Eaton Vance Municipal Income Term Trust

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-22777

Investment Company Act File Number

Eaton Vance Municipal Income Term 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)

January 31

Date of Fiscal Year End

April 30, 2014

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Municipal Income Term Trust

April 30, 2014

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 163.2%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Bond Bank — 1.8%

      

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

    $ 3,380       $ 3,643,099   
     

 

 

  
      $ 3,643,099   
     

 

 

  

Education — 12.0%

      

Central Washington University, 3.25%, 5/1/29

    $ 2,910       $ 2,668,354   

Central Washington University, 3.25%, 5/1/30

      3,265         2,953,192   

Portland Community College District, OR, 3.25%, 6/15/32(1)(2)

      10,250         9,714,118   

Rutgers State University, NJ, 4.00%, 5/1/30(1)

      8,425         8,857,624   
     

 

 

  
      $ 24,193,288   
     

 

 

  

Electric Utilities — 12.1%

      

Apache County, AZ, Industrial Development Authority, (Tucson Electric Power Co.), 4.50%, 3/1/30

    $ 2,980       $ 3,031,435   

Lower Colorado River Authority, TX, (LCRA Transmission Services Corp.), 4.00%, 5/15/33

      7,500         7,512,675   

Pima County, AZ, Industrial Development Authority, (Tucson Electric Power Co.), 4.50%, 6/1/30

      1,150         1,174,196   

Puerto Rico Electric Power Authority, 5.00%, 7/1/29

      1,000         609,110   

Salt River Agricultural Improvement and Power District, AZ, 5.00%, 12/1/30(1)

      10,000         11,422,500   

WPPI Energy, WI, 5.00%, 7/1/32

      500         549,925   
     

 

 

  
      $ 24,299,841   
     

 

 

  

General Obligations — 37.3%

      

Hawaii, 5.00%, 11/1/28(1)(2)

    $ 8,000       $ 9,268,800   

Illinois, 5.00%, 5/1/33(3)

      3,200         3,381,888   

New York, 3.00%, 3/1/32(1)(2)

      10,000         9,334,200   

New York, NY, 5.00%, 3/1/30(4)

      5,000         5,657,150   

Pennsylvania, 4.00%, 4/1/29(1)(2)

      10,000         10,588,400   

San Bernardino Community College District, CA, 4.00%, 8/1/30(1)(2)

      10,000         10,127,000   

Santa Clara County, CA, (Election of 2008), 3.00%, 8/1/31

      5,000         4,565,900   

Tempe Union High School District No. 213, AZ, 4.00%, 7/1/29(1)(2)

      4,200         4,358,340   

Tempe Union High School District No. 213, AZ, 4.00%, 7/1/30(1)(2)

      4,350         4,482,979   

University City, MO, School District, 0.00%, 2/15/32

      3,000         1,414,200   

University City, MO, School District, 0.00%, 2/15/33

      3,000         1,337,340   

Washington, 4.00%, 7/1/29(1)

      10,000         10,521,300   
     

 

 

  
      $ 75,037,497   
     

 

 

  

Hospital — 17.3%

      

California Health Facilities Financing Authority, (St. Joseph Health System),
5.00%, 7/1/29(1)(2)

    $ 10,000       $ 11,221,600   

Delaware Health Facilities Authority, (Nanticoke Memorial Hospital), 5.00%, 7/1/28

      2,500         2,482,275   

Massachusetts Development Finance Agency, (Lowell General Hospital), 5.00%, 7/1/37

      4,650         4,777,085   

Massachusetts Health and Educational Facilities Authority, (Jordan Hospital), 5.375%, 10/1/28

      1,000         999,960   

Muskingum County, OH, (Genesis HealthCare System Obligated Group), 5.00%, 2/15/33

      2,610         2,417,747   

Onondaga Civic Development Corp., NY, (St. Joseph’s Hospital Health Center), 4.50%, 7/1/32

      715         658,951   

Royal Oak, MI, Hospital Finance Authority, (William Beaumont Hospital), 5.00%, 9/1/39(3)

      850         895,178   

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Tarrant County Cultural Education Facilities Finance Corp., TX, (Baylor Health Care System), 4.00%, 11/15/32(1)

    $ 10,000       $ 9,815,100   

Yavapai County, AZ, Industrial Development Authority, (Yavapai Regional Medical Center), 5.00%, 8/1/28

      1,500         1,616,160   
     

 

 

  
      $ 34,884,056   
     

 

 

  

Housing — 8.4%

      

Pennsylvania Housing Finance Agency, SFMR, (AMT), 3.90%, 10/1/28(1)

    $ 5,500       $ 5,476,130   

Pennsylvania Housing Finance Agency, SFMR, (AMT), 4.20%, 10/1/33(1)

      1,500         1,482,285   

Virginia Housing Development Authority, 3.625%, 1/1/31(1)(2)

      10,000         10,035,900   
     

 

 

  
      $ 16,994,315   
     

 

 

  

Industrial Development Revenue — 12.6%

      

Houston, TX, (Continental Airlines), (AMT), 6.75%, 7/1/29

    $ 2,500       $ 2,500,850   

Illinois Finance Authority, (Peoples Gas Light and Coke Co.), 4.00%, 2/1/33

      1,500         1,458,405   

Louisiana Public Facilities Authority, (Cleco Power LLC), 4.25%, 12/1/38

      5,000         4,898,900   

Massachusetts Development Finance Agency, (Covanta Energy), (AMT), 4.875%, 11/1/27

      2,500         2,481,700   

Matagorda County, TX, Navigation District No. 1, (AEP Texas Central Co.),
Series 2008-1, 4.00%, 6/1/30

      1,155         1,135,446   

Matagorda County, TX, Navigation District No. 1, (AEP Texas Central Co.),
Series 2008-2, 4.00%, 6/1/30

      3,845         3,779,904   

New Jersey Economic Development Authority, (Continental Airlines),
Series 2000A, (AMT), 5.625%, 11/15/30

      500         515,945   

New Jersey Economic Development Authority, (Continental Airlines),
Series 2000B, (AMT), 5.625%, 11/15/30

      855         882,266   

New York Liberty Development Corp., (Goldman Sachs Group, Inc.), 5.25%, 10/1/35

      4,895         5,604,873   

Phenix City, AL, Industrial Development Board, (MeadWestvaco Coated Board), 3.625%, 5/15/30

      360         317,851   

Phenix City, AL, Industrial Development Board, (MeadWestvaco Coated Board), (AMT), 4.125%, 5/15/35

      2,140         1,867,621   
     

 

 

  
      $ 25,443,761   
     

 

 

  

Insured – Electric Utilities — 2.3%

      

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

    $ 5,000       $ 4,673,750   
     

 

 

  
      $ 4,673,750   
     

 

 

  

Insured – General Obligations — 0.2%

      

Puerto Rico Public Buildings Authority, (NPFG), 6.00%, 7/1/28

    $ 500       $ 503,240   
     

 

 

  
      $ 503,240   
     

 

 

  

Insured – Industrial Development Revenue — 2.1%

      

Massachusetts Port Authority, (Delta Airlines, Inc.), (AMBAC), (AMT), 5.00%, 1/1/27

    $ 4,200       $ 4,147,752   
     

 

 

  
      $ 4,147,752   
     

 

 

  

Insured – Other Revenue — 0.7%

      

New Jersey Economic Development Authority, (The Goethals Bridge Replacement), (AGM), (AMT), 5.00%, 1/1/31

    $ 1,340       $ 1,436,507   
     

 

 

  
      $ 1,436,507   
     

 

 

  

Insured – Special Tax Revenue — 0.1%

      

Puerto Rico Infrastructure Financing Authority, (AMBAC), 0.00%, 7/1/35

    $ 1,115       $ 217,124   
     

 

 

  
      $ 217,124   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured – Transportation — 1.0%

      

Puerto Rico Highway and Transportation Authority, (AGM), 5.50%, 7/1/31

    $ 1,000       $ 964,410   

Puerto Rico Highway and Transportation Authority, (AMBAC), 0.00%, 7/1/20

      1,625         1,076,400   
     

 

 

  
      $ 2,040,810   
     

 

 

  

Insured – Water and Sewer — 2.0%

      

Detroit, MI, Water Supply System, (NPFG), 5.00%, 7/1/26

    $ 4,000       $ 3,938,840   
     

 

 

  
      $ 3,938,840   
     

 

 

  

Lease Revenue/Certificates of Participation — 6.1%

      

Michigan Strategic Fund, (Facility for Rare Isotope Beams), 4.00%, 3/1/31

    $ 1,000       $ 1,002,780   

Charleston Educational Excellence Financing Corp., SC, (Charleston County School District), 5.00%, 12/1/30(1)(2)

      10,000         11,329,900   
     

 

 

  
      $ 12,332,680   
     

 

 

  

Other Revenue — 7.4%

      

Oregon Department of Administrative Services, Lottery Revenue, 4.00%, 4/1/29(1)

    $ 10,000       $ 10,572,500   

Salt Verde Financial Corp., AZ, Senior Gas Revenue, 5.00%, 12/1/32

      2,460         2,702,015   

Texas Municipal Gas Acquisition and Supply Corp. III, Gas Supply Revenue, 5.00%, 12/15/29

      1,500         1,563,945   
     

 

 

  
      $ 14,838,460   
     

 

 

  

Senior Living/Life Care — 3.7%

      

Harris County Cultural Education Facilities Finance Corp., TX, (Brazos Presbyterian Homes, Inc.), 5.75%, 1/1/28

    $ 140       $ 149,024   

Lancaster Industrial Development Authority, PA, (Garden Spot Village), 5.375%, 5/1/28

      600         627,210   

Lorain County Port Authority, OH, (Kendal at Oberlin), 5.00%, 11/15/30

      1,250         1,327,925   

Massachusetts Development Finance Agency, (North Hill Communities), 3.50%, 11/15/16

      110         110,146   

Massachusetts Development Finance Agency, (North Hill Communities), 4.00%, 11/15/17

      636         636,324   

Massachusetts Development Finance Agency, (North Hill Communities), 4.50%, 11/15/18

      710         714,083   

New Jersey Economic Development Authority, (United Methodist Homes of New Jersey), 4.00%, 7/1/27

      765         740,949   

New Jersey Economic Development Authority, (United Methodist Homes of New Jersey), 4.00%, 7/1/28

      910         867,257   

Palm Beach County, FL, Health Facilities Authority, (Sinai Residences of Boca Raton), 7.25%, 6/1/34(3)

      500         539,285   

Savannah, GA, Economic Development Authority, (Marshes of Skidaway Island), 6.00%, 1/1/24

      500         529,275   

Warren County, OH, (Otterbein Homes Obligated Group), 5.00%, 7/1/28

      1,200         1,257,468   
     

 

 

  
      $ 7,498,946   
     

 

 

  

Special Tax Revenue — 14.2%

      

Connecticut, Special Tax Obligation, (Transportation Infrastructure), 5.00%, 1/1/28(1)(2)

    $ 10,000       $ 11,528,800   

Florida Department of Environmental Protection, (Everglades Restoration), 3.25%, 7/1/28

      2,930         2,798,590   

Florida Department of Environmental Protection, (Everglades Restoration), 3.25%, 7/1/29

      3,030         2,839,564   

Florida Department of Environmental Protection, (Everglades Restoration), 3.50%, 7/1/32

      1,130         1,044,979   

New York Dormitory Authority, Sales Tax Revenue, 4.00%, 3/15/30(1)

      10,000         10,379,100   
     

 

 

  
      $ 28,591,033   
     

 

 

  

Student Loan — 1.0%

      

New Jersey Higher Education Student Assistance Authority, (AMT), 4.00%, 12/1/28

    $ 2,000       $ 1,959,680   
     

 

 

  
      $ 1,959,680   
     

 

 

  

 

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Transportation — 16.6%

  

Dallas and Fort Worth, TX, (Dallas/Fort Worth International Airport), (AMT), 5.00%, 11/1/31

    $ 5,000       $ 5,296,400   

Foothill/Eastern Transportation Corridor Agency, CA, 0.00%, 1/15/27

      2,000         1,229,080   

Grand Parkway Transportation Corp., TX, 4.95%, (0.00% until 10/1/23), 10/1/29

      800         554,080   

Grand Parkway Transportation Corp., TX, 5.05%, (0.00% until 10/1/23), 10/1/30

      1,500         1,032,120   

Grand Parkway Transportation Corp., TX, 5.20%, (0.00% until 10/1/23), 10/1/31

      2,000         1,370,100   

Kentucky Public Transportation Infrastructure Authority, (Downtown Crossing Project), 0.00%, 7/1/28

      1,240         550,808   

New Jersey Transportation Trust Fund Authority, 0.00%, 12/15/29

      10,000         4,906,000   

Port Authority of New York and New Jersey, (AMT), 4.00%, 7/15/36(1)(2)

      10,000         9,733,600   

Route 460 Funding Corp., VA, 0.00%, 7/1/29

      2,880         1,279,613   

Route 460 Funding Corp., VA, 0.00%, 7/1/30

      2,670         1,113,150   

Route 460 Funding Corp., VA, 0.00%, 7/1/31

      3,000         1,177,860   

Triborough Bridge and Tunnel Authority, NY, 0.00%, 11/15/29

      3,665         1,959,968   

Triborough Bridge and Tunnel Authority, NY, 0.00%, 11/15/31

      6,600         3,131,304   
     

 

 

  
   $ 33,334,083   
     

 

 

  

Water and Sewer — 4.3%

      

Detroit, MI, Water Supply System, 5.25%, 7/1/27

    $ 1,000       $ 984,710   

Northeast Ohio Regional Sewer District, 4.00%, 11/15/33(1)(2)

      7,500         7,645,425   
     

 

 

  
   $ 8,630,135   
     

 

 

  

Total Tax-Exempt Investments — 163.2%
(identified cost $328,070,927)

       $ 328,638,897   
     

 

 

  

Other Assets, Less Liabilities — (63.2)%

  

    $ (127,313,731 ) 
     

 

 

  

Net Assets — 100.0%

  

    $ 201,325,166   
     

 

 

  

The percentage shown for each investment category in the Portfolio of Investments is based on net assets.

 

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.

NPFG

   -   National Public Finance Guaranty Corp.

SFMR

   -   Single Family Mortgage Revenue

At April 30, 2014, the concentration of the Trust’s investments in the various states and territories, determined as a percentage of total investments, is as follows:

 

                        

New York

      14.1 % 

Texas

      10.6 % 

Others, representing less than 10% individually

      75.3 % 

The Trust invests primarily in debt securities issued by 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 April 30, 2014, 5.2% 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 0.7% to 2.8% of total investments.

 

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

 

4

 

 

(2) Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $35,354,063.

 

(3) When-issued security.

 

(4) Security (or a portion thereof) has been segregated to cover payable for when-issued securities.

The Trust did not have any open financial instruments at April 30, 2014.

The cost and unrealized appreciation (depreciation) of investments of the Trust at April 30, 2014, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     197,870,664   
  

 

 

  

Gross unrealized appreciation

    $ 6,594,434   

Gross unrealized depreciation

      (6,081,201 ) 
  

 

 

  

Net unrealized appreciation

    $ 513,233   
  

 

 

  

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 April 30, 2014, the hierarchy of inputs used in valuing the Trust’s investments, which are carried at value, were as follows:

 

Asset Description    Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

    $ —       $ 328,638,897       $ —       $ 328,638,897   

Total Investments

    $     —       $     328,638,897       $     —       $     328,638,897   

The Trust held no investments or other financial instruments as of January 31, 2014 whose fair value was determined using Level 3 inputs. At April 30, 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.

 

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 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 Municipal Income Term Trust

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   June 23, 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:   June 23, 2014

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   June 23, 2014