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, 2015

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

California Municipal Income Trust

August 31, 2015

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Municipal Securities — 153.9%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 15.6%

      

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

    $ 3,135       $ 3,439,941   

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

      195         223,293   

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

      330         373,821   

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

      745         835,160   

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

      1,600         1,888,656   

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

      235         285,269   

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

      2,490         2,768,108   

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

      630         707,597   

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

      415         475,549   

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

      285         323,578   

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

      810         951,191   

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

      850         991,839   

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

      895         1,039,381   

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

      1,045         1,176,179   

University of California, Prerefunded to 5/15/19, 5.25%, 5/15/39

      205         236,416   
     

 

 

  
      $ 15,715,978   
     

 

 

  

Electric Utilities — 13.8%

      

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

    $ 270       $ 309,911   

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

      2,275         2,347,322   

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

      1,500         1,699,770   

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

      2,170         2,403,492   

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

      1,500         1,682,625   

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

      1,335         1,567,637   

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

      1,795         2,107,797   

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

      680         770,012   

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

      900         992,268   
     

 

 

  
      $ 13,880,834   
     

 

 

  

Escrowed/Prerefunded — 3.0%

      

California Department of Water Resources, Prerefunded to 6/1/18, 5.00%, 12/1/29

    $ 715       $ 797,168   

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

      1,475         1,728,552   

Vernon, Electric System Revenue, Prerefunded to 8/1/19, 5.125%, 8/1/21

      400         444,956   
     

 

 

  
      $ 2,970,676   
     

 

 

  

General Obligations — 28.4%

      

California, 5.00%, 10/1/31

    $ 1,885       $ 2,174,668   

California, 5.50%, 11/1/35

      1,600         1,906,464   

California, 6.00%, 4/1/38

      750         874,163   

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

      140         140,393   

Escondido, 5.00%, 9/1/36

      1,000         1,143,800   

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

      3,655         4,127,409   

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 2,890       $ 3,033,980   

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

      1,545         1,644,158   

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

      860         979,944   

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

      1,315         1,566,375   

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

      2,230         2,641,413   

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

      3,180         3,568,469   

Tamalpais Union High School District, 5.00%, 8/1/27

      930         1,116,502   

Tamalpais Union High School District, 5.00%, 8/1/28

      1,000         1,193,840   

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

      2,150         2,446,098   
     

 

 

  
      $ 28,557,676   
     

 

 

  

Hospital — 14.4%

      

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

    $ 1,000       $ 1,122,750   

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

      190         212,173   

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

      635         706,927   

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

      910         1,008,134   

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

      2,000         2,279,500   

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

      1,000         1,103,910   

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

      1,145         1,292,682   

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

      535         598,483   

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

      600         622,764   

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

      1,900         1,935,473   

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

      2,780         2,878,607   

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

      700         701,925   
     

 

 

  
      $ 14,463,328   
     

 

 

  

Industrial Development Revenue — 1.2%

      

California Pollution Control Financing Authority, (Waste Management, Inc.), (AMT), 5.125%, 11/1/23(3)

    $ 1,235       $ 1,256,625   
     

 

 

  
      $ 1,256,625   
     

 

 

  

Insured-Education — 1.5%

      

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

    $ 1,250       $ 1,475,513   
     

 

 

  
      $ 1,475,513   
     

 

 

  

Insured-Electric Utilities — 3.0%

      

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

    $ 2,790       $ 3,015,823   
     

 

 

  
      $ 3,015,823   
     

 

 

  

Insured-Escrowed/Prerefunded — 8.2%

      

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

    $ 2,000       $ 2,155,080   

Foothill/Eastern Transportation Corridor Agency, (AGC), (AGM), Escrowed to Maturity, 0.00%, 1/1/26

      5,130         3,934,197   

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

      2,005         2,175,064   
     

 

 

  
      $ 8,264,341   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-General Obligations — 7.4%

      

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

    $ 6,485       $ 2,380,319   

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

      4,825         1,674,709   

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

      4,720         3,384,429   
     

 

 

  
      $ 7,439,457   
     

 

 

  

Insured-Hospital — 8.9%

      

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

    $ 2,900       $ 2,963,249   

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

      750         764,865   

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

      5,000         5,241,550   
     

 

 

  
      $ 8,969,664   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 8.1%

      

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

    $ 4,410       $ 4,324,711   

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

      3,500         3,821,580   
     

 

 

  
      $ 8,146,291   
     

 

 

  

Insured-Special Tax Revenue — 2.2%

      

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

    $ 4,850       $ 768,240   

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

      370         424,420   

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

      930         1,040,716   
     

 

 

  
      $ 2,233,376   
     

 

 

  

Insured-Transportation — 8.3%

      

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

    $ 5,000       $ 2,658,850   

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

      4,500         2,282,625   

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

      740         664,845   

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

      1,275         1,340,854   

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

      1,350         1,442,394   
     

 

 

  
      $ 8,389,568   
     

 

 

  

Lease Revenue/Certificates of Participation — 1.0%

      

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

    $ 915       $ 1,032,504   
     

 

 

  
      $ 1,032,504   
     

 

 

  

Other Revenue — 0.4%

      

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

    $ 385       $ 411,307   
     

 

 

  
      $ 411,307   
     

 

 

  

Senior Living/Life Care — 2.5%

      

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

    $ 290       $ 327,366   

California Statewide Communities Development Authority, (Southern California Presbyterian Homes), 4.75%, 11/15/26(3)

      175         177,345   

California Statewide Communities Development Authority, (Southern California Presbyterian Homes), 4.875%, 11/15/36(3)

      700         700,224   

California Statewide Communities Development Authority, (Southern California Presbyterian Homes), 7.25%, 11/15/41(3)

      600         698,850   

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

      535         608,370   
     

 

 

  
      $ 2,512,155   
     

 

 

  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Special Tax Revenue — 11.4%

      

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

    $ 770       $ 855,662   

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

      285         293,809   

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

      460         471,072   

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

      1,590         1,593,864   

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

      240         277,529   

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

      480         549,734   

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

      240         272,568   

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

      335         378,205   

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

      240         269,350   

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

      2,400         2,742,600   

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

      485         554,263   

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

      725         825,130   

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

      1,600         1,863,552   

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

      500         518,845   
     

 

 

  
      $ 11,466,183   
     

 

 

  

Transportation — 12.7%

      

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

    $ 2,000       $ 2,056,000   

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

      1,000         1,151,330   

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

      2,120         2,401,112   

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

      1,500         1,642,395   

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

      2,760         3,052,063   

San Joaquin Hills Transportation Corridor Agency, 5.00%, 1/15/34

      2,265         2,451,523   
     

 

 

  
      $ 12,754,423   
     

 

 

  

Water and Sewer — 1.9%

      

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

    $ 25       $ 27,747   

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

      1,700         1,888,870   
     

 

 

  
      $ 1,916,617   
     

 

 

  

Total Tax-Exempt Municipal Securities — 153.9%
(identified cost $142,624,164)

       $ 154,872,339   
     

 

 

  

Taxable Municipal Securities — 1.9%

      
Security    Principal
Amount
(000’s omitted)		      Value  

Hospital — 1.9%

      

California Statewide Communities Development Authority, (Loma Linda University Medical Center), 6.00%, 12/1/24

    $ 1,750       $ 1,872,168   
     

 

 

  

Total Taxable Municipal Securities — 1.9%
(identified cost $1,750,000)

       $ 1,872,168   
     

 

 

  

 

4

 

 

                                                 

Corporate Bonds & Notes — 0.7%

      
Security    Principal
Amount
(000’s omitted)		      Value  

Hospital — 0.7%

      

Dignity Health, 3.812%, 11/1/24

    $ 720       $ 744,486   
     

 

 

  

Total Corporate Bonds & Notes — 0.7%
(identified cost $720,000)

       $ 744,486   
     

 

 

  

Total Investments — 156.5%
(identified cost $145,094,164)

       $ 157,488,993   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (49.7)%

       $ (49,975,637 ) 
     

 

 

  

Other Assets, Less Liabilities — (6.8)%

       $ (6,872,627 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 100,640,729   
     

 

 

  

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.

BAM

   -   Build America Mutual Assurance Co.

BHAC

   -   Berkshire Hathaway Assurance Corp.

CIFG

   -   CIFG Assurance North America, Inc.

NPFG

   -   National Public Finance Guaranty Corp.

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, 2015, 30.4% 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 15.5% 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 $1,994,581.

 

(3) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be sold in certain transactions (normally to qualified institutional buyers) and remain exempt from registration. At August 31, 2015, the aggregate value of these securities is $2,833,044 or 2.8% of the Trust’s net assets applicable to common shares.

The cost and unrealized appreciation (depreciation) of investments of the Trust at August 31, 2015, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     130,377,469   
  

 

 

  

Gross unrealized appreciation

    $ 13,191,139   

Gross unrealized depreciation

      (389,615 ) 
  

 

 

  

Net unrealized appreciation

    $ 12,801,524   
  

 

 

  

 

5

 

 

A summary of open financial instruments at August 31, 2015 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Appreciation
(Depreciation)		  
12/15    38 U.S. 10-Year Treasury Note    Short    $     (4,839,585 )    $     (4,828,375 )    $     11,210   
12/15    29 U.S. Long Treasury Bond    Short      (4,481,578 )      (4,484,125 )      (2,547 ) 
            

 

 

  
             $ 8,663   
            

 

 

  

At August 31, 2015, 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 enters into U.S. Treasury futures contracts to hedge against changes in interest rates.

At August 31, 2015, the aggregate fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in an asset and in a liability position and whose primary underlying risk exposure is interest rate risk was $11,210 and $2,547, respectively.

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 August 31, 2015, 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 Municipal Securities

    $ —       $     154,872,339       $     —       $ 154,872,339   

Taxable Municipal Securities

      —         1,872,168         —         1,872,168   

Corporate Bonds & Notes

      —         744,486         —         744,486   

Total Investments

    $ —       $ 157,488,993       $ —       $ 157,488,993   

Futures Contracts

    $ 11,210       $ —       $ —       $ 11,210   

Total

    $     11,210       $ 157,488,993       $ —       $     157,500,203   
Liability Description                                

Futures Contracts

    $ (2,547 )     $ —       $ —       $ (2,547 ) 

Total

    $ (2,547 )     $ —       $ —       $ (2,547 ) 

The Trust held no investments or other financial instruments as of November 30, 2014 whose fair value was determined using Level 3 inputs. At August 31, 2015, 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 26, 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:   October 26, 2015

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   October 26, 2015