Eaton Vance California 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

811-09157

Investment Company Act File Number

Eaton Vance California 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

February 28, 2015

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

California Municipal Income Trust

February 28, 2015

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Municipal Securities — 156.1%

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Education — 15.5%

      

California Educational Facilities Authority, (Claremont McKenna College), 5.00%, 1/1/39

    $ 3,135       $ 3,491,105   

California Educational Facilities Authority, (Harvey Mudd College), 5.25%, 12/1/31

      195         225,013   

California Educational Facilities Authority, (Harvey Mudd College), 5.25%, 12/1/36

      330         376,853   

California Educational Facilities Authority, (Loyola Marymount University), 5.00%, 10/1/30

      745         846,380   

California Educational Facilities Authority, (Santa Clara University), 5.00%, 9/1/23

      1,600         1,924,928   

California Educational Facilities Authority, (University of San Francisco), 6.125%, 10/1/36

      235         285,809   

California Educational Facilities Authority, (University of Southern California), 5.25%, 10/1/39

      2,490         2,812,953   

California Educational Facilities Authority, (University of the Pacific), 5.00%, 11/1/30

      630         716,738   

California Municipal Finance Authority, (University of San Diego), 5.00%, 10/1/31

      415         470,901   

California Municipal Finance Authority, (University of San Diego), 5.00%, 10/1/35

      285         321,229   

California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/26

      810         958,813   

California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/27

      850         1,001,028   

California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/28

      895         1,048,063   

University of California, 5.25%, 5/15/39

      1,250         1,431,125   
     

 

 

  
   $ 15,910,938   
     

 

 

  

Electric Utilities — 14.1%

      

Chula Vista, (San Diego Gas and Electric), 5.875%, 2/15/34

    $ 270       $ 320,185   

Chula Vista, (San Diego Gas and Electric), (AMT), 5.00%, 12/1/27

      2,275         2,401,308   

Colton Public Financing Authority, Electric System Revenue, 5.00%, 4/1/27

      1,500         1,723,200   

Los Angeles Department of Water and Power, Electric System Revenue, 5.25%, 7/1/32

      2,170         2,452,295   

Northern California Power Agency, 5.25%, 8/1/24

      1,500         1,707,825   

Sacramento Municipal Utility District, 5.00%, 8/15/27

      1,335         1,563,579   

Sacramento Municipal Utility District, 5.00%, 8/15/28

      1,795         2,087,441   

Southern California Public Power Authority, (Tieton Hydropower), 5.00%, 7/1/35

      680         781,041   

Vernon, Electric System Revenue, 5.125%, 8/1/21

      1,300         1,470,183   
     

 

 

  
   $ 14,507,057   
     

 

 

  

Escrowed/Prerefunded — 3.5%

      

California Department of Water Resources, Prerefunded to 6/1/18, 5.00%, 12/1/29

    $ 715       $ 811,876   

California Health Facilities Financing Authority, (Catholic Healthcare West), Prerefunded to 7/1/15, 5.625%, 7/1/32

      1,000         1,019,000   

California Health Facilities Financing Authority, (Providence Health System), Prerefunded to 10/1/18, 6.50%, 10/1/38

      1,475         1,768,510   
     

 

 

  
   $ 3,599,386   
     

 

 

  

General Obligations — 27.5%

      

California, 5.00%, 10/1/31

    $ 1,885       $ 2,226,543   

California, 5.50%, 11/1/35

      1,600         1,905,728   

California, 6.00%, 4/1/38

      750         900,735   

California, (AMT), 5.05%, 12/1/36

      475         478,482   

Palo Alto, (Election of 2008), 5.00%, 8/1/40

      3,655         4,181,685   

San Bernardino Community College District, 4.00%, 8/1/30

      2,890         3,057,360   

San Dieguito Union High School District, (Election of 2012), 4.00%, 8/1/30

      1,545         1,658,079   

San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/35

      860         998,580   

San Mateo Union High School District, (Election of 2006), 5.00%, 9/1/27

      1,315         1,591,032   

San Mateo Union High School District, (Election of 2006), 5.00%, 9/1/28

      2,230         2,676,468   

Santa Clara County, (Election of 2008), 5.00%, 8/1/39(1)(2)

      3,180         3,631,465   

Tamalpais Union High School District, 5.00%, 8/1/25

      1,000         1,249,530   

 

1

 

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Tamalpais Union High School District, 5.00%, 8/1/28

    $ 1,000       $ 1,210,200   

Torrance Unified School District, (Election of 2008), 5.00%, 8/1/35

      2,150         2,492,366   
     

 

 

  
   $ 28,258,253   
     

 

 

  

Hospital — 14.2%

      

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/27

    $ 1,000       $ 1,138,150   

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/28

      190         215,420   

California Health Facilities Financing Authority, (City of Hope), 5.00%, 11/15/32

      635         711,429   

California Health Facilities Financing Authority, (City of Hope), 5.00%, 11/15/35

      910         1,028,810   

California Health Facilities Financing Authority, (Memorial Health Services), 5.00%, 10/1/27

      2,000         2,312,420   

California Health Facilities Financing Authority, (Memorial Health Services), 5.00%, 10/1/33

      1,000         1,126,220   

California Health Facilities Financing Authority, (St. Joseph Health System), 5.00%, 7/1/33

      1,145         1,316,544   

California Health Facilities Financing Authority, (St. Joseph Health System), 5.00%, 7/1/37

      535         608,792   

California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/34

      600         634,026   

Torrance, (Torrance Memorial Medical Center), 5.50%, 6/1/31

      1,900         1,905,757   

Washington Township Health Care District, 5.00%, 7/1/32

      2,780         2,893,646   

Washington Township Health Care District, 5.25%, 7/1/29

      700         702,009   
     

 

 

  
   $ 14,593,223   
     

 

 

  

Industrial Development Revenue — 1.2%

      

California Pollution Control Financing Authority, (Waste Management, Inc.), (AMT), 5.125%, 11/1/23(3)

    $ 1,235       $ 1,277,916   
     

 

 

  
   $ 1,277,916   
     

 

 

  

Insured-Education — 1.5%

      

California Educational Facilities Authority, (Santa Clara University), (NPFG), 5.00%, 9/1/23

    $ 1,250       $ 1,503,850   
     

 

 

  
   $ 1,503,850   
     

 

 

  

Insured-Electric Utilities — 3.0%

      

Glendale, Electric System Revenue, (AGC), 5.00%, 2/1/31

    $ 2,790       $ 3,049,247   
     

 

 

  
   $ 3,049,247   
     

 

 

  

Insured-Escrowed/Prerefunded — 3.9%

      

Foothill/Eastern Transportation Corridor Agency, (AGM), (RADIAN), Escrowed to Maturity, 0.00%, 1/1/26

    $ 5,130       $ 4,005,401   
     

 

 

  
   $ 4,005,401   
     

 

 

  

Insured-General Obligations — 9.3%

      

Coast Community College District, (Election of 2002), (AGM), 0.00%, 8/1/34

    $ 6,485       $ 2,351,591   

Coast Community College District, (Election of 2002), (AGM), 0.00%, 8/1/35

      4,825         1,654,010   

Riverside Community College District, (Election of 2004), (AGM), (NPFG), 5.00%, 8/1/32

      2,005         2,192,828   

Sweetwater Union High School District, (Election of 2000), (AGM), 0.00%, 8/1/25

      4,720         3,399,344   
     

 

 

  
   $ 9,597,773   
     

 

 

  

Insured-Hospital — 8.9%

      

California Health Facilities Financing Authority, (Kaiser Permanente), (BHAC), 5.00%, 4/1/37

    $ 2,900       $ 3,032,211   

California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC), 5.00%, 3/1/41(1)

      750         781,297   

California Statewide Communities Development Authority, (Sutter Health), (AMBAC), (BHAC), 5.00%, 11/15/38(1)

      5,000         5,329,100   
     

 

 

  
   $ 9,142,608   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 8.0%

      

Anaheim Public Financing Authority, (Public Improvements), (AGM), 0.00%, 9/1/17

    $ 4,410       $ 4,293,223   

 

2

 

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

San Diego County Water Authority, Certificates of Participation, (AGM), 5.00%, 5/1/38(1)

    $ 3,500       $ 3,886,435   
     

 

 

  
   $ 8,179,658   
     

 

 

  

Insured-Special Tax Revenue — 2.1%

      

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

    $ 4,850       $ 648,154   

Successor Agency to Dinuba Redevelopment Agency, (BAM), 5.00%, 9/1/28

      370         429,837   

Successor Agency to Dinuba Redevelopment Agency, (BAM), 5.00%, 9/1/33

      930         1,054,099   
     

 

 

  
   $ 2,132,090   
     

 

 

  

Insured-Transportation — 8.4%

      

Alameda Corridor Transportation Authority, (AMBAC), 0.00%, 10/1/29

    $ 5,000       $ 2,673,850   

Alameda Corridor Transportation Authority, (NPFG), 0.00%, 10/1/31

      4,500         2,341,800   

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

      740         776,349   

San Jose Airport, (AGM), (AMBAC), (BHAC), (AMT), 5.00%, 3/1/37

      1,275         1,367,042   

San Jose Airport, (AGM), (AMBAC), (BHAC), (AMT), 6.00%, 3/1/47

      1,350         1,476,981   
     

 

 

  
   $ 8,636,022   
     

 

 

  

Insured-Water and Sewer — 2.6%

      

East Bay Municipal Utility District, Water System Revenue, (NPFG), 5.00%, 6/1/32(1)

    $ 2,000       $ 2,201,680   

Los Angeles Department of Water and Power, (NPFG), 3.00%, 7/1/30

      430         428,938   
     

 

 

  
   $ 2,630,618   
     

 

 

  

Lease Revenue/Certificates of Participation — 1.0%

      

California Public Works Board, 5.00%, 11/1/38

    $ 915       $ 1,041,874   
     

 

 

  
   $ 1,041,874   
     

 

 

  

Other Revenue — 0.4%

      

California Infrastructure and Economic Development Bank, (Performing Arts Center of Los Angeles), 5.00%, 12/1/32

    $ 385       $ 418,572   
     

 

 

  
   $ 418,572   
     

 

 

  

Senior Living/Life Care — 2.5%

      

ABAG Finance Authority for Nonprofit Corporations, (Episcopal Senior Communities), 6.00%, 7/1/31

    $ 290       $ 333,851   

California Statewide Communities Development Authority, (Southern California Presbyterian Homes), 4.75%, 11/15/26(3)

      175         178,575   

California Statewide Communities Development Authority, (Southern California Presbyterian Homes), 4.875%, 11/15/36(3)

      700         708,400   

California Statewide Communities Development Authority, (Southern California Presbyterian Homes), 7.25%, 11/15/41(3)

      600         717,318   

California Statewide Communities Development Authority, (The Redwoods, a Community of Seniors), 5.125%, 11/15/35

      535         603,657   
     

 

 

  
   $ 2,541,801   
     

 

 

  

Special Tax Revenue — 13.0%

      

Aliso Viejo Community Facilities District No. 2005-01, Special Tax Revenue, (Glenwood at Aliso Viejo), 5.00%, 9/1/30

    $ 770       $ 865,834   

Brentwood Infrastructure Financing Authority, 5.00%, 9/2/26

      285         293,878   

Brentwood Infrastructure Financing Authority, 5.00%, 9/2/34

      460         474,200   

Fontana Redevelopment Agency, (Jurupa Hills), 5.60%, 10/1/27

      1,590         1,594,516   

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/22

      240         279,290   

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/23

      480         553,978   

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/24

      240         273,934   

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/25

      335         380,007   

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/26

      240         270,667   

San Francisco Bay Area Rapid Transit District, Sales Tax Revenue, 5.00%, 7/1/28

      2,400         2,792,952   

Santaluz Community Facilities District No. 2, 6.10%, 9/1/21

      250         254,928   

Santaluz Community Facilities District No. 2, 6.20%, 9/1/30

      490         497,668   

 

3

 

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

South Orange County Public Financing Authority, Special Tax Revenue, (Ladera Ranch), 5.00%, 8/15/27

    $ 485       $ 561,771   

South Orange County Public Financing Authority, Special Tax Revenue, (Ladera Ranch), 5.00%, 8/15/28

      725         835,700   

Successor Agency to La Quinta Redevelopment Agency, 5.00%, 9/1/28

      1,600         1,876,064   

Tustin Community Facilities District, 6.00%, 9/1/37

      500         528,195   

Whittier Public Financing Authority, (Greenleaf Avenue Redevelopment), 5.50%, 11/1/23

      1,000         1,001,740   
     

 

 

  
   $ 13,335,322   
     

 

 

  

Transportation — 13.7%

      

Bay Area Toll Authority, Toll Bridge Revenue, (San Francisco Bay Area), Prerefunded to 4/1/16, 5.00%, 4/1/31

    $ 2,000       $ 2,104,780   

Bay Area Toll Authority, Toll Bridge Revenue, (San Francisco Bay Area), Prerefunded to 4/1/19, 5.25%, 4/1/29

      1,000         1,173,380   

Los Angeles Department of Airports, (Los Angeles International Airport), 5.00%, 5/15/35(1)(2)

      2,120         2,423,966   

Los Angeles Department of Airports, (Los Angeles International Airport), (AMT), 5.375%, 5/15/30

      1,500         1,671,915   

Port of Redwood City, (AMT), 5.125%, 6/1/30

      1,170         1,173,639   

San Francisco City and County Airport Commission, (San Francisco International Airport), 5.00%, 5/1/35

      2,760         3,065,145   

San Joaquin Hills Transportation Corridor Agency, 5.00%, 1/15/34

      2,265         2,510,752   
     

 

 

  
   $ 14,123,577   
     

 

 

  

Water and Sewer — 1.8%

      

California Department of Water Resources, 5.00%, 12/1/29

    $ 25       $ 28,284   

San Mateo, Sewer Revenue, 5.00%, 8/1/36

      1,700         1,921,782   
     

 

 

  
   $ 1,950,066   
     

 

 

  

Total Tax-Exempt Municipal Securities — 156.1%
(identified cost $145,849,149)

       $ 160,435,252   
     

 

 

  

Taxable Municipal Securities — 1.8%

      
Security    Principal
Amount
(000’s omitted)		      Value  

Hospital — 1.8%

      

California Statewide Communities Development Authority, (Loma Linda University Medical Center), 6.00%, 12/1/24

    $ 1,750       $ 1,852,515   
     

 

 

  

Total Taxable Municipal Securities — 1.8%
(identified cost $1,750,000)

       $ 1,852,515   
     

 

 

  

Corporate Bonds & Notes — 0.7%

      
Security   

Principal

Amount

(000’s omitted)

      Value  

Hospital — 0.7%

      

Dignity Health, 3.812%, 11/1/24

    $ 720       $ 752,761   
     

 

 

  

Total Corporate Bonds & Notes — 0.7%
(identified cost $720,000)

       $ 752,761   
     

 

 

  

Total Investments — 158.6%
(identified cost $148,319,149)

       $ 163,040,528   
     

 

 

  

 

4

 

 

                                                 
            Value  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (48.6)%

       $ (49,976,074 ) 
     

 

 

  

Other Assets, Less Liabilities — (10.0)%

       $ (10,313,874 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 102,750,580   
     

 

 

  

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

 

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.

BHAC

   -   Berkshire Hathaway Assurance Corp.

CIFG

   -   CIFG Assurance North America, Inc.

NPFG

   -   National Public Finance Guaranty Corp.

RADIAN

   -   Radian Group, Inc.

The Trust invests primarily in debt securities issued by California 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 February 28, 2015, 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 0.5% to 15.1% 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 $2,080,430.

 

(3) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be sold in certain transactions (normally to qualified institutional buyers) and remain exempt from registration. At February 28, 2015, the aggregate value of these securities is $2,882,209 or 2.8% of the Trust’s net assets applicable to common shares.

A summary of open financial instruments at February 28, 2015 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net  Unrealized
Depreciation		  
6/15    38 U.S. 10-Year Treasury Note    Short    $     (4,814,963 )    $     (4,856,281 )    $     (41,318 ) 
6/15    29 U.S. Long Treasury Bond    Short      (4,657,141 )      (4,693,469 )      (36,328 ) 
            

 

 

  
             $ (77,646 ) 
            

 

 

  

At February 28, 2015, the Trust had sufficient cash and/or securities to cover commitments under these 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 purchases and sells U.S. Treasury futures contracts to hedge against changes in interest rates.

At February 28, 2015, 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 $77,646.

The cost and unrealized appreciation (depreciation) of investments of the Trust at February 28, 2015, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     133,613,152   
  

 

 

  

Gross unrealized appreciation

    $ 15,543,974   

Gross unrealized depreciation

      (426,598 ) 
  

 

 

  

Net unrealized appreciation

    $ 15,117,376   
  

 

 

  

 

 

5

 

 

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 February 28, 2015, 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

    $ —       $ 160,435,252       $ —       $ 160,435,252   

Taxable Municipal Securities

      —         1,852,515         —         1,852,515   

Corporate Bonds & Notes

      —         752,761         —         752,761   

Total Investments

    $ —       $     163,040,528       $     —       $     163,040,528   
Liability Description                                

Futures Contracts

    $ (77,646 )     $ —       $ —       $ (77,646 ) 

Total

    $     (77,646 )     $ —       $ —       $ (77,646 ) 

The Trust held no investments or other financial instruments as of November 30, 2014 whose fair value was determined using Level 3 inputs. At February 28, 2015, 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 California Municipal Income Trust

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   April 20, 2015

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:   April 20, 2015

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   April 20, 2015