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, 2014

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

 

Eaton Vance

California Municipal Income Trust

February 28, 2014

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 165.1%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 18.6%

      

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

    $ 3,135       $ 3,323,257   

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

      195         214,590   

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

      330         357,374   

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

      745         786,750   

California Educational Facilities Authority, (Lutheran University), 5.00%, 10/1/29

      2,440         2,447,857   

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

      1,600         1,925,360   

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

      235         274,717   

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

      2,490         2,794,427   

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

      630         685,793   

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

      415         442,066   

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

      285         297,512   

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

      810         902,761   

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

      850         940,924   

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

      895         985,744   

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

      1,250         1,401,712   
     

 

 

  
      $ 17,780,844   
     

 

 

  

Electric Utilities — 14.8%

      

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

    $ 270       $ 305,934   

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

      2,275         2,427,789   

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

      1,500         1,639,080   

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

      2,170         2,448,823   

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

      1,500         1,671,645   

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

      1,335         1,493,425   

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

      1,795         1,994,766   

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

      680         732,156   

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

      1,300         1,435,395   
     

 

 

  
      $ 14,149,013   
     

 

 

  

General Obligations — 28.5%

      

California, 5.50%, 11/1/35

    $ 1,600       $ 1,822,096   

California, 6.00%, 4/1/38

      750         873,383   

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

      475         477,750   

Cupertino Union School District, (Election of 2012), 5.00%, 8/1/35

      1,000         1,093,710   

Cupertino Union School District, (Election of 2012), 5.00%, 8/1/36

      1,630         1,779,047   

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

      3,655         3,940,638   

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

      2,890         2,881,301   

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

      2,545         2,610,330   

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

      740         818,373   

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

      860         942,552   

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

      1,315         1,539,273   

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

      2,230         2,591,572   

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

      3,180         3,500,163   

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

      2,150         2,316,496   
     

 

 

  
   $ 27,186,684   
     

 

 

  

Hospital — 18.1%

      

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

    $ 1,000       $ 1,085,710   

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 190       $ 204,871   

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

      1,000         1,026,700   

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

      635         670,287   

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

      910         950,449   

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

      2,000         2,216,980   

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

      1,000         1,056,050   

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

      1,475         1,715,484   

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

      1,145         1,222,871   

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

      535         563,323   

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

      600         611,112   

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

      535         557,834   

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

      1,900         1,902,964   

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

      2,780         2,794,234   

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

      700         700,280   
     

 

 

  
      $ 17,279,149   
     

 

 

  

Industrial Development Revenue — 1.4%

      

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

    $ 1,235       $ 1,296,318   
     

 

 

  
      $ 1,296,318   
     

 

 

  

Insured-Education — 1.6%

      

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

    $ 1,250       $ 1,504,188   
     

 

 

  
      $ 1,504,188   
     

 

 

  

Insured-Electric Utilities — 3.1%

      

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

    $ 2,790       $ 2,955,280   
     

 

 

  
      $ 2,955,280   
     

 

 

  

Insured-Escrowed/Prerefunded — 3.8%

      

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

    $ 5,130       $ 3,593,001   
     

 

 

  
      $ 3,593,001   
     

 

 

  

Insured-General Obligations — 9.3%

      

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

    $ 6,485       $ 2,167,092   

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

      4,825         1,522,866   

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

      2,005         2,194,132   

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

      4,720         2,956,561   
     

 

 

  
      $ 8,840,651   
     

 

 

  

Insured-Hospital — 9.2%

      

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

    $ 2,900       $ 2,942,108   

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

      750         783,412   

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

      5,000         5,089,400   
     

 

 

  
      $ 8,814,920   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Lease Revenue/Certificates of Participation — 8.4%

      

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

    $ 4,410       $ 4,236,511   

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

      3,500         3,775,765   
     

 

 

  
      $ 8,012,276   
     

 

 

  

Insured-Special Tax Revenue — 0.6%

      

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

    $ 4,850       $ 615,126   
     

 

 

  
      $ 615,126   
     

 

 

  

Insured-Transportation — 11.4%

      

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

    $ 5,000       $ 2,208,500   

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

      4,500         1,881,135   

Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(1)(2)

      740         631,560   

San Joaquin Hills Transportation Corridor Agency, (NPFG), 0.00%, 1/15/32

      10,000         3,353,300   

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

      1,275         1,302,642   

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

      1,350         1,474,092   
     

 

 

  
      $ 10,851,229   
     

 

 

  

Insured-Water and Sewer — 4.0%

      

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

    $ 2,000       $ 2,180,980   

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

      1,830         1,681,312   
     

 

 

  
      $ 3,862,292   
     

 

 

  

Lease Revenue/Certificates of Participation — 1.0%

      

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

    $ 915       $ 964,090   
     

 

 

  
      $ 964,090   
     

 

 

  

Other Revenue — 0.7%

      

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

    $ 385       $ 394,571   

California Infrastructure and Economic Development Bank, (Performing Arts Center of Los Angeles), 5.00%, 12/1/37

      315         320,097   
     

 

 

  
      $ 714,668   
     

 

 

  

Senior Living/Life Care — 1.9%

      

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

    $ 290       $ 315,410   

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

      175         170,425   

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

      700         632,667   

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

      600         662,244   
     

 

 

  
   $ 1,780,746   
     

 

 

  

Special Tax Revenue — 14.0%

      

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

    $ 770       $ 826,310   

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

      285         286,975   

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

      460         436,614   

Corona Public Financing Authority, 5.80%, 9/1/20

      925         934,971   

Eastern Municipal Water District, Community Facilities District No. 2004-27, (Cottonwood Ranch), Special Tax Revenue, 5.00%, 9/1/27

      190         191,638   

Eastern Municipal Water District, Community Facilities District No. 2004-27, (Cottonwood Ranch), Special Tax Revenue, 5.00%, 9/1/36

      480         472,560   

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

      1,590         1,591,367   

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

      240         272,772   

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

      480         537,427   

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 240       $ 265,337   

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

      335         366,651   

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

      240         260,479   

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

      2,400         2,666,448   

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

      250         253,372   

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

      490         493,396   

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

      485         530,503   

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

      725         789,293   

Temecula Unified School District, 5.00%, 9/1/27

      250         253,930   

Temecula Unified School District, 5.00%, 9/1/37

      400         401,416   

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

      500         510,375   

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

      1,000         1,000,950   
     

 

 

  
   $ 13,342,784   
     

 

 

  

Transportation — 11.9%

      

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

    $ 1,000       $ 1,146,150   

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

      2,000         2,197,620   

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

      2,120         2,260,111   

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

      1,500         1,653,600   

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

      1,170         1,169,836   

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

      2,760         2,885,718   
     

 

 

  
   $ 11,313,035   
     

 

 

  

Water and Sewer — 2.8%

      

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

    $ 740       $ 833,477   

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

      1,700         1,833,705   
     

 

 

  
   $ 2,667,182   
     

 

 

  

Total Tax-Exempt Investments — 165.1%
(identified cost $149,858,015)

       $ 157,523,476   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (52.4)%

  

    $ (49,975,740 ) 
     

 

 

  

Other Assets, Less Liabilities — (12.7)%

       $ (12,121,952 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 95,425,784   
     

 

 

  

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.

BHAC

   -   Berkshire Hathaway Assurance Corp.

CIFG

   -   CIFG Assurance North America, Inc.

NPFG

   -   National Public Finance Guaranty Corp.

RADIAN

   -   Radian Group, Inc.

 

4

 

 

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, 2014, 31.1% 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 0.4% to 14.7% 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 $2,046,834.

A summary of open financial instruments at February 28, 2014 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Depreciation		  
6/14    38 U.S. 10-Year Treasury Note    Short    $     (4,708,962 )    $     (4,732,188 )    $ (23,226 ) 
6/14    43 U.S. Long Treasury Bond    Short      (5,641,320 )      (5,721,688 )      (80,368 ) 
            

 

 

  
             $     (103,594 ) 
            

 

 

  

At February 28, 2014, 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, 2014, 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 $103,594.

The cost and unrealized appreciation (depreciation) of investments of the Trust at February 28, 2014, as determined on a federal income tax basis, were as follows:

 

 

Aggregate cost

    $     134,755,288   
  

 

 

  

Gross unrealized appreciation

    $ 9,719,853   

Gross unrealized depreciation

      (1,631,665 ) 
  

 

 

  

Net unrealized appreciation

    $ 8,088,188   
  

 

 

  

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, 2014, 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 Investments

    $ —      $ 157,523,476       $ —       $ 157,523,476   

Total Investments

    $ —      $     157,523,476       $     —       $     157,523,476   
Liability Description                               

Futures Contracts

    $ (103,594 )    $ —       $ —       $ (103,594 ) 

Total

    $     (103,594 )    $ —       $ —       $ (103,594 ) 

 

5

 

 

The Trust held no investments or other financial instruments as of November 30, 2013 whose fair value was determined using Level 3 inputs. At February 28, 2014, 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 21, 2014

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 21, 2014

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   April 21, 2014