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

June 30, 2017

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

 

Eaton Vance

California Municipal Bond Fund

June 30, 2017

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 170.3%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 12.7%

 

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

    $ 770      $ 785,092  

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

      550        636,273  

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

      940        1,074,044  

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

      1,375        1,478,166  

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

      6,600        7,675,404  

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

      285        310,921  

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

      650        767,572  

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

      1,790        2,011,513  

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

      1,175        1,323,743  

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

      800        902,320  

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

      2,270        2,608,752  

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

      2,395        2,739,664  

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

      2,520        2,864,887  

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

      7,550        8,784,199  
     

 

 

  
   $ 33,962,550  
     

 

 

  

Electric Utilities — 1.3%

 

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

    $ 1,890      $ 2,079,718  

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

      1,420        1,509,943  
     

 

 

  
   $ 3,589,661  
     

 

 

  

Escrowed/Prerefunded — 17.3%

 

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

    $ 10,000      $ 10,921,200  

California Educational Facilities Authority, (Claremont McKenna College), Prerefunded to 1/1/18, 5.00%, 1/1/27

      1,910        1,950,358  

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

      6,200        6,536,722  

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

      4,505        4,884,141  

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

      10,000        11,550,400  

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

      1,375        1,584,000  

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

      2,545        2,931,840  

San Francisco Bay Area Rapid Transit District, (Election of 2004), Prerefunded to 8/1/17, 5.00%, 8/1/35

      5,000        5,018,300  

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

      610        645,179  
     

 

 

  
   $ 46,022,140  
     

 

 

  

General Obligations — 47.3%

 

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

    $ 7,450      $ 8,730,581  

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

      6,900        7,421,916  

California, 5.50%, 11/1/35

      4,600        5,221,920  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 2,500      $ 2,905,800  

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

      9,750        11,242,920  

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

      7,500        8,776,350  

Mountain View Whisman School District, (Election of 2012), 4.00%, 9/1/42(1)

      10,000        10,565,800  

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

      7,020        7,757,240  

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

      10,000        11,511,500  

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

      5,775        6,420,876  

San Jose Unified School District, 5.00%, 8/1/32(1)

      7,500        8,864,850  

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

      4,975        5,681,201  

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

      7,500        8,694,675  

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

      3,495        4,050,251  

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

      7,500        8,694,600  

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

      8,000        9,528,480  
     

 

 

  
   $ 126,068,960  
     

 

 

  

Hospital — 9.0%

 

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

    $ 1,750      $ 1,966,965  

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

      550        619,547  

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

      1,795        2,033,825  

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

      2,565        2,907,658  

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

      4,480        5,114,099  

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

      2,100        2,380,938  

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

      5,000        5,729,900  

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

      3,165        3,171,362  
     

 

 

  
   $ 23,924,294  
     

 

 

  

Insured-Electric Utilities — 4.4%

 

Northern California Power Agency, (Hydroelectric), (AGC), 5.00%, 7/1/24

    $ 2,000      $ 2,078,080  

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

      3,840        4,085,376  

Sacramento Municipal Utility District, (AGM), 5.00%, 8/15/27

      615        643,038  

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

      4,000        4,781,440  
     

 

 

  
   $ 11,587,934  
     

 

 

  

Insured-Escrowed/Prerefunded — 12.2%

 

Antelope Valley Community College District, (Election of 2004), (NPFG), Prerefunded to 8/1/17, 5.25%, 8/1/39

    $ 4,175      $ 4,191,324  

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

      2,240        2,295,037  

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

      4,500        4,873,095  

Riverside Community College District, (Election of 2004), (AGM), (NPFG), Prerefunded to 8/1/17, 5.00%, 8/1/32

      5,705        5,726,051  

Sacramento Municipal Utility District, (AGM), Prerefunded to 8/15/18, 5.00%, 8/15/27

      385        402,972  

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

      10,000        10,347,200  

San Luis Obispo County, (Nacimiento Water Project), (BHAC), (NPFG), Prerefunded to 9/1/17, 5.00%, 9/1/38

      4,750        4,784,248  
     

 

 

  
   $ 32,619,927  
     

 

 

  

Insured-General Obligations — 12.1%

 

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

    $ 4,135      $ 3,865,150  

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

      2,300        2,099,693  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 5,000      $ 4,442,350  

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

      5,630        5,266,865  

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

      4,840        4,434,456  

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

      4,365        3,889,870  

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

      3,955        3,317,414  

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

      5,240        4,909,828  
     

 

 

  
   $ 32,225,626  
     

 

 

  

Insured-Special Tax Revenue — 6.3%

 

Hesperia Public Financing Authority, (Redevelopment and Housing Projects), (XLCA), 5.00%, 9/1/31

    $ 595      $ 596,773  

Hesperia Public Financing Authority, (Redevelopment and Housing Projects), (XLCA), 5.00%, 9/1/37

      7,240        7,256,290  

Pomona Public Financing Authority, (NPFG), 5.00%, 2/1/33

      5,940        5,959,305  

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

      15,020        2,983,723  
     

 

 

  
   $ 16,796,091  
     

 

 

  

Insured-Water and Sewer — 1.8%

 

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

    $ 1,595      $ 1,673,235  

San Luis Obispo County, (Nacimiento Water Project), (BHAC), (NPFG), 5.00%, 9/1/38

      250        251,645  

San Luis Obispo County, (Nacimiento Water Project), (NPFG), 4.50%, 9/1/40

      2,750        2,764,300  
     

 

 

  
   $ 4,689,180  
     

 

 

  

Lease Revenue/Certificates of Participation — 1.1%

 

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

    $ 2,565      $ 2,915,969  
     

 

 

  
   $ 2,915,969  
     

 

 

  

Special Tax Revenue — 12.2%

 

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

    $ 625      $ 722,513  

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

      625        716,356  

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

      6,285        7,392,981  

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

      10,375        12,103,475  

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

      6,250        7,202,812  

Successor Agency to San Diego Redevelopment Agency, 5.00%, 9/1/32

      3,720        4,384,243  
     

 

 

  
   $ 32,522,380  
     

 

 

  

Transportation — 11.4%

 

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

    $ 6,500      $ 6,982,235  

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

      1,960        2,172,425  

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

      7,500        8,664,375  

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

      7,500        8,262,450  

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

      2,190        2,390,735  

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

      1,750        1,931,895  
     

 

 

  
   $ 30,404,115  
     

 

 

  

Water and Sewer — 21.2%

 

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

    $ 5,725      $ 6,579,857  

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

      9,000        10,991,160  

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

      10,000        11,548,300  

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

      7,500        8,614,575  

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

      10,000        11,770,300  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 6,000      $ 7,020,840  
     

 

 

  
   $ 56,525,032  
     

 

 

  

Total Tax-Exempt Investments — 170.3%
(identified cost $427,676,767)

       $ 453,853,859  
     

 

 

  

Other Assets, Less Liabilities — (70.3)%

 

    $ (187,302,930 ) 
     

 

 

  

Net Assets — 100.0%

 

    $ 266,550,929  
     

 

 

  

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 June 30, 2017, 21.6% 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 or financial guaranty assurance agency ranged from 1.1% to 12.7% of total investments.

 

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

Futures Contracts

 

Description    Contracts      Position    Expiration
Month/Year		    Aggregate Cost     Value     Net Unrealized
Appreciation
(Depreciation)		  

Interest Rate Futures

  
U.S. 10-Year Treasury Note      100      Short    Sep-17    $     (12,557,674 )    $     (12,553,125 )    $ 4,549  
U.S. Long Treasury Bond      79      Short    Sep-17      (12,012,847 )      (12,141,312 )      (128,465 ) 
                  

 

 

  
  $     (123,916 ) 
                  

 

 

  

Abbreviations:

 

AGC

   -   Assured Guaranty Corp.

AGM

   -   Assured Guaranty Municipal Corp.

AMBAC

   -   AMBAC Financial Group, Inc.

BHAC

   -   Berkshire Hathaway Assurance Corp.

NPFG

   -   National Public Finance Guaranty Corp.

XLCA

   -   XL Capital Assurance, Inc.

At June 30, 2017, the Fund had sufficient cash and/or securities to cover commitments under open derivative contracts.

The Fund is subject to interest rate risk in the normal course of pursuing its investment objective. Because the Fund holds fixed-rate bonds, the value of these bonds may decrease if interest rates rise. The Fund enters into U.S. Treasury futures contracts to hedge against changes in interest rates.

At June 30, 2017, the aggregate fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in an asset position and in a liability position and whose primary underlying risk exposure is interest rate risk was $4,549 and $128,465, respectively.

 

4

 

 

The cost and unrealized appreciation (depreciation) of investments of the Fund at June 30, 2017, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     235,088,258  
  

 

 

  

Gross unrealized appreciation

    $ 27,590,987  

Gross unrealized depreciation

      (1,355,386 ) 
  

 

 

  

Net unrealized appreciation

    $ 26,235,601  
  

 

 

  

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 June 30, 2017, the hierarchy of inputs used in valuing the Fund’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

    $ —      $ 453,853,859      $ —      $ 453,853,859  

Total Investments

    $ —      $ 453,853,859      $ —      $ 453,853,859  

Futures Contracts

    $ 4,549      $ —      $ —      $ 4,549  

Total

    $ 4,549      $     453,853,859      $ —      $     453,858,408  
Liability Description                                

Futures Contracts

    $ (128,465 )     $ —      $ —      $ (128,465 ) 

Total

    $     (128,465 )     $ —      $     —      $ (128,465 ) 

The Fund held no investments or other financial instruments as of September 30, 2016 whose fair value was determined using Level 3 inputs. At June 30, 2017, there were no investments transferred between Level 1 and Level 2 during the fiscal year to date then ended.

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.

 

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