realized upon the expiration or closing of the financial futures contracts. Should market conditions change unexpectedly, the Trust may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. Futures contracts have minimal counterparty risk as they are exchange traded and the clearinghouse for the exchange is substituted as the counterparty, guaranteeing counterparty performance.
J When-Issued Securities and Delayed Delivery Transactions The Trust may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. At the time the transaction is negotiated, the price of the security that will be delivered is fixed. The Trust maintains security positions for these commitments such that sufficient liquid assets will be available to
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Municipal Income Trust
May 31, 2012
Notes to Financial Statements (Unaudited) continued
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make payments upon settlement. Securities purchased on a delayed delivery or when-issued basis are marked-to-market daily and begin earning interest on settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
K Statement of Cash Flows The cash amount shown in the Statement of Cash Flows of the Trust is the amount included in the Trusts Statement of Assets and Liabilities and represents the cash on hand at its custodian and does not include any short-term investments.
L Interim Financial Statements The interim financial statements relating to May 31, 2012 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Trusts management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.
2 Auction Preferred Shares
The Trust issued 2,620 Series A and Series B Auction Preferred Shares (APS) on March 1, 1999 in a public offering. The underwriting discount and other offering costs incurred in connection with the offering were recorded as a reduction of the paid-in capital of the common shares. The Trust issued 806 Series C APS on May 28, 2009 in connection with the acquisition of Eaton Vance National Municipal Income Trust. Dividends on the APS, which accrue daily, are cumulative at rates which are reset every seven days by an auction, unless a special dividend period has been set. If the APS auctions do not successfully clear, the dividend payment rate over the next period for the APS holders is set at a specified maximum applicable rate until such time as the APS auctions are successful. The maximum applicable rate on the APS is 110% (150% for taxable distributions) of the greater of the 1) AA Financial Composite Commercial Paper Rate or 2) Taxable Equivalent of the Short-Term Municipal Obligation Rate on the date of the auction. Series of APS are identical in all respects except for the reset dates of the dividend rates.
The number of APS issued and outstanding as of May 31, 2012 is as follows:
| Outstanding | |
| Series A | 2,000 |
| Series B | 2,000 |
| Series C | 806 |
The APS are redeemable at the option of the Trust at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, on any dividend payment date. The APS are also subject to mandatory redemption at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, if the Trust is in default for an extended period on its asset maintenance requirements with respect to the APS. If the dividends on the APS remain unpaid in an amount equal to two full years dividends, the holders of the APS as a class have the right to elect a majority of the Board of Trustees. In general, the holders of the APS and the common shares have equal voting rights of one vote per share, except that the holders of the APS, as a separate class, have the right to elect at least two members of the Board of Trustees. The APS have a liquidation preference of $25,000 per share, plus accumulated and unpaid dividends. The Trust is required to maintain certain asset coverage with respect to the APS as defined in the Trusts By-Laws and the 1940 Act. The Trust pays an annual fee up to 0.15% of the liquidation value of the APS to broker/dealers as a service fee if the auctions are unsuccessful; otherwise, the annual fee is 0.25%.
3 Distributions to Shareholders
The Trust intends to make monthly distributions of net investment income to common shareholders, after payment of any dividends on any outstanding APS. In addition, at least annually, the Trust intends to distribute all or substantially all of its net realized capital gains (reduced by available capital loss carryforwards from prior years, if any). Distributions to common shareholders are recorded on the ex-dividend date. Distributions to preferred shareholders
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Municipal Income Trust
May 31, 2012
Notes to Financial Statements (Unaudited) continued
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are recorded daily and are payable at the end of each dividend period. The dividend rates for the APS at May 31, 2012, and the amount of dividends accrued (including capital gains, if any) to APS shareholders, average APS dividend rates (annualized), and dividend rate ranges for the six months then ended were as follows:
| Rates at | Dividends — Accrued to APS | Average APS — Dividend | Dividend — Rate | |
|---|---|---|---|---|
| May 31, 2012 | Shareholders | Rates | Ranges (%) | |
| Series A | 0.29 % | $ 59,503 | 0.24 % | 0.110.38 |
| Series B | 0.32 | 60,374 | 0.24 | 0.110.40 |
| Series C | 0.29 | 24,276 | 0.24 | 0.110.40 |
Beginning February 13, 2008 and consistent with the patterns in the broader market for auction-rate securities, the Trusts APS auctions were unsuccessful in clearing due to an imbalance of sell orders over bids to buy the APS. As a result, the dividend rates of the APS were reset to the maximum applicable rate. The table above reflects such maximum dividend rate for each series as of May 31, 2012.
The Trust distinguishes between distributions on a tax basis and a financial reporting basis. Accounting principles generally accepted in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.
4 Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Eaton Vance Management (EVM) as compensation for investment advisory services rendered to the Trust. The fee is computed at an annual rate of 0.655% (0.670% prior to May 1, 2012) of the Trusts average weekly gross assets and is payable monthly. Pursuant to a fee reduction agreement between the Trust and EVM that commenced on May 1, 2010, the annual adviser fee rate is reduced by 0.015% every May 1 thereafter for the next nineteen years. The fee reduction cannot be terminated without the consent of the Trustees and shareholders. Average weekly gross assets include the principal amount of any indebtedness for money borrowed, including debt securities issued by the Trust, and the amount of any outstanding APS issued by the Trust. Pursuant to a fee reduction agreement with EVM, average weekly gross assets are calculated by adding to net assets the liquidation value of the Trusts APS then outstanding and the amount payable by the Trust to floating rate note holders, such adjustment being limited to the value of the APS outstanding prior to any APS redemptions by the Trust. The administration fee is earned by EVM for administering the business affairs of the Trust and is computed at an annual rate of 0.20% of the Trusts average weekly gross assets. For the six months ended May 31, 2012, the investment adviser fee and administration fee were $1,448,329 and $434,019, respectively.
Except for Trustees of the Trust who are not members of EVMs organization, officers and Trustees receive remuneration for their services to the Trust out of the investment adviser fee. Trustees of the Trust who are not affiliated with the investment adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the six months ended May 31, 2012, no significant amounts have been deferred. Certain officers and Trustees of the Trust are officers of EVM.
5 Purchases and Sales of Investments
Purchases and sales of investments, other than short-term obligations, aggregated $67,854,184 and $74,307,614, respectively, for the six months ended May 31, 2012.
6 Common Shares of Beneficial Interest
Common shares issued pursuant to the Trusts dividend reinvestment plan for the six months ended May 31, 2012 and the year ended November 30, 2011 were 24,042 and 133,720, respectively.
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Municipal Income Trust
May 31, 2012
Notes to Financial Statements (Unaudited) continued
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7 Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of investments of the Trust at May 31, 2012, as determined on a federal income tax basis, were as follows:
| Aggregate cost | $ | |
|---|---|---|
| Gross unrealized appreciation | $ 54,735,414 | |
| Gross unrealized depreciation | (16,674,210 | ) |
| Net unrealized appreciation | $ 38,061,204 |
8 Overdraft Advances
Pursuant to the custodian agreement, SSBT may, in its discretion, advance funds to the Trust to make properly authorized payments. When such payments result in an overdraft, the Trust is obligated to repay SSBT at the current rate of interest charged by SSBT for secured loans (currently, a rate above the Federal Funds rate). This obligation is payable on demand to SSBT. SSBT has a lien on the Trusts assets to the extent of any overdraft. At May 31, 2012, the Trust had a payment due to SSBT pursuant to the foregoing arrangement of $1,055,785.
9 Financial Instruments
The Trust may trade in financial instruments with off-balance sheet risk in the normal course of its investing activities. These financial instruments may include financial futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment the Trust has in particular classes of financial instruments and do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered.
A summary of obligations under these financial instruments at May 31, 2012 is as follows:
| Futures Contracts | ||||||||
|---|---|---|---|---|---|---|---|---|
| Net | ||||||||
| Expiration | Unrealized | |||||||
| Month/Year | Contracts | Position | Aggregate Cost | Value | Depreciation | |||
| 9/12 | 900 U.S. 30-Year Treasury Bond | Short | $ (132,809,603 | ) | $ (134,746,875 | ) | $ (1,937,272 | ) |
At May 31, 2012, the Trust had sufficient cash and/or securities to cover commitments under these contracts.
The Trust is subject to interest rate risk in the normal course of pursuing its investment objective. Because the Trust holds fixed-rate bonds, the value of these bonds may decrease if interest rates rise. The Trust purchases and sells U.S. Treasury futures contracts to hedge against changes in interest rates.
The fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) and whose primary underlying risk exposure is interest rate risk at May 31, 2012 was as follows:
| Fair Value — Asset Derivative | Liability Derivative | ||
|---|---|---|---|
| Futures Contracts | $ | $ (1,937,272 | ) (1) |
| Total | $ | $ (1,937,272 | ) |
(1) Amount represents cumulative unrealized depreciation on futures contracts in the Futures Contracts table above. Only the current days variation margin on open futures contracts is reported within the Statement of Assets and Liabilities as Receivable or Payable for variation margin, as applicable.
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Municipal Income Trust
May 31, 2012
Notes to Financial Statements (Unaudited) continued
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The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations and whose primary underlying risk exposure is interest rate risk for the six months ended May 31, 2012 was as follows:
| Realized Gain (Loss) — on Derivatives Recognized | Change in Unrealized — Appreciation (Depreciation) on | |||
|---|---|---|---|---|
| Derivative | in Income | Derivatives Recognized in Income | ||
| Futures Contracts | $ (4,658,865 | ) (1) | $ (2,789,236 | ) (2) |
| (1) | Statement of Operations location: Net realized gain
(loss) Financial futures contracts. |
| --- | --- |
| (2) | Statement of Operations location: Change in unrealized
appreciation (depreciation) Financial futures
contracts. |
The average notional amount of futures contracts outstanding during the six months ended May 31, 2012, which is indicative of the volume of this derivative type, was approximately $72,857,000.
10 Fair Value Measurements
Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
| | Level 1 quoted prices in active markets for
identical investments |
| --- | --- |
| | Level 2 other significant observable inputs
(including quoted prices for similar investments, interest
rates, prepayment speeds, credit risk, etc.) |
| | Level 3 significant unobservable inputs
(including a funds own assumptions in determining the fair
value of investments) |
In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
At May 31, 2012, the hierarchy of inputs used in valuing the Trusts investments and open derivative instruments, which are carried at value, were as follows:
| Asset Description | Level 1 | Level 2 | Level 3 | Total | ||
|---|---|---|---|---|---|---|
| Tax-Exempt Municipal Securities | $ | $ 502,430,542 | $ | $ 502,430,542 | ||
| Taxable Municipal Securities | | 7,631,066 | | 7,631,066 | ||
| Total Investments | $ | $ 510,061,608 | $ | $ 510,061,608 | ||
| Liability Description | ||||||
| Futures Contracts | $ (1,937,272 | ) | $ | $ | $ (1,937,272 | ) |
| Total | $ (1,937,272 | ) | $ | $ | $ (1,937,272 | ) |
The Trust held no investments or other financial instruments as of November 30, 2011 whose fair value was determined using Level 3 inputs. At May 31, 2012, the value of investments transferred between Level 1 and Level 2, if any, during the six months then ended was not significant.
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Eaton Vance
Municipal Income Trust
May 31, 2012
Annual Meeting of Shareholders
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The Trust held its Annual Meeting of Shareholders on March 23, 2012. The following action was taken by the shareholders:
Item 1: The election of Benjamin C. Esty, Ronald A. Pearlman and Lynn A. Stout as Class I Trustees of the Trust for a three-year term expiring in 2015, Scott E. Eston as Class II Trustee of the Trust for a one-year term expiring in 2013 and Harriett Tee Taggart as Class III Trustee of the Trust for a two-year term expiring in 2014. Mr. Esty was elected solely by APS shareholders.
| Nominee for Trustee | Number of Shares | |
|---|---|---|
| Elected by APS Shareholders | For | Withheld |
| Benjamin C. Esty (Class I) | 2,292 | 180 |
| Nominees for Trustee | Number of Shares | |
|---|---|---|
| Elected by All Shareholders | For | Withheld |
| Ronald A. Pearlman (Class I) | 20,637,987 | 625,377 |
| Lynn A. Stout (Class I) | 20,664,267 | 599,097 |
| Scott E. Eston (Class II) | 20,603,342 | 660,022 |
| Harriett Tee Taggart (Class III) | 20,645,762 | 617,602 |
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Eaton Vance
Municipal Income Trust
May 31, 2012
Board of Trustees Contract Approval
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Overview of the Contract Review Process
The Investment Company Act of 1940, as amended (the 1940 Act), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuation is approved at least annually by the funds board of trustees, including by a vote of a majority of the trustees who are not interested persons of the fund (Independent Trustees), cast in person at a meeting called for the purpose of considering such approval.
At a meeting of the Boards of Trustees (each a Board) of the Eaton Vance group of mutual funds (the Eaton Vance Funds) held on April 23, 2012, the Board, including a majority of the Independent Trustees, voted to approve continuation of existing advisory and sub-advisory agreements for the Eaton Vance Funds for an additional one-year period. In voting its approval, the Board relied upon the affirmative recommendation of the Contract Review Committee of the Board, which is a committee comprised exclusively of Independent Trustees. Prior to making its recommendation, the Contract Review Committee reviewed information furnished by each adviser to the Eaton Vance Funds (including information specifically requested by the Board) for a series of meetings of the Contract Review Committee held between February and April 2012, as well as information considered during prior meetings of the committee. Such information included, among other things, the following:
Information about Fees, Performance and Expenses
| | An independent report comparing the advisory and related fees
paid by each fund with fees paid by comparable funds; |
| --- | --- |
| | An independent report comparing each funds total expense
ratio and its components to comparable funds; |
| | An independent report comparing the investment performance of
each fund (including, where relevant, yield data, Sharpe ratios
and information ratios) to the investment performance of
comparable funds over various time periods; |
| | Data regarding investment performance in comparison to benchmark
indices and customized peer groups, in each case as approved by
the Board with respect to the funds; |
| | For each fund, comparative information concerning the fees
charged and the services provided by each adviser in managing
other accounts (including mutual funds, other collective
investment funds and institutional accounts) using investment
strategies and techniques similar to those used in managing such
fund; |
| | Profitability analyses for each adviser with respect to each
fund; |
Information about Portfolio Management and Trading
| | Descriptions of the investment management services provided to
each fund, including the investment strategies and processes
employed, and any changes in portfolio management processes and
personnel; |
| --- | --- |
| | Information about the allocation of brokerage and the benefits
received by each adviser as a result of brokerage allocation,
including information concerning the acquisition of research
through client commission arrangements and the funds
policies with respect to soft dollar arrangements; |
| | Data relating to portfolio turnover rates of each fund; |
| | The procedures and processes used to determine the fair value of
fund assets and actions taken to monitor and test the
effectiveness of such procedures and processes; |
| | Information about each advisers processes for monitoring
best execution of portfolio transactions, and other policies and
practices of each adviser with respect to trading; |
Information about each Adviser
| | Reports detailing the financial results and condition of each
adviser; |
| --- | --- |
| | Descriptions of the qualifications, education and experience of
the individual investment professionals whose responsibilities
include portfolio management and investment research for the
funds, and information relating to their compensation and
responsibilities with respect to managing other mutual funds and
investment accounts; |
| | Copies of the Codes of Ethics of each adviser and its
affiliates, together with information relating to compliance
with and the administration of such codes; |
| | Copies of or descriptions of each advisers policies and
procedures relating to proxy voting, the handling of corporate
actions and class actions; |
| | Information concerning the resources devoted to compliance
efforts undertaken by each adviser and its affiliates on behalf
of the funds (including descriptions of various compliance
programs) and their record of compliance with investment
policies and restrictions, including policies with respect to
market-timing, late trading and selective portfolio disclosure,
and with policies on personal securities transactions; |
| | Descriptions of the business continuity and disaster recovery
plans of each adviser and its affiliates; |
| | A description of Eaton Vance Managements procedures for
overseeing third party advisers and sub-advisers, including with respect to regulatory and compliance issues,
investment management and other matters; |
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Eaton Vance
Municipal Income Trust
May 31, 2012
Board of Trustees Contract Approval continued
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Other Relevant Information
| | Information concerning the nature, cost and character of the
administrative and other non-investment management services
provided by Eaton Vance Management and its affiliates; |
| --- | --- |
| | Information concerning management of the relationship with the
custodian, subcustodians and fund accountants by each adviser or
the funds administrator; and |
| | The terms of each advisory agreement. |
In addition to the information identified above, the Contract Review Committee considered information provided from time to time by each adviser throughout the year at meetings of the Board and its committees. Over the course of the twelve-month period ended April 30, 2012, with respect to one or more funds, the Board met ten times and the Contract Review Committee, the Audit Committee, the Governance Committee, the Portfolio Management Committee and the Compliance Reports and Regulatory Matters Committee, each of which is a Committee comprised solely of Independent Trustees, met ten, nineteen, seven, eight and fourteen times respectively. At such meetings, the Trustees participated in investment and performance reviews with the portfolio managers and other investment professionals of each adviser relating to each fund. The Board and its Committees considered the investment and trading strategies used in pursuing each funds investment objective, including, where relevant, the use of derivative instruments, as well as risk management techniques. The Board and its Committees also evaluated issues pertaining to industry and regulatory developments, compliance procedures, fund governance and other issues with respect to the funds, and received and participated in reports and presentations provided by Eaton Vance Management and other fund advisers with respect to such matters.
For funds that invest through one or more underlying portfolios, the Board considered similar information about the portfolio(s) when considering the approval of advisory agreements. In addition, in cases where the funds investment adviser has engaged a sub-adviser, the Board considered similar information about the sub-adviser when considering the approval of any sub-advisory agreement.
The Contract Review Committee was assisted throughout the contract review process by Goodwin Procter LLP, legal counsel for the Independent Trustees. The members of the Contract Review Committee relied upon the advice of such counsel and their own business judgment in determining the material factors to be considered in evaluating each advisory and sub-advisory agreement and the weight to be given to each such factor. The conclusions reached with respect to each advisory and sub-advisory agreement were based on a comprehensive evaluation of all the information provided and not any single factor. Moreover, each member of the Contract Review Committee may have placed varying emphasis on particular factors in reaching conclusions with respect to each advisory and sub-advisory agreement.
Results of the Process
Based on its consideration of the foregoing, and such other information as it deemed relevant, including the factors and conclusions described below, the Contract Review Committee concluded that the continuation of the investment advisory agreement of Eaton Vance Municipal Income Trust (the Fund) with Eaton Vance Management (the Adviser), including its fee structure, is in the interests of shareholders and, therefore, the Contract Review Committee recommended to the Board approval of the agreement. The Board accepted the recommendation of the Contract Review Committee as well as the factors considered and conclusions reached by the Contract Review Committee with respect to the agreement. Accordingly, the Board, including a majority of the Independent Trustees, voted to approve continuation of the investment advisory agreement for the Fund.
Nature, Extent and Quality of Services
In considering whether to approve the investment advisory agreement of the Fund, the Board evaluated the nature, extent and quality of services provided to the Fund by the Adviser.
The Board considered the Advisers management capabilities and investment process with respect to the types of investments held by the Fund, including the education, experience and number of its investment professionals and other personnel who provide portfolio management, investment research, and similar services to the Fund. In particular, the Board considered, where relevant, the abilities and experience of such investment personnel in analyzing factors such as credit risk, tax efficiency, and special considerations relevant to investing in municipal bonds. The Board considered the Advisers large municipal bond team, which includes portfolio managers and credit specialists who provide services to the Fund. The Board also took into account the resources dedicated to portfolio management and other services, including the compensation methods of the Adviser to recruit and retain investment personnel, and the time and attention devoted to the Fund by senior management.
The Board reviewed the compliance programs of the Adviser and relevant affiliates thereof. Among other matters, the Board considered compliance and reporting matters relating to personal trading by investment personnel, selective disclosure of portfolio holdings, late trading, frequent trading, portfolio valuation, business continuity and the allocation of investment opportunities. The Board also evaluated the responses of the Adviser and its affiliates to requests in recent years from regulatory authorities such as the Securities and Exchange Commission and the Financial Industry Regulatory Authority.
The Board considered shareholder and other administrative services provided or managed by Eaton Vance Management and its affiliates, including transfer agency and accounting services. The Board evaluated the benefits to shareholders of investing in a fund that is a part of a large family of funds.
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Eaton Vance
Municipal Income Trust
May 31, 2012
Board of Trustees Contract Approval continued
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After consideration of the foregoing factors, among others, the Board concluded that the nature, extent and quality of services provided by the Adviser, taken as a whole, are appropriate and consistent with the terms of the investment advisory agreement.
Fund Performance
The Board compared the Funds investment performance to a relevant universe of similarly managed funds identified by an independent data provider and appropriate benchmark indices, and assessed the Funds performance on the basis of total return and current income return. The Boards review included comparative performance data for the one-, three-, five- and ten-year periods ended September 30, 2011 for the Fund. The Board considered the impact of extraordinary market conditions in recent years on the Funds performance relative to its peer universe in light of, among other things, the Advisers efforts to generate competitive levels of tax exempt current income over time through investments in higher quality municipal bonds with longer maturities. The Board noted that the Adviser had taken action to restructure the Funds portfolio as part of a long-term strategy for managing interest rate risk, consistent with the Funds objective of providing current income, and that performance had improved relative to peer funds over recent periods. The Board concluded that the Funds performance had been satisfactory on the basis of current income return, and that it was appropriate to continue to monitor the effectiveness of the actions taken by the Adviser to improve Fund performance on the basis of total return, which it noted had improved for periods ended as of December 31, 2011.
Management Fees and Expenses
The Board reviewed contractual investment advisory fee rates, including administrative fee rates, payable by the Fund (referred to as management fees). As part of its review, the Board considered the management fees and the Funds total expense ratio for the year ended September 30, 2011, as compared to a group of similarly managed funds selected by an independent data provider. The Board considered the financial resources committed by the Adviser in structuring the Fund at the time of its initial public offering and the waiver of fees provided by the Adviser for the first five years of the Funds life. The Board considered that, at the request of the Contract Review Committee, the Adviser had implemented a series of permanent reductions in management fees beginning in May 2010, which include a further fee reduction effective May 1, 2012. The Board also considered factors that had an impact on Fund expense ratios, as identified by management in response to inquiries from the Contract Review Committee, as well as actions taken by management in recent years to reduce expenses at the Eaton Vance fund complex level, including the negotiation of reduced fees for transfer agency and custody services.
After reviewing the foregoing information, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded that the management fees charged for advisory and related services are reasonable.
Profitability
The Board reviewed the level of profits realized by the Adviser and relevant affiliates thereof in providing investment advisory and administrative services to the Fund and to all Eaton Vance Funds as a group. The Board considered the level of profits realized without regard to revenue sharing or other payments by the Adviser and its affiliates to third parties in respect of distribution services. The Board also considered other direct or indirect benefits received by the Adviser and its affiliates in connection with their relationships with the Fund, including the benefits of research services that may be available to the Adviser as a result of securities transactions effected for the Fund and other investment advisory clients.
The Board concluded that, in light of the foregoing factors and the nature, extent and quality of the services rendered, the profits realized by the Adviser and its affiliates are reasonable.
Economies of Scale
In reviewing management fees and profitability, the Board also considered the extent to which the Adviser and its affiliates, on the one hand, and the Fund, on the other hand, can expect to realize benefits from economies of scale as the assets of the Fund increase. The Board acknowledged the difficulty in accurately measuring the benefits resulting from the economies of scale with respect to the management of any specific fund or group of funds. The Board reviewed data summarizing the increases and decreases in the assets of the Fund and of all Eaton Vance Funds as a group over various time periods, and evaluated the extent to which the total expense ratio of the Fund and the profitability of the Adviser and its affiliates may have been affected by such increases or decreases. Based upon the foregoing, the Board concluded that the Fund currently shares in the benefits from economies of scale. The Board also considered the fact that the Fund is not continuously offered and concluded that, in light of the level of the Advisers profits with respect to the Fund, the implementation of breakpoints in the advisory fee schedule is not appropriate at this time.
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Eaton Vance
Municipal Income Trust
May 31, 2012
Officers and Trustees
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| Officers of Eaton Vance Municipal
Income Trust | |
| --- | --- |
| Thomas M. Metzold President Payson F. Swaffield Vice President Barbara E. Campbell Treasurer | Maureen A. Gemma Vice President, Secretary and Chief Legal Officer Paul M. ONeil Chief Compliance Officer |
| Trustees of Eaton Vance Municipal
Income Trust | |
| --- | --- |
| Ralph F. Verni Chairman Scott E. Eston Benjamin C. Esty Thomas E. Faust Jr.* Allen R. Freedman | William H. Park Ronald A. Pearlman Helen Frame Peters Lynn A. Stout Harriett Tee Taggart |
Number of Employees
The Trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a closed-end, management investment company and has no employees.
Number of Shareholders
As of May 31, 2012, Trust records indicate that there are 369 registered shareholders and approximately 9,553 shareholders owning the Trust shares in street name, such as through brokers, banks, and financial intermediaries.
If you are a street name shareholder and wish to receive Trust reports directly, which contain important information about the Trust, please write or call:
Eaton Vance Distributors, Inc.
Two International Place
Boston, MA 02110
1-800-262-1122
New York Stock Exchange symbol
The New York Stock Exchange symbol is EVN.
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Eaton Vance
Municipal Income Trust
May 31, 2012
IMPORTANT NOTICES
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Privacy. The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy (Privacy Policy) with respect to nonpublic personal information about its customers:
| | Only such information received from you, through application
forms or otherwise, and information about your Eaton Vance fund
transactions will be collected. This may include information
such as name, address, social security number, tax status,
account balances and transactions. |
| --- | --- |
| | None of such information about you (or former customers) will be
disclosed to anyone, except as permitted by law (which includes
disclosure to employees necessary to service your account). In
the normal course of servicing a customers account, Eaton
Vance may share information with unaffiliated third parties that
perform various required services such as transfer agents,
custodians and broker/dealers. |
| | Policies and procedures (including physical, electronic and
procedural safeguards) are in place that are designed to protect
the confidentiality of such information. |
| | We reserve the right to change our Privacy Policy at any time
upon proper notification to you. Customers may want to review
our Privacy Policy periodically for changes by accessing the
link on our homepage: www.eatonvance.com. |
Our pledge of privacy applies to the following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance Investment Counsel, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Managements Real Estate Investment Group and Boston Management and Research. In addition, our Privacy Policy applies only to those Eaton Vance customers who are individuals and who have a direct relationship with us. If a customers account (i.e., fund shares) is held in the name of a third-party financial advisor/broker-dealer, it is likely that only such advisors privacy policies apply to the customer. This notice supersedes all previously issued privacy disclosures. For more information about Eaton Vances Privacy Policy, please call 1-800-262-1122.
Delivery of Shareholder Documents. The Securities and Exchange Commission (SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called householding and it helps eliminate duplicate mailings to shareholders. Eaton Vance, or your financial advisor, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial advisor, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial advisor. Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial advisor.
Portfolio Holdings. Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) will file a schedule of portfolio holdings on Form N-Q with the SEC for the first and third quarters of each fiscal year. The Form N-Q will be available on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SECs website at www.sec.gov. Form N-Q may also be reviewed and copied at the SECs public reference room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the public reference room).
Proxy Voting. From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds and Portfolios Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge, upon request, by calling 1-800-262-1122 and by accessing the SECs website at www.sec.gov.
Additional Notice to Shareholders. The Fund may redeem or purchase its outstanding auction preferred shares (APS) in order to maintain compliance with regulatory requirements, borrowing or rating agency requirements or for other purposes as it deems appropriate or necessary. The Fund also may purchase shares of its common stock in the open market when they trade at a discount to net asset value or at other times if the Fund determines such purchases are advisable. There can be no assurance that the Fund will take such action or that such purchases would reduce the discount.
Closed-End Fund Information. The Eaton Vance closed-end funds make certain fund performance data and information about portfolio characteristics (such as top holdings and asset allocation) available on the Eaton Vance website after the end of each month. Certain fund performance data for the funds, including total returns, are posted to the website shortly after the end of each month. Portfolio holdings for the most recent month-end are also posted to the website approximately 30 days following the end of the month. This information is available at www.eatonvance.com on the fund information pages under Individual Investors Closed-End Funds.
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Investment Adviser and Administrator Eaton Vance Management
Two International Place
Boston, MA 02110
Custodian State Street Bank and Trust Company
200 Clarendon Street
Boston, MA 02116
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Transfer Agent American Stock Transfer & Trust Company
59 Maiden Lane
Plaza Level
New York, NY 10038
Fund Offices Two International Place
Boston, MA 02110
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151-7/12 CE-NASRC
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Item 2. Code of Ethics
Not required in this filing.
Item 3. Audit Committee Financial Expert
The registrants Board has designated William H. Park, an independent trustee, as its audit committee financial expert. Mr. Park is a certified public accountant who is a consultant and private investor. Previously, he served as the Chief Financial Officer of Aveon Group, L.P. (an investment management firm), as the Vice Chairman of Commercial Industrial Finance Corp. (specialty finance company), as President and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm), as Executive Vice President and Chief Financial Officer of United Asset Management Corporation (an institutional investment management firm) and as a Senior Manager at Price Waterhouse (now PricewaterhouseCoopers) (an independent registered public accounting firm).
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Item 4. Principal Accountant Fees and Services
Not required in this filing.
Item 5. Audit Committee of Listed Registrants
Not required in this filing.
Item 6. Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not required in this filing.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not required in this filing.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
No such purchases this period.
Item 10. Submission of Matters to a Vote of Security Holders
No Material Changes.
Item 11. Controls and Procedures
(a) It is the conclusion of the registrants principal executive officer and principal financial officer that the effectiveness of the registrants current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commissions rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrants principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrants internal controls over financial reporting during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting.
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Item 12. Exhibits
| (a)(1) | Registrants Code of Ethics Not applicable (please see Item 2). |
|---|---|
| (a)(2)(i) | Treasurers Section 302 certification. |
| (a)(2)(ii) | Presidents Section 302 certification. |
| (b) | Combined Section 906 certification. |
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Eaton Vance Municipal Income Trust
| By: | /s/ Thomas M. Metzold Thomas M. Metzold |
|---|---|
| President | |
| Date: | July 10, 2012 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/ Barbara E. Campbell Barbara E. Campbell |
|---|---|
| Treasurer | |
| Date: | July 10, 2012 |
| By: | /s/ Thomas M. Metzold Thomas M. Metzold |
| President | |
| Date: | July 10, 2012 |
Folio /Folio
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