Eaton Vance Michigan 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

811-09153

Investment Company Act File Number

Eaton Vance Michigan 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 29, 2016

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Michigan Municipal Income Trust

February 29, 2016

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 149.5%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Bond Bank — 2.2%

      

Michigan Municipal Bond Authority, 5.00%, 10/1/29

    $ 600       $ 675,960   
     

 

 

  
      $ 675,960   
     

 

 

  

Education — 6.8%

      

Michigan State University, 5.00%, 2/15/40

    $ 1,000       $ 1,117,400   

Oakland University, 5.00%, 3/1/42

      500         556,615   

Wayne State University, 5.00%, 11/15/40

      370         418,415   
     

 

 

  
      $ 2,092,430   
     

 

 

  

Electric Utilities — 8.9%

      

Holland, Electric Utility System, 5.00%, 7/1/39

    $ 1,135       $ 1,305,647   

Lansing Board of Water and Light, 5.50%, 7/1/41

      500         591,105   

Michigan Public Power Agency, 5.00%, 1/1/43

      800         858,904   
     

 

 

  
      $ 2,755,656   
     

 

 

  

Escrowed/Prerefunded — 6.8%

      

Grand Valley State University, Prerefunded to 12/1/16, 5.625%, 12/1/29

    $ 525       $ 545,606   

Grand Valley State University, Prerefunded to 12/1/16, 5.75%, 12/1/34

      525         546,100   

Michigan Hospital Finance Authority, (MidMichigan Obligated Group), Prerefunded to 6/1/19, 6.125%, 6/1/39

      500         584,680   

Monroe County Hospital Finance Authority, (Mercy Memorial Hospital Corp.), Prerefunded to 6/1/16, 5.375%, 6/1/26

      425         430,610   
     

 

 

  
      $ 2,106,996   
     

 

 

  

General Obligations — 27.3%

      

Ann Arbor Public Schools, 4.50%, 5/1/24

    $ 350       $ 374,118   

Comstock Park Public Schools, 5.125%, 5/1/31

      275         314,694   

Comstock Park Public Schools, 5.25%, 5/1/33

      220         255,666   

East Grand Rapids Public Schools, 5.00%, 5/1/39

      435         488,901   

Jenison Public Schools, 5.00%, 5/1/28

      500         575,385   

Jenison Public Schools, 5.00%, 5/1/30

      500         568,080   

Kent County, 5.00%, 1/1/25

      1,500         1,663,050   

Kent County, (AMT), 5.00%, 1/1/28

      1,000         1,151,720   

Lansing Community College, 5.00%, 5/1/30

      1,005         1,180,734   

Michigan, 5.50%, 11/1/25

      270         305,999   

Walled Lake Consolidated School District, 5.00%, 5/1/34

      365         421,170   

Watervliet Public Schools, 5.00%, 5/1/38

      1,000         1,128,500   
     

 

 

  
      $ 8,428,017   
     

 

 

  

Hospital — 22.3%

      

Grand Traverse County Hospital Finance Authority, (Munson Healthcare), 5.00%, 7/1/47

    $ 1,000       $ 1,104,330   

Michigan Finance Authority, (McLaren Health Care), 5.00%, 6/1/35

      250         280,892   

Michigan Finance Authority, (Oakwood Obligated Group), 5.00%, 11/1/32

      500         561,810   

Michigan Finance Authority, (Trinity Health Corp.), 5.00%, 12/1/27

      990         1,131,511   

Michigan Finance Authority, (Trinity Health Corp.), Prerefunded to 12/1/20, 5.00%, 12/1/27

      10         11,862   

Michigan Hospital Finance Authority, (Henry Ford Health System), 5.00%, 11/15/38

      250         256,613   

Michigan Hospital Finance Authority, (Henry Ford Health System), 5.25%, 11/15/46

      1,000         1,029,590   

Royal Oak Hospital Finance Authority, (William Beaumont Hospital), 5.00%, 9/1/39

      1,250         1,404,512   

Saginaw Hospital Finance Authority, (Covenant Medical Center, Inc.), 5.00%, 7/1/30

      1,000         1,109,550   
     

 

 

  
      $ 6,890,670   
     

 

 

  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Housing — 0.5%

      

Michigan Housing Development Authority, 4.60%, 12/1/26

    $ 135       $ 139,726   
     

 

 

  
      $ 139,726   
     

 

 

  

Industrial Development Revenue — 2.4%

      

Detroit Local Development Finance Authority, (Chrysler Corp.), 5.375%, 5/1/21

    $ 750       $ 749,955   
     

 

 

  
      $ 749,955   
     

 

 

  

Insured-Education — 4.8%

      

Ferris State University, (AGC), 5.125%, 10/1/33

    $ 570       $ 621,847   

Ferris State University, (AGC), 5.25%, 10/1/38

      500         547,730   

Wayne State University, (AGM), 5.00%, 11/15/35

      300         327,966   
     

 

 

  
      $ 1,497,543   
     

 

 

  

Insured-Electric Utilities — 3.4%

      

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

    $ 630       $ 640,666   

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/32

      250         253,302   

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

      155         155,679   
     

 

 

  
      $ 1,049,647   
     

 

 

  

Insured-Escrowed/Prerefunded — 6.6%

      

Battle Creek School District, (AGM), Prerefunded to 5/1/17, 5.00%, 5/1/37

    $ 1,105       $ 1,163,333   

Michigan Building Authority, (AGM), (FGIC), Prerefunded to 10/15/16, 0.00%, 10/15/29

      555         291,098   

Michigan Building Authority, (NPFG), Prerefunded to 10/15/16, 0.00%, 10/15/30

      1,190         593,548   
     

 

 

  
      $ 2,047,979   
     

 

 

  

Insured-General Obligations — 23.7%

      

Bay City Brownfield Redevelopment Authority, (BAM), 5.375%, 10/1/38

    $ 500       $ 559,870   

Byron Center Public Schools, (AGM), 3.75%, 5/1/26

      150         158,747   

Byron Center Public Schools, (AGM), 4.00%, 5/1/28

      240         254,282   

Detroit School District, (AGM), 5.25%, 5/1/32

      300         362,739   

Hartland Consolidated Schools, (AGM), 5.25%, 5/1/29

      1,000         1,166,240   

Livonia Public Schools, (AGM), 5.00%, 5/1/43

      910         1,018,527   

South Haven Public Schools, (AGM), 5.00%, 5/1/40

      500         570,600   

South Haven Public Schools, (BAM), 5.00%, 5/1/41

      1,200         1,348,692   

Van Dyke Public Schools, (AGM), 5.00%, 5/1/38

      1,250         1,343,975   

Westland Tax Increment Finance Authority, (BAM), 5.25%, 4/1/34

      500         552,845   
     

 

 

  
      $ 7,336,517   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 3.3%

      

Michigan Building Authority, (AGM), (FGIC), 0.00%, 10/15/29

    $ 445       $ 233,060   

Michigan Building Authority, (NPFG), 0.00%, 10/15/30

      1,610         796,708   
     

 

 

  
      $ 1,029,768   
     

 

 

  

Insured-Special Tax Revenue — 0.5%

      

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

    $ 895       $ 138,054   
     

 

 

  
      $ 138,054   
     

 

 

  

Insured-Transportation — 3.6%

      

Wayne County Airport Authority, (AGC), (AMT), 5.375%, 12/1/32

    $ 1,000       $ 1,101,550   
     

 

 

  
      $ 1,101,550   
     

 

 

  

Insured-Water and Sewer — 7.0%

      

Detroit, Sewage Disposal System, (AGC), (FGIC), 5.00%, 7/1/36

    $ 560       $ 564,362   

Grand Rapids, Water Supply System, (AGC), 5.10%, 1/1/39

      1,000         1,099,370   

Puerto Rico Aqueduct and Sewer Authority, (AGC), 5.00%, 7/1/28

      475         482,985   
     

 

 

  
      $ 2,146,717   
     

 

 

  

Lease Revenue/Certificates of Participation — 3.5%

      

Michigan Strategic Fund, (Facility for Rare Isotope Beams), 4.00%, 3/1/30

    $ 1,000       $ 1,078,700   
     

 

 

  
      $ 1,078,700   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Special Tax Revenue — 5.0%

      

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

    $ 115       $ 127,816   

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

      125         139,044   

Michigan Trunk Line Fund, 5.00%, 11/15/36

      1,000         1,161,340   

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

      110         123,776   
     

 

 

  
      $ 1,551,976   
     

 

 

  

Water and Sewer — 10.9%

      

Detroit, Water Supply System, 5.25%, 7/1/41

    $ 750       $ 820,253   

Grand Rapids, Sanitary Sewer System, 5.00%, 1/1/28

      735         943,145   

Michigan Finance Authority, (Detroit Water and Sewerage Department), (AMT), 5.00%, 7/1/44

      1,250         1,330,837   

Port Huron, Water Supply System, 5.25%, 10/1/31

      250         276,435   
     

 

 

  
      $ 3,370,670   
     

 

 

  

Total Tax-Exempt Investments — 149.5%
(identified cost $42,477,020)

       $ 46,188,531   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (2.1)%

       $ (650,165 ) 
     

 

 

  

Institutional MuniFund Term Preferred Shares, at Liquidation Value — (54.5)%

       $ (16,850,000 ) 
     

 

 

  

Other Assets, Less Liabilities — 7.1%

       $ 2,214,170   
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 30,902,536   
     

 

 

  

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 Michigan 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 29, 2016, 35.4% 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 2.4% to 14.9% of total investments.

Abbreviations:

 

AGC

   -   Assured Guaranty Corp.

AGM

   -   Assured Guaranty Municipal Corp.

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.

FGIC

   -   Financial Guaranty Insurance Company

NPFG

   -   National Public Finance Guaranty Corp.

The Trust did not have any open financial instruments at February 29, 2016.

The cost and unrealized appreciation (depreciation) of investments of the Trust at February 29, 2016, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     42,426,390   
  

 

 

  
Gross unrealized appreciation    $ 3,845,885   
Gross unrealized depreciation      (83,744 ) 
  

 

 

  

Net unrealized appreciation

    $ 3,762,141   
  

 

 

  

 

3

 

 

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 February 29, 2016, 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 Investments

    $ —       $ 46,188,531       $ —       $ 46,188,531   

Total Investments

    $     —       $     46,188,531       $     —       $     46,188,531   

The carrying amount of the Institutional MuniFund Term Preferred Shares (iMTP Shares) at February 29, 2016 approximated its fair value. If measured at fair value, iMTP Shares would have been considered as Level 2 in the fair value hierarchy at February 29, 2016.

The Trust held no investments or other financial instruments as of November 30, 2015 whose fair value was determined using Level 3 inputs. At February 29, 2016, 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.

 

4

 

 

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 Michigan Municipal Income Trust

 

By:

  

 

/s/ Payson F. Swaffield

  Payson F. Swaffield
  President
Date:   April 25, 2016

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 25, 2016

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   April 25, 2016