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, 2017

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

California Municipal Income Trust

August 31, 2017

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Municipal Securities — 142.5%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 8.8%

      

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

    $ 195      $ 226,457  

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

      330        378,520  

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

      745        799,907  

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

      1,600        1,895,776  

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

      235        278,736  

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

      630        710,961  

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

      415        473,602  

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

      285        324,150  

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

      810        941,123  

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

      850        985,754  

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

      895        1,035,613  

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

      895        962,725  
     

 

 

  
      $ 9,013,324  
     

 

 

  

Electric Utilities — 8.1%

      

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

    $ 270      $ 291,376  

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

      2,170        2,251,787  

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

      1,500        1,653,885  

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

      995        1,149,822  

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

      1,335        1,542,165  

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

      680        747,762  

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

      635        682,600  
     

 

 

  
      $ 8,319,397  
     

 

 

  

Escrowed/Prerefunded — 11.7%

      

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

    $ 715      $ 737,923  

California Educational Facilities Authority, (Claremont McKenna College), Prerefunded to 1/1/19, 5.00%, 1/1/39

      3,135        3,312,692  

California Educational Facilities Authority, (University of Southern California), Prerefunded to 10/1/18, 5.25%, 10/1/39

      2,490        2,611,636  

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

      1,475        1,566,745  

Sacramento Municipal Utility District, Prerefunded to 8/15/21, 5.00%, 8/15/27

      340        393,513  

Sacramento Municipal Utility District, Prerefunded to 8/15/21, 5.00%, 8/15/28

      460        532,399  

San Mateo Union High School District, (Election of 2006), Prerefunded to 9/1/23, 5.00%, 9/1/27

      665        811,440  

San Mateo Union High School District, (Election of 2006), Prerefunded to 9/1/23, 5.00%, 9/1/28

      1,130        1,378,837  

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

      355        381,863  

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

      275        292,759  
     

 

 

  
      $ 12,019,807  
     

 

 

  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

General Obligations — 37.9%

      

Alta Loma School District, (Election of 2016), 5.00%, 8/1/42

    $ 1,500      $ 1,776,855  

California, 5.00%, 10/1/31

      1,885        2,271,915  

California, 5.50%, 11/1/35

      1,600        1,817,216  

California, 6.00%, 4/1/38

      750        808,725  

Castro Valley Unified School District, (Election of 2016), 5.00%, 8/1/41

      1,000        1,189,010  

Escondido, 5.00%, 9/1/36

      1,000        1,173,920  

Glendale Community College District, (Election of 2016), 5.00%, 8/1/37

      2,000        2,405,540  

Montebello Unified School District, (Election of 2016), 5.00%, 8/1/41

      2,000        2,336,420  

Napa Valley Unified School District, 5.00%, 8/1/41

      2,885        3,430,294  

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

      3,655        4,038,738  

Redondo Beach Unified School District, (Election of 2012), 4.00%, 8/1/40

      1,000        1,060,020  

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

      2,890        3,154,002  

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

      1,545        1,683,463  

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

      860        987,254  

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

      650        778,830  

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

      1,100        1,317,789  

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

      3,180        3,416,719  

Santa Clarita Community College District, 4.00%, 8/1/46

      2,500        2,650,050  

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

      2,150        2,526,551  
     

 

 

  
   $ 38,823,311  
     

 

 

  

Hospital — 7.9%

      

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

    $ 1,000      $ 1,134,430  

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

      190        213,849  

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

      635        725,678  

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

      910        1,039,465  

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

      1,650        1,902,549  

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

      1,000        1,139,630  

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

      1,145        1,315,525  

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

      535        609,654  
     

 

 

  
   $ 8,080,780  
     

 

 

  

Insured-Education — 1.4%

      

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

    $ 1,250      $ 1,475,713  
     

 

 

  
   $ 1,475,713  
     

 

 

  

Insured-Escrowed/Prerefunded — 10.6%

      

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

    $ 5,130      $ 4,378,455  

Glendale, Electric System Revenue, (AGC), Prerefunded to 2/1/18, 5.00%, 2/1/31

      2,790        2,840,332  

San Diego County Water Authority, Certificates of Participation, (AGM), Prerefunded to 5/1/18, 5.00%, 5/1/38(1)

      3,500        3,600,380  
     

 

 

  
   $ 10,819,167  
     

 

 

  

Insured-General Obligations — 5.0%

      

Cotati-Rohnert Park Unified School District, (BAM), 5.00%, 8/1/39

    $ 1,000      $ 1,153,690  

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

      4,720        3,981,273  
     

 

 

  
   $ 5,134,963  
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Special Tax Revenue — 5.5%

      

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

    $ 4,850      $ 1,008,654  

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

      370        435,731  

Successor Agency to Rosemead Community Development Commission, (BAM), 5.00%, 10/1/27

      1,440        1,756,382  

Successor Agency to San Francisco City and County Redevelopment Agency, (NPFG), 5.00%, 8/1/41

      2,100        2,424,639  
     

 

 

  
   $ 5,625,406  
     

 

 

  

Insured-Transportation — 6.7%

      

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

    $ 5,000      $ 3,227,750  

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

      4,500        2,822,355  

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

      740        803,507  
     

 

 

  
   $ 6,853,612  
     

 

 

  

Lease Revenue/Certificates of Participation — 1.0%

      

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

    $ 915      $ 1,045,506  
     

 

 

  
   $ 1,045,506  
     

 

 

  

Other Revenue — 0.4%

      

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

    $ 385      $ 388,392  
     

 

 

  
   $ 388,392  
     

 

 

  

Senior Living/Life Care — 1.6%

      

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

    $ 290      $ 331,551  

California Statewide Communities Development Authority, (Southern California Presbyterian Homes), 7.25%, 11/15/41(2)

      600        661,026  

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

      535        631,070  
     

 

 

  
   $ 1,623,647  
     

 

 

  

Special Tax Revenue — 18.1%

      

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

    $ 770      $ 870,831  

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

      285        288,468  

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

      460        465,313  

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

      1,590        1,596,042  

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

      240        274,469  

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

      480        553,258  

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

      240        276,629  

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

      335        385,846  

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

      240        276,427  

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

      2,400        2,673,552  

Santa Clara Valley Transportation Authority, Sales Tax Revenue, 5.00%, 4/1/34

      1,000        1,176,990  

Santa Clara Valley Transportation Authority, Sales Tax Revenue, 5.00%, 4/1/36

      1,250        1,465,575  

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

      485        544,631  

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

      725        810,572  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 1,600      $ 1,906,704  

Successor Agency to San Diego Redevelopment Agency, 5.00%, 9/1/31

      2,000        2,391,840  

Successor Agency to Union City Community Redevelopment Agency, 5.00%, 10/1/32

      1,360        1,622,793  

Successor Agency to Union City Community Redevelopment Agency, 5.00%, 10/1/36

      800        944,256  
     

 

 

  
   $ 18,524,196  
     

 

 

  

Transportation — 13.6%

      

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

    $ 1,000      $ 1,070,530  

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

      2,120        2,333,378  

Los Angeles Department of Airports, (Los Angeles International Airport), (AMT), 5.00%, 5/15/41

      1,500        1,710,495  

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

      1,500        1,548,540  

Sacramento County, Airport System Revenue, 5.00%, 7/1/41

      1,500        1,763,025  

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

      2,760        3,010,525  

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

      2,265        2,518,205  
     

 

 

  
   $ 13,954,698  
     

 

 

  

Water and Sewer — 4.2%

      

East Bay Municipal Utility District, 5.00%, 6/1/34

    $ 2,000      $ 2,455,440  

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

      1,700        1,905,326  
     

 

 

  
   $ 4,360,766  
     

 

 

  

Total Tax-Exempt Municipal Securities — 142.5%
(identified cost $134,316,286)

 

    $ 146,062,685  
     

 

 

  

Taxable Municipal Securities — 7.2%

 

   
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 4.2%

      

University of California, 4.104%, 5/15/47

    $ 4,000      $ 4,296,080  
     

 

 

  
   $ 4,296,080  
     

 

 

  

Hospital — 1.8%

      

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

    $ 1,750      $ 1,858,448  
     

 

 

  
   $ 1,858,448  
     

 

 

  

Other Revenue — 1.2%

      

California Infrastructure and Economic Development Bank, (The Scripps Research Institute), 3.42%, 7/1/36

    $ 1,200      $ 1,168,584  
     

 

 

  
   $ 1,168,584  
     

 

 

  

Total Taxable Municipal Securities — 7.2%
(identified cost $7,109,765)

       $ 7,323,112  
     

 

 

  

 

4

 

 

                                                 
              Value  

Total Investments — 149.7%
(identified cost $141,426,051)

       $ 153,385,797  
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (2.9)%

 

    $ (3,000,320 ) 
     

 

 

  

Institutional MuniFund Term Preferred Shares, at Liquidation Value
(net of unamortized deferred offering costs) — (45.6)%

       $  (46,770,850 ) 
     

 

 

  

Other Assets, Less Liabilities — (1.2)%

       $ (1,130,460 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 102,484,167  
     

 

 

  

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

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, 2017, 19.5% 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 or financial guaranty assurance agency ranged from 2.1% to 7.8% of total investments.

 

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

 

(2) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be sold in certain transactions in reliance on an exemption from registration (normally to qualified institutional buyers). At August 31, 2017, the aggregate value of these securities is $661,026 or 0.6% of the Trust’s net assets applicable to common shares.

Abbreviations:

 

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.

NPFG

   -   National Public Finance Guaranty Corp.

The Trust did not have any open derivative instruments at August 31, 2017.

The cost and unrealized appreciation (depreciation) of investments of the Trust at August 31, 2017, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     133,762,757  
  

 

 

  

Gross unrealized appreciation

    $ 12,616,397  

Gross unrealized depreciation

      (328,357 ) 
  

 

 

  

Net unrealized appreciation

    $ 12,288,040  
  

 

 

  

 

5

 

 

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, 2017, 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 Municipal Securities

    $ —      $ 146,062,685      $ —      $ 146,062,685  

Taxable Municipal Securities

      —        7,323,112        —        7,323,112  

Total Investments

    $     —      $     153,385,797      $     —      $     153,385,797  

The Trust held no investments or other financial instruments as of November 30, 2016 whose fair value was determined using Level 3 inputs. At August 31, 2017, 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.

Item 3. Exhibits

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act is attached hereto.

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 24, 2017

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 24, 2017

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   October 24, 2017