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, 2018

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

 

Eaton Vance

California Municipal Bond Fund

June 30, 2018

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 174.0%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 12.8%

      

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

    $ 770      $ 772,025  

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

      550        609,802  

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

      940        1,035,325  

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

      1,375        1,430,605  

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

      6,600        7,545,054  

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

      330        373,210  

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

      320        364,285  

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

      1,790        1,954,752  

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

      1,175        1,281,291  

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

      800        869,224  

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

      2,270        2,501,313  

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

      2,395        2,635,889  

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

      2,520        2,770,135  

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

      7,550        8,727,271  
     

 

 

  
      $ 32,870,181  
     

 

 

  

Electric Utilities — 1.3%

      

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

    $ 1,890      $ 2,004,893  

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

      1,165        1,203,468  
     

 

 

  
      $ 3,208,361  
     

 

 

  

Escrowed/Prerefunded — 14.6%

      

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

    $ 10,000      $ 10,471,800  

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

      285        300,906  

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

      6,200        6,260,202  

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

      4,505        4,686,551  

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

      10,000        11,017,000  

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

      1,375        1,514,838  

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

      2,545        2,803,826  

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

      500        514,675  
     

 

 

  
      $ 37,569,798  
     

 

 

  

General Obligations — 53.7%

      

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

    $ 7,450      $ 8,636,561  

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

      6,900        7,302,684  

California, 5.50%, 11/1/35

      4,600        4,996,060  

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

      2,500        2,885,325  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 9,750      $ 10,890,652  

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

      7,500        8,680,350  

Hayward Area Recreation and Park District, (Election of 2016), 5.00%, 8/1/42

      5,000        5,780,800  

Long Beach Unified School District, (Election of 2008), 5.00%, 8/1/42

      5,000        5,786,300  

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

      7,020        7,459,733  

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

      10,000        11,424,100  

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

      5,775        6,240,003  

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

      10,000        11,660,700  

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

      10,000        10,521,000  

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

      4,975        5,509,216  

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

      7,500        8,451,825  

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

      3,495        4,020,089  

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

      7,500        8,449,800  

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

      8,000        9,301,120  
     

 

 

  
   $ 137,996,318  
     

 

 

  

Hospital — 12.7%

 

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

    $ 1,750      $ 1,896,632  

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

      550        596,382  

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

      1,795        2,005,500  

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

      2,565        2,854,486  

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

      4,480        5,025,171  

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

      2,100        2,337,762  

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

      6,105        7,089,981  

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

      5,000        5,523,650  

California Public Finance Authority, (Sharp HealthCare), 4.00%, 8/1/47

      5,000        5,144,350  
     

 

 

  
   $ 32,473,914  
     

 

 

  

Housing — 2.2%

 

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      $ 5,628,150  
     

 

 

  
   $ 5,628,150  
     

 

 

  

Insured – Electric Utilities — 3.5%

 

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

    $ 3,840      $ 3,903,629  

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

      615        617,669  

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

      4,000        4,554,280  
     

 

 

  
   $ 9,075,578  
     

 

 

  

Insured – Escrowed/Prerefunded — 2.0%

 

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

    $ 4,500      $ 4,672,620  

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

      385        386,675  
     

 

 

  
   $ 5,059,295  
     

 

 

  

Insured – General Obligations — 12.7%

 

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

    $ 4,135      $ 3,894,095  

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

      2,300        2,115,862  

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

      5,000        4,469,150  

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

      5,630        5,314,945  

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

      4,840        4,468,239  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 4,365      $ 3,926,885  

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

      3,955        3,345,693  

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

      5,240        4,943,678  
     

 

 

  
      $ 32,478,547  
     

 

 

  

Insured – Special Tax Revenue — 6.7%

      

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

    $ 595      $ 601,247  

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

      7,240        7,246,878  

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

      5,940        5,957,048  

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

      15,020        3,434,323  
     

 

 

  
      $ 17,239,496  
     

 

 

  

Insured – Water and Sewer — 0.6%

      

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

    $ 1,595      $ 1,609,243  
     

 

 

  
      $ 1,609,243  
     

 

 

  

Lease Revenue/Certificates of Participation — 1.1%

      

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

    $ 2,565      $ 2,873,416  
     

 

 

  
      $ 2,873,416  
     

 

 

  

Special Tax Revenue — 18.1%

      

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

    $ 625      $ 701,919  

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

      625        699,663  

Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue, Green Bonds, 5.00%, 7/1/41(1)

      8,250        9,677,167  

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

      6,285        7,309,329  

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

      10,375        11,848,457  

San Diego County Regional Transportation Commission, Sales Tax Revenue,
5.00%, 4/1/41(1)

      8,150        9,408,605  

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

      6,250        6,913,188  
     

 

 

  
      $ 46,558,328  
     

 

 

  

Transportation — 13.2%

      

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

    $ 6,500      $ 6,687,525  

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

      1,960        2,076,816  

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

      7,500        8,488,950  

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

      7,500        7,952,700  

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

      2,190        2,306,464  

San Francisco City and County Airport Commission, (San Francisco International Airport), 5.00%, 5/1/47

      4,000        4,589,520  

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

      1,750        1,881,110  
     

 

 

  
      $ 33,983,085  
     

 

 

  

Water and Sewer — 18.8%

      

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

    $ 5,725      $ 6,326,984  

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

      9,000        10,726,740  

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

      10,000        11,324,200  

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

      7,500        8,368,650  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 10,000      $ 11,541,500  
     

 

 

  
      $ 48,288,074  
     

 

 

  

Total Tax-Exempt Investments — 174.0%
(identified cost $428,338,109)

       $ 446,911,784  
     

 

 

  

Other Assets, Less Liabilities — (74.0)%

       $ (190,063,179 ) 
     

 

 

  

Net Assets — 100.0%

       $ 256,848,605  
     

 

 

  

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, 2018, 14.6% 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 1.0% to 9.1% 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.

BHAC

   -   Berkshire Hathaway Assurance Corp.

NPFG

   -   National Public Finance Guaranty Corp.

XLCA

   -   XL Capital Assurance, Inc.
 

 

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 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.

 

4

 

 

At June 30, 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

    $ —      $ 446,911,784      $ —      $ 446,911,784  

Total Investments

    $     —      $     446,911,784      $     —      $     446,911,784  

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 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.

Proposed Plan of Reorganization

In April 2018, the Trustees of the Fund approved an Agreement and Plan of Reorganization (the Agreement) whereby the Fund would acquire substantially all the assets and assume substantially all the liabilities of Eaton Vance California Municipal Bond Fund II (California Fund II) in exchange for common shares of the Fund. The proposed reorganization is subject to approval by the shareholders of California Fund II.

 

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 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