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

December 31, 2015

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Pennsylvania Municipal Bond Fund

December 31, 2015

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 149.9%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 25.0%

      

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

    $ 1,050       $ 1,191,939   

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

      390         436,028   

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

      750         869,370   

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

      1,500         1,708,860   

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

      750         873,330   

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

      1,740         1,805,737   

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

      440         493,847   

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

      925         993,912   

Pennsylvania Higher Educational Facilities Authority, (Ursinus College), 5.00%, 1/1/29

      560         619,786   

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

      750         871,628   

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

      250         289,563   

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

      575         648,870   
     

 

 

  
      $     10,802,870   
     

 

 

  

General Obligations — 12.4%

      

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

    $ 1,000       $ 1,260,010   

Pennsylvania, 4.00%, 4/1/29(1)(2)

      3,000         3,262,350   

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

      750         857,557   
     

 

 

  
      $ 5,379,917   
     

 

 

  

Hospital — 14.9%

      

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

    $ 750       $ 822,293   

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

      1,000         1,097,740   

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

      500         514,860   

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

      1,250         1,289,487   

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

      500         551,425   

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

      250         282,655   

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

      675         751,835   

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

      750         851,985   

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

      250         296,293   
     

 

 

  
      $ 6,458,573   
     

 

 

  

Housing — 1.6%

      

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

    $ 175       $ 183,575   

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

      500         512,775   
     

 

 

  
      $ 696,350   
     

 

 

  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Education — 11.7%

      

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

    $ 500       $ 540,660   

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

      1,530         1,625,625   

Pennsylvania Higher Educational Facilities Authority, (Temple University), (NPFG), 4.50%, 4/1/36

      1,000         1,008,360   

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

      500         544,970   

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

      375         408,728   

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

      875         953,697   
     

 

 

  
      $ 5,082,040   
     

 

 

  

Insured-Electric Utilities — 2.7%

      

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

    $ 490       $ 469,038   

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

      750         712,695   
     

 

 

  
      $ 1,181,733   
     

 

 

  
     

Insured-Escrowed/Prerefunded — 4.5%

      

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

    $ 1,000       $ 1,086,260   

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

      180         143,230   

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

      500         555,205   

Saxonburg Water and Sewer Authority, (AGC), Prerefunded to 3/1/16, 5.00%, 3/1/35

      150         151,189   
     

 

 

  
      $ 1,935,884   
     

 

 

  

Insured-General Obligations — 28.1%

      

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

    $ 1,250       $ 1,410,675   

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

      660         734,012   

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

      1,000         544,730   

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

      750         850,500   

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

      250         284,085   

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

      2,555         2,190,810   

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

      1,475         1,480,266   

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

      1,500         1,630,665   

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

      1,000         1,059,560   

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

      2,550         1,443,989   

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

      415         453,192   

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

      85         96,050   
     

 

 

  
      $     12,178,534   
     

 

 

  

Insured-Hospital — 4.7%

      

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

    $ 250       $ 320,715   

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

      1,620         1,734,016   
     

 

 

  
      $ 2,054,731   
     

 

 

  

Insured-Industrial Development Revenue — 2.6%

      

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

    $ 1,000       $ 1,116,570   
     

 

 

  
      $ 1,116,570   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 4.2%

      

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

    $ 500       $ 550,470   

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

      1,215         1,271,984   
     

 

 

  
      $ 1,822,454   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Special Tax Revenue — 3.1%

      

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

    $ 1,000       $ 1,130,280   

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

      1,295         194,341   
     

 

 

  
      $ 1,324,621   
     

 

 

  

Insured-Transportation — 5.5%

      

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

    $ 295       $ 312,744   

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

      2,100         2,078,160   
     

 

 

  
      $ 2,390,904   
     

 

 

  

Insured-Utilities — 2.2%

      

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

    $ 890       $ 941,237   
     

 

 

  
      $ 941,237   
     

 

 

  

Insured-Water and Sewer — 10.2%

      

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

    $ 300       $ 315,120   

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

      500         565,780   

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

      1,250         843,988   

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

      2,155         1,455,034   

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

      1,920         1,238,054   
     

 

 

  
      $ 4,417,976   
     

 

 

  

Senior Living/Life Care — 0.5%

      

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

    $ 200       $ 202,868   
     

 

 

  
      $ 202,868   
     

 

 

  

Special Tax Revenue — 4.4%

      

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

    $ 1,500       $ 1,778,025   

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

      110         124,149   
     

 

 

  
      $ 1,902,174   
     

 

 

  

Transportation — 8.3%

      

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

    $ 465       $ 516,666   

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

      730         811,110   

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

      1,000         1,124,010   

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

      500         568,855   

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

      500         561,055   
     

 

 

  
      $ 3,581,696   
     

 

 

  

Water and Sewer — 3.3%

      

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

    $ 500       $ 568,900   

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

      765         839,863   
     

 

 

  
      $ 1,408,763   
     

 

 

  

Total Tax-Exempt Investments — 149.9%
(identified cost $59,444,263)

   

    $ 64,879,895   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (2.9)%

  

    $ (1,275,060 ) 
     

 

 

  

Institutional MuniFund Term Preferred Shares, at Liquidation Value — (47.2)%

  

    $     (20,450,000 ) 
     

 

 

  

Other Assets, Less Liabilities — 0.2%

  

    $ 137,204   
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

  

    $ 43,292,039   
     

 

 

  

 

3

 

 

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 December 31, 2015, 53.1% 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 23.3% 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 $862,350

Futures Contracts

 

Description

    Contracts    Position    Expiration
Month/Year		      Aggregate Cost     Value     Net Unrealized
Depreciation		  

Interest Rate Futures

                
U.S. Long Treasury Bond    20    Short      Mar-16       $     (3,071,525 )    $     (3,075,000 )    $     (3,475 ) 
               

 

 

  
                $ (3,475 ) 
               

 

 

  

Abbreviations:

 

AGC

   -   Assured Guaranty Corp.

AGM

   -   Assured Guaranty Municipal Corp.

AMBAC

   -   AMBAC Financial Group, Inc.

BHAC

   -   Berkshire Hathaway Assurance Corp.

CIFG

   -   CIFG Assurance North America, Inc.

FGIC

   -   Financial Guaranty Insurance Company

NPFG

   -   National Public Finance Guaranty Corp.

SFMR

   -   Single Family Mortgage Revenue

XLCA

   -   XL Capital Assurance, Inc.

At December 31, 2015, 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.

At December 31, 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 $3,475.

The cost and unrealized appreciation (depreciation) of investments of the Fund at December 31, 2015, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     55,859,413   
  

 

 

  

Gross unrealized appreciation

    $ 5,749,874   

Gross unrealized depreciation

      (119,392 ) 
  

 

 

  

Net unrealized appreciation

    $ 5,630,482   
  

 

 

  

 

4

 

 

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 December 31, 2015, 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

    $ —       $ 64,879,895       $ —       $ 64,879,895   

Total Investments

    $ —       $     64,879,895       $     —       $     64,879,895   
Liability Description                                

Futures Contracts

    $ (3,475 )     $ —       $ —       $ (3,475 ) 

Total

    $     (3,475 )     $ —       $ —       $ (3,475 ) 

The carrying amount of the Institutional MuniFund Term Preferred Shares (iMTP Shares) at December 31, 2015 approximated its fair value. If measured at fair value, iMTP Shares would have been considered as Level 2 in the fair value hierarchy at December 31, 2015.

The Fund held no investments or other financial instruments as of September 30, 2015 whose fair value was determined using Level 3 inputs. At December 31, 2015, 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:   February 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:   February 22, 2016

 

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