Eaton Vance California Municipal Income Fund

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-09157

Investment Company Act File Number

Eaton Vance California Municipal Income Trust

(Exact Name of Registrant as Specified in Charter)

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

Maureen A. Gemma

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

(617) 482-8260

(Registrant’s Telephone Number, Including Area Code)

November 30

Date of Fiscal Year End

February 28, 2018

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

 

Eaton Vance

California Municipal Income Trust

February 28, 2018

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Municipal Securities — 154.7%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 11.7%

 

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

    $ 195      $ 218,739  

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

      330        367,511  

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

      745        783,770  

California Educational Facilities Authority, (Santa Clara University), 5.00%, 9/1/23

      1,600        1,794,368  

California Educational Facilities Authority, (Stanford University), 5.25%, 4/1/40

      2,000        2,608,060  

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

      120        137,647  

California Educational Facilities Authority, (University of San Francisco), Prerefunded to 10/1/21, 6.125%, 10/1/36

      115        132,473  

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

      630        689,422  

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

      415        457,504  

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

      285        313,360  

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

      810        903,191  

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

      850        946,543  

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

      895        995,339  

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

      205        214,325  

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

      690        721,816  
     

 

 

  
      $ 11,284,068  
     

 

 

  

Electric Utilities — 8.4%

      

Chula Vista, (San Diego Gas and Electric), 5.875%, 2/15/34

    $ 270      $ 283,811  

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

      2,170        2,198,058  

Northern California Power Agency, 5.25%, 8/1/24

      1,500        1,601,895  

Sacramento Municipal Utility District, 5.00%, 8/15/27

      995        1,103,236  

Sacramento Municipal Utility District, 5.00%, 8/15/28

      1,335        1,479,273  

Southern California Public Power Authority, (Tieton Hydropower), 5.00%, 7/1/35

      680        729,756  

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

      635        665,067  
     

 

 

  
      $ 8,061,096  
     

 

 

  

Escrowed/Prerefunded — 12.1%

      

California Department of Water Resources, Prerefunded to 6/1/18, 5.00%, 12/1/29

    $ 715      $ 721,800  

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

      3,135        3,232,060  

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

      2,490        2,548,888  

California Health Facilities Financing Authority, (Providence Health System), Prerefunded to 10/1/18, 6.50%, 10/1/38

      1,475        1,519,633  

Sacramento Municipal Utility District, Prerefunded to 8/15/21, 5.00%, 8/15/27

      340        376,621  

Sacramento Municipal Utility District, Prerefunded to 8/15/21, 5.00%, 8/15/28

      460        509,547  

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

      665        767,244  

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

      1,130        1,303,737  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 355      $ 371,149  

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

      275        286,270  
     

 

 

  
      $ 11,636,949  
     

 

 

  

General Obligations — 45.2%

      

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

    $ 1,500      $ 1,724,505  

California, 5.00%, 8/1/46

      2,000        2,266,820  

California, 5.50%, 11/1/35

      1,600        1,754,144  

California, 6.00%, 4/1/38

      750        785,783  

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

      1,000        1,149,320  

Escondido, 5.00%, 9/1/36

      1,000        1,131,950  

Glendale Community College District, (Election of 2016), 5.00%, 8/1/37

      2,000        2,320,560  

Illinois, 5.00%, 12/1/34

      2,000        2,052,640  

Lake Tahoe Community College District, (Election of 2014), 4.00%, 8/1/48

      2,650        2,722,742  

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

      2,000        2,241,720  

Mt. San Jacinto Community College District, (Election of 2014), 4.00%, 8/1/43

      3,000        3,119,250  

Ohlone Community College District, (Election of 2010), 4.00%, 8/1/41

      2,600        2,676,752  

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

      3,655        3,928,211  

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

      2,890        3,073,515  

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

      860        958,057  

San Luis Obispo County Community College District, (Election of 2014), 4.00%, 8/1/43

      3,555        3,690,019  

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

      650        750,672  

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

      1,100        1,266,034  

Santa Clara County, (Election of 2008), Prerefunded to 8/1/19, 5.00%, 8/1/39(1)

      3,180        3,336,456  

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

      2,150        2,440,358  
     

 

 

  
      $ 43,389,508  
     

 

 

  

Hospital — 9.9%

      

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/27

    $ 1,000      $ 1,088,000  

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/28

      190        206,680  

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

      635        707,085  

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

      910        1,009,463  

California Health Facilities Financing Authority, (Memorial Health Services), 5.00%, 10/1/33

      1,000        1,107,870  

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

      1,145        1,286,992  

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

      535        595,974  

California Health Facilities Financing Authority, (Sutter Health), 4.00%, 11/15/48

      3,500        3,559,045  
     

 

 

  
      $ 9,561,109  
     

 

 

  

Insured-Education — 1.5%

      

California Educational Facilities Authority, (Santa Clara University), (NPFG), 5.00%, 9/1/23

    $ 1,250      $ 1,401,850  
     

 

 

  
      $ 1,401,850  
     

 

 

  

Insured-Escrowed/Prerefunded — 8.1%

      

Foothill/Eastern Transportation Corridor Agency, (AGC), (AGM), Escrowed to Maturity, 0.00%, 1/1/26

    $ 5,130      $ 4,216,501  

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

      3,500        3,522,295  
     

 

 

  
      $ 7,738,796  
     

 

 

  

Insured-General Obligations — 8.1%

      

Cotati-Rohnert Park Unified School District, (BAM), 5.00%, 8/1/39

    $ 1,000      $ 1,115,140  

Oxnard School District, (Election of 2016), (BAM), 5.00%, 8/1/45

      2,455        2,794,551  

Sweetwater Union High School District, (Election of 2000), (AGM), 0.00%, 8/1/25

      4,720        3,846,328  
     

 

 

  
      $ 7,756,019  
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Special Tax Revenue — 3.2%

      

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

    $ 4,850      $ 920,384  

Successor Agency to Dinuba Redevelopment Agency, (BAM), 5.00%, 9/1/28

      370        421,112  

Successor Agency to Rosemead Community Development Commission, (BAM), 5.00%, 10/1/27

      1,440        1,693,339  
     

 

 

  
      $ 3,034,835  
     

 

 

  

Insured-Transportation — 7.0%

      

Alameda Corridor Transportation Authority, (AMBAC), 0.00%, 10/1/29

    $ 5,000      $ 3,164,250  

Alameda Corridor Transportation Authority, (NPFG), 0.00%, 10/1/31

      4,500        2,720,610  

Puerto Rico Highway and Transportation Authority, (AGC), 5.25%, 7/1/41

      740        808,657  
     

 

 

  
      $ 6,693,517  
     

 

 

  

Lease Revenue/Certificates of Participation — 1.1%

      

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

    $ 915      $ 1,025,834  
     

 

 

  
      $ 1,025,834  
     

 

 

  

Other Revenue — 0.4%

      

California Infrastructure and Economic Development Bank, (Performing Arts Center of Los Angeles), 5.00%, 12/1/32

    $ 385      $ 386,070  
     

 

 

  
      $ 386,070  
     

 

 

  

Senior Living/Life Care — 1.6%

      

ABAG Finance Authority for Nonprofit Corporations, (Episcopal Senior Communities), 6.00%, 7/1/31

    $ 290      $ 321,839  

California Statewide Communities Development Authority, (Southern California Presbyterian Homes), 7.25%, 11/15/41(2)

      600        648,762  

California Statewide Communities Development Authority, (The Redwoods, a Community of Seniors), 5.125%, 11/15/35

      535        606,455  
     

 

 

  
      $ 1,577,056  
     

 

 

  

Special Tax Revenue — 18.5%

      

Aliso Viejo Community Facilities District No. 2005-01, Special Tax Revenue, (Glenwood at Aliso Viejo), 5.00%, 9/1/30

    $ 770      $ 853,853  

Fontana Redevelopment Agency, (Jurupa Hills), 5.60%, 10/1/27

      1,590        1,595,263  

Irvine Community Facilities District No. 2013-3, (Great Park), 4.00%, 9/1/49

      1,500        1,505,370  

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/22

      240        265,661  

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/23

      480        530,803  

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/24

      240        265,145  

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/25

      335        369,739  

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/26

      240        264,631  

Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue, Green Bonds, 5.00%, 7/1/41

      20        23,181  

Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue, Green Bonds, 5.00%, 7/1/41(1)

      2,100        2,433,963  

San Francisco Bay Area Rapid Transit District, Sales Tax Revenue, Prerefunded to 7/1/20, 5.00%, 7/1/28

      2,400        2,594,496  

Santa Clara Valley Transportation Authority, Sales Tax Revenue, 5.00%, 4/1/36

      1,250        1,426,350  

South Orange County Public Financing Authority, Special Tax Revenue, (Ladera Ranch), 5.00%, 8/15/27

      485        537,356  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

South Orange County Public Financing Authority, Special Tax Revenue, (Ladera Ranch), 5.00%, 8/15/28

    $ 725      $ 797,391  

Successor Agency to La Quinta Redevelopment Agency, 5.00%, 9/1/28

      1,600        1,846,800  

Successor Agency to Union City Community Redevelopment Agency, 5.00%, 10/1/32

      1,360        1,565,061  

Successor Agency to Union City Community Redevelopment Agency, 5.00%, 10/1/36

      800        907,168  
     

 

 

  
      $ 17,782,231  
     

 

 

  

Transportation — 16.0%

      

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

    $ 1,000      $ 1,042,130  

Long Beach, Harbor Revenue, Green Bonds, (AMT), 5.00%, 5/15/43

      1,575        1,779,261  

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

      2,120        2,269,142  

Los Angeles Department of Airports, (Los Angeles International Airport), (AMT), 5.00%, 5/15/41

      1,500        1,666,275  

Los Angeles Department of Airports, (Los Angeles International Airport), (AMT), 5.375%, 5/15/30

      1,500        1,511,985  

Sacramento County, Airport System Revenue, 5.00%, 7/1/41

      1,500        1,698,360  

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

      2,760        2,938,655  

San Joaquin Hills Transportation Corridor Agency, 5.00%, 1/15/34

      2,265        2,499,858  
     

 

 

  
      $ 15,405,666  
     

 

 

  

Water and Sewer — 1.9%

      

San Mateo, Sewer Revenue, 5.00%, 8/1/36

    $ 1,700      $ 1,864,509  
     

 

 

  
      $ 1,864,509  
     

 

 

  

Total Tax-Exempt Municipal Securities — 154.7%
(identified cost $141,288,067)

       $ 148,599,113  
     

 

 

  

Taxable Municipal Securities — 4.8%

 

Security    Principal
Amount
(000’s omitted)		      Value  

Education — 2.0%

      

California Educational Facilities Authority, (Santa Clara University), 3.836%, 4/1/47

    $ 2,000      $ 1,938,920  
     

 

 

  
      $ 1,938,920  
     

 

 

  

Hospital — 2.8%

      

California Statewide Communities Development Authority, (Loma Linda University Medical Center), 6.00%, 12/1/24

    $ 2,500      $ 2,659,200  
     

 

 

  
      $ 2,659,200  
     

 

 

  

Total Taxable Municipal Securities — 4.8%
(identified cost $4,483,114)

       $ 4,598,120  
     

 

 

  

Total Investments — 159.5%
(identified cost $145,771,181)

       $ 153,197,233  
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (3.1)%

       $ (3,000,313 ) 
     

 

 

  

 

4

 

 

                                                 
                                         Value  

Institutional MuniFund Term Preferred Shares, at Liquidation Value
(net of unamortized deferred offering costs) — (48.7)%

       $ (46,821,342 ) 
     

 

 

  

Other Assets, Less Liabilities — (7.7)%

       $ (7,300,295 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 96,075,283  
     

 

 

  

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

The Trust invests primarily in debt securities issued by 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 February 28, 2018, 17.4% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 2.1% to 7.6% of total investments.

 

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

 

(2) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be sold in certain transactions in reliance on an exemption from registration (normally to qualified institutional buyers). At February 28, 2018, the aggregate value of these securities is $648,762 or 0.7% of the Trust’s net assets applicable to common shares.

Abbreviations:

 

AGC

   -   Assured Guaranty Corp.

AGM

   -   Assured Guaranty Municipal Corp.

AMBAC

   -   AMBAC Financial Group, Inc.

AMT

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

BAM

   -   Build America Mutual Assurance Co.

NPFG

   -   National Public Finance Guaranty Corp.

The Trust did not have any open derivative instruments at February 28, 2018.

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.

 

5

 

 

At February 28, 2018, the hierarchy of inputs used in valuing the Trust’s investments, which are carried at value, were as follows:

 

Asset Description    Level 1      Level 2      Level 3      Total  

Tax-Exempt Municipal Securities

    $ —      $ 148,599,113      $ —      $ 148,599,113  

Taxable Municipal Securities

      —        4,598,120        —        4,598,120  

Total Investments

    $     —      $     153,197,233      $     —      $     153,197,233  

The Trust held no investments or other financial instruments as of November 30, 2017 whose fair value was determined using Level 3 inputs. At February 28, 2018, there were no investments transferred between Level 1 and Level 2 during the fiscal year to date then ended.

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

 

6

 

 

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 Income Trust

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   April 26, 2018

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:   April 26, 2018

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   April 26, 2018