Eaton Vance California Municipal Bond Fund

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-21147

Investment Company Act File Number

Eaton Vance California 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

(Registrant’s Telephone Number, Including Area Code)

September 30

Date of Fiscal Year End

December 31, 2018

Date of Reporting Period

 

 

 


Item 1. Schedule of Investments


Eaton Vance

California Municipal Bond Fund

December 31, 2018

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 174.8%

                                                 
Security    Principal
Amount
(000’s omitted)
     Value  

Education — 18.7%

     

California Educational Facilities Authority, (Claremont McKenna College), 5.00%, 1/1/27

   $ 770      $ 771,932  

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

     645        706,288  

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

     1,100        1,197,009  

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

     1,755        1,794,189  

California Educational Facilities Authority, (Loyola Marymount University),
Green Bonds, 5.00%, 10/1/43

     2,105        2,401,026  

California Educational Facilities Authority, (Loyola Marymount University),
Green Bonds, 5.00%, 10/1/48

     3,000        3,408,480  

California Educational Facilities Authority, (Pepperdine University), 5.00%, 10/1/46(1)

     6,600        7,425,990  

California Educational Facilities Authority, (University of San Francisco), Prerefunded to
10/1/21, 6.125%, 10/1/36

     375        419,513  

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

     1,790        1,944,083  

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

     1,385        1,491,520  

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

     945        1,014,543  

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

     2,270        2,466,627  

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

     2,820        3,061,110  

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

     2,970        3,220,609  

California State University, 5.00%, 11/1/41(1)

     9,550        10,777,557  

University of California, 5.00%, 5/15/46(1)

     12,050        13,530,222  

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

     165        167,269  

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

     550        557,562  
     

 

 

 
      $ 56,355,529  
     

 

 

 

Electric Utilities — 1.8%

     

Los Angeles Department of Water and Power System Revenue, 5.00%, 7/1/42(1)

   $ 2,000      $ 2,286,700  

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

     1,890        1,969,078  

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

     1,130        1,149,413  
     

 

 

 
      $ 5,405,191  
     

 

 

 

Escrowed/Prerefunded — 11.4%

     

California Educational Facilities Authority, (California Institute of Technology), Prerefunded to 11/1/19, 5.00%, 11/1/39(1)

   $ 10,000      $ 10,285,800  

California Educational Facilities Authority, (Santa Clara University), Prerefunded to 2/1/20, 5.00%, 2/1/29

     285        295,591  

California Educational Facilities Authority, (University of San Francisco), Prerefunded to 10/1/21, 6.125%, 10/1/36

     390        436,854  

California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), Prerefunded to 8/15/19, 5.00%, 8/15/39

     5,905        6,029,064  

Foothill-De Anza Community College District, Prerefunded to 8/1/21, 5.00%, 8/1/36(1)

     10,000        10,860,400  

San Diego Community College District, (Election of 2002), Prerefunded to 8/1/21, 5.00%, 8/1/32

     2,095        2,275,254  

San Diego Community College District, (Election of 2006), Prerefunded to 8/1/21, 5.00%, 8/1/31

     3,000        3,258,120  

 

1

 

 


                                                 
Security    Principal
Amount
(000’s omitted)
     Value  

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

   $ 285      $ 288,919  

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

     520        530,613  
     

 

 

 
      $ 34,260,615  
     

 

 

 

General Obligations — 55.2%

     

Alameda City Unified School District, (Election of 2014), 5.00%, 8/1/42(1)

   $ 1,675      $ 1,932,146  

Berryessa Union School District, (Election of 2014), 5.00%, 8/1/40(1)

     7,450        8,505,889  

Burbank Unified School District, (Election of 2013), 4.00%, 8/1/31(1)

     6,900        7,295,922  

Cabrillo Unified School District, (Election of 2018), 5.00%, 8/1/48

     5,000        5,622,700  

California, 5.50%, 11/1/35

     5,900        6,257,658  

Campbell Union High School District, (Election of 2016), 5.00%, 8/1/36(1)

     11,250        13,003,875  

Contra Costa Community College District, (Election of 2006), 5.00%, 8/1/38(1)

     9,750        10,869,495  

Desert Community College District, 5.00%, 8/1/36(1)

     7,500        8,656,650  

El Camino Community College District, (Election of 2012), 5.00%, 8/1/48(1)

     10,000        11,572,800  

La Canada Unified School District, (Election of 2017), 5.00%, 8/1/47(1)

     3,375        3,936,296  

Long Beach Unified School District, (Election of 2008), 5.00%, 8/1/41(1)

     1,500        1,709,595  

Oxnard Union High School District, (Election of 2018), 5.00%, 8/1/42(1)

     3,000        3,399,570  

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

     1,850        1,940,761  

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

     7,020        7,364,401  

Palomar Community College District, 5.00%, 8/1/44(1)

     10,000        11,396,900  

Redding School District, (Election of 2018), 5.00%, 8/1/45

     750        847,185  

Redding School District, (Election of 2018), 5.00%, 8/1/48

     2,645        2,972,530  

San Bernardino Community College District, 4.00%, 8/1/27(1)

     5,775        6,246,182  

San Diego Unified School District, (Election of 2012), 5.00%, 7/1/47(1)

     4,000        4,586,280  

San Jose Unified School District, (Election of 2012), 4.00%, 8/1/42(1)

     12,000        12,540,600  

San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/37(1)

     4,975        5,448,073  

Santa Monica Community College District, (Election of 2008), 5.00%, 8/1/44(1)

     7,500        8,375,175  

Santa Rosa High School District, (Election of 2014), 5.00%, 8/1/41

     3,495        3,973,186  

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

     7,500        8,451,450  

Ventura County Community College District, 5.00%, 8/1/30(1)

     8,000        9,327,360  
     

 

 

 
      $ 166,232,679  
     

 

 

 

Hospital — 17.4%

     

California Health Facilities Financing Authority, (Adventist Health System/West),
4.00%, 3/1/39

   $ 5,000      $ 5,049,450  

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

     1,750        1,868,895  

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

     550        587,609  

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

     2,130        2,334,927  

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

     3,040        3,321,899  

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

     5,080        5,634,990  

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

     2,380        2,622,950  

California Health Facilities Financing Authority, (Sutter Health), 5.00%, 11/15/36

     1,250        1,423,488  

California Health Facilities Financing Authority, (Sutter Health), 5.00%, 11/15/46(1)

     3,000        3,317,850  

California Health Facilities Financing Authority, (Sutter Health), 5.00%, 11/15/46

     8,000        8,847,600  

California Health Facilities Financing Authority, (Sutter Health), 5.25%, 8/15/31(1)

     5,000        5,418,800  

California Public Finance Authority, (Sharp HealthCare), 5.00%, 8/1/47(1)

     1,250        1,416,538  

California Public Finance Authority, (Sharp HealthCare), 5.00%, 8/1/47

     8,445        9,570,128  

California Statewide Communities Development Authority, (Cottage Health System),
5.25%, 11/1/30

     1,000        1,058,020  
     

 

 

 
      $ 52,473,144  
     

 

 

 

 

2

 

 


                                                 
Security    Principal
Amount
(000’s omitted)
     Value  

Housing — 1.8%

     

California Statewide Communities Development Authority, (University of California, Irvine East Campus Apartments, Phase IV-A-CHF-Irvine, LLC), 5.00%, 5/15/47

   $ 5,000      $ 5,486,450  
     

 

 

 
      $ 5,486,450  
     

 

 

 

Insured – Electric Utilities — 3.2%

     

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

   $ 4,875      $ 5,012,036  

Sacramento Municipal Utility District, (AMBAC), (BHAC), 5.25%, 7/1/24

     4,000        4,539,720  
     

 

 

 
      $ 9,551,756  
     

 

 

 

Insured – Escrowed/Prerefunded — 3.0%

     

Clovis Unified School District, (NPFG), Escrowed to Maturity, 0.00%, 8/1/20

   $ 3,130      $ 3,044,175  

Palm Springs Unified School District, (Election of 2008), (AGC), Prerefunded to 8/1/19, 5.00%, 8/1/33

     5,750        5,864,943  
     

 

 

 
      $ 8,909,118  
     

 

 

 

Insured – General Obligations — 17.2%

     

Burbank Unified School District, (Election of 1997), (NPFG), 0.00%, 8/1/21

   $ 4,135      $ 3,925,231  

Cotati-Rohnert Park Unified School District, (Election of 2016), (AGM), 5.00%, 8/1/44

     3,500        3,890,985  

Garvey School District, (Election of 2016), (AGM), 5.00%, 8/1/45

     2,440        2,729,921  

Garvey School District, (Election of 2016), (AGM), 5.00%, 8/1/48

     2,610        2,908,975  

Grass Valley School District, (Election of 2018), (BAM), 5.00%, 8/1/45

     3,000        3,356,460  

Mountain View School District, (Election of 2016), (BAM), 5.00%, 8/1/42

     1,145        1,288,423  

Mountain View School District, (Election of 2016), (BAM), 5.00%, 8/1/45

     1,520        1,704,954  

San Diego Unified School District, (NPFG), 0.00%, 7/1/22

     2,300        2,139,552  

San Diego Unified School District, (NPFG), 0.00%, 7/1/23

     5,000        4,533,750  

San Juan Unified School District, (AGM), 0.00%, 8/1/21

     5,630        5,366,234  

San Mateo County Community College District, (NPFG), 0.00%, 9/1/22

     4,840        4,509,718  

San Mateo County Community College District, (NPFG), 0.00%, 9/1/23

     4,365        3,972,805  

San Mateo County Community College District, (NPFG), 0.00%, 9/1/25

     3,955        3,389,475  

San Mateo Union High School District, (NPFG), 0.00%, 9/1/21

     5,240        4,992,043  

Union Elementary School District, (Election of 1999), (NPFG), 0.00%, 9/1/22

     3,200        2,968,672  
     

 

 

 
      $ 51,677,198  
     

 

 

 

Insured – Transportation — 0.9%

     

San Joaquin Hills Transportation Corridor Agency, (NPFG), 0.00%, 1/15/27

   $ 3,520      $ 2,672,138  
     

 

 

 
      $ 2,672,138  
     

 

 

 

Insured – Water and Sewer — 0.7%

     

Riverside, Water System Revenue, (AGM), 5.00%, 10/1/38

   $ 2,040      $ 2,056,687  
     

 

 

 
      $ 2,056,687  
     

 

 

 

Lease Revenue/Certificates of Participation — 1.1%

     

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

   $ 3,045      $ 3,354,098  
     

 

 

 
      $ 3,354,098  
     

 

 

 

Special Tax Revenue — 13.4%

     

Jurupa Public Financing Authority, 5.00%, 9/1/30

   $ 625      $ 702,769  

Jurupa Public Financing Authority, 5.00%, 9/1/32

     625        698,931  

Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue, Green Bonds, 5.00%, 7/1/42(1)

     10,250        11,802,055  

Riverside County Transportation Commission, Sales Tax Revenue, Prerefunded to 6/1/23, 5.25%, 6/1/39(1)

     6,285        7,237,932  

San Bernardino County Transportation Authority, 5.25%, 3/1/40(1)

     10,375        11,796,582  

 

3

 

 


                                                 
Security    Principal
Amount
(000’s omitted)
     Value  

San Francisco Bay Area Rapid Transit District, Sales Tax Revenue, Prerefunded to 7/1/20, 5.00%, 7/1/28

   $ 1,300      $ 1,365,013  

San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, 5.00%, 7/1/36(1)

     6,250        6,888,688  
     

 

 

 
      $ 40,491,970  
     

 

 

 

Transportation — 10.8%

     

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

   $ 6,500      $ 6,558,890  

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

     1,190        1,200,781  

Long Beach, Harbor Revenue, 5.00%, 5/15/27

     2,500        2,605,400  

Long Beach, Harbor Revenue, 5.00%, 5/15/42(1)

     7,500        8,483,850  

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

     8,560        8,907,878  

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

     2,825        2,933,537  

San Jose, Airport Revenue, 5.00%, 3/1/31

     1,750        1,852,813  
     

 

 

 
      $ 32,543,149  
     

 

 

 

Water and Sewer — 18.2%

     

Beverly Hills Public Financing Authority, Water Revenue, 5.00%, 6/1/37(1)

   $ 5,725      $ 6,262,749  

Eastern Municipal Water District Financing Authority, 5.25%, 7/1/42(1)

     9,000        10,679,130  

Los Angeles Department of Water and Power, Water System Revenue, 5.00%, 7/1/39(1)

     10,000        11,188,800  

Los Angeles, Wastewater System Revenue, 5.00%, 6/1/43(1)

     7,500        8,215,950  

Orange County Sanitation District, Wastewater Revenue, 5.00%, 2/1/35(1)

     10,000        11,332,800  

Rancho California Water District Financing Authority, 5.00%, 8/1/46(1)

     2,500        2,849,325  

San Francisco City and County Public Utilities Commission, Water Revenue, Green Bonds, 5.00%, 11/1/45(1)

     4,000        4,458,640  
     

 

 

 
      $ 54,987,394  
     

 

 

 

Total Tax-Exempt Investments — 174.8%
(identified cost $506,672,524)

      $ 526,457,116  
     

 

 

 

Other Assets, Less Liabilities — (74.8)%

      $ (225,220,393
     

 

 

 

Net Assets — 100.0%

      $ 301,236,723  
     

 

 

 

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

The Fund 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 December 31, 2018, 14.2% 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 0.9% to 7.8% of total investments.

 

(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.

BHAC

  -   Berkshire Hathaway Assurance Corp.

NPFG

  -   National Public Finance Guaranty Corp.
 

 

4

 

 


The Fund did not have any open derivative instruments at December 31, 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 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 December 31, 2018, the hierarchy of inputs used in valuing the Fund’s investments, which are carried at value, were as follows:

 

Asset Description    Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

   $     —      $ 526,457,116      $     —      $     526,457,116  

Total Investments

   $      $     526,457,116      $      $ 526,457,116  

For information on the Fund’s policy regarding the valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements included in its semiannual or annual report to shareholders.

Reorganization

As of the close of business on December 14, 2018, the Fund acquired the net assets of Eaton Vance California Municipal Bond Fund II (California Fund II), pursuant to a plan of reorganization approved by the shareholders of California Fund II. The investment portfolio of California Fund II, with a fair value of $79,072,648 and identified cost of $76,841,447 was the principal asset acquired by the Fund. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the identified cost of the investments received from California Fund II was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. The aggregate net assets of the Fund immediately before the acquisition were $251,386,702. The net assets of California Fund II at that date of $46,853,792 were combined with those of the Fund, resulting in combined net assets of $298,240,494.

 

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.

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 Bond Fund

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   February 25, 2019

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:   February 25, 2019
By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   February 25, 2019