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, 2015

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

California Municipal Bond Fund

December 31, 2015

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 163.5%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 13.1%

      

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

    $ 10,000       $ 11,268,900   

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

      770         827,334   

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

      550         648,676   

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

      940         1,108,645   

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

      1,375         1,539,532   

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

      285         323,028   

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

      650         793,644   

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

      6,200         6,901,220   

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

      1,790         2,034,908   

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

      1,175         1,368,135   

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

      800         929,760   

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

      2,270         2,682,981   

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

      2,395         2,807,203   

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

      2,520         2,936,984   
     

 

 

  
      $ 36,170,950   
     

 

 

  

Electric Utilities — 1.4%

      

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

    $ 1,890       $ 2,144,640   

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

      1,650         1,820,791   
     

 

 

  
      $ 3,965,431   
     

 

 

  

Escrowed/Prerefunded — 3.0%

      

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

    $ 1,910       $ 2,067,461   

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

      5,000         5,327,800   

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

      725         797,565   
     

 

 

  
      $ 8,192,826   
     

 

 

  

General Obligations — 36.0%

      

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

    $ 6,900       $ 7,491,537   

California, 5.50%, 11/1/35

      4,600         5,497,368   

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

      20         23,269   

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

      9,750         11,343,637   

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

      10,000         11,620,100   

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

      7,020         8,010,241   

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

      10,000         11,691,100   

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

      5,775         6,437,854   

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

      1,375         1,602,343   

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

      2,545         2,971,669   

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

      4,975         5,798,960   

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

      7,500         8,738,550   

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

      7,500         8,709,075   

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

      8,000         9,763,440   
     

 

 

  
      $ 99,699,143   
     

 

 

  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Hospital — 12.9%

      

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

    $ 1,750       $ 2,040,937   

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

      550         635,915   

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

      4,505         4,994,874   

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

      1,795         2,031,276   

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

      2,565         2,882,214   

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

      4,480         5,195,142   

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

      2,100         2,412,123   

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

      5,000         5,933,450   

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

      2,170         2,227,679   

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

      3,950         4,022,996   

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

      3,165         3,272,958   
     

 

 

  
      $ 35,649,564   
     

 

 

  

Insured-Education — 3.2%

      

California State University, (AGM), (BHAC), 5.00%, 11/1/39(1)

    $ 8,250       $ 8,960,490   
     

 

 

  
      $ 8,960,490   
     

 

 

  

Insured-Electric Utilities — 12.7%

      

Anaheim Public Financing Authority, (Electric System District), (BHAC), (NPFG), 4.50%, 10/1/32(1)

    $ 20,000       $ 20,808,599   

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

      2,240         2,402,041   

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

      2,000         2,179,980   

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

      3,840         3,675,725   

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

      1,000         1,097,650   

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

      4,000         4,958,040   
     

 

 

  
      $ 35,122,035   
     

 

 

  

Insured-Escrowed/Prerefunded — 9.0%

      

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

    $ 4,175       $ 4,473,304   

Coast Community College District, (Election of 2002), (AGM), Prerefunded to 8/1/16, 0.00%, 8/1/34

      23,150         8,722,688   

East Bay Municipal Utility District, Water System Revenue, (AGM), (FGIC), Prerefunded to 6/1/17, 5.00%, 6/1/32

      345         365,959   

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

      5,705         6,090,202   

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

      4,750         5,084,067   
     

 

 

  
      $ 24,736,220   
     

 

 

  

Insured-General Obligations — 15.3%

      

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

    $ 4,135       $ 3,680,150   

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

      4,500         5,024,475   

San Diego Community College District, (Election of 2006), (AGM), 5.00%, 8/1/32(1)

      6,100         6,473,747   

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

      2,300         1,994,491   

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

      5,000         4,188,650   

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

      5,630         5,080,399   

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

      4,840         4,285,046   

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

      4,365         3,694,143   

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

      3,955         3,126,942   

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

      5,240         4,733,554   
     

 

 

  
      $ 42,281,597   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Hospital — 5.8%

      

California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC), 5.00%, 4/1/31(1)

    $ 10,000       $ 10,462,900   

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

      3,500         3,525,095   

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

      2,000         2,084,660   
     

 

 

  
      $ 16,072,655   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 3.9%

      

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

    $ 10,000       $ 10,861,200   
     

 

 

  
      $ 10,861,200   
     

 

 

  

Insured-Special Tax Revenue — 5.9%

      

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

    $ 595       $ 607,489   

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

      7,240         7,354,030   

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

      5,940         5,948,079   

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

      15,020         2,254,051   
     

 

 

  
      $ 16,163,649   
     

 

 

  

Insured-Transportation — 1.5%

      

San Jose, Airport Revenue, (AMBAC), 5.00%, 3/1/33

    $ 1,885       $ 1,954,255   

San Jose, Airport Revenue, (AMBAC), 5.00%, 3/1/37

      2,040         2,116,888   
     

 

 

  
      $ 4,071,143   
     

 

 

  

Insured-Water and Sewer — 2.5%

      

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

    $ 1,595       $ 1,753,655   

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

      250         265,597   

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

      2,750         2,876,555   

Santa Clara Valley Water District, (AGM), 3.75%, 6/1/28

      2,075         2,088,176   
     

 

 

  
      $ 6,983,983   
     

 

 

  

Lease Revenue/Certificates of Participation — 1.1%

      

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

    $ 2,565       $ 2,961,293   
     

 

 

  
      $ 2,961,293   
     

 

 

  

Special Tax Revenue — 10.3%

      

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

    $ 625       $ 717,006   

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

      625         712,075   

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

      6,285         7,556,705   

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

      5         5,929   

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

      10,375         12,301,949   

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

      6,250         7,261,063   
     

 

 

  
      $ 28,554,727   
     

 

 

  

Transportation — 11.8%

      

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

    $ 6,500       $ 7,380,035   

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

      1,960         2,271,699   

Long Beach Harbor Revenue, 5.00%, 5/15/42

      1,080         1,266,862   

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

      7,500         8,797,650   

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

      7,500         8,507,925   

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

      2,190         2,449,471   

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

      1,750         1,946,402   
     

 

 

  
      $ 32,620,044   
     

 

 

  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Water and Sewer — 14.1%

      

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

    $ 5,725       $ 6,608,883   

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

      10,000         11,744,800   

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

      7,500         8,685,000   

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

      10,000         11,903,300   
     

 

 

  
      $ 38,941,983   
     

 

 

  

Total Tax-Exempt Investments — 163.5%
(identified cost $417,061,815)

       $ 452,008,933   
     

 

 

  

Other Assets, Less Liabilities — (63.5)%

       $ (175,475,197 ) 
     

 

 

  

Net Assets — 100.0%

       $ 276,533,736   
     

 

 

  

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, 2015, 36.6% 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 0.1% to 17.1% 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      Mar-16       $     (12,627,156 )    $     (12,590,625 )    $ 36,531   
U.S. Long Treasury Bond    79    Short      Mar-16         (12,132,523 )      (12,146,250 )      (13,727 ) 
               

 

 

  
                $     22,804   
               

 

 

  

Abbreviations:

 

AGC

   -   Assured Guaranty Corp.

AGM

   -   Assured Guaranty Municipal Corp.

AMBAC

   -   AMBAC Financial Group, Inc.

BHAC

   -   Berkshire Hathaway Assurance Corp.

FGIC

   -   Financial Guaranty Insurance Company

NPFG

   -   National Public Finance Guaranty Corp.

XLCA

   -   XL Capital Assurance, Inc.

At December 31, 2015, 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 December 31, 2015, 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 $36,531 and $13,727, respectively.

 

4

 

 

The cost and unrealized appreciation (depreciation) of investments of the Fund at December 31, 2015, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     227,712,700   
  

 

 

  

Gross unrealized appreciation

    $ 36,152,186   

Gross unrealized depreciation

      (1,190,953 ) 
  

 

 

  

Net unrealized appreciation

    $ 34,961,233   
  

 

 

  

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, 2015, 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

    $ —       $ 452,008,933       $ —       $ 452,008,933   

Total Investments

    $ —       $ 452,008,933       $ —       $ 452,008,933   

Futures Contracts

    $ 36,531       $ —       $ —       $ 36,531   

Total

    $ 36,531       $     452,008,933       $ —       $     452,045,464   
Liability Description                                

Futures Contracts

    $ (13,727 )     $ —       $ —       $ (13,727 ) 

Total

    $     (13,727 )     $ —       $ —       $ (13,727 ) 

The Fund held no investments or other financial instruments as of September 30, 2015 whose fair value was determined using Level 3 inputs. At December 31, 2015, 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.

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 22, 2016

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 22, 2016

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   February 22, 2016