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, 2014

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

California Municipal Bond Fund

December 31, 2014

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 162.7%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 15.3%

      

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

    $ 10,000       $ 11,524,600   

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

      2,680         2,983,832   

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

      550         640,387   

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

      940         1,080,380   

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

      1,375         1,549,886   

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

      3,630         4,089,231   

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

      650         789,860   

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

      6,200         6,975,744   

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

      1,790         2,018,476   

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

      1,175         1,328,537   

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

      800         895,208   

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

      2,270         2,674,332   

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

      2,395         2,808,569   

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

      2,520         2,941,495   
     

 

 

  
      $ 42,300,537   
     

 

 

  

Electric Utilities — 1.7%

      

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

    $ 1,890       $ 2,150,688   

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

      2,375         2,675,081   
     

 

 

  
      $ 4,825,769   
     

 

 

  

General Obligations — 31.7%

      

Burbank Unified School District, (Election of 2013), 4.00%, 8/1/31(1)

    $ 6,900       $ 7,405,080   

California, 5.00%, 10/1/31

      7,550         9,018,852   

California, 5.50%, 11/1/35

      4,600         5,464,018   

Contra Costa Community College District, (Election of 2006), 5.00%, 8/1/38

      20         23,031   

Contra Costa Community College District, (Election of 2006), 5.00%, 8/1/38(1)

      9,750         11,227,710   

Foothill-De Anza Community College District, 5.00%, 8/1/36(1)

      10,000         11,323,700   

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

      7,020         7,958,434   

San Bernardino Community College District, 4.00%, 8/1/27(1)

      5,775         6,322,297   

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

      1,375         1,600,940   

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

      2,545         2,980,653   

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 5,000       $ 5,517,650   

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

      1,910         2,205,840   

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

      2,230         2,557,319   

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

      4,975         5,661,550   

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

      7,500         8,636,700   
     

 

 

  
      $ 87,903,774   
     

 

 

  

Hospital — 13.9%

      

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

    $ 1,750       $ 1,998,675   

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

      550         623,810   

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

      4,505         4,982,215   

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

      1,795         2,047,700   

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

      2,565         2,906,863   

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

      4,480         5,178,790   

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

      2,100         2,395,302   

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

      5,000         5,760,100   

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

      2,170         2,299,506   

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

      3,950         3,959,796   

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

      3,165         3,306,254   

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

      3,005         3,013,654   
     

 

 

  
   $ 38,472,665   
     

 

 

  

Insured-Education — 6.9%

      

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

    $ 8,250       $ 9,151,725   

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

      3,095         3,172,437   

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

      6,690         6,845,408   
     

 

 

  
   $ 19,169,570   
     

 

 

  

Insured-Electric Utilities — 15.6%

      

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

    $ 20,000       $ 21,314,386   

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

      2,240         2,442,138   

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

      6,750         7,437,217   

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

      2,000         2,265,360   

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

      3,840         3,828,403   

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

      1,000         1,136,180   

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

      4,000         4,945,280   
     

 

 

  
   $ 43,368,964   
     

 

 

  

Insured-Escrowed/Prerefunded — 2.7%

      

Calleguas Las Virgines Public Financing Authority, (Municipal Water District), (BHAC), (FGIC), Prerefunded to 7/1/16, 4.75%, 7/1/37

    $ 7,000       $ 7,458,780   
     

 

 

  
   $ 7,458,780   
     

 

 

  

Insured-General Obligations — 21.8%

      

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

    $ 4,175       $ 4,594,379   

Burbank Unified School District, (Election of 1997), (NPFG), 0.00%, 8/1/21

      4,135         3,537,079   

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

      23,150         8,342,102   

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 4,500       $ 5,083,650   

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

      5,705         6,241,897   

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

      6,100         6,680,659   

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

      2,300         1,916,797   

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

      5,000         3,994,200   

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

      5,630         4,841,012   

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

      4,840         4,117,436   

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

      4,365         3,549,662   

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

      3,955         2,948,176   

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

      5,240         4,615,235   
     

 

 

  
   $ 60,462,284   
     

 

 

  

Insured-Hospital — 6.8%

      

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

    $ 2,205       $ 2,295,648   

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

      10,000         10,783,500   

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

      3,500         3,659,180   

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

      2,000         2,122,260   
     

 

 

  
   $ 18,860,588   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 4.0%

      

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

    $ 10,000       $ 11,072,400   
     

 

 

  
   $ 11,072,400   
     

 

 

  

Insured-Special Tax Revenue — 8.7%

      

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

    $ 595       $ 612,356   

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

      7,240         7,400,801   

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

      5,940         5,947,009   

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

      15,020         2,107,907   

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

      7,500         8,125,950   
     

 

 

  
   $ 24,194,023   
     

 

 

  

Insured-Transportation — 1.5%

      

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

    $ 1,885       $ 1,992,407   

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

      2,040         2,122,926   
     

 

 

  
   $ 4,115,333   
     

 

 

  

Insured-Water and Sewer — 7.1%

      

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

    $ 345       $ 378,689   

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

      6,500         7,134,725   

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

      1,595         1,785,092   

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

      5,000         5,460,000   

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

      2,750         2,884,915   

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

      2,075         2,109,300   
     

 

 

  
   $ 19,752,721   
     

 

 

  

Lease Revenue/Certificates of Participation — 1.1%

      

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

    $ 2,565       $ 2,920,894   
     

 

 

  
   $ 2,920,894   
     

 

 

  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Special Tax Revenue — 10.2%

      

Jurupa Public Financing Authority, 5.00%, 9/1/30

    $ 625       $ 724,356   

Jurupa Public Financing Authority, 5.00%, 9/1/32

      625         714,806   

Riverside County Transportation Commission, Sales Tax Revenue, 5.25%, 6/1/39(1)

      6,285         7,362,930   

San Bernardino County Transportation Authority, 5.25%, 3/1/40

      5         5,929   

San Bernardino County Transportation Authority, 5.25%, 3/1/40(1)

      10,375         12,301,845   

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

      6,250         7,158,438   
     

 

 

  
   $ 28,268,304   
     

 

 

  

Transportation — 8.2%

      

Bay Area Toll Authority, Toll Bridge Revenue, (San Francisco Bay Area), Prerefunded to 4/1/19, 5.25%, 4/1/29(1)

    $ 6,500       $ 7,624,370   

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

      1,960         2,281,891   

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

      7,500         8,544,600   

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

      2,190         2,414,869   

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

      1,750         1,952,423   
     

 

 

  
   $ 22,818,153   
     

 

 

  

Water and Sewer — 5.5%

      

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

    $ 5,725       $ 6,673,575   

Los Angeles, Wastewater System Revenue, 5.00%, 6/1/43(1)

      7,500         8,575,275   
     

 

 

  
      $ 15,248,850   
     

 

 

  

Total Tax-Exempt Investments — 162.7%
(identified cost $411,498,037)

       $ 451,213,609   
     

 

 

  

Other Assets, Less Liabilities — (62.7)%

       $ (173,902,235 ) 
     

 

 

  

Net Assets — 100.0%

       $ 277,311,374   
     

 

 

  

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, 2014, 46.2% 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 1.7% to 18.7% 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, 2014 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Depreciation		  
3/15    100 U.S. 10-Year Treasury Note    Short    $     (12,609,192 )    $     (12,679,688 )    $ (70,496 ) 
3/15    119 U.S. Long Treasury Bond    Short      (16,734,265 )      (17,202,937 )      (468,672 ) 
            

 

 

  
             $     (539,168 ) 
            

 

 

  

At December 31, 2014, 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, 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 $539,168.

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

 

Aggregate cost

    $     236,099,302   
  

 

 

  

Gross unrealized appreciation

    $ 39,084,131   

Gross unrealized depreciation

      (1,169,824 ) 
  

 

 

  

Net unrealized appreciation

    $ 37,914,307   
  

 

 

  

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, 2014, 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

    $ —       $ 451,213,609       $ —       $ 451,213,609   

Total Investments

    $ —       $     451,213,609       $     —       $     451,213,609   
Liability Description                                

Futures Contracts

    $ (539,168 )     $ —       $ —       $ (539,168 ) 

Total

    $     (539,168 )     $ —       $ —       $     (539,168 ) 

The Fund held no investments or other financial instruments as of September 30, 2014 whose fair value was determined using Level 3 inputs. At December 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 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/ Payson F. Swaffield

  Payson F. Swaffield
  President
Date:   February 23, 2015

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 23, 2015

 

By:  

/s/ James F. Kirchner

  James F. Kirchner
  Treasurer
Date:   February 23, 2015