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, 2016

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

 

Eaton Vance

California Municipal Bond Fund

June 30, 2016

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 165.0%

 

                                                 
Security   Principal
Amount
(000’s omitted)		     Value  

Education — 12.8%

    

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

   $ 10,000      $ 11,336,100   

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

     770        818,448   

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

     550        657,409   

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

     940        1,123,573   

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

     1,375        1,543,754   

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

     285        321,702   

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

     650        806,208   

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

     6,200        6,822,356   

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

     1,790        2,096,878   

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

     1,175        1,381,471   

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

     800        941,904   

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

     2,270        2,730,833   

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

     2,395        2,862,025   

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

     2,520        2,991,719   
   

 

 

  
    $ 36,434,380   
   

 

 

  

Electric Utilities — 1.4%

    

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

   $ 1,890      $ 2,170,287   

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

     1,650        1,846,053   
   

 

 

  
    $ 4,016,340   
   

 

 

  

Escrowed/Prerefunded — 2.8%

    

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

   $ 1,910      $ 2,036,289   

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

     5,000        5,239,450   

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

     725        791,715   
   

 

 

  
    $ 8,067,454   
   

 

 

  

General Obligations — 47.0%

    

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

   $ 6,900      $ 7,817,217   

California, 5.50%, 11/1/35

     4,600        5,510,846   

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

     20        24,493   

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

     9,750        11,940,337   

Desert Community College District, 5.00%, 8/1/37(1)

     7,500        9,372,075   

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

     10,000        11,724,200   

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

     10,000        11,504,100   

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

     7,020        8,109,153   

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

     10,000        12,378,000   

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

     5,775        6,675,207   

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

     1,375        1,615,762   

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

     2,545        2,997,476   

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

     7,500        9,532,050   

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

     4,975        5,978,806   

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

     7,500        9,209,775   

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

     7,500        9,269,700   

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

     8,000        10,221,600   
   

 

 

  
  $ 133,880,797   
   

 

 

  

 

1

 

 

                                                 
Security   Principal
Amount
(000’s omitted)		     Value  

Hospital — 12.8%

  

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

   $ 1,750      $ 2,067,975   

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

     550        643,703   

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

     4,505        5,062,449   

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

     1,795        2,167,678   

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

     2,565        3,083,746   

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

     4,480        5,425,818   

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

     2,100        2,518,866   

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

     5,000        6,117,850   

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

     2,170        2,182,369   

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

     3,950        4,015,728   

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

     3,165        3,263,431   
   

 

 

  
  $ 36,549,613   
   

 

 

  

Insured-Electric Utilities — 11.5%

  

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

   $ 20,000      $ 20,580,599   

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

     2,000        2,167,180   

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

     3,840        3,963,686   

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

     1,000        1,090,840   

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

     4,000        5,063,720   
   

 

 

  
  $ 32,866,025   
   

 

 

  

Insured-Escrowed/Prerefunded — 13.2%

  

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

   $ 4,175      $ 4,390,681   

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

     23,150        8,744,449   

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

     345        359,311   

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

     2,240        2,397,494   

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

     5,705        5,984,317   

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

     10,000        10,809,600   

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

     4,750        4,998,045   
   

 

 

  
  $ 37,683,897   
   

 

 

  

Insured-General Obligations — 13.1%

  

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

   $ 4,135      $ 3,861,139   

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

     4,500        5,096,070   

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

     2,300        2,082,742   

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

     5,000        4,416,500   

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

     5,630        5,243,444   

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

     4,840        4,434,940   

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

     4,365        3,903,401   

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

     3,955        3,398,176   

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

     5,240        4,877,392   
   

 

 

  
  $ 37,313,804   
   

 

 

  

Insured-Hospital — 4.4%

  

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

   $ 10,000      $ 10,306,600   

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

     2,000        2,068,600   
   

 

 

  
  $ 12,375,200   
   

 

 

  

 

2

 

 

                                                 
Security   Principal
Amount
(000’s omitted)		     Value  

Insured-Special Tax Revenue — 5.9%

  

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

   $ 595      $ 609,102   

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

     7,240        7,381,397   

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

     5,940        5,961,978   

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

     15,020        2,738,446   
   

 

 

  
  $ 16,690,923   
   

 

 

  

Insured-Transportation — 1.4%

  

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

   $ 1,885      $ 1,937,328   

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

     2,040        2,095,794   
   

 

 

  
  $ 4,033,122   
   

 

 

  

Insured-Water and Sewer — 1.7%

  

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

   $ 1,595      $ 1,746,972   

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

     250        262,265   

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

     2,750        2,865,967   
   

 

 

  
  $ 4,875,204   
   

 

 

  

Lease Revenue/Certificates of Participation — 1.1%

  

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

   $ 2,565      $ 3,116,834   
   

 

 

  
  $ 3,116,834   
   

 

 

  

Special Tax Revenue — 10.4%

  

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

   $ 625      $ 765,656   

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

     625        759,350   

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

     6,285        7,861,273   

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

     5        6,202   

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

     10,375        12,869,357   

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

     6,250        7,477,563   
   

 

 

  
  $ 29,739,401   
   

 

 

  

Transportation — 11.2%

  

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

   $ 6,500      $ 7,311,525   

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

     1,960        2,278,147   

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

     7,500        9,328,125   

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

     7,500        8,597,925   

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

     2,190        2,491,059   

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

     1,750        2,008,300   
   

 

 

  
  $ 32,015,081   
   

 

 

  

Water and Sewer — 14.3%

  

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

   $ 5,725      $ 6,873,836   

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

     10,000        12,316,400   

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

     7,500        9,131,025   

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

     10,000        12,491,700   
   

 

 

  
  $ 40,812,961   
   

 

 

  

Total Tax-Exempt Investments — 165.0%
(identified cost $425,210,697)

     $ 470,471,036   
   

 

 

  

Other Assets, Less Liabilities — (65.0)%

  

   $ (185,360,117 ) 
   

 

 

  

Net Assets — 100.0%

  

   $ 285,110,919   
   

 

 

  

 

3

 

 

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, 2016, 31.0% 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 16.7% 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
Depreciation		  

Interest Rate Futures

               

U.S. 10-Year Treasury Note

    100   Short    Sep-16    $     (12,945,918 )    $     (13,298,437 )    $ (352,519 ) 

U.S. Long Treasury Bond

    79   Short    Sep-16      (12,851,127 )      (13,615,156 )      (764,029 ) 
                

 

 

  
                 $     (1,116,548 ) 
                

 

 

  

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 June 30, 2016, 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, 2016, the aggregate fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in a liability position and whose primary underlying risk exposure is interest rate risk was $1,116,548.

The cost and unrealized appreciation (depreciation) of investments of the Fund at June 30, 2016, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     231,405,635   
  

 

 

  

Gross unrealized appreciation

    $ 45,978,609   

Gross unrealized depreciation

      (793,208 ) 
  

 

 

  

Net unrealized appreciation

    $ 45,185,401   
  

 

 

  

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, 2016, 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

    $ —       $ 470,471,036       $ —       $ 470,471,036   

Total Investments

    $ —       $     470,471,036       $ —       $     470,471,036   
Liability Description                                

Futures Contracts

    $ (1,116,548 )     $ —       $ —       $ (1,116,548 ) 

Total

    $     (1,116,548 )     $ —       $     —       $ (1,116,548 ) 

The Fund held no investments or other financial instruments as of September 30, 2015 whose fair value was determined using Level 3 inputs. At June 30, 2016, 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:   August 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:   August 22, 2016

 

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