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, 2018

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

California Municipal Bond Fund II

June 30, 2018

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 165.8%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 20.8%

 

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

    $ 395      $ 437,948  

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

      160        176,226  

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

      70        77,050  

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

      380        395,367  

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

      60        67,856  

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

      55        62,611  

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

      330        360,373  

California Municipal Finance Authority, (Pomona College), 5.00%, 1/1/48(1)

      3,000        3,535,950  

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

      210        228,997  

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

      145        157,547  

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

      405        446,270  

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

      425        467,747  

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

      450        494,667  

University of California, 5.00%, 5/15/36(1)

      2,050        2,442,247  

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

      165        170,435  

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

      550        568,607  
     

 

 

  
   $ 10,089,898  
     

 

 

  

Electric Utilities — 4.2%

 

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

    $ 420      $ 470,782  

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

      125        139,956  

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

      1,000        1,061,810  

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

      335        346,062  
     

 

 

  
   $ 2,018,610  
     

 

 

  

Escrowed/Prerefunded — 12.7%

 

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

    $ 1,370      $ 1,395,249  

California Educational Facilities Authority, (Santa Clara University), Prerefunded to
2/1/20, 5.00%, 2/1/29

      890        939,671  

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

      200        201,942  

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

      1,400        1,456,420  

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

      720        793,224  

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

      455        501,273  

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

      350        404,583  

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

      285        294,388  

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

      140        144,109  
     

 

 

  
   $ 6,130,859  
     

 

 

  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

General Obligations — 28.8%

 

California, 5.50%, 11/1/35

    $ 1,300      $ 1,411,930  

Grossmont-Cuyamaca Community College District, (Election of 2012), 5.00%, 8/1/44(2)

      2,500        2,952,000  

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

      1,000        1,038,680  

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

      1,000        1,127,210  

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

      1,850        1,965,884  

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

      1,510        1,612,891  

San Jose Unified School District, (Election of 2012), 4.00%, 8/1/42(1)

      2,000        2,104,200  

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

      410        455,043  

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

      1,125        1,267,470  
     

 

 

  
   $ 13,935,308  
     

 

 

  

Hospital — 19.7%

 

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

    $ 775      $ 896,171  

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

      335        374,285  

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

      475        528,609  

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

      750        842,730  

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

      600        673,014  

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

      280        311,702  

California Health Facilities Financing Authority, (Sutter Health), 5.00%, 11/15/46(1)

      3,000        3,421,890  

California Public Finance Authority, (Sharp HealthCare), 5.00%, 8/1/47(1)

      1,250        1,419,950  

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

      1,000        1,071,640  
     

 

 

  
   $ 9,539,991  
     

 

 

  

Housing — 2.3%

 

California Statewide Communities Development Authority, (University of California, Irvine East Campus Apartments), 5.00%, 5/15/50

    $ 1,000      $ 1,121,550  
     

 

 

  
   $ 1,121,550  
     

 

 

  

Insured – Electric Utilities — 3.4%

 

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

    $ 1,035      $ 1,052,150  

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

      610        612,647  
     

 

 

  
   $ 1,664,797  
     

 

 

  

Insured – Escrowed/Prerefunded — 14.4%

 

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

    $ 1,750      $ 1,757,717  

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

      3,130        3,026,804  

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

      395        502,641  

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

      1,250        1,297,950  

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

      390        391,697  
     

 

 

  
   $ 6,976,809  
     

 

 

  

Insured – General Obligations — 9.1%

 

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

    $ 1,265      $ 1,454,953  

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

      3,200        2,938,400  
     

 

 

  
   $ 4,393,353  
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured – Special Tax Revenue — 4.4%

 

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

    $ 1,535      $ 1,536,458  

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

      2,675        611,639  
     

 

 

  
   $ 2,148,097  
     

 

 

  

Insured – Transportation — 5.4%

 

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

    $ 3,520      $ 2,615,712  
     

 

 

  
   $ 2,615,712  
     

 

 

  

Insured – Water and Sewer — 0.9%

 

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

    $ 445      $ 448,974  
     

 

 

  
   $ 448,974  
     

 

 

  

Lease Revenue/Certificates of Participation — 1.1%

 

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

    $ 480      $ 537,715  
     

 

 

  
   $ 537,715  
     

 

 

  

Special Tax Revenue — 11.3%

 

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

    $ 2,000      $ 2,345,980  

San Diego County Regional Transportation Commission, Sales Tax Revenue,
5.00%, 4/1/41(1)

      1,000        1,154,430  

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

      1,300        1,390,142  

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

      500        575,265  
     

 

 

  
   $ 5,465,817  
     

 

 

  

Transportation — 8.5%

 

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

    $ 1,190      $ 1,224,331  

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

      540        572,184  

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

      1,060        1,123,982  

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

      635        668,769  

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

      500        527,830  
     

 

 

  
   $ 4,117,096  
     

 

 

  

Water and Sewer — 18.8%

 

East Bay Municipal Utility District, Green Bonds, 5.00%, 6/1/42

    $ 10      $ 11,741  

East Bay Municipal Utility District, Green Bonds, 5.00%, 6/1/42(1)

      2,900        3,405,006  

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

      1,050        1,067,462  

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

      2,000        2,333,240  

San Francisco City and County Public Utilities Commission, 5.00%, 11/1/42

      40        45,193  

San Francisco City and County Public Utilities Commission, 5.00%, 11/1/42(1)

      2,000        2,259,640  
     

 

 

  
   $ 9,122,282  
     

 

 

  

Total Tax-Exempt Investments — 165.8%
(identified cost $76,648,884)

 

   

$

80,326,868

 

     

 

 

  

 

3

 

 

                        
      Value  

Institutional MuniFund Term Preferred Shares, at Liquidation Value
(net of unamortized deferred offering costs) — (29.7)%

    $ (14,393,477 ) 
  

 

 

  

Other Assets, Less Liabilities — (36.1)%

    $ (17,488,288 ) 
  

 

 

  

Net Assets Applicable to Common Shares — 100.0%

    $ 48,445,103  
  

 

 

  

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, 2018, 22.7% 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 1.6% to 13.4% of total investments.

 

(1)

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

 

(2)

When-issued security.

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.

The Fund did not have any open derivative instruments at June 30, 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.

At June 30, 2018, the hierarchy of inputs used in valuing the Fund’s investments, which are carried at value, were as follows:

 

Asset Description    Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

    $ —      $ 80,326,868      $ —      $ 80,326,868  

Total Investments

    $     —      $     80,326,868      $     —      $     80,326,868  

At June 30, 2018, there were no investments transferred between Level 1 and Level 2 during the fiscal year to date then ended.

 

4

 

 

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.

Proposed Plan of Reorganization

In April 2018, the Trustees of the Fund approved an Agreement and Plan of Reorganization whereby Eaton Vance California Municipal Bond Fund (California Municipal Bond Fund) would acquire substantially all the assets and assume substantially all the liabilities of the Fund in exchange for common shares of California Municipal Bond Fund. The proposed reorganization is subject to approval by the shareholders of the Fund.

 

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 21, 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:   August 21, 2018

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   August 21, 2018