Eaton Vance New Jersey 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

811-21229

Investment Company Act File Number

Eaton Vance New Jersey 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, 2014

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

New Jersey Municipal Bond Fund

December 31, 2014

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Municipal Securities — 150.2%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 5.7%

      

New Jersey Educational Facilities Authority, (Montclair State University), 5.00%, 7/1/33

    $ 340       $ 398,456   

New Jersey Educational Facilities Authority, (Montclair State University), 5.00%, 7/1/34

      210         245,536   

New Jersey Educational Facilities Authority, (Ramapo College), 5.00%, 7/1/37

      360         400,241   

New Jersey Institute of Technology, 5.00%, 7/1/42

      735         827,029   

Rutgers State University, 5.00%, 5/1/39

      250         281,148   
     

 

 

  
   $ 2,152,410   
     

 

 

  

Escrowed/Prerefunded — 0.7%

      

New Jersey Health Care Facilities Financing Authority, (Hunterdon Medical Center), Prerefunded to 7/1/16, 5.125%, 7/1/35

    $ 250       $ 267,745   
     

 

 

  
   $ 267,745   
     

 

 

  

General Obligations — 4.2%

      

Monmouth County Improvement Authority, 5.00%, 1/15/27

    $ 1,375       $ 1,588,482   
     

 

 

  
   $ 1,588,482   
     

 

 

  

Hospital — 14.9%

      

Camden County Improvement Authority, (Cooper Health System), 5.00%, 2/15/26

    $ 340       $ 390,724   

Camden County Improvement Authority, (Cooper Health System), 5.75%, 2/15/42

      250         288,885   

New Jersey Health Care Facilities Financing Authority, (Atlanticare Regional Medical Center), 5.00%, 7/1/37

      515         545,694   

New Jersey Health Care Facilities Financing Authority, (Barnabas Health Obligated Group),
4.25%, 7/1/44

      450         453,150   

New Jersey Health Care Facilities Financing Authority, (Meridian Health System),
5.00%, 7/1/26

      295         336,813   

New Jersey Health Care Facilities Financing Authority, (Palisades Medical Center),
5.25%, 7/1/31

      750         839,925   

New Jersey Health Care Facilities Financing Authority, (Robert Wood Johnson University Hospital), 5.00%, 7/1/34

      1,200         1,379,988   

New Jersey Health Care Facilities Financing Authority, (South Jersey Hospital),
5.00%, 7/1/46

      1,315         1,361,012   

New Jersey Health Care Facilities Financing Authority, (South Jersey Hospital), Prerefunded to 7/1/16, 5.00%, 7/1/46

      30         32,074   
     

 

 

  
   $ 5,628,265   
     

 

 

  

Housing — 2.7%

      

New Jersey Housing and Mortgage Finance Agency, (Single Family Housing),
4.375%, 4/1/28

    $ 940       $ 1,009,485   
     

 

 

  
   $ 1,009,485   
     

 

 

  

Insured-Education — 6.5%

      

New Jersey Educational Facilities Authority, (Rowan University), (AGM), (FGIC),
3.00%, 7/1/27

    $ 920       $ 921,656   

New Jersey Educational Facilities Authority, (William Paterson University), (AGC),
4.75%, 7/1/34

      1,145         1,245,474   

New Jersey Educational Facilities Authority, (William Paterson University), (AGC),
5.00%, 7/1/38

      275         301,829   
     

 

 

  
   $ 2,468,959   
     

 

 

  

Insured-Electric Utilities — 2.5%

      

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26

    $ 615       $ 618,961   

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/35

      335         333,958   
     

 

 

  
   $ 952,919   
     

 

 

  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Escrowed/Prerefunded — 4.8%

      

Lakewood Township, (AGC), Prerefunded to 11/1/18, 5.75%, 11/1/31

    $ 700       $ 824,474   

New Jersey Economic Development Authority, (School Facilities Construction), (AGC), Prerefunded to 12/15/18, 5.50%, 12/15/34

      840         981,775   
     

 

 

  
   $ 1,806,249   
     

 

 

  

Insured-General Obligations — 42.0%

      

Bayonne, (AGM), 0.00%, 7/1/23

    $ 2,415       $ 1,922,726   

Bayonne, (AGM), 5.50%, 7/1/39

      1,000         1,133,100   

Delaware Township, Hunterdon County, (AGC), 5.00%, 10/15/35

      320         357,024   

Delaware Township, Hunterdon County, (AGC), 5.10%, 10/15/36

      340         380,521   

Delaware Township, Hunterdon County, (AGC), 5.15%, 10/15/37

      360         403,535   

Delaware Township, Hunterdon County, (AGC), 5.20%, 10/15/38

      382         428,711   

Hudson County Improvement Authority, (Harrison Parking), (AGC), 5.25%, 1/1/39

      1,500         1,680,675   

Hudson County Improvement Authority, (Harrison Redevelopment), (NPFG),
0.00%, 12/15/38

      2,000         760,020   

Irvington Township, (AGM), 0.00%, 7/15/26

      5,235         3,549,435   

Jackson Township School District, (NPFG), 2.50%, 6/15/27

      2,310         2,222,613   

Jersey City, (AGM), 5.00%, 1/15/29

      1,000         1,110,910   

Monroe Township Board of Education, Middlesex County, (AGC), 4.75%, 3/1/34

      1,015         1,069,343   

Nutley School District, (NPFG), 4.75%, 7/15/30

      110         115,871   

Nutley School District, (NPFG), 4.75%, 7/15/31

      410         431,365   

Paterson, (BAM), 5.00%, 1/15/26

      250         284,967   
     

 

 

  
   $ 15,850,816   
     

 

 

  

Insured-Hospital — 9.2%

      

New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), (AGC), 5.25%, 1/1/36

    $ 1,250       $ 1,369,062   

New Jersey Health Care Facilities Financing Authority, (Meridian Health System),
Series II, (AGC), 5.00%, 7/1/38

      170         181,246   

New Jersey Health Care Facilities Financing Authority, (Meridian Health System),
Series V, (AGC), 5.00%, 7/1/38(1)

      250         266,537   

New Jersey Health Care Facilities Financing Authority, (Virtua Health), (AGC),
5.50%, 7/1/38

      1,500         1,670,460   
     

 

 

  
   $ 3,487,305   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 7.6%

      

Essex County Improvement Authority, (NPFG), 5.50%, 10/1/30

    $ 1,000       $ 1,330,570   

New Jersey Economic Development Authority, (School Facilities Construction), (AGC),
5.50%, 12/15/34

      460         520,035   

New Jersey Economic Development Authority, (School Facilities Construction), (AGM),
5.00%, 6/15/33

      360         407,016   

New Jersey Economic Development Authority, (School Facilities Construction), (NPFG),
5.50%, 9/1/28

      500         626,795   
     

 

 

  
   $ 2,884,416   
     

 

 

  

Insured-Special Tax Revenue — 12.8%

      

Garden State Preservation Trust, (AGM), 0.00%, 11/1/21

    $ 1,000       $ 867,740   

Garden State Preservation Trust, (AGM), Prerefunded to 11/1/15, 5.80%, 11/1/21

      500         523,290   

New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (BHAC), (NPFG), 5.00%, 7/1/27

      975         978,724   

New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA),
0.00%, 7/1/26

      2,380         1,588,840   

New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA),
0.00%, 7/1/27

      1,120         708,266   

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

      1,105         155,076   
     

 

 

  
      $ 4,821,936   
     

 

 

  

Insured-Transportation — 7.7%

      

New Jersey Turnpike Authority, (AGM), (BHAC), 5.25%, 1/1/29

    $ 1,500       $ 1,908,210   

Port Authority of New York and New Jersey, (AGM), 5.00%, 8/15/33

      720         788,832   

South Jersey Transportation Authority, (AGC), 5.50%, 11/1/33

      180         206,109   
     

 

 

  
      $ 2,903,151   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Water and Sewer — 10.2%

      

Middlesex County Improvement Authority, (Perth Amboy), (AMBAC), 0.00%, 9/1/24

    $ 4,500       $ 3,289,860   

Passaic Valley Sewerage Commissioners, (NPFG), 2.50%, 12/1/32

      635         546,773   
     

 

 

  
      $ 3,836,633   
     

 

 

  

Lease Revenue/Certificates of Participation — 1.7%

      

New Jersey Health Care Facilities Financing Authority, (Hospital Asset Transformation Program), 5.25%, 10/1/38

    $ 600       $ 644,208   
     

 

 

  
      $ 644,208   
     

 

 

  

Senior Living/Life Care — 1.9%

      

New Jersey Economic Development Authority, (United Methodist Homes of New Jersey),
5.00%, 7/1/34

    $ 675       $ 726,260   
     

 

 

  
      $ 726,260   
     

 

 

  

Student Loan — 2.9%

      

New Jersey Higher Education Student Assistance Authority, 5.625%, 6/1/30

    $ 965       $ 1,088,617   
     

 

 

  
      $ 1,088,617   
     

 

 

  

Transportation — 10.0%

      

Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/35

    $ 590       $ 658,422   

Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/40

      210         232,989   

New Jersey Transportation Trust Fund Authority, (Transportation Program), 5.25%, 6/15/30

      610         693,997   

New Jersey Transportation Trust Fund Authority, (Transportation System), 0.00%, 12/15/26

      1,000         613,460   

New Jersey Transportation Trust Fund Authority, (Transportation System), 5.50%, 6/15/31

      1,150         1,337,726   

South Jersey Transportation Authority, 5.00%, 11/1/39

      200         218,584   
     

 

 

  
      $ 3,755,178   
     

 

 

  

Water and Sewer — 2.2%

      

North Hudson Sewerage Authority, 5.00%, 6/1/29

    $ 725       $ 826,188   
     

 

 

  
      $ 826,188   
     

 

 

  

Total Tax-Exempt Municipal Securities — 150.2%
(identified cost $50,197,043)

       $ 56,699,222   
     

 

 

  

Taxable Municipal Securities — 1.4%

      
Security   

Principal
Amount

(000’s omitted)

      Value  

Transportation — 1.4%

      

Port Authority of New York and New Jersey, 4.458%, 10/1/62

    $ 500       $ 529,420   
     

 

 

  

Total Taxable Municipal Securities — 1.4%
(identified cost $494,567)

       $ 529,420   
     

 

 

  

Total Investments — 151.6%
(identified cost $50,691,610)

       $ 57,228,642   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (51.9)%

  

    $ (19,600,119 ) 
     

 

 

  

Other Assets, Less Liabilities — 0.3%

  

    $ 126,265   
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

  

    $ 37,754,788   
     

 

 

  

 

3

 

 

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

 

AGC

   -   Assured Guaranty Corp.

AGM

   -   Assured Guaranty Municipal Corp.

AMBAC

   -   AMBAC Financial Group, Inc.

BAM

   -   Build America Mutual Assurance Co.

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 New Jersey 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, 2014, 68.2% 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 0.5% to 22.9% of total investments.

 

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

A summary of open financial instruments at December 31, 2014 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Depreciation		  
3/15    40 U.S. Long Treasury Bond    Short    $     (5,624,963 )    $     (5,782,500 )    $     (157,537 ) 

At December 31, 2014, 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 December 31, 2014, 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 $157,537.

The cost and unrealized appreciation (depreciation) of investments of the Fund at December 31, 2014, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     50,381,157   
  

 

 

  

Gross unrealized appreciation

    $ 6,729,300   

Gross unrealized depreciation

      (106,815 ) 
  

 

 

  

Net unrealized appreciation

    $ 6,622,485   
  

 

 

  

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 December 31, 2014, 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 Municipal Securities

    $ —       $     56,699,222       $ —       $ 56,699,222   

Taxable Municipal Securities

      —         529,420         —         529,420   

Total Investments

    $ —       $ 57,228,642       $ —       $     57,228,642   
Liability Description                                

Futures Contracts

    $ (157,537 )     $ —       $ —       $ (157,537 ) 

Total

    $     (157,537 )     $ —       $ —       $ (157,537 ) 

The Fund held no investments or other financial instruments as of September 30, 2014 whose fair value was determined using Level 3 inputs. At December 31, 2014, 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 New Jersey Municipal Bond Fund

 

By:  

/s/ Payson F. Swaffield

  Payson F. Swaffield
  President
Date:   February 23, 2015

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 23, 2015

 

By:  

/s/ James F. Kirchner

  James F. Kirchner
  Treasurer
Date:   February 23, 2015