Eaton Vance California Municipal Bond Fund

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number: 811-21147

 

 

Eaton Vance California Municipal Bond Fund

(Exact Name of Registrant as Specified in Charter)

 

 

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

 

 

Maureen A. Gemma

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

 

 

(617) 482-8260

(Registrant’s Telephone Number)

September 30

Date of Fiscal Year End

March 31, 2013

Date of Reporting Period

 

 

 


Item 1. Reports to Stockholders


LOGO

 

 

Eaton Vance

Municipal Bond Funds

Semiannual Report

March 31, 2013

 

 

 

Municipal (EIM)    •    California (EVM)    •     New York (ENX)    

 

LOGO


 

 

Commodity Futures Trading Commission Registration. Effective December 31, 2012, the Commodity Futures Trading Commission (“CFTC”) adopted certain regulatory changes that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a prescribed level of its assets in certain CFTC-regulated instruments (including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. Each Fund has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act and is not subject to the CFTC regulation. Because of its management of other strategies, each Fund’s adviser is registered with the CFTC as a commodity pool operator.

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


Semiannual Report March 31, 2013

Eaton Vance

Municipal Bond Funds

Table of Contents

 

Performance and Fund Profile

  
  

Municipal Bond Fund

     2   

California Municipal Bond Fund

     3   

New York Municipal Bond Fund

     4   
  

Endnotes and Additional Disclosures

     5   

Financial Statements

     6   

Officers and Trustees

     34   

Important Notices

     35   


Eaton Vance

Municipal Bond Fund

March 31, 2013

 

Performance1,2

 

Portfolio Manager William H. Ahern, Jr., CFA

 

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

Fund at NAV

     08/30/2002         1.29      10.97      8.64      6.60

Fund at Market Price

             –2.30         11.80         8.12         6.96   

Barclays Capital Long (22+) Municipal Bond Index

             1.44      7.50      7.32      5.76
              
% Premium/Discount to NAV                                        
                 –1.08
              
Distributions3                                        

Total Distributions per share for the period

                 $0.383   

Distribution Rate at NAV

                 5.51

Taxable-Equivalent Distribution Rate at NAV

                 9.73

Distribution Rate at Market Price

                 5.57

Taxable-Equivalent Distribution Rate at Market Price

                 9.84
              
% Total Leverage4                                        

Residual Interest Bond (RIB)

                 39.41

Fund Profile

 

 

 

LOGO

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

    13.3   

BBB

    6.9

AA

    59.5      

BB

    0.2   

A

    19.6      

Not Rated

    0.5   

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

 

  2  


Eaton Vance

California Municipal Bond Fund

March 31, 2013

 

Performance1,2

 

Portfolio Manager Cynthia J. Clemson

 

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

Fund at NAV

     08/30/2002         2.16      9.92      6.75      5.55

Fund at Market Price

             –0.77         7.79         4.69         5.57   

Barclays Capital Long (22+) Municipal Bond Index

             1.44      7.50      7.32      5.76
              
% Premium/Discount to NAV                                        
                 –5.34
              
Distributions3                                        

Total Distributions per share for the period

                 $0.327   

Distribution Rate at NAV

                 5.06

Taxable-Equivalent Distribution Rate at NAV

                 10.31

Distribution Rate at Market Price

                 5.35

Taxable-Equivalent Distribution Rate at Market Price

                 10.90
              
% Total Leverage4                                        

RIB

                 41.80

Fund Profile

 

 

 

LOGO

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

    14.0   

BBB

    7.6

AA

    54.9      

BB

    2.7   

A

    20.8        

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

 

  3  


Eaton Vance

New York Municipal Bond Fund

March 31, 2013

 

Performance1,2

 

Portfolio Manager Craig R. Brandon, CFA

 

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

Fund at NAV

     08/30/2002         0.36      8.78      7.48      5.79

Fund at Market Price

             –2.13         9.23         7.01         6.26   

Barclays Capital Long (22+) Municipal Bond Index

             1.44      7.50      7.32      5.76
              
% Premium/Discount to NAV                                        
                 –1.13
              
Distributions3                                        

Total Distributions per share for the period

                 $0.344   

Distribution Rate at NAV

                 4.86

Taxable-Equivalent Distribution Rate at NAV

                 9.42

Distribution Rate at Market Price

                 4.91

Taxable-Equivalent Distribution Rate at Market Price

                 9.51
              
% Total Leverage4                                        

RIB

                 38.62

Fund Profile

 

 

 

LOGO

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

    14.2   

BBB

    9.7

AA

    49.3      

Not Rated

    1.5   

A

    25.3        

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

 

  4  


Eaton Vance

Municipal Bond Funds

March 31, 2013

 

Endnotes and Additional Disclosures

 

 

1 

Barclays Capital Long (22+) Municipal Bond Index is an unmanaged index of municipal bonds traded in the U.S. with maturities of 22 years or more. Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index.

 

2 

Performance results reflect the effects of leverage.

 

3

The Distribution Rate is based on the Fund’s last regular distribution per share in the period (annualized) divided by the Fund’s NAV or market price at the end of the period. The Fund’s distributions may be composed of ordinary income, tax-exempt income, net realized capital gains and return of capital. Taxable-equivalent performance is based on the highest combined federal and state income tax rates, where applicable. Lower tax rates would result in lower tax-equivalent performance. Actual tax rates will vary depending on your income, exemptions and deductions. Rates do not include local taxes.

 

4 

Fund employs RIB financing. The leverage created by RIB investments provides an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater price volatility). The cost of leverage rises and falls with changes in short-term interest rates. See “Floating Rate Notes Issued in Conjunction with Securities Held” in the notes to the financial statements for more information about RIB financing. RIB leverage represents the amount of Floating Rate Notes outstanding at period end as a percentage of Fund net assets plus Floating Rate Notes. Floating Rate Notes reflect adjustments for executed but unsettled RIB transactions, if applicable.

5 

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

 

   Fund profile subject to change due to active management.
 

 

  5  


Eaton Vance

Municipal Bond Fund

March 31, 2013

 

Portfolio of Investments (Unaudited)

 

 

Tax-Exempt Municipal Securities — 163.5%   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Education — 15.0%

  

California Educational Facilities Authority, (University of Southern California), 5.25%, 10/1/38(1)

  $ 9,750      $ 11,378,348   

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

    14,700        16,275,546   

Houston, TX, Higher Education Finance Corp., (William Marsh Rice University), 5.00%, 5/15/35(1)

    15,000        17,176,500   

Massachusetts Health and Educational Facilities Authority, (Boston College), 5.50%, 6/1/27

    5,810        7,405,600   

Massachusetts Health and Educational Facilities Authority, (Boston College), 5.50%, 6/1/30

    8,325        10,730,259   

Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.00%, 10/1/38(1)

    2,000        2,279,660   

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

    8,790        10,502,028   

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

    15,300        17,047,413   

New York Dormitory Authority, (State University Educational Facilities), 4.00%, 5/15/28

    8,025        8,678,235   

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

    13,500        15,678,360   

Tennessee School Bond Authority, 5.50%, 5/1/38

    5,000        5,793,700   

University of California, 5.25%, 5/15/39

    4,450        5,181,313   

University of Colorado, (University Enterprise Revenue),
5.25%, 6/1/36(1)

    10,000        11,624,000   

University of North Carolina at Charlotte, 5.00%, 4/1/32

    2,090        2,425,863   
   
    $ 142,176,825   
   

Electric Utilities — 2.6%

  

JEA St. Johns River Power Park System Revenue, FL, 4.00%, 10/1/32(1)

  $ 10,000      $ 10,305,800   

Pima County, AZ, Industrial Development Authority, (Tucson Electric Power Co.), 4.00%, 9/1/29

    2,055        2,061,638   

South Carolina Public Service Authority, (Santee Cooper), 5.50%, 1/1/38

    7,110        8,191,431   

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

    3,425        3,832,746   
   
    $ 24,391,615   
   

Escrowed / Prerefunded — 0.9%

  

Lehigh County, PA, General Purpose Authority, (Lehigh Valley Health Network), Prerefunded to 7/1/13, 5.25%, 7/1/32

  $ 8,165      $ 8,352,060   
   
    $ 8,352,060   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

General Obligations — 17.2%

  

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

  $ 8,320      $ 9,406,925   

City & County of San Francisco, CA, (Earthquake Safety & Emergency Response), 4.00%, 6/15/27

    9,080        9,793,143   

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

    3,000        3,576,510   

Florida Board of Education, 5.00%, 6/1/31

    10,000        11,752,900   

Frisco, TX, Independent School District, (PSF Guaranteed), 5.00%, 8/15/37

    6,465        7,393,439   

Georgia, 5.00%, 7/1/29

    10,000        11,941,000   

Hawaii, 5.00%, 12/1/29

    7,620        8,996,172   

Hawaii, 5.00%, 12/1/30

    6,500        7,646,340   

Klein, TX, Independent School District, (PSF Guaranteed), 5.00%, 2/1/36(1)

    2,000        2,308,540   

Mississippi, (Capital Improvements Projects), 5.00%, 10/1/30(1)

    10,000        11,684,200   

Mississippi, (Capital Improvements Projects), 5.00%, 10/1/36

    15        17,135   

Mississippi, 5.00%, 10/1/36(1)

    12,075        13,793,755   

New York, 5.00%, 12/15/30

    7,660        9,016,280   

New York, 5.00%, 2/15/36

    5,000        5,657,700   

North East Independent School District, TX, (PSF Guaranteed), 5.25%, 2/1/28

    2,000        2,584,580   

Northside Independent School District, TX, (PSF Guaranteed), 5.00%, 6/15/35

    180        199,283   

Northside Independent School District, TX, (PSF Guaranteed), 5.00%, 6/15/35(1)

    12,250        13,562,342   

Oregon, 5.00%, 8/1/35(1)

    6,750        7,899,660   

Oregon, 5.00%, 8/1/36

    2,000        2,332,520   

Port of Houston Authority of Harris County, TX, 5.00%, 10/1/35

    7,500        8,956,425   

Virginia Beach, VA, 4.00%, 4/1/27

    690        765,555   

Virginia Beach, VA, 4.00%, 4/1/28

    2,820        3,105,497   

Washington, 4.00%, 7/1/27(1)

    10,000        10,960,400   
   
    $ 163,350,301   
   

Hospital — 6.5%

  

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/27

  $ 1,000      $ 1,146,390   

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/28

    1,770        2,013,552   

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

    11,760        12,954,698   

California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/36

    4,215        4,502,168   

Camden County, NJ, Improvement Authority, (Cooper Health System), 5.00%, 2/15/35

    2,520        2,604,622   
 

 

  6   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Fund

March 31, 2013

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Hospital (continued)

  

Camden County, NJ, Improvement Authority, (Cooper Health System), 5.25%, 2/15/27

  $ 860      $ 895,948   

Camden County, NJ, Improvement Authority, (Cooper Health System), 5.75%, 2/15/34

    4,535        4,763,428   

Hawaii Department of Budget and Finance, (Hawaii Pacific Health), 5.60%, 7/1/33

    3,900        3,916,224   

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

    7,190        7,964,507   

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

    8,310        2,449,622   

Knox County, TN, Health, Educational and Housing Facilities Board, (Covenant Health), 0.00%, 1/1/41

    10,000        2,512,900   

Michigan Hospital Finance Authority, (Henry Ford Health System), 5.25%, 11/15/46

    5,355        5,649,418   

Orange County, FL, Health Facilities Authority, (Orlando Health, Inc.), 5.00%, 10/1/42

    2,000        2,180,840   

South Miami, FL, Health Facilities Authority, (Baptist Health South Florida Obligated Group), 5.00%, 8/15/42

    100        107,354   

South Miami, FL, Health Facilities Authority, (Baptist Health South Florida Obligated Group), 5.00%, 8/15/42(1)

    900        966,186   

Tarrant County, TX, Cultural Education Facilities Finance Corp., (Scott & White Healthcare), 5.25%, 8/15/40

    6,105        6,775,512   
   
    $ 61,403,369   
   

Industrial Development Revenue — 1.7%

  

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

  $ 9,160      $ 10,735,886   

St. Charles Parish, LA, (Valero Energy Corp.), 4.00% to 6/1/22 (Put Date), 12/1/40

    1,000        1,098,170   

St. John Baptist Parish, LA, (Marathon Oil Corp.), 5.125%, 6/1/37

    4,370        4,632,943   
   
    $ 16,466,999   
   

Insured – Education — 2.9%

  

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

  $ 14,400      $ 18,560,160   

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

    7,865        8,708,679   
   
    $ 27,268,839   
   

Insured – Electric Utilities — 3.6%

  

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

  $ 5,000      $ 5,662,550   

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

    1,350        1,589,018   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Electric Utilities (continued)

  

Mississippi Development Bank, (Municipal Energy), (XLCA), 5.00%, 3/1/41

  $ 13,895      $ 14,185,961   

Paducah, KY, Electric Plant Board, (AGC), 5.25%, 10/1/35

    2,735        3,011,782   

South Carolina Public Service Authority, (Santee Cooper), (BHAC), 5.50%, 1/1/38

    7,840        9,229,483   
   
    $ 33,678,794   
   

Insured – Escrowed / Prerefunded — 0.6%

  

Centre County, PA, Hospital Authority, (Mount Nittany Medical Center), (AGC), Prerefunded to 11/15/14, 6.125%, 11/15/39

  $ 3,950      $ 4,321,576   

Centre County, PA, Hospital Authority, (Mount Nittany Medical Center), (AGC), Prerefunded to 11/15/14, 6.25%, 11/15/44

    1,050        1,150,905   
   
    $ 5,472,481   
   

Insured – General Obligations — 10.7%

  

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

  $ 3,750      $ 4,928,138   

Clark County, NV, (AMBAC), 2.50%, 11/1/36

    11,845        9,483,818   

Frisco, TX, Independent School District, (AGM), (PSF Guaranteed), 2.75%, 8/15/39

    9,530        8,842,125   

Kane, Cook and DuPage Counties, IL, School District No. 46, (AMBAC), 0.00%, 1/1/22

    39,750        30,427,432   

King County, WA, Public Hospital District No. 1, (AGC), 5.00%, 12/1/37(1)

    7,000        7,670,390   

Palm Springs, CA, Unified School District, (AGC), 5.00%, 8/1/32

    8,955        10,034,078   

Port Arthur, TX, Independent School District, (AGC), 4.75%, 2/15/38

    95        104,372   

Port Arthur, TX, Independent School District, (AGC), 4.75%, 2/15/38(1)

    10,950        12,030,217   

Schaumburg, IL, (BHAC), (FGIC), 5.00%, 12/1/38(1)

    12,750        13,484,012   

Yuma and La Paz Counties, AZ, Community College District, (Arizona Western College), (NPFG), 3.75%, 7/1/31

    4,275        4,362,338   
   
    $ 101,366,920   
   

Insured – Hospital — 16.1%

  

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

  $ 8,250      $ 9,149,085   

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

    11,000        12,226,170   

Colorado Health Facilities Authority, (Catholic Health), (AGM), 5.10%, 10/1/41(1)

    11,500        12,418,045   

Highlands County, FL, Health Facilities Authority, (Adventist Health System), (BHAC), 5.25%, 11/15/36(1)

    15,500        17,204,070   
 

 

  7   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Fund

March 31, 2013

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Hospital (continued)

  

Highlands County, FL, Health Facilities Authority, (Adventist Health System), (NPFG), 5.00%, 11/15/35

  $ 3,795      $ 4,070,593   

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

    15,000        15,956,400   

Indiana Health and Educational Facility Finance Authority, (Sisters of St. Francis Health Services), (AGM), 5.25%, 5/15/41(1)

    2,500        2,671,675   

Iowa Finance Authority, Health Facilities, (Iowa Health System), (AGC), 5.625%, 8/15/37

    2,625        2,954,962   

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

    1,675        1,879,719   

Maryland Health and Higher Educational Facilities Authority, (LifeBridge Health), (AGC), 4.75%, 7/1/47(1)

    19,150        19,734,841   

New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), (AGC), 5.25%, 1/1/36

    5,250        5,626,582   

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

    545        578,943   

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

    410        435,535   

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

    3,250        3,452,410   

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

    13,115        14,449,189   

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

    5,795        6,688,009   

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

    8,700        9,517,101   

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

    12,605        13,795,163   
   
    $ 152,808,492   
   

Insured – Industrial Development Revenue — 1.1%

  

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

  $ 9,000      $ 9,964,530   
   
    $ 9,964,530   
   

Insured – Lease Revenue / Certificates of Participation — 9.2%

  

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

  $ 2,910      $ 3,375,222   

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

    24,000        26,671,680   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Lease Revenue / Certificates of Participation (continued)

  

San Jose, CA, Financing Authority, (Civic Center), (AMBAC), (BHAC), 5.00%, 6/1/37(1)

  $ 42,750      $ 42,888,937   

Tri-Creek Middle School Building Corp., IN, (AGM), 5.25%, 1/15/34(1)

    13,000        14,152,970   
   
    $ 87,088,809   
   

Insured – Other Revenue — 4.3%

  

Golden State Tobacco Securitization Corp., CA, (AGC), 5.00%, 6/1/45(1)

  $ 25,875      $ 27,097,853   

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

    16,795        5,608,522   

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

    6,750        8,318,835   
   
    $ 41,025,210   
   

Insured – Solid Waste — 0.5%

  

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

  $ 2,760      $ 3,299,580   

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

    1,575        1,873,321   
   
    $ 5,172,901   
   

Insured – Special Tax Revenue — 6.1%

  

Alabama Public School and College Authority, (AGM), 2.50%, 12/1/27

  $ 17,940      $ 17,016,628   

Houston, TX, Hotel Occupancy Tax, (AMBAC), 0.00%, 9/1/24

    18,035        11,273,679   

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

    15,000        12,960,450   

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

    28,945        4,388,062   

Utah Transportation Authority, Sales Tax Revenue, (AGM), 4.75%, 6/15/32(1)

    10,800        12,206,152   
   
    $ 57,844,971   
   

Insured – Student Loan — 0.9%

  

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

  $ 7,435      $ 8,343,334   
   
    $ 8,343,334   
   

Insured – Transportation — 20.6%

  

Chicago, IL, (O’Hare International Airport), (AGM), 4.75%, 1/1/34(1)

  $ 21,640      $ 22,991,632   

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

    8,080        9,019,300   

Director of the State of Nevada Department of Business and Industry, (Las Vegas Monorail), (AMBAC), 0.00%, 1/1/23(2)

    10,070        874,982   
 

 

  8   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Fund

March 31, 2013

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Transportation (continued)

  

Director of the State of Nevada Department of Business and Industry, (Las Vegas Monorail), (AMBAC), 0.00%, 1/1/28(2)

  $ 3,100      $ 182,559   

Director of the State of Nevada Department of Business and Industry, (Las Vegas Monorail), (AMBAC), 5.375%, 1/1/40(6)

    15,000        3,622,200   

E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/21

    10,200        7,617,768   

E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/39

    25,000        6,228,500   

Harris County, TX, Toll Road, Senior Lien, (BHAC), (NPFG), 5.00%, 8/15/33(1)

    7,800        8,784,594   

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

    6,710        7,337,855   

Maryland Transportation Authority, (AGM), 5.00%, 7/1/35(1)

    20,995        23,762,338   

Maryland Transportation Authority, (AGM), 5.00%, 7/1/36(1)

    14,000        15,736,840   

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

    1,785        2,034,596   

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

    11,700        13,507,767   

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

    1,015        1,158,897   

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

    1,160        1,329,801   

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

    20,000        23,234,400   

Port Authority of New York and New Jersey, (AGM), 5.00%, 8/15/26(1)

    10,000        11,414,900   

Port Palm Beach District, FL, (XLCA), 0.00%, 9/1/24

    1,605        847,328   

Port Palm Beach District, FL, (XLCA), 0.00%, 9/1/25

    1,950        967,629   

Port Palm Beach District, FL, (XLCA), 0.00%, 9/1/26

    1,000        466,630   

San Joaquin Hills Transportation Corridor Agency, CA, (Toll Road Bonds), (NPFG), 0.00%, 1/15/25

    26,215        14,740,957   

Texas Turnpike Authority, (AMBAC), 0.00%, 8/15/20

    23,845        19,412,453   
   
    $ 195,273,926   
   

Insured – Water and Sewer — 15.0%

  

Austin, TX, Water and Wastewater, (AGM), (BHAC), 5.00%, 11/15/33(1)

  $ 2,000      $ 2,232,200   

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

    3,185        3,662,973   

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

    1,985        2,287,335   

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

    3,170        3,660,050   

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

    3,060        3,486,258   

Chicago, IL, Wastewater Transmission Revenue, (NPFG), 0.00%, 1/1/23

    13,670        9,832,831   

DeKalb County, GA, Water and Sewer, (AGM), 5.25%, 10/1/32(1)

    10,000        12,351,900   

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

    8,500        9,766,330   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Water and Sewer (continued)

  

Houston, TX, Utility System, (AGM), (BHAC), 5.00%, 11/15/33(1)

  $ 27,570      $ 31,194,348   

Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/32

    5,540        7,154,134   

Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/38

    1,070        1,403,316   

Massachusetts Water Resources Authority, (AMBAC), (BHAC), 4.00%, 8/1/40

    9,095        9,269,988   

New York, NY, Municipal Water Finance Authority, (BHAC), 5.75%, 6/15/40(1)

    9,500        11,281,155   

San Luis Obispo County, CA, (Nacimiento Water Project), (NPFG), 4.50%, 9/1/40

    3,535        3,612,417   

Seattle, WA, Drain and Wastewater Revenue, (AGM), 5.00%, 6/1/38(1)

    27,670        31,031,624   
   
    $ 142,226,859   
   

Lease Revenue / Certificates of Participation — 1.6%

  

Hudson Yards Infrastructure Corp., NY, 5.75%, 2/15/47

  $ 2,565      $ 3,007,950   

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

    335        387,628   

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

    10,000        11,571,000   
   
    $ 14,966,578   
   

Other Revenue — 3.0%

  

New York, NY, Transitional Finance Authority, Building Aid Revenue, 5.00%, 7/15/36(1)

  $ 10,750      $ 12,128,903   

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

    9,200        11,096,304   

Texas Municipal Gas Acquisition and Supply Corp. III, Gas Supply Revenue, 5.00%, 12/15/31

    1,440        1,528,128   

Texas Municipal Gas Acquisition and Supply Corp. III, Gas Supply Revenue, 5.00%, 12/15/32

    3,395        3,588,922   
                 
    $ 28,342,257   
                 

Senior Living / Life Care — 0.1%

  

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

  $ 1,175      $ 1,354,011   
   
    $ 1,354,011   
   

Special Tax Revenue — 5.1%

  

Michigan Trunk Line Fund, 5.00%, 11/15/30

  $ 1,390      $ 1,618,919   

Michigan Trunk Line Fund, 5.00%, 11/15/31

    1,500        1,743,285   

Michigan Trunk Line Fund, 5.00%, 11/15/33

    1,285        1,480,680   

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

    1,020        1,167,808   
 

 

  9   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Fund

March 31, 2013

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Special Tax Revenue (continued)

  

New York City Transitional Finance Authority, Future Tax Revenue, 5.00%, 2/1/37(1)

  $ 20,000      $ 22,744,200   

New York Dormitory Authority, Personal Income Tax Revenue, 5.00%, 12/15/32

    7,180        8,332,749   

New York Urban Development Corp., Personal Income Tax Revenue, 5.00%, 3/15/31

    10,000        11,396,000   
   
    $ 48,483,641   
   

Transportation — 10.5%

  

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

  $ 8,275      $ 9,223,977   

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

    3,285        3,856,327   

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

    4,640        5,212,576   

Metropolitan Transportation Authority, NY, 5.25%, 11/15/40

    6,735        7,520,436   

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

    10,940        12,079,839   

New Jersey Transportation Trust Fund Authority, (Transportation System), 5.00%, 12/15/24

    10,000        12,169,300   

New York Thruway Authority, 5.00%, 1/1/37

    780        866,627   

New York Thruway Authority, 5.00%, 1/1/42

    4,695        5,160,697   

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

    2,915        3,205,713   

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

    2,590        2,827,451   

Pennsylvania Turnpike Commission, 6.00%, (0.00% until 12/1/15), 12/1/34

    5,000        4,906,350   

Port Authority of New York and New Jersey, 4.00%, 7/15/32(1)

    9,650        10,410,323   

Port Authority of New York and New Jersey, 4.75%, 7/15/31

    4,300        4,750,554   

Port Authority of New York and New Jersey, 5.00%, 7/15/39

    5,000        5,586,500   

Texas Transportation Commission, (Central Texas Turnpike System), 5.00%, 8/15/41

    5,320        5,734,641   

Triborough Bridge and Tunnel Authority, NY, 5.00%, 11/15/33

    5,000        5,651,200   
   
    $ 99,162,511   
   

Water and Sewer — 7.7%

  

California Department of Water Resources, (Central Valley Project), 5.25%, 12/1/35(1)

  $ 10,000      $ 12,021,500   

Charleston, SC, Waterworks and Sewer Revenue, 5.00%, 1/1/35

    2,735        3,142,625   

Chicago, IL, Water Revenue, 5.00%, 11/1/42

    5,000        5,565,500   

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

    1,070        1,154,198   

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

    1,785        1,930,977   

Honolulu, HI, City and County Wastewater System, 5.25%, 7/1/36(1)

    9,750        11,347,538   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Water and Sewer (continued)

  

King County, WA, Sewer Revenue, 5.00%, 1/1/34(1)

  $ 10,000      $ 11,334,000   

Marco Island, FL, Utility System, 5.00%, 10/1/34

    1,445        1,598,589   

Marco Island, FL, Utility System, 5.00%, 10/1/40

    6,325        6,940,106   

New York Municipal Water Finance Authority, 5.00%, 6/15/34

    10,000        11,387,500   

Portland, OR, Water System, 5.00%, 5/1/36

    5,385        6,163,941   
   
    $ 72,586,474   
   

Total Tax-Exempt Municipal Securities — 163.5%
(identified cost $1,426,171,525)

   

  $ 1,548,572,707   
                 
Corporate Bonds & Notes — 0.0%(3)   
   
Security   Principal
Amount
(000’s omitted)
    Value  

Municipal — 0.0%(3)

  

Las Vegas Monorail Co., Jr. Subordinated Notes, 3.00% to 12/31/15,
5.50%, 7/15/55(4)(5)

  $ 125      $ 0   

Las Vegas Monorail Co., Sr. Secured Notes, 5.50%, 7/15/19(4)(5)

    416        208,140   
                 

Total Corporate Bonds & Notes — 0.0%(3)
(identified cost $0)

   

  $ 208,140   
   

Total Investments — 163.5%
(identified cost $1,426,171,525)

   

  $ 1,548,780,847   
   

Other Assets, Less Liabilities — (63.5)%

  

  $ (601,395,341
   

Net Assets — 100.0%

  

  $ 947,385,506   
   

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

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
BHAC     Berkshire Hathaway Assurance Corp.
FGIC     Financial Guaranty Insurance Company
NPFG     National Public Finance Guaranty Corp.
PSF     Permanent School Fund
XLCA     XL Capital Assurance, Inc.
 

 

  10   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Fund

March 31, 2013

 

Portfolio of Investments (Unaudited) — continued

 

 

At March 31, 2013, the concentration of the Fund’s investments in the various states, determined as a percentage of total investments, is as follows:

 

California      12.9%   
New York      12.8%   
Texas      12.4%   
Others, representing less than 10% individually      61.9%   

The Fund invests primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2013, 56.0% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.1% to 20.0% of total investments.

 

(1)

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

 

(2)

Defaulted security. Issuer has defaulted on the payment of interest or has filed for bankruptcy.

 

(3)

Amount is less than 0.05%.

 

(4)

Represents a payment-in-kind security which may pay all or a portion of interest in additional par.

 

(5)

For fair value measurement disclosure purposes, security is categorized as Level 3 (see Note 9).

 

(6) 

Security is in default and making only partial interest payments.

 

 

  11   See Notes to Financial Statements.


Eaton Vance

California Municipal Bond Fund

March 31, 2013

 

Portfolio of Investments (Unaudited)

 

 

Tax-Exempt Investments — 170.2%   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Education — 15.1%

  

California Educational Facilities Authority, (California Institute of Technology), 5.00%, 11/1/39(1)

  $ 10,000      $ 11,172,000   

California Educational Facilities Authority, (Claremont McKenna College), 5.00%, 1/1/27

    2,680        3,079,240   

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

    550        632,769   

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

    940        1,066,251   

California Educational Facilities Authority, (Loyola Marymount University), 5.00%, 10/1/23

    365        430,412   

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

    1,375        1,513,009   

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

    3,630        4,132,428   

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

    650        795,899   

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

    6,200        7,186,420   

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

    1,790        2,019,550   

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

    1,175        1,311,511   

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

    800        875,016   

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

    2,270        2,643,233   

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

    2,395        2,771,686   

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

    2,520        2,899,084   
   
    $ 42,528,508   
   

Electric Utilities — 3.1%

  

Puerto Rico Electric Power Authority, 5.25%, 7/1/29

  $ 3,905      $ 3,868,879   

Southern California Public Power Authority, (Tieton Hydropower), 5.00%, 7/1/35

    1,890        2,157,983   

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

    2,375        2,687,835   
   
    $ 8,714,697   
   

General Obligations — 23.7%

  

California, 5.50%, 11/1/35

  $ 4,600      $ 5,550,498   

Foothill-De Anza Community College District, 5.00%, 8/1/40(1)

    10,000        11,320,000   

Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/32

    545        591,014   
Security   Principal
Amount
(000’s omitted)
    Value  
   

General Obligations (continued)

  

Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/33

  $ 600      $ 648,342   

Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/34

    655        704,250   

Larkspur-Corte Madera School District, (Election of 2011), 4.25%, 8/1/35

    645        705,333   

Larkspur-Corte Madera School District, (Election of 2011), 4.25%, 8/1/36

    785        855,399   

Larkspur-Corte Madera School District, (Election of 2011), 4.50%, 8/1/39

    2,815        3,125,579   

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

    7,020        7,926,352   

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

    1,375        1,584,784   

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

    2,545        2,945,532   

San Francisco Bay Area Rapid Transit District, (Election of 2004), 5.00%, 8/1/35

    5,000        5,671,250   

San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/33

    1,910        2,225,055   

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

    2,230        2,589,922   

San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/37

    15        17,158   

San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/37(1)

    4,975        5,690,803   

Santa Monica-Malibu Unified School District, (Election 2006),
4.50%, 7/1/36(2)

    12,000        13,282,560   

Tamalpais Union High School District, 5.00%, 8/1/26

    1,000        1,201,070   
                 
    $ 66,634,901   
                 

Hospital — 18.4%

  

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 7/1/23

  $ 2,000      $ 2,104,180   

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/27

    1,750        2,006,183   

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/28

    550        625,680   

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

    4,580        5,045,282   

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

    2,565        2,916,482   

California Health Facilities Financing Authority, (City of Hope), 5.00%, 11/15/39

    2,565        2,873,800   

California Health Facilities Financing Authority, (Lucile Salter Packard Children’s Hospital), 5.00%, 8/15/51(1)

    10,000        11,084,800   

California Health Facilities Financing Authority, (Stanford Hospital and Clinics), 5.00%, 8/15/51

    6,000        6,640,800   
 

 

  12   See Notes to Financial Statements.


Eaton Vance

California Municipal Bond Fund

March 31, 2013

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Hospital (continued)

  

California Health Facilities Financing Authority, (Sutter Health), 5.25%, 8/15/31(1)

  $ 5,000      $ 5,838,100   

California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/34

    2,170        2,354,081   

Torrance, (Torrance Memorial Medical Center), 5.50%, 6/1/31(3)

    3,950        3,958,808   

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

    3,165        3,297,044   

Washington Township Health Care District, 5.25%, 7/1/29

    3,005        3,009,538   
   
    $ 51,754,778   
   

Insured – Education — 11.7%

  

California Educational Facilities Authority, (Pepperdine University), (AMBAC), 5.00%, 12/1/32

  $ 2,300      $ 2,495,776   

California State University, (AGM), (BHAC), 5.00%, 11/1/39(1)

    8,250        9,086,138   

University of California, (AGM), 4.50%, 5/15/26(1)

    3,095        3,328,889   

University of California, (AGM), 4.50%, 5/15/28(1)

    6,690        7,001,419   

University of California, (BHAC), (FGIC), 4.75%, 5/15/37(1)

    10,750        10,920,817   
   
    $ 32,833,039   
   

Insured – Electric Utilities — 14.2%

  

Anaheim Public Financing Authority, (Electric System District), (BHAC), (NPFG), 4.50%, 10/1/32(1)

  $ 20,000      $ 21,214,390   

Glendale, Electric System Revenue, (AGC), 5.00%, 2/1/31

    2,240        2,460,013   

Los Angeles Department of Water and Power, Electric System Revenue, (AMBAC), (BHAC), 5.00%, 7/1/26(1)

    6,750        7,752,510   

Northern California Power Agency, (Hydroelectric), (AGC), 5.00%, 7/1/24

    2,000        2,317,160   

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

    1,000        1,129,780   

Sacramento Municipal Utility District, (AMBAC), (BHAC), 5.25%, 7/1/24

    4,000        4,926,200   
   
    $ 39,800,053   
   

Insured – General Obligations — 21.5%

  

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

  $ 4,175      $ 4,713,617   

Burbank Unified School District, (FGIC), (NPFG), 0.00%, 8/1/21

    4,135        3,272,274   

Coast Community College District, (Election of 2002), (AGM), 0.00%, 8/1/34

    23,150        7,555,465   

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

    2,385        2,458,506   

Palm Springs Unified School District, (Election of 2008), (AGC), 5.00%, 8/1/33(3)

    4,500        5,025,690   

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

    5,705        6,432,730   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – General Obligations (continued)

  

San Diego Community College District, (Election of 2006), (AGM), 5.00%, 8/1/32

  $ 15      $ 17,169   

San Diego Community College District, (Election of 2006), (AGM), 5.00%, 8/1/32(1)

    6,100        6,982,121   

San Diego Unified School District, (FGIC), (NPFG), 0.00%, 7/1/22

    2,300        1,708,808   

San Diego Unified School District, (FGIC), (NPFG), 0.00%, 7/1/23

    5,000        3,488,500   

San Juan Unified School District, (AGM), 0.00%, 8/1/21

    5,630        4,455,357   

San Mateo County, Community College District, (FGIC), (NPFG), 0.00%, 9/1/22

    4,840        3,785,267   

San Mateo County, Community College District, (FGIC), (NPFG), 0.00%, 9/1/23

    4,365        3,261,528   

San Mateo County, Community College District, (FGIC), (NPFG), 0.00%, 9/1/25

    3,955        2,710,243   

San Mateo Union High School District, (FGIC), (NPFG), 0.00%, 9/1/21(3)

    5,240        4,341,549   

Ventura County, Community College District, (NPFG), 5.00%, 8/1/27

    350        355,148   
   
    $ 60,563,972   
   

Insured – Hospital — 7.0%

  

California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), (BHAC), 5.00%, 11/15/34

  $ 2,205      $ 2,400,892   

California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC),
5.00%, 4/1/31(1)

    10,000        11,150,000   

California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC),
5.00%, 3/1/41(1)

    3,500        3,779,090   

California Statewide Communities Development Authority, (Sutter Health), (AMBAC), (BHAC), 5.00%, 11/15/38(1)

    2,000        2,208,240   
   
    $ 19,538,222   
   

Insured – Lease Revenue / Certificates of Participation — 11.2%

  

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

  $ 3,885      $ 5,259,280   

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

    10,000        11,113,200   

San Jose Financing Authority, (Civic Center), (AMBAC), (BHAC), 5.00%, 6/1/37

    1,000        1,003,250   

San Jose Financing Authority, (Civic Center), (AMBAC), (BHAC), 5.00%, 6/1/37(1)

    14,000        14,045,500   
   
    $ 31,421,230   
   

Insured – Special Tax Revenue — 12.7%

  

Ceres, Redevelopment Agency Tax, (AMBAC), 4.00%, 11/1/36

  $ 7,765      $ 6,838,247   

Hesperia Public Financing Authority, (Redevelopment and Housing Projects), (XLCA), 5.00%, 9/1/31

    595        585,129   
 

 

  13   See Notes to Financial Statements.


Eaton Vance

California Municipal Bond Fund

March 31, 2013

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Special Tax Revenue (continued)

  

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

  $ 7,240      $ 6,784,097   

Pomona, Public Financing Authority, (NPFG), 5.00%, 2/1/33

    5,940        5,941,307   

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

    15,020        2,277,032   

San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, (AGM), 4.25%, 7/1/36

    1,600        1,637,824   

San Jose Redevelopment Agency, (Merged Area Redevelopment Project), (XLCA), 4.25%, 8/1/36

    3,680        3,316,159   

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

    7,500        8,436,450   
   
    $ 35,816,245   
   

Insured – Transportation — 2.0%

  

San Joaquin Hills, Transportation Corridor Agency, (NPFG), 0.00%, 1/15/30

  $ 3,445      $ 1,480,902   

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

    1,885        1,983,925   

San Jose, Airport Revenue, (AMBAC), 5.00%, 3/1/37

    2,040        2,138,654   
   
    $ 5,603,481   
   

Insured – Water and Sewer — 9.7%

  

Calleguas Las Virgines Public Financing Authority, (Municipal Water District), (BHAC), (FGIC), 4.75%, 7/1/37(1)

  $ 7,000      $ 7,411,880   

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

    345        389,560   

East Bay Municipal Utility District, Water System Revenue, (FGIC), (NPFG), 5.00%, 6/1/32(1)

    6,500        7,339,540   

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

    1,595        1,741,038   

San Luis Obispo County, (Nacimiento Water Project), (BHAC), (NPFG), 5.00%, 9/1/38

    5,000        5,393,100   

San Luis Obispo County, (Nacimiento Water Project), (NPFG), 4.50%, 9/1/40

    2,750        2,810,225   

Santa Clara Valley Water District, (AGM), 3.75%, 6/1/28

    2,225        2,289,748   
   
    $ 27,375,091   
   

Special Tax Revenue — 9.4%

  

Contra Costa Community College District, 4.00%, 8/1/30(1)

  $ 7,500      $ 7,934,325   

San Diego County Regional Transportation Commission, 5.00%, 4/1/42(1)

    10,000        11,286,300   

San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, 5.00%, 7/1/36(1)

    6,250        7,207,250   
   
    $ 26,427,875   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Transportation — 8.1%

  

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

  $ 6,500      $ 7,769,580   

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

    1,960        2,261,683   

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

    7,500        8,433,150   

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

    2,190        2,417,081   

San Jose, Airport Revenue, 5.00%, 3/1/31

    1,750        1,919,470   
   
    $ 22,800,964   
   

Water and Sewer — 2.4%

  

Beverly Hills Public Financing Authority, Water Revenue, 5.00%, 6/1/37

  $ 10      $ 11,676   

Beverly Hills Public Financing Authority, Water Revenue, 5.00%, 6/1/37(1)

    5,725        6,684,682   
                 
    $ 6,696,358   
                 

Total Tax-Exempt Investments — 170.2%
(identified cost $444,276,809)

   

  $ 478,509,414   
   

Other Assets, Less Liabilities — (70.2)%

  

  $ (197,430,768
   

Net Assets — 100.0%

  

  $ 281,078,646   
   

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

 

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

The Fund invests primarily in debt securities issued by California municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2013, 52.9% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 2.0% to 21.2% of total investments.

 

(1)

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

 

(2)

When-issued security.

 

(3)

Security (or a portion thereof) has been segregated to cover payable for when-issued securities.

 

 

  14   See Notes to Financial Statements.


Eaton Vance

New York Municipal Bond Fund

March 31, 2013

 

Portfolio of Investments (Unaudited)

 

 

Tax-Exempt Investments — 161.3%   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Bond Bank — 4.7%

  

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

  $ 3,360      $ 3,789,643   

New York Environmental Facilities Corp., Clean Water and Drinking Water, (Municipal Water Finance), 5.00%, 10/15/35

    50        55,869   

New York Environmental Facilities Corp., Clean Water and Drinking Water, (Municipal Water Finance), 5.00%, 10/15/35(1)

    6,100        6,815,957   
   
    $ 10,661,469   
   

Education — 25.7%

  

Hempstead Local Development Corp., (Adelphi University Project), 5.00%, 6/1/20

  $ 760      $ 896,914   

Hempstead Local Development Corp., (Adelphi University Project), 5.00%, 6/1/21

    950        1,126,975   

Hempstead Local Development Corp., (Adelphi University Project), 5.00%, 6/1/31

    800        884,936   

Hempstead Local Development Corp., (Adelphi University Project), 5.00%, 6/1/32

    300        329,835   

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

    405        466,722   

Monroe County Industrial Development Corp., (St. John Fisher College), 5.00%, 6/1/24

    210        238,197   

Monroe County Industrial Development Corp., (St. John Fisher College), 5.00%, 6/1/25

    135        151,196   

New York City Cultural Resource Trust, (The Juilliard School), 5.00%, 1/1/39

    240        274,085   

New York City Cultural Resource Trust, (The Juilliard School), 5.00%, 1/1/39(1)

    10,000        11,420,200   

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

    10,000        11,518,100   

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

    5,700        6,508,203   

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

    10,000        11,314,600   

New York Dormitory Authority, (Rochester Institute of Technology), 5.00%, 7/1/40

    2,000        2,203,520   

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

    2,700        3,008,367   

New York Dormitory Authority, (Skidmore College), 5.00%, 7/1/26

    1,175        1,359,675   

New York Dormitory Authority, (Skidmore College), 5.25%, 7/1/30

    300        344,658   

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

    5,250        5,926,567   
                 
    $ 57,972,750   
                 
Security   Principal
Amount
(000’s omitted)
    Value  
   

Electric Utilities — 1.6%

  

Puerto Rico Electric Power Authority, 5.25%, 7/1/30

  $ 3,560      $ 3,513,969   
                 
    $ 3,513,969   
                 

Escrowed / Prerefunded — 0.7%

  

Madison County Industrial Development Agency, (Colgate University), Prerefunded to 7/1/13, 5.00%, 7/1/33

  $ 1,630      $ 1,650,261   
                 
    $ 1,650,261   
                 

General Obligations — 11.8%

  

Arlington Central School District, 4.00%, 12/15/29

  $ 1,360      $ 1,481,598   

Arlington Central School District, 4.00%, 12/15/30

    2,330        2,521,922   

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

    4,715        5,269,625   

New York, 5.00%, 2/15/34(1)

    7,250        8,257,967   

New York City, 4.00%, 10/1/30(1)

    7,500        7,947,450   

Peekskill, 5.00%, 6/1/35

    465        509,603   

Peekskill, 5.00%, 6/1/36

    490        535,526   
                 
    $ 26,523,691   
                 

Hospital — 10.2%

  

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

  $ 620      $ 685,187   

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

    820        900,737   

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

    9,325        10,037,523   

New York Dormitory Authority, (North Shore-Long Island Jewish Obligated Group), 5.00%, 5/1/20

    1,065        1,291,877   

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

    2,055        2,206,515   

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

    6,900        7,813,491   
                 
    $ 22,935,330   
                 

Housing — 1.2%

  

New York Housing Development Corp., 4.95%, 11/1/39

  $ 2,500      $ 2,676,275   
                 
    $ 2,676,275   
                 

Industrial Development Revenue — 1.0%

  

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

  $ 500      $ 586,020   

New York Liberty Development Corp., (Goldman Sachs Group, Inc.), 5.50%, 10/1/37

    1,440        1,746,058   
                 
    $ 2,332,078   
                 
 

 

  15   See Notes to Financial Statements.


Eaton Vance

New York Municipal Bond Fund

March 31, 2013

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Education — 17.5%

  

New York Dormitory Authority, (City University), (AMBAC), 5.50%, 7/1/35

  $ 925      $ 1,121,211   

New York Dormitory Authority, (Educational Housing Services CUNY Student Housing), (AMBAC), 5.25%, 7/1/23

    1,750        2,075,833   

New York Dormitory Authority, (Fordham University), (AGC), (BHAC), 5.00%, 7/1/38(1)

    10,750        11,827,795   

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

    1,555        1,724,168   

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

    2,405        2,664,860   

New York Dormitory Authority, (St. John’s University), (NPFG), 5.25%, 7/1/37

    3,750        4,142,738   

New York Dormitory Authority, (State University), (BHAC), 5.00%, 7/1/38(1)

    8,500        9,352,210   

Oneida County Industrial Development Agency, (Hamilton College), (NPFG), 0.00%, 7/1/34

    5,555        2,165,283   

Oneida County Industrial Development Agency, (Hamilton College), (NPFG), 0.00%, 7/1/36

    8,455        2,990,449   

Oneida County Industrial Development Agency, (Hamilton College), (NPFG), 0.00%, 7/1/37

    4,000        1,348,920   
                 
    $ 39,413,467   
                 

Insured – Electric Utilities — 6.0%

  

Long Island Power Authority, Electric System Revenue, (BHAC), 5.75%, 4/1/33

  $ 5,000      $ 5,964,400   

New York Power Authority, (BHAC), (NPFG), 4.50%, 11/15/47(1)

    7,210        7,588,592   
                 
    $ 13,552,992   
                 

Insured – Escrowed / Prerefunded — 3.4%

  

Madison County Industrial Development Agency, (Colgate University), (NPFG), Prerefunded to 7/1/14, 5.00%, 7/1/39

  $ 4,000      $ 4,238,800   

New York Dormitory Authority, (Brooklyn Law School), (XLCA), Prerefunded to 7/1/13, 5.125%, 7/1/30

    3,280        3,321,394   
                 
    $ 7,560,194   
                 

Insured – General Obligations — 8.7%

  

Brentwood Union Free School District, (AGC), 4.75%, 11/15/23

  $ 2,290      $ 2,678,407   

Brentwood Union Free School District, (AGC), 5.00%, 11/15/24

    2,390        2,811,022   

East Northport Fire District, (AGC), 4.50%, 11/1/20

    200        236,956   

East Northport Fire District, (AGC), 4.50%, 11/1/21

    200        234,890   

East Northport Fire District, (AGC), 4.50%, 11/1/22

    200        232,800   

East Northport Fire District, (AGC), 4.50%, 11/1/23

    200        230,648   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – General Obligations (continued)

  

Eastchester Union Free School District, (AGM), 3.75%, 6/15/21

  $ 255      $ 281,658   

Eastchester Union Free School District, (AGM), 4.00%, 6/15/23

    175        192,052   

Freeport, (AGC), 5.00%, 10/15/20

    185        221,190   

Freeport, (AGC), 5.00%, 10/15/21

    195        231,264   

Hauppauge Union Free School District, (AGC), 4.00%, 7/15/24

    940        1,033,568   

Hoosic Valley Central School District, (AGC), 4.00%, 6/15/23

    1,110        1,232,844   

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

    820        899,975   

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

    860        942,061   

New York City, (AGM), 5.00%, 4/1/22

    2,250        2,529,697   

Wantagh Union Free School District, (AGC), 4.50%, 11/15/19

    785        903,056   

Wantagh Union Free School District, (AGC), 4.50%, 11/15/20

    825        940,030   

Wantagh Union Free School District, (AGC), 4.75%, 11/15/22

    905        1,020,940   

Wantagh Union Free School District, (AGC), 4.75%, 11/15/23

    950        1,064,750   

William Floyd Union Free School District, (AGC), 4.00%, 12/15/24

    1,590        1,752,577   
                 
    $ 19,670,385   
                 

Insured – Hospital — 3.3%

  

New York Dormitory Authority, (Hudson Valley Hospital Center), (AGM), (BHAC), 5.00%, 8/15/36

  $ 4,355      $ 4,731,925   

New York Dormitory Authority, (Maimonides Medical Center), (NPFG), 5.00%, 8/1/33

    2,525        2,681,929   
                 
    $ 7,413,854   
                 

Insured – Housing — 1.1%

  

New York Housing Development Corp., (FGIC), (NPFG), 5.00%, 7/1/25

  $ 2,350      $ 2,545,309   
                 
    $ 2,545,309   
                 

Insured – Other Revenue — 6.2%

  

New York City Cultural Resource Trust, (American Museum of Natural History), (NPFG), 5.00%, 7/1/44

  $ 2,055      $ 2,144,680   

New York City Industrial Development Agency, (Yankee Stadium), (NPFG), 4.75%, 3/1/46

    6,930        7,055,502   

New York City Transitional Finance Authority, (BHAC), 5.50%, 7/15/38

    4,050        4,688,564   
                 
    $ 13,888,746   
                 
 

 

  16   See Notes to Financial Statements.


Eaton Vance

New York Municipal Bond Fund

March 31, 2013

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Solid Waste — 2.1%

  

Ulster County, Resource Recovery Agency, Solid Waste System, (AMBAC), 0.00%, 3/1/21

  $ 1,490      $ 1,265,233   

Ulster County, Resource Recovery Agency, Solid Waste System, (AMBAC), 0.00%, 3/1/23

    1,090        848,467   

Ulster County, Resource Recovery Agency, Solid Waste System, (AMBAC), 0.00%, 3/1/25

    3,635        2,590,810   
                 
    $ 4,704,510   
                 

Insured – Special Tax Revenue — 6.1%

  

New York State Housing Finance Agency, (AGM), 5.00%, 3/15/37

  $ 2,415      $ 2,653,143   

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

    2,175        2,739,847   

Puerto Rico Infrastructure Financing Authority, (AMBAC), 0.00%, 7/1/36

    3,000        693,570   

Puerto Rico Infrastructure Financing Authority, (FGIC), 0.00%, 7/1/32

    4,000        1,229,600   

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

    6,705        1,016,478   

Sales Tax Asset Receivables Corp., (AMBAC), 5.00%, 10/15/29

    850        904,783   

Sales Tax Asset Receivables Corp., (AMBAC), 5.00%, 10/15/32

    4,185        4,446,688   
                 
    $ 13,684,109   
                 

Insured – Transportation — 8.4%

  

Port Authority of New York and New Jersey, (AGM), 5.00%, 8/15/24(1)

  $ 5,600      $ 6,534,356   

Port Authority of New York and New Jersey, (AGM), 5.00%, 8/15/33(1)

    11,000        12,452,770   
                 
    $ 18,987,126   
                 

Insured – Water and Sewer — 2.9%

  

Nassau County Sewer and Storm Water Finance Authority, (BHAC), 5.125%, 11/1/23

  $ 300      $ 357,813   

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

    3,835        4,503,785   

Suffolk County Water Authority, (NPFG), 4.50%, 6/1/25

    1,475        1,536,965   
                 
    $ 6,398,563   
                 

Other Revenue — 6.5%

  

Battery Park City Authority, 5.00%, 11/1/34

  $ 5,225      $ 6,168,635   

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

    4,900        2,211,762   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Other Revenue (continued)

  

New York Liberty Development Corp., (7 World Trade Center), 5.00%, 9/15/40

  $ 5,500      $ 6,195,365   
                 
    $ 14,575,762   
                 

Special Tax Revenue — 15.3%

  

Metropolitan Transportation Authority Dedicated Tax Fund, 5.00%, 11/15/31(1)

  $ 10,000      $ 11,711,900   

New York City Transitional Finance Authority, Future Tax Revenue, 5.00%, 2/1/35(1)

    10,000        11,279,900   

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

    1,000        1,183,100   

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

    6,500        7,579,195   

New York Thruway Authority, Miscellaneous Tax Revenue, 5.00%, 4/1/26

    2,370        2,734,411   
                 
    $ 34,488,506   
                 

Transportation — 11.5%

  

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

  $ 3,430      $ 3,853,262   

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

    1,565        1,720,451   

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

    300        330,216   

New York Bridge Authority, 5.00%, 1/1/26

    450        539,352   

New York Thruway Authority, 5.00%, 1/1/37

    7,380        8,199,623   

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

    10,000        11,346,800   
                 
    $ 25,989,704   
                 

Water and Sewer — 5.4%

  

Albany Municipal Water Finance Authority, 5.00%, 12/1/26

  $ 755      $ 885,034   

Albany Municipal Water Finance Authority, 5.00%, 12/1/29

    500        576,480   

New York City Municipal Water Finance Authority, (Water and Sewer System), 5.00%, 6/15/34

    1,000        1,145,620   

New York City Municipal Water Finance Authority, (Water and Sewer System), 5.00%, 6/15/44(1)

    8,750        9,610,650   
                 
    $ 12,217,784   
                 

Total Tax-Exempt Investments — 161.3%
(identified cost $333,303,952)

   

  $ 363,356,834   
                 

Other Assets, Less Liabilities — (61.3)%

  

  $ (138,047,071
                 

Net Assets — 100.0%

  

  $ 225,309,763   
   

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

 

 

 

  17   See Notes to Financial Statements.


Eaton Vance

New York Municipal Bond Fund

March 31, 2013

 

Portfolio of Investments (Unaudited) — continued

 

 

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

The Fund invests primarily in debt securities issued by New York municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2013, 40.7% 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 0.9% to 13.5% of total investments.

 

(1) 

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

 

(2) 

Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $433,100.

 

 

  18   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2013

 

Statements of Assets and Liabilities (Unaudited)

 

 

    March 31, 2013  
Assets   Municipal Fund     California Fund     New York Fund  

Investments —

     

Identified cost

  $ 1,426,171,525      $ 444,276,809      $ 333,303,952   

Unrealized appreciation

    122,609,322        34,232,605        30,052,882   

Investments, at value

  $ 1,548,780,847      $ 478,509,414      $ 363,356,834   

Cash

  $ 1,158,048      $ 2,067,276      $   

Restricted cash*

    1,236,000        875,000        240,000   

Interest receivable

    18,821,625        5,676,172        4,517,545   

Receivable for investments sold

    5,104,160                 

Receivable for variation margin on open financial futures contracts

    32,625        46,313        7,031   

Deferred debt issuance costs

    772,598        210,891        61,600   

Total assets

  $ 1,575,905,903      $ 487,385,066      $ 368,183,010   
Liabilities   

Payable for floating rate notes issued

  $ 616,185,000      $ 192,275,000      $ 141,750,000   

Payable for investments purchased

    9,939,586                 

Payable for when-issued securities

           13,242,480          

Due to custodian

                  573,448   

Payable to affiliates:

     

Investment adviser fee

    865,238        262,482        203,836   

Interest expense and fees payable

    1,384,639        445,939        269,926   

Accrued expenses

    145,934        80,519        76,037   

Total liabilities

  $ 628,520,397      $ 206,306,420      $ 142,873,247   

Net Assets

  $ 947,385,506      $ 281,078,646      $ 225,309,763   
Sources of Net Assets   

Common shares, $0.01 par value, unlimited number of shares authorized

  $ 681,683      $ 217,562      $ 158,966   

Additional paid-in capital

    958,234,857        306,726,139        223,972,505   

Accumulated net realized loss

    (133,508,160     (60,310,872     (29,463,216

Accumulated undistributed (distributions in excess of) net investment income

    (385,002     842,756        641,901   

Net unrealized appreciation

    122,362,128        33,603,061        29,999,607   

Net Assets

  $ 947,385,506      $ 281,078,646      $ 225,309,763   
Common Shares Outstanding     68,168,250        21,756,186        15,896,585   
Net Asset Value   

Net assets ÷ common shares issued and outstanding

  $ 13.90      $ 12.92      $ 14.17   

 

* Represents restricted cash on deposit at the broker for open financial futures contracts.

 

  19   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2013

 

Statements of Operations (Unaudited)

 

 

    Six Months Ended March 31, 2013  
Investment Income   Municipal Fund     California Fund     New York Fund  

Interest

  $ 33,933,048      $ 9,916,460      $ 7,688,771   

Total investment income

  $ 33,933,048      $ 9,916,460      $ 7,688,771   
Expenses   

Investment adviser fee

  $ 5,129,132      $ 1,549,088      $ 1,196,012   

Trustees’ fees and expenses

    30,874        9,490        7,470   

Custodian fee

    153,649        86,748        77,740   

Transfer and dividend disbursing agent fees

    9,549        9,350        9,269   

Legal and accounting services

    112,918        40,402        39,521   

Printing and postage

    50,991        14,436        12,883   

Interest expense and fees

    2,275,382        651,142        501,639   

Miscellaneous

    40,084        16,759        17,936   

Total expenses

  $ 7,802,579      $ 2,377,415      $ 1,862,470   

Deduct —

     

Reduction of custodian fee

  $ 1,410      $ 785      $ 141   

Total expense reductions

  $ 1,410      $ 785      $ 141   

Net expenses

  $ 7,801,169      $ 2,376,630      $ 1,862,329   

Net investment income

  $ 26,131,879      $ 7,539,830      $ 5,826,442   
Realized and Unrealized Gain (Loss)   

Net realized gain (loss) —

     

Investment transactions

  $ (2,533,089   $ (96,040   $ 591,872   

Extinguishment of debt

    (16,462              

Financial futures contracts

    989,867        920,638        237,342   

Net realized gain (loss)

  $ (1,559,684   $ 824,598      $ 829,214   

Change in unrealized appreciation (depreciation) —

     

Investments

  $ (11,625,526   $ (1,975,573   $ (5,630,733

Financial futures contracts

    (339,651     (548,495     (80,677

Net change in unrealized appreciation (depreciation)

  $ (11,965,177   $ (2,524,068   $ (5,711,410

Net realized and unrealized loss

  $ (13,524,861   $ (1,699,470   $ (4,882,196

Net increase in net assets from operations

  $ 12,607,018      $ 5,840,360      $ 944,246   

 

  20   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2013

 

Statements of Changes in Net Assets

 

 

    Six Months Ended March 31, 2013 (Unaudited)  
Increase (Decrease) in Net Assets   Municipal Fund     California Fund     New York Fund  

From operations —

     

Net investment income

  $ 26,131,879      $ 7,539,830      $ 5,826,442   

Net realized gain (loss) from investment transactions, extinguishment of debt and financial futures contracts

    (1,559,684     824,598        829,214   

Net change in unrealized appreciation (depreciation) from investments and financial futures contracts

    (11,965,177     (2,524,068     (5,711,410

Net increase in net assets from operations

  $ 12,607,018      $ 5,840,360      $ 944,246   

Distributions to common shareholders —

     

From net investment income

  $ (26,105,149   $ (7,114,273   $ (5,467,655

Total distributions to common shareholders

  $ (26,105,149   $ (7,114,273   $ (5,467,655

Capital share transactions —

     

Reinvestment of distributions to common shareholders

  $ 356,129      $      $ 40,685   

Net increase in net assets from capital share transactions

  $ 356,129      $      $ 40,685   

Net decrease in net assets

  $ (13,142,002   $ (1,273,913   $ (4,482,724
Net Assets   

At beginning of period

  $ 960,527,508      $ 282,352,559      $ 229,792,487   

At end of period

  $ 947,385,506      $ 281,078,646      $ 225,309,763   
Accumulated undistributed (distributions in excess of) net investment income
included in net assets
   

At end of period

  $ (385,002   $ 842,756      $ 641,901   

 

  21   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2013

 

Statements of Changes in Net Assets — continued

 

 

    Year Ended September 30, 2012  
Increase (Decrease) in Net Assets   Municipal Fund     California Fund     New York Fund  

From operations —

     

Net investment income

  $ 51,959,034      $ 14,986,278      $ 11,564,459   

Net realized gain (loss) from investment transactions, extinguishment of debt, financial futures contracts and swap contracts

    (3,852,430     (5,900,537     2,773,656   

Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts

    111,234,773        33,765,761        17,979,700   

Net increase in net assets from operations

  $ 159,341,377      $ 42,851,502      $ 32,317,815   

Distributions to common shareholders —

     

From net investment income

  $ (54,964,947   $ (15,903,902   $ (11,840,617

Total distributions to common shareholders

  $ (54,964,947   $ (15,903,902   $ (11,840,617

Capital share transactions —

     

Reinvestment of distributions to common shareholders

  $ 446,577      $ 110,639      $ 312,111   

Net increase in net assets from capital share transactions

  $ 446,577      $ 110,639      $ 312,111   

Net increase in net assets

  $ 104,823,007      $ 27,058,239      $ 20,789,309   
Net Assets   

At beginning of year

  $ 855,704,501      $ 255,294,320      $ 209,003,178   

At end of year

  $ 960,527,508      $ 282,352,559      $ 229,792,487   
Accumulated undistributed (distributions in excess of) net investment income
included in net assets
   

At end of year

  $ (411,732   $ 417,199      $ 283,114   

 

  22   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2013

 

Statements of Cash Flows (Unaudited)

 

 

    Six Months Ended March 31, 2013  
Cash Flows From Operating Activities   Municipal Fund     California Fund     New York Fund  

Net increase in net assets from operations

  $ 12,607,018      $ 5,840,360      $ 944,246   

Adjustments to reconcile net increase in net assets from operations to net cash provided by (used in) operating activities:

     

Investments purchased

    (35,142,225     (25,805,947     (31,290,910

Investments sold

    37,825,708        19,049,899        19,003,841   

Net amortization/accretion of premium (discount)

    (2,199,528     (380,189     (37,657

Amortization of deferred debt issuance costs

    59,911        10,367        10,565   

Decrease (increase) in interest receivable

    63,990        (146,544     (341,791

Decrease (increase) in receivable for variation margin on open financial futures contracts

    8,750        (18,938     2,344   

Decrease in receivable from the transfer agent

    93,779               20,736   

Increase in payable to affiliate for investment adviser fee

    57,837        40,372        31,610   

Increase (decrease) in interest expense and fees payable

    37,843        (692     48,339   

Decrease in accrued expenses

    (69,988     (66,846     (57,842

Net change in unrealized (appreciation) depreciation from investments

    11,625,526        1,975,573        5,630,733   

Net realized (gain) loss from investments

    2,533,089        96,040        (591,872

Net realized loss on extinguishment of debt

    16,462                 

Net cash provided by (used in) operating activities

  $ 27,518,172      $ 593,455      $ (6,627,658
Cash Flows From Financing Activities   

Distributions paid to common shareholders, net of reinvestments

  $ (25,749,020   $ (7,114,273   $ (5,426,970

Proceeds from secured borrowings

    8,000,000        11,000,000        21,460,000   

Repayment of secured borrowings

    (5,145,000            (9,745,000

Increase (decrease) in due to custodian

    (3,466,104     (2,411,906     339,628   

Net cash provided by (used in) financing activities

  $ (26,360,124   $ 1,473,821      $ 6,627,658   

Net increase in cash

  $ 1,158,048      $ 2,067,276      $   

Cash at beginning of period

  $      $      $   

Cash at end of period

  $ 1,158,048      $ 2,067,276      $   
Supplemental disclosure of cash flow information:   

Noncash financing activities not included herein consist of:

     

Reinvestment of dividends and distributions

  $ 356,129      $      $ 40,685   

Cash paid for interest and fees

    2,177,628        641,467        442,735   

 

  23   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2013

 

Financial Highlights

 

 

    Municipal Fund  
    Six Months Ended
March 31, 2013
(Unaudited)
    Year Ended September 30,  
      2012     2011     2010     2009     2008  

Net asset value — Beginning of period (Common shares)

  $ 14.100      $ 12.560      $ 13.080      $ 13.170      $ 11.080      $ 15.100   
Income (Loss) From Operations                                                

Net investment income(1)

  $ 0.383      $ 0.763      $ 0.878      $ 0.878      $ 0.846      $ 0.959   

Net realized and unrealized gain (loss)

    (0.200     1.584        (0.482     (0.059     2.051        (3.797

Distributions to preferred shareholders

           

From net investment income

                                       (0.171

From net realized gain

                                       (0.051

Total income (loss) from operations

  $ 0.183      $ 2.347      $ 0.396      $ 0.819      $ 2.897      $ (3.060
Less Distributions to Common Shareholders                                                

From net investment income

  $ (0.383   $ (0.807   $ (0.916   $ (0.909   $ (0.807   $ (0.773

From net realized gain

                                       (0.187

Total distributions to common shareholders

  $ (0.383   $ (0.807   $ (0.916   $ (0.909   $ (0.807   $ (0.960

Net asset value — End of period (Common shares)

  $ 13.900      $ 14.100      $ 12.560      $ 13.080      $ 13.170      $ 11.080   

Market value — End of period (Common shares)

  $ 13.750      $ 14.460      $ 12.350      $ 13.900      $ 13.160      $ 11.140   

Total Investment Return on Net Asset Value(2)

    1.29 %(3)      19.33     3.89     6.77     28.15     (21.24 )% 

Total Investment Return on Market Value(2)

    (2.30 )%(3)      24.45     (3.87 )%      13.55     27.36     (21.90 )% 
Ratios/Supplemental Data                                                

Net assets applicable to common shares, end of period (000’s omitted)

  $ 947,386      $ 960,528      $ 855,705      $ 889,539      $ 893,391      $ 719,392   

Ratios (as a percentage of average daily net assets applicable to common shares):(4)

           

Expenses excluding interest and fees

    1.15 %(5)      1.30     1.25     1.12     1.04     0.89

Interest and fee expense(6)

    0.47 %(5)      0.48     0.56     0.54     1.33     0.59

Total expenses before custodian fee reduction

    1.62 %(5)      1.78     1.81     1.66     2.37     1.48

Expenses after custodian fee reduction excluding interest and fees

    1.15 %(5)      1.30     1.25     1.12     1.04     0.86

Net investment income

    5.41 %(5)      5.75     7.54     7.04     7.94     6.94

Portfolio Turnover

    3 %(3)      17     18     18     19     54

 

(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. Distributions are assumed to be reinvested at prices obtained under the Fund’s dividend reinvestment plan.

 

(3) 

Not annualized.

 

(4) 

Ratios do not reflect the effect of dividend payments to preferred shareholders.

 

(5) 

Annualized.

 

(6) 

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).

 

  24   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2013

 

Financial Highlights — continued

 

 

    California Fund  
    Six Months Ended
March 31, 2013
(Unaudited)
    Year Ended September 30,  
      2012     2011     2010     2009     2008  

Net asset value — Beginning of period (Common shares)

  $ 12.980      $ 11.740      $ 12.610      $ 12.940      $ 11.310      $ 15.000   
Income (Loss) From Operations                                                

Net investment income(1)

  $ 0.347      $ 0.689      $ 0.801      $ 0.847      $ 0.827      $ 0.930   

Net realized and unrealized gain (loss)

    (0.080     1.282        (0.822     (0.331     1.570        (3.418

Distributions to preferred shareholders

           

From net investment income

                                       (0.153

From net realized gain

                                       (0.094

Total income (loss) from operations

  $ 0.267      $ 1.971      $ (0.021   $ 0.516      $ 2.397      $ (2.735
Less Distributions to Common Shareholders                                                

From net investment income

  $ (0.327   $ (0.731   $ (0.849   $ (0.846   $ (0.767   $ (0.724

From net realized gain

                                       (0.231

Total distributions to common shareholders

  $ (0.327   $ (0.731   $ (0.849   $ (0.846   $ (0.767   $ (0.955

Net asset value — End of period (Common shares)

  $ 12.920      $ 12.980      $ 11.740      $ 12.610      $ 12.940      $ 11.310   

Market value — End of period (Common shares)

  $ 12.230      $ 12.650      $ 12.270      $ 13.300      $ 12.970      $ 11.090   

Total Investment Return on Net Asset Value(2)

    2.16 %(3)      17.34     0.48     4.53     22.99     (19.08 )% 

Total Investment Return on Market Value(2)

    (0.77 )%(3)      9.42     (0.43 )%      10.00     25.72     (19.15 )% 
Ratios/Supplemental Data                                                

Net assets applicable to common shares, end of period (000’s omitted)

  $ 281,079      $ 282,353      $ 255,294      $ 273,914      $ 280,743      $ 245,011   

Ratios (as a percentage of average daily net assets applicable to common shares):(4)

           

Expenses excluding interest and fees

    1.21 %(5)      1.25     1.42     1.16     1.06     0.95

Interest and fee expense(6)

    0.46 %(5)      0.48     0.57     0.56     1.28     0.51

Total expenses before custodian fee reduction

    1.67 %(5)      1.73     1.99     1.72     2.34     1.46

Expenses after custodian fee reduction excluding interest and fees

    1.21 %(5)      1.25     1.42     1.16     1.04     0.92

Net investment income

    5.30 %(5)      5.57     7.20     7.01     7.64     6.74

Portfolio Turnover

    3 %(3)      27     21     11     8     39

 

(1) 

Computed using average common shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Fund’s dividend reinvestment plan.

 

(3) 

Not annualized.

 

(4) 

Ratios do not reflect the effect of dividend payments to preferred shareholders.

 

(5) 

Annualized.

 

(6) 

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).

 

  25   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2013

 

Financial Highlights — continued

 

 

    New York Fund  
    Six Months Ended
March 31, 2013
(Unaudited)
    Year Ended September 30,  
      2012     2011     2010     2009     2008  

Net asset value — Beginning of period (Common shares)

  $ 14.460      $ 13.170      $ 13.610      $ 13.640      $ 11.650      $ 14.800   
Income (Loss) From Operations                                                

Net investment income(1)

  $ 0.367      $ 0.728      $ 0.797      $ 0.831      $ 0.790      $ 0.923   

Net realized and unrealized gain (loss)

    (0.313     1.308        (0.412     (0.041     1.934        (3.152

Distributions to preferred shareholders

           

From net investment income

                                       (0.215

Total income (loss) from operations

  $ 0.054      $ 2.036      $ 0.385      $ 0.790      $ 2.724      $ (2.444
Less Distributions to Common Shareholders                                                

From net investment income

  $ (0.344   $ (0.746   $ (0.825   $ (0.820   $ (0.734   $ (0.706

Total distributions to common shareholders

  $ (0.344   $ (0.746   $ (0.825   $ (0.820   $ (0.734   $ (0.706

Net asset value — End of period (Common shares)

  $ 14.170      $ 14.460      $ 13.170      $ 13.610      $ 13.640      $ 11.650   

Market value — End of period (Common shares)

  $ 14.010      $ 14.660      $ 13.450      $ 14.010      $ 14.120      $ 10.980   

Total Investment Return on Net Asset Value(2)

    0.36 %(3)      15.87     3.37     6.16     24.78     (17.07 )% 

Total Investment Return on Market Value(2)

    (2.13 )%(3)      15.03     2.56     5.56     37.06     (20.22 )% 
Ratios/Supplemental Data                                                

Net assets applicable to common shares, end of period (000’s omitted)

  $ 225,310      $ 229,792      $ 209,003      $ 215,453      $ 215,303      $ 183,643   

Ratios (as a percentage of average daily net assets applicable to common shares):(4)

           

Expenses excluding interest and fees

    1.18 %(5)      1.22     1.39     1.12     1.04     0.99

Interest and fee expense(6)

    0.44 %(5)      0.43     0.52     0.55     1.34     0.55

Total expenses before custodian fee reduction

    1.62 %(5)      1.65     1.91     1.67     2.38     1.54

Expenses after custodian fee reduction excluding interest and fees

    1.18 %(5)      1.22     1.39     1.12     1.03     0.95

Net investment income

    5.06 %(5)      5.29     6.37     6.30     6.83     6.63

Portfolio Turnover

    5 %(3)      17     29     11     21     48

 

(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. Distributions are assumed to be reinvested at prices obtained under the Fund’s dividend reinvestment plan.

 

(3) 

Not annualized.

 

(4) 

Ratios do not reflect the effect of dividend payments to preferred shareholders.

 

(5) 

Annualized.

 

(6) 

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).

 

  26   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2013

 

Notes to Financial Statements (Unaudited)

 

 

1  Significant Accounting Policies

Eaton Vance Municipal Bond Fund, Eaton Vance California Municipal Bond Fund and Eaton Vance New York Municipal Bond Fund, (each individually referred to as the Fund, and collectively, the Funds), are Massachusetts business trusts registered under the Investment Company Act of 1940, as amended (the 1940 Act), as non-diversified, closed-end management investment companies. The Funds seek to provide current income exempt from regular federal income tax, including alternative minimum tax, and, in state specific funds, taxes in its specified state.

The following is a summary of significant accounting policies of the Funds. The policies are in conformity with accounting principles generally accepted in the United States of America.

A  Investment Valuation — Debt obligations (including short-term obligations with a remaining maturity of more than sixty days) are generally valued on the basis of valuations provided by third party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, prices or yields of securities with similar characteristics, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Short-term obligations purchased with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates market value. Financial futures contracts are valued at the closing settlement price established by the board of trade or exchange on which they are traded. Interest rate swaps are normally valued using valuations provided by a third party pricing service. Such pricing service valuations are based on the present value of fixed and projected floating rate cash flows over the term of the swap contract. Future cash flows are discounted to their present value using swap rates provided by electronic data services or by broker/dealers. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of a Fund in a manner that fairly reflects the security’s value, or the amount that the Fund might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable entities, quotations or relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the entity’s financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.

B  Investment Transactions and Related Income — Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount.

C  Federal Taxes — Each Fund’s policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its taxable, if any, and tax-exempt net investment income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary. Each Fund intends to satisfy conditions which will enable it to designate distributions from the interest income generated by its investments in non-taxable municipal securities, which are exempt from regular federal income tax when received by each Fund, as exempt-interest dividends.

At September 30, 2012, the following Funds, for federal income tax purposes, had capital loss carryforwards and deferred capital losses which will reduce the respective Fund’s taxable income arising from future net realized gains on investment transactions, if any, to the extent permitted by the Internal Revenue Code, and thus will reduce the amount of distributions to shareholders, which would otherwise be necessary to relieve the Funds of any liability for federal income or excise tax. The deferred capital losses are treated as arising on the first day of the Funds’ next taxable year and are treated as realized prior to the utilization of the capital loss carryforward. The amounts and expiration dates of the capital loss carryforwards and the amounts of the deferred capital losses are as follows:

 

Expiration Date   Municipal
Fund
     California
Fund
     New York
Fund
 

September 30, 2013

  $       $       $ 125,998   

September 30, 2015

    31,250                   

September 30, 2016

    6,857,645         533,889           

September 30, 2017

    18,034,628         4,562,453         7,946,914   

September 30, 2018

    56,183,712         23,169,615         8,909,352   

September 30, 2019

    16,458,561         7,665,268         6,463,209   

Total capital loss carryforward

  $ 97,565,796       $ 35,931,225       $ 23,445,473   

Deferred capital losses

  $ 37,911,988       $ 24,178,821       $ 6,316,331   

 

  27  


Eaton Vance

Municipal Bond Funds

March 31, 2013

 

Notes to Financial Statements (Unaudited) — continued

 

 

As of March 31, 2013, the Funds had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each Fund files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.

D  Expense Reduction — State Street Bank and Trust Company (SSBT) serves as custodian of the Funds. Pursuant to the custodian agreement, SSBT receives a fee reduced by credits, which are determined based on the average daily cash balance each Fund maintains with SSBT. All credit balances, if any, used to reduce each Fund’s custodian fees are reported as a reduction of expenses in the Statements of Operations.

E  Legal Fees — Legal fees and other related expenses incurred as part of negotiations of the terms and requirement of capital infusions, or that are expected to result in the restructuring of, or a plan of reorganization for, an investment are recorded as realized losses. Ongoing expenditures to protect or enhance an investment are treated as operating expenses.

F  Use of Estimates — The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.

G  Indemnifications — Under each Fund’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to each Fund. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as a Fund) could be deemed to have personal liability for the obligations of the Fund. However, each Fund’s Declaration of Trust contains an express disclaimer of liability on the part of Fund shareholders and the By-laws provide that the Fund shall assume the defense on behalf of any Fund shareholders. Moreover, the By-laws also provide for indemnification out of Fund property of any shareholder held personally liable solely by reason of being or having been a shareholder for all loss or expense arising from such liability. Additionally, in the normal course of business, each Fund enters into agreements with service providers that may contain indemnification clauses. Each Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against each Fund that have not yet occurred.

H  Floating Rate Notes Issued in Conjunction with Securities Held — The Funds may invest in residual interest bonds, also referred to as inverse floating rate securities, whereby a Fund may sell a variable or fixed rate bond to a broker for cash. At the same time, the Fund buys a residual interest in the assets and cash flows of a Special-Purpose Vehicle (the SPV), (which is generally organized as a trust), set up by the broker. The broker deposits a bond into the SPV with the same CUSIP number as the bond sold to the broker by the Fund, and which may have been, but is not required to be, the bond purchased from the Fund (the Bond). The SPV also issues floating rate notes (Floating Rate Notes) which are sold to third-parties. The residual interest bond held by a Fund gives the Fund the right (1) to cause the holders of the Floating Rate Notes to generally tender their notes at par, and (2) to have the broker transfer the Bond held by the SPV to the Fund, thereby terminating the SPV. Should the Fund exercise such right, it would generally pay the broker the par amount due on the Floating Rate Notes and exchange the residual interest bond for the underlying Bond. Pursuant to generally accepted accounting principles for transfers and servicing of financial assets and extinguishment of liabilities, the Funds account for the transaction described above as a secured borrowing by including the Bond in their Portfolio of Investments and the Floating Rate Notes as a liability under the caption “Payable for floating rate notes issued” in their Statement of Assets and Liabilities. The Floating Rate Notes have interest rates that generally reset weekly and their holders have the option to tender their notes to the broker for redemption at par at each reset date. Accordingly, the fair value of the payable for floating rate notes issued approximates its carrying value. If measured at fair value, the payable for floating rate notes would have been considered as Level 2 in the fair value hierarchy (see Note 9) at March 31, 2013. Interest expense related to the Funds’ liability with respect to Floating Rate Notes is recorded as incurred. The SPV may be terminated by the Fund, as noted above, or by the broker upon the occurrence of certain termination events as defined in the trust agreement, such as a downgrade in the credit quality of the underlying Bond, bankruptcy of or payment failure by the issuer of the underlying Bond, the inability to remarket Floating Rate Notes that have been tendered due to insufficient buyers in the market, or the failure by the SPV to obtain renewal of the liquidity agreement under which liquidity support is provided for the Floating Rate Notes up to one year. Structuring fees paid to the liquidity provider upon the creation of an SPV have been recorded as debt issuance costs and are being amortized as interest expense to the expected maturity of the related trust. Unamortized structuring fees related to a terminated SPV are recorded as a realized loss on extinguishment of debt. At March 31, 2013, the amounts of the Funds’ Floating Rate Notes and related interest rates and collateral were as follows:

 

     Municipal
Fund
     California
Fund
     New York
Fund
 

Floating Rate Notes Outstanding

  $ 616,185,000       $ 192,275,000       $ 141,750,000   

Interest Rate or Range of Interest Rates (%)

    0.12 - 0.57         0.12 - 0.22         0.12 - 0.16   

Collateral for Floating Rate Notes Outstanding

  $ 740,829,976       $ 234,117,526       $ 177,295,635   

 

  28  


Eaton Vance

Municipal Bond Funds

March 31, 2013

 

Notes to Financial Statements (Unaudited) — continued

 

 

For the six months ended March 31, 2013, the Funds’ average Floating Rate Notes outstanding and the average interest rate (annualized) including fees and amortization of deferred debt issuance costs were as follows:

 

 

     Municipal
Fund
     California
Fund
     New York
Fund
 

Average Floating Rate Notes Outstanding

  $ 614,051,429       $ 190,791,484       $ 141,390,330   

Average Interest Rate

    0.74      0.68      0.71

The Funds may enter into shortfall and forbearance agreements with the broker by which a Fund agrees to reimburse the broker, in certain circumstances, for the difference between the liquidation value of the Bond held by the SPV and the liquidation value of the Floating Rate Notes, as well as any shortfalls in interest cash flows. The Funds had no shortfalls as of March 31, 2013.

The Funds may also purchase residual interest bonds from brokers in a secondary market transaction without first owning the underlying bond. Such transactions are not required to be treated as secured borrowings. Shortfall agreements, if any, related to residual interest bonds purchased in a secondary market transaction are disclosed in the Portfolio of Investments.

The Funds’ investment policies and restrictions expressly permit investments in residual interest bonds. Such bonds typically offer the potential for yields exceeding the yields available on fixed rate bonds with comparable credit quality and maturity. These securities tend to underperform the market for fixed rate bonds in a rising long-term interest rate environment, but tend to outperform the market for fixed rate bonds when long-term interest rates decline. The value and income of residual interest bonds are generally more volatile than that of a fixed rate bond. The Funds’ investment policies do not allow the Funds to borrow money except as permitted by the 1940 Act. Management believes that the Funds’ restrictions on borrowing money and issuing senior securities (other than as specifically permitted) do not apply to Floating Rate Notes issued by the SPV and included as a liability in the Funds’ Statement of Assets and Liabilities. As secured indebtedness issued by an SPV, Floating Rate Notes are distinct from the borrowings and senior securities to which the Funds’ restrictions apply. Residual interest bonds held by the Funds are securities exempt from registration under Rule 144A of the Securities Act of 1933.

I  Financial Futures Contracts — Upon entering into a financial futures contract, a Fund is required to deposit with the broker, either in cash or securities, an amount equal to a certain percentage of the purchase price (initial margin). Subsequent payments, known as variation margin, are made or received by the Fund each business day, depending on the daily fluctuations in the value of the underlying security, and are recorded as unrealized gains or losses by the Fund. Gains (losses) are realized upon the expiration or closing of the financial futures contracts. Should market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. Futures contracts have minimal counterparty risk as they are exchange traded and the clearinghouse for the exchange is substituted as the counterparty, guaranteeing counterparty performance.

J  Interest Rate Swaps — Pursuant to interest rate swap agreements, a Fund makes periodic payments at a fixed interest rate and, in exchange, receives payments based on the interest rate of a benchmark industry index. Payments received or made are recorded as realized gains or losses. During the term of the outstanding swap agreement, changes in the underlying value of the swap are recorded as unrealized gains or losses. The value of the swap is determined by changes in the relationship between two rates of interest. A Fund is exposed to credit loss in the event of non-performance by the swap counterparty. Risk may also arise from movements in interest rates.

K  When-Issued Securities and Delayed Delivery Transactions — The Funds may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. At the time the transaction is negotiated, the price of the security that will be delivered is fixed. The Funds maintain security positions for these commitments such that sufficient liquid assets will be available to make payments upon settlement. Securities purchased on a delayed delivery or when-issued basis are marked-to-market daily and begin earning interest on settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

L  Statement of Cash Flows — The cash amount shown in the Statement of Cash Flows of a Fund is the amount included in the Fund’s Statement of Assets and Liabilities and represents the cash on hand at its custodian and does not include any short-term investments.

M  Interim Financial Statements — The interim financial statements relating to March 31, 2013 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Funds’ management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.

2  Distributions to Shareholders

Each Fund intends to make monthly distributions of net investment income to common shareholders. In addition, at least annually, each Fund intends to distribute all or substantially all of its net realized capital gains (reduced by available capital loss carryforwards from prior years, if any). Distributions are recorded on the ex-dividend date.

 

  29  


Eaton Vance

Municipal Bond Funds

March 31, 2013

 

Notes to Financial Statements (Unaudited) — continued

 

 

The Funds distinguish between distributions on a tax basis and a financial reporting basis. Accounting principles generally accepted in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.

3  Investment Adviser Fee and Other Transactions with Affiliates

The investment adviser fee is earned by Eaton Vance Management (EVM) as compensation for investment advisory services rendered to each Fund. The fee is computed at an annual rate of 0.65% of each Fund’s average weekly gross assets and is payable monthly. Average weekly gross assets include the principal amount of any indebtedness for money borrowed, including debt securities issued by a Fund. Pursuant to a fee reduction agreement with EVM, average weekly gross assets are calculated by adding to net assets the amount payable by the Fund to floating rate note holders, such adjustment being limited to the value of the Auction Preferred Shares (APS) outstanding prior to any APS redemptions by the Fund. EVM also serves as the administrator of each Fund, but receives no compensation. For the six months ended March 31, 2013, the investment adviser fees were as follows:

 

     Municipal
Fund
     California
Fund
     New York
Fund
 

Investment Adviser Fee

  $ 5,129,132       $ 1,549,088       $ 1,196,012   

Pursuant to fee reduction agreements between EVM and each of the Municipal Fund and California Fund effective May 1, 2013, EVM has agreed to reduce its advisory fee rate by 0.025% per annum commencing May 1, 2013 and by another 0.025% per annum commencing May 1, 2014. The fee reductions cannot be terminated without the consent of a majority of Trustees and a majority of shareholders.

Trustees and officers of the Funds who are members of EVM’s organization receive remuneration for their services to the Funds out of the investment adviser fee. Trustees of the Funds who are not affiliated with the investment adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the six months ended March 31, 2013, no significant amounts have been deferred. Certain officers and Trustees of the Funds are officers of EVM.

4  Purchases and Sales of Investments

Purchases and sales of investments, other than short-term obligations, for the six months ended March 31, 2013 were as follows:

 

     Municipal
Fund
     California
Fund
     New York
Fund
 

Purchases

  $ 45,081,811       $ 31,756,115       $ 31,290,910   

Sales

  $ 42,853,427       $ 13,549,899       $ 19,003,841   

5  Common Shares of Beneficial Interest

Common shares issued pursuant to the Funds’ dividend reinvestment plan for the six months ended March 31, 2013 and the year ended September 30, 2012 were as follows:

 

     Municipal
Fund
     California
Fund
     New York
Fund
 

Six Months Ended March 31, 2013 (Unaudited)

    24,971                 2,812   

Year Ended September 30, 2012

    33,515         9,232         22,680   

 

  30  


Eaton Vance

Municipal Bond Funds

March 31, 2013

 

Notes to Financial Statements (Unaudited) — continued

 

 

6  Federal Income Tax Basis of Investments

The cost and unrealized appreciation (depreciation) of investments of each Fund at March 31, 2013, as determined on a federal income tax basis, were as follows:

 

     Municipal
Fund
     California Fund      New York
Fund
 

Aggregate cost

  $ 808,038,023       $ 248,491,421       $ 192,246,327   

Gross unrealized appreciation

  $ 145,620,091       $ 39,738,604       $ 31,337,866   

Gross unrealized depreciation

    (21,062,267      (1,995,611      (1,977,359

Net unrealized appreciation

  $ 124,557,824       $ 37,742,993       $ 29,360,507   

7  Overdraft Advances

Pursuant to the custodian agreement, SSBT may, in its discretion, advance funds to the Funds to make properly authorized payments. When such payments result in an overdraft, the Funds are obligated to repay SSBT at the current rate of interest charged by SSBT for secured loans (currently, the Federal Funds rate plus 2%). This obligation is payable on demand to SSBT. SSBT has a lien on a Fund’s assets to the extent of any overdraft. At March 31, 2013, the New York Fund had payments due to SSBT pursuant to the foregoing arrangement of $573,448. Based on the short-term nature of these payments and the variable interest rate, the carrying value of the overdraft advances approximated its fair value at March 31, 2013. If measured at fair value, overdraft advances would have been considered as Level 2 in the fair value hierarchy (see Note 9) at March 31, 2013. The Funds’ average overdraft advances during the six months ended March 31, 2013 were not significant.

8  Financial Instruments

The Funds may trade in financial instruments with off-balance sheet risk in the normal course of their investing activities. These financial instruments may include financial futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment a Fund has in particular classes of financial instruments and do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered.

A summary of obligations under these financial instruments at March 31, 2013 is as follows:

 

Futures Contracts  
Fund   Expiration
Month/Year
     Contracts    Position    Aggregate
Cost
     Value      Net
Unrealized
Depreciation
 
Municipal     6/13      

348

U.S. 30-Year Treasury Bond

   Short    $ (50,027,931    $ (50,275,125    $ (247,194
California     6/13      

200

U.S. 10-Year Treasury Note

   Short    $ (26,148,072    $ (26,396,875    $ (248,803
      6/13      

194

U.S. 30-Year Treasury Bond

   Short      (27,646,197      (28,026,938      (380,741
New York     6/13      

75

U.S. 30-Year Treasury Bond

   Short    $ (10,781,882    $ (10,835,157    $ (53,275

At March 31, 2013, the Funds had sufficient cash and/or securities to cover commitments under these contracts.

Each Fund is subject to interest rate risk in the normal course of pursuing its investment objective. Because the Funds hold fixed-rate bonds, the value of these bonds may decrease if interest rates rise. The Funds purchase and sell U.S. Treasury futures contracts to hedge against changes in interest rates.

 

  31  


Eaton Vance

Municipal Bond Funds

March 31, 2013

 

Notes to Financial Statements (Unaudited) — continued

 

 

The fair values of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) and whose primary underlying risk exposure is interest rate risk at March 31, 2013 were as follows:

 

     Municipal
Fund
     California
Fund
     New York
Fund
 

Liability Derivative:

       

Futures Contracts

  $ (247,194 )(1)     $ (629,544 )(1)     $ (53,275 )(1) 

Total

  $ (247,194    $ (629,544    $ (53,275

 

(1) 

Amount represents cumulative unrealized depreciation on futures contracts in the Futures Contracts table above. Only the current day’s variation margin on open futures contracts is reported within the Statement of Assets and Liabilities as Receivable or Payable for variation margin, as applicable.

The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations and whose primary underlying risk exposure is interest rate risk for the six months ended March 31, 2013 was as follows:

 

     Municipal
Fund
     California
Fund
     New York
Fund
 

Realized Gain (Loss) on Derivatives Recognized in Income

  $ 989,867 (1)     $ 920,638 (1)     $ 237,342 (1) 

Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income

  $ (339,651 )(2)     $ (548,495 )(2)     $ (80,677 )(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 amounts of futures contracts outstanding during the six months ended March 31, 2013, which are indicative of the volume of this derivative type, were approximately as follows:

 

     Municipal
Fund
     California
Fund
     New York
Fund
 

Average Notional Amount:

       

Futures Contracts

  $ 34,343,000       $ 39,400,000       $ 7,500,000   

9  Fair Value Measurements

Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

 

Ÿ  

Level 1 – quoted prices in active markets for identical investments

 

Ÿ  

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

Ÿ  

Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)

In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

  32  


Eaton Vance

Municipal Bond Funds

March 31, 2013

 

Notes to Financial Statements (Unaudited) — continued

 

 

At March 31, 2013, the hierarchy of inputs used in valuing the Funds’ investments and open derivative instruments, which are carried at value, were as follows:

 

Municipal Fund

                          
Asset Description   Level 1      Level 2      Level 3*      Total  

Tax-Exempt Municipal Securities

  $       $ 1,548,572,707       $       $ 1,548,572,707   

Corporate Bonds & Notes

                    208,140         208,140   

Total Investments

  $       $ 1,548,572,707       $ 208,140       $ 1,548,780,847   

Liability Description

                                  

Futures Contracts

  $ (247,194    $       $       $ (247,194

Total

  $ (247,194    $       $       $ (247,194
          

California Fund

                          
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $       $ 478,509,414       $       $ 478,509,414   

Total Investments

  $       $ 478,509,414       $       $ 478,509,414   

Liability Description

                                  

Futures Contracts

  $ (629,544    $       $       $ (629,544

Total

  $ (629,544    $       $       $ (629,544
          

New York Fund

                          
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $       $ 363,356,834       $       $ 363,356,834   

Total Investments

  $       $ 363,356,834       $       $ 363,356,834   

Liability Description

                                  

Futures Contracts

  $ (53,275    $       $       $ (53,275

Total

  $ (53,275    $       $       $ (53,275

 

* None of the unobservable inputs for Level 3 assets, individually or collectively, had a material impact on the Fund.

California Fund and New York Fund held no investments or other financial instruments as of September 30, 2012 whose fair value was determined using Level 3 inputs. Level 3 investments held by Municipal Fund at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the six months ended March 31, 2013 is not presented.

At March 31, 2013, there were no investments transferred between Level 1 and Level 2 during the six months then ended.

 

  33  


Eaton Vance

Municipal Bond Funds

March 31, 2013

 

Officers and Trustees

 

 

Officers of Eaton Vance Municipal Bond Funds

 

 

Cynthia J. Clemson

President of EVM and ENX

Thomas M. Metzold

President of EIM

Payson F. Swaffield

Vice President

Maureen A. Gemma

Vice President, Secretary and Chief Legal Officer

James F. Kirchner

Treasurer

Paul M. O’Neil

Chief Compliance Officer

 

 

 

 

Trustees of Eaton Vance Municipal Bond Funds

 

 

Ralph F. Verni

Chairman

Scott E. Eston

Benjamin C. Esty

Thomas E. Faust Jr.*

Allen R. Freedman

William H. Park

Ronald A. Pearlman

Helen Frame Peters

Lynn A. Stout

Harriett Tee Taggart

 

 

* Interested Trustee

 

 

Number of Employees

Each Fund is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a closed-end management investment company and has no employees.

Number of Shareholders

As of March 31, 2013, Fund records indicate that there are 194, 31 and 47 registered shareholders for Municipal Bond Fund, California Municipal Bond Fund and New York Municipal Bond Fund, respectively, and approximately 23,016, 5,555 and 4,940 shareholders owning the Fund shares in street name, such as through brokers, banks and financial intermediaries for Municipal Bond Fund, California Municipal Bond Fund and New York Municipal Bond Fund, respectively.

If you are a street name shareholder and wish to receive Fund reports directly, which contain important information about a Fund, please write or call:

Eaton Vance Distributors, Inc.

Two International Place

Boston, MA 02110

1-800-262-1122

NYSE MKT symbols

 

Municipal Bond Fund    EIM
California Municipal Bond Fund    EVM
New York Municipal Bond Fund    ENX

 

  34  


Eaton Vance Funds

 

IMPORTANT NOTICES

 

 

Privacy.  The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy (“Privacy Policy”) with respect to nonpublic personal information about its customers:

 

Ÿ  

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.

 

Ÿ  

None of such information about you (or former customers) will be disclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to service your account). In the normal course of servicing a customer’s account, Eaton Vance may share information with unaffiliated third parties that perform various required services such as transfer agents, custodians and broker-dealers.

 

Ÿ  

Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information.

 

Ÿ  

We reserve the right to change our Privacy Policy at any time upon proper notification to you. Customers may want to review our Privacy Policy periodically for changes by accessing the link on our homepage: www.eatonvance.com.

Our pledge of privacy applies to the following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance Investment Counsel, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management’s Real Estate Investment Group and Boston Management and Research. In addition, our Privacy Policy applies only to those Eaton Vance customers who are individuals and who have a direct relationship with us. If a customer’s account (i.e., fund shares) is held in the name of a third-party financial advisor/broker-dealer, it is likely that only such advisor’s privacy policies apply to the customer. This notice supersedes all previously issued privacy disclosures. For more information about Eaton Vance’s Privacy Policy, please call 1-800-262-1122.

Delivery of Shareholder Documents.  The Securities and Exchange Commission (SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called “householding” and it helps eliminate duplicate mailings to shareholders. Eaton Vance, or your financial advisor, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial advisor, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial advisor. Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial advisor.

Portfolio Holdings.  Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) will file a schedule of portfolio holdings on Form N-Q with the SEC for the first and third quarters of each fiscal year. The Form N-Q will be available on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SEC’s website at www.sec.gov. Form N-Q may also be reviewed and copied at the SEC’s public reference room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the public reference room).

Proxy Voting.  From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds’ and Portfolios’ Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge, upon request, by calling 1-800-262-1122 and by accessing the SEC’s website at www.sec.gov.

Additional Notice to Shareholders.  A Fund also may purchase shares of its common stock in the open market when they trade at a discount to net asset value or at other times if the Fund determines such purchases are advisable. There can be no assurance that a Fund will take such action or that such purchases would reduce the discount. If applicable, a Fund may also 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.

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”.

 

  35  


 

 

This Page Intentionally Left Blank


Investment Adviser and Administrator

Eaton Vance Management

Two International Place

Boston, MA 02110

Custodian

State Street Bank and Trust Company

200 Clarendon Street

Boston, MA 02116

 

Transfer Agent

American Stock Transfer & Trust Company

59 Maiden Lane

Plaza Level

New York, NY 10038

Fund Offices

Two International Place

Boston, MA 02110

 


LOGO

 

1453-5/13  

CE-IMBSRC


Item 2. Code of Ethics

Not required in this filing.

Item 3. Audit Committee Financial Expert

The registrant’s Board has designated William H. Park, an independent trustee, as its audit committee financial expert. Mr. Park is a certified public accountant who is a consultant and private investor. Previously, he served as the Chief Financial Officer of Aveon Group, L.P. (an investment management firm), as the Vice Chairman of Commercial Industrial Finance Corp. (specialty finance company), as President and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm), as Executive Vice President and Chief Financial Officer of United Asset Management Corporation (an institutional investment management firm) and as a Senior Manager at Price Waterhouse (now PricewaterhouseCoopers) (an independent registered public accounting firm).

Item 4. Principal Accountant Fees and Services

Not required in this filing.

Item 5. Audit Committee of Listed Registrants

Not required in this filing.

Item 6. Schedule of Investments

Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the “Fund Policy”), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund’s investment adviser and adopted the investment adviser’s proxy voting policies and procedures (the “Policies”) which are described below. The Trustees will review the Fund’s proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board’s Special Committee except as contemplated under the Fund Policy. The Board’s Special Committee will instruct the investment adviser on the appropriate course of action.

The Policies are designed to promote accountability of a company’s management to its shareholders and to align the interests of management with those shareholders. An independent proxy voting service (“Agent”), currently Institutional Shareholder Services, Inc., has been retained to assist in the voting of proxies through the provision of vote analysis, implementation and recordkeeping and disclosure services. The investment adviser will generally vote proxies through the Agent. The Agent is required to vote all proxies and/or refer them back to the investment adviser pursuant to the Policies. It is generally the policy of the investment adviser to vote in accordance with the recommendation of the Agent. The Agent shall refer to the investment adviser proxies relating to mergers and restructurings,


and the disposition of assets, termination, liquidation and mergers contained in mutual fund proxies. The investment adviser will normally vote against anti-takeover measures and other proposals designed to limit the ability of shareholders to act on possible transactions, except in the case of closed-end management investment companies. The investment adviser generally supports management on social and environmental proposals. The investment adviser may abstain from voting from time to time where it determines that the costs associated with voting a proxy outweighs the benefits derived from exercising the right to vote or the economic effect on shareholders interests or the value of the portfolio holding is indeterminable or insignificant.

In addition, the investment adviser will monitor situations that may result in a conflict of interest between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund by maintaining a list of significant existing and prospective corporate clients. The investment adviser’s personnel responsible for reviewing and voting proxies on behalf of the Fund will report any proxy received or expected to be received from a company included on that list to the personnel of the investment adviser identified in the Policies. If such personnel expects to instruct the Agent to vote such proxies in a manner inconsistent with the guidelines of the Policies or the recommendation of the Agent, the personnel will consult with members of senior management of the investment adviser to determine if a material conflict of interests exists. If it is determined that a material conflict does exist, the investment adviser will seek instruction on how to vote from the Special Committee.

Information on how the Fund voted proxies relating to portfolio securities during the most recent 12 month period ended June 30 is available (1) without charge, upon request, by calling 1-800-262-1122, and (2) on the Securities and Exchange Commission’s website at http://www.sec.gov.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not required in this filing.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

No such purchases this period.

Item 10. Submission of Matters to a Vote of Security Holders

No Material Changes.

Item 11. Controls and Procedures

(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There have been no changes in the registrant’s internal controls over financial reporting during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.


Item 12. Exhibits

 

(a)(1)    Registrant’s Code of Ethics – Not applicable (please see Item 2).
(a)(2)(i)    Treasurer’s Section 302 certification.
(a)(2)(ii)    President’s Section 302 certification.
(b)    Combined Section 906 certification.


Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Eaton Vance California Municipal Bond Fund

 

By:  

/s/ Cynthia J. Clemson

  Cynthia J. Clemson
  President
Date:   May 9, 2013

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/ James F. Kirchner

  James F. Kirchner
  Treasurer
Date:   May 9, 2013
By:  

/s/ Cynthia J. Clemson

  Cynthia J. Clemson
  President
Date:   May 9, 2013