Eaton Vance Ohio Municipal Income Trust

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-09149

Investment Company Act File Number

Eaton Vance Ohio 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, 2014

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

 

Eaton Vance

Ohio Municipal Income Trust

February 28, 2014

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 154.2%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Bond Bank — 6.4%

      

Ohio Economic Development Commission, (Ohio Enterprise Bond Fund), (AMT), 5.85%, 12/1/22

    $ 1,020       $ 1,042,603   

Ohio Water Development Authority, Water Pollution Control Loan Fund, (Water Quality), 5.00%, 12/1/28

      250         290,200   

Ohio Water Development Authority, Water Pollution Control Loan Fund, (Water Quality), 5.00%, 6/1/30

      210         235,639   

Rickenbacker Port Authority, (OASBO Expanded Asset Pooled Financing Program), 5.375%, 1/1/32

      975         1,026,032   
     

 

 

  
   $ 2,594,474   
     

 

 

  

Education — 20.5%

      

Miami University, 5.00%, 9/1/33

    $ 1,000       $ 1,073,360   

Ohio Higher Educational Facility Commission, (Kenyon College), 5.00%, 7/1/44

      440         452,359   

Ohio Higher Educational Facility Commission, (Kenyon College), 5.25%, 7/1/44

      1,250         1,302,200   

Ohio Higher Educational Facility Commission, (Oberlin College), 5.00%, 10/1/33

      500         544,685   

Ohio Higher Educational Facility Commission, (University of Dayton), 5.50%, 12/1/36

      1,000         1,100,300   

Ohio State University, 5.00%, 12/1/28

      480         576,941   

Ohio State University, 5.00%, 12/1/30

      1,605         1,907,077   

University of Cincinnati, 5.00%, 6/1/34

      500         532,830   

Wright State University, 5.00%, 5/1/31

      750         796,575   
     

 

 

  
   $ 8,286,327   
     

 

 

  

Electric Utilities — 2.6%

      

American Municipal Power, Inc., (AMP Fremont Energy Center), 5.00%, 2/15/32

    $ 470       $ 496,033   

Ohio Air Quality Development Authority, (Buckeye Power, Inc.), 6.00%, 12/1/40

      500         542,190   
     

 

 

  
   $ 1,038,223   
     

 

 

  

Escrowed/Prerefunded — 2.2%

      

Central Ohio Solid Waste Authority, Prerefunded to 9/1/18, 5.125%, 9/1/27

    $ 65       $ 77,056   

Columbus, Prerefunded to 7/1/14, 5.00%, 7/1/23

      500         508,375   

Maple Heights City School District, Prerefunded to 1/15/17, 5.00%, 1/15/37

      180         203,290   

Ohio State University, Escrowed to Maturity, 5.00%, 12/1/28

      20         24,836   

Ohio State University, Escrowed to Maturity, 5.00%, 12/1/30

      70         86,706   
     

 

 

  
   $ 900,263   
     

 

 

  

General Obligations — 23.2%

      

Apollo Career Center Joint Vocational School District, 5.25%, 12/1/33

    $ 335       $ 365,358   

Barberton City School District, 4.50%, 12/1/33

      900         919,710   

Beavercreek City School District, 5.00%, 12/1/30

      1,750         1,929,305   

Central Ohio Solid Waste Authority, 5.125%, 9/1/27

      1,025         1,147,159   

Columbus City School District, 5.00%, 12/1/29

      1,000         1,150,390   

Huber Heights City School District, 4.75%, 12/1/25

      595         652,412   

Maple Heights City School District, 5.00%, 1/15/37

      820         865,469   

Oregon City School District, 4.00%, 12/1/30

      1,250         1,266,087   

Symmes Township, Hamilton County, (Parkland Acquisition and Improvement), 5.25%, 12/1/37

      1,000         1,097,200   
     

 

 

  
      $ 9,393,090   
     

 

 

  

Hospital — 20.0%

      

Akron, Bath and Copley Joint Township Hospital District, (Children’s Hospital Medical Center of Akron), 5.00%, 11/15/38

    $ 560       $ 580,462   

Butler County, (Kettering Health Network Obligated Group), 5.25%, 4/1/31

      500         523,770   

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Franklin County, (Nationwide Children’s Hospital), 5.00%, 11/1/34

    $ 800       $ 835,048   

Hamilton County, (Cincinnati Children’s Hospital Medical Center), 5.00%, 5/15/34

      250         270,018   

Hancock County, (Blanchard Valley Regional Health Center), 6.25%, 12/1/34

      750         829,957   

Miami County, (Upper Valley Medical Center), 5.25%, 5/15/26

      500         517,260   

Middleburg Heights, (Southwest General Health Center), 5.25%, 8/1/36

      500         517,685   

Middleburg Heights, (Southwest General Health Center), 5.25%, 8/1/41

      800         822,736   

Montgomery County, (Catholic Health Initiatives), 5.50%, 5/1/34

      500         557,925   

Muskingum County, (Genesis HealthCare System Obligated Group), 5.00%, 2/15/33

      155         134,264   

Ohio Higher Educational Facility Commission, (Cleveland Clinic Health System), 5.50%, 1/1/39

      1,000         1,110,650   

Ohio Higher Educational Facility Commission, (Summa Health System), 5.75%, 11/15/40

      555         590,348   

Ohio Higher Educational Facility Commission, (University Hospitals Health System, Inc.), 5.00%, 1/15/27

      565         613,421   

Ohio Higher Educational Facility Commission, (University Hospitals Health System, Inc.), 5.00%, 1/15/29

      165         176,207   
     

 

 

  
      $ 8,079,751   
     

 

 

  

Housing — 6.8%

      

Ohio Housing Finance Agency, (Residential Mortgage-Backed Securities), (FNMA), (GNMA), (AMT), 4.625%, 9/1/27

    $ 175       $ 177,809   

Ohio Housing Finance Agency, (Uptown Community Partners), (AMT), (GNMA), 5.25%, 4/20/48

      2,500         2,568,575   
     

 

 

  
   $ 2,746,384   
     

 

 

  

Industrial Development Revenue — 1.3%

      

Cleveland, (Continental Airlines), (AMT), 5.375%, 9/15/27

    $ 555       $ 535,580   
     

 

 

  
   $ 535,580   
     

 

 

  

Insured-Education — 12.6%

      

Hamilton County, (University Heights Community Urban Development Corp.), (AGM), 5.00%, 6/1/30

    $ 750       $ 801,608   

Kent State University, (AGC), 5.00%, 5/1/26

      1,000         1,126,070   

Kent State University, (AGC), 5.00%, 5/1/29

      465         501,042   

Miami University, (AMBAC), 3.25%, 9/1/26

      580         575,766   

University of Akron, Series A, (AGM), 5.00%, 1/1/38

      1,500         1,563,150   

University of Akron, Series B, (AGM), 5.00%, 1/1/38

      500         521,050   
     

 

 

  
   $ 5,088,686   
     

 

 

  

Insured-Electric Utilities — 12.3%

      

American Municipal Power-Ohio, Inc. (Prairie State Energy Campus), (AGC), 5.75%, 2/15/39

    $ 1,000       $ 1,077,370   

Cleveland Public Power System, (NPFG), 0.00%, 11/15/27

      710         390,550   

Cleveland Public Power System, (NPFG), 0.00%, 11/15/38

      2,000         532,100   

Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/25

      815         537,093   

Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/26

      3,000         1,861,560   

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26

      305         279,252   

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

      200         179,702   

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

      155         135,025   
     

 

 

  
      $ 4,992,652   
     

 

 

  

Insured-Escrowed/Prerefunded — 4.4%

      

Hamilton County, (Cincinnati Children’s Hospital), (NPFG), Prerefunded to 5/15/14, 5.00%, 5/15/32

    $ 208       $ 282,904   

Hamilton County, (Cincinnati Children’s Hospital Medical Center), (NPFG), Prerefunded to 5/15/14, 5.125%, 5/15/28

      1,500         1,515,960   
     

 

 

  
      $ 1,798,864   
     

 

 

  

Insured-General Obligations — 19.1%

      

Brooklyn City School District, (AGM), 5.00%, 12/1/38

    $ 555       $ 577,378   

Buckeye Valley Local School District, (AGC), 5.00%, 12/1/36

      500         539,065   

Canal Winchester Local School District, (NPFG), 0.00%, 12/1/30

      2,455         1,225,315   

Cincinnati School District, (NPFG), 5.25%, 12/1/30

      1,000         1,194,320   

Madeira City School District, (AGM), 3.50%, 12/1/27

      1,500         1,485,105   

Milford Exempt Village School District, (AGC), 5.25%, 12/1/36

      1,750         1,919,155   

St. Marys City School District, (AGM), 5.00%, 12/1/35

      750         794,872   
     

 

 

  
      $ 7,735,210   
     

 

 

  

Insured-Hospital — 1.5%

      

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Lorain County, (Catholic Healthcare Partners), (AGM), 29.98%, 2/1/29(1)(2)(3)

    $ 485       $ 592,670   
     

 

 

  
      $ 592,670   
     

 

 

  

Insured-Special Tax Revenue — 0.2%

      

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

    $ 540       $ 68,488   
     

 

 

  
      $ 68,488   
     

 

 

  

Insured-Transportation — 7.6%

      

Cleveland, Airport System Revenue, (AGM), 5.00%, 1/1/30

    $ 600       $ 627,876   

Ohio Turnpike Commission, (NPFG), 5.50%, 2/15/24

      1,000         1,216,530   

Ohio Turnpike Commission, (NPFG), 5.50%, 2/15/26

      1,000         1,237,530   
     

 

 

  
      $ 3,081,936   
     

 

 

  

Lease Revenue/Certificates of Participation — 1.4%

      

Franklin County Convention Facilities Authority, 5.00%, 12/1/27

    $ 500       $ 554,125   
     

 

 

  
      $ 554,125   
     

 

 

  

Other Revenue — 3.7%

      

Riversouth Authority, (Lazarus Building Redevelopment), 5.75%, 12/1/27

    $ 1,000       $ 1,006,060   

Summit County Port Authority, 5.00%, 12/1/31

      445         476,733   
     

 

 

  
      $ 1,482,793   
     

 

 

  

Senior Living/Life Care — 2.2%

      

Hamilton County, (Life Enriching Communities), 5.00%, 1/1/32

    $ 375       $ 380,599   

Lorain County Port Authority, (Kendal at Oberlin), 5.00%, 11/15/30

      230         239,322   

Warren County, (Otterbein Homes Obligated Group), 5.75%, 7/1/33

      275         293,821   
     

 

 

  
      $ 913,742   
     

 

 

  

Special Tax Revenue — 2.5%

      

Green, Income Tax Revenue, (Community Learning Centers), 5.00%, 12/1/26

    $ 180       $ 207,275   

Green, Income Tax Revenue, (Community Learning Centers), 5.00%, 12/1/28

      290         329,959   

Guam, Limited Obligation Bonds, 5.625%, 12/1/29

      155         164,514   

Guam, Limited Obligation Bonds, 5.75%, 12/1/34

      170         180,175   

Virgin Islands Public Finance Authority, 6.75%, 10/1/37

      110         121,151   
     

 

 

  
   $ 1,003,074   
     

 

 

  

Transportation — 0.4%

      

Ohio Turnpike and Infrastructure Commission, 0.00%, 2/15/43

    $ 690       $ 147,432   
     

 

 

  
   $ 147,432   
     

 

 

  

Water and Sewer — 3.3%

      

Hamilton County, Sewer System, 5.00%, 12/1/32

    $ 750       $ 811,732   

Hamilton County, Sewer System, 5.00%, 12/1/38

      500         543,620   
     

 

 

  
   $ 1,355,352   
     

 

 

  

Total Tax-Exempt Investments — 154.2%
(identified cost $58,193,224)

       $ 62,389,116   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (56.2)%

  

    $ (22,725,125 ) 
     

 

 

  

Other Assets, Less Liabilities — 2.0%

  

    $ 784,562   
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

  

    $ 40,448,553   
     

 

 

  

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

 

3

 

 

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.

FNMA

   -   Federal National Mortgage Association

GNMA

   -   Government National Mortgage Association

NPFG

   -   National Public Finance Guaranty Corp.

The Trust invests primarily in debt securities issued by Ohio 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, 2014, 37.4% 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 0.9% to 17.1% of total investments.

 

(1) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be sold in certain transactions (normally to qualified institutional buyers) and remain exempt from registration. At February 28, 2014, the aggregate value of these securities is $592,670 or 1.5% of the Trust’s net assets applicable to common shares.

 

(2) Security has been issued as a leveraged residual interest bond with a variable interest rate. The stated interest rate represents the rate in effect at February 28, 2014.

 

(3) Security is subject to a shortfall agreement which may require the Trust to pay amounts to a counterparty in the event of a significant decline in the market value of the security held by the trust that issued the residual interest bond. In case of a shortfall, the maximum potential amount of payments the Trust could ultimately be required to make under the agreement is $1,455,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security held by the trust that issued the residual interest bond.

A summary of open financial instruments at February 28, 2014 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Depreciation		  
6/14    16 U.S. Long Treasury Bond    Short    $     (2,099,096 )    $     (2,129,000 )    $     (29,904 ) 

At February 28, 2014, the Trust had sufficient cash and/or securities to cover commitments under these contracts.

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

At February 28, 2014, 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 $29,904.

The cost and unrealized appreciation (depreciation) of investments of the Trust at February 28, 2014, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     58,155,190   
  

 

 

  

Gross unrealized appreciation

    $ 4,468,167   

Gross unrealized depreciation

      (234,241 ) 
  

 

 

  

Net unrealized appreciation

    $ 4,233,926   
  

 

 

  

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

 

4

 

 

•  

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 February 28, 2014, the hierarchy of inputs used in valuing the Trust’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

    $ —      $ 62,389,116       $ —       $ 62,389,116   

Total Investments

    $ —      $     62,389,116       $     —       $     62,389,116   
Liability Description                               

Futures Contracts

    $ (29,904 )    $ —       $ —       $ (29,904 ) 

Total

    $     (29,904 )    $ —       $ —       $ (29,904 ) 

The Trust held no investments or other financial instruments as of November 30, 2013 whose fair value was determined using Level 3 inputs. At February 28, 2014, 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.

 

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 Ohio Municipal Income Trust

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   April 21, 2014

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 21, 2014

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   April 21, 2014