Eaton Vance Pennsylvania 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

811-09151

Investment Company Act File Number

Eaton Vance Pennsylvania 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

August 31, 2014

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Pennsylvania Municipal Income Trust

August 31, 2014

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 155.5%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Cogeneration — 1.4%

      

Northampton County Industrial Development Authority, (Northampton Generating), 5.00%, 12/31/23(1)

    $ 378       $ 334,148   

Pennsylvania Economic Development Financing Authority, (Colver), (AMT), 5.125%, 12/1/15

      175         178,899   
     

 

 

  
      $ 513,047   
     

 

 

  

Education — 27.3%

      

Allegheny County Higher Education Building Authority, (Duquesne University), 5.50%, 3/1/31

    $ 1,050       $ 1,187,854   

Bucks County Industrial Development Authority, (George School), 5.00%, 9/15/39

      500         539,555   

Cumberland County Municipal Authority, (Dickinson College), 5.00%, 11/1/39

      1,200         1,298,892   

Northampton County General Purpose Authority, (Lafayette College), 5.00%, 11/1/32

      750         867,187   

Northampton County General Purpose Authority, (Lehigh University), 5.00%, 11/15/39

      500         539,615   

Pennsylvania Higher Educational Facilities Authority, (Saint Joseph’s University), 5.00%, 11/1/40

      440         466,422   

Pennsylvania Higher Educational Facilities Authority, (Temple University), 5.00%, 4/1/35

      750         827,280   

Pennsylvania Higher Educational Facilities Authority, (Thomas Jefferson University), 5.00%, 3/1/40

      625         670,444   

Pennsylvania Higher Educational Facilities Authority, (Thomas Jefferson University), 5.00%, 3/1/42

      600         651,240   

Pennsylvania Higher Educational Facilities Authority, (Ursinus College), 5.00%, 1/1/29

      560         615,636   

Pennsylvania Higher Educational Facilities Authority, (Ursinus College), 5.00%, 1/1/30

      750         828,720   

State Public School Building Authority, (Northampton County Area Community College), 5.50%, 3/1/31

      750         843,323   

Swarthmore Borough Authority, (Swarthmore College), 5.00%, 9/15/38

      250         285,200   

Washington County Industrial Development Authority, (Washington and Jefferson College), 5.25%, 11/1/30

      575         630,206   
     

 

 

  
      $ 10,251,574   
     

 

 

  

General Obligations — 13.0%

      

Chester County, 5.00%, 7/15/27

    $ 500       $ 578,985   

Daniel Boone Area School District, 5.00%, 8/15/32

      1,000         1,109,840   

Delaware Valley Regional Finance Authority, 5.75%, 7/1/32

      1,000         1,226,660   

Philadelphia School District, 6.00%, 9/1/38

      1,000         1,104,280   

West York Area School District, 5.00%, 4/1/33

      750         850,358   
     

 

 

  
      $ 4,870,123   
     

 

 

  

Hospital — 23.3%

      

Allegheny County Hospital Development Authority, (University of Pittsburgh Medical Center), 5.50%, 8/15/34

    $ 500       $ 571,595   

Chester County Health and Education Facilities Authority, (Jefferson Health System), 5.00%, 5/15/40

      750         804,727   

Dauphin County General Authority, (Pinnacle Health System), 6.00%, 6/1/29

      750         877,890   

Lehigh County General Purpose Authority, (Lehigh Valley Health Network), 4.00%, 7/1/33

      500         513,880   

Lycoming County Authority, (Susquehanna Health System), 5.75%, 7/1/39

      750         800,715   

Monroe County Hospital Authority, (Pocono Medical Center), 5.25%, 1/1/43

      1,485         1,524,976   

Montgomery County Higher Education and Health Authority, (Abington Memorial Hospital Obligated Group), 5.00%, 6/1/31

      1,095         1,200,985   

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Northampton County General Purpose Authority, (Saint Luke’s Hospital), 5.50%, 8/15/33

    $ 250       $ 269,985   

Pennsylvania Higher Educational Facilities Authority, (University of Pennsylvania Health System), 6.00%, 8/15/26(2)

      1,000         1,159,470   

Pennsylvania Higher Educational Facilities Authority, (UPMC Health System), 5.00%, 5/15/31

      675         733,705   

South Fork Municipal Authority, (Conemaugh Health System), Prerefunded to 7/1/20, 5.50%, 7/1/29

      250         273,285   
     

 

 

  
      $ 8,731,213   
     

 

 

  

Housing — 6.6%

      

Allegheny County Residential Finance Authority, SFMR, (AMT), 4.95%, 11/1/37

    $ 305       $ 311,249   

Allegheny County Residential Finance Authority, SFMR, (AMT), 5.00%, 5/1/35

      850         862,333   

East Hempfield Township Industrial Development Authority, (Student Services, Inc.), 5.00%, 7/1/39

      175         182,599   

Pennsylvania Housing Finance Agency, SFMR, (AMT), 4.70%, 10/1/37

      600         606,276   

Pennsylvania Housing Finance Agency, SFMR, (AMT), 4.75%, 10/1/25

      470         500,879   
     

 

 

  
      $ 2,463,336   
     

 

 

  

Industrial Development Revenue — 8.5%

      

Luzerne County Industrial Development Authority, (Pennsylvania-American Water Co.), 5.50%, 12/1/39

    $ 200       $ 223,464   

Montgomery County Industrial Development Authority, (Aqua Pennsylvania, Inc.), (AMT), 5.25%, 7/1/42

      750         793,275   

Pennsylvania Economic Development Financing Authority, (Pennsylvania-American Water Co.), 6.20%, 4/1/39

      250         289,807   

Pennsylvania Economic Development Financing Authority, (Procter & Gamble Paper Products Co.), (AMT), 5.375%, 3/1/31

      1,115         1,372,264   

Pennsylvania Economic Development Financing Authority, (Waste Management, Inc.), (AMT), 5.10%, 10/1/27

      500         519,535   
     

 

 

  
      $ 3,198,345   
     

 

 

  

Insured-Education — 8.3%

      

Lycoming County Authority, (Pennsylvania College of Technology), (AGC), 5.50%, 10/1/37

    $ 500       $ 535,965   

Pennsylvania Higher Educational Facilities Authority, (Drexel University), (NPFG), 5.00%, 5/1/37

      1,105         1,209,577   

State Public School Building Authority, (Delaware County Community College), (AGM), 5.00%, 10/1/29

      375         417,180   

State Public School Building Authority, (Delaware County Community College), (AGM), 5.00%, 10/1/32

      875         961,083   
     

 

 

  
      $ 3,123,805   
     

 

 

  

Insured-Electric Utilities — 2.7%

      

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

    $ 1,080       $ 1,006,830   
     

 

 

  
      $ 1,006,830   
     

 

 

  

Insured-Escrowed/Prerefunded — 9.5%

      

Pennsylvania Turnpike Commission, Oil Franchise Tax, (AMBAC), Escrowed to Maturity, 4.75%, 12/1/27

    $ 1,600       $ 1,672,608   

Westmoreland Municipal Authority, (FGIC), Escrowed to Maturity, 0.00%, 8/15/19

      2,000         1,879,920   
     

 

 

  
      $ 3,552,528   
     

 

 

  

Insured-General Obligations — 6.0%

  

Beaver County, (AGM), 5.55%, 11/15/31

    $ 475       $ 532,000   

Beaver County, (AGM), Prerefunded to 11/15/17, 5.55%, 11/15/31

      25         28,956   

Bethlehem Area School District, (AGM), 5.25%, 1/15/25

      750         849,172   

Laurel Highlands School District, (AGM), 5.00%, 2/1/37

      750         829,200   
     

 

 

  
      $ 2,239,328   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Hospital — 4.9%

      

Allegheny County Hospital Development Authority, (UPMC Health System), (NPFG), 6.00%, 7/1/24

    $ 250       $ 316,773   

Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (AGM), 5.00%, 7/1/35

      1,440         1,524,168   
     

 

 

  
      $ 1,840,941   
     

 

 

  

Insured-Industrial Development Revenue — 1.4%

      

Delaware County Industrial Development Authority, (Aqua Pennsylvania, Inc.), (NPFG), (AMT), 5.00%, 11/1/36

    $ 525       $ 543,853   
     

 

 

  
      $ 543,853   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 4.8%

      

Commonwealth Financing Authority, (AGC), 5.00%, 6/1/31

    $ 500       $ 557,965   

Philadelphia Authority for Industrial Development, (One Benjamin Franklin), (AGM), 4.75%, 2/15/27

      1,195         1,255,252   
     

 

 

  
      $ 1,813,217   
     

 

 

  

Insured-Special Tax Revenue — 2.2%

      

Pittsburgh and Allegheny County Sports & Exhibition Authority, Sales Tax Revenue, (AGM), 5.00%, 2/1/31

    $ 610       $ 666,211   

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

      1,235         168,825   
     

 

 

  
      $ 835,036   
     

 

 

  

Insured-Transportation — 8.7%

      

Philadelphia, Airport Revenue, (AGM), (AMT), 5.00%, 6/15/27

    $ 525       $ 569,541   

Philadelphia Parking Authority, (AMBAC), 5.25%, 2/15/29

      1,005         1,008,628   

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

      1,800         1,689,192   
     

 

 

  
      $ 3,267,361   
     

 

 

  

Insured-Water and Sewer — 1.5%

      

Bucks County Water and Sewer Authority, (AGM), 5.00%, 12/1/35

    $ 500       $ 549,295   
     

 

 

  
      $ 549,295   
     

 

 

  

Senior Living/Life Care — 2.4%

      

Cliff House Trust, (AMT), 6.625%, 6/1/27(3)

    $ 1,000       $ 384,120   

Lancaster Industrial Development Authority, (Garden Spot Village), 5.375%, 5/1/28

      100         107,258   

Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/24

      200         205,984   

Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/30

      200         203,584   
     

 

 

  
      $ 900,946   
     

 

 

  

Special Tax Revenue — 0.3%

  

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

    $ 110       $ 126,534   
     

 

 

  
      $ 126,534   
     

 

 

  

Transportation — 16.8%

      

Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/35

    $ 465       $ 505,404   

Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/40

      285         306,720   

Pennsylvania Economic Development Financing Authority, (Amtrak), (AMT), 5.00%, 11/1/41

      450         483,516   

Pennsylvania Turnpike Commission, 5.25%, 6/1/39

      1,000         1,115,600   

Pennsylvania Turnpike Commission, 5.35%, (0.00% until 12/1/15), 12/1/30

      1,430         1,497,353   

Pennsylvania Turnpike Commission, 5.625%, 6/1/29

      750         848,430   

Philadelphia, Airport Revenue, (AMT), 5.00%, 6/15/23

      410         466,990   

Philadelphia, Airport Revenue, (AMT), 5.00%, 6/15/27

      970         1,066,078   
     

 

 

  
      $ 6,290,091   
     

 

 

  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Utilities — 1.8%

      

Philadelphia Gas Works, 5.25%, 8/1/40

    $ 600       $ 684,852   
     

 

 

  
      $ 684,852   
     

 

 

  

Water and Sewer — 4.1%

      

Harrisburg Water Authority, 5.25%, 7/15/31

    $ 750       $ 721,928   

Philadelphia, Water and Wastewater Revenue, 5.00%, 1/1/36

      750         823,935   
     

 

 

  
      $ 1,545,863   
     

 

 

  

Total Tax-Exempt Investments — 155.5%
(identified cost $54,381,187)

       $ 58,348,118   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (56.4)%

  

    $ (21,175,341 ) 
     

 

 

  

Other Assets, Less Liabilities — 0.9%

  

    $ 342,491   
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

  

    $ 37,515,268   
     

 

 

  

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.

AMT

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

CIFG

   -   CIFG Assurance North America, Inc.

FGIC

   -   Financial Guaranty Insurance Company

NPFG

   -   National Public Finance Guaranty Corp.

SFMR

   -   Single Family Mortgage Revenue

The Trust invests primarily in debt securities issued by Pennsylvania 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 August 31, 2014, 32.2% 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 2.9% to 14.0% of total investments.

 

(1) Represents a payment-in-kind security which may pay interest in additional principal at the issuer’s discretion.

 

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

 

(3) Defaulted bond.

A summary of open financial instruments at August 31, 2014 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Depreciation		  
12/14    50 U.S. Long Treasury Bond    Short    $     (6,949,909 )    $     (7,004,688 )    $     (54,779 ) 

At August 31, 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 August 31, 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 $54,779.

 

4

 

 

The cost and unrealized appreciation (depreciation) of investments of the Trust at August 31, 2014, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     53,401,103   
  

 

 

  

Gross unrealized appreciation

    $ 4,750,920   

Gross unrealized depreciation

      (553,905 ) 
  

 

 

  

Net unrealized appreciation

    $ 4,197,015   
  

 

 

  

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 August 31, 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

    $ —      $ 58,348,118       $ —       $ 58,348,118   

Total Investments

    $ —      $     58,348,118       $ —       $     58,348,118   
Liability Description                               

Futures Contracts

    $ (54,779 )    $ —       $ —       $ (54,779 ) 

Total

    $     (54,779 )    $ —       $     —       $ (54,779 ) 

The Trust held no investments or other financial instruments as of November 30, 2013 whose fair value was determined using Level 3 inputs. At August 31, 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 Pennsylvania Municipal Income Trust

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   October 27, 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:   October 27, 2014

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   October 27, 2014