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, 2012

Date of Reporting Period

 

 

 


Item 1. Schedule of Investments


Eaton Vance

California Municipal Bond Fund

June 30, 2012

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 163.7%

 

                                                 
Security    Principal
Amount
(000’s omitted)
     Value  

Education — 15.6%

     

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

   $ 10,000       $ 11,241,700   

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

     2,680         3,059,193   

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

     550         626,907   

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

     940         1,050,629   

California Educational Facilities Authority, (Loyola Marymount University),
5.00%, 10/1/22

     395         461,791   

California Educational Facilities Authority, (Loyola Marymount University),
5.00%, 10/1/23

     365         422,801   

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

     1,375         1,496,426   

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

     3,630         4,144,516   

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

     650         780,273   

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

     6,200         7,160,504   

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

     1,790         1,967,049   

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

     1,175         1,294,216   

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

     800         860,368   

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

     2,270         2,617,128   

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

     2,395         2,743,161   

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

     2,520         2,864,887   
     

 

 

 
      $ 42,791,549   
     

 

 

 

Electric Utilities — 4.5%

     

California Department of Water Resources System, Electric Revenue, 5.00%, 5/1/22

   $ 2,700       $ 3,277,260   

Puerto Rico Electric Power Authority, 5.25%, 7/1/29

     3,905         4,147,227   

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

     1,890         2,080,210   

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

     2,375         2,656,461   
     

 

 

 
      $ 12,161,158   
     

 

 

 

General Obligations — 17.1%

     

California, 5.50%, 11/1/35

   $ 4,600       $ 5,287,056   

Foothill-De Anza Community College District, 5.00%, 8/1/30

     3,355         3,972,219   

Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/32

     545         593,271   

Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/33

     600         644,688   

Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/34

     655         700,562   

Larkspur-Corte Madera School District, (Election of 2011), 4.25%, 8/1/35

     645         699,354   

Larkspur-Corte Madera School District, (Election of 2011), 4.25%, 8/1/36

     785         849,221   

Larkspur-Corte Madera School District, (Election of 2011), 4.50%, 8/1/39

     2,815         3,109,759   

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

     7,020         7,986,443   

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

     1,375         1,577,579   

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

     2,545         2,922,118   

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

     5,000         5,698,100   

San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/33

     1,910         2,199,938   

San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/35

     2,230         2,537,606   

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

     15         16,824   

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

     4,975         5,579,860   

 

1

 

 


                                                 
Security    Principal
Amount
(000’s omitted)
     Value  

Tamalpais Union High School District, 5.00%, 8/1/26

   $ 1,000       $ 1,202,920   

Tamalpais Union High School District, 5.00%, 8/1/28

     1,000         1,190,910   
     

 

 

 
      $ 46,768,428   
     

 

 

 

Hospital — 12.5%

     

California Health Facilities Financing Authority, (Catholic Healthcare West),
5.25%, 7/1/23

   $ 2,000       $ 2,134,300   

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

     1,750         1,963,780   

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

     550         613,371   

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

     4,580         4,900,966   

California Health Facilities Financing Authority, (Stanford Hospital and Clinics),
5.00%, 8/15/51

     6,000         6,430,740   

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

     5,000         5,630,550   

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

     2,170         2,293,581   

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

     3,950         3,954,463   

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

     3,165         3,254,475   

Washington Township Health Care District, 5.25%, 7/1/29

     3,005         3,018,553   
     

 

 

 
      $ 34,194,779   
     

 

 

 

Insured-Education — 12.0%

     

California Educational Facilities Authority, (Pepperdine University), (AMBAC),
5.00%, 12/1/32

   $ 2,300       $ 2,538,257   

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

     8,250         8,850,682   

University of California, (AGM), 4.50%, 5/15/26(1)

     3,095         3,329,106   

University of California, (AGM), 4.50%, 5/15/28(1)

     6,690         7,051,527   

University of California, (BHAC), (FGIC), 4.75%, 5/15/37(1)

     10,750         11,102,600   
     

 

 

 
      $ 32,872,172   
     

 

 

 

Insured-Electric Utilities — 14.5%

     

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

   $ 20,000       $ 21,169,384   

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

     2,240         2,454,995   

Los Angeles Department of Water and Power, Electric System Revenue, (AMBAC), (BHAC), 5.00%, 7/1/26(1)

     6,750         7,756,830   

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

     2,000         2,248,720   

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

     1,000         1,125,160   

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

     4,000         4,963,360   
     

 

 

 
      $ 39,718,449   
     

 

 

 

Insured-Escrowed/Prerefunded — 3.7%

     

California Department of Water Resources, (Central Valley Project), (BHAC), (FGIC), Prerefunded to 12/1/12, 5.00%, 12/1/29(1)

   $ 2,100       $ 2,142,728   

California Educational Facilities Authority, (Pepperdine University), (FGIC), (NPFG), Prerefunded to 9/1/12, 5.00%, 9/1/33

     1,135         1,144,455   

California Infrastructure and Economic Development Bank, (Bay Area Toll Bridges), (AMBAC), Prerefunded to 1/1/28, 5.00%, 7/1/36

     3,090         4,151,291   

Ventura County, Community College District, (NPFG), Prerefunded to 8/1/12,
5.00%, 8/1/27

     2,650         2,687,922   
     

 

 

 
      $ 10,126,396   
     

 

 

 

Insured-General Obligations — 21.0%

     

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

   $ 4,175       $ 4,544,195   

Burbank Unified School District, (FGIC), (NPFG), 0.00%, 8/1/21

     4,135         3,056,468   

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

     23,150         7,023,015   

El Camino Hospital District, (NPFG), 4.45%, 8/1/36

     2,385         2,440,260   

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

     4,500         5,014,485   

 

2

 

 


                                                 
Security    Principal
Amount
(000’s omitted)
     Value  

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

   $ 5,705       $ 6,418,753   

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

     15         16,529   

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

     6,100         6,721,590   

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

     2,300         1,587,506   

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

     5,000         3,261,500   

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

     5,630         4,124,538   

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

     4,840         3,439,982   

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

     4,365         2,942,228   

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

     3,955         2,397,917   

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

     5,240         4,026,730   

Ventura County, Community College District, (NPFG), 5.00%, 8/1/27

     350         354,690   
     

 

 

 
      $ 57,370,386   
     

 

 

 

Insured-Hospital — 7.0%

     

California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), (BHAC), 5.00%, 11/15/34

   $ 2,205       $ 2,413,836   

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

     10,000         11,042,200   

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

     3,500         3,684,345   

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

     2,000         2,130,060   
     

 

 

 
      $ 19,270,441   
     

 

 

 

Insured-Lease Revenue/Certificates of Participation — 11.4%

     

Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27

   $ 3,885       $ 5,298,285   

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

     10,000         10,821,200   

San Jose Financing Authority, (Civic Center), (AMBAC), (BHAC), 5.00%, 6/1/37

     1,000         1,002,700   

San Jose Financing Authority, (Civic Center), (AMBAC), (BHAC), 5.00%, 6/1/37(1)

     14,000         14,037,800   
     

 

 

 
      $ 31,159,985   
     

 

 

 

Insured-Special Tax Revenue — 13.5%

     

Ceres, Redevelopment Agency Tax, (AMBAC), 4.00%, 11/1/36

   $ 7,765       $ 6,462,809   

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

     595         517,918   

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

     7,240         5,972,131   

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

     5,940         5,834,862   

Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54

     29,265         2,477,868   

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

     18,040         2,709,788   

San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, (AGM),
4.25%, 7/1/36

     1,600         1,630,992   

San Jose Redevelopment Agency, (Merged Area Redevelopment Project), (XLCA),
4.25%, 8/1/36

     3,680         2,906,280   

Santa Clara Valley Transportation Authority, Sales Tax Revenue, (AMBAC),
5.00%, 4/1/32
(1)

     7,500         8,391,600   
     

 

 

 
      $ 36,904,248   
     

 

 

 

Insured-Transportation — 2.0%

     

San Joaquin Hills, Transportation Corridor Agency, (NPFG), 0.00%, 1/15/30

   $ 3,445       $ 1,254,842   

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

     1,885         1,966,545   

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

     2,040         2,115,031   
     

 

 

 
      $ 5,336,418   
     

 

 

 

Insured-Water and Sewer — 14.2%

     

California Department of Water Resources, (Central Valley Project), (BHAC), (FGIC),
5.00%, 12/1/29
(1)

   $ 5,875       $ 5,974,992   

Calleguas Las Virgines Public Financing Authority, (Municipal Water District), (BHAC), (FGIC), 4.75%, 7/1/37(1)

     7,000         7,406,210   

Contra Costa, Water District, (AGM), 4.50%, 10/1/31(1)

     5,500         5,505,335   

 

3

 

 


                                                 
Security    Principal
Amount
(000’s omitted)
     Value  

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

   $ 345       $ 390,599   

East Bay Municipal Utility District, Water System Revenue, (FGIC), (NPFG),
5.00%, 6/1/32
(1)

     6,500         7,359,105   

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

     1,595         1,730,623   

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

     5,000         5,379,950   

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

     2,750         2,812,892   

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

     2,225         2,285,854   
     

 

 

 
      $ 38,845,560   
     

 

 

 

Special Tax Revenue — 4.1%

     

San Diego County Regional Transportation Commission, 5.00%, 4/1/42(1)

   $ 10,000       $ 11,296,300   
     

 

 

 
      $ 11,296,300   
     

 

 

 

Transportation — 8.2%

     

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

   $ 6,500       $ 7,635,420   

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

     1,960         2,278,069   

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

     7,500         8,320,200   

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

     2,190         2,378,208   

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

     1,750         1,893,745   
     

 

 

 
      $ 22,505,642   
     

 

 

 

Water and Sewer — 2.4%

     

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

   $ 5,725       $ 6,661,152   

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

     10         11,635   
     

 

 

 
      $ 6,672,787   
     

 

 

 

Total Tax-Exempt Investments — 163.7%
(identified cost $419,706,462)

      $ 447,994,698   
     

 

 

 

Other Assets, Less Liabilities — (63.7)%

      $ (174,350,499
     

 

 

 

Net Assets — 100.0%

      $     273,644,199   
     

 

 

 

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

 

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.

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, 2012, 60.6% 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 ranged from 2.1% to 24.3% of total investments.

 

4

 

 


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

A summary of open financial instruments at June 30, 2012 is as follows:

Futures Contracts

 

Expiration
Month/Year
  

Contracts

   Position    Aggregate Cost     Value     Net Unrealized
Depreciation
 
9/12    200 U.S. 10-Year Treasury Note    Short    $   (26,559,009   $   (26,675,000   $ (115,991
9/12    194 U.S. 30-Year Treasury Bond    Short      (28,566,145     (28,705,938     (139,793
            

 

 

 
             $ (255,784 ) 
            

 

 

 

At June 30, 2012, the Fund had sufficient cash and/or securities to cover commitments under these 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 purchases and sells U.S. Treasury futures contracts to hedge against changes in interest rates.

At June 30, 2012, 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 $255,784.

The cost and unrealized appreciation (depreciation) of investments of the Fund at June 30, 2012, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

   $     246,282,404   
  

 

 

 

Gross unrealized appreciation

   $ 29,199,031   

Gross unrealized depreciation

     (4,466,737
  

 

 

 

Net unrealized appreciation

   $ 24,732,294   
  

 

 

 

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, 2012, 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

   $      $ 447,994,698       $       $ 447,994,698   

Total Investments

   $      $     447,994,698       $       $     447,994,698   
Liability Description                               

Futures Contracts

   $ (255,784   $       $       $ (255,784

Total

   $ (255,784   $       $       $ (255,784

The Fund held no investments or other financial instruments as of September 30, 2011 whose fair value was determined using Level 3 inputs. At June 30, 2012, 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/ Cynthia J. Clemson

  Cynthia J. Clemson
  President

Date: August 27, 2012

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/ Cynthia J. Clemson

  Cynthia J. Clemson
  President

Date: August 27, 2012

 

By:  

/s/ Barbara E. Campbell

  Barbara E. Campbell
  Treasurer

Date: August 27, 2012