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

February 28, 2013

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

California Municipal Income Trust

February 28, 2013

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 158.4%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 18.1%

      

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

    $ 3,135       $ 3,512,266   

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

      195         228,154   

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

      330         379,804   

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

      745         831,368   

California Educational Facilities Authority, (Lutheran University), 5.00%, 10/1/29

      2,580         2,659,748   

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

      1,600         2,038,096   

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

      235         292,002   

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

      2,490         2,922,538   

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

      630         723,252   

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

      415         470,880   

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

      285         316,364   

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

      810         958,554   

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

      850         1,000,926   

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

      895         1,046,863   

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

      1,250         1,443,925   
     

 

 

  
      $ 18,824,740   
     

 

 

  

Electric Utilities — 14.2%

      

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

    $ 270       $ 317,601   

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

      2,275         2,488,304   

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

      1,500         1,726,815   

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

      2,170         2,536,947   

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

      1,500         1,746,885   

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

      1,335         1,586,260   

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

      1,795         2,121,134   

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

      680         783,210   

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

      1,300         1,476,579   
     

 

 

  
      $ 14,783,735   
     

 

 

  

General Obligations — 19.4%

      

California, 5.50%, 11/1/35

    $ 1,600       $ 1,946,352   

California, 6.00%, 4/1/38

      750         906,638   

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

      875         895,265   

Cupertino Union School District, (Election of 2012), 5.00%, 8/1/35

      1,000         1,173,430   

Cupertino Union School District, (Election of 2012), 5.00%, 8/1/36

      1,630         1,902,438   

Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/32

      195         216,078   

Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/33

      215         235,846   

Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/34

      235         256,860   

Larkspur-Corte Madera School District, (Election of 2011), 4.25%, 8/1/35

      230         255,509   

Larkspur-Corte Madera School District, (Election of 2011), 4.25%, 8/1/36

      280         309,504   

Larkspur-Corte Madera School District, (Election of 2011), 4.50%, 8/1/39

      1,000         1,119,210   

Menlo Park City School District, 5.00%, 7/1/30

      1,035         1,256,552   

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

      3,655         4,176,130   

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

      740         875,035   

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

      860         1,013,028   

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

      3,180         3,625,804   
     

 

 

  
      $ 20,163,679   
     

 

 

  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Hospital — 17.5%

      

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

    $ 1,000       $ 1,161,050   

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

      190         219,136   

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.625%, 7/1/32

      1,000         1,105,040   

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

      910         1,048,666   

California Health Facilities Financing Authority, (City of Hope), 5.00%, 11/15/39

      910         1,031,558   

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

      2,000         2,365,060   

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

      1,000         1,150,750   

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

      1,475         1,790,930   

California Health Facilities Financing Authority, (Stanford Hospital and Clinics), 5.00%, 8/15/51

      1,530         1,708,949   

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

      600         656,340   

California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/36

      445         478,762   

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

      1,900         1,904,788   

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

      2,780         2,904,878   

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

      700         701,225   
     

 

 

  
      $ 18,227,132   
     

 

 

  

Housing — 1.0%

      

Commerce, (Hermitage III Senior Apartments), 6.50%, 12/1/29

    $ 665       $ 674,421   

Commerce, (Hermitage III Senior Apartments), 6.85%, 12/1/29

      392         397,218   
     

 

 

  
      $ 1,071,639   
     

 

 

  

Industrial Development Revenue — 1.3%

      

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

    $ 1,235       $ 1,322,574   
     

 

 

  
      $ 1,322,574   
     

 

 

  

Insured-Education — 4.3%

      

California Educational Facilities Authority, (Pepperdine University), (AMBAC), 5.00%, 12/1/35

    $ 2,660       $ 2,916,025   

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

      1,250         1,592,262   
     

 

 

  
      $ 4,508,287   
     

 

 

  

Insured-Electric Utilities — 3.0%

      

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

    $ 2,790       $ 3,087,414   
     

 

 

  
      $ 3,087,414   
     

 

 

  

Insured-Escrowed/Prerefunded — 3.6%

      

Foothill/Eastern Transportation Corridor Agency, Toll Road Bonds, (AGM), (RADIAN), Escrowed to Maturity, 0.00%, 1/1/26

    $ 5,130       $ 3,693,395   
     

 

 

  
      $ 3,693,395   
     

 

 

  

Insured-General Obligations — 8.5%

      

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

    $ 6,485       $ 2,121,503   

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

      4,825         1,490,636   

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

      2,005         2,282,472   

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

      4,720         2,966,850   
     

 

 

  
      $ 8,861,461   
     

 

 

  

 

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Hospital — 9.3%

      

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

    $ 2,900       $ 3,212,910   

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

      750         821,332   

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

      5,000         5,596,500   
     

 

 

  
      $ 9,630,742   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 10.3%

      

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

    $ 4,410       $ 4,034,797   

Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27

      2,000         2,775,580   

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

      3,500         3,942,785   
     

 

 

  
      $ 10,753,162   
     

 

 

  

Insured-Special Tax Revenue — 0.8%

      

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

    $ 4,850       $ 791,666   
     

 

 

  
      $ 791,666   
     

 

 

  

Insured-Transportation — 11.1%

      

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

    $ 5,000       $ 2,259,500   

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

      4,500         1,895,490   

Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(1)(2)

      740         785,880   

San Joaquin Hills Transportation Corridor Agency, (NPFG), 0.00%, 1/15/32

      10,000         3,697,200   

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

      1,320         1,409,483   

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

      1,350         1,540,890   
     

 

 

  
      $ 11,588,443   
     

 

 

  

Insured-Water and Sewer — 3.9%

      

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

    $ 2,000       $ 2,280,300   

Los Angeles Department of Water and Power, (NPFG), 3.00%, 7/1/30

      1,830         1,816,476   
     

 

 

  
      $ 4,096,776   
     

 

 

  

Other Revenue — 1.6%

      

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

    $ 385       $ 409,655   

California Infrastructure and Economic Development Bank, (Performing Arts Center of Los Angeles), 5.00%, 12/1/37

      315         332,489   

Golden State Tobacco Securitization Corp., 5.30%, 6/1/37

      980         893,986   
     

 

 

  
      $ 1,636,130   
     

 

 

  

Senior Living/Life Care — 1.8%

      

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

    $ 290       $ 342,847   

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

      175         178,297   

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

      700         706,097   

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

      600         690,330   
     

 

 

  
      $ 1,917,571   
     

 

 

  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Special Tax Revenue — 12.2%

      

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

    $ 285       $ 285,815   

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

      460         439,567   

Corona Public Financing Authority, 5.80%, 9/1/20

      935         943,854   

Eastern Municipal Water District, Community Facilities District No. 2004-27, (Cottonwood Ranch), Special Tax Revenue, 5.00%, 9/1/27

      190         194,505   

Eastern Municipal Water District, Community Facilities District No. 2004-27, (Cottonwood Ranch), Special Tax Revenue, 5.00%, 9/1/36

      480         486,466   

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

      1,590         1,592,194   

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

      240         276,878   

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

      480         548,712   

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

      240         271,802   

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

      335         377,424   

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

      240         269,143   

Moreno Valley Unified School District, (Community School District No. 2003-2), 5.75%, 9/1/24

      420         423,616   

Moreno Valley Unified School District, (Community School District No. 2003-2), 5.90%, 9/1/29

      750         756,008   

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

      2,400         2,832,720   

Santaluz Community Facilities District No. 2, 6.10%, 9/1/21

      250         253,323   

Santaluz Community Facilities District No. 2, 6.20%, 9/1/30

      490         494,998   

Temecula Unified School District, 5.00%, 9/1/27

      250         256,708   

Temecula Unified School District, 5.00%, 9/1/37

      400         405,128   

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

      500         525,510   

Whittier Public Financing Authority, (Greenleaf Avenue Redevelopment), 5.50%, 11/1/23

      1,000         1,001,350   
     

 

 

  
      $ 12,635,721   
     

 

 

  

Transportation — 11.4%

      

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

    $ 1,000       $ 1,207,810   

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

      2,000         2,280,400   

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

      2,120         2,415,973   

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

      1,500         1,704,420   

Port of Redwood City, (AMT), 5.125%, 6/1/30

      1,170         1,171,673   

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

      2,760         3,086,453   
     

 

 

  
      $ 11,866,729   
     

 

 

  

Water and Sewer — 5.1%

      

Beverly Hills Public Financing Authority, Water Revenue, 5.00%, 6/1/30

    $ 1,000       $ 1,217,910   

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

      1,840         2,170,942   

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

      1,700         1,961,681   
     

 

 

  
      $ 5,350,533   
     

 

 

  

Total Tax-Exempt Investments — 158.4%
(identified cost $148,491,506)

       $ 164,811,529   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (48.0)%

       $ (49,977,004 ) 
     

 

 

  

Other Assets, Less Liabilities — (10.4)%

       $ (10,777,789 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 104,056,736   
     

 

 

  

 

4

 

 

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.

BHAC

   -   Berkshire Hathaway Assurance Corp.

CIFG

   -   CIFG Assurance North America, Inc.

FGIC

   -   Financial Guaranty Insurance Company

NPFG

   -   National Public Finance Guaranty Corp.

RADIAN

   -   Radian Group, Inc.

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 February 28, 2013, 34.6% 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 0.5% to 14.2% 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 $2,482,657.

A summary of open financial instruments at February 28, 2013 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Depreciation		  
6/13    68 U.S. 10-Year Treasury Note    Short    $     (8,890,345 )    $     (8,945,188 )    $ (54,843 ) 
6/13    48 U.S. 30-Year Treasury Bond    Short      (6,840,296 )      (6,901,500 )      (61,204 ) 
            

 

 

  
             $     (116,047 ) 
            

 

 

  

At February 28, 2013, 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 February 28, 2013, 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 $116,047.

The cost and unrealized appreciation (depreciation) of investments of the Trust at February 28, 2013, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     133,257,313   
  

 

 

  

Gross unrealized appreciation

    $ 17,097,005   

Gross unrealized depreciation

      (222,789 ) 
  

 

 

  

Net unrealized appreciation

    $ 16,874,216   
  

 

 

  

 

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 February 28, 2013, 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

    $ —      $ 164,811,529       $ —       $     164,811,529   

Total Investments

    $ —      $     164,811,529       $ —       $ 164,811,529   
Liability Description                               

Futures Contracts

    $ (116,047 )    $ —       $ —       $ (116,047 ) 

Total

    $     (116,047 )    $ —       $ —       $ (116,047 ) 

The Trust held no investments or other financial instruments as of November 30, 2012 whose fair value was determined using Level 3 inputs. At February 28, 2013, 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/ Cynthia J. Clemson

  Cynthia J. Clemson
  President
Date:   April 24, 2013

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:   April 24, 2013
By:  

/s/ James F. Kirchner

  James F. Kirchner
  Treasurer
Date:   April 24, 2013