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

August 31, 2014

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

California Municipal Income Trust

August 31, 2014

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 160.1%

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Education — 18.1%

      

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

    $ 3,135       $ 3,517,689   

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

      195         220,758   

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

      330         369,059   

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

      745         832,746   

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

      2,440         2,443,831   

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

      1,600         1,917,904   

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

      235         283,847   

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

      2,490         2,823,710   

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

      630         705,348   

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

      415         460,505   

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

      285         312,468   

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

      810         928,090   

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

      850         970,122   

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

      895         1,015,682   

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

      1,250         1,435,437   
     

 

 

  
      $ 18,237,196   
     

 

 

  

Electric Utilities — 14.4%

      

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

    $ 270       $ 317,701   

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

      2,275         2,428,426   

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

      1,500         1,710,150   

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

      2,170         2,465,489   

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

      1,500         1,715,010   

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

      1,335         1,552,458   

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

      1,795         2,076,492   

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

      680         775,574   

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

      1,300         1,470,079   
     

 

 

  
      $ 14,511,379   
     

 

 

  

Escrowed/Prerefunded — 1.8%

      

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

    $ 1,475       $ 1,815,533   
     

 

 

  
      $ 1,815,533   
     

 

 

  

General Obligations — 24.3%

      

California, 5.50%, 11/1/35

    $ 1,600       $ 1,875,408   

California, 6.00%, 4/1/38

      750         893,423   

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

      475         478,909   

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

      3,655         4,094,550   

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

      2,890         3,057,793   

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

      2,545         2,731,523   

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

      860         975,593   

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

      1,315         1,598,540   

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

      2,230         2,696,048   

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

      3,180         3,648,382   

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

      2,150         2,449,151   
     

 

 

  
      $ 24,499,320   
     

 

 

  

 

1

 

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Hospital — 15.4%

      

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

    $ 1,000       $ 1,132,080   

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

      190         213,661   

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

      1,000         1,021,960   

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

      635         715,467   

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

      910         1,020,438   

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

      2,000         2,295,400   

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

      1,000         1,113,410   

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

      1,145         1,285,194   

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

      535         592,314   

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

      600         637,146   

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

      1,900         1,903,990   

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

      2,780         2,862,788   

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

      700         701,211   
     

 

 

  
      $ 15,495,059   
     

 

 

  

Industrial Development Revenue — 1.3%

      

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

    $ 1,235       $ 1,295,293   
     

 

 

  
      $ 1,295,293   
     

 

 

  

Insured-Education — 1.5%

      

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

    $ 1,250       $ 1,498,363   
     

 

 

  
      $ 1,498,363   
     

 

 

  

Insured-Electric Utilities — 3.0%

      

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

    $ 2,790       $ 3,060,044   
     

 

 

  
      $ 3,060,044   
     

 

 

  

Insured-Escrowed/Prerefunded — 3.9%

      

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

    $ 5,130       $ 3,887,924   
     

 

 

  
      $ 3,887,924   
     

 

 

  

Insured-General Obligations — 9.3%

      

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

    $ 6,485       $ 2,306,650   

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

      4,825         1,621,634   

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

      2,005         2,208,066   

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

      4,720         3,234,333   
     

 

 

  
      $ 9,370,683   
     

 

 

  

Insured-Hospital — 8.9%

      

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

    $ 2,900       $ 2,987,203   

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

      750         788,130   

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

      5,000         5,217,800   
     

 

 

  
      $ 8,993,133   
     

 

 

  

 

2

 

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Insured-Lease Revenue/Certificates of Participation — 8.1%

      

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

    $ 4,410       $ 4,271,129   

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

      3,500         3,901,730   
     

 

 

  
      $ 8,172,859   
     

 

 

  

Insured-Special Tax Revenue — 2.1%

      

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

    $ 4,850       $ 662,995   

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

      370         429,215   

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

      930         1,047,319   
     

 

 

  
      $ 2,139,529   
     

 

 

  

Insured-Transportation — 12.0%

      

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

    $ 5,000       $ 2,513,650   

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

      4,500         2,175,030   

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

      740         694,446   

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

      10,000         3,954,800   

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

      1,275         1,330,615   

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

      1,350         1,482,030   
     

 

 

  
      $ 12,150,571   
     

 

 

  

Insured-Water and Sewer — 3.4%

      

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

    $ 2,000       $ 2,212,120   

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

      1,230         1,229,963   
     

 

 

  
      $ 3,442,083   
     

 

 

  

Lease Revenue/Certificates of Participation — 1.0%

      

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

    $ 915       $ 1,028,341   
     

 

 

  
      $ 1,028,341   
     

 

 

  

Other Revenue — 0.4%

      

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

    $ 385       $ 401,216   
     

 

 

  
      $ 401,216   
     

 

 

  

Senior Living/Life Care — 2.5%

      

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

    $ 290       $ 328,649   

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

      175         177,371   

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

      700         702,058   

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

      600         695,748   

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

      535         597,338   
     

 

 

  
      $ 2,501,164   
     

 

 

  

Special Tax Revenue — 14.5%

      

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

    $ 770       $ 862,662   

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

      285         293,741   

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

      460         469,140   

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

      190         194,503   

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

      480         487,478   

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

      1,590         1,592,957   

 

3

 

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

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

    $ 240       $ 276,864   

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

      480         549,979   

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

      240         272,095   

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

      335         376,935   

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

      240         268,061   

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

      2,400         2,784,240   

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

      250         254,103   

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

      490         495,699   

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

      485         547,114   

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

      725         815,292   

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

      1,600         1,874,064   

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

      250         256,818   

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

      400         408,216   

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

      500         522,005   

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

      1,000         1,001,400   
     

 

 

  
      $ 14,603,366   
     

 

 

  

Transportation — 11.5%

      

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

    $ 1,000       $ 1,164,020   

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

      2,000         2,149,880   

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

      2,120         2,403,380   

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

      1,500         1,678,845   

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

      1,170         1,172,141   

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

      2,760         2,983,726   
     

 

 

  
      $ 11,551,992   
     

 

 

  

Water and Sewer — 2.7%

      

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

    $ 740       $ 847,626   

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

      1,700         1,899,240   
     

 

 

  
      $ 2,746,866   
     

 

 

  

Total Tax-Exempt Investments — 160.1%
(identified cost $147,955,411)

       $ 161,401,914   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (49.6)%

       $ (49,976,199 ) 
     

 

 

  

Other Assets, Less Liabilities — (10.5)%

       $ (10,625,120 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 100,800,595   
     

 

 

  

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.

 

4

 

 

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 August 31, 2014, 32.7% 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 15.0% 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 $2,076,763.

A summary of open financial instruments at August 31, 2014 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Depreciation		  
12/14    38 U.S. 10-Year Treasury Note    Short    $     (4,760,322 )    $     (4,779,688 )    $ (19,366 ) 
12/14    43 U.S. Long Treasury Bond    Short      (5,976,921 )      (6,024,031 )      (47,110 ) 
            

 

 

  
             $     (66,476 ) 
            

 

 

  

At August 31, 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 August 31, 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 $66,476.

The cost and unrealized appreciation (depreciation) of investments of the Trust at August 31, 2014, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     133,135,653   
  

 

 

  

Gross unrealized appreciation

    $ 14,415,535   

Gross unrealized depreciation

      (459,274 ) 
  

 

 

  

Net unrealized appreciation

    $ 13,956,261   
  

 

 

  

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.

 

5

 

 

At August 31, 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

    $ —      $     161,401,914       $     —       $     161,401,914   

Total Investments

    $ —      $ 161,401,914       $ —       $ 161,401,914   
Liability Description                               

Futures Contracts

    $ (66,476 )    $ —       $ —       $ (66,476 ) 

Total

    $     (66,476 )    $ —       $ —       $ (66,476 ) 

The Trust held no investments or other financial instruments as of November 30, 2013 whose fair value was determined using Level 3 inputs. At August 31, 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:   October 27, 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:   October 27, 2014

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   October 27, 2014