UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
811-09153
Investment Company Act File Number
Eaton Vance Michigan Municipal Income Trust
(Exact Name of Registrant as Specified in Charter)
Two International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
Maureen A. Gemma
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
(617) 482-8260
(Registrant’s Telephone Number, Including Area Code)
November 30
Date of Fiscal Year End
August 31, 2017
Date of Reporting Period
Item 1. Schedule of Investments
Eaton Vance
Michigan Municipal Income Trust
August 31, 2017
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments — 155.5%
| Security | Principal Amount (000’s omitted) |
Value | ||||||
| Bond Bank — 2.1% |
||||||||
| Michigan Municipal Bond Authority, Prerefunded to 10/1/19, 5.00%, 10/1/29 |
$ | 600 | $ | 650,850 | ||||
|
|
|
|||||||
| $ | 650,850 | |||||||
|
|
|
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| Education — 6.8% |
||||||||
| Michigan State University, 5.00%, 2/15/40 |
$ | 1,000 | $ | 1,079,720 | ||||
| Oakland University, 5.00%, 3/1/42 |
500 | 553,565 | ||||||
| Wayne State University, 5.00%, 11/15/40 |
370 | 413,601 | ||||||
|
|
|
|||||||
| $ | 2,046,886 | |||||||
|
|
|
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| Electric Utilities — 8.9% |
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| Holland, Electric Utility System, 5.00%, 7/1/39 |
$ | 1,135 | $ | 1,281,301 | ||||
| Lansing Board of Water and Light, 5.50%, 7/1/41 |
500 | 571,515 | ||||||
| Michigan Public Power Agency, 5.00%, 1/1/43 |
800 | 849,808 | ||||||
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|
|
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| $ | 2,702,624 | |||||||
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|
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| Escrowed/Prerefunded — 4.8% |
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| Ann Arbor Public Schools, Prerefunded to 5/1/18, 4.50%, 5/1/24 |
$ | 350 | $ | 358,701 | ||||
| Guam, Limited Obligation Bonds, Prerefunded to 12/1/19, 5.625%, 12/1/29 |
115 | 127,069 | ||||||
| Guam, Limited Obligation Bonds, Prerefunded to 12/1/19, 5.75%, 12/1/34 |
125 | 138,466 | ||||||
| Michigan, Prerefunded to 5/1/19, 5.50%, 11/1/25 |
270 | 290,763 | ||||||
| Michigan Hospital Finance Authority, (MidMichigan Obligated Group), Prerefunded to 6/1/19, 6.125%, 6/1/39 |
500 | 545,695 | ||||||
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|
|
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| $ | 1,460,694 | |||||||
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|
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| General Obligations — 45.3% |
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| Battle Creek, 5.00%, 12/1/41 |
$ | 1,000 | $ | 1,156,960 | ||||
| Byron Center Public Schools, 5.00%, 5/1/43 |
1,500 | 1,733,715 | ||||||
| Comstock Park Public Schools, 5.125%, 5/1/31 |
275 | 310,750 | ||||||
| Comstock Park Public Schools, 5.25%, 5/1/33 |
220 | 247,896 | ||||||
| East Grand Rapids Public Schools, 5.00%, 5/1/39 |
435 | 495,082 | ||||||
| Jenison Public Schools, 5.00%, 5/1/28 |
500 | 561,060 | ||||||
| Jenison Public Schools, 5.00%, 5/1/30 |
500 | 564,305 | ||||||
| Kent County, 5.00%, 1/1/25 |
1,500 | 1,580,895 | ||||||
| Kent County, (AMT), 5.00%, 1/1/28 |
1,000 | 1,119,180 | ||||||
| Lakeview School District, 5.00%, 5/1/40 |
1,050 | 1,199,709 | ||||||
| Lansing Community College, 5.00%, 5/1/30 |
1,005 | 1,140,756 | ||||||
| Marysville Public Schools District, 5.00%, 5/1/37 |
1,065 | 1,227,327 | ||||||
| Rockford Public Schools, 5.00%, 5/1/44 |
750 | 852,660 | ||||||
| Walled Lake Consolidated School District, 5.00%, 5/1/34 |
365 | 419,086 | ||||||
| Watervliet Public Schools, 5.00%, 5/1/38 |
1,000 | 1,139,430 | ||||||
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|
|
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| $ | 13,748,811 | |||||||
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|
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1
| Security | Principal Amount (000’s omitted) |
Value | ||||||
| Hospital — 21.9% |
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| Grand Traverse County Hospital Finance Authority, (Munson Healthcare), 5.00%, 7/1/47 |
$ | 1,000 | $ | 1,103,200 | ||||
| Michigan Finance Authority, (Henry Ford Health System), 5.00%, 11/15/41 |
1,000 | 1,129,730 | ||||||
| Michigan Finance Authority, (McLaren Health Care), 5.00%, 6/1/35 |
250 | 274,410 | ||||||
| Michigan Finance Authority, (Oakwood Obligated Group), 5.00%, 11/1/32 |
500 | 555,860 | ||||||
| Michigan Finance Authority, (Trinity Health Corp.), 5.00%, 12/1/27 |
990 | 1,089,960 | ||||||
| Michigan Finance Authority, (Trinity Health Corp.), Prerefunded to 12/1/20, 5.00%, 12/1/27 |
10 | 11,287 | ||||||
| Royal Oak Hospital Finance Authority, (William Beaumont Hospital), 5.00%, 9/1/39 |
1,250 | 1,394,300 | ||||||
| Saginaw Hospital Finance Authority, (Covenant Medical Center, Inc.), 5.00%, 7/1/30 |
1,000 | 1,079,200 | ||||||
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|
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| $ | 6,637,947 | |||||||
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|
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| Industrial Development Revenue — 2.5% |
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| Detroit Local Development Finance Authority, (Chrysler Corp.), 5.375%, 5/1/21 |
$ | 750 | $ | 747,773 | ||||
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|
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| $ | 747,773 | |||||||
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|
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| Insured-Education — 0.6% |
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| Wayne State University, (AGM), 5.00%, 11/15/35 |
$ | 165 | $ | 172,334 | ||||
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| $ | 172,334 | |||||||
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|
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| Insured-Electric Utilities — 3.6% |
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| Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/29 |
$ | 630 | $ | 667,006 | ||||
| Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/32 |
250 | 265,103 | ||||||
| Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/34 |
155 | 164,458 | ||||||
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|
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| $ | 1,096,567 | |||||||
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|
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| Insured-Escrowed/Prerefunded — 11.9% |
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| Ferris State University, (AGC), Prerefunded to 10/1/18, 5.125%, 10/1/33 |
$ | 570 | $ | 596,596 | ||||
| Ferris State University, (AGC), Prerefunded to 10/1/18, 5.25%, 10/1/38 |
500 | 524,005 | ||||||
| Grand Rapids, Water Supply System, (AGC), Prerefunded to 1/1/19, 5.10%, 1/1/39 |
1,000 | 1,056,490 | ||||||
| Van Dyke Public Schools, (AGM), Prerefunded to 5/1/18, 5.00%, 5/1/38 |
1,250 | 1,285,225 | ||||||
| Wayne State University, (AGM), Prerefunded to 11/15/18, 5.00%, 11/15/35 |
135 | 141,846 | ||||||
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|
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| $ | 3,604,162 | |||||||
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|
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| Insured-General Obligations — 19.7% |
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| Bay City Brownfield Redevelopment Authority, (BAM), 5.375%, 10/1/38 |
$ | 500 | $ | 569,595 | ||||
| Byron Center Public Schools, (AGM), 3.75%, 5/1/26 |
150 | 156,888 | ||||||
| Byron Center Public Schools, (AGM), 4.00%, 5/1/28 |
240 | 251,484 | ||||||
| Detroit School District, (AGM), 5.25%, 5/1/32 |
300 | 371,928 | ||||||
| Hartland Consolidated Schools, (AGM), 5.25%, 5/1/29 |
1,000 | 1,137,900 | ||||||
| Livonia Public Schools, (AGM), 5.00%, 5/1/43 |
910 | 1,005,659 | ||||||
| South Haven Public Schools, (AGM), 5.00%, 5/1/40 |
500 | 565,455 | ||||||
| South Haven Public Schools, (BAM), 5.00%, 5/1/41 |
1,200 | 1,349,388 | ||||||
| Westland Tax Increment Finance Authority, (BAM), 5.25%, 4/1/34 |
500 | 563,450 | ||||||
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|
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| $ | 5,971,747 | |||||||
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|
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| Insured-Special Tax Revenue — 0.6% |
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| Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 |
$ | 895 | $ | 186,133 | ||||
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|
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| $ | 186,133 | |||||||
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|
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| Insured-Transportation — 3.4% |
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| Wayne County Airport Authority, (AGC), (AMT), 5.375%, 12/1/32 |
$ | 1,000 | $ | 1,044,160 | ||||
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| $ | 1,044,160 | |||||||
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2
| Security | Principal Amount (000’s omitted) |
Value | ||||||
| Insured-Water and Sewer — 5.1% |
||||||||
| Coldwater, Water Supply and Wastewater System Revenue, (AGM), 4.00%, 8/1/41 |
$ | 1,000 | $ | 1,051,300 | ||||
| Puerto Rico Aqueduct and Sewer Authority, (AGC), 5.00%, 7/1/28 |
475 | 484,082 | ||||||
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|
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| $ | 1,535,382 | |||||||
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|
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| Lease Revenue/Certificates of Participation — 3.5% |
||||||||
| Michigan Strategic Fund, (Facility for Rare Isotope Beams), 4.00%, 3/1/30 |
$ | 1,000 | $ | 1,072,210 | ||||
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|
|
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| $ | 1,072,210 | |||||||
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|
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| Special Tax Revenue — 3.7% |
||||||||
| Michigan Trunk Line Fund, 5.00%, 11/15/36 |
$ | 1,000 | $ | 1,132,990 | ||||
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|
|
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| $ | 1,132,990 | |||||||
|
|
|
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| Water and Sewer — 11.1% |
||||||||
| Detroit, Water Supply System, 5.25%, 7/1/41 |
$ | 750 | $ | 815,467 | ||||
| Grand Rapids, Sanitary Sewer System, 5.00%, 1/1/28 |
735 | 927,372 | ||||||
| Michigan Finance Authority, (Detroit Water and Sewerage Department), (AMT), 5.00%, 7/1/44 |
1,250 | 1,338,975 | ||||||
| Port Huron, Water Supply System, 5.25%, 10/1/31 |
250 | 279,435 | ||||||
|
|
|
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| $ | 3,361,249 | |||||||
|
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|
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| Total Tax-Exempt Investments —
155.5% |
$ | 47,172,519 | ||||||
|
|
|
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| Auction Preferred Shares Plus Cumulative Unpaid Dividends — (2.1)% |
$ | (650,024 | ) | |||||
|
|
|
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| Institutional MuniFund Term Preferred Shares, at Liquidation Value (net of unamortized deferred offering costs) — (55.3)% |
$ | (16,764,995 | ) | |||||
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|
|
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| Other Assets, Less Liabilities — 1.9% |
$ | 570,135 | ||||||
|
|
|
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| Net Assets Applicable to Common Shares — 100.0% |
$ | 30,327,635 | ||||||
|
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|
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The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
The Trust invests primarily in debt securities issued by Michigan municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at August 31, 2017, 28.9% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 2.7% to 13.0% of total investments.
Abbreviations:
3
The Trust did not have any open derivative instruments at August 31, 2017.
The cost and unrealized appreciation (depreciation) of investments of the Trust at August 31, 2017, as determined on a federal income tax basis, were as follows:
| Aggregate cost |
$ | 44,060,230 | ||
|
|
|
|||
| Gross unrealized appreciation |
$ | 3,170,387 | ||
| Gross unrealized depreciation |
(58,098 | ) | ||
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|
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| Net unrealized appreciation |
$ | 3,112,289 | ||
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|
Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
| • | Level 1 — quoted prices in active markets for identical investments |
| • | Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
| • | Level 3 — significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments) |
In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
At August 31, 2017, the hierarchy of inputs used in valuing the Trust’s investments, which are carried at value, were as follows:
| Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Tax-Exempt Investments |
$ | — | $ | 47,172,519 | $ | — | $ | 47,172,519 | ||||||||
| Total Investments |
$ | — | $ | 47,172,519 | $ | — | $ | 47,172,519 | ||||||||
The Trust held no investments or other financial instruments as of November 30, 2016 whose fair value was determined using Level 3 inputs. At August 31, 2017, there were no investments transferred between Level 1 and Level 2 during the fiscal year to date then ended.
For information on the Trust’s policy regarding the valuation of investments and other significant accounting policies, please refer to the Trust’s most recent financial statements included in its semiannual or annual report to shareholders.
4
Item 2. 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 on this Form N-Q 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 on this Form N-Q 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 fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrant’s internal control over financial reporting.
Item 3. Exhibits
A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act is attached hereto.
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 Michigan Municipal Income Trust
| By: | /s/ Payson F. Swaffield | |
| Payson F. Swaffield | ||
| President | ||
| Date: | October 24, 2017 | |
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/ Payson F. Swaffield | |
| Payson F. Swaffield | ||
| President | ||
| Date: | October 24, 2017 | |
| By: | /s/ James F. Kirchner | |
| James F. Kirchner | ||
| Treasurer | ||
| Date: | October 24, 2017 | |