Eaton Vance New Jersey 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

811-09155

Investment Company Act File Number

Eaton Vance New Jersey 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, 2017

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

New Jersey Municipal Income Trust

August 31, 2017

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Municipal Securities — 155.2%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 13.8%

 

Camden County Improvement Authority, (Rowan University School of Osteopathic Medicine), 5.00%, 12/1/32

    $ 1,270      $ 1,443,165  

New Jersey Educational Facilities Authority, (Kean University), 5.50%, 9/1/36

      1,730        1,862,760  

New Jersey Educational Facilities Authority, (Montclair State University), 5.00%, 7/1/33

      620        710,501  

New Jersey Educational Facilities Authority, (Montclair State University), 5.00%, 7/1/34

      380        433,937  

New Jersey Educational Facilities Authority, (Ramapo College), 5.00%, 7/1/37

      640        706,867  

New Jersey Educational Facilities Authority, (Ramapo College), 5.00%, 7/1/40

      1,230        1,386,825  

New Jersey Educational Facilities Authority, (University of Medicine and Dentistry), Prerefunded to 6/1/19, 7.50%, 12/1/32

      965        1,076,072  

Rutgers State University, 5.00%, 5/1/33

      1,000        1,145,510  
     

 

 

  
   $ 8,765,637  
     

 

 

  

Escrowed/Prerefunded — 26.1%

 

Monmouth County Improvement Authority, Prerefunded to 1/15/21, 5.00%, 1/15/28

    $ 1,510      $ 1,712,219  

Monmouth County Improvement Authority, Prerefunded to 1/15/21, 5.00%, 1/15/30

      1,455        1,649,854  

New Jersey Economic Development Authority, (Duke Farms Foundation), Prerefunded to 7/1/19, 5.00%, 7/1/48

      2,040        2,196,386  

New Jersey Economic Development Authority, (School Facilities Construction), Prerefunded to 6/15/19, 5.25%, 12/15/33

      105        113,361  

New Jersey Health Care Facilities Financing Authority, (AHS Hospital Corp.), Prerefunded to 7/1/18, 5.00%, 7/1/27

      2,190        2,265,840  

New Jersey Health Care Facilities Financing Authority, (Chilton Memorial Hospital), Prerefunded to 7/1/19, 5.75%, 7/1/39

      915        994,450  

New Jersey Health Care Facilities Financing Authority, (Hospital Asset Transformation Program), Prerefunded to 10/1/18, 5.25%, 10/1/38

      380        398,434  

New Jersey Health Care Facilities Financing Authority, (Palisades Medical Center), Prerefunded to 7/1/23, 5.25%, 7/1/31

      205        250,799  

New Jersey Health Care Facilities Financing Authority, (Robert Wood Johnson University Hospital), Prerefunded to 1/1/20, 5.00%, 7/1/31

      1,000        1,095,420  

New Jersey Turnpike Authority, Prerefunded to 1/1/19, 5.25%, 1/1/40

      3,600        3,812,508  

North Hudson Sewerage Authority, Prerefunded to 6/1/22, 5.00%, 6/1/29

      55        64,744  

Rutgers State University, Prerefunded to 5/1/19, 5.00%, 5/1/39

      1,900        2,032,601  
     

 

 

  
   $ 16,586,616  
     

 

 

  

General Obligations — 5.8%

 

Edgewater Board of Education, 4.00%, 3/1/37

    $ 1,160      $ 1,264,818  

Jersey City, 4.00%, 11/1/34

      1,000        1,083,390  

Jersey City, 4.00%, 11/1/35

      500        540,330  

Monmouth County Improvement Authority, 5.00%, 1/15/28

      340        382,874  

Monmouth County Improvement Authority, 5.00%, 1/15/30

      340        380,851  
     

 

 

  
   $ 3,652,263  
     

 

 

  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Hospital — 14.5%

 

Camden County Improvement Authority, (Cooper Health System), 5.75%, 2/15/42

    $ 650      $ 734,097  

New Jersey Health Care Facilities Financing Authority, (AHS Hospital Corp.), 5.00%, 7/1/27

      100        103,208  

New Jersey Health Care Facilities Financing Authority, (Barnabas Health Obligated Group), 4.25%, 7/1/44

      750        792,300  

New Jersey Health Care Facilities Financing Authority, (Hackensack Meridian Health Obligated Group), 4.00%, 7/1/34

      500        530,030  

New Jersey Health Care Facilities Financing Authority, (Inspira Health Obligated Group), 4.00%, 7/1/47

      500        515,100  

New Jersey Health Care Facilities Financing Authority, (Meridian Health System), 5.00%, 7/1/26

      265        302,238  

New Jersey Health Care Facilities Financing Authority, (Palisades Medical Center), Prerefunded to 7/1/23, 5.25%, 7/1/31

      45        54,997  

New Jersey Health Care Facilities Financing Authority, (Princeton HealthCare System), 5.00%, 7/1/32

      990        1,150,944  

New Jersey Health Care Facilities Financing Authority, (Princeton HealthCare System), 5.00%, 7/1/33

      120        138,498  

New Jersey Health Care Facilities Financing Authority, (Princeton HealthCare System), 5.00%, 7/1/39

      2,305        2,614,377  

New Jersey Health Care Facilities Financing Authority, (Trinitas Regional Medical Center Obligated Group), 5.00%, 7/1/30

      1,000        1,144,560  

New Jersey Health Care Facilities Financing Authority, (Virtua Health), 5.75%, 7/1/33

      1,075        1,164,332  
     

 

 

  
   $ 9,244,681  
     

 

 

  

Housing — 1.0%

 

New Jersey Housing and Mortgage Finance Agency, (Single Family Housing), (AMT), 4.70%, 10/1/37

    $ 335      $ 335,292  

New Jersey Housing and Mortgage Finance Agency, (Single Family Housing), (AMT), 5.00%, 10/1/37

      325        327,785  
     

 

 

  
   $ 663,077  
     

 

 

  

Industrial Development Revenue — 7.5%

 

Essex County Improvement Authority, (Covanta), (AMT), 5.25%, 7/1/45(1)

    $ 1,085      $ 1,092,855  

New Jersey Economic Development Authority, (Continental Airlines), (AMT), 5.125%, 9/15/23

      50        54,169  

New Jersey Economic Development Authority, (Continental Airlines), (AMT), 5.25%, 9/15/29

      135        147,168  

New Jersey Economic Development Authority, (Continental Airlines), (AMT), 5.50%, 6/1/33

      750        834,668  

New Jersey Economic Development Authority, (New Jersey-American Water Co., Inc.), (AMT), 5.10%, 6/1/23

      220        240,231  

New Jersey Economic Development Authority, (New Jersey-American Water Co., Inc.), (AMT), 5.70%, 10/1/39

      2,235        2,412,615  
     

 

 

  
   $ 4,781,706  
     

 

 

  

Insured-Electric Utilities — 2.0%

 

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

    $ 135      $ 142,930  

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

      490        519,900  

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/35

      595        631,211  
     

 

 

  
   $ 1,294,041  
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Escrowed/Prerefunded — 5.2%

 

Lakewood Township, (AGC), Prerefunded to 11/1/18, 5.75%, 11/1/31

    $ 1,240      $ 1,311,821  

New Jersey Economic Development Authority, (School Facilities Construction), (AGC), Prerefunded to 12/15/18, 5.50%, 12/15/34

      970        1,029,742  

New Jersey Economic Development Authority, (School Facilities Construction), (AGC), Prerefunded to 12/15/18, 5.50%, 12/15/34

      520        551,611  

New Jersey Health Care Facilities Financing Authority, (Meridian Health System), Series II, (AGC), Prerefunded to 7/1/18, 5.00%, 7/1/38

      370        382,909  
     

 

 

  
   $ 3,276,083  
     

 

 

  

Insured-General Obligations — 6.6%

 

Atlantic City, (BAM), 5.00%, 3/1/37

    $ 500      $ 567,525  

Hudson County Improvement Authority, (Harrison Parking), (AGC), 5.25%, 1/1/39

      1,015        1,067,526  

Irvington Township, (AGM), 5.00%, 7/15/31

      1,000        1,139,990  

Paterson, (BAM), 5.00%, 1/15/26

      1,240        1,388,713  
     

 

 

  
   $ 4,163,754  
     

 

 

  

Insured-Hospital — 2.3%

 

New Jersey Health Care Facilities Financing Authority, (Virtua Health), (AGC), 5.50%, 7/1/38

    $ 1,380      $ 1,484,645  
     

 

 

  
   $ 1,484,645  
     

 

 

  

Insured-Industrial Development Revenue — 3.1%

 

New Jersey Economic Development Authority, (United Water New Jersey, Inc.), (AMBAC), (AMT), 4.875%, 11/1/25

    $ 1,940      $ 1,984,523  
     

 

 

  
   $ 1,984,523  
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 1.9%

 

New Jersey Economic Development Authority, (School Facilities Construction), (NPFG), 5.50%, 9/1/28

    $ 1,000      $ 1,203,600  
     

 

 

  
   $ 1,203,600  
     

 

 

  

Insured-Special Tax Revenue — 14.7%

 

Garden State Preservation Trust, (AGM), 0.00%, 11/1/25

    $ 5,250      $ 4,217,798  

New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/26

      4,300        3,242,931  

New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/27

      2,020        1,457,087  

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

      2,020        420,099  
     

 

 

  
   $ 9,337,915  
     

 

 

  

Insured-Student Loan — 1.9%

 

New Jersey Higher Education Student Assistance Authority, (AGC), (AMT), 6.125%, 6/1/30

    $ 1,200      $ 1,231,788  
     

 

 

  
   $ 1,231,788  
     

 

 

  

Insured-Transportation — 8.0%

 

New Jersey Economic Development Authority, (The Goethals Bridge Replacement), (AGM), (AMT), 5.00%, 1/1/31

    $ 850      $ 938,587  

New Jersey Economic Development Authority, (The Goethals Bridge Replacement), (AGM), (AMT), 5.125%, 1/1/39

      2,000        2,221,100  

New Jersey Transportation Trust Fund Authority, (Transportation System), (AMBAC), 0.00%, 12/15/28

      2,400        1,557,528  

South Jersey Transportation Authority, (AGC), 5.50%, 11/1/33

      315        340,033  
     

 

 

  
   $ 5,057,248  
     

 

 

  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Lease Revenue/Certificates of Participation — 4.4%

 

New Jersey Economic Development Authority, (School Facilities Construction), 5.25%, 12/15/33

    $ 995      $ 1,035,427  

New Jersey Economic Development Authority, (School Facilities Construction), Prerefunded to 6/15/19, 5.25%, 12/15/33

      400        431,852  

New Jersey Health Care Facilities Financing Authority, (Hospital Asset Transformation Program), 5.25%, 10/1/38

      1,320        1,355,099  
     

 

 

  
   $ 2,822,378  
     

 

 

  

Other Revenue — 0.4%

 

New Jersey Economic Development Authority, (The Seeing Eye, Inc.), 5.00%, 6/1/32

    $ 250      $ 282,243  
     

 

 

  
   $ 282,243  
     

 

 

  

Senior Living/Life Care — 3.5%

 

New Jersey Economic Development Authority, (Cranes Mill, Inc.), 5.875%, 7/1/28

    $ 465      $ 472,910  

New Jersey Economic Development Authority, (Cranes Mill, Inc.), 6.00%, 7/1/38

      770        781,435  

New Jersey Economic Development Authority, (United Methodist Homes of New Jersey), 4.50%, 7/1/38

      700        721,693  

New Jersey Economic Development Authority, (United Methodist Homes of New Jersey), 5.00%, 7/1/29

      215        236,018  
     

 

 

  
   $ 2,212,056  
     

 

 

  

Special Tax Revenue — 1.4%

 

New Jersey Economic Development Authority, (Newark Downtown District Management Corp.), 5.125%, 6/15/27

    $ 100      $ 100,196  

New Jersey Economic Development Authority, (Newark Downtown District Management Corp.), 5.125%, 6/15/37

      175        175,256  

Puerto Rico Sales Tax Financing Corp., 5.00%, 8/1/40

      750        475,312  

Puerto Rico Sales Tax Financing Corp., 5.75%, 8/1/37

      500        126,875  
     

 

 

  
   $ 877,639  
     

 

 

  

Student Loan — 2.1%

 

New Jersey Higher Education Student Assistance Authority, (AMT), 2.152%, (3 mo. USD LIBOR + 0.95%), 6/1/36(2)

    $ 590      $ 584,914  

New Jersey Higher Education Student Assistance Authority, (AMT), 4.75%, 12/1/43

      740        764,590  
     

 

 

  
   $ 1,349,504  
     

 

 

  

Transportation — 25.8%

 

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

    $ 1,060      $ 1,146,772  

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

      1,080        1,167,631  

New Jersey Transportation Trust Fund Authority, (Transportation System), 5.50%, 6/15/31

      1,100        1,196,096  

New Jersey Transportation Trust Fund Authority, (Transportation System), 5.875%, 12/15/38

      250        261,375  

New Jersey Transportation Trust Fund Authority, (Transportation System), 6.00%, 12/15/38

      530        556,685  

Newark Housing Authority, (Newark Marine Terminal), 4.00%, 1/1/37

      1,500        1,622,880  

Port Authority of New York and New Jersey, 5.00%, 10/15/41(3)

      5,000        5,833,550  

Port Authority of New York and New Jersey, (AMT), 5.00%, 10/15/34

      1,825        2,126,344  

Port Authority of New York and New Jersey, (AMT), 5.75%, 3/15/35(3)

      1,995        2,042,022  

South Jersey Transportation Authority, 5.00%, 11/1/39

      400        439,316  
     

 

 

  
   $ 16,392,671  
     

 

 

  

Water and Sewer — 3.2%

 

North Hudson Sewerage Authority, 5.00%, 6/1/29

    $ 1,220      $ 1,362,606  

Sussex County Municipal Utilities Authority, 0.00%, 12/1/36

      1,250        640,962  
     

 

 

  
   $ 2,003,568  
     

 

 

  

 

4

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Total Tax-Exempt Municipal Securities — 155.2%
(identified cost $93,059,972)

       $ 98,667,636  
     

 

 

  

Taxable Municipal Securities — 3.9%

      
Security    Principal
Amount
(000’s omitted)		      Value  

General Obligations — 2.6%

      

Atlantic City, 7.50%, 3/1/40

    $ 1,445      $ 1,645,551  
     

 

 

  
      $ 1,645,551  
     

 

 

  

Transportation — 1.3%

      

New Jersey Transportation Trust Fund Authority, 5.754%, 12/15/28(4)

    $ 750      $ 855,135  
     

 

 

  
      $ 855,135  
     

 

 

  

Total Taxable Municipal Securities — 3.9%
(identified cost $2,295,420)

       $ 2,500,686  
     

 

 

  

Total Investments — 159.1%
(identified cost $95,355,392)

       $ 101,168,322  
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (7.0)%

       $ (4,425,337 ) 
     

 

 

  

Institutional MuniFund Term Preferred Shares, at Liquidation Value (net of unamortized deferred offering costs) — (45.4)%

       $ (28,865,006 ) 
     

 

 

  

Other Assets, Less Liabilities — (6.7)%

       $ (4,300,768 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 63,577,211  
     

 

 

  

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 New Jersey 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, 2017, 28.7% 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 1.9% to 8.4% of total investments.

 

(1) 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, 2017, the aggregate value of these securities is $1,092,855 or 1.7% of the Trust’s net assets applicable to common shares.

 

(2) Floating rate security. The stated interest rate represents the rate in effect at August 31, 2017.

 

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

 

(4) Build America Bond. Represents taxable municipal obligation issued pursuant to the American Recovery and Reinvestment Act of 2009 or other legislation providing for the issuance of taxable municipal debt on which the issuer receives federal support.

 

5

 

 

Futures Contracts

 

                                                                                                                                                     

Description

    Number of
Contracts		    Position    Expiration
Month/Year		      Notional
Amount		     Value/Net
Unrealized
Depreciation		  

Interest Rate Futures

 

U.S. Long Treasury Bond

    30    Short      Dec-17      $ (4,682,813 )    $ (23,260 ) 
                

 

 

  
  $ (23,260 ) 
                

 

 

  

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.

LIBOR

   -   London Interbank Offered Rate

NPFG

   -   National Public Finance Guaranty Corp.

XLCA

   -   XL Capital Assurance, Inc.
 

 

At August 31, 2017, 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, 2017, 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 $23,260.

The cost and unrealized appreciation (depreciation) of investments, including open derivative contracts, of the Trust at August 31, 2017, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     89,773,756  
  

 

 

  

Gross unrealized appreciation

    $ 7,056,576  

Gross unrealized depreciation

      (1,015,270 ) 
  

 

 

  

Net unrealized appreciation

    $ 6,041,306  
  

 

 

  

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)

 

6

 

 

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, 2017, 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

    $ —      $ 98,667,636      $ —      $ 98,667,636  

Taxable Municipal Securities

      —        2,500,686        —        2,500,686  

Total Investments

    $ —      $     101,168,322      $ —      $     101,168,322  
Liability Description                                

Futures Contracts

    $ (23,260 )     $ —      $ —      $ (23,260 ) 

Total

    $     (23,260 )     $ —      $ —      $ (23,260 ) 

The Trust held no investments or other financial instruments as of November 30, 2016 whose fair value was determined using Level 3 inputs. At August 31, 2017, 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.

 

7

 

 

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.

Item 3. Exhibits

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act is attached hereto.

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 New Jersey Municipal Income Trust

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   October 24, 2017

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, 2017

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   October 24, 2017