Eaton Vance California Municipal Bond Fund II

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-21217

Investment Company Act File Number

 

 

Eaton Vance California Municipal Bond Fund II

(Exact Name of Registrant as Specified in Charter)

 

 

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

 

 

Maureen A. Gemma

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

 

 

(617) 482-8260

(Registrant’s Telephone Number, Including Area Code)

September 30

Date of Fiscal Year End

June 30, 2012

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

California Municipal Bond Fund II

June 30, 2012

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 169.8%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 17.1%

      

California Educational Facilities Authority, (Claremont McKenna College),
5.00%, 1/1/39

    $ 1,370       $ 1,489,053   

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

      395         450,233   

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

      160         178,830   

California Educational Facilities Authority, (Loyola Marymount University),
5.00%, 10/1/22

      70         81,836   

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

      65         75,293   

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

      380         413,558   

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

      890         1,016,149   

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

      115         138,048   

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

      1,200         1,385,904   

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

      330         362,640   

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

      210         231,307   

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

      145         155,942   

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

      405         466,933   

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

      425         486,782   

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

      450         511,587   

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

      1,000         1,127,930   
     

 

 

  
      $ 8,572,025   
     

 

 

  

Electric Utilities — 8.9%

      

Los Angeles Department of Water and Power, Electric System Revenue,
5.25%, 7/1/32

    $ 745       $ 871,032   

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

      1,050         1,115,131   

Sacramento Municipal Utility District, 5.00%, 8/15/30

      420         479,669   

Sacramento Municipal Utility District, 5.00%, 8/15/31

      125         142,413   

Southern California Public Power Authority, (Tieton Hydropower),
5.00%, 7/1/30

      1,000         1,132,650   

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

      675         754,994   
     

 

 

  
      $ 4,495,889   
     

 

 

  

General Obligations — 15.2%

      

California, 5.50%, 11/1/35

    $ 1,300       $ 1,494,168   

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

      100         108,857   

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

      110         118,193   

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

      120         128,347   

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

      120         130,112   

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

      145         156,862   

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

      520         574,449   

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Menlo Park City School District, 5.00%, 7/1/29(1)

    $ 235       $ 281,316   

Menlo Park City School District, 5.00%, 7/1/30(1)

      260         309,239   

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

      1,850         2,104,690   

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

      720         826,078   

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

      455         522,422   

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

      350         403,130   

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

      410         466,555   
     

 

 

  
      $ 7,624,418   
     

 

 

  

Hospital — 14.9%

      

California Health Facilities Financing Authority, (Catholic Healthcare West),
5.625%, 7/1/32

    $ 1,330       $ 1,451,229   

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

      1,425         1,524,864   

California Health Facilities Financing Authority, (Memorial Health Services),
5.00%, 10/1/27

      750         856,972   

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

      800         857,432   

California Statewide Communities Development Authority, (Cottage Health System),
5.25%, 11/1/30

      1,000         1,122,880   

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

      355         372,711   

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

      555         570,690   

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

      750         753,383   
     

 

 

  
      $ 7,510,161   
     

 

 

  

Insured-Education — 10.1%

      

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

    $ 420       $ 463,508   

California Educational Facilities Authority, (Pepperdine University), (AMBAC),
5.00%, 12/1/35

      1,000         1,103,590   

California State University, (AGM), (BHAC), 5.00%, 11/1/39(2)

      2,000         2,145,620   

California State University, (AMBAC), 5.00%, 11/1/33

      1,335         1,351,954   
     

 

 

  
      $ 5,064,672   
     

 

 

  

Insured-Electric Utilities — 8.7%

      

Glendale, Electric System Revenue, (NPFG), 5.00%, 2/1/32

    $ 1,475       $ 1,506,536   

Los Angeles Department of Water and Power, Electric System Revenue, (AMBAC),
(BHAC), 5.00%, 7/1/26(2)

      1,500         1,723,740   

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

      1,000         1,125,160   
     

 

 

  
      $ 4,355,436   
     

 

 

  

Insured-Escrowed/Prerefunded — 12.6%

      

California Educational Facilities Authority, (Pepperdine University), (FGIC), (NPFG),
Prerefunded to 9/1/12, 5.00%, 9/1/33

    $ 180       $ 181,499   

California Infrastructure and Economic Development Bank, (Bay Area Toll Bridges),
(AMBAC), Prerefunded to 1/1/28, 5.00%, 7/1/33

      1,150         1,544,979   

California Infrastructure and Economic Development Bank, (Bay Area Toll Bridges),
(AMBAC), Prerefunded to 1/1/28, 5.00%, 7/1/36

      1,025         1,377,047   

Clovis Unified School District, (FGIC), (NPFG), Escrowed to Maturity, 0.00%, 8/1/20

      3,130         2,683,693   

Orange County Water District, Certificates of Participation, (NPFG), Escrowed to Maturity, 5.00%, 8/15/34

      395         520,926   
     

 

 

  
      $ 6,308,144   
     

 

 

  

Insured-General Obligations — 23.8%

      

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

    $ 725       $ 789,112   

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Arcadia Unified School District, (Election of 2006), (AGM), 0.00%, 8/1/38

    $ 7,125       $ 1,664,899   

Arcadia Unified School District, (Election of 2006), (AGM), 0.00%, 8/1/40

      2,525         520,630   

Carlsbad Unified School District, (Election of 2006), (NPFG), 5.25%, 8/1/32

      1,500         1,659,270   

Coast Community College District, (Election of 2002), (AGM), 0.00%, 8/1/35

      6,675         1,916,392   

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

      575         588,323   

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

      1,250         1,392,913   

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

      1,040         1,170,114   

Union Elementary School District, (Election of 1999), (FGIC), (NPFG), 0.00%, 9/1/22

      3,200         2,251,744   
     

 

 

  
      $ 11,953,397   
     

 

 

  

Insured-Hospital — 6.3%

      

California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC), 5.00%, 3/1/41(2)

    $ 1,250       $ 1,315,838   

California Statewide Communities Development Authority, (Sutter Health), (AGM),
5.05%, 8/15/38(2)

      1,750         1,872,955   
     

 

 

  
      $ 3,188,793   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 7.2%

      

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

    $ 1,250       $ 1,704,725   

San Diego County Water Authority, Certificates of Participation, (AGM), 5.00%, 5/1/38(2)

      1,750         1,893,710   
     

 

 

  
      $ 3,598,435   
     

 

 

  

Insured-Special Tax Revenue — 10.9%

      

Cathedral City Public Financing Authority, (Housing Redevelopment), (NPFG), 5.00%, 8/1/33

    $ 1,400       $ 1,406,958   

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

      1,535         1,266,191   

Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue, (AGM), 4.50%, 7/1/27

      430         456,845   

Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54

      5,655         478,809   

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

      3,215         482,925   

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

      1,225         1,370,628   
     

 

 

  
      $ 5,462,356   
     

 

 

  

Insured-Transportation — 3.8%

      

San Joaquin Hills Transportation Corridor Agency, (NPFG), 0.00%, 1/15/27(3)

    $ 3,520       $ 1,545,526   

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

      330         344,276   
     

 

 

  
      $ 1,889,802   
     

 

 

  

Insured-Water and Sewer — 8.7%

      

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

    $ 1,235       $ 1,306,667   

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

      100         113,217   

East Bay Municipal Utility District, Water System Revenue, (FGIC), (NPFG), 5.00%, 6/1/32(2)

      1,600         1,811,472   

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

      445         482,838   

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

      665         683,188   
     

 

 

  
      $ 4,397,382   
     

 

 

  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Special Tax Revenue — 6.3%

      

Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue,
5.00%, 7/1/31

    $ 1,490       $ 1,662,631   

San Francisco Bay Area Rapid Transit District, Sales Tax Revenue, 5.00%, 7/1/28

      1,300         1,502,332   
     

 

 

  
      $ 3,164,963   
     

 

 

  

Transportation — 13.0%

      

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

    $ 1,190       $ 1,397,869   

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

      540         627,631   

Los Angeles Department of Airports, (Los Angeles International Airport), 5.00%, 5/15/35(2)(4)

      1,060         1,175,922   

Los Angeles Harbor Department, 5.00%, 8/1/25

      1,250         1,486,750   

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

      635         689,572   

San Jose, Airport Revenue, 5.00%, 3/1/20

      1,000         1,173,820   
     

 

 

  
      $ 6,551,564   
     

 

 

  

Water and Sewer — 2.3%

      

Metropolitan Water District of Southern California, 5.00%, 1/1/39

    $ 1,050       $ 1,154,706   
     

 

 

  
      $ 1,154,706   
     

 

 

  

Total Tax-Exempt Investments — 169.8%
(identified cost $79,184,493)

       $ 85,292,143   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (51.2)%

       $ (25,700,578 ) 
     

 

 

  

Other Assets, Less Liabilities — (18.6)%

       $ (9,360,776 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 50,230,789   
     

 

 

  

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

 

AGC

   -   Assured Guaranty Corp.

AGM

   -   Assured Guaranty Municipal Corp.

AMBAC

   -   AMBAC Financial Group, Inc.

BHAC

   -   Berkshire Hathaway Assurance Corp.

FGIC

   -   Financial Guaranty Insurance Company

NPFG

   -   National Public Finance Guaranty Corp.

XLCA

   -   XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by California municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at June 30, 2012, 54.2% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.5% to 19.5% of total investments.

 

(1) When-issued security.

 

(2) Security represents the municipal bond held by a trust that issues residual interest bonds.

 

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

 

(4) Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $380,922.

 

4

 

 

A summary of open financial instruments at June 30, 2012 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Depreciation		  
9/12    25 U.S. 10-Year Treasury Note    Short    $     (3,319,876 )    $     (3,334,375 )    $ (14,499 ) 
9/12    28 U.S. 30-Year Treasury Bond    Short      (4,122,949 )      (4,143,125 )      (20,176 ) 
            

 

 

  
             $     (34,675 ) 
            

 

 

  

At June 30, 2012, the Fund had sufficient cash and/or securities to cover commitments under these contracts.

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

At June 30, 2012, the aggregate fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in a liability position and whose primary underlying risk exposure is interest rate risk was $34,675.

The cost and unrealized appreciation (depreciation) of investments of the Fund at June 30, 2012, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     69,090,293   
  

 

 

  

Gross unrealized appreciation

    $ 7,425,415   

Gross unrealized depreciation

      (1,108,565 ) 
  

 

 

  

Net unrealized appreciation

    $ 6,316,850   
  

 

 

  

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

 

  •  

Level 1 — quoted prices in active markets for identical investments

 

  •  

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

 

  •  

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

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

At June 30, 2012, the hierarchy of inputs used in valuing the Fund’s investments and open derivative instruments, which are carried at value, were as follows:

 

Asset Description    Level 1     Level 2      Level 3      Total  

Tax-Exempt Investments

    $ —      $ 85,292,143       $ —       $ 85,292,143   

Total Investments

    $ —      $     85,292,143       $ —       $     85,292,143   
Liability Description                               

Futures Contracts

    $     (34,675 )    $ —       $ —       $ (34,675 ) 

Total

    $     (34,675 )    $ —       $ —       $ (34,675 ) 

The Fund held no investments or other financial instruments as of September 30, 2011 whose fair value was determined using Level 3 inputs. At June 30, 2012, there were no investments transferred between Level 1 and Level 2 during the fiscal year to date then ended.

For information on the Fund’s policy regarding the valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements included in its semiannual or annual report to shareholders.

 

5

 

 

Item 2. Controls and Procedures

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

(b) There have been no changes in the registrant’s internal controls over financial reporting during the fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrant’s internal control over financial reporting.

Signatures

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

 

Eaton Vance California Municipal Bond Fund II
By:  

/s/ Cynthia J. Clemson

  Cynthia J. Clemson
  President

Date: August 27, 2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:  

/s/ Cynthia J. Clemson

  Cynthia J. Clemson
  President

Date: August 27, 2012

 

By:  

/s/ Barbara E. Campbell

  Barbara E. Campbell
  Treasurer

Date: August 27, 2012