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

June 30, 2015

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

California Municipal Bond Fund

June 30, 2015

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 164.3%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 15.5%

      

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

    $ 10,000       $ 11,280,400   

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

      2,680         2,924,094   

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

      550         621,418   

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

      940         1,050,995   

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

      1,375         1,540,357   

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

      3,630         4,059,393   

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

      650         788,834   

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

      6,200         6,910,706   

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

      1,790         2,000,593   

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

      1,175         1,327,821   

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

      800         889,944   

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

      2,270         2,658,579   

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

      2,395         2,786,774   

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

      2,520         2,917,958   
     

 

 

  
      $ 41,757,866   
     

 

 

  

Electric Utilities — 1.8%

      

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

    $ 1,890       $ 2,136,551   

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

      2,375         2,625,515   
     

 

 

  
      $ 4,762,066   
     

 

 

  

General Obligations — 36.3%

      

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

    $ 6,900       $ 7,210,224   

California, 5.50%, 11/1/35

      4,600         5,456,980   

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

      20         22,395   

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

      9,750         10,917,660   

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

      10,000         11,169,600   

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

      7,020         7,810,944   

Palomar Community College District, 5.00%, 8/1/44(1)

      10,000         11,265,200   

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

      5,775         6,164,004   

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

      1,375         1,556,555   

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

      2,545         2,896,541   

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

      5,000         5,400,750   

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

      1,910         2,173,083   

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

      2,230         2,520,346   

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

      4,975         5,555,334   

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

      7,500         8,449,275   

Ventura County Community College District, 5.00%, 8/1/30(1)

      8,000         9,413,920   
     

 

 

  
      $ 97,982,811   
     

 

 

  

Hospital — 14.1%

      

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

    $ 1,750       $ 1,952,387   

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

      550         609,614   

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

      4,505         4,973,475   

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 1,795       $ 1,980,262   

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

      2,565         2,813,959   

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

      4,480         4,985,165   

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

      2,100         2,315,124   

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

      5,000         5,724,300   

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

      2,170         2,261,097   

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

      3,950         4,025,761   

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

      3,165         3,276,218   

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

      3,005         3,012,723   
     

 

 

  
      $ 37,930,085   
     

 

 

  

Insured-Education — 3.3%

      

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

    $ 8,250       $ 9,033,503   
     

 

 

  
      $ 9,033,503   
     

 

 

  

Insured-Electric Utilities — 13.0%

      

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

    $ 20,000       $ 21,018,590   

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

      2,240         2,428,429   

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

      2,000         2,210,760   

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

      3,840         3,593,664   

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

      1,000         1,112,870   

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

      4,000         4,792,680   
     

 

 

  
      $ 35,156,993   
     

 

 

  

Insured-Escrowed/Prerefunded — 8.0%

      

East Bay Municipal Utility District, Water System Revenue, (AGM), (FGIC), Prerefunded to 6/1/17, 5.00%, 6/1/32

    $ 345       $ 373,831   

East Bay Municipal Utility District, Water System Revenue, (NPFG), Prerefunded to 6/1/17, 5.00%, 6/1/32(1)

      6,500         7,043,205   

Riverside Community College District, (Election of 2004), (AGM), (NPFG), Prerefunded to 8/1/17, 5.00%, 8/1/32

      5,705         6,213,715   

Santa Clara Valley Transportation Authority, Sales Tax Revenue, (AMBAC), Prerefunded to 4/1/17, 5.00%, 4/1/32(1)

      7,500         8,074,500   
     

 

 

  
      $ 21,705,251   
     

 

 

  

Insured-General Obligations — 20.0%

      

Antelope Valley Community College District, (Election of 2004), (NPFG), Prerefunded to 8/1/17, 5.25%, 8/1/39

    $ 4,175       $ 4,568,870   

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

      4,135         3,529,388   

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

      23,150         8,445,352   

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

      4,500         5,028,795   

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

      6,100         6,567,870   

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

      2,300         1,907,505   

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

      5,000         3,969,500   

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

      5,630         4,897,030   

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

      4,840         4,079,539   

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

      4,365         3,518,888   

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

      3,955         2,937,814   

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

      5,240         4,568,546   
     

 

 

  
      $ 54,019,097   
     

 

 

  

 

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Hospital — 6.9%

      

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

    $ 2,205       $ 2,243,698   

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

      10,000         10,604,400   

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

      3,500         3,591,315   

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

      2,000         2,097,360   
     

 

 

  
      $ 18,536,773   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 4.1%

      

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

    $ 10,000       $ 10,949,700   
     

 

 

  
      $ 10,949,700   
     

 

 

  

Insured-Special Tax Revenue — 5.9%

      

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

    $ 595       $ 604,657   

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

      7,240         7,319,568   

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

      5,940         5,945,524   

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

      15,020         1,965,517   
     

 

 

  
      $ 15,835,266   
     

 

 

  

Insured-Transportation — 1.5%

      

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

    $ 1,885       $ 1,969,071   

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

      2,040         2,131,698   
     

 

 

  
      $ 4,100,769   
     

 

 

  

Insured-Water and Sewer — 4.5%

      

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

    $ 1,595       $ 1,764,182   

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

      5,000         5,374,300   

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

      2,750         2,826,505   

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

      2,075         2,093,384   
     

 

 

  
      $ 12,058,371   
     

 

 

  

Lease Revenue/Certificates of Participation — 1.1%

      

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

    $ 2,565       $ 2,848,817   
     

 

 

  
      $ 2,848,817   
     

 

 

  

Special Tax Revenue — 10.2%

      

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

    $ 625       $ 695,369   

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

      625         689,706   

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

      6,285         7,165,715   

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

      5         5,762   

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

      10,375         11,956,669   

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

      6,250         6,954,937   
     

 

 

  
      $ 27,468,158   
     

 

 

  

Transportation — 8.3%

      

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

    $ 6,500       $ 7,457,905   

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

      1,960         2,240,672   

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

      7,500         8,478,750   

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 2,190       $ 2,382,851   

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

      1,750         1,914,920   
     

 

 

  
      $ 22,475,098   
     

 

 

  

Water and Sewer — 9.8%

      

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

    $ 5,725       $ 6,485,223   

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

      7,500         8,304,825   

Orange County, Sanitation District Wastewater Revenue, 5.00%, 2/1/35(1)

      10,000         11,562,800   
     

 

 

  
      $ 26,352,848   
     

 

 

  

Total Tax-Exempt Investments — 164.3%
(identified cost $414,227,945)

       $ 442,973,472   
     

 

 

  

Other Assets, Less Liabilities — (64.3)%

  

    $ (173,427,228 ) 
     

 

 

  

Net Assets — 100.0%

  

    $ 269,546,244   
     

 

 

  

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 June 30, 2015, 40.9% 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 0.1% to 18.8% of total investments.

 

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

A summary of open financial instruments at June 30, 2015 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Appreciation		  
9/15    100 U.S. 10-Year Treasury Note    Short    $     (12,727,976 )    $     (12,617,188 )    $ 110,788   
9/15    79 U.S. Long Treasury Bond    Short      (12,220,781 )      (11,916,656 )      304,125   
            

 

 

  
             $     414,913   
            

 

 

  

At June 30, 2015, 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 enters into U.S. Treasury futures contracts to hedge against changes in interest rates.

 

4

 

 

At June 30, 2015, 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 $414,913.

The cost and unrealized appreciation (depreciation) of investments of the Fund at June 30, 2015, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     231,512,014   
  

 

 

  
Gross unrealized appreciation    $ 31,398,368   
Gross unrealized depreciation      (2,471,910 ) 
  

 

 

  

Net unrealized appreciation

    $ 28,926,458   
  

 

 

  

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, 2015, 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

    $ —       $ 442,973,472       $ —       $ 442,973,472   

Total Investments

    $ —       $     442,973,472       $     —       $     442,973,472   

Futures Contracts

    $ 414,913       $ —       $ —       $ 414,913   

Total

    $     414,913       $ 442,973,472       $ —       $ 443,388,385   

The Fund held no investments or other financial instruments as of September 30, 2014 whose fair value was determined using Level 3 inputs. At June 30, 2015, 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:   August 24, 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:   August 24, 2015

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   August 24, 2015