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, 2016

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Pennsylvania Municipal Income Trust

August 31, 2016

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Municipal Securities — 154.0%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Cogeneration — 0.5%

      

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

    $ 378       $ 172,523   
     

 

 

  
   $ 172,523   
     

 

 

  

Education — 27.6%

      

Allegheny County Higher Education Building Authority, (Duquesne University), 5.00%, 3/1/29

    $ 470       $ 585,089   

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

      500         554,945   

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

      1,200         1,321,548   

Delaware County Authority, (Villanova University), 4.00%, 8/1/45

      1,000         1,109,920   

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

      750         920,857   

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

      500         550,380   

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/24

      45         54,053   

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/25

      65         79,043   

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/26

      140         172,390   

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/27

      90         110,190   

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/30

      130         157,002   

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/31

      110         131,986   

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/40

      205         241,027   

Northeastern Pennsylvania Hospital and Education Authority, (Wilkes University), 5.00%, 3/1/27

      625         762,231   

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

      440         500,214   

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

      625         691,956   

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

      600         696,876   

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

      750         876,990   

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

      250         306,558   

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

      575         651,199   
     

 

 

  
   $ 10,474,454   
     

 

 

  

Escrowed/Prerefunded — 12.3%

      

Allegheny County Higher Education Building Authority, (Duquesne University), Prerefunded to 3/1/21, 5.50%, 3/1/31

    $ 1,050       $ 1,263,150   

Chester County, Prerefunded to 7/15/19, 5.00%, 7/15/27

      395         443,344   

Daniel Boone Area School District, Prerefunded to 8/15/18, 5.00%, 8/15/32

      315         341,728   

Daniel Boone Area School District, Prerefunded to 8/15/18, 5.00%, 8/15/32

      220         238,667   

Daniel Boone Area School District, Prerefunded to 8/15/18, 5.00%, 8/15/32

      435         472,175   

Dauphin County General Authority, (Pinnacle Health System), Prerefunded to 6/1/19, 6.00%, 6/1/29

      360         411,768   

Pennsylvania Turnpike Commission, Prerefunded to 6/1/18, 5.625%, 6/1/29

      750         815,527   

Pennsylvania Turnpike Commission, Prerefunded to 6/1/19, 5.25%, 6/1/39

      65         73,059   

Pennsylvania Turnpike Commission, Prerefunded to 12/1/20, 5.35%, 12/1/30

      495         587,887   

Philadelphia School District, Prerefunded to 9/1/18, 6.00%, 9/1/38

      15         16,599   
     

 

 

  
   $ 4,663,904   
     

 

 

  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

General Obligations — 11.4%

      

Chester County, 4.00%, 7/15/29

    $ 750       $ 890,648   

Chester County, 5.00%, 7/15/27

      105         117,315   

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

      30         32,302   

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

      1,000         1,350,600   

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

      985         1,045,499   

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

      750         878,040   
     

 

 

  
      $ 4,314,404   
     

 

 

  

Hospital — 25.7%

      

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

    $ 500       $ 563,335   

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

      750         839,362   

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

      390         444,405   

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

      500         534,710   

Lehigh County General Purpose Authority, (Lehigh Valley Health Network), 4.00%, 7/1/35(2)

      500         547,705   

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

      750         848,700   

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

      1,485         1,505,166   

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

      1,095         1,263,871   

Montgomery County Higher Education and Health Authority, (Holy Redeemer Health System), 5.00%, 10/1/27

      500         592,270   

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

      250         284,878   

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

      675         756,459   

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

      250         293,803   

Southcentral Pennsylvania General Authority, (WellSpan Health Obligated Group), 5.00%, 6/1/34

      1,085         1,283,381   
     

 

 

  
      $ 9,758,045   
     

 

 

  

Housing — 1.3%

      

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

    $ 175       $ 194,698   

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

      290         290,319   
     

 

 

  
      $ 485,017   
     

 

 

  

Industrial Development Revenue — 9.4%

      

Delaware County Industrial Development Authority, (Covanta), 5.00%, 7/1/43(3)

    $ 750       $ 778,665   

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

      200         225,664   

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

      750         801,435   

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

      250         281,410   

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

      1,115         1,494,814   
     

 

 

  
      $ 3,581,988   
     

 

 

  

Insured-Education — 3.5%

      

State Public School Building Authority, (Delaware County Community College), (AGM), Prerefunded to 4/1/18, 5.00%, 10/1/29

    $ 375       $ 400,808   

State Public School Building Authority, (Delaware County Community College), (AGM), Prerefunded to 4/1/18, 5.00%, 10/1/32

      875         935,217   
     

 

 

  
      $ 1,336,025   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Electric Utilities — 3.1%

      

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

    $ 1,080       $ 1,182,017   
     

 

 

  
      $ 1,182,017   
     

 

 

  

Insured-Escrowed/Prerefunded — 13.2%

      

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

    $ 475       $ 503,719   

Bethlehem Area School District, (AGM), Prerefunded to 1/15/20, 5.25%, 1/15/25

      750         862,470   

Lycoming County Authority, (Pennsylvania College of Technology), (AGC), Prerefunded to 4/1/18, 5.50%, 10/1/37

      500         538,505   

Pennsylvania Higher Educational Facilities Authority, (Drexel University), (NPFG), Prerefunded to 11/1/17, 5.00%, 5/1/37

      1,105         1,161,675   

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

      2,000         1,946,340   
     

 

 

  
      $ 5,012,709   
     

 

 

  

Insured-General Obligations — 3.2%

      

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

    $ 25       $ 26,512   

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

      750         877,747   

Luzerne County, (AGM), 5.00%, 11/15/29

      250         294,713   
     

 

 

  
      $ 1,198,972   
     

 

 

  

Insured-Hospital — 4.9%

      

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

    $ 250       $ 326,177   

Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (AGM), Prerefunded to 7/1/18, 5.00%, 7/1/35

      1,440         1,536,912   
     

 

 

  
      $ 1,863,089   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 4.7%

      

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

    $ 500       $ 549,085   

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

      1,195         1,243,935   
     

 

 

  
      $ 1,793,020   
     

 

 

  

Insured-Special Tax Revenue — 2.5%

      

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

    $ 610       $ 692,838   

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

      1,235         238,071   
     

 

 

  
      $ 930,909   
     

 

 

  

Insured-Transportation — 9.6%

      

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

    $ 525       $ 541,485   

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

      1,005         1,008,950   

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

      1,800         2,097,252   
     

 

 

  
      $ 3,647,687   
     

 

 

  

Insured-Water and Sewer — 1.5%

      

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

    $ 500       $ 573,095   
     

 

 

  
      $ 573,095   
     

 

 

  

Senior Living/Life Care — 0.3%

      

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

    $ 100       $ 114,673   
     

 

 

  
      $ 114,673   
     

 

 

  

Transportation — 13.2%

      

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

    $ 465       $ 522,888   

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

      285         320,180   

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

      450         502,992   

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 935       $ 1,030,875   

Pennsylvania Turnpike Commission, 5.35%, 12/1/30

      935         1,073,810   

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

      410         471,652   

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

      970         1,095,993   
     

 

 

  
      $ 5,018,390   
     

 

 

  

Utilities — 1.8%

      

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

    $ 600       $ 682,464   
     

 

 

  
      $ 682,464   
     

 

 

  

Water and Sewer — 4.3%

      

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

    $ 750       $ 781,312   

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

      750         856,665   
     

 

 

  
      $ 1,637,977   
     

 

 

  

Total Tax-Exempt Municipal Securities — 154.0%
(identified cost $52,930,782)

       $ 58,441,362   
     

 

 

  

Taxable Municipal Securities — 0.0%(4)

      
Security    Principal
Amount
(000’s omitted)		      Value  

Cogeneration — 0.0%(4)

      

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

    $ 27       $ 12,003   
     

 

 

  

Total Taxable Municipal Securities — 0.0%(4)
(identified cost $26,772)

       $ 12,003   
     

 

 

  

Total Investments — 154.0%
(identified cost $52,957,554)

       $ 58,453,365   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (11.1)%

       $ (4,200,229 ) 
     

 

 

  

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

       $ (16,975,000 ) 
     

 

 

  

Other Assets, Less Liabilities — 1.8%

       $ 687,499   
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 37,965,635   
     

 

 

  

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 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, 2016, 30.0% 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 1.7% to 14.5% of total investments.

 

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

 

(2) When-issued security.

 

(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 August 31, 2016, the aggregate value of these securities is $778,665 or 2.1% of the Trust’s net assets applicable to common shares.

 

(4) Amount is less than 0.05%.

 

4

 

 

Futures Contracts

 

Description

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

Interest Rate Futures

                

U.S. Long Treasury Bond

      10         Short         Dec-16       $     (1,709,871 )    $     (1,703,750 )    $ 6,121   
               

 

 

  
                $     6,121   
               

 

 

  

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.

FGIC

   -   Financial Guaranty Insurance Company

NPFG

   -   National Public Finance Guaranty Corp.

SFMR

   -   Single Family Mortgage Revenue
 

 

At August 31, 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 August 31, 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 $6,121.

The cost and unrealized appreciation (depreciation) of investments of the Trust at August 31, 2016, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     52,867,903   
  

 

 

  

Gross unrealized appreciation

    $ 5,844,551   

Gross unrealized depreciation

      (259,089 ) 
  

 

 

  

Net unrealized appreciation

    $ 5,585,462   
  

 

 

  

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, 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

    $ —       $ 58,441,362       $ —       $ 58,441,362   

Taxable Municipal Securities

      —         12,003         —         12,003   

Total Investments

    $ —       $ 58,453,365       $ —       $ 58,453,365   

Futures Contracts

    $ 6,121       $ —       $ —       $ 6,121   

Total

    $     6,121       $     58,453,365       $     —       $     58,459,486   

 

5

 

 

The Trust held no investments or other financial instruments as of November 30, 2015 whose fair value was determined using Level 3 inputs. At August 31, 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 Pennsylvania Municipal Income Trust

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   October 24, 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:

   October 24, 2016

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer

Date:

   October 24, 2016