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EATON VANCE(R)
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[graphic omitted]
Semiannual Report December 31, 2000
EATON VANCE
SENIOR
INCOME
TRUST
Eaton Vance Senior Income Trust as of December 31, 2000
LETTER TO SHAREHOLDERS
[Photo of James B. Hawkes]
James B. Hawkes
President
Eaton Vance Senior Income Trust had a total return of -4.72% for the six months
ended December 31, 2000. That return was the result of shareholder distributions
of $0.536 per share from net investment income and a decrease in share price
from $9.3125 on June 30, 2000 to $8.375 on December 31, 2000. The Trust again
provided a significant yield advantage in a portfolio of senior, secured
floating-rate loans. Based on the Trust's December monthly dividend of $0.078
per share and a closing share price of $8.375, the Trust's market yield was
11.18% at December 31, 2000.(1)
AN UNCERTAIN ECONOMIC OUTLOOK AND CHANGING MONETARY POLICY CREATED A CHALLENGING
CLIMATE IN 2000...
2000 was characterized by extraordinary volatility in the financial markets amid
increasing signs of weakness in the economy. In addition, the Federal Reserve's
about-face on monetary policy turned the markets on end. Despite relatively low
inflation figures, 3.6% for all of 2000, the Federal Reserve continued its
anti-inflation fight in the first half of the year. However, as the economy
slowed in the second half, the Fed signalled an easier policy.
The Trust's investment universe was affected by the economic uncertainties, as
well as by weaker demand for lower-quality loans. Understandably, the Trust's
performance reflected these changing conditions. However, while the Trust's
total return was somewhat lower than in recent years, its volatility remained
well below that of many other asset classes.
With the volatility that characterized the equity and bond markets, many
risk-conscious investors sought a measure of refuge. By investing at least 80%
of its assets in senior, floating-rate loans, Eaton Vance Senior Income Trust
seeks to provide a high level of current yield, while its shares, trading on the
New York Stock Exchange, provide daily liquidity. Eaton Vance Senior Income
Trust maintained its significant yield advantage over investments with similar
maturities.
MARKET PRICING SHOULD PROVIDE NEW FLEXIBILITY FOR THE LOAN MARKET...
Clearly, 2000 marked an important transition year, as the loan market adjusted
to the application of market pricing. As pioneers in the loan market, we at
Eaton Vance are enthusiastic about this change. While the Trust will continue to
seek high current income from senior floating-rate loans, we believe market
pricing will improve liquidity, add more flexibility and create new
opportunities in this unique asset class. In the pages that follow, co-portfolio
managers Scott Page and Payson Swaffield review the past year and discuss their
thoughts on the loan market.
Sincerely,
/S/ James B. Hawkes
James B. Hawkes
President
February 7, 2001
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TRUST INFORMATION
AS OF DECEMBER 31, 2000
Performance(2)
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Average Annual Total Return (by share price, NYSE)
--------------------------------------------------------------------------------
One year -5.52%
Life of Fund (10/30/98) 0.91
Average Annual Total Return (at net asset value)
--------------------------------------------------------------------------------
One year -2.34%
Life of Fund (10/30/98) 5.04
Ten Largest Holdings(3)
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Tokheim Corp. 1.9%
Western Wireless 1.5
Nextel Communications, Inc. 1.5
Charter Communications Operating, LLC. 1.5
Century Cable Holdings, LLC 1.5
Voicestream PCS Holdings, LLC 1.5
Crown Castle Operating Company 1.5
Huntsman ICI 1.4
Panavision International, L.P. 1.3
Lyondell Petrochemical Company 1.3
(1) The Fund's market yield is calculated by dividing the most recent dividend
per share by the share market price at the end of the period and annualizing
the result. 2 Returns are calculated by determining the percentage change in
net asset value and share price with all distributions reinvested. 3 The ten
largest holdings account for 14.9% of the Trust's investments, determined by
dividing the total market value of the holdings by the total net assets of
the Trust. Holdings are subject to change.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when sold, may be worth more
or less than their original cost.
Eaton Vance Senior Income Trust as of December 31, 2000
MANAGEMENT DISCUSSION
[Photo of Scott H. Page]
Scott H. Page
[Photo of Payson E. Swaffield]
Payson E. Swaffield
An interview with Scott H. Page and Payson F. Swaffield, Co-portfolio Managers
of the senior floating-rate loan portion of Eaton Vance Senior Income Trust.
Q: Scott, what significant events occurred within the loan market in 2000 and
how did they affect the Portfolio?
A: Mr. Page: 2000 was an event-filled period for Eaton Vance Senior Income
Trust. The Trust experienced a 9.375% decline in share price, but that
decline was partially offset by the Trust's dividend. While the Trust's
total return may have disappointed some investors, the Trust remained a
comparatively safe haven during a period in which many equity and fixed
income funds showed higher volatility and often negative returns.
The decline in the loan market was caused by a much tighter and tougher
corporate credit market. Weaker demand for lower quality loans was reflected
in lower market prices.
Q: How did credit market conditions affect the Trust in 2000?
A: Mr. Swaffield: Credit defaults increased in the bank loan market as well as
other credit markets, such as the high yield market. Several factors led to
a higher default rate: a slower economy in the second half of 2000; a lack
of liquidity in some higher-risk markets; and an exodus of capital from "old
economy" companies toward "new economy" companies, followed by a rapid
retreat from these sectors later in the year. Each of these factors
contributed to an overall increase in capital market volatility.
When volatility and uncertainty increase in equity markets, companies'
access to capital is impeded; defaults rise, and risk premiums increase
until the market finds a new equilibrium. This process has been under way
for some time, and was reflected in decreases in market prices of bank loans
held by the Trust, as well as by an increase in yields demanded in the
primary and secondary markets.
--------------------------------------------------------------------------------
Five Largest Sector Weightings(1)
--------------------------------------------------
Telecommunications Wireless 10.1%
Cable Television 8.2%
Manufacturing 6.4%
Real Estate 5.9%
Chemicals 5.6%
Trust Overview(1)
--------------------------------------------------
Total net assets $325 million
Number of borrowers 210
Industries represented 55
Collateral coverage ratio 1.5 to 1
Weighted days-to-interest rate reset 66 days
Average maturity 5.5 Yrs.
Average size per borrowing $1.96 million
(1) The five largest sector weightings account for 36.2% of the Trust's
investments, determined by dividing the total market value of the holdings
by the total net assets of the Fund. Sector Weightings and Trust Overview
are as of 12/31/00 and are subject to change. Sector Weightings and Trust
Overview information refers only to the senior, secured floating-rate loan
portion of the Trust.
--------------------------------------------------------------------------------
Shares of the Trust 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. Yield will
change.
--------------------------------------------------------------------------------
Q: Has the loan market ever faced challenging credit market conditions in the
past?
A: Mr. Page: Yes. In the early 1990s, the credit markets faced even higher
default levels. This period followed the late 1980s, when non-investment
grade companies were generally much more highly leveraged than today. In the
early 1990s, highly leveraged companies faced a recession, the Gulf War, a
severe credit crunch and the savings and loan crisis. We successfully
steered our bank loan portfolios through that difficult period.
Today, the uncertainty is reflected more immediately and perhaps more
severely in loan prices because of the balance of buyers and sellers for
bank loans. In the short-run, that balance may encompass forces other than
the intrinsic value of a holding. However, intrinsic value does tend to
prevail over time, and it is our belief that, in most cases, senior secured
loans have solid intrinsic value, especially when compared to unsecured and
subordinated bonds or equities. Intrinsic value ultimately prevailed in the
difficult markets of the early 1990s, and we believe that it ultimately is
likely to prevail in this market too.
Q: Payson, could you elaborate on market pricing in calculating bank loan
prices?
A: Mr. Swaffield: In the fall of 1999, a pricing service for the secondary
market trading of bank loans emerged under the auspices of the Loan
Syndication and Trading Association (LSTA). In a joint venture with Loan
Pricing Corporation (LPC), a subsidiary of Reuters, LSTA/LPC began the
systematic collection and reporting of indicative secondary market prices
for bank loans. Prior to this service, few standards existed for soliciting
and distributing price information, and those that were available were not
sufficiently reliable to serve as the basis of pricing and transacting bank
loans on a daily basis.
After an intensive evaluation of the new LSTA/LPC service, the Trust began
the use of this independent pricing service for a portion of the Trust.
Throughout 2000, we continued to evaluate the reliability of the service,
comparing its prices with actual transactions in loan interests that we and
other institutional investors conducted. As we grew more comfortable with
its reliability, based on the evaluation of data, we increased our reliance
on the pricing service. Today, over 90% of the Trust is priced using this
service and we expect that percentage to increase.
Q: How can the Trust have losses if the loans are secured by collateral?
A: Mr. Page: Collateral is not a guarantee that a loan will be repaid at par,
nor is it a guarantee that market prices will remain at par. It does,
however, improve the odds that an obligation will be met at par. Nearly all
the Trust's loans are secured, and, generally, they are secured by all the
assets of a company: accounts receivable, inventory, property/plant, and
intangibles. This greatly increases the probability that, in the event of a
reversal of fortune, the company's underlying value will accrue to the
benefit of secured creditors. Security and collateral afford powerful
advantages in a restructuring and, while no guarantee of full recovery, it
normally improves recoveries.
Q: How do changes in interest rates affect the Trust?
A: Mr. Swaffield: The Trust invests in floating-rate instruments. When interest
rates increase, our dividend and yield increase, and vice versa. From June
1999 through May 2000, as the Federal Reserve Bank increased rates on six
occasions, the Trust's total return benefited, as well as our performance
compared to fixed-rate bond instruments, which generally decline in value as
rates rise. In recent years, the Fed has tended to use adjustments in
short-term interest rates as its main tool for implementing monetary policy
changes. That trend has increased the volatility of bonds, making bonds a
less reliable alternative for risk-management. Naturally, changes in
interest rates and yield curves are difficult to predict and can occur
quickly, resulting in bond volatility.
Typically, senior, floating-rate loans do not have volatility arising from
unpredictable changes in interest rates or the slope of the yield curve. We
believe this greatly increases the Trust's attractiveness for risk-aware
investors, especially given a track record of significantly beating
inflation. Because of their floating-rate feature and a low or negative
correlation with most large asset classes, bank loans can be an attractive
means of reducing risk and diversifying a broader portfolio of equity and
fixed-income securities.
Q: How have you positioned the Trust in recent months?
A: Mr. Page: In an uncertain economic outlook, the flexibility of the Trust has
allowed us to shift to sectors that we believe can better withstand a softer
business climate. Now, as always, we have maintained a very diversified
Trust and have, therefore, been able to accomplish the re-positioning of the
Trust with relative ease.
While the Trust's largest industry weighting at December 31 was
telecommunications, we have become increasingly selective within the group.
Our telecom weighting (wireless and wireline) was 12.8%, compared to the DLJ
Leveraged Loan Index weighting of 19.4%. In contrast, the Trust had a 8.2%
weighting in cable television companies, compared to a 6.9% DLJ Leveraged
Loan Index weighting. We view new jurisdictions and revenue sources as major
opportunities for cable providers.
The Trust continued its use of leverage to add incrementally to yield. At
December 31, the Trust had $121 million in leverage. That figure represented
26.9% of the Trust's total assets. Finally, the high-yield bond market had
one of its worst years on record in 2000, as the liquidity crunch was
especially hard on high-yield issuers. In this difficult climate, the Trust
strictly limited its exposure to the high-yield segment.
Q: What are some of the Trust's largest investments?
A: Mr. Swaffield: In the telecom sector, Western provides wireless and cellular
phone services under the Cellular One brand in rural areas, primarily in 19
western states. In addition, Western's international subsidiary has
continued to make inroads in emerging foreign markets, including Bolivia,
Croatia, Haiti and Ghana. Reflecting strong subscriber growth and increased
roaming traffic, the company registered 30% revenue growth in the first nine
months of 2000.
In the cable television sector, Charter Communications is the nation's
fourth largest cable operator, with 6.2 million customers. While continuing
to build subscriber growth in its core cable business, the company has begun
to offer bandwidth services, including high-speed Internet service, and has
indicated plans to add interactive services. Charter saw revenues rise 175%
in the first nine months of 2000, primarily due to its successful
acquisition strategy.
An offshoot of the telecom sector is the tower industry, a provider of
telecom network services. Crown Castle International owns and operates tower
and transmission sites, an important element of the wireless infrastructure.
The surge in telecom services in recent years has resulted in corresponding
growth in site selection. Crown is one of only three nationwide providers
and is also very active in foreign markets. In 2000, the company made major
tower acquisitions in Australia and the U.K., bringing its global tower
count to more than 13,000. Crown generated 93% revenue growth in the first
nine months of the year.
Q: What is your outlook for the loan market in the coming year?
A: Mr. Page: The loan market appears to have already discounted the possibility
of an economic slowdown, as recent prices of economically-sensitive loans
have clearly reflected a softer business climate. While we expect that the
slowdown will continue well into 2001, the risk of an outright recession has
been significantly lessened by the Federal Reserve's more accommodative
monetary policy.
Lenders should receive a two-fold benefit from such a policy: banks will
likely structure loans more conservatively, while lower interest rates
should improve credit quality. Whichever direction the economy takes, we
believe that the Trust is well-positioned for the coming year.
Eaton Vance Senior Income Trust as of December 31, 2000
PORTFOLIO OF INVESTMENTS
Senior, Floating Rate Loan
Interests -- 121%(2)
Principal
Amount Borrower/Tranche Description Value
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Advertising -- 0.6%
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Lamar Media Corp.
$ 2,000,000 Term loan, maturing March 1, 2006 $ 2,008,000
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$ 2,008,000
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Aerospace & Defense -- 2.7%
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Aerostructures Corporation
$ 1,862,500 Term loan, maturing September 30, 2004 $ 1,834,563
Aircraft Braking Systems Corp.
1,045,821 Term loan, maturing September 30, 2005 1,045,167
Dyncorp
769,000 Term loan, maturing December 9, 2006 772,845
EG&G Technical Services, Inc.
958,822 Term loan, maturing August 20, 2007 934,851
Fairchild Holdings Corporation
1,167,529 Term loan, maturing April 30, 2006 1,091,640
Hexcel Corporation
2,116,066 Term loan, maturing August 25, 2005 2,121,357
United Defense Industries, Inc.
466,667 Term loan, maturing October 6, 2005 462,875
466,667 Term loan, maturing October 6, 2006 462,875
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$ 8,726,173
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Air Freight & Couriers -- 0.5%
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Evergreen International Aviation, Inc.
$ 351,425 Term loan, maturing April 30, 2002 $ 334,733
1,303,648 Term loan, maturing April 30, 2003 1,241,725
200,868 Term loan, maturing May 31, 2003 191,327
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$ 1,767,785
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Auto Components -- 3.8%
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Accuride Corporation
$ 1,940,000 Term loan, maturing January 21, 2007 $ 1,823,600
American Axle & Manufacturing, Inc.
1,993,332 Term loan, maturing April 30, 2006 1,984,985
Dayco Products, LLC
1,982,693 Term loan, maturing May 31, 2007 1,938,082
Dura Operating Corp.
1,483,763 Term loan, maturing March 31, 2006 1,450,749
Federal-Mogul Corporation*
2,965,714 Term loan, maturing February 24, 2005* 1,088,841
Insilco Corporation
1,000,000 Term loan, maturing September 6, 2007 1,001,250
Key Plastics, LLC.*
1,721,954 Term loan, maturing March 26, 2005* 706,001
Stanadyne Automotive Corporation
1,459,706 Term loan, maturing December 10, 2004 1,448,758
Tenneco Automotive
426,429 Term loan, maturing December 31, 2007 409,276
426,429 Term loan, maturing December 31, 2008 412,028
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$ 12,263,570
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Broadcast Media -- 3.5%
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CanWest Media, Inc.
$ 1,230,957 Term loan, maturing May 15, 2008 $ 1,230,957
769,043 Term loan, maturing May 15, 2009 769,043
Corus Entertainment
990,000 Term loan, maturing August 31, 2007 994,950
Entravision Communications Corp.
2,500,000 Term loan, maturing December 31, 2008 2,525,000
Lin Television Corp.
2,500,000 Term loan, maturing September 30, 2007 2,496,932
TLMD Acquisition Co.
1,975,000 Term loan, maturing March 31, 2007 1,968,828
Young Broadcasting, Inc.
1,500,000 Term loan, maturing December 31, 2006 1,512,422
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$ 11,498,132
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Building and Development -- 1.0%
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American Skiing Company Resort Properties, Inc.
$ 1,238,214 Term loan, maturing December 31, 2002 $ 1,176,304
Fairfield Communities, Inc.
1,980,000 Term loan, maturing September 30, 2005 1,970,484
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$ 3,146,788
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Cable Television -- 8.2%
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Benchmark Genesis, LLC
$ 1,000,000 Term loan, maturing September 30, 2007 $ 990,000
CC Michigan/ CC New England, LLC
1,000,000 Term loan, maturing June 30, 2008 998,125
Century Cable Holdings, LLC
2,500,000 Term loan, maturing June 30, 2009 2,473,308
2,500,000 Term loan, maturing December 31, 2009 2,478,438
Charter Communications Operating, LLC
5,000,000 Term loan, maturing March 18, 2008 4,973,105
Charter Communications VIII
2,000,000 Term loan, maturing February 2, 2008 1,997,968
Chelsea Communications, Inc.
2,895,305 Term loan, maturing December 31, 2004 2,888,066
Classic Cable, Inc.
868,421 Term loan, maturing October 31, 2007 838,298
Falcon Holding Group, L.P.
1,960,000 Term loan, maturing December 31, 2007 1,945,708
Insight Kentucky Partners I, L.P.
1,704,000 Term loan, maturing April 30, 2008 1,696,545
Mediacom USA, LLC
1,000,000 Revolving loan, maturing September 30, 2008 1,001,125
RCN Corporation
2,000,000 Term loan, maturing June 30, 2007 1,881,500
UCA Corp.
2,500,000 Term loan, maturing May 15, 2007 2,503,125
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$ 26,665,311
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Casinos & Gaming -- 2.1%
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Boyd Gaming Corporation
$ 982,494 Term loan, maturing June 15, 2003 $ 986,178
989,975 Term loan, maturing June 15, 2005 993,687
Horseshoe Gaming Holding Corp.
1,974,000 Term loan, maturing September 30, 2006 1,980,787
Isle of Capri Casinos
1,592,000 Term loan, maturing March 2, 2006 1,601,702
1,393,000 Term loan, maturing March 2, 2007 1,401,489
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$ 6,963,843
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Chemicals -- 5.6%
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Arteva B.V. (Kosa)
$ 2,872,520 Term loan, maturing December 31, 2006 $ 2,887,782
Foamex L.P.
422,603 Term loan, maturing June 30, 2005 411,334
384,186 Term loan, maturing June 30, 2006 373,941
967,541 Term loan, maturing June 30, 2007 941,739
Georgia Gulf Corporation
973,486 Term loan, maturing December 31, 2006 976,284
Huntsman Corporation
3,407,665 Term loan, maturing September 30, 2003 2,765,889
Huntsman ICI Chemicals LLC
2,057,370 Term loan, maturing June 3, 2006 2,045,797
1,225,000 Term loan, maturing June 30, 2007 1,228,758
1,225,000 Term loan, maturing June 30, 2008 1,228,758
Lyondell Petrochemical Company
3,942,431 Term loan, maturing June 30, 2007 4,051,155
Polymer Group, Inc.
1,421,981 Term loan, maturing December 20, 2005 1,374,878
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$ 18,286,315
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Coal -- 0.5%
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P&L Coal Holdings Corporation
$ 1,566,667 Term loan, maturing June 30, 2006 $ 1,566,667
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$ 1,566,667
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Commercial Services -- 4.3%
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Advanstar Communications Inc.
$ 2,000,000 Term loan, maturing November 17, 2007 $ 2,000,626
American Marketing Industries, Inc.
1,336,725 Term loan, maturing November 30, 2002 1,336,171
617,321 Term loan, maturing November 30, 2004 617,321
Coinmach Laundry Corporation
2,913,843 Term loan, maturing June 30, 2005 2,905,650
Environmental Systems Products Hldgs, Inc.
502,812 Term loan, maturing December 31, 2004 502,809
997,213 Term loan, maturing December 31, 2004 997,207
Metokote Corporation
990,000 Term loan, maturing November 2, 2005 991,856
MSX International, Inc.
990,000 Term loan, maturing December 31, 2006 949,854
United Rentals, Inc.
431,250 Term loan, maturing June 30, 2006 415,437
1,418,750 Term loan, maturing June 30, 2007 1,393,803
Volume Services, Inc.
1,950,688 Term loan, maturing December 31, 2002 1,959,222
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$ 14,069,956
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Communications Equipment -- 2.8%
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Amphenol Corporation
$ 1,879,137 Term loan, maturing May 19, 2006 $ 1,871,045
Communications Instruments
974,722 Term loan, maturing March 15, 2004 967,412
General Cable Corporation
1,430,712 Term loan, maturing May 31, 2007 1,397,090
Mitel Corporation
1,499,994 Term loan, maturing December 12, 2003 1,494,369
Superior Telecom, Inc.
1,348,202 Term loan, maturing November 27, 2005 1,251,722
Viasystems, Inc.
996,667 Term loan, maturing March 31, 2007 994,923
1,000,000 Term loan, maturing March 31, 2007 998,250
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$ 8,974,811
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Computer Software & Services -- 0.6%
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Titan Corporation
1,486,256 Term loan, maturing March 31, 2006 $ 1,481,612
Trader.com
298,685 Term loan, maturing December 31, 2006 296,445
201,315 Term loan, maturing December 31, 2007 199,805
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$ 1,977,862
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Computers & Peripherals -- 0.3%
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Seagate Technology Holdings, Inc.
$ 925,000 Term loan, maturing September 30, 2006 $ 923,844
-----------------------------------------------------------------------------
$ 923,844
-----------------------------------------------------------------------------
Construction & Engineering -- 0.3%
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URS Corporation
$ 471,262 Term loan, maturing June 9, 2006 $ 472,440
471,262 Term loan, maturing June 9, 2007 472,440
-----------------------------------------------------------------------------
$ 944,880
-----------------------------------------------------------------------------
Construction Materials -- 1.2%
-----------------------------------------------------------------------------
Formica Corporation
$ 1,487,506 Term loan, maturing April 30, 2006 $ 1,368,506
Trussway Industries, Inc.
937,955 Term loan, maturing December 31, 2006 886,367
U.S. Aggregates, Inc.
1,853,460 Term loan, maturing March 31, 2006 1,807,123
-----------------------------------------------------------------------------
$ 4,061,996
-----------------------------------------------------------------------------
Containers & Packaging - Metal & Glass -- 2.6%
-----------------------------------------------------------------------------
Ball Corporation
$ 2,468,514 Term loan, maturing March 10, 2006 $ 2,473,784
Graham Packaging Company
1,487,588 Term loan, maturing January 31, 2007 1,461,555
Impress Metal Packaging Holdings B.V.
2,500,000 Term loan, maturing December 31, 2006 2,509,375
Silgan Holdings Inc.
1,979,487 Term loan, maturing June 30, 2005 1,949,177
-----------------------------------------------------------------------------
$ 8,393,891
-----------------------------------------------------------------------------
Containers & Packaging - Paper -- 3.0%
-----------------------------------------------------------------------------
ACX Technologies, Inc.
$ 167,500 Term loan, maturing August 15, 2001 $ 151,954
Blue Ridge Paper Products, Inc.
890,757 Term loan, maturing March 31, 2006 890,757
Gaylord Container Corporation
1,533,737 Term loan, maturing June 19, 2004 1,445,547
Impaxx, Inc.
975,000 Term loan, maturing December 31, 2005 973,695
Jefferson Smurfit Corporation
1,513,704 Term loan, maturing March 24, 2006 1,517,068
RIC Holding, Inc.
1,721,938 Term loan, maturing February 28, 2004 1,728,786
Stone Container Corporation
1,999,902 Term loan, maturing October 1, 2003 2,007,785
497,378 Term loan, maturing October 1, 2004 498,854
500,000 Term loan, maturing December 31, 2006 500,402
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$ 9,714,848
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Containers & Packaging - Plastics -- 0.3%
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Tekni-Plex, Inc.
$ 992,506 Term loan, maturing June 30, 2008 $ 975,137
-----------------------------------------------------------------------------
$ 975,137
-----------------------------------------------------------------------------
Educational Services -- 1.9%
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Jostens, Inc.
$ 1,064,444 Term loan, maturing May 31, 2008 $ 1,069,471
Kindercare Learning Centers, Inc.
3,096,541 Term loan, maturing February 13, 2006 3,026,869
Language Line, LLC
987,500 Term loan, maturing March 31, 2006 985,031
Weekly Reader Corporation
987,500 Term loan, maturing September 30, 2007 952,938
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$ 6,034,309
-----------------------------------------------------------------------------
Electronic Equipment & Instruments -- 1.5%
-----------------------------------------------------------------------------
Gentek, Inc.
$ 985,000 Term loan, maturing April 30, 2007 $ 982,538
2,992,500 Term loan, maturing April 30, 2007 2,995,307
Knowles Electronics, Inc.
995,000 Term loan, maturing June 29, 2007 942,763
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$ 4,920,608
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Entertainment -- 3.6%
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Blockbuster Entertainment Corp.
$ 1,808,571 Revolving loan, maturing July 1, 2004 $ 1,704,579
Dreamworks Film Trust
2,000,000 Term loan, maturing December 31, 2006 2,014,376
IIC Holdings, Inc.
1,001,367 Term loan, maturing December 16, 2005 996,152
1,001,367 Term loan, maturing December 15, 2006 996,152
Metro-Goldwyn-Mayer Studios Inc.
3,000,000 Term loan, maturing March 31, 2004 2,978,907
Six Flags Theme Parks Inc.
3,000,000 Term loan, maturing September 30, 2005 3,021,750
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$ 11,711,916
-----------------------------------------------------------------------------
Environmental Services -- 1.6%
-----------------------------------------------------------------------------
Allied Waste Industries, Inc.
$ 750,000 Term loan, maturing July 30, 2005 $ 710,012
795,455 Term loan, maturing July 30, 2006 765,314
954,545 Term loan, maturing July 30, 2007 918,377
International Technology Corporation
990,000 Term loan, maturing June 11, 2004 973,294
Stericycle, Inc.
1,872,750 Term loan, maturing November 10, 2006 1,882,992
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$ 5,249,989
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Food Services -- 0.6%
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Buffets, Inc.
$ 2,000,000 Term loan, maturing March 31, 2007 $ 2,010,000
-----------------------------------------------------------------------------
$ 2,010,000
-----------------------------------------------------------------------------
Food Wholesalers -- 0.7%
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CP Kelco U.S., Inc.
$ 1,687,500 Term loan, maturing March 31, 2008 $ 1,641,516
562,500 Term loan, maturing September 30, 2008 547,172
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$ 2,188,688
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Food, Beverages & Tobacco -- 2.6%
-----------------------------------------------------------------------------
Del Monte Corporation
$ 1,554,005 Term loan, maturing March 31, 2005 $ 1,559,833
Domino's Inc.
516,530 Term loan, maturing December 21, 2006 519,040
517,612 Term loan, maturing December 21, 2007 520,128
Fleming Companies, Inc.
2,872,725 Term loan, maturing July 25, 2004 2,772,180
New World Pasta
851,500 Term loan, maturing January 28, 2006 795,443
Pabst Brewing Company
694,997 Term loan, maturing April 30, 2004 674,147
Sweeteners Holdings, Inc.
1,500,000 Term loan, maturing June 30, 2008 1,488,750
-----------------------------------------------------------------------------
$ 8,329,521
-----------------------------------------------------------------------------
Health Care - Equipment & Supplies -- 2.4%
-----------------------------------------------------------------------------
Charles River Laboratories, Inc.
$ 630,000 Term loan, maturing October 13, 2007 $ 632,363
Conmed Corporation
1,981,250 Term loan, maturing December 31, 2005 1,943,275
Dade Behring Holdings, Inc.
985,000 Term loan, maturing June 30, 2005 682,464
985,000 Term loan, maturing June 30, 2006 682,464
Fisher Scientific International Inc
1,006,911 Term loan, maturing January 21, 2007 1,009,609
1,463,359 Term loan, maturing January 21, 2007 1,467,280
Stryker Corporation
870,908 Term loan, maturing December 10, 2005 875,861
628,961 Term loan, maturing December 10, 2006 632,537
-----------------------------------------------------------------------------
$ 7,925,853
-----------------------------------------------------------------------------
Health Care - Providers & Services -- 3.4%
-----------------------------------------------------------------------------
Community Health Systems, Inc.
$ 2,500,000 Term loan, maturing December 31, 2005 $ 2,485,490
FHC Health Systems, Inc.
943,780 Term loan, maturing April 30, 2005 896,591
943,780 Term loan, maturing April 30, 2006 896,591
Mariner Post-Acute Network (f/k/a Paragon)
2,340,479 Term loan, maturing March 31, 2005* 882,361
2,340,479 Term loan, maturing March 31, 2006* 882,361
Quest Diagnostics, Inc.
988,209 Term loan, maturing August 16, 2005 991,143
947,929 Term loan, maturing August 16, 2006 950,744
Sybron Dental Management
1,000,000 Term loan, maturing November 28, 2007 995,030
1,000,000 Term loan, maturing November 28, 2007 995,030
Team Health
946,667 Term loan, maturing March 12, 2006 944,892
-----------------------------------------------------------------------------
$ 10,920,233
-----------------------------------------------------------------------------
Hotels -- 2.1%
-----------------------------------------------------------------------------
Extended Stay America
$ 990,000 Term loan, maturing December 31, 2005 $ 995,156
Starwood Hotels & Resorts
3,000,000 Term loan, maturing February 23, 2003 3,008,439
Wyndham International, Inc.
1,898,462 Term loan, maturing June 30, 2004 1,892,134
1,000,000 Term loan, maturing June 30, 2006 990,625
-----------------------------------------------------------------------------
$ 6,886,354
-----------------------------------------------------------------------------
Household Furnishings & Appliances -- 2.0%
-----------------------------------------------------------------------------
Sealy Mattress Company
$ 1,119,726 Term loan, maturing December 15, 2004 $ 1,122,058
806,883 Term loan, maturing December 15, 2005 808,984
1,031,254 Term loan, maturing December 15, 2006 1,033,402
Simmons Company
698,783 Term loan, maturing October 30, 2005 700,946
1,574,153 Term loan, maturing October 30, 2006 1,574,350
Sleepmaster, LLC
1,340,248 Term loan, maturing December 31, 2006 1,340,248
-----------------------------------------------------------------------------
$ 6,579,988
-----------------------------------------------------------------------------
Household Products -- 2.5%
-----------------------------------------------------------------------------
Samsonite Corporation
$ 1,979,695 Term loan, maturing June 24, 2006 $ 1,942,576
The Imperial Decor Home Group, Inc.
645,308 Term loan, maturing March 12, 2004* 74,210
747,180 Revolving loan, maturing March 12, 2004* 85,926
1,145,547 Term loan, maturing March 12, 2005* 131,738
447,714 Term loan, maturing March 12, 2006* 51,487
The Scotts Company
3,000,000 Term loan, maturing December 31, 2007 3,017,061
United Industries Corporation
905,852 Term loan, maturing January 20, 2006 866,374
Werner Holding Co.
1,954,660 Term loan, maturing November 30, 2004 1,940,977
-----------------------------------------------------------------------------
$ 8,110,349
-----------------------------------------------------------------------------
Insurance -- 1.5%
-----------------------------------------------------------------------------
Acordia, Inc.
$ 1,882,084 Term loan, maturing December 31, 2004 $ 1,877,379
Willis Corroon Corporation
945,000 Term loan, maturing February 19, 2007 944,557
959,613 Term loan, maturing February 19, 2008 960,813
959,613 Term loan, maturing August 19, 2008 960,813
-----------------------------------------------------------------------------
$ 4,743,562
-----------------------------------------------------------------------------
Leisure Equipment & Products -- 0.3%
-----------------------------------------------------------------------------
Bell Sports, Inc.
$ 1,000,000 Term loan, maturing March 30, 2007 $ 995,000
-----------------------------------------------------------------------------
$ 995,000
-----------------------------------------------------------------------------
Machinery -- 1.5%
-----------------------------------------------------------------------------
Flowserve Corporation
$ 2,500,000 Term loan, maturing June 30, 2008 $ 2,497,395
Thermadyne MFG LLC
1,428,492 Term loan, maturing May 22, 2005 1,258,263
1,428,492 Term loan, maturing May 22, 2006 1,258,263
-----------------------------------------------------------------------------
$ 5,013,921
-----------------------------------------------------------------------------
Manufacturing -- 7.7%
-----------------------------------------------------------------------------
Advanced Glassfiber Yarns LLC
$ 1,550,855 Term loan, maturing September 30, 2005 $ 1,552,309
Alliance Laundry Holdings LLC.
1,995,000 Term loan, maturing September 30, 2005 1,945,125
Citation Corporation
998,810 Term loan, maturing December 1, 2007 980,706
Dayton Superior Corporation
1,625,000 Term loan, maturing September 29, 2005 1,631,094
Mueller Group, Inc.
493,750 Term loan, maturing August 17, 2006 495,756
493,750 Term loan, maturing August 17, 2007 495,833
Neenah Foundry Company
2,891,715 Term loan, maturing September 30, 2005 2,747,129
Panavision International, L.P.
4,727,973 Term loan, maturing March 31, 2005 4,367,465
Panolam Industries, Inc.
975,333 Term loan, maturing December 31, 2006 975,943
Polypore Incorporated
995,000 Term loan, maturing December 31, 2006 996,244
SPX Corporation
1,985,000 Term loan, maturing December 31, 2006 1,991,824
Synthetic Industries, Inc.
1,000,000 Term loan, maturing December 30, 2007 970,000
Tokheim Corporation
205,019 Revolving loan, maturing December 5, 2005 205,019
795,603 Term loan, maturing December 5, 2005 795,603
1,425,980 Term loan, maturing December 5, 2005 1,425,980
1,634,419 Term loan (PIK), maturing December 5, 2005 866,242
2,970,000 Term loan, maturing December 31, 2007 2,843,775
-----------------------------------------------------------------------------
$ 25,286,047
-----------------------------------------------------------------------------
Metals & Mining -- 0.3%
-----------------------------------------------------------------------------
Handy & Harman
$ 975,803 Term loan, maturing July 30, 2006 $ 973,161
-----------------------------------------------------------------------------
$ 973,161
-----------------------------------------------------------------------------
Office Equipment & Supplies -- 1.0%
-----------------------------------------------------------------------------
Buhrmann, Inc.
$ 902,996 Term loan, maturing December 31, 2007 $ 905,184
Iron Mountain, Inc.
1,997,500 Term loan, maturing February 28, 2006 2,014,443
U.S. Office Products
668,204 Term loan, maturing June 9, 2006 425,646
-----------------------------------------------------------------------------
$ 3,345,273
-----------------------------------------------------------------------------
Paper & Forest Products -- 1.2%
-----------------------------------------------------------------------------
Bear Island Paper Company, LLC
$ 1,308,705 Term loan, maturing December 31, 2005 $ 1,262,900
Pacifica Papers, Inc.
2,716,212 Term loan, maturing March 5, 2006 2,733,188
-----------------------------------------------------------------------------
$ 3,996,088
-----------------------------------------------------------------------------
Pharmaceuticals & Biotechnology -- 2.0%
-----------------------------------------------------------------------------
Advance Paradigm, Inc.
$ 1,500,000 Term loan, maturing September 30, 2007 $ 1,506,095
Alliance Imaging, Inc.
559,702 Term loan, maturing December 18, 2004 552,705
690,299 Term loan, maturing December 18, 2005 681,670
Bergen Brunswig Corporation
2,532,534 Term loan, maturing October 19, 2001 2,534,909
Shire Pharmaceuticals
1,000,000 Term loan, maturing December 31, 2005 996,250
-----------------------------------------------------------------------------
$ 6,271,629
-----------------------------------------------------------------------------
Publishing & Printing -- 5.1%
-----------------------------------------------------------------------------
American Media Operations Inc.
$ 1,000,000 Term loan, maturing April 1, 2007 $ 1,004,688
1,000,000 Term loan, maturing April 1, 2007 1,004,688
Liberty Group Operating, Inc.
1,990,000 Term loan, maturing April 30, 2007 1,996,219
Merrill Corporation
990,000 Term loan, maturing November 15, 2007 919,463
Morris Communications Corporation
1,937,775 Term loan, maturing June 30, 2005 1,930,508
Primedia Inc.
2,475,000 Term loan, maturing June 30, 2004 2,470,617
R.H. Donnelley Inc.
1,388,889 Term loan, maturing December 5, 2005 1,378,472
1,111,111 Term loan, maturing December 5, 2006 1,102,778
Reiman Publications
1,847,709 Term loan, maturing November 30, 2005 1,858,873
The Sheridan Group, Inc.
985,424 Term loan, maturing January 30, 2005 985,129
Von Hoffman Press, Inc.
689,376 Term loan, maturing May 30, 2004 680,544
1,245,881 Term loan, maturing May 30, 2005 1,229,919
-----------------------------------------------------------------------------
$ 16,561,898
-----------------------------------------------------------------------------
Real Estate -- 5.9%
-----------------------------------------------------------------------------
622 Third Ave Company LLC
$ 2,000,000 Term loan, maturing May 9, 2003 $ 2,000,000
AIMCO Properties, L.P.
907,550 Term loan, maturing July 31, 2004 909,251
American Tower, L.P.
2,000,000 Term loan, maturing December 31, 2007 2,012,020
Crescent Real Estate Funding VIII
1,467,754 Term loan, maturing May 30, 2008 1,472,340
Crown Castle Operating Company
4,700,000 Term loan, maturing March 31, 2008 4,725,460
HQ Global Workplaces, Inc.
1,498,499 Term loan, maturing December 31, 2005 1,476,021
Lennar Corporation
1,995,000 Term loan, maturing May 2, 2007 2,000,819
Spectrasite Communications, Inc.
1,000,000 Term loan, maturing June 30, 2006 1,002,375
Starwood Walden LLC
3,500,000 Term loan, maturing June 30, 2003 3,447,500
-----------------------------------------------------------------------------
$ 19,045,786
-----------------------------------------------------------------------------
Restaurants -- 0.7%
-----------------------------------------------------------------------------
Applebee's International, Inc.
$ 2,203,289 Term loan, maturing March 31, 2006 $ 2,204,666
-----------------------------------------------------------------------------
$ 2,204,666
-----------------------------------------------------------------------------
Retail - Food & Drug -- 2.4%
-----------------------------------------------------------------------------
Duane Reade Inc.
$ 484,828 Term loan, maturing February 15, 2006 $ 484,980
Pathmark Stores, Inc.
2,497,917 Term loan, maturing July 15, 2007 2,483,554
Rite Aid Funding, LLC
3,000,000 Term loan, maturing August 1, 2002 2,970,000
Shoppers Acquisition Corporation
969,956 Term loan, maturing March 30, 2008 974,069
969,956 Term loan, maturing March 30, 2009 974,069
-----------------------------------------------------------------------------
$ 7,886,672
-----------------------------------------------------------------------------
Retail - Multiline -- 0.8%
-----------------------------------------------------------------------------
Service Merchandise
$ 2,500,000 Term loan, maturing April 14, 2004 $ 2,502,639
-----------------------------------------------------------------------------
$ 2,502,639
-----------------------------------------------------------------------------
Retail - Specialty -- 3.5%
-----------------------------------------------------------------------------
Advanced Stores Company, Inc.
$ 2,000,000 Term loan, maturing April 15, 2006 $ 1,990,000
Nebraska Book Company
2,422,481 Term loan, maturing March 31, 2006 2,410,368
Petro Shopping Centers, L.P.
1,975,000 Term loan, maturing July 31, 2006 1,967,594
Stage Stores, Inc.
2,500,000 Term loan, maturing June 2, 2003 2,494,640
Travelcenters of America, Inc.
2,500,000 Term loan, maturing November 8, 2008 2,516,145
-----------------------------------------------------------------------------
$ 11,378,747
-----------------------------------------------------------------------------
Road & Rail -- 1.4%
-----------------------------------------------------------------------------
Kansas City Southern Industries, Inc.
$ 2,000,000 Term loan, maturing December 29, 2006 $ 2,013,438
MTL
1,629,577 Term loan, maturing August 28, 2005 1,521,618
1,251,801 Term loan, maturing February 28, 2006 1,168,869
-----------------------------------------------------------------------------
$ 4,703,925
-----------------------------------------------------------------------------
Semiconductor Equipment & Products -- 0.5%
-----------------------------------------------------------------------------
Semiconductor Components Industries, LLC
$ 722,222 Term loan, maturing August 4, 2006 $ 724,028
777,778 Term loan, maturing August 4, 2007 779,722
-----------------------------------------------------------------------------
$ 1,503,750
-----------------------------------------------------------------------------
Telecommunications - Wireline -- 2.7%
-----------------------------------------------------------------------------
Alec Holdings, Inc.
$ 750,000 Term loan, maturing November 30, 2006 $ 749,063
750,000 Term loan, maturing November 30, 2007 749,063
Cincinnati Bell, Inc.
3,000,000 Term loan, maturing December 31, 2005 3,007,707
Davel Communications
2,468,750 Term loan, maturing June 23, 2005* 399,115
Globenet Communication Holdings Ltd.
1,000,000 Term loan, maturing September 30, 2005 987,500
MJD Communications
2,969,543 Term loan, maturing March 31, 2006 2,962,119
-----------------------------------------------------------------------------
$ 8,854,567
-----------------------------------------------------------------------------
Telecommunications - Wireless -- 10.1%
-----------------------------------------------------------------------------
American Cellular Corporation
$ 700,000 Term loan, maturing March 31, 2007 $ 700,043
1,800,000 Term loan, maturing March 31, 2008 1,800,000
Centennial Cellular Corp.
1,212,662 Term loan, maturing November 30, 2006 1,214,621
1,212,626 Term loan, maturing November 30, 2007 1,214,900
Cook Inlet/ Voicestream Operating Co. LLC
1,500,000 Term loan, maturing December 31, 2008 1,515,000
Dobson Operating Company
1,980,000 Term loan, maturing December 31, 2007 1,981,443
Microcell Connexions
3,000,000 Term loan, maturing December 30, 2005 3,000,939
Nextel Communications, Inc.
2,000,000 Term loan, maturing June 30, 2008 2,006,518
2,000,000 Term loan, maturing December 30, 2008 2,006,518
1,000,000 Term loan, maturing March 31, 2009 994,574
Rural Cellular Corporation
1,000,000 Term loan, maturing April 6, 2008 997,813
1,000,000 Term loan, maturing April 6, 2009 997,813
Sygnet Operating Company (Dobson)
451,272 Term loan, maturing March 31, 2007 449,056
316,247 Term loan, maturing December 23, 2007 314,765
Tritel Holding Corp.
2,000,000 Term loan, maturing December 31, 2007 2,004,376
Voicestream PCS Holdings, LLC
4,088,889 Term loan, maturing December 31, 2008 4,047,804
900,000 Term loan, maturing June 30, 2009 892,125
Western Wireless
5,000,000 Term loan, maturing September 30, 2008 5,019,195
Winstar Communications, Inc.
2,000,000 Term loan, maturing September 30, 2007 1,888,735
-----------------------------------------------------------------------------
$ 33,046,238
-----------------------------------------------------------------------------
Textiles & Apparel -- 2.1%
-----------------------------------------------------------------------------
Globe Manufacturing Corp
$ 3,880,500 Term loan, maturing July 31, 2006* $ 2,716,350
Joan Fabrics Corporation
1,337,769 Term loan, maturing June 30, 2005 1,303,488
1,999,233 Term loan, maturing June 30, 2006 1,948,003
The William Carter Company
978,723 Term loan, maturing October 31, 2003 979,132
-----------------------------------------------------------------------------
$ 6,946,973
-----------------------------------------------------------------------------
Theaters -- 0.6%
-----------------------------------------------------------------------------
Edwards Megaplex Holdings, LLC
$ 1,000,000 Term loan, maturing August 25, 2006* $ 900,000
Hollywood Theater Holdings, Inc.
985,000 Term loan, maturing March 31, 2006* 945,600
-----------------------------------------------------------------------------
$ 1,845,600
-----------------------------------------------------------------------------
Utilities -- 0.9%
-----------------------------------------------------------------------------
Western Resources Inc.
$ 1,000,000 Term loan, maturing March 17, 2003 $ 1,007,500
2,000,000 Term loan, maturing March 17, 2003 2,015,000
-----------------------------------------------------------------------------
$ 3,022,500
-----------------------------------------------------------------------------
Total Senior, Floating-Rate Loan Interests
(identified cost $409,801,535) $393,926,255
Corporate Bonds & Notes -- 10.2%
Principal
Amount
(000's omitted) Security Value
-----------------------------------------------------------------------------
Apparel -- 0.3%
-----------------------------------------------------------------------------
William Carter Co., Sr. Sub. Notes
$ 1,000 10.375%, 12/1/06 $ 975,000
-----------------------------------------------------------------------------
$ 975,000
-----------------------------------------------------------------------------
Auto and Parts -- 0.1%
-----------------------------------------------------------------------------
J.L. French Automotive Casting
$ 750 11.50%, 6/1/09 $ 408,750
-----------------------------------------------------------------------------
$ 408,750
-----------------------------------------------------------------------------
Broadcasting and Cable -- 1.3%
-----------------------------------------------------------------------------
Golden Sky Systems
$ 1,000 12.375%, 8/1/06 $ 1,020,000
NTL, Inc.
500 11.50%, 10/1/08 443,750
Pegasus Commerce
1,000 9.75%, 12/1/06 935,000
Telewest PLC
1,000 11.25%, 11/1/08 897,500
United Pan Europe Communications, Sr. Notes
500 11.25%, 2/1/10 325,000
United Pan-Europe Communications NV, Sr. Notes
1,000 10.875%, 8/1/09 645,000
-----------------------------------------------------------------------------
$ 4,266,250
-----------------------------------------------------------------------------
Business Services - Miscellaneous -- 0.0%
-----------------------------------------------------------------------------
Richmont Marketing Special, Sr. Sub Notes
1,000 10.125%, 12/15/07 75,000
-----------------------------------------------------------------------------
$ 75,000
-----------------------------------------------------------------------------
Business Services - Rental & Leasing -- 0.3%
-----------------------------------------------------------------------------
Anthony Crane Rentals, Sr. Notes
$ 500 10.375%, 8/1/08 $ 193,125
NationsRent, Inc., Sr. Sub. Notes
1,000 10.375%, 12/15/08 385,000
Neff Corp., Sr. Sub. Notes
750 10.25%, 6/1/08 333,750
-----------------------------------------------------------------------------
$ 911,875
-----------------------------------------------------------------------------
Chemicals -- 0.3%
-----------------------------------------------------------------------------
Georgia Gulf Corp.
$ 1,000 10.375%, 11/1/07 $ 940,000
-----------------------------------------------------------------------------
4 940,000
-----------------------------------------------------------------------------
Communications Services -- 0.3%
-----------------------------------------------------------------------------
Covad Communication Group, Sr. Notes
$ 500 12.00%, 2/15/10 $ 117,500
Exodus Communications, Inc., Sr. Notes
1,000 11.625%, 7/15/10(1) 895,000
-----------------------------------------------------------------------------
$ 1,012,500
-----------------------------------------------------------------------------
Consumer Manufacturing - Non-durable -- 0.1%
-----------------------------------------------------------------------------
Viasystems, Inc., Sr. Sub. Notes
$ 600 9.75%, 6/1/07 $ 478,500
-----------------------------------------------------------------------------
$ 478,500
-----------------------------------------------------------------------------
Consumer Products -- 0.1%
-----------------------------------------------------------------------------
Glenoit Corp., Sr. Sub. Notes*
$ 500 11.00%, 4/15/07 $ 61,875
Polaroid Corp.
750 11.50%, 2/15/06 416,250
-----------------------------------------------------------------------------
$ 478,125
-----------------------------------------------------------------------------
Containers and Packaging -- 0.3%
-----------------------------------------------------------------------------
Consumers International, Inc., Sr. Notes
$ 500 10.25%, 4/1/05 $ 52,500
Stone Container Corp., 1st Mtg. Notes
1,000 10.75%, 10/1/02 1,021,250
-----------------------------------------------------------------------------
$ 1,073,750
-----------------------------------------------------------------------------
Entertainment -- 0.3%
-----------------------------------------------------------------------------
Premier Parks, Inc.
$ 1,000 9.75%, 6/15/07 975,000
-----------------------------------------------------------------------------
$ 975,000
-----------------------------------------------------------------------------
Foods -- 0.3%
-----------------------------------------------------------------------------
B & G Foods, Inc., Sub. Notes
$ 300 9.625%, 8/1/07 $ 194,250
Del Monte Corp., Sr. Notes
651 12.25%, 4/15/07 693,315
-----------------------------------------------------------------------------
$ 887,565
-----------------------------------------------------------------------------
Furniture and Appliances -- 0.1%
-----------------------------------------------------------------------------
Fedders North America
$ 500 9.375%, 8/15/07 $ 432,500
-----------------------------------------------------------------------------
$ 432,500
-----------------------------------------------------------------------------
Information Technology Services -- 0.1%
-----------------------------------------------------------------------------
Psinet, Inc.
$ 1,250 11.50%, 11/1/08 $ 343,750
-----------------------------------------------------------------------------
$ 343,750
-----------------------------------------------------------------------------
Lodging and Gaming -- 1.7%
-----------------------------------------------------------------------------
Coast Hotels and Casino, Inc., Sr. Sub. Notes
$ 500 9.50%, 4/1/09 $ 486,875
Hollywood Casino, Sr. Sub. Notes
1,000 11.25%, 5/1/07 1,037,500
Majestic Star Casino, LLC
1,000 10.875%, 7/1/06 865,000
Mandalay Resort Group, Sr. Sub Notes
1,000 10.25%, 8/1/07 992,500
MGM Grand, Inc.
1,000 9.75%, 6/1/07 1,050,000
Sun International Hotels, Sr. Sub. Notes
1,000 9.00%, 3/15/07 930,000
-----------------------------------------------------------------------------
$ 5,361,875
-----------------------------------------------------------------------------
Manufacturing -- 0.6%
-----------------------------------------------------------------------------
Insilco Corp.
$ 1,000 12.00%, 8/15/07 $ 995,000
Transdigm Inc.
1,000 10.375%, 12/1/08 905,000
-----------------------------------------------------------------------------
$ 1,900,000
-----------------------------------------------------------------------------
Oil and Gas - Equipment and Services -- 0.2%
-----------------------------------------------------------------------
R&B Falcon Corp.
$ 500 9.50%, 12/15/08 $ 547,500
-----------------------------------------------------------------------------
$ 547,500
-----------------------------------------------------------------------------
Oil and Gas - Refining -- 0.3%
-----------------------------------------------------------------------------
Western Natural Gas
$ 1,000 10.00%, 6/15/09 $ 1,050,000
-----------------------------------------------------------------------------
$ 1,050,000
-----------------------------------------------------------------------------
Printing and Business Products -- 0.4%
----------------------------------------------------------------
MDC Communications Corp., Sr. Sub. Notes
$ 1,250 10.50%, 12/1/06 $ 1,143,750
-----------------------------------------------------------------------------
$ 1,143,750
-----------------------------------------------------------------------------
Publishing -- 0.5%
-----------------------------------------------------------------------------
American Lawyer Media
$ 1,000 9.75%, 12/15/07 $ 880,000
Von Hoffman Press, Inc., Sr. Sub. Notes
750 10.875%, 5/15/07(1) 648,750
-----------------------------------------------------------------------------
$ 1,528,750
-----------------------------------------------------------------------------
Restaurants -- 0.2%
-----------------------------------------------------------------------------
AFC Enterprises, Inc., Sr. Sub Notes
$ 550 10.25%, 5/15/07 $ 519,750
-----------------------------------------------------------------------------
$ 519,750
-----------------------------------------------------------------------------
Retail - Food and Drug -- 0.3%
-----------------------------------------------------------------------------
Pantry, Inc., Sr. Sub. Notes
$ 1,000 10.25%, 10/15/07 $ 945,000
-----------------------------------------------------------------------------
$ 945,000
-----------------------------------------------------------------------------
Services -- 0.3%
-----------------------------------------------------------------------------
Kindercare Learning Centers, Inc., Sr. Sub. Notes
$ 1,000 9.50%, 2/15/09 $ 905,000
-----------------------------------------------------------------------------
$ 905,000
-----------------------------------------------------------------------------
Transportation -- 0.2%
-----------------------------------------------------------------------------
Pacer International, Inc.
$ 750 11.75%, 6/1/07 $ 708,750
-----------------------------------------------------------------------------
$ 708,750
-----------------------------------------------------------------------------
Wireless Communication Services -- 0.2%
-----------------------------------------------------------------------------
Dobson/Signet Communications Corp.
$ 625 12.25%, 12/15/08 $ 618,750
-----------------------------------------------------------------------------
$ 618,750
-----------------------------------------------------------------------------
Wireline Communication Services - 1.4%
-----------------------------------------------------------------------------
Esprit Telecom Group PLC, Sr. Notes*
$ 1,000 11.50%, 12/15/07 $ 15,000
Primus Telecom Group, Sr. Notes
1,000 11.25%, 1/15/09 275,000
Versatel Telecom BV, Sr. Notes
1,500 11.875%, 7/15/09 907,500
Viatel, Inc., Sr. Notes
1,000 11.50%, 3/15/09 310,000
Level 3 Communications, Inc., Sr. Notes
1,000 9.125%, 5/1/08 812,500
Metromedia Fiber Network, Sr. Notes
500 10.00%, 11/15/08 417,500
500 10.00%, 12/15/09 417,500
Nextlink Communications, Sr. Notes
750 10.50%, 12/1/09 603,750
Williams Communications Group, Inc., Sr. Notes
1,000 10.875%, 10/1/09 750,000
-----------------------------------------------------------------------------
$ 4,508,750
-----------------------------------------------------------------------------
Total Corporate Bonds & Notes
(identified cost $43,453,548) $ 32,996,440
-----------------------------------------------------------------------------
Common Stocks and Warrants -- 1.2%
Shares/Warrants Security
-----------------------------------------------------------------------------
474 Environmental Systems Products Hldgs (Series A)
Preferred Stock* $ 119,519
2,992 Environmental Systems Products Hldgs Common
Stock* 0
163 Tokheim Stock (Series A) Preferred Stock* 0
11,087 Tokheim Stock Warrants* 0
500,000 VanKanpen Senior Income Trust 3,781,250
-----------------------------------------------------------------------------
Total Common Stocks and Warrants
(identified cost, $4,236,169) $ 3,900,769
-----------------------------------------------------------------------------
Commercial Paper -- 3.5%
Principal Amount
-----------------------------------------------------------------------------
Corporate Receivables Corp.
$11,200,000 6.53%, 1/2/01 $ 11,197,969
-----------------------------------------------------------------------------
Total Commercial Paper
(amortized cost, $11,197,969) $ 11,197,969
-----------------------------------------------------------------------------
Total Investments 135.9%
(identified cost, $468,689,221) $442,021,433
-----------------------------------------------------------------------------
Other Assets, Less Liabilities -- (35.9%) $116,673,450
-----------------------------------------------------------------------------
Net Assets -- 100.0% $325,347,983
-----------------------------------------------------------------------------
(1) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(2) Senior secured floating rate interests often require prepayments from excess
cash flows or permit the borrower to repay at its election. The degree to
which borrowers repay, whether as a contractual requirement or at the
election, cannot be predicted with accuracy. As a result, the actual
remaining maturity may be substantially less than the stated maturities
shown. However, it is anticipated that the senior secured floating rate
interests will have an expected average life of approximately three years.
* Non-income producing.
Note: At December 31, 2000, the Trust had unfunded commitments amounting to
$ 5,156,706 under various revolving credit agreements.
See notes to financial statements
Eaton Vance Senior Income Trust as of December 31, 2000
STATEMENT OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2000
ASSETS
---------------------------------------------------------------------------
Investments, at value
(identified cost, $468,689,221) $ 442,021,433
Cash 7,207,019
Receivable for investments sold 384,170
Dividends and interest receivable 888,850
Prepaid expenses 75,513
---------------------------------------------------------------------------
Total assets $ 450,576,985
---------------------------------------------------------------------------
LIABILITIES
---------------------------------------------------------------------------
Amounts due under commercial paper program $ 121,000,000
Dividends payable 2,781,352
Deferred facility fee income 301,827
Miscellaneous liabilities 137,066
Payable to affiliate for Trustees' fees 4,776
Accrued expenses:
Interest 775,058
Operating expense 228,923
---------------------------------------------------------------------------
Total liabilities $ 125,229,002
---------------------------------------------------------------------------
Net Assets for 35,660,000 shares of beneficial
interest outstanding $ 325,347,983
---------------------------------------------------------------------------
SOURCES OF NET ASSETS
---------------------------------------------------------------------------
Paid-in capital $ 355,878,889
Accumulated distributions in excess of net realized gain
(computed on the basis of identified cost) (4,021,781)
Accumulated undistributed net investment income 158,663
Net unrealized depreciation (computed on the basis
of identified cost) (26,667,788)
---------------------------------------------------------------------------
Total $ 325,347,983
---------------------------------------------------------------------------
NET ASSET VALUE
---------------------------------------------------------------------------
($325,347,983 / 35,660,000 shares of beneficial interest
outstanding) $ 9.12
---------------------------------------------------------------------------
See notes to financial statements
Eaton Vance Senior Income Trust as of December 31, 2000
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
DECEMBER 31, 2000
INVESTMENT INCOME
---------------------------------------------------------------------------
Interest $ 23,830,177
Dividends 252,503
Facility fees earned 287,796
Miscellaneous 15,499
---------------------------------------------------------------------------
Total investment income $ 24,385,975
---------------------------------------------------------------------------
EXPENSES
---------------------------------------------------------------------------
Investment adviser fee $ 2,035,665
Administration fee 598,671
Trustees fees and expenses 7,750
Interest 4,664,544
Custodian fee 97,142
Legal and accounting services 90,132
Printing and postage 64,734
Loan program structuring expense 42,136
Transfer and dividend disbursing agent fees 34,515
Registration fees 16,302
Miscellaneous 218,212
---------------------------------------------------------------------------
Total expenses $ 7,869,803
---------------------------------------------------------------------------
Net investment income $ 16,516,172
---------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
---------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $ (2,657,310)
---------------------------------------------------------------------------
Net realized loss $ (2,657,310)
---------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ (19,199,742)
---------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) $ (19,199,742)
---------------------------------------------------------------------------
Net realized and unrealized loss $ (21,857,052)
---------------------------------------------------------------------------
Net decrease in net assets from operations $ (5,340,880)
---------------------------------------------------------------------------
See notes to financial statements
Eaton Vance Senior Income Trust as of December 31, 2000
STATEMENTS OF CHANGES IN NET ASSETS
INCREASE (DECREASE) SIX MONTHS ENDED YEAR ENDED
IN NET ASSETS DECEMBER 31, 2000 JUNE 30, 2000
-----------------------------------------------------------------------------------------------
From operations --
Net investment income $ 16,516,172 $ 30,956,473
Net realized loss (2,657,310) (1,240,715)
Net change in unrealized appreciation
(depreciation) (19,199,742) (8,344,561)
-----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
operations $ (5,340,880) $ 21,371,197
-----------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income $ (19,113,760) $ (30,851,144)
In excess of net realized gains -- (422,676)
-----------------------------------------------------------------------------------------------
Total distributions to shareholders $ (19,113,760) $ (31,273,820)
-----------------------------------------------------------------------------------------------
Net decrease in net assets $ (24,454,640) $ (9,902,623)
-----------------------------------------------------------------------------------------------
NET ASSETS
-----------------------------------------------------------------------------------------------
At beginning of period $ 349,802,623 $ 359,705,246
-----------------------------------------------------------------------------------------------
At end of period $ 325,347,983 $ 349,802,623
-----------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME
INCLUDED IN NET ASSETS
-----------------------------------------------------------------------------------------------
At end of period $ 158,663 $ 2,756,251
-----------------------------------------------------------------------------------------------
See notes to financial statements
Eaton Vance Senior Income Trust as of December 31, 2000
STATEMENT OF CASH FLOWS
SIX MONTHS ENDED
INCREASE (DECREASE) IN CASH DECEMBER 31, 2000
-----------------------------------------------------------------------------
Cash Flows From (Used For) Operating Activities --
Purchases of loan interests and corporate bonds $(127,773,435)
Proceeds from sales and principal repayments 127,115,368
Interest and dividends received 27,417,998
Facility fees paid (697,724)
Miscellaneous income received 11,749
Interest paid (4,596,854)
Operating expenses paid (3,191,800)
Net decrease in short-term investments 7,501,953
-----------------------------------------------------------------------------
Net cash from operating activities $ 25,787,255
-----------------------------------------------------------------------------
Cash Flows From (Used For) Financing Activities --
Cash distributions paid $ (16,445,048)
Net decrease in amounts due under commercial paper program (8,000,000)
-----------------------------------------------------------------------------
Net cash used for financing activities $ (24,445,048)
-----------------------------------------------------------------------------
Net increase in cash $ 1,342,207
-----------------------------------------------------------------------------
Cash at beginning of period $ 5,864,812
-----------------------------------------------------------------------------
Cash at end of period $ 7,207,019
-----------------------------------------------------------------------------
RECONCILIATION OF NET DECREASE IN NET ASSETS
FROM OPERATIONS TO NET CASH FROM
OPERATING ACTIVITIES
-----------------------------------------------------------------------------
Net decrease in net assets from operations $ (5,340,880)
Decrease in receivable from investments sold 675,913
Decrease in dividends and interest receivable 3,745,429
Increase in prepaid expenses (26,066)
Decrease in deferred facility fee income (1,004,630)
Decrease in miscellaneous liability (3,750)
Decrease in payable to affiliate (1,801)
Increase in accrued expenses 109,016
Decrease in payable for investments purchased (2,575,625)
Net decrease in investments 30,209,649
-----------------------------------------------------------------------------
Net cash from operating activities $ 25,787,255
-----------------------------------------------------------------------------
See notes to financial statements
Eaton Vance Senior Income Trust as of December 31, 2000
FINANCIAL HIGHLIGHTS
YEAR ENDED JUNE 30,
SIX MONTHS ENDED ----------------------------------------------
DECEMBER 31, 2000 2000 1999(1)(2)
--------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 9.810 $ 10.090 $ 10.000
--------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
--------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.463 $ 0.868 $ 0.539
Net realized and unrealized gain (loss) (0.617) (0.271) 0.036
--------------------------------------------------------------------------------------------------------------------------
Total income (loss) from operations $ (0.154) $ 0.597 $ 0.575
--------------------------------------------------------------------------------------------------------------------------
Less distributions
--------------------------------------------------------------------------------------------------------------------------
From net investment income $ (0.536) $ (0.865) $ (0.465)
In excess of net realized gain -- (0.012) --
--------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.536) $ (0.877) $ (0.465)
--------------------------------------------------------------------------------------------------------------------------
Offering costs charged to paid-in capital $ -- $ -- $ (0.020)
--------------------------------------------------------------------------------------------------------------------------
Net asset value -- End of period $ 9.120 $ 9.810 $ 10.090
--------------------------------------------------------------------------------------------------------------------------
Market value -- End of period $ 8.375 $ 9.313 $ 10.000
--------------------------------------------------------------------------------------------------------------------------
Total Return(3) (4.72)% 2.00% 4.93%
--------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
--------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $325,348 $349,803 $359,705
Ratios (As a percentage of average daily net
assets):
Net expenses 1.88%(4) 1.84% 1.65%(4)
Interest expense 2.74%(4) 2.41% 2.02%(4)
Total expense 4.62%(4) 4.25% 3.67%
Net investment income 9.69%(4) 8.73% 8.17%(4)
Portfolio Turnover 28% 63% 27%
--------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Trust may reflect a reduction of the
investment adviser fee and the administration fee. Had such actions not been
taken, the ratios and net investment income per share would have been as
follows:
Ratios (As a percentage of average daily net
assets):
Expenses 1.97%(4)
Interest expense 2.02%(4)
Net investment income 7.85%(4)
Net investment income per share $ 0.518
--------------------------------------------------------------------------------------------------------------------------
(1) Net investment income per share was computed using average shares
outstanding.
(2) For the period from the start of business, October 30, 1998, to June 30,
1999.
(3) Total return is calculated assuming a purchase at market value on the first
day and a sale at the market value on the last day of the period reported.
Dividends and distributions, if any, are assumed reinvested on the
reinvestment date. Total return is not computed on an annualized basis.
(4) Annualized.
Eaton Vance Senior Income Trust as of December 31, 2000
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
--------------------------------------------------------------------------------
Eaton Vance Senior Income Trust (the Trust) is an entity commonly known as a
Massachusetts business trust and is registered under the Investment Company
Act of 1940 as a non-diversified closed-end management investment company.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
A Investment Valuation -- The Trust's investments are primarily in interests
in senior floating rate loans (Senior Loans). Certain Senior Loans are
deemed liquid if reliable market quotations are readily available for them.
The Trust's investment adviser, Eaton Vance Management (EVM), values liquid
loans on the basis of prices furnished by a pricing service daily. Other
Senior Loans are valued at fair value by EVM under procedures established by
the Trustees as permitted by Section 2(a)(41) of the Investment Company Act
of 1940. Such procedures include the consideration of relevant factors, data
and information relating to fair value, including (i) the characteristics of
and fundamental analytical data relating to the Senior Loan, including the
cost, size, current interest rate, period until next interest rate reset,
maturity and base lending rate of the Senior Loan, the terms and conditions
of the Senior Loan and any related agreements and the position of the loan
in the borrower's debt structure; (ii) the nature, adequacy and value of the
collateral, including the Trust's rights, remedies and interests with
respect to the collateral; (iii) the creditworthiness of the Borrower, based
on evaluations of its financial condition, financial statements and
information about the Borrower's business, cash flows, capital structure and
future prospects; (iv) information relating to the market for the Senior
Loan including price quotations for and trading in the Senior Loan and
interests in similar loans and the market environment and investor attitudes
towards the Senior Loan and interests in similar loans; (v) the reputation
and financial condition of the agent and any intermediate participant in the
loan; and (vi) general economic and market conditions affecting the fair
value of the Senior Loan. Other portfolio securities (other than short-term
obligations, but including listed issues) may be valued on the basis of
prices furnished by one or more pricing services which determine prices for
normal, institutional-size trading units of such securities using market
information, transactions for comparable securities and various
relationships between securities which are generally recognized by
institutional traders. In certain circumstances, portfolio securities will
be valued at the last sales price on the exchange that is the primary market
for such securities, or the last quoted bid price for those securities for
which the over-the-counter market is the primary market or for listed
securities in which there were no sales during the day. The value of
interest rate swaps will be determined in accordance with a discounted
present value formula and then confirmed by obtaining a bank quotation.
Short-term obligations which mature in sixty days or less are valued at
amortized cost, if their original term to maturity when acquired by the
Trust was 60 days or less or are valued at amortized cost using their value
on the 61st day prior to maturity, if their original term to maturity when
acquired by the Trust was more than 60 days, unless in each case this is
determined not to represent fair value. Repurchase agreements are valued at
cost plus accrued interest. Other portfolio securities for which there are
no quotations or valuations are valued at fair value as determined in good
faith by or on behalf of the Trustees.
B Income -- Interest income from Senior Loans is recorded on the accrual
basis at the then-current interest rate, while all other interest income is
determined on the basis of interest accrued, adjusted for amortization of
premium or discount when required for federal income tax purposes. Facility
fees received are recognized as income over the expected term of the loan.
C Federal Taxes -- The Trust'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 all of its taxable income, including
any net realized gain on investments. Accordingly, no provision for federal
income or excise tax is necessary.
D Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian of the Trust. Pursuant to the custodian agreement, IBT receives a
fee reduced by credits which are determined based on the average daily cash
balances the Trust maintains with IBT. All significant credit balances used
to reduce the Trust's custodian fees are reported as a reduction of expenses
on the Statement of Operations.
E Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles 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.
F Other -- Investment transactions are accounted for on the date the
investments are purchased or sold. Gains and losses on securities sold are
determined on the basis of identified cost.
2 Distributions to Shareholders
--------------------------------------------------------------------------------
Distributions to shareholders are recorded on the ex-dividend date. The
Trust distinguishes between distributions on a tax basis and a financial
reporting basis. Generally accepted accounting principles require that only
distributions in excess of tax basis earnings and profits be reported in the
financial statements as a tax return of capital. Differences in the
recognition or classification of income between the financial statements and
tax earnings and profits which result in temporary over-distributions for
financial statement purposes are classified as distributions in excess of
net investment income or accumulated net realized gains. Permanent
differences between book and tax accounting relating to distributions are
reclassified to paid-in capital.
3 Shares of Beneficial Interest
--------------------------------------------------------------------------------
The agreement and Declaration of Trust permits the Trustees to issue an
unlimited number of full and fractional $0.01 par value shares of beneficial
interest.
4 Investment Adviser Fee and Other Transactions with Affiliates
--------------------------------------------------------------------------------
The investment adviser fee, computed at a monthly rate of 17/240 of 1% (0.85%
annually) of the Trust's average weekly gross assets, was earned by EVM as
compensation for management and investment advisory services rendered to the
Trust. For the six months ended December 31, 2000, the fee was equivalent to
0.85% (annualized) of the Trust's average daily gross assets and amounted to
$2,035,665. Except for Trustees of the Trust who are not members of EVM's
organization, officers and Trustees receive remuneration for their services
to the Trust out of such investment adviser fee. EVM also serves as the
administrator of the Trust. An administration fee, computed at the monthly
rate of 1/48 of 1% (0.25% annually) of the average weekly gross assets of the
Trust, is paid to EVM for managing and administering business affairs of the
Trust. For the six months ended December 31, 2000, the fee was equivalent to
0.25% (annualized) of the Trust's average daily gross assets for such period
and amounted to $598,671.
Certain officers and Trustees of the Trust are officers of the above
organization.
5 Investment Transactions
--------------------------------------------------------------------------------
The Trust invests primarily in Senior Loans. The ability of the issuers of
the Senior Loans held by the Trust to meet their obligations may be affected
by economic developments in a specific industry. The cost of purchases and
the proceeds from principal repayments and sales of Senior Loans and
corporate bonds aggregated $125,197,810 and $126,432,176, respectively, for
the six months ended December 31, 2000.
6 Short-Term Debt and Credit Agreements
--------------------------------------------------------------------------------
The Trust has entered into a revolving credit agreement that will allow the
Trust to borrow $178 million to support the issuance of commercial paper and
to permit the Trust to invest in accordance with its investment practices.
Interest is charged under the revolving credit agreement at the bank's base
rate or at an amount above either the bank's adjusted certificate of deposit
rate or federal funds effective rate. Interest expense includes a commitment
fee of approximately $136,000 which is computed at the annual rate of 0.15%
on the unused portion of the revolving credit agreement. There were no
significant borrowings under this agreement during the period. As of
December 31, 2000, the Trust had commercial paper outstanding of
$121,000,000, at an interest rate of 6.60%. Maximum and average borrowings
for the six months ended December 31, 2000 were $136,000,000 and
$134,000,000, respectively, and the average interest rate was 6.55%.
7 Federal Income Tax Basis of Investments
--------------------------------------------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments at December 31, 2000, as computed on a federal income tax basis,
were as follows:
Aggregate cost $468,689,221
----------------------------------------------------------------------------
Gross unrealized appreciation $ 1,126,098
Gross unrealized depreciation (27,793,886)
----------------------------------------------------------------------------
Net unrealized depreciation $(26,667,788)
----------------------------------------------------------------------------
8 Annual Meeting of Shareholders (Unaudited)
--------------------------------------------------------------------------------
The Fund held its annual meeting of Shareholders on October 26, 2000.
35,660,000 shares were outstanding on August 29, 2000, the record date for
the shares eligible to vote at the meeting. 32,859,373 (92.15% of the record
date shares) were represented at the meeting. The following actions were
taken by the shareholders:
Item 1: The election of Samuel L. Hayes, III and Norton H. Reamer as
Trustees of the Trust.
NUMBER OF
SHARES
NOMINEES FOR TRUSTEE AFFIRMATIVE WITHHELD
------------------------------------------------------------------
Samuel L. Hayes 32,658,926 200,438
Norton H. Reamer 32,667,149 192,225
Item 2: The ratification of the selection of Deloitte & Touche LLP as
independent auditors to the Trust for the fiscal year ending June 30, 2001.
NUMBER OF SHARES
----------------------------------------------------------------------------
For 32,526,911
Against 82,651
Abstain 249,812
----------------------------------------------------------------------------
Eaton Vance Senior Income Trust as of December 31, 2000
-------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
-------------------------------------------------------------------------------
To the Trustees and Investors of
Eaton Vance Senior Income Trust
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of Eaton Vance Senior Income Trust
(the Trust) as of December 31, 2000, and the related statement of operations
and cash flows for the six months then ended, the statement of changes in net
assets for the six months then ended and the year ended June 30, 2000, and the
financial highlights for the six months then ended and each of the years in
the two year period ended June 30, 2000. These financial statements and
financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. Our procedures included confirmation of securities and Senior
Loans owned at December 31, 2000 by correspondence with the custodian, brokers
and selling or agent banks; where replies were not received from brokers and
selling or agent banks, we performed other auditing procedures. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights, referred
to above, present fairly, in all material respects, the financial position of
Eaton Vance Senior Income Trust at December 31, 2000, and the results of its
operations, the changes in its net assets, its cash flows and its financial
highlights for the respective stated periods in conformity with accounting
principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 16, 2001
Eaton Vance Senior Income Trust
-------------------------------------------------------------------------------
DIVIDEND REINVESTMENT PLAN
-------------------------------------------------------------------------------
The Trust offers a dividend reinvestment plan (the Plan) pursuant to which
shareholders automatically have dividends and capital gains distributions
reinvested in common shares (the Shares) of the Trust unless they elect
otherwise through their investment dealer. On the distribution payment date,
if the net asset value per Share is equal to or less than the market price per
Share plus estimated brokerage commissions then new Shares will be issued. The
number of Shares shall be determined by the greater of the net asset value per
Share or 95% of the market price. Otherwise, Shares generally will be
purchased on the open market by the Plan Agent. Distributions subject to
income tax (if any) are taxable whether or not shares are reinvested.
If your shares are in the name of a brokerage firm, bank, or other nominee,
you can ask the firm or nominee to participate in the Plan on your behalf. If
the nominee does not offer the Plan, you will need to request that your shares
be re-registered in your name with the Trust's transfer agent, PFPC, Inc. or
you will not be able to participate.
The Plan Agent's service fee for handling distributions will be paid by the
Trust. Each participant will be charged their pro rata share of brokerage
commissions on all open-market purchases.
Plan participants may withdraw from the Plan at any time by writing to the
Plan Agent at the address noted on the following page. If you withdraw, you
will receive shares in your name for all Shares credited to your account under
the Plan. If a participant elects by written notice to the Plan Agent to have
the Plan Agent sell part or all of his or her Shares and remit the proceeds,
the Plan Agent is authorized to deduct a $5.00 fee plus brokerage commissions
from the proceeds.
If you wish to participate in the Plan and your shares are held in your own
name, you may complete the form on the following page and deliver it to the
Plan Agent.
Any inquires regarding the Plan can be directed to the Plan Agent, PFPC, Inc.,
at 1-800-331-1710.
Eaton Vance Senior Income Trust
APPLICATION FOR PARTICIPATION IN
DIVIDEND REINVESTMENT PLAN
--------------------------------------------------------------------------------
This form is for shareholders who hold their common shares in their own names.
If your common shares are held in the name of a brokerage firm, bank, or other
nominee, you should contact your nominee to see if it will participate in the
Plan on your behalf. If you wish to participate in the Plan, but your brokerage
firm, bank or nominee is unable to participate on your behalf, you should
request that your common shares be re-registered in your own name which will
enable your participation in the Plan.
--------------------------------------------------------------------------------
The following authorization and appointment is given with the understanding that
I may terminate it at any time by terminating my participation in the Plan as
provided in the terms and cond itions of the Plan.
--------------------------------------
Please print exact name on account:
--------------------------------------
Shareholder signature Date
--------------------------------------
Shareholder signature Date
Please sign exactly as your common
shares are registered. All persons
whose names appear on the share
certificate must sign.
YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DIVIDENDS AND
DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.
THE AUTHORIZATION FORM, WHEN SIGNED, SHOULD BE MAILED TO THE FOLLOWING
ADDRESS:
Eaton Vance Senior Income Trust
c/o PFPC, Inc.
P.O. Box 8030
Boston, MA 02266-8030
800-331-1710
--------------------------------------------------------------------------------
NUMBER OF EMPLOYEES
The Trust is organized as a Massachusetts business trust and is registered
under the Investment Company Act of 1940, as amended, as a closed-end,
nondiversified, management investment company and has no employees.
NUMBER OF SHAREHOLDERS
As of December 31, 2000, our records indicate that there were 346 registered
shareholders for and approximately 16,500 shareholders owning Trust shares in
street name, such as through brokers, banks, and financial intermediaries.
If you are a street name shareholder and wish to receive our reports directly
which contain important information about the Trust, please write or call:
Eaton Vance Distributors, Inc.
The Eaton Vance Building
255 State Street
Boston, MA 02109
1-800-225-6265
NEW YORK STOCK EXHANGE SYMBOL
The New York Stock Exchange Symbol is EVF
Eaton Vance Senior Income Trust as of December 31, 2000
-------------------------------------------------------------------------------
INVESTMENT MANAGEMENT
-------------------------------------------------------------------------------
Eaton Vance Senior Income Trust
Officers Trustees
JAMES B. HAWKES JESSICA M. BIBLIOWICZ
President, Chief Executive President and Chief Executive Officer,
Officer and Trustee National Financial Partners
SCOTT H. PAGE DONALD R. DWIGHT
Vice President and President, Dwight Partners, Inc.
Co-Portfolio Manager
SAMUEL L. HAYES, III
PAYSON F. SWAFFIELD Jacob H. Schiff Professor of Investment
Vice President and Banking Emeritus, Harvard University
Co-Portfolio Manager Graduate School of Business Administration
MICHAEL W. WEILHEIMER NORTON H. REAMER
Vice President Chairman and Chief Operating Officer,
Hellman, Jordan Management Co., Inc.
JAMES L. O'CONNOR President, Jordan Simmons Capital LLC
Treasurer and Unicorn Corporation
ALAN R. DYNNER LYNN A. STOUT
Secretary Professor of Law,
Georgetown University Law Center
JACK L. TREYNOR
Investment Adviser and Consultant
INVESTMENT ADVISER AND ADMINISTRATOR OF
EATON VANCE SENIOR INCOME TRUST
EATON VANCE MANAGEMENT
The Eaton Vance Building
255 State Street
Boston, MA 02109
CUSTODIAN
INVESTORS BANK & TRUST COMPANY
200 Clarendon Street
Boston, MA 02116
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
PFPC, INC.
Attn: Eaton Vance Senior Income Trust
P.O. Box 8030
Boston, MA 02266-8030
(800) 331-1710
INDEPENDENT AUDITORS
DELOITTE & TOUCHE LLP
200 Berkeley Street
Boston, MA 02116-5022
EATON VANCE SENIOR INCOME TRUST
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
171-2/01 SITSRC