Eaton Vance Ohio 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

811-09149

Investment Company Act File Number

Eaton Vance Ohio 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, 2012

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Ohio Municipal Income Trust

August 31, 2012

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 149.3%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Bond Bank — 9.4%

      

Ohio Economic Development Commission, (Ohio Enterprise Bond Fund), (AMT), 4.85%, 6/1/25

    $ 550       $ 578,248   

Ohio Economic Development Commission, (Ohio Enterprise Bond Fund), (AMT), 5.85%, 12/1/22

      1,020         1,046,979   

Ohio Water Development Authority, Water Pollution Control Loan Fund, (Water Quality),
5.00%, 12/1/28

      250         294,190   

Ohio Water Development Authority, Water Pollution Control Loan Fund, (Water Quality),
5.00%, 6/1/30

      250         291,830   

Rickenbacker Port Authority, (OASBO Expanded Asset Pooled Financing Program), 5.375%, 1/1/32

      1,245         1,553,822   

Summit County Port Authority, (Twinsburg Township), 5.125%, 5/15/25

      295         298,145   
     

 

 

  
      $ 4,063,214   
     

 

 

  

Education — 19.4%

      

Miami University, 5.00%, 9/1/33

    $ 1,000       $ 1,170,050   

Ohio Higher Educational Facility Commission, (Kenyon College), 5.00%, 7/1/44

      440         473,145   

Ohio Higher Educational Facility Commission, (Kenyon College), 5.25%, 7/1/44

      1,250         1,373,963   

Ohio Higher Educational Facility Commission, (University of Dayton), 5.50%, 12/1/36

      1,000         1,114,610   

Ohio State University, 5.00%, 12/1/28

      500         650,830   

Ohio State University, 5.00%, 12/1/30

      1,675         2,188,823   

University of Cincinnati, 5.00%, 6/1/34

      500         573,170   

Wright State University, 5.00%, 5/1/31

      750         843,885   
     

 

 

  
      $ 8,388,476   
     

 

 

  

Electric Utilities — 3.0%

      

American Municipal Power, Inc., (AMP Fremont Energy Center), 5.00%, 2/15/32

    $ 470       $ 536,284   

Clyde, Electric System Revenue, (AMT), 6.00%, 11/15/14

      195         195,347   

Ohio Air Quality Development Authority, (Buckeye Power, Inc.), 6.00%, 12/1/40

      500         568,705   
     

 

 

  
      $ 1,300,336   
     

 

 

  

Escrowed/Prerefunded — 1.3%

      

Columbus, Prerefunded to 7/1/14, 5.00%, 7/1/23

    $ 500       $ 543,170   
     

 

 

  
      $ 543,170   
     

 

 

  

General Obligations — 20.2%

      

Barberton City School District, 4.50%, 12/1/33

    $ 900       $ 955,377   

Beavercreek City School District, 5.00%, 12/1/30

      1,750         1,995,035   

Central Ohio Solid Waste Authority, 5.125%, 9/1/27

      1,090         1,236,093   

Columbus City School District, 5.00%, 12/1/29

      1,000         1,171,670   

Huber Heights City School District, 4.75%, 12/1/25

      595         684,821   

Maple Heights City School District, 5.00%, 1/15/37

      1,000         1,102,910   

Ohio, 4.50%, 2/1/32

      400         447,792   

Symmes Township, Hamilton County, (Parkland Acquisition and Improvement),
5.25%, 12/1/37

      1,000         1,179,720   
     

 

 

  
      $ 8,773,418   
     

 

 

  

Hospital — 15.2%

      

Butler County, (Kettering Health Network Obligated Group), 5.25%, 4/1/31

    $ 500       $ 553,625   

Franklin County, (Nationwide Children’s Hospital), 5.00%, 11/1/34

      800         878,368   

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Hancock County, (Blanchard Valley Regional Health Center), 6.25%, 12/1/34

    $ 750       $ 883,508   

Miami County, (Upper Valley Medical Center), 5.25%, 5/15/26

      500         532,195   

Middleburg Heights, (Southwest General Health Center), 5.25%, 8/1/36

      500         551,005   

Middleburg Heights, (Southwest General Health Center), 5.25%, 8/1/41

      800         875,920   

Montgomery County, (Catholic Health Initiatives), 5.50%, 5/1/34

      500         568,685   

Ohio Higher Educational Facility Commission, (Cleveland Clinic Health System),
5.50%, 1/1/39

      1,000         1,122,030   

Ohio Higher Educational Facility Commission, (Summa Health System), 5.75%, 11/15/40

      555         622,932   
     

 

 

  
      $ 6,588,268   
     

 

 

  

Housing — 9.0%

      

Ohio Housing Finance Agency, (Residential Mortgage-Backed Securities), (FNMA), (GNMA), (AMT), 4.625%, 9/1/27

    $ 840       $ 877,800   

Ohio Housing Finance Agency, (Residential Mortgage-Backed Securities), (FNMA), (GNMA), (AMT), 4.75%, 3/1/37

      210         214,786   

Ohio Housing Finance Agency, (Residential Mortgage-Backed Securities), (FNMA), (GNMA), (AMT), 5.00%, 9/1/31

      170         175,270   

Ohio Housing Finance Agency, (Uptown Community Partners), (AMT), 5.25%, 4/20/48

      2,500         2,647,950   
     

 

 

  
      $ 3,915,806   
     

 

 

  

Industrial Development Revenue — 1.8%

      

Cleveland, (Continental Airlines), (AMT), 5.375%, 9/15/27

    $ 555       $ 554,961   

Ohio Water Development Authority, (Allied Waste North America, Inc.), (AMT),
5.15%, 7/15/15

      225         225,722   
     

 

 

  
      $ 780,683   
     

 

 

  

Insured-Education — 12.3%

      

Hamilton County, (University Heights Community Urban Development Corp.), (AGM), 5.00%, 6/1/30

    $ 750       $ 851,062   

Kent State University, (AGC), 5.00%, 5/1/26

      1,000         1,155,400   

Kent State University, (AGC), 5.00%, 5/1/29

      465         529,682   

Miami University, (AMBAC), 3.25%, 9/1/26

      635         648,989   

University of Akron, Series A, (AGM), 5.00%, 1/1/38

      1,500         1,616,475   

University of Akron, Series B, (AGM), 5.00%, 1/1/38

      500         538,575   
     

 

 

  
      $ 5,340,183   
     

 

 

  

Insured-Electric Utilities — 12.5%

      

American Municipal Power-Ohio, Inc., (Prairie State Energy Campus), (AGC),
5.75%, 2/15/39

    $ 1,000       $ 1,147,960   

Cleveland Public Power System, (NPFG), 0.00%, 11/15/27

      710         373,183   

Cleveland Public Power System, (NPFG), 0.00%, 11/15/38

      2,000         570,420   

Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/25

      815         507,525   

Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/26

      3,000         1,773,510   

Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/30

      210         226,340   

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

      250         270,958   

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26

      500         565,025   
     

 

 

  
      $ 5,434,921   
     

 

 

  

Insured-General Obligations — 17.5%

      

Brookfield Local School District, (AGM), 5.00%, 1/15/30

    $ 200       $ 219,756   

Buckeye Valley Local School District, (AGC), 5.00%, 12/1/36

      500         577,055   

Canal Winchester Local School District, (NPFG), 0.00%, 12/1/30

      2,455         1,199,120   

Cincinnati School District, (FGIC), (NPFG), 5.25%, 12/1/30

      1,000         1,333,690   

Madeira City School District, (AGM), 3.50%, 12/1/27

      1,500         1,526,430   

Milford Exempt Village School District, (AGC), 5.25%, 12/1/36

      1,750         1,932,367   

St. Marys City School District, (AGM), 5.00%, 12/1/35

      750         812,363   
     

 

 

  
      $ 7,600,781   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Hospital — 5.7%

      

Hamilton County, (Cincinnati Children’s Hospital), (FGIC), (NPFG), 5.00%, 5/15/32

    $ 280       $ 285,785   

Hamilton County, (Cincinnati Children’s Hospital), (FGIC), (NPFG), 5.125%, 5/15/28

      1,500         1,532,565   

Lorain County, (Catholic Healthcare Partners), (AGM), 15.046%, 2/1/29(1)(2)(3)

      485         660,395   
     

 

 

  
      $ 2,478,745   
     

 

 

  

Insured-Special Tax Revenue — 1.9%

      

Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54

    $ 4,880       $ 433,686   

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

      2,325         374,813   
     

 

 

  
      $ 808,499   
     

 

 

  

Insured-Transportation — 7.5%

      

Cleveland, Airport System Revenue, (AGM), 5.00%, 1/1/30

    $ 600       $ 669,336   

Ohio Turnpike Commission, (FGIC), (NPFG), 5.50%, 2/15/24

      1,000         1,281,580   

Ohio Turnpike Commission, (FGIC), (NPFG), 5.50%, 2/15/26

      1,000         1,306,340   
     

 

 

  
      $ 3,257,256   
     

 

 

  

Lease Revenue/Certificates of Participation — 1.4%

      

Franklin County Convention Facilities Authority, 5.00%, 12/1/27

    $ 500       $ 587,415   
     

 

 

  
      $ 587,415   
     

 

 

  

Other Revenue — 3.5%

      

Riversouth Authority, (Lazarus Building Redevelopment), 5.75%, 12/1/27

    $ 1,000       $ 1,022,550   

Summit County Port Authority, 5.00%, 12/1/31

      445         509,271   
     

 

 

  
      $ 1,531,821   
     

 

 

  

Special Tax Revenue — 2.4%

      

Green, Income Tax Revenue, (Community Learning Centers), 5.00%, 12/1/26

    $ 180       $ 215,705   

Green, Income Tax Revenue, (Community Learning Centers), 5.00%, 12/1/28

      290         343,229   

Guam, Limited Obligation Bonds, 5.625%, 12/1/29

      155         174,283   

Guam, Limited Obligation Bonds, 5.75%, 12/1/34

      170         191,111   

Virgin Islands Public Finance Authority, 6.75%, 10/1/37

      110         130,117   
     

 

 

  
      $ 1,054,445   
     

 

 

  

Water and Sewer — 5.3%

      

Cincinnati, Water System Revenue, 5.00%, 12/1/37

    $ 1,250       $ 1,451,125   

Hamilton County, Sewer System, 5.00%, 12/1/32

      750         854,355   
     

 

 

  
      $ 2,305,480   
     

 

 

  

Total Tax-Exempt Investments — 149.3%
(identified cost $57,789,217)

       $ 64,752,917   
     

 

 

  

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

       $ (22,725,484 ) 
     

 

 

  

Other Assets, Less Liabilities — 3.1%

       $ 1,343,225   
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 43,370,658   
     

 

 

  

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.

 

3

 

 

FGIC

   -   Financial Guaranty Insurance Company

FNMA

   -   Federal National Mortgage Association

GNMA

   -   Government National Mortgage Association

NPFG

   -   National Public Finance Guaranty Corp.

The Trust invests primarily in debt securities issued by Ohio 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, 2012, 38.5% 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 ranged from 1.7% to 17.9% of total investments.

 

(1) 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, 2012, the aggregate value of these securities is $660,395 or 1.5% of the Trust’s net assets applicable to common shares.

 

(2) Security is subject to a shortfall agreement which may require the Trust to pay amounts to a counterparty in the event of a significant decline in the market value of the security held by the trust that issued the residual interest bond. In case of a shortfall, the maximum potential amount of payments the Trust could ultimately be required to make under the agreement is $1,455,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security held by the trust that issued the residual interest bond.

 

(3) Security has been issued as a leveraged residual interest bond with a variable interest rate. The stated interest rate represents the rate in effect at August 31, 2012.

A summary of open financial instruments at August 31, 2012 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Depreciation		  
12/12    14 U.S. 30-Year Treasury Bond    Short    $     (2,096,366 )    $     (2,119,688 )    $     (23,322 ) 

At August 31, 2012, 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, 2012, 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 $23,322.

The cost and unrealized appreciation (depreciation) of investments of the Trust at August 31, 2012, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     57,807,078   
  

 

 

  

Gross unrealized appreciation

    $ 7,165,400   

Gross unrealized depreciation

      (219,561 ) 
  

 

 

  

Net unrealized appreciation

    $ 6,945,839   
  

 

 

  

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.

 

4

 

 

At August 31, 2012, 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

    $ —      $     64,752,917       $ —       $ 64,752,917   

Total Investments

    $ —      $ 64,752,917       $     —       $     64,752,917   
Liability Description                               

Futures Contracts

    $ (23,322 )    $ —       $ —       $ (23,322 ) 

Total

    $     (23,322 )    $ —       $ —       $ (23,322 ) 

The Trust held no investments or other financial instruments as of November 30, 2011 whose fair value was determined using Level 3 inputs. At August 31, 2012, 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.

 

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 Ohio Municipal Income Trust

 

By:   /s/ Cynthia J. Clemson
  Cynthia J. Clemson
  President
Date:   October 25, 2012

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/ Cynthia J. Clemson
  Cynthia J. Clemson
  President
Date:   October 25, 2012

 

By:   /s/ Barbara E. Campbell
  Barbara E. Campbell
  Treasurer
Date:   October 25, 2012