Eaton Vance Massachusetts 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

811-09147

Investment Company Act File Number

Eaton Vance Massachusetts 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

Massachusetts Municipal Income Trust

August 31, 2017

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Municipal Securities — 144.6%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Bond Bank — 6.0%

      

Massachusetts Water Pollution Abatement Trust, 5.25%, 8/1/33

    $ 910      $ 1,189,243  

Massachusetts Water Pollution Abatement Trust, 5.25%, 8/1/34

      990        1,297,731  
     

 

 

  
      $ 2,486,974  
     

 

 

  

Education — 30.4%

      

Massachusetts Development Finance Agency, (Berklee College of Music), 5.00%, 10/1/46

    $ 1,525      $ 1,759,347  

Massachusetts Development Finance Agency, (Dexter Southfield), 5.00%, 5/1/34

      1,665        1,873,275  

Massachusetts Development Finance Agency, (Milton Academy), 5.00%, 9/1/35

      1,080        1,189,922  

Massachusetts Development Finance Agency, (Northeastern University), 5.00%, 3/1/33

      770        899,406  

Massachusetts Development Finance Agency, (Olin College), 5.00%, 11/1/38

      1,000        1,147,560  

Massachusetts Development Finance Agency, (Wentworth Institute of Technology), 5.00%, 10/1/37

      1,000        1,150,240  

Massachusetts Health and Educational Facilities Authority, (Berklee College of Music), 5.00%, 10/1/32

      105        105,354  

Massachusetts Health and Educational Facilities Authority, (Boston College), 5.50%, 6/1/35

      1,640        2,200,978  

Massachusetts Health and Educational Facilities Authority, (Northeastern University), 5.00%, 10/1/35

      1,350        1,488,173  

University of Massachusetts Building Authority, 5.00%, 11/1/39

      750        859,365  
     

 

 

  
      $ 12,673,620  
     

 

 

  

Escrowed/Prerefunded — 14.1%

      

Boston, Prerefunded to 4/1/21, 4.00%, 4/1/24

    $ 300      $ 331,155  

Massachusetts Bay Transportation Authority, Prerefunded to 7/1/18, 5.25%, 7/1/34

      40        41,509  

Massachusetts Bay Transportation Authority, Prerefunded to 7/1/18, 5.25%, 7/1/34

      100        103,773  

Massachusetts Development Finance Agency, (New England Conservatory of Music), Prerefunded to 7/1/18, 5.25%, 7/1/38

      625        648,419  

Massachusetts Health and Educational Facilities Authority, (Berklee College of Music), Prerefunded to 10/1/17, 5.00%, 10/1/32

      1,395        1,399,897  

Massachusetts Health and Educational Facilities Authority, (Isabella Stewart Gardner Museum), Prerefunded to 5/1/19, 5.00%, 5/1/22

      500        534,320  

Massachusetts Health and Educational Facilities Authority, (Isabella Stewart Gardner Museum), Prerefunded to 5/1/19, 5.00%, 5/1/25

      505        539,663  

Massachusetts Health and Educational Facilities Authority, (Tufts University), Prerefunded to 8/15/18, 5.375%, 8/15/38

      1,420        1,482,721  

Newton, Prerefunded to 4/1/19, 5.00%, 4/1/36

      750        799,215  
     

 

 

  
      $ 5,880,672  
     

 

 

  

General Obligations — 9.0%

      

Danvers, 5.25%, 7/1/36

    $ 885      $ 1,011,546  

Lexington, 4.00%, 2/1/23

      255        292,896  

Plymouth, 5.00%, 5/1/31

      345        389,105  

Plymouth, 5.00%, 5/1/32

      315        353,468  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Wayland, 5.00%, 2/1/33

    $ 510      $ 569,634  

Wayland, 5.00%, 2/1/36

      770        858,396  

Winchester, 5.00%, 4/15/36

      245        275,157  
     

 

 

  
      $ 3,750,202  
     

 

 

  

Hospital — 26.9%

      

Massachusetts Development Finance Agency, (Berkshire Health Systems), 5.00%, 10/1/31

    $ 1,000      $ 1,117,470  

Massachusetts Development Finance Agency, (CareGroup), 5.00%, 7/1/33

      180        205,634  

Massachusetts Development Finance Agency, (Children’s Hospital), 5.00%, 10/1/31

      525        617,909  

Massachusetts Development Finance Agency, (Lahey Health System Obligated Group), 5.00%, 8/15/40

      1,250        1,421,013  

Massachusetts Development Finance Agency, (South Shore Hospital), 5.00%, 7/1/41

      1,000        1,117,920  

Massachusetts Development Finance Agency, (Tufts Medical Center), 7.25%, 1/1/32

      600        699,162  

Massachusetts Development Finance Agency, (UMass Memorial), 5.50%, 7/1/31

      555        615,051  

Massachusetts Health and Educational Facilities Authority, (Baystate Medical Center, Inc.), 5.75%, 7/1/36

      1,210        1,312,511  

Massachusetts Health and Educational Facilities Authority, (Children’s Hospital), 5.25%, 12/1/39

      500        544,225  

Massachusetts Health and Educational Facilities Authority, (Dana-Farber Cancer Institute), 5.00%, 12/1/37

      1,135        1,188,765  

Massachusetts Health and Educational Facilities Authority, (Lowell General Hospital), 5.125%, 7/1/35

      970        1,033,166  

Massachusetts Health and Educational Facilities Authority, (Partners HealthCare System), 5.00%, 7/1/32

      945        948,185  

Massachusetts Health and Educational Facilities Authority, (Southcoast Health System), 5.00%, 7/1/29

      350        367,927  
     

 

 

  
      $ 11,188,938  
     

 

 

  

Housing — 2.3%

      

Massachusetts Housing Finance Agency, 3.35%, 12/1/41

    $ 1,000      $ 982,330  
     

 

 

  
      $ 982,330  
     

 

 

  

Industrial Development Revenue — 1.9%

      

Massachusetts Development Finance Agency, (Covanta Energy), (AMT), 4.875%, 11/1/27(1)

    $ 800      $ 800,720  
     

 

 

  
      $ 800,720  
     

 

 

  

Insured-Education — 7.6%

      

Massachusetts College Building Authority, (XLCA), 5.50%, 5/1/39

    $ 1,000      $ 1,388,010  

Massachusetts Development Finance Agency, (College of the Holy Cross), (AMBAC), 5.25%, 9/1/32(2)

      1,365        1,764,536  
     

 

 

  
      $ 3,152,546  
     

 

 

  

Insured-Electric Utilities — 1.4%

      

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

    $ 550      $ 582,307  
     

 

 

  
      $ 582,307  
     

 

 

  

Insured-Escrowed/Prerefunded — 0.9%

      

Massachusetts Health and Educational Facilities Authority, (Cape Cod Healthcare), (AGC), Prerefunded to 11/15/19, 5.00%, 11/15/25

    $ 335      $ 365,019  
     

 

 

  
      $ 365,019  
     

 

 

  

Insured-General Obligations — 3.2%

      

Massachusetts, (AMBAC), 5.50%, 8/1/30

    $ 1,000      $ 1,341,320  
     

 

 

  
      $ 1,341,320  
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Other Revenue — 2.0%

      

Massachusetts Development Finance Agency, (WGBH Educational Foundation), (AMBAC), 5.75%, 1/1/42

    $ 590      $ 820,643  
     

 

 

  
      $ 820,643  
     

 

 

  

Insured-Special Tax Revenue — 9.3%

      

Martha’s Vineyard Land Bank, (BAM), 5.00%, 5/1/25

    $ 775      $ 937,579  

Martha’s Vineyard Land Bank, (BAM), 5.00%, 5/1/28

      1,195        1,408,188  

Massachusetts, Special Obligation, Dedicated Tax Revenue, (NPFG), 5.50%, 1/1/29

      1,000        1,296,750  

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

      1,105        229,807  
     

 

 

  
      $ 3,872,324  
     

 

 

  

Insured-Student Loan — 0.4%

      

Massachusetts Educational Financing Authority, (AGC), (AMT), 6.35%, 1/1/30

    $ 145      $ 151,905  
     

 

 

  
      $ 151,905  
     

 

 

  

Insured-Transportation — 0.7%

      

Massachusetts Port Authority, (Bosfuel Project), (NPFG), (AMT), 5.00%, 7/1/32

    $ 315      $ 315,838  
     

 

 

  
      $ 315,838  
     

 

 

  

Senior Living/Life Care — 1.8%

      

Massachusetts Development Finance Agency, (Carleton-Willard Village), 5.625%, 12/1/30

    $ 125      $ 134,441  

Massachusetts Development Finance Agency, (VOA Concord Assisted Living, Inc.), 5.125%, 11/1/27(1)

      140        140,219  

Massachusetts Development Finance Agency, (VOA Concord Assisted Living, Inc.), 5.20%, 11/1/41(1)

      475        475,375  
     

 

 

  
      $ 750,035  
     

 

 

  

Special Tax Revenue — 7.1%

      

Massachusetts School Building Authority, Sales Tax Revenue, 5.00%, 11/15/46

    $ 1,500      $ 1,766,100  

Massachusetts, (Rail Enhancement and Accelerated Bridge Programs), 5.00%, 6/1/41

      1,000        1,176,430  
     

 

 

  
      $ 2,942,530  
     

 

 

  

Student Loan — 3.6%

      

Massachusetts Educational Financing Authority, (AMT), 3.50%, 7/1/33

    $ 1,500      $ 1,495,425  
     

 

 

  
      $ 1,495,425  
     

 

 

  

Transportation — 10.4%

      

Massachusetts Department of Transportation, (Metropolitan Highway System), 5.00%, 1/1/37

    $ 1,500      $ 1,617,030  

Massachusetts Port Authority, 5.00%, 7/1/28

      500        554,985  

Massachusetts Port Authority, 5.00%, 7/1/34

      670        735,392  

Massachusetts Port Authority, 5.00%, 7/1/45

      1,250        1,447,900  
     

 

 

  
      $ 4,355,307  
     

 

 

  

Water and Sewer — 5.6%

      

Boston Water and Sewer Commission, Prerefunded to 11/1/19, 5.00%, 11/1/29

    $ 495      $ 538,515  

Massachusetts Water Resources Authority, Green Bonds, 5.00%, 8/1/40

      1,500        1,776,960  
     

 

 

  
      $ 2,315,475  
     

 

 

  

Total Tax-Exempt Municipal Securities — 144.6%
(identified cost $55,313,267)

       $ 60,224,130  
     

 

 

  

 

3

 

 

                                                 

Taxable Municipal Securities — 2.0%

      
Security    Principal
Amount
(000’s omitted)		      Value  

Student Loan — 2.0%

      

Massachusetts Educational Financing Authority, 4.70%, 1/1/30

    $ 750      $ 823,972  
     

 

 

  

Total Taxable Municipal Securities — 2.0%
(identified cost $736,349)

       $ 823,972  
     

 

 

  

Total Investments — 146.6%
(identified cost $56,049,616)

       $ 61,048,102  
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (7.8)%

       $ (3,250,198 ) 
     

 

 

  

Institutional MuniFund Term Preferred Shares, at Liquidation Value
(net of unamortized deferred offering costs) — (40.1)%

       $ (16,712,602 ) 
     

 

 

  

Other Assets, Less Liabilities — 1.3%

       $ 549,774  
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 41,635,076  
     

 

 

  

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 Massachusetts 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, 17.4% 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 0.8% to 6.4% 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 $1,416,314 or 3.4% of the Trust’s net assets applicable to common shares.

 

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

Abbreviations:

 

AGC

   -   Assured Guaranty 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.

NPFG

   -   National Public Finance Guaranty Corp.

XLCA

   -   XL Capital Assurance, Inc.

 

4

 

 

The Trust did not have any open derivative instruments at August 31, 2017.

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

 

Aggregate cost

    $     54,974,056  
  

 

 

  

Gross unrealized appreciation

    $ 5,237,849  

Gross unrealized depreciation

      (73,803 ) 
  

 

 

  

Net unrealized appreciation

    $ 5,164,046  
  

 

 

  

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, 2017, 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 Municipal Securities

    $ —      $ 60,224,130      $ —      $ 60,224,130  

Taxable Municipal Securities

      —        823,972        —        823,972  

Total Investments

    $     —      $     61,048,102      $     —      $     61,048,102  

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.

 

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.

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 Massachusetts 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