Eaton Vance California Municipal Bond Fund II

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-21217

Investment Company Act File Number

Eaton Vance California Municipal Bond Fund II

(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, 2013

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

California Municipal Bond Fund II

June 30, 2013

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 172.4%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 18.7%

      

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

    $ 1,370       $ 1,448,926   

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

      395         429,420   

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

      160         171,109   

California Educational Facilities Authority, (Loyola Marymount University),
5.00%, 10/1/22

      70         79,512   

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

      380         398,259   

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

      890         956,020   

California Educational Facilities Authority, (Stanford University), 5.00%, 6/1/43

      525         616,623   

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

      115         131,708   

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

      1,200         1,321,908   

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

      330         350,308   

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

      210         221,159   

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

      145         149,945   

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

      405         448,687   

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

      425         466,251   

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

      450         490,190   

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

      1,000         1,089,800   
     

 

 

  
      $ 8,769,825   
     

 

 

  

Electric Utilities — 9.0%

      

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

    $ 745       $ 820,595   

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

      1,050         998,697   

Sacramento Municipal Utility District, 5.00%, 8/15/30

      420         452,176   

Sacramento Municipal Utility District, 5.00%, 8/15/31

      125         133,785   

Southern California Public Power Authority, (Tieton Hydropower), 5.00%, 7/1/30

      1,000         1,071,950   

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

      675         736,655   
     

 

 

  
      $ 4,213,858   
     

 

 

  

General Obligations — 16.6%

      

California, 5.50%, 11/1/35

    $ 1,300       $ 1,408,303   

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

      110         108,057   

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

      120         117,648   

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

      145         143,521   

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

      520         526,672   

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

      1,850         1,984,440   

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

      1,510         1,425,757   

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

      720         779,155   

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

      455         492,055   

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

      350         380,898   

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

      410         443,903   
     

 

 

  
      $ 7,810,409   
     

 

 

  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Hospital — 17.5%

      

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

    $ 1,330       $ 1,371,948   

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

      1,425         1,474,690   

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

      475         503,624   

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

      475         495,762   

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

      750         814,770   

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

      800         805,784   

California Statewide Communities Development Authority, (Cottage Health System),
5.25%, 11/1/30

      1,000         1,075,830   

California Statewide Communities Development Authority, (John Muir Health),
5.00%, 8/15/36

      355         356,661   

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

      555         553,984   

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

      750         751,050   
     

 

 

  
      $ 8,204,103   
     

 

 

  

Insured-Education — 7.6%

      

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

    $ 420       $ 445,788   

California Educational Facilities Authority, (Pepperdine University), (AMBAC),
5.00%, 12/1/35

      1,000         1,053,280   

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

      2,000         2,086,520   
     

 

 

  
      $ 3,585,588   
     

 

 

  

Insured-Electric Utilities — 5.8%

      

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

    $ 1,500       $ 1,636,845   

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

      1,000         1,074,950   
     

 

 

  
      $ 2,711,795   
     

 

 

  

Insured-Escrowed/Prerefunded — 12.3%

      

California Infrastructure and Economic Development Bank, (Bay Area Toll Bridges), (AMBAC), Prerefunded to 1/1/28, 5.00%, 7/1/33

    $ 1,150       $ 1,402,988   

California Infrastructure and Economic Development Bank, (Bay Area Toll Bridges), (AMBAC), Prerefunded to 1/1/28, 5.00%, 7/1/36

      1,025         1,250,490   

Clovis Unified School District, (FGIC), (NPFG), Escrowed to Maturity, 0.00%, 8/1/20

      3,130         2,654,866   

Orange County Water District, Certificates of Participation, (NPFG), Escrowed to Maturity, 5.00%, 8/15/34

      395         454,965   
     

 

 

  
      $ 5,763,309   
     

 

 

  

Insured-General Obligations — 25.9%

      

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

    $ 725       $ 780,861   

Arcadia Unified School District, (Election of 2006), (AGM), 0.00%, 8/1/38

      7,125         1,811,603   

Arcadia Unified School District, (Election of 2006), (AGM), 0.00%, 8/1/40

      2,525         551,435   

Carlsbad Unified School District, (Election of 2006), (NPFG), 5.25%, 8/1/32

      1,500         1,634,340   

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

      6,675         2,061,106   

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

      575         576,771   

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

      1,250         1,327,288   

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

      1,040         1,118,426   

Union Elementary School District, (Election of 1999), (FGIC), (NPFG), 0.00%, 9/1/22

      3,200         2,296,928   
     

 

 

  
      $ 12,158,758   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Hospital — 6.5%

      

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

    $ 1,250       $ 1,285,050   

California Statewide Communities Development Authority, (Sutter Health), (AGM),
5.05%, 8/15/38(1)

      1,750         1,787,940   
     

 

 

  
      $ 3,072,990   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 7.2%

      

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

    $ 1,250       $ 1,551,338   

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

      1,750         1,841,910   
     

 

 

  
      $ 3,393,248   
     

 

 

  

Insured-Special Tax Revenue — 10.0%

      

Cathedral City Public Financing Authority, (Housing Redevelopment), (NPFG),
5.00%, 8/1/33

    $ 1,400       $ 1,348,396   

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

      1,535         1,290,490   

Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue, (AGM),
4.50%, 7/1/27

      360         365,166   

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

      2,675         383,675   

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

      1,225         1,327,986   
     

 

 

  
      $ 4,715,713   
     

 

 

  

Insured-Transportation — 4.1%

      

San Joaquin Hills Transportation Corridor Agency, (NPFG), 0.00%, 1/15/27

    $ 3,520       $ 1,611,737   

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

      330         336,630   
     

 

 

  
      $ 1,948,367   
     

 

 

  

Insured-Water and Sewer — 9.0%

      

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

    $ 1,235       $ 1,268,765   

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

      100         108,672   

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

      1,600         1,738,752   

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

      445         464,384   

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

      665         666,995   
     

 

 

  
      $ 4,247,568   
     

 

 

  

Special Tax Revenue — 6.5%

      

Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue,
5.00%, 7/1/31

    $ 1,490       $ 1,610,258   

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

      1,300         1,427,881   
     

 

 

  
      $ 3,038,139   
     

 

 

  

Transportation — 13.3%

      

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

    $ 1,190       $ 1,348,199   

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

      540         591,295   

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

      1,060         1,108,877   

Los Angeles Harbor Department, 5.00%, 8/1/25

      1,250         1,407,987   

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

      635         663,365   

San Jose, Airport Revenue, 5.00%, 3/1/20

      1,000         1,156,250   
     

 

 

  
      $ 6,275,973   
     

 

 

  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Water and Sewer — 2.4%

      

Metropolitan Water District of Southern California, 5.00%, 1/1/39

    $ 1,050       $ 1,124,151   
     

 

 

  
      $ 1,124,151   
     

 

 

  

Total Tax-Exempt Investments — 172.4%
(identified cost $78,159,633)

       $ 81,033,794   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (54.7)%

       $ (25,700,369 ) 
     

 

 

  

Other Assets, Less Liabilities — (17.7)%

       $ (8,331,561 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 47,001,864   
     

 

 

  

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.

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 June 30, 2013, 51.3% 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 1.6% to 18.0% 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 $313,877.

A summary of open financial instruments at June 30, 2013 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Appreciation		  
9/13    20 U.S. 10-Year Treasury Note    Short    $     (2,607,776 )    $     (2,531,250 )    $ 76,526   
9/13    23 U.S. Long Treasury Bond    Short      (3,234,692 )      (3,124,406 )      110,286   
            

 

 

  
             $     186,812   
            

 

 

  

At June 30, 2013, 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 June 30, 2013, 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 $186,812.

 

4

 

 

The cost and unrealized appreciation (depreciation) of investments of the Fund at June 30, 2013, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $      68,052,159   
  

 

 

  

Gross unrealized appreciation

    $ 4,498,810   

Gross unrealized depreciation

      (1,402,175 ) 
  

 

 

  

Net unrealized appreciation

    $ 3,096,635   
  

 

 

  

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, 2013, 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

    $ —       $ 81,033,794       $ —       $ 81,033,794   

Total Investments

    $ —       $ 81,033,794       $ —       $ 81,033,794   

Futures Contracts

    $ 186,812       $ —       $ —       $ 186,812   

Total

    $     186,812       $     81,033,794       $     —       $     81,220,606   

The Fund held no investments or other financial instruments as of September 30, 2012 whose fair value was determined using Level 3 inputs. At June 30, 2013, 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 II

 

By:   /s/ Cynthia J. Clemson
  Cynthia J. Clemson
  President
Date:   August 26, 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:   August 26, 2013

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   August 26, 2013