UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number

 

811-09147

Eaton Vance Massachusetts Municipal Income Trust

(Exact Name of Registrant as Specified in Charter)

The Eaton Vance Building,
255 State Street, Boston, Massachusetts

 

02109

(Address of Principal Executive Offices)

 

(Zip code)

Alan R. Dynner, Esq.
Eaton Vance Management, 255 State Street, Boston, Massachusetts 02109

(Name and Address of Agent for Services)

Registrant’s Telephone Number, Including Area Code:

 

(617) 482-8260

Date of Fiscal Year End:

 

November 30

Date of Reporting Period:

 

August 31, 2006

 

 



Item 1. Schedule of Investments



Eaton Vance Massachusetts Municipal Income Trust                                                                as of August 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 149.5%

Principal

 

 

 

 

 

Amount

 

 

 

 

 

(000’s omitted)

 

Security

 

Value

 

Education — 26.5%

 

 

 

$

500

 

Massachusetts Development Finance Agency, (Belmont Hill School), 5.00%, 9/1/31

 

$

516,785

 

2,585

 

Massachusetts Development Finance Agency, (Boston University), 5.45%, 5/15/59

 

2,845,439

 

500

 

Massachusetts Development Finance Agency, (Massachusetts College of Pharmacy), 5.75%, 7/1/33

 

532,350

 

600

 

Massachusetts Development Finance Agency, (Middlesex School), 5.00%, 9/1/33

 

619,116

 

500

 

Massachusetts Development Finance Agency, (Mount Holyoke College), 5.25%, 7/1/31

 

522,500

 

1,500

 

Massachusetts Development Finance Agency, (Wheeler School), 6.50%, 12/1/29

 

1,588,380

 

1,000

 

Massachusetts Development Finance Agency, (Xaverian Brothers High School), 5.65%, 7/1/29

 

1,033,730

 

1,000

 

Massachusetts Health and Educational Facilities Authority, (Boston College), 5.125%, 6/1/33

 

1,044,130

 

265

 

Massachusetts Health and Educational Facilities Authority, (Williams College), 4.50%, 7/1/33

 

265,927

 

1,215

 

Massachusetts Health and Higher Educational Facilities Authority, (Massachusetts Institute of Technology), 5.25%, 7/1/33

 

1,413,701

 

500

 

Massachusetts Industrial Finance Agency, (Babson College), 5.25%, 10/1/27

 

512,615

 

400

 

Massachusetts Industrial Finance Agency, (Belmont Hill School), 5.25%, 9/1/28

 

409,296

 

 

 

 

 

$

11,303,969

 

Electric Utilities — 5.1%

 

 

 

1,000

 

Massachusetts Development Finance Agency, (Devens Electric System), 6.00%, 12/1/30

 

1,083,020

 

1,065

 

Massachusetts Development Finance Agency, (Dominion Energy Brayton Point), (AMT), 5.00%, 2/1/36

 

1,086,247

 

 

 

 

 

$

2,169,267

 

Escrowed / Prerefunded — 4.7%

 

 

 

400

 

Massachusetts Development Finance Agency, (Western New England College), Prerefunded to 12/1/12, 6.125%, 12/1/32

 

455,828

 

1,000

 

Massachusetts Health and Educational Facilities Authority, (Winchester Hospital), Prerefunded to 7/1/10, 6.75%, 7/1/30

 

1,104,790

 

1,000

 

Rail Connections, Inc., (Route 128 Parking), (ACA), Prerefunded to 7/1/09, 0.00%, 7/1/20

 

453,440

 

 

 

 

 

$

2,014,058

 

1



 

 

 

General Obligations — 0.7%

 

 

 

$

250

 

Massachusetts, 5.25%, 8/1/28

 

$

285,605

 

 

 

 

 

$

285,605

 

Health Care - Miscellaneous — 2.9%

 

 

 

510

 

Massachusetts Development Finance Agency, (MCHSP Human Services), 6.60%, 8/15/29

 

512,866

 

700

 

Massachusetts Health and Educational Facilities Authority, (Learning Center for Deaf Children), 6.125%, 7/1/29

 

714,126

 

 

 

 

 

$

1,226,992

 

Hospital — 14.0%

 

 

 

1,000

 

Massachusetts Development Finance Agency, (Biomedical Research Corp.), 6.25%, 8/1/20

 

1,096,010

 

1,000

 

Massachusetts Health and Educational Facilities Authority, (Baystate Medical Center), 5.75%, 7/1/33

 

1,058,440

 

400

 

Massachusetts Health and Educational Facilities Authority, (Berkshire Health System), 6.25%, 10/1/31

 

428,732

 

105

 

Massachusetts Health and Educational Facilities Authority, (Central New England Health Systems), 6.30%, 8/1/18

 

105,477

 

1,100

 

Massachusetts Health and Educational Facilities Authority, (Covenant Health), 6.00%, 7/1/31

 

1,189,056

 

2,000

 

Massachusetts Health and Educational Facilities Authority, (South Shore Hospital), 5.75%, 7/1/29

 

2,110,640

 

 

 

 

 

$

5,988,355

 

Housing — 6.3%

 

 

 

650

 

Massachusetts Housing Finance Agency, (AMT), 5.00%, 12/1/28

 

661,290

 

2,000

 

Massachusetts Housing Finance Agency, (AMT), 5.10%, 12/1/37

 

2,044,460

 

 

 

 

 

$

2,705,750

 

Industrial Development Revenue — 1.6%

 

 

 

695

 

Massachusetts Industrial Finance Agency, (American Hingham Water Co.), (AMT), 6.60%, 12/1/15

 

701,060

 

 

 

 

 

$

701,060

 

Insured-Education — 16.8%

 

 

 

1,000

 

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

 

1,195,920

 

1,000

 

Massachusetts Development Finance Agency, (Boston University), (XLCA), 5.375%, 5/15/39

 

1,149,010

 

455

 

Massachusetts Development Finance Agency, (College of the Holy Cross), (AMBAC), Variable Rate, 8.44%, 9/1/32 (2)(3)

 

674,492

 

1,600

 

Massachusetts Development Finance Agency, (Franklin W. Olin College), (XLCA), 5.25%, 7/1/33

 

1,687,616

 

850

 

Massachusetts Health and Educational Facilities Authority, (Berklee College of Music), (MBIA), Variable Rate, 6.53%, 10/1/27 (2)(4)

 

903,252

 

2



 

 

 

$

1,000

 

Massachusetts Health and Educational Facilities Authority, (Northeastern University), (MBIA), 5.00%, 10/1/29

 

$

1,029,190

 

500

 

Massachusetts Health and Educational Facilities Authority, (UMass-Worcester Campus), (FGIC), 5.25%, 10/1/31

 

528,710

 

 

 

 

 

$

7,168,190

 

Insured-Electric Utilities — 1.8%

 

 

 

750

 

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

 

792,158

 

 

 

 

 

$

792,158

 

Insured-General Obligations — 7.4%

 

 

 

1,000

 

Massachusetts, (AMBAC), Variable Rate, 9.175%, 8/1/30 (2)(3)

 

1,546,960

 

500

 

Plymouth, (MBIA), 5.25%, 10/15/20

 

533,440

 

900

 

Puerto Rico, (FSA), Variable Rate, 6.32%, 7/1/27 (2)(3)

 

1,061,451

 

 

 

 

 

$

3,141,851

 

Insured-Miscellaneous — 12.9%

 

 

 

2,000

 

Boston Convention Center, (AMBAC), 5.00%, 5/1/27

 

2,070,140

 

2,750

 

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

 

3,415,170

 

 

 

 

 

$

5,485,310

 

Insured-Special Tax Revenue — 6.2%

 

 

 

1,500

 

Martha’s Vineyard Land Bank, (AMBAC), 5.00%, 5/1/32

 

1,558,890

 

680

 

Puerto Rico Infrastructure Financing Authority, (AMBAC), 0.00%, 7/1/28

 

254,089

 

385

 

Puerto Rico Infrastructure Financing Authority, (AMBAC), 0.00%, 7/1/37

 

93,166

 

570

 

Puerto Rico Infrastructure Financing Authority, (FGIC), 0.00%, 7/1/30

 

192,905

 

3,250

 

Puerto Rico Infrastructure Financing Authority, (FGIC), 0.00%, 7/1/45

 

539,728

 

 

 

 

 

$

2,638,778

 

Insured-Transportation — 6.1%

 

 

 

1,020

 

Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), 0.00%, 1/1/29

 

364,589

 

1,100

 

Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), Variable Rate, 6.594%, 1/1/37 (2)(3)

 

1,166,748

 

1,000

 

Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 6.617%, 7/1/28 (2)(3)

 

1,083,490

 

 

 

 

 

$

2,614,827

 

Nursing Home — 2.7%

 

 

 

500

 

Boston Industrial Development Authority, (Alzheimer’s Center), (FHA), 6.00%, 2/1/37

 

514,390

 

600

 

Massachusetts Health and Educational Facilities Authority, (Christopher House), 6.875%, 1/1/29

 

620,508

 

 

 

 

 

$

1,134,898

 

3



 

 

 

Senior Living / Life Care — 3.6%

 

 

 

$

1,500

 

Massachusetts Development Finance Agency, (Berkshire Retirement), 5.625%, 7/1/29

 

$

1,531,635

 

 

 

 

 

$

1,531,635

 

Special Tax Revenue — 8.1%

 

 

 

3,000

 

Massachusetts Bay Transportation Authority, (Sales Tax Revenue), 5.25%, 7/1/34

 

3,467,850

 

 

 

 

 

$

3,467,850

 

Transportation — 5.7%

 

 

 

1,350

 

Massachusetts Bay Transportation Authority, Variable Rate, 6.28%, 3/1/27 (2)(4)

 

1,396,400

 

1,000

 

Puerto Rico Highway and Transportation Authority, 5.00%, 7/1/36

 

1,025,320

 

 

 

 

 

$

2,421,720

 

Water and Sewer — 16.4%

 

 

 

2,000

 

Massachusetts Water Pollution Abatement Trust, 5.00%, 8/1/32

 

2,070,800

 

2,000

 

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

 

2,135,980

 

965

 

Massachusetts Water Pollution Abatement Trust, 5.375%, 8/1/27

 

1,012,748

 

2,000

 

Massachusetts Water Resources Authority, 4.00%, 8/1/46

 

1,766,300

 

 

 

 

 

$

6,985,828

 

Total Tax-Exempt Investments — 149.5%
(identified cost $59,371,336)

 

$

63,778,101

 

Other Assets, Less Liabilities — 0.9%

 

$

379,019

 

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (50.4)%

 

$

(21,505,121

)

Net Assets Applicable to Common Shares — 100.0%

 

$

42,651,999

 

 

ACA

—

ACA Financial Guaranty Corporation

AMBAC

—

AMBAC Financial Group, Inc.

AMT

—

Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.

FGIC

—

Financial Guaranty Insurance Company

FHA

—

Federal Housing Administration

FSA

—

Financial Security Assurance, Inc.

MBIA

—

Municipal Bond Insurance Association

XLCA

—

XL Capital Assurance, Inc.

 

The Trust invests primarily in debt securities issued by Massachusetts municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at August 31, 2006, 34.2% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 2.0% to 16.8% of total investments.

4



 

 

 

(1)

Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

(2)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2006, the aggregate value of the securities is $7,832,793 or 18.4% of the Trust’s net assets applicable to common shares.

(3)

Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at August 31, 2006.

(4)

Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at August 31, 2006.

 

A summary of financial instruments at August 31, 2006 is as follows:

Futures Contracts

Expiration

 

 

 

 

 

Aggregate

 

 

 

Net
Unrealized

 

Date

 

Contracts

 

Position

 

Cost

 

Value

 

Depreciation

 

12/06

 

100 U.S. Treasury Bond

 

 

Short

 

 

$

(11,012,075

)

$

(11,106,250

)

 

$

(94,175

)

 

 

At August 31, 2006, the Trust had sufficient cash and/or securities to cover commitments under these contracts.

The cost and unrealized appreciation (depreciation) in value of the investments owned at August 31, 2006, as computed on a federal income tax basis, were as follows:

Aggregate cost

 

$

59,366,766

 

Gross unrealized appreciation

 

$

4,412,996

 

Gross unrealized depreciation

 

(1,661

)

Net unrealized appreciation

 

$

4,411,335

 

 

5



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.



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 Massachusetts Municipal Income Trust

By:

 

/s/ Robert B. MacIntosh

 

 

Robert B. MacIntosh

 

 

President and Principal Executive Officer

Date:

 

October 23, 2006

 

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/ Robert B. MacIntosh

 

 

Robert B. MacIntosh

 

 

President and Principal Executive Officer

Date:

 

October 23, 2006

By:

 

/s/ Barbara E. Campbell

 

 

Barbara E. Campbell

 

 

Treasurer and Principal Financial Officer

Date:

 

October 23, 2006