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

December 31, 2012

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

California Municipal Bond Fund II

December 31, 2012

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 166.1%

 

                                                 
Security  

Principal

Amount

(000’s omitted)

     Value  

Education — 16.9%

    

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

   $ 1,370      $ 1,538,222   

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

     395        464,240   

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

     160        183,994   

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

     70        83,784   

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

     65        77,119   

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

     380        424,509   

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

     890        1,028,911   

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

     115        141,347   

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

     1,200        1,393,464   

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

     330        379,074   

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

     210        239,240   

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

     145        160,860   

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

     405        477,313   

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

     425        498,984   

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

     450        526,446   

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

     1,000        1,151,180   
   

 

 

  
    $ 8,768,687   
   

 

 

  

Electric Utilities — 8.6%

    

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

   $ 745      $ 848,644   

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

     1,050        1,070,528   

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

     420        494,932   

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

     125        147,186   

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

     1,000        1,160,730   

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

     675        762,244   
   

 

 

  
    $ 4,484,264   
   

 

 

  

General Obligations — 14.4%

    

California, 5.50%, 11/1/35

   $ 1,300      $ 1,554,891   

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

     100        111,562   

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

     110        121,287   

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

     120        131,638   

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

     120        133,434   

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

     145        160,415   

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

     520        585,119   

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

     260        315,765   

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

     1,850        2,125,613   

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

     720        842,789   

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

     455        534,498   

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

     350        414,158   

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

     410        482,144   
   

 

 

  
    $ 7,513,313   
   

 

 

  

 

1

 

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Hospital — 16.8%

      

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

    $ 1,330       $ 1,446,827   

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

      1,425         1,556,029   

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

      475         535,506   

California Health Facilities Financing Authority, (City of Hope), 5.00%, 11/15/39

      475         539,329   

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

      750         890,955   

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

      800         896,248   

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

      1,000         1,149,590   

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

      355         383,659   

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

      555         577,999   

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

      750         751,298   
     

 

 

  
      $ 8,727,440   
     

 

 

  

Insured-Education — 7.2%

      

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

    $ 420       $ 456,952   

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

      1,000         1,087,980   

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

      2,000         2,210,560   
     

 

 

  
      $ 3,755,492   
     

 

 

  

Insured-Electric Utilities — 8.3%

      

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

    $ 1,475       $ 1,479,779   

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

      1,500         1,719,180   

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

      1,000         1,133,990   
     

 

 

  
      $ 4,332,949   
     

 

 

  

Insured-Escrowed/Prerefunded — 12.0%

      

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

    $ 1,150       $ 1,548,107   

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

      1,025         1,379,834   

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

      3,130         2,794,433   

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

      395         536,390   
     

 

 

  
      $ 6,258,764   
     

 

 

  

Insured-General Obligations — 24.2%

      

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

    $ 725       $ 815,400   

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

      7,125         1,939,639   

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

      2,525         609,333   

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

      1,500         1,669,650   

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

      6,675         1,997,360   

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

      575         597,092   

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

      1,250         1,413,862   

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

      1,040         1,167,587   

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

      3,200         2,398,464   
     

 

 

  
      $ 12,608,387   
     

 

 

  

 

2

 

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Insured-Hospital — 6.4%

      

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

    $ 1,250       $ 1,354,338   

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

      1,750         1,978,532   
     

 

 

  
      $ 3,332,870   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 7.1%

      

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

    $ 1,250       $ 1,755,513   

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

      1,750         1,957,567   
     

 

 

  
      $ 3,713,080   
     

 

 

  

Insured-Special Tax Revenue — 10.4%

      

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

    $ 1,400       $ 1,415,120   

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

      1,535         1,319,195   

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

      430         460,289   

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

      4,640         374,216   

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

      2,805         435,504   

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

      1,225         1,376,116   
     

 

 

  
      $ 5,380,440   
     

 

 

  

Insured-Transportation — 4.0%

      

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

    $ 3,520       $ 1,745,321   

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

      330         350,668   
     

 

 

  
      $ 2,095,989   
     

 

 

  

Insured-Water and Sewer — 8.5%

      

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

    $ 1,235       $ 1,317,523   

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

      100         112,728   

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

      1,600         1,803,648   

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

      445         490,799   

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

      665         690,170   
     

 

 

  
      $ 4,414,868   
     

 

 

  

Special Tax Revenue — 6.2%

      

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

    $ 1,490       $ 1,689,720   

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

      1,300         1,530,243   
     

 

 

  
      $ 3,219,963   
     

 

 

  

Transportation — 12.8%

      

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

    $ 1,190       $ 1,425,787   

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

      540         636,374   

Los Angeles Department of Airports, (Los Angeles International Airport),
5.00%, 5/15/35(1)(2)

      1,060         1,201,870   

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

      1,250         1,511,725   

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

      635         710,260   

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

      1,000         1,194,930   
     

 

 

  
      $ 6,680,946   
     

 

 

  

 

3

 

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Water and Sewer — 2.3%

      

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

    $ 1,050       $ 1,212,876   
     

 

 

  
      $ 1,212,876   
     

 

 

  

Total Tax-Exempt Investments — 166.1%
(identified cost $78,465,156)

       $ 86,500,328   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (49.3)%

       $ (25,700,749 ) 
     

 

 

  

Other Assets, Less Liabilities — (16.8)%

       $ (8,733,172 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $     52,066,407   
     

 

 

  

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 December 31, 2012, 53.1% 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 ranged from 1.5% to 19.5% of total investments.

 

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

 

(2) Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $406,870.

A summary of open financial instruments at December 31, 2012 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Appreciation		  
3/13    25 U.S. 10-Year Treasury Note    Short    $     (3,326,328 )    $     (3,319,531 )    $ 6,797   
3/13    28 U.S. 30-Year Treasury Bond    Short      (4,199,730 )      (4,130,000 )      69,730   
            

 

 

  
             $     76,527   
            

 

 

  

At December 31, 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.

 

4

 

 

At December 31, 2012, the aggregate fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in an asset position and whose primary underlying risk exposure is interest rate risk was $76,527.

The cost and unrealized appreciation (depreciation) of investments of the Fund at December 31, 2012, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $ 68,364,027   
  

 

 

  

Gross unrealized appreciation

    $ 8,930,797   

Gross unrealized depreciation

      (679,496 ) 
  

 

 

  

Net unrealized appreciation

    $     8,251,301   
  

 

 

  

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 December 31, 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

    $ —       $ 86,500,328       $ —       $ 86,500,328   

Total Investments

    $ —       $ 86,500,328       $ —       $ 86,500,328   

Futures Contracts

    $ 76,527       $ —       $ —       $ 76,527   

Total

    $     76,527       $     86,500,328       $     —       $     86,576,855   

The Fund held no investments or other financial instruments as of September 30, 2012 whose fair value was determined using Level 3 inputs. At December 31, 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:   February 22, 2013

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:   February 22, 2013

 

By:   /s/ Barbara E. Campbell
  Barbara E. Campbell
  Treasurer
Date:   February 22, 2013