UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
811-21224
Investment Company Act File Number
Eaton Vance Michigan Municipal Bond Fund
(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
(Registrants Telephone Number, Including Area Code)
September 30
Date of Fiscal Year End
June 30, 2018
Date of Reporting Period
Item 1. Schedule of Investments
Eaton Vance
Michigan Municipal Bond Fund
June 30, 2018
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments 158.1%
Security | Principal Amount (000s omitted) |
Value | ||||||
Education 19.6% |
||||||||
University of Michigan, 5.00%, 4/1/48(1) |
$ | 3,500 | $ | 4,097,170 | ||||
Wayne State University, 5.00%, 11/15/40 |
275 | 307,269 | ||||||
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|
|||||||
$ | 4,404,439 | |||||||
|
|
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Electric Utilities 3.3% |
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Michigan Public Power Agency, 5.00%, 1/1/43 |
$ | 700 | $ | 734,958 | ||||
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|
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$ | 734,958 | |||||||
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|
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Escrowed/Prerefunded 6.2% |
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Comstock Park Public Schools, Prerefunded to 5/1/21, 5.25%, 5/1/33 |
$ | 60 | $ | 65,507 | ||||
Kalamazoo Hospital Finance Authority, (Bronson Healthcare Group), Prerefunded to 5/15/21, 5.25%, 5/15/33 |
430 | 469,367 | ||||||
Lansing Community College, Prerefunded to 5/1/22, 5.00%, 5/1/30 |
770 | 855,893 | ||||||
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|
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$ | 1,390,767 | |||||||
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|
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General Obligations 44.2% |
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Buchanan Community Schools, 4.00%, 5/1/31 |
$ | 500 | $ | 521,155 | ||||
Comstock Park Public Schools, 5.125%, 5/1/31 |
205 | 221,757 | ||||||
Comstock Park Public Schools, 5.25%, 5/1/33 |
105 | 113,791 | ||||||
Jackson Public Schools, 5.00%, 5/1/48 |
2,150 | 2,410,429 | ||||||
Lansing Community College, 5.00%, 5/1/30 |
230 | 253,867 | ||||||
Michigan State Building Authority, 5.00%, 10/15/51(1) |
2,200 | 2,460,568 | ||||||
Plymouth-Canton Community Schools, 4.00%, 5/1/33 |
750 | 775,935 | ||||||
Trenton Public Schools, 5.00%, 5/1/42 |
2,150 | 2,460,374 | ||||||
Walled Lake Consolidated School District, 5.00%, 5/1/34 |
635 | 709,676 | ||||||
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|
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$ | 9,927,552 | |||||||
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|
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Hospital 21.5% |
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Grand Traverse Hospital Finance Authority, (Munson Healthcare Obligated Group), 5.375%, 7/1/35 |
$ | 750 | $ | 822,757 | ||||
Kent Hospital Finance Authority, (Spectrum Health System), 5.00%, 1/15/31 |
750 | 805,133 | ||||||
Michigan Finance Authority, (McLaren Health Care), 5.00%, 6/1/35 |
750 | 810,997 | ||||||
Michigan Finance Authority, (Oakwood Obligated Group), 5.00%, 11/1/32 |
500 | 548,585 | ||||||
Michigan Hospital Finance Authority, (Trinity Health Corp.), 5.00%, 12/1/48 |
700 | 750,750 | ||||||
Royal Oak Hospital Finance Authority, (William Beaumont Hospital), 5.00%, 9/1/39 |
1,000 | 1,096,280 | ||||||
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|
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$ | 4,834,502 | |||||||
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|
1
Security | Principal Amount (000s omitted) |
Value | ||||||
Insured Bond Bank 3.2% |
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Puerto Rico Municipal Finance Agency, (AGM), 5.00%, 8/1/27 |
$ | 700 | $ | 718,823 | ||||
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|
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$ | 718,823 | |||||||
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|
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Insured Electric Utilities 2.8% |
| |||||||
Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26 |
$ | 610 | $ | 634,504 | ||||
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|
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$ | 634,504 | |||||||
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|
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Insured Escrowed/Prerefunded 15.8% |
| |||||||
Michigan Hospital Finance Authority, (St. John Health System), (AMBAC), Escrowed to Maturity, 5.00%, 5/15/28 |
$ | 1,135 | $ | 1,210,750 | ||||
Michigan House of Representatives, (AMBAC), Escrowed to Maturity, 0.00%, 8/15/23 |
2,615 | 2,322,721 | ||||||
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|
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$ | 3,533,471 | |||||||
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|
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Insured General Obligations 14.5% |
| |||||||
Bay City Brownfield Redevelopment Authority, (BAM), 5.375%, 10/1/38 |
$ | 500 | $ | 556,180 | ||||
Livonia Public Schools, (AGM), 5.00%, 5/1/43 |
750 | 830,070 | ||||||
Okemos Public Schools, (NPFG), 0.00%, 5/1/19 |
1,330 | 1,308,374 | ||||||
Westland Tax Increment Finance Authority, (BAM), 5.25%, 4/1/34 |
500 | 550,080 | ||||||
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|
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$ | 3,244,704 | |||||||
|
|
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Insured Special Tax Revenue 0.6% |
| |||||||
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 |
$ | 615 | $ | 140,620 | ||||
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|
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$ | 140,620 | |||||||
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|
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Insured Water and Sewer 9.1% |
| |||||||
Michigan Finance Authority, (Detroit Water & Sewerage Department), (AGM), 5.00%, 7/1/31 |
$ | 1,500 | $ | 1,678,305 | ||||
Puerto Rico Aqueduct and Sewer Authority, (AGC), 5.00%, 7/1/28 |
355 | 363,406 | ||||||
|
|
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$ | 2,041,711 | |||||||
|
|
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Water and Sewer 17.3% |
| |||||||
Grand Rapids, Sanitary Sewer System Revenue, 5.00%, 1/1/28 |
$ | 605 | $ | 724,215 | ||||
Grand Rapids, Sanitary Sewer System Revenue, 5.00%, 1/1/43(1) |
2,500 | 2,881,425 | ||||||
Port Huron, Water Supply System, 5.25%, 10/1/31 |
250 | 272,103 | ||||||
|
|
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$ | 3,877,743 | |||||||
|
|
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Total Tax-Exempt Investments 158.1% |
$ | 35,483,794 | ||||||
|
|
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Institutional MuniFund Term Preferred Shares, at Liquidation Value |
|
$ | (6,744,118 | ) | ||||
|
|
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Other Assets, Less Liabilities (28.1)% |
|
$ | (6,298,685 | ) | ||||
|
|
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Net Assets Applicable to Common Shares 100.0% |
|
$ | 22,440,991 | |||||
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|
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
The Fund invests primarily in debt securities issued by Michigan 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 June 30, 2018, 29.1% 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 1.0% to 10.0% of total investments.
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(1) | Security represents the municipal bond held by a trust that issues residual interest bonds. |
Abbreviations:
AGC |
- | Assured Guaranty Corp. | ||
AGM |
- | Assured Guaranty Municipal Corp. | ||
AMBAC |
- | AMBAC Financial Group, Inc. | ||
BAM |
- | Build America Mutual Assurance Co. | ||
NPFG |
- | National Public Finance Guaranty Corp. |
The Fund did not have any open derivative instruments at June 30, 2018.
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 funds 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 June 30, 2018, the hierarchy of inputs used in valuing the Funds investments, which are carried at value, were as follows:
Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Tax-Exempt Investments |
$ | | $ | 35,483,794 | $ | | $ | 35,483,794 | ||||||||
Total Investments |
$ | | $ | 35,483,794 | $ | | $ | 35,483,794 |
At June 30, 2018, there were no investments transferred between Level 1 and Level 2 during the fiscal year to date then ended.
For information on the Funds policy regarding the valuation of investments and other significant accounting policies, please refer to the Funds most recent financial statements included in its semiannual or annual report to shareholders.
Proposed Plan of Reorganization
In April 2018, the Trustees of the Fund approved an Agreement and Plan of Reorganization whereby Eaton Vance Municipal Bond Fund (Municipal Bond Fund) would acquire substantially all the assets and assume substantially all the liabilities of the Fund in exchange for common shares of Municipal Bond Fund. The proposed reorganization is subject to approval by the shareholders of the Fund.
3
Item 2. Controls and Procedures
(a) It is the conclusion of the registrants principal executive officer and principal financial officer that the effectiveness of the registrants 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 Commissions 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 registrants principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrants 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 registrants 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 Michigan Municipal Bond Fund
By: | /s/ Payson F. Swaffield | |
Payson F. Swaffield | ||
President | ||
Date: | August 21, 2018 |
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: | August 21, 2018 |
By: | /s/ James F. Kirchner | |
James F. Kirchner | ||
Treasurer | ||
Date: | August 21, 2018 |