Eaton Vance California 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

811-21147

Investment Company Act File Number

Eaton Vance California 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, 2012

Date of Reporting Period

 

 

 


Item 1. Schedule of Investments


Eaton Vance

California Municipal Bond Fund

December 31, 2012

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 166.0%

 

                                                 
Security    Principal
Amount
(000’s omitted)
     Value  

Education — 15.2%

     

California Educational Facilities Authority, (California Institute of Technology), 5.00%, 11/1/39(1)

   $ 10,000       $ 11,342,600   

California Educational Facilities Authority, (Claremont McKenna College), 5.00%, 1/1/27

     2,680         3,080,714   

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

     550         646,409   

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

     940         1,080,962   

California Educational Facilities Authority, (Loyola Marymount University), 5.00%, 10/1/23

     365         433,054   

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

     1,375         1,536,054   

California Educational Facilities Authority, (Santa Clara University), 5.00%, 2/1/29

     3,630         4,196,570   

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

     650         798,915   

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

     6,200         7,199,564   

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

     1,790         2,056,191   

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

     1,175         1,338,607   

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

     800         887,504   

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

     2,270         2,675,308   

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

     2,395         2,811,922   

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

     2,520         2,948,098   
     

 

 

 
      $ 43,032,472   
     

 

 

 

Electric Utilities — 3.1%

     

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

   $ 3,905       $ 3,981,343   

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

     1,890         2,146,945   

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

     2,375         2,681,969   
     

 

 

 
      $ 8,810,257   
     

 

 

 

General Obligations — 19.1%

     

California, 5.50%, 11/1/35

   $ 4,600       $ 5,501,922   

Foothill-De Anza Community College District, 5.00%, 8/1/40(1)

     10,000         11,393,700   

Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/32

     545         608,013   

Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/33

     600         661,566   

Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/34

     655         718,522   

Larkspur-Corte Madera School District, (Election of 2011), 4.25%, 8/1/35

     645         717,208   

Larkspur-Corte Madera School District, (Election of 2011), 4.25%, 8/1/36

     785         868,453   

Larkspur-Corte Madera School District, (Election of 2011), 4.50%, 8/1/39

     2,815         3,167,522   

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

     7,020         8,065,840   

San Diego Community College District, (Election of 2002), 5.00%, 8/1/32

     1,375         1,609,493   

San Diego Community College District, (Election of 2006), 5.00%, 8/1/31

     2,545         2,989,662   

San Francisco Bay Area Rapid Transit District, (Election of 2004), 5.00%, 8/1/35

     5,000         5,627,350   

San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/33

     1,910         2,260,122   

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

     2,230         2,622,391   

San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/37

     15         17,354   

San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/37(1)

     4,975         5,755,627   

Tamalpais Union High School District, 5.00%, 8/1/26

     1,000         1,232,770   
     

 

 

 
      $ 53,817,515   
     

 

 

 

 

1

 

 


                                                 
Security    Principal
Amount
(000’s omitted)
     Value  

Hospital — 18.4%

     

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 7/1/23

   $ 2,000       $ 2,112,680   

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

     1,750         2,017,505   

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

     550         629,805   

California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%, 8/15/39

     4,580         5,001,131   

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

     2,565         2,891,730   

California Health Facilities Financing Authority, (City of Hope), 5.00%, 11/15/39

     2,565         2,912,378   

California Health Facilities Financing Authority, (Lucile Salter Packard Children’s Hospital), 5.00%, 8/15/51(1)

     10,000         11,203,100   

California Health Facilities Financing Authority, (Stanford Hospital and Clinics), 5.00%, 8/15/51

     6,000         6,721,860   

California Health Facilities Financing Authority, (Sutter Health), 5.25%, 8/15/31(1)

     5,000         5,875,950   

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

     2,170         2,373,568   

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

     3,950         3,958,927   

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

     3,165         3,296,157   

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

     3,005         3,010,199   
     

 

 

 
      $ 52,004,990   
     

 

 

 

Insured-Education — 11.7%

     

California Educational Facilities Authority, (Pepperdine University), (AMBAC), 5.00%, 12/1/32

   $ 2,300       $ 2,502,354   

California State University, (AGM), (BHAC), 5.00%, 11/1/39(1)

     8,250         9,118,560   

University of California, (AGM), 4.50%, 5/15/26(1)

     3,095         3,333,253   

University of California, (AGM), 4.50%, 5/15/28(1)

     6,690         7,074,340   

University of California, (BHAC), (FGIC), 4.75%, 5/15/37(1)

     10,750         10,994,885   
     

 

 

 
      $ 33,023,392   
     

 

 

 

Insured-Electric Utilities — 14.2%

     

Anaheim Public Financing Authority, (Electric System District), (BHAC), (NPFG), 4.50%, 10/1/32(1)

   $ 20,000       $ 21,448,000   

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

     2,240         2,482,570   

Los Angeles Department of Water and Power, Electric System Revenue, (AMBAC), (BHAC), 5.00%, 7/1/26(1)

     6,750         7,736,310   

Northern California Power Agency, (Hydroelectric), (AGC), 5.00%, 7/1/24

     2,000         2,342,620   

Sacramento Municipal Utility District, (AGM), 5.00%, 8/15/27

     1,000         1,133,990   

Sacramento Municipal Utility District, (AMBAC), (BHAC), 5.25%, 7/1/24

     4,000         4,975,280   
     

 

 

 
      $ 40,118,770   
     

 

 

 

Insured-General Obligations — 21.1%

     

Antelope Valley Community College District, (Election of 2004), (NPFG), 5.25%, 8/1/39

   $ 4,175       $ 4,695,581   

Burbank Unified School District, (FGIC), (NPFG), 0.00%, 8/1/21

     4,135         3,222,778   

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

     23,150         7,335,772   

El Camino Hospital District, (NPFG), 4.45%, 8/1/36

     2,385         2,476,632   

Palm Springs Unified School District, (Election of 2008), (AGC), 5.00%, 8/1/33

     4,500         5,089,905   

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

     5,705         6,404,889   

San Diego Community College District, (Election of 2006), (AGM), 5.00%, 8/1/32

     15         16,840   

San Diego Community College District, (Election of 2006), (AGM), 5.00%, 8/1/32(1)

     6,100         6,848,348   

San Diego Unified School District, (FGIC), (NPFG), 0.00%, 7/1/22

     2,300         1,673,572   

 

2

 

 


                                                 
Security    Principal
Amount
(000’s omitted)
     Value  

San Diego Unified School District, (FGIC), (NPFG), 0.00%, 7/1/23

   $ 5,000       $ 3,409,450   

San Juan Unified School District, (AGM), 0.00%, 8/1/21

     5,630         4,351,033   

San Mateo County, Community College District, (FGIC), (NPFG), 0.00%, 9/1/22

     4,840         3,722,250   

San Mateo County, Community College District, (FGIC), (NPFG), 0.00%, 9/1/23

     4,365         3,205,700   

San Mateo County, Community College District, (FGIC), (NPFG), 0.00%, 9/1/25

     3,955         2,653,765   

San Mateo Union High School District, (FGIC), (NPFG), 0.00%, 9/1/21

     5,240         4,259,439   

Ventura County, Community College District,, (NPFG), 5.00%, 8/1/27

     350         354,637   
     

 

 

 
      $ 59,720,591   
     

 

 

 

Insured-Hospital — 6.9%

     

California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), (BHAC), 5.00%, 11/15/34

   $ 2,205       $ 2,407,772   

California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC), 5.00%, 4/1/31(1)

     10,000         11,108,300   

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

     3,500         3,792,145   

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

     2,000         2,222,280   
     

 

 

 
      $ 19,530,497   
     

 

 

 

Insured-Lease Revenue/Certificates of Participation — 11.2%

     

Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27

   $ 3,885       $ 5,456,133   

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

     10,000         11,186,100   

San Jose Financing Authority, (Civic Center), (AMBAC), (BHAC), 5.00%, 6/1/37

     1,000         1,003,070   

San Jose Financing Authority, (Civic Center), (AMBAC), (BHAC), 5.00%, 6/1/37(1)

     14,000         14,042,980   
     

 

 

 
      $ 31,688,283   
     

 

 

 

Insured-Special Tax Revenue — 13.2%

     

Ceres, Redevelopment Agency Tax, (AMBAC), 4.00%, 11/1/36

   $ 7,765       $ 6,954,334   

Hesperia Public Financing Authority, (Redevelopment and Housing Projects), (XLCA), 5.00%, 9/1/31

     595         538,594   

Hesperia Public Financing Authority, (Redevelopment and Housing Projects), (XLCA), 5.00%, 9/1/37

     7,240         6,222,128   

Pomona, Public Financing Authority, (NPFG), 5.00%, 2/1/33

     5,940         5,941,307   

Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54

     24,010         1,936,407   

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

     15,740         2,443,792   

San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, (AGM), 4.25%, 7/1/36

     1,600         1,649,056   

San Jose Redevelopment Agency, (Merged Area Redevelopment Project), (XLCA), 4.25%, 8/1/36

     3,680         3,297,758   

Santa Clara Valley Transportation Authority, Sales Tax Revenue, (AMBAC), 5.00%, 4/1/32(1)

     7,500         8,425,200   
     

 

 

 
      $ 37,408,576   
     

 

 

 

Insured-Transportation — 2.0%

     

San Joaquin Hills, Transportation Corridor Agency, (NPFG), 0.00%, 1/15/30

   $ 3,445       $ 1,443,696   

San Jose, Airport Revenue, (AMBAC), 5.00%, 3/1/33

     1,885         2,003,058   

San Jose, Airport Revenue, (AMBAC), 5.00%, 3/1/37

     2,040         2,153,934   
     

 

 

 
      $ 5,600,688   
     

 

 

 

Insured-Water and Sewer — 9.8%

     

Calleguas Las Virgines Public Financing Authority, (Municipal Water District), (BHAC), (FGIC), 4.75%, 7/1/37(1)

   $ 7,000       $ 7,467,740   

 

3

 

 


                                                 
Security    Principal
Amount
(000’s omitted)
     Value  

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

   $ 345       $ 388,912   

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

     6,500         7,327,320   

Riverside, Water System Revenue, (AGM), 5.00%, 10/1/38

     1,595         1,759,157   

San Luis Obispo County, (Nacimiento Water Project), (BHAC), (NPFG), 5.00%, 9/1/38

     5,000         5,444,750   

San Luis Obispo County, (Nacimiento Water Project), (NPFG), 4.50%, 9/1/40

     2,750         2,845,893   

Santa Clara Valley Water District, (AGM), 3.75%, 6/1/28

     2,225         2,309,216   
     

 

 

 
      $ 27,542,988   
     

 

 

 

Special Tax Revenue — 9.6%

     

Contra Costa Community College District, 4.00%, 8/1/30(1)

   $ 7,500       $ 8,215,425   

San Diego County Regional Transportation Commission, 5.00%, 4/1/42(1)

     10,000         11,521,700   

San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, 5.00%, 7/1/36(1)

     6,250         7,324,562   
     

 

 

 
      $ 27,061,687   
     

 

 

 

Transportation — 8.1%

     

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

   $ 6,500       $ 7,787,910   

Long Beach, Harbor Revenue, 5.00%, 5/15/27

     1,960         2,309,801   

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

     7,500         8,503,800   

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

     2,190         2,449,559   

San Jose, Airport Revenue, 5.00%, 3/1/31

     1,750         1,950,112   
     

 

 

 
      $ 23,001,182   
     

 

 

 

Water and Sewer — 2.4%

     

Beverly Hills Public Financing Authority, Water Revenue, 5.00%, 6/1/37

   $ 10       $ 11,833   

Beverly Hills Public Financing Authority, Water Revenue, 5.00%, 6/1/37(1)

     5,725         6,774,106   
     

 

 

 
      $ 6,785,939   
     

 

 

 

Total Tax-Exempt Investments — 166.0%
(identified cost $433,907,797)

      $ 469,147,827   
     

 

 

 

Other Assets, Less Liabilities — (66.0)%

      $ (186,511,839
     

 

 

 

Net Assets — 100.0%

      $ 282,635,988   
     

 

 

 

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

 

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.

XLCA

  -   XL Capital Assurance, Inc.

The Fund 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 December 31, 2012, 54.3% 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 ranged from 2.1% to 21.7% of total investments.

 

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

 

4

 

 


A summary of open financial instruments at December 31, 2012 is as follows:

Futures Contracts

 

Expiration
Month/Year
  

Contracts

   Position    Aggregate Cost     Value     Net Unrealized
Appreciation
 
3/13    200 U.S. 10-Year Treasury Note    Short    $     (26,610,625   $     (26,556,250   $     54,375   
3/13    194 U.S. 30-Year Treasury Bond    Short      (29,098,129     (28,614,999     483,130   
            

 

 

 
             $     537,505   
            

 

 

 

At December 31, 2012, the Fund had sufficient cash and/or securities to cover commitments under these 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 purchases and sells U.S. Treasury futures contracts to hedge against changes in interest rates.

At December 31, 2012, the aggregate fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in an asset position and whose primary underlying risk exposure is interest rate risk was $537,505.

The cost and unrealized appreciation (depreciation) of investments of the Fund at December 31, 2012, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

   $     247,729,569   
  

 

 

 

Gross unrealized appreciation

   $     32,190,685   

Gross unrealized depreciation

     (3,047,427
  

 

 

 

Net unrealized appreciation

   $     29,143,258   
  

 

 

 

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, 2012, 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

   $       $     469,147,827       $     —       $     469,147,827   

Total Investments

   $       $ 469,147,827       $       $ 469,147,827   

Futures Contracts

   $     537,505       $       $       $ 537,505   

Total

   $     537,505       $ 469,147,827       $       $ 469,685,332   

The Fund held no investments or other financial instruments as of September 30, 2012 whose fair value was determined using Level 3 inputs. At December 31, 2012, 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 California Municipal Bond Fund

 

By:   /s/ Cynthia J. Clemson
  Cynthia J. Clemson
  President
Date:   February 22, 2013

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/ Cynthia J. Clemson
  Cynthia J. Clemson
  President
Date:   February 22, 2013
By:   /s/ Barbara E. Campbell
  Barbara E. Campbell
  Treasurer
Date:   February 22, 2013