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, 2017

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Pennsylvania Municipal Income Trust

August 31, 2017

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Municipal Securities — 155.9%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Cogeneration — 0.3%

 

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

    $ 378      $ 113,309  
     

 

 

  
   $ 113,309  
  

 

 

  

Education — 29.9%

 

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

    $ 500      $ 531,990  

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

      1,200        1,270,944  

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

      1,000        1,044,850  

Lehigh County General Purpose Authority, (Muhlenberg College), 5.00%, 2/1/32

      830        983,226  

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

      750        879,187  

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

      45        52,875  

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

      65        76,617  

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

      215        255,020  

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

      90        105,880  

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

      130        149,559  

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

      110        125,871  

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

      205        228,407  

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

      625        731,737  

Pennsylvania Higher Educational Facilities Authority, (Drexel University), 5.00%, 5/1/34

      470        544,749  

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

      440        482,803  

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

      600        664,440  

Pennsylvania State University, 5.00%, 9/1/34

      750        894,277  

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

      750        844,140  

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

      250        295,785  

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

      575        626,152  
     

 

 

  
   $ 10,788,509  
  

 

 

  

Escrowed/Prerefunded — 23.9%

 

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

    $ 1,050      $ 1,212,529  

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

      395        425,352  

Chester County Health and Education Facilities Authority, (Jefferson Health System), Prerefunded to 5/15/20, 5.00%, 5/15/40

      555        615,290  

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

      435        452,504  

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

      315        327,613  

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

      220        228,809  

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

      30        31,207  

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

      360        391,979  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Northampton County General Purpose Authority, (Lehigh University), Prerefunded to 5/15/19, 5.00%, 11/15/39

    $ 500      $ 535,145  

Pennsylvania Higher Educational Facilities Authority, (Thomas Jefferson University), Prerefunded to 3/1/20, 5.00%, 3/1/40

      625        687,444  

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

      750        777,188  

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

      515        554,052  

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

      420        452,449  

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

      65        70,022  

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

      495        564,562  

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

      985        1,035,609  

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

      15        15,771  

Philadelphia, Gas Works Revenue, Prerefunded to 8/1/20, 5.25%, 8/1/40

      235        263,842  
     

 

 

  
   $ 8,641,367  
  

 

 

  

General Obligations — 8.6%

 

Chester County, 4.00%, 7/15/29

    $ 750      $ 860,370  

Chester County, 5.00%, 7/15/27

      105        112,958  

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

      1,000        1,292,340  

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

      750        854,677  
     

 

 

  
   $ 3,120,345  
  

 

 

  

Hospital — 19.5%

 

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

    $ 500      $ 537,795  

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

      195        209,418  

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

      390        423,173  

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

      500        523,240  

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

      235        245,671  

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

      750        810,113  

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

      1,095        1,212,187  

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

      500        566,015  

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

      250        273,030  

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

      675        726,570  

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

      250        281,423  

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

      1,085        1,230,835  
     

 

 

  
   $ 7,039,470  
  

 

 

  

Housing — 0.5%

 

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

    $ 175      $ 187,091  
     

 

 

  
   $ 187,091  
  

 

 

  

Industrial Development Revenue — 9.5%

 

Delaware County Industrial Development Authority, (Covanta), 5.00%, 7/1/43(2)

    $ 750      $ 756,428  

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

      200        216,740  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 750      $ 772,462  

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

      250        268,795  

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

      1,115        1,416,451  
     

 

 

  
   $ 3,430,876  
  

 

 

  

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      $ 384,191  

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

      875        896,447  
     

 

 

  
   $ 1,280,638  
  

 

 

  

Insured-Electric Utilities — 3.2%

 

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

    $ 1,080      $ 1,145,902  
     

 

 

  
   $ 1,145,902  
  

 

 

  

Insured-Escrowed/Prerefunded — 17.7%

 

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

    $ 475      $ 479,735  

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

      750        825,810  

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

      1,440        1,503,677  

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

      500        513,825  

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

      1,105        1,112,912  

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

      2,000        1,960,040  
     

 

 

  
   $ 6,395,999  
  

 

 

  

Insured-General Obligations — 3.2%

 

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

    $ 25      $ 25,249  

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

      750        852,952  

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

      250        284,148  
     

 

 

  
   $ 1,162,349  
  

 

 

  

Insured-Hospital — 0.9%

 

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

    $ 250      $ 318,610  
     

 

 

  
   $ 318,610  
  

 

 

  

Insured-Lease Revenue/Certificates of Participation — 4.8%

 

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

    $ 500      $ 529,410  

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

      1,195        1,211,885  
     

 

 

  
   $ 1,741,295  
  

 

 

  

Insured-Special Tax Revenue — 2.6%

 

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

    $ 610      $ 667,462  

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

      1,235        256,843  
     

 

 

  
   $ 924,305  
  

 

 

  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Transportation — 9.7%

 

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

    $ 525      $ 526,764  

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

      1,005        1,008,628  

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

      1,800        1,954,476  
     

 

 

  
   $ 3,489,868  
  

 

 

  

Insured-Water and Sewer — 1.5%

 

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

    $ 500      $ 552,415  
     

 

 

  
   $ 552,415  
  

 

 

  

Senior Living/Life Care — 0.3%

 

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

    $ 100      $ 110,514  
     

 

 

  
   $ 110,514  
  

 

 

  

Transportation — 10.8%

 

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

    $ 465      $ 503,065  

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

      285        308,125  

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

      450        493,663  

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

      385        425,333  

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

      550        626,719  

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

      410        464,198  

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

      970        1,080,357  
     

 

 

  
   $ 3,901,460  
  

 

 

  

Utilities — 1.1%

 

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

    $ 365      $ 400,420  
     

 

 

  
   $ 400,420  
  

 

 

  

Water and Sewer — 4.4%

 

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

    $ 750      $ 759,210  

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

      750        827,805  
     

 

 

  
   $ 1,587,015  
  

 

 

  

Total Tax-Exempt Municipal Securities — 155.9%
(identified cost $52,755,111)

       $ 56,331,757  
  

 

 

  

Taxable Municipal Securities — 0.0%(3)

 

Security    Principal
Amount
(000’s omitted)		      Value  

Cogeneration — 0.0%(3)

 

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

    $ 47      $ 14,164  
     

 

 

  

Total Taxable Municipal Securities — 0.0%(3)
(identified cost $47,269)

       $ 14,164  
  

 

 

  

Total Investments — 155.9%
(identified cost $52,802,380)

       $ 56,345,921  
  

 

 

  

 

4

 

 

                                                 
              Value  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (11.6)%

       $ (4,200,255 ) 
     

 

 

  

Institutional MuniFund Term Preferred Shares, at Liquidation Value
(net of unamortized deferred offering costs) — (46.7)%

       $ (16,885,990 ) 
     

 

 

  

Other Assets, Less Liabilities — 2.4%

       $ 874,630  
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 36,134,306  
     

 

 

  

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, 2017, 30.2% 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 1.8% to 14.6% of total investments.

 

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

 

(2) 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 $756,428 or 2.1% of the Trust’s net assets applicable to common shares.

 

(3) Amount is less than 0.05%.

Futures Contracts

 

Description

   

Number of
Contracts

    Position    Expiration
Month/Year		      Notional
Amount		     Value/Net
Unrealized
Depreciation		  

Interest Rate Futures

 

U.S. Long Treasury Bond

    10    Short      Dec-17      $     (1,560,938 )    $ (7,753 ) 
             

 

 

  
  $     (7,753 ) 
 

 

 

  

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.

 

5

 

 

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 $7,753.

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

    $     52,704,863  
  

 

 

  

Gross unrealized appreciation

    $ 4,051,212  

Gross unrealized depreciation

      (417,907 ) 
  

 

 

  

Net unrealized appreciation

    $ 3,633,305  
  

 

 

  

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 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

    $ —      $ 56,331,757      $ —      $ 56,331,757  

Taxable Municipal Securities

      —        14,164        —        14,164  

Total Investments

    $ —      $     56,345,921      $     —      $     56,345,921  
Liability Description                          

Futures Contracts

    $ (7,753 )     $ —      $ —      $ (7,753 ) 

Total

    $     (7,753 )     $ —      $ —      $ (7,753 ) 

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.

 

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.

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 Pennsylvania 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