Eaton Vance Pennsylvania Municipal Bond Fund

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-21227

Investment Company Act File Number

Eaton Vance Pennsylvania Municipal Bond Fund

(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)

September 30

Date of Fiscal Year End

June 30, 2016

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Pennsylvania Municipal Bond Fund

June 30, 2016

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 153.9%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 29.2%

      

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

    $ 530       $ 672,003   

Bucks County Industrial Development Authority, (George School), 5.00%, 9/15/41

      390         454,190   

Delaware County Authority, (Villanova University), 5.00%, 8/1/35

      750         920,002   

General Authority of Southcentral Pennsylvania, (York College of Pennsylvania), 5.50%, 11/1/31

      1,500         1,780,665   

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

      750         928,170   

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

      95         114,713   

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

      135         165,156   

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

      285         352,861   

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

      185         227,487   

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

      270         329,068   

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

      230         278,468   

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

      610         723,478   

Northeastern Pennsylvania Hospital and Education Authority, (Wilkes University), 5.00%, 3/1/26

      670         827,551   

Pennsylvania Higher Educational Facilities Authority, (Saint Joseph’s University), 4.25%, 11/1/34

      1,740         1,854,370   

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

      440         501,851   

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

      925         1,027,897   

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

      750         881,153   

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

      250         307,265   

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

      575         655,161   
     

 

 

  
      $ 13,001,509   
     

 

 

  

Escrowed/Prerefunded — 3.3%

      

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

    $ 1,050       $ 1,267,087   

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

      175         208,707   
     

 

 

  
      $ 1,475,794   
     

 

 

  

General Obligations — 12.6%

      

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

    $ 1,000       $ 1,364,370   

Pennsylvania, 4.00%, 4/1/29(1)(2)

      3,000         3,370,110   

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

      750         885,210   
     

 

 

  
      $ 5,619,690   
     

 

 

  

Hospital — 14.8%

      

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

    $ 750       $ 845,730   

Franklin County Industrial Development Authority, (The Chambersburg Hospital), 5.375%, 7/1/42

      1,000         1,150,210   

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

      500         536,800   

Monroe County Hospital Authority, (Pocono Medical Center), 5.125%, 1/1/37

      1,250         1,274,962   

Monroeville Finance Authority, (UPMC Obligated Group), 5.00%, 2/15/42

      500         578,250   

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

      250         287,603   

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 675       $ 763,331   

Philadelphia Hospitals and Higher Education Facilities Authority, (The Children’s Hospital of Philadelphia), 5.00%, 7/1/32

      750         877,642   

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

      250         295,383   
     

 

 

  
      $ 6,609,911   
     

 

 

  

Housing — 1.6%

      

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

    $ 175       $ 195,200   

Pennsylvania Housing Finance Agency, SFMR, 4.00%, 10/1/38

      500         533,295   
     

 

 

  
      $ 728,495   
     

 

 

  

Insured-Education — 9.0%

      

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

    $ 500       $ 536,335   

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

      1,530         1,612,298   

State Public School Building Authority, (Delaware County Community College), (AGM), Prerefunded to 4/1/18, 5.00%, 10/1/27

      500         538,025   

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

      375         403,519   

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

      875         941,544   
     

 

 

  
      $ 4,031,721   
     

 

 

  

Insured-Electric Utilities — 2.9%

      

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

    $ 490       $ 505,783   

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

      750         770,317   
     

 

 

  
      $ 1,276,100   
     

 

 

  

Insured-Escrowed/Prerefunded — 4.4%

      

Central Greene School District, (AGM), Prerefunded to 2/15/18, 5.00%, 2/15/35

    $ 1,000       $ 1,071,590   

Erie Sewer Authority, Series A, (AMBAC), Escrowed to Maturity, 0.00%, 12/1/25

      180         152,291   

Pennsylvania Higher Educational Facilities Authority, (University of the Sciences in Philadelphia), (AGC), Prerefunded to 11/1/18, 5.00%, 11/1/37

      500         550,030   

State Public School Building Authority, (Harrisburg School District), (AGC), Prerefunded to 5/15/19, 5.00%, 11/15/33

      85         95,250   

State Public School Building Authority, (Harrisburg School District), (AGC), Prerefunded to 5/15/19, 5.00%, 11/15/33

      85         95,328   
     

 

 

  
      $ 1,964,489   
     

 

 

  

Insured-General Obligations — 27.8%

      

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

    $ 1,250       $ 1,411,512   

Centennial School District, (AGM), 5.25%, 12/15/37

      660         731,049   

Erie School District, (AMBAC), 0.00%, 9/1/30

      1,000         612,900   

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

      750         883,845   

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

      250         297,908   

McKeesport School District, (NPFG), 0.00%, 10/1/21

      2,555         2,261,379   

Norwin School District, (AGM), 3.25%, 4/1/27

      1,475         1,485,620   

Reading School District, (AGM), 5.00%, 3/1/35

      1,500         1,624,935   

Scranton School District, (AGM), 5.00%, 7/15/38

      1,000         1,053,420   

Shaler Area School District, (XLCA), 0.00%, 9/1/33

      2,550         1,668,720   

State Public School Building Authority, (Harrisburg School District), (AGC), Prerefunded to 5/15/19, 5.00%, 11/15/33

      330         369,795   
     

 

 

  
      $ 12,401,083   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Hospital — 4.6%

      

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

    $ 250       $ 328,805   

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

      1,620         1,740,820   
     

 

 

  
      $ 2,069,625   
     

 

 

  

Insured-Industrial Development Revenue — 2.5%

      

Pennsylvania Economic Development Financing Authority, (Aqua Pennsylvania, Inc.), (BHAC), 5.00%, 10/1/39(1)

    $ 1,000       $ 1,122,040   
     

 

 

  
      $ 1,122,040   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 4.1%

      

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

    $ 500       $ 551,990   

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

      1,215         1,268,083   
     

 

 

  
      $ 1,820,073   
     

 

 

  

Insured-Special Tax Revenue — 3.1%

      

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

    $ 1,000       $ 1,142,300   

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

      1,295         236,104   
     

 

 

  
      $ 1,378,404   
     

 

 

  

Insured-Transportation — 5.6%

      

Philadelphia, Airport Revenue, (AGC), 5.375%, 6/15/29

    $ 295       $ 307,290   

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

      2,100         2,182,110   
     

 

 

  
      $ 2,489,400   
     

 

 

  

Insured-Utilities — 2.1%

      

Philadelphia Gas Works, (AMBAC), 5.00%, 10/1/37

    $ 890       $ 931,367   
     

 

 

  
      $ 931,367   
     

 

 

  

Insured-Water and Sewer — 10.6%

      

Allegheny County Sanitation Authority, (BHAC), (FGIC), 5.00%, 12/1/32

    $ 300       $ 311,196   

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

      500         575,035   

Erie Sewer Authority, Series A, (AMBAC), 0.00%, 12/1/25

      1,250         910,600   

Erie Sewer Authority, Series B, (AMBAC), 0.00%, 12/1/25

      2,155         1,569,874   

Erie Sewer Authority, Series B, (AMBAC), 0.00%, 12/1/26

      1,920         1,350,797   
     

 

 

  
      $ 4,717,502   
     

 

 

  

Senior Living/Life Care — 0.4%

      

Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/24

    $ 200       $ 200,176   
     

 

 

  
      $ 200,176   
     

 

 

  

Special Tax Revenue — 4.3%

      

Allegheny County Port Authority, 5.75%, 3/1/29

    $ 1,500       $ 1,796,670   

Virgin Islands Public Finance Authority, 6.75%, 10/1/37

      110         123,497   
     

 

 

  
      $ 1,920,167   
     

 

 

  

Transportation — 7.8%

      

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

    $ 465       $ 525,603   

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

      730         824,338   

Pennsylvania Turnpike Commission, 5.25%, 12/1/31

      1,000         1,179,060   

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

      325         375,281   

Philadelphia Airport Revenue, 5.25%, 6/15/27

      500         565,430   
     

 

 

  
      $ 3,469,712   
     

 

 

  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Water and Sewer — 3.2%

      

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

    $ 500       $ 573,570   

Philadelphia, Water and Wastewater Revenue, 5.25%, 1/1/32

      765         838,976   
     

 

 

  
      $ 1,412,546   
     

 

 

  

Total Tax-Exempt Investments — 153.9%
(identified cost $61,409,830)

       $ 68,639,804   
     

 

 

  

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

       $ (1,275,176 ) 
     

 

 

  

Institutional MuniFund Term Preferred Shares, at Liquidation Value — (45.9)%

       $ (20,450,000 ) 
     

 

 

  

Other Assets, Less Liabilities — (5.2)%

       $ (2,325,930 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 44,588,698   
     

 

 

  

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

The Fund 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 June 30, 2016, 49.8% 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 22.1% 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 $970,110.

Futures Contracts

 

Description    Contracts     

Position

    Expiration
Month/Year		      Aggregate Cost     Value     Net Unrealized
Depreciation		  
Interest Rate Futures                
U.S. Long Treasury Bond      20       Short      Sep-16       $     (3,253,450 )    $     (3,446,875 )    $ (193,425 ) 
               

 

 

  
                $     (193,425 ) 
               

 

 

  

Abbreviations:

 

AGC

   -   Assured Guaranty Corp.

AGM

   -   Assured Guaranty Municipal Corp.

AMBAC

   -   AMBAC Financial Group, Inc.

BHAC

   -   Berkshire Hathaway Assurance Corp.

FGIC

   -   Financial Guaranty Insurance Company

NPFG

   -   National Public Finance Guaranty Corp.

SFMR

   -   Single Family Mortgage Revenue

XLCA

   -   XL Capital Assurance, Inc.
 

 

At June 30, 2016, the Fund had sufficient cash and/or securities to cover commitments under open derivative contracts.

The Fund is subject to interest rate risk in the normal course of pursuing its investment objective. Because the Fund holds fixed-rate bonds, the value of these bonds may decrease if interest rates rise. The Fund enters into U.S. Treasury futures contracts to hedge against changes in interest rates.

 

4

 

 

At June 30, 2016, 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 $193,425.

The cost and unrealized appreciation (depreciation) of investments of the Fund at June 30, 2016, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     57,822,741   
  

 

 

  

Gross unrealized appreciation

    $ 7,495,452   

Gross unrealized depreciation

      (68,389 ) 
  

 

 

  

Net unrealized appreciation

    $ 7,427,063   
  

 

 

  

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 June 30, 2016, the hierarchy of inputs used in valuing the Fund’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 Investments

    $ —       $ 68,639,804       $ —       $ 68,639,804   

Total Investments

    $ —       $     68,639,804       $ —       $     68,639,804   
Liability Description                          

Futures Contracts

    $ (193,425 )     $ —       $ —       $ (193,425 ) 

Total

    $     (193,425 )     $ —       $ —       $ (193,425 ) 

The Fund held no investments or other financial instruments as of September 30, 2015 whose fair value was determined using Level 3 inputs. At June 30, 2016, there were no investments transferred between Level 1 and Level 2 during the fiscal year to date then ended.

For information on the Fund’s policy regarding the valuation of investments and other significant accounting policies, please refer to the Fund’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.

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 Bond Fund

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   August 22, 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:   August 22, 2016

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   August 22, 2016