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, 2017

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

California Municipal Bond Fund II

June 30, 2017

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 159.3%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 10.4%

 

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

    $ 395      $ 456,960  

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

      160        182,816  

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

      70        79,946  

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

      380        408,511  

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

      890        970,945  

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

      115        135,801  

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

      330        370,838  

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

      210        236,584  

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

      145        163,546  

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

      405        465,438  

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

      425        486,162  

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

      450        511,587  

University of California, Prerefunded to 5/15/19, 5.25%, 5/15/39

      165        178,056  

University of California, Prerefunded to 5/15/19, 5.25%, 5/15/39

      550        593,522  
     

 

 

  
   $ 5,240,712  
     

 

 

  

Electric Utilities — 5.9%

 

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

    $ 745      $ 777,854  

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

      420        486,184  

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

      125        144,167  

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

      1,000        1,104,410  

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

      405        430,653  
     

 

 

  
   $ 2,943,268  
     

 

 

  

Escrowed/Prerefunded — 14.4%

 

California Educational Facilities Authority, (Claremont McKenna College), Prerefunded to 1/1/19, 5.00%, 1/1/39

    $ 1,370      $ 1,452,803  

California Educational Facilities Authority, (University of Southern California), Prerefunded to 10/1/18, 5.25%, 10/1/39

      1,200        1,265,172  

California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), Prerefunded to 8/15/19, 5.00%, 8/15/39

      1,400        1,517,824  

San Diego Community College District, (Election of 2002), Prerefunded to 8/1/21, 5.00%, 8/1/32

      720        829,440  

San Diego Community College District, (Election of 2006), Prerefunded to 8/1/21, 5.00%, 8/1/31

      455        524,160  

San Mateo Union High School District, (Election of 2006), Prerefunded to 9/1/23, 5.00%, 9/1/27

      350        423,370  

San Mateo Union High School District, (Election of 2006), Prerefunded to 9/1/23, 5.00%, 9/1/28

      590        713,682  

University of California, Prerefunded to 5/15/19, 5.25%, 5/15/39

      285        307,552  

Vernon, Electric System Revenue, Prerefunded to 8/1/19, 5.125%, 8/1/21

      170        179,804  
     

 

 

  
   $ 7,213,807  
     

 

 

  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

General Obligations — 38.2%

 

Alta Loma School District, (Election of 2016), 5.00%, 8/1/42

    $ 1,750      $ 2,054,290  

California, 5.00%, 10/1/31

      465        550,458  

California, 5.50%, 11/1/35

      1,300        1,475,760  

Castro Valley Unified School District, (Election of 2016), 5.00%, 8/1/41

      1,000        1,162,320  

Jurupa Unified School District, (Election of 2014), 5.00%, 8/1/37

      1,150        1,362,060  

Lodi Unified School District, (Election of 2016), 5.00%, 8/1/34

      1,365        1,619,340  

Montebello Unified School District, (Election of 2016), 5.00%, 8/1/41

      1,000        1,162,320  

Mountain View Whisman School District, (Election of 2012), 4.00%, 9/1/42(1)

      2,000        2,113,160  

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

      1,850        2,044,287  

San Bernardino Community College District, 4.00%, 8/1/30

      1,510        1,638,229  

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

      410        468,200  

San Mateo Union High School District, (Election of 2006), 5.00%, 9/1/27

      335        398,831  

San Mateo Union High School District, (Election of 2006), 5.00%, 9/1/28

      580        685,914  

Torrance Unified School District, (Election of 2008), 5.00%, 8/1/35

      1,125        1,304,190  

Ventura County Community College District, 5.00%, 8/1/29

      1,000        1,171,790  
     

 

 

  
   $ 19,211,149  
     

 

 

  

Hospital — 10.6%

 

California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%, 8/15/34

    $ 775      $ 910,067  

California Health Facilities Financing Authority, (City of Hope), 5.00%, 11/15/32

      335        379,572  

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

      475        538,455  

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

      750        862,545  

California Health Facilities Financing Authority, (St. Joseph Health System), 5.00%, 7/1/33

      600        684,924  

California Health Facilities Financing Authority, (St. Joseph Health System), 5.00%, 7/1/37

      280        317,458  

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

      1,000        1,097,050  

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

      555        556,116  
     

 

 

  
   $ 5,346,187  
     

 

 

  

Insured-Electric Utilities — 3.5%

 

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/34

    $ 1,035      $ 1,101,136  

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

      610        637,810  
     

 

 

  
   $ 1,738,946  
     

 

 

  

Insured-Escrowed/Prerefunded — 20.6%

 

Antelope Valley Community College District, (Election of 2004), (NPFG), Prerefunded to 8/1/17, 5.25%, 8/1/39

    $ 725      $ 727,835  

Carlsbad Unified School District, (Election of 2006), (NPFG), Prerefunded to 8/1/17, 5.25%, 8/1/32

      1,500        1,505,850  

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

      3,130        3,003,924  

Orange County Water District, Certificates of Participation, (NPFG), Prerefunded to 8/15/32, 5.00%, 8/15/34

      395        506,050  

Palm Springs Unified School District, (Election of 2008), (AGC), Prerefunded to 8/1/19, 5.00%, 8/1/33

      1,250        1,353,637  

Riverside Community College District, (Election of 2004), (AGM), (NPFG), Prerefunded to 8/1/17, 5.00%, 8/1/32

      1,040        1,043,838  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Sacramento Municipal Utility District, (AGM), Prerefunded to 8/15/18, 5.00%, 8/15/27

    $ 390      $ 408,205  

San Diego County Water Authority, Certificates of Participation, (AGM), Prerefunded to 5/1/18, 5.00%, 5/1/38(1)

      1,750        1,810,760  
     

 

 

  
   $ 10,360,099  
     

 

 

  

Insured-General Obligations — 8.7%

 

Coalinga-Huron Joint Unified School District, (Election of 2016), (BAM), 5.00%, 8/1/41

    $ 1,265      $ 1,468,210  

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

      3,200        2,916,864  
     

 

 

  
   $ 4,385,074  
     

 

 

  

Insured-Hospital — 3.6%

 

California Statewide Communities Development Authority, (Sutter Health), (AGM), Prerefunded to 8/15/18, 5.05%, 8/15/38(1)

    $ 1,750      $ 1,811,233  
     

 

 

  
   $ 1,811,233  
     

 

 

  

Insured-Special Tax Revenue — 4.1%

 

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

    $ 1,535      $ 1,538,454  

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

      2,675        531,389  
     

 

 

  
   $ 2,069,843  
     

 

 

  

Insured-Transportation — 4.9%

 

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

    $ 3,520      $ 2,477,482  
     

 

 

  
   $ 2,477,482  
     

 

 

  

Insured-Water and Sewer — 0.9%

 

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

    $ 445      $ 466,827  
     

 

 

  
   $ 466,827  
     

 

 

  

Lease Revenue/Certificates of Participation — 1.1%

 

California Public Works Board, 5.00%, 11/1/38

    $ 480      $ 545,678  
     

 

 

  
   $ 545,678  
     

 

 

  

Special Tax Revenue — 9.5%

 

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

    $ 1,490      $ 1,546,352  

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

      1,300        1,444,651  

Successor Agency to La Quinta Redevelopment Agency, 5.00%, 9/1/29

      500        579,190  

Successor Agency to San Diego Redevelopment Agency, 5.00%, 9/1/31

      1,000        1,183,890  
     

 

 

  
   $ 4,754,083  
     

 

 

  

Transportation — 11.4%

 

Bay Area Toll Authority, Toll Bridge Revenue, (San Francisco Bay Area), Prerefunded to 4/1/19, 5.25%, 4/1/29

    $ 1,190      $ 1,278,286  

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

      540        598,525  

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

      1,060        1,167,760  

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

      1,250        1,432,462  

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

      635        693,204  

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

      500        550,085  
     

 

 

  
   $ 5,720,322  
     

 

 

  

Water and Sewer — 11.5%

 

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

    $ 1,050      $ 1,110,700  

Rancho California Water District Financing Authority, 5.00%, 8/1/46(1)

      2,000        2,340,280  

San Diego Public Facilities Financing Authority, Sewer Revenue, 5.00%, 5/15/38

      2,000        2,343,580  
     

 

 

  
   $ 5,794,560  
     

 

 

  

 

3

 

 

                                                 
Security            Value  

Total Tax-Exempt Investments — 159.3%
(identified cost $74,733,772)

      $ 80,079,270  
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (1.8)%

 

    $ (900,072 ) 
     

 

 

  

Institutional MuniFund Term Preferred Shares, at Liquidation Value
(net of unamortized deferred offering costs) — (49.1)%

       $ (24,686,427 ) 
     

 

 

  

Other Assets, Less Liabilities — (8.4)%

       $ (4,204,538 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 50,288,233  
     

 

 

  

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

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, 2017, 29.1% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 1.7% to 17.3% of total investments.

 

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

Futures Contracts

 

Description

    Contracts      Position      Expiration
Month/Year		      Aggregate Cost     Value     Net Unrealized
Appreciation
(Depreciation)		  

Interest Rate Futures

                
U.S. 10-Year Treasury Note      15        Short        Sep-17      $ (1,883,651 )    $ (1,882,969 )    $ 682  
U.S. Long Treasury Bond      15        Short        Sep-17            (2,280,921 )          (2,305,313 )          (24,392 ) 
               

 

 

  
                $ (23,710 ) 
               

 

 

  

Abbreviations:

 

AGC

   -   Assured Guaranty Corp.

AGM

   -   Assured Guaranty Municipal Corp.

BAM

   -   Build America Mutual Assurance Co.

NPFG

   -   National Public Finance Guaranty Corp.

XLCA

   -   XL Capital Assurance, Inc.

At June 30, 2017, the Fund had sufficient cash and/or securities to cover commitments under open derivative 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 enters into U.S. Treasury futures contracts to hedge against changes in interest rates.

At June 30, 2017, the aggregate fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in an asset position and in a liability position and whose primary underlying risk exposure is interest rate risk was $682 and $24,392, respectively.

 

4

 

 

The cost and unrealized appreciation (depreciation) of investments of the Fund at June 30, 2017, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     67,254,136  
  

 

 

  

Gross unrealized appreciation

    $ 5,812,846  

Gross unrealized depreciation

      (237,712 ) 
  

 

 

  

Net unrealized appreciation

    $ 5,575,134  
  

 

 

  

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, 2017, 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

    $ —      $ 80,079,270      $ —      $ 80,079,270  

Total Investments

    $ —      $ 80,079,270      $ —      $ 80,079,270  

Futures Contracts

    $ 682      $ —      $ —      $ 682  

Total

    $ 682      $     80,079,270      $     —      $     80,079,952  
Liability Description                                

Futures Contracts

    $ (24,392 )     $ —      $ —      $ (24,392 ) 

Total

    $     (24,392 )     $ —      $ —      $ (24,392 ) 

The Fund held no investments or other financial instruments as of September 30, 2016 whose fair value was determined using Level 3 inputs. At June 30, 2017, 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.

Item 3. Exhibits

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act is attached hereto.

Signatures

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

Eaton Vance California Municipal Bond Fund II

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   August 24, 2017

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

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   August 24, 2017

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   August 24, 2017