Eaton Vance California 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

811-09157

Investment Company Act File Number

Eaton Vance California 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

California Municipal Income Trust

February 29, 2016

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Municipal Securities — 151.9%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 11.8%

      

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

    $ 195       $ 230,478   

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

      330         390,040   

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

      745         837,641   

California Educational Facilities Authority, (Santa Clara University), 5.00%, 9/1/23

      1,600         1,943,584   

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

      235         287,370   

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

      2,490         2,766,714   

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

      630         719,649   

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

      415         482,126   

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

      285         331,592   

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

      810         973,572   

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

      850         1,014,594   

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

      895         1,060,942   

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

      1,045         1,178,394   

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

      205         234,161   
     

 

 

  
      $ 12,450,857   
     

 

 

  

Electric Utilities — 13.3%

      

Chula Vista, (San Diego Gas and Electric), 5.875%, 2/15/34

    $ 270       $ 311,634   

Chula Vista, (San Diego Gas and Electric), (AMT), 5.00%, 12/1/27

      2,275         2,329,737   

Colton Public Financing Authority, Electric System Revenue, 5.00%, 4/1/27

      1,500         1,730,475   

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

      2,170         2,389,300   

Northern California Power Agency, 5.25%, 8/1/24

      1,500         1,693,890   

Sacramento Municipal Utility District, 5.00%, 8/15/27

      1,335         1,597,234   

Sacramento Municipal Utility District, 5.00%, 8/15/28

      1,795         2,145,240   

Southern California Public Power Authority, (Tieton Hydropower), 5.00%, 7/1/35

      680         774,540   

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

      900         999,711   
     

 

 

  
      $ 13,971,761   
     

 

 

  

Escrowed/Prerefunded — 6.6%

      

California Department of Water Resources, Prerefunded to 6/1/18, 5.00%, 12/1/29

    $ 715       $ 785,141   

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

      3,135         3,509,946   

California Health Facilities Financing Authority, (Providence Health System), Prerefunded to 10/1/18, 6.50%, 10/1/38

      1,475         1,693,669   

Tustin Community Facilities District, Prerefunded to 9/1/17, 6.00%, 9/1/37

      500         540,045   

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

      400         439,844   
     

 

 

  
      $ 6,968,645   
     

 

 

  

General Obligations — 25.5%

      

California, 5.00%, 10/1/31

    $ 1,885       $ 2,274,686   

California, 5.50%, 11/1/35

      1,600         1,899,648   

California, 6.00%, 4/1/38

      750         861,795   

Escondido, 5.00%, 9/1/36

      1,000         1,188,000   

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

      3,655         4,187,241   

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

      2,890         3,181,948   

San Dieguito Union High School District, (Election of 2012), 4.00%, 8/1/30

      1,545         1,713,235   

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

      860         1,017,664   

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

      1,315         1,620,948   

San Mateo Union High School District, (Election of 2006), 5.00%, 9/1/28

      2,230         2,721,871   

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Santa Clara County, (Election of 2008), 5.00%, 8/1/39(1)(2)

    $ 3,180       $ 3,579,980   

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

      2,150         2,558,522   
     

 

 

  
      $ 26,805,538   
     

 

 

  

Hospital — 13.4%

      

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/27

    $ 1,000       $ 1,183,820   

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/28

      190         222,720   

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

      635         724,287   

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

      910         1,030,784   

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

      2,000         2,352,760   

California Health Facilities Financing Authority, (Memorial Health Services), 5.00%, 10/1/33

      1,000         1,154,270   

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

      1,145         1,339,994   

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

      535         619,493   

California Statewide Communities Development Authority, (John Muir Health),
5.00%, 8/15/34

      600         612,336   

Torrance, (Torrance Memorial Medical Center), 5.50%, 6/1/31

      1,900         1,933,497   

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

      2,780         2,871,406   
     

 

 

  
      $ 14,045,367   
     

 

 

  

Insured-Education — 1.5%

      

California Educational Facilities Authority, (Santa Clara University), (NPFG), 5.00%, 9/1/23

    $ 1,250       $ 1,518,425   
     

 

 

  
      $ 1,518,425   
     

 

 

  

Insured-Electric Utilities — 2.8%

      

Glendale, Electric System Revenue, (AGC), 5.00%, 2/1/31

    $ 2,790       $ 2,985,495   
     

 

 

  
      $ 2,985,495   
     

 

 

  

Insured-Escrowed/Prerefunded — 10.0%

      

Coast Community College District, (Election of 2002), (AGM), Prerefunded to 8/1/16, 0.00%, 8/1/34

    $ 6,485       $ 2,446,791   

Coast Community College District, (Election of 2002), (AGM), Prerefunded to 8/1/16, 0.00%, 8/1/35

      4,825         1,721,464   

Foothill/Eastern Transportation Corridor Agency, (AGC), (AGM), Escrowed to Maturity, 0.00%, 1/1/26

      5,130         4,211,627   

Riverside Community College District, (Election of 2004), (AGM), (NPFG), Prerefunded to 8/1/17, 5.00%, 8/1/32

      2,005         2,135,064   
     

 

 

  
      $ 10,514,946   
     

 

 

  

Insured-General Obligations — 4.6%

      

Cotati-Rohnert Park Unified School District, (BAM), 5.00%, 8/1/39

    $ 1,000       $ 1,144,520   

Sweetwater Union High School District, (Election of 2000), (AGM), 0.00%, 8/1/25

      4,720         3,679,712   
     

 

 

  
      $ 4,824,232   
     

 

 

  

Insured-Hospital — 7.7%

      

California Health Facilities Financing Authority, (Kaiser Permanente), (BHAC),
5.00%, 4/1/37

    $ 2,900       $ 2,912,557   

California Statewide Communities Development Authority, (Sutter Health), (AMBAC), (BHAC), 5.00%, 11/15/38(1)

      5,000         5,196,200   
     

 

 

  
      $ 8,108,757   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 7.8%

      

Anaheim Public Financing Authority, (Public Improvements), (AGM), 0.00%, 9/1/17

    $ 4,410       $ 4,355,625   

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

      3,500         3,796,905   
     

 

 

  
      $ 8,152,530   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Special Tax Revenue — 2.7%

      

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

    $ 4,850       $ 748,112   

Successor Agency to Dinuba Redevelopment Agency, (BAM), 5.00%, 9/1/28

      370         438,195   

Successor Agency to Hawthorne Community Redevelopment Agency, (AGM), 5.00%, 9/1/32

      1,385         1,637,749   
     

 

 

  
      $ 2,824,056   
     

 

 

  

Insured-Transportation — 8.6%

      

Alameda Corridor Transportation Authority, (AMBAC), 0.00%, 10/1/29

    $ 5,000       $ 2,972,000   

Alameda Corridor Transportation Authority, (NPFG), 0.00%, 10/1/31

      4,500         2,582,190   

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

      740         758,300   

San Jose Airport, (AGM), (AMBAC), (BHAC), (AMT), 5.00%, 3/1/37

      1,275         1,323,348   

San Jose Airport, (AGM), (AMBAC), (BHAC), (AMT), 6.00%, 3/1/47

      1,350         1,416,744   
     

 

 

  
      $ 9,052,582   
     

 

 

  

Lease Revenue/Certificates of Participation — 1.0%

      

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

    $ 915       $ 1,056,496   
     

 

 

  
      $ 1,056,496   
     

 

 

  

Other Revenue — 0.4%

      

California Infrastructure and Economic Development Bank, (Performing Arts Center of Los Angeles), 5.00%, 12/1/32

    $ 385       $ 408,027   
     

 

 

  
      $ 408,027   
     

 

 

  

Senior Living/Life Care — 2.4%

      

ABAG Finance Authority for Nonprofit Corporations, (Episcopal Senior Communities),
6.00%, 7/1/31

    $ 290       $ 332,381   

California Statewide Communities Development Authority, (Southern California Presbyterian Homes), 7.25%, 11/15/41(3)

      600         697,482   

California Statewide Communities Development Authority, (Southern California Presbyterian Homes), Prerefunded to 11/15/16, 4.75%, 11/15/26(3)

      175         180,386   

California Statewide Communities Development Authority, (Southern California Presbyterian Homes), Prerefunded to 11/15/16, 4.875%, 11/15/36(3)

      700         722,169   

California Statewide Communities Development Authority, (The Redwoods, a Community of Seniors), 5.125%, 11/15/35

      535         632,097   
     

 

 

  
      $ 2,564,515   
     

 

 

  

Special Tax Revenue — 16.1%

      

Aliso Viejo Community Facilities District No. 2005-01, Special Tax Revenue, (Glenwood at Aliso Viejo), 5.00%, 9/1/30

    $ 770       $ 877,615   

Brentwood Infrastructure Financing Authority, 5.00%, 9/2/26

      285         293,978   

Brentwood Infrastructure Financing Authority, 5.00%, 9/2/34

      460         474,274   

Fontana Redevelopment Agency, (Jurupa Hills), 5.60%, 10/1/27

      1,590         1,597,107   

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/22

      240         282,931   

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/23

      480         559,618   

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/24

      240         277,039   

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/25

      335         384,007   

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/26

      240         273,552   

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

      2,400         2,775,624   

Santa Clara Valley Transportation Authority, Sales Tax Revenue, 5.00%, 4/1/34

      1,500         1,799,115   

Santa Clara Valley Transportation Authority, Sales Tax Revenue, 5.00%, 4/1/36

      1,250         1,486,975   

South Orange County Public Financing Authority, Special Tax Revenue, (Ladera Ranch),
5.00%, 8/15/27

      485         561,499   

South Orange County Public Financing Authority, Special Tax Revenue, (Ladera Ranch),
5.00%, 8/15/28

      725         836,295   

Successor Agency to La Quinta Redevelopment Agency, 5.00%, 9/1/28

      1,600         1,918,768   

Successor Agency to Union City Community Redevelopment Agency, 5.00%, 10/1/32

      1,360         1,626,478   

Successor Agency to Union City Community Redevelopment Agency, 5.00%, 10/1/36

      800         942,672   
     

 

 

  
      $ 16,967,547   
     

 

 

  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Transportation — 13.8%

      

Bay Area Toll Authority, Toll Bridge Revenue, (San Francisco Bay Area), Prerefunded to 4/1/16, 5.00%, 4/1/31

    $ 2,000       $ 2,008,720   

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

      1,000         1,138,130   

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

      2,120         2,412,772   

Los Angeles Department of Airports, (Los Angeles International Airport), (AMT),
5.00%, 5/15/41

      1,500         1,707,435   

Los Angeles Department of Airports, (Los Angeles International Airport), (AMT),
5.375%, 5/15/30

      1,500         1,628,325   

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

      2,760         3,098,045   

San Joaquin Hills Transportation Corridor Agency, 5.00%, 1/15/34

      2,265         2,531,228   
     

 

 

  
      $ 14,524,655   
     

 

 

  

Water and Sewer — 1.9%

      

California Department of Water Resources, 5.00%, 12/1/29

    $ 25       $ 27,501   

San Mateo, Sewer Revenue, 5.00%, 8/1/36

      1,700         1,953,028   
     

 

 

  
      $ 1,980,529   
     

 

 

  

Total Tax-Exempt Municipal Securities — 151.9%
(identified cost $144,892,853)

   

    $ 159,724,960   
     

 

 

  

Taxable Municipal Securities — 1.8%

      
Security   

Principal

Amount
(000’s omitted)

      Value  

Hospital — 1.8%

      

California Statewide Communities Development Authority, (Loma Linda University Medical Center), 6.00%, 12/1/24

    $ 1,750       $ 1,920,170   
     

 

 

  

Total Taxable Municipal Securities — 1.8%
(identified cost $1,750,000)

       $ 1,920,170   
     

 

 

  

Corporate Bonds & Notes — 0.7%

      
Security   

Principal

Amount
(000’s omitted)

      Value  

Hospital — 0.7%

      

Dignity Health, 3.812%, 11/1/24

    $ 720       $ 754,910   
     

 

 

  

Total Corporate Bonds & Notes — 0.7%
(identified cost $720,000)

       $ 754,910   
     

 

 

  

Total Investments — 154.4%
(identified cost $147,362,853)

       $ 162,400,040   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (2.8)%

       $ (3,000,117 ) 
     

 

 

  

Institutional MuniFund Term Preferred Shares, at Liquidation Value — (44.7)%

       $ (46,975,000 ) 
     

 

 

  

Other Assets, Less Liabilities — (6.9)%

       $ (7,254,192 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 105,170,731   
     

 

 

  

 

4

 

 

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 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 February 29, 2016, 29.5% 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 0.5% to 16.5% 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 $2,017,752.

 

(3) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be sold in certain transactions in reliance on an exemption from registration (normally to qualified institutional buyers). At February 29, 2016, the aggregate value of these securities is $1,600,037 or 1.5% of the Trust’s net assets applicable to common shares.

Futures Contracts

 

Description

    Contracts      Position      Expiration
Month/Year		      Aggregate Cost     Value     Net Unrealized
Appreciation		  
Interest Rate Futures                

U.S. 10-Year Treasury Note

      38         Short         Jun-16       $     (4,986,538 )    $     (4,959,594 )    $     26,944   

U.S. Long Treasury Bond

      29         Short         Jun-16         (4,794,688 )      (4,771,406 )      23,282   
               

 

 

  
                $ 50,226   
               

 

 

  

Abbreviations:

 

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.

BAM

   -   Build America Mutual Assurance Co.

BHAC

   -   Berkshire Hathaway Assurance Corp.

CIFG

   -   CIFG Assurance North America, Inc.

NPFG

   -   National Public Finance Guaranty Corp.

At February 29, 2016, the Trust had sufficient cash and/or securities to cover commitments under open derivative 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 enters into U.S. Treasury futures contracts to hedge against changes in interest rates.

At February 29, 2016, 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 $50,226.

 

5

 

 

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

    $  135,130,762   
  

 

 

  

Gross unrealized appreciation

    $ 15,810,068   

Gross unrealized depreciation

      (375,790 ) 
  

 

 

  

Net unrealized appreciation

    $ 15,434,278   
  

 

 

  

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 and open derivative instruments, which are carried at value, were as follows:

 

Asset Description    Level 1      Level 2      Level 3      Total  

Tax-Exempt Municipal Securities

    $ —       $ 159,724,960       $ —       $ 159,724,960   

Taxable Municipal Securities

      —         1,920,170         —         1,920,170   

Corporate Bonds & Notes

      —         754,910         —         754,910   

Total Investments

    $ —       $ 162,400,040       $ —       $ 162,400,040   

Futures Contracts

    $ 50,226       $ —       $ —       $ 50,226   

Total

    $     50,226       $     162,400,040       $     —       $     162,450,266   

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.

 

6

 

 

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 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