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

June 30, 2017

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

New Jersey Municipal Bond Fund

June 30, 2017

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 159.9%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 4.8%

      

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

    $ 340      $ 387,036  

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

      210        238,195  

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

      360        396,554  

New Jersey Educational Facilities Authority, (Ramapo College), 5.00%, 7/1/40

      690        773,455  
     

 

 

  
      $ 1,795,240  
     

 

 

  

Escrowed/Prerefunded — 6.6%

      

Monmouth County Improvement Authority, Prerefunded to 1/15/21, 5.00%, 1/15/27

    $ 1,115      $ 1,264,198  

New Jersey Health Care Facilities Financing Authority, (Hospital Asset Transformation Program), Prerefunded to 10/1/18, 5.25%, 10/1/38

      135        142,297  

New Jersey Health Care Facilities Financing Authority, (Palisades Medical Center), Prerefunded to 7/1/23, 5.25%, 7/1/31

      615        745,749  

North Hudson Sewerage Authority, Prerefunded to 6/1/22, 5.00%, 6/1/29

      30        35,157  

Rutgers State University, Prerefunded to 5/1/19, 5.00%, 5/1/39

      250        268,273  
     

 

 

  
      $ 2,455,674  
     

 

 

  

General Obligations — 1.5%

      

Jersey City, 4.00%, 11/1/35(1)

    $ 250      $ 263,822  

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

      260        290,662  
     

 

 

  
      $ 554,484  
     

 

 

  

Hospital — 13.3%

      

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

    $ 250      $ 281,883  

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

      450        471,942  

New Jersey Health Care Facilities Financing Authority, (Hackensack Meridian Health Obligated Group), 4.00%, 7/1/34

      500        522,665  

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

      295        335,657  

New Jersey Health Care Facilities Financing Authority, (Palisades Medical Center), Prerefunded to 7/1/23, 5.25%, 7/1/31

      135        163,528  

New Jersey Health Care Facilities Financing Authority, (Princeton HealthCare System), 5.00%, 7/1/32

      400        460,664  

New Jersey Health Care Facilities Financing Authority, (Princeton HealthCare System), 5.00%, 7/1/39

      1,085        1,222,252  

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

      700        788,305  

New Jersey Health Care Facilities Financing Authority, (RWJ Barnabas Health Obligated Group), 4.00%, 7/1/35

      675        704,585  
     

 

 

  
      $ 4,951,481  
     

 

 

  

Housing — 2.6%

      

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

    $ 925      $ 979,279  
     

 

 

  
      $ 979,279  
     

 

 

  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Education — 2.6%

      

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

    $ 865      $ 865,251  

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

      85        87,735  

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

      20        20,712  
     

 

 

  
      $ 973,698  
     

 

 

  

Insured-Electric Utilities — 2.7%

      

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

    $ 615      $ 665,387  

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

      335        356,373  
     

 

 

  
      $ 1,021,760  
     

 

 

  

Insured-Escrowed/Prerefunded — 23.8%

      

Bayonne, (AGM), Prerefunded to 7/1/19, 5.50%, 7/1/39

    $ 1,000      $ 1,089,010  

Delaware Township, Hunterdon County, (AGC), Prerefunded to 10/15/18,
5.00%, 10/15/35

      320        336,842  

Delaware Township, Hunterdon County, (AGC), Prerefunded to 10/15/18,
5.10%, 10/15/36

      340        358,329  

Delaware Township, Hunterdon County, (AGC), Prerefunded to 10/15/18,
5.15%, 10/15/37

      360        379,638  

Delaware Township, Hunterdon County, (AGC), Prerefunded to 10/15/18,
5.20%, 10/15/38

      382        403,082  

Jersey City, (AGM), Prerefunded to 1/15/19, 5.00%, 1/15/29

      1,000        1,061,770  

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

      700        744,849  

Monroe Township Board of Education, Middlesex County, (AGC), Prerefunded to 3/1/18,
4.75%, 3/1/34

      1,015        1,040,943  

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

      450        479,799  

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

      840        895,625  

New Jersey Educational Facilities Authority, (William Paterson University), (AGC), Prerefunded to 7/1/18, 4.75%, 7/1/34

      1,060        1,100,757  

New Jersey Educational Facilities Authority, (William Paterson University), (AGC), Prerefunded to 7/1/18, 5.00%, 7/1/38

      255        265,440  

New Jersey Health Care Facilities Financing Authority, (Meridian Health System), Series II, (AGC), Prerefunded to 7/1/18, 5.00%, 7/1/38

      170        176,907  

Nutley School District, (NPFG), Prerefunded to 7/15/17, 4.75%, 7/15/30

      110        110,185  

Nutley School District, (NPFG), Prerefunded to 7/15/17, 4.75%, 7/15/31

      410        410,689  
     

 

 

  
      $ 8,853,865  
     

 

 

  

Insured-General Obligations — 24.5%

      

Atlantic City, (BAM), 5.00%, 3/1/37

    $ 500      $ 558,875  

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

      2,415        2,088,468  

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

      1,500        1,583,505  

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

      2,000        881,440  

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

      5,235        4,001,529  
     

 

 

  
      $ 9,113,817  
     

 

 

  

Insured-Hospital — 4.3%

      

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

    $ 1,500      $ 1,620,420  
     

 

 

  
      $ 1,620,420  
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Lease Revenue/Certificates of Participation — 6.0%

      

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

    $ 1,000      $ 1,311,140  

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

      290        318,345  

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

      500        593,120  
     

 

 

  
      $ 2,222,605  
     

 

 

  

Insured-Special Tax Revenue — 14.1%

      

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

    $ 1,000      $ 906,430  

Garden State Preservation Trust, (AGM), 5.75%, 11/1/28

      500        609,655  

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

      975        978,218  

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

      2,380        1,753,893  

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

      1,120        787,707  

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

      1,105        219,508  
     

 

 

  
      $ 5,255,411  
     

 

 

  

Insured-Transportation — 9.6%

      

New Jersey Transportation Trust Fund Authority, (Transportation System), (AMBAC), 0.00%, 12/15/28

    $ 1,200      $ 745,992  

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

      1,500        1,899,840  

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

      720        723,658  

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

      180        194,632  
     

 

 

  
      $ 3,564,122  
     

 

 

  

Insured-Water and Sewer — 11.4%

      

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

    $ 4,500      $ 3,694,005  

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

      635        556,343  
     

 

 

  
      $ 4,250,348  
     

 

 

  

Lease Revenue/Certificates of Participation — 1.3%

      

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

    $ 465      $ 474,347  
     

 

 

  
      $ 474,347  
     

 

 

  

Senior Living/Life Care — 1.9%

      

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

    $ 675      $ 715,135  
     

 

 

  
      $ 715,135  
     

 

 

  

Student Loan — 2.8%

      

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

    $ 965      $ 1,031,903  
     

 

 

  
      $ 1,031,903  
     

 

 

  

Transportation — 22.8%

      

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

    $ 590      $ 639,170  

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

      210        227,340  

New Jersey Transportation Trust Fund Authority, 5.00%, 6/15/29

      750        765,840  

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

      1,150        1,206,971  

Port Authority of New York and New Jersey, 5.00%, 10/15/35(2)

      2,675        3,116,268  

Port Authority of New York and New Jersey, 5.00%, 10/15/41(2)

      2,000        2,313,880  

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

      200        218,442  
     

 

 

  
      $ 8,487,911  
     

 

 

  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Water and Sewer — 3.3%

      

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

    $ 695      $ 765,591  

Sussex County Municipal Utilities Authority, 0.00%, 12/1/37

      1,000        472,070  
     

 

 

  
      $ 1,237,661  
     

 

 

  

Total Tax-Exempt Investments — 159.9%
(identified cost $54,699,686)

       $ 59,559,161  
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (6.0)%

       $ (2,225,356 ) 
     

 

 

  

Institutional MuniFund Term Preferred Shares, at Liquidation Value
(net of unamortized deferred offering costs) — (46.4)%

       $ (17,287,910 ) 
     

 

 

  

Other Assets, Less Liabilities — (7.5)%

       $ (2,791,742 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 37,254,153  
     

 

 

  

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

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 June 30, 2017, 61.9% 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 0.9% to 22.8% of total investments.

 

(1) When-issued security.

 

(2) 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. Long Treasury Bond      14      Short    Sep-17    $     (2,128,859 )    $     (2,151,625 )    $ (22,766 ) 
               

 

 

  
  $     (22,766 ) 
               

 

 

  

Abbreviations:

 

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.
 

 

At June 30, 2017, the Fund had sufficient cash and/or securities to cover commitments under open derivative contracts.

 

4

 

 

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, 2017, 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 $22,766.

The cost and unrealized appreciation (depreciation) of investments of the Fund at June 30, 2017, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     50,863,551  
  

 

 

  

Gross unrealized appreciation

    $ 5,188,352  

Gross unrealized depreciation

      (232,742 ) 
  

 

 

  

Net unrealized appreciation

    $ 4,955,610  
  

 

 

  

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, 2017, 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

    $ —      $ 59,559,161      $ —      $ 59,559,161  

Total Investments

    $ —      $     59,559,161      $     —      $     59,559,161  
Liability Description                        

Futures Contracts

    $ (22,766 )     $ —      $ —      $ (22,766 ) 

Total

    $     (22,766 )     $ —      $ —      $ (22,766 ) 

The Fund held no investments or other financial instruments as of September 30, 2016 whose fair value was determined using Level 3 inputs. At June 30, 2017, 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.

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 New Jersey Municipal Bond Fund

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   August 24, 2017

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 24, 2017
By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   August 24, 2017