Eaton Vance Pennsylvania Muncipal 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

811-21227

Investment Company Act File Number

Eaton Vance Pennsylvania 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, 2014

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Pennsylvania Municipal Bond Fund

June 30, 2014

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 159.1%

 

                                                 
Security   

Principal
Amount

(000’s omitted)

      Value  

Education — 27.8%

      

Allegheny County Higher Education Building Authority, (Duquesne University), 5.50%, 3/1/31

    $ 1,050       $ 1,178,877   

Bucks County Industrial Development Authority, (George School), 5.00%, 9/15/41

      640         690,714   

Bucks County Industrial Development Authority, (George School), 5.00%, 9/15/44

      250         271,190   

General Authority of Southcentral Pennsylvania, (York College of Pennsylvania), 5.50%, 11/1/31

      1,500         1,669,830   

Northampton County General Purpose Authority, (Lafayette College), 5.00%, 11/1/32

      750         853,957   

Pennsylvania Higher Educational Facilities Authority, (Saint Joseph’s University), 5.00%, 11/1/40

      440         460,750   

Pennsylvania Higher Educational Facilities Authority, (Thomas Jefferson University), 5.00%, 3/1/40

      925         983,275   

Pennsylvania Higher Educational Facilities Authority, (University of Pennsylvania), 4.75%, 7/15/35

      2,900         2,998,832   

Pennsylvania Higher Educational Facilities Authority, (Ursinus College), 5.00%, 1/1/29

      560         607,505   

State Public School Building Authority, (Northampton County Area Community College), 5.50%, 3/1/31

      750         833,077   

Swarthmore Borough Authority, (Swarthmore College), 5.00%, 9/15/38

      250         280,440   

Washington County Industrial Development Authority, (Washington and Jefferson College), 5.25%, 11/1/30

      575         623,726   
     

 

 

  
   $ 11,452,173   
     

 

 

  

General Obligations — 12.7%

      

Delaware Valley Regional Finance Authority, 5.75%, 7/1/32

    $ 1,000       $ 1,193,720   

Pennsylvania, 4.00%, 4/1/29(1)(2)

      3,000         3,187,740   

West York Area School District, 5.00%, 4/1/33

      750         836,242   
     

 

 

  
   $ 5,217,702   
     

 

 

  

Hospital — 15.2%

      

Chester County Health and Education Facilities Authority, (Jefferson Health System), 5.00%, 5/15/40

    $ 750       $ 794,730   

Franklin County Industrial Development Authority, (The Chambersburg Hospital), 5.375%, 7/1/42

      1,000         1,059,600   

Lehigh County General Purpose Authority, (Lehigh Valley Health Network), 4.00%, 7/1/33

      500         512,400   

Monroe County Hospital Authority, (Pocono Medical Center), 5.125%, 1/1/37

      1,250         1,281,975   

Monroeville Finance Authority, (UPMC Obligated Group), 5.00%, 2/15/42

      500         533,655   

Northampton County General Purpose Authority, (Saint Luke’s Hospital), 5.50%, 8/15/33

      250         267,518   

Pennsylvania Higher Educational Facilities Authority, (UPMC Health System), 5.00%, 5/15/31

      675         726,280   

Philadelphia Hospitals and Higher Education Facilities Authority, 5.00%, 7/1/32

      750         828,645   

South Fork Municipal Authority, (Conemaugh Health System), 5.50%, 7/1/29

      250         271,362   
     

 

 

  
   $ 6,276,165   
     

 

 

  

Housing — 1.7%

      

East Hempfield Township Industrial Development Authority, (Student Services, Inc.), 5.00%, 7/1/39

    $ 175       $ 179,291   

Pennsylvania Housing Finance Agency, SFMR, 4.00%, 10/1/38

      500         502,950   
     

 

 

  
   $ 682,241   
     

 

 

  

 

1

 

 

                                                 
Security   

Principal
Amount

(000’s omitted)

      Value  

Insured-Education — 13.6%

  

Lycoming County Authority, (Pennsylvania College of Technology), (AGC), 5.50%, 10/1/37

    $ 500       $ 533,130   

Pennsylvania Higher Educational Facilities Authority, (Drexel University), (NPFG), 5.00%, 5/1/37

      1,530         1,641,889   

Pennsylvania Higher Educational Facilities Authority, (Temple University), (NPFG), 4.50%, 4/1/36

      1,000         1,027,030   

Pennsylvania Higher Educational Facilities Authority, (University of the Sciences in Philadelphia), (AGC), 5.00%, 11/1/37

      500         522,230   

State Public School Building Authority, (Delaware County Community College), (AGM), 5.00%, 10/1/27

      500         532,200   

State Public School Building Authority, (Delaware County Community College), (AGM), 5.00%, 10/1/29

      375         396,698   

State Public School Building Authority, (Delaware County Community College), (AGM), 5.00%, 10/1/32

      875         956,182   
     

 

 

  
   $ 5,609,359   
     

 

 

  

Insured-Electric Utilities — 2.9%

      

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

    $ 490       $ 471,801   

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

      750         718,710   
     

 

 

  
   $ 1,190,511   
     

 

 

  

Insured-Escrowed/Prerefunded — 1.2%

      

Centre County Hospital Authority, (Mount Nittany Medical Center), (AGC), Prerefunded to 11/15/14, 6.25%, 11/15/44

    $ 500       $ 511,285   
     

 

 

  
   $ 511,285   
     

 

 

  

Insured-General Obligations — 30.1%

      

Bethlehem Area School District, (AGM), 5.25%, 1/15/25

    $ 1,250       $ 1,402,212   

Centennial School District, (AGM), 5.25%, 12/15/37

      660         748,975   

Central Greene School District, (AGM), 5.00%, 2/15/35

      1,000         1,090,200   

Erie School District, (AMBAC), 0.00%, 9/1/30

      1,000         501,830   

Harrisburg School District, (AGC), 5.00%, 11/15/33

      500         525,200   

Laurel Highlands School District, (AGM), 5.00%, 2/1/37

      750         817,080   

McKeesport School District, (NPFG), 0.00%, 10/1/21

      2,555         2,009,712   

Norwin School District, (AGM), 3.25%, 4/1/27

      1,475         1,460,515   

Reading School District, (AGM), 5.00%, 3/1/35

      1,500         1,635,630   

Scranton School District, (AGM), 5.00%, 7/15/38

      1,000         1,031,200   

Shaler Area School District, (XLCA), 0.00%, 9/1/33

      2,550         1,158,159   
     

 

 

  
   $ 12,380,713   
     

 

 

  

Insured-Hospital — 4.9%

      

Allegheny County Hospital Development Authority, (UPMC Health System), (NPFG), 6.00%, 7/1/24

    $ 250       $ 314,523   

Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (AGM), 5.00%, 7/1/35

      1,620         1,703,025   
     

 

 

  
   $ 2,017,548   
     

 

 

  

Insured-Industrial Development Revenue — 2.7%

      

Pennsylvania Economic Development Financing Authority, (Aqua Pennsylvania, Inc.), (BHAC), 5.00%, 10/1/39(1)

    $ 1,000       $ 1,100,210   
     

 

 

  
   $ 1,100,210   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 4.4%

  

Commonwealth Financing Authority, (AGC), 5.00%, 6/1/31

    $ 500       $ 548,045   

Philadelphia Authority for Industrial Development, (One Benjamin Franklin), (AGM), 4.75%, 2/15/27

      1,215         1,264,876   
     

 

 

  
   $ 1,812,921   
     

 

 

  

Insured-Special Tax Revenue — 3.1%

      

Pittsburgh and Allegheny County Sports & Exhibition Authority, Sales Tax Revenue, (AGM), 5.00%, 2/1/31

    $ 1,000       $ 1,085,260   

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

      1,295         171,523   
     

 

 

  
   $ 1,256,783   
     

 

 

  

 

2

 

 

                                                 
Security   

Principal
Amount

(000’s omitted)

      Value  

Insured-Transportation — 5.7%

      

Philadelphia, Airport Revenue, (AGC), 5.375%, 6/15/29

    $ 295       $ 326,465   

Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41

      2,100         2,040,969   
     

 

 

  
   $ 2,367,434   
     

 

 

  

Insured-Utilities — 2.4%

      

Philadelphia Gas Works, (AMBAC), 5.00%, 10/1/37

    $ 890       $ 976,161   
     

 

 

  
   $ 976,161   
     

 

 

  

Insured-Water and Sewer — 14.1%

      

Allegheny County Sanitation Authority, (BHAC), (FGIC), 5.00%, 12/1/32

    $ 300       $ 325,620   

Allegheny County Sanitation Authority, (BHAC), (NPFG), 5.00%, 12/1/22

      1,500         1,596,045   

Bucks County Water and Sewer Authority, (AGM), 5.00%, 12/1/35

      500         543,520   

Erie Sewer Authority, Series A, (AMBAC), 0.00%, 12/1/25

      1,430         840,726   

Erie Sewer Authority, Series B, (AMBAC), 0.00%, 12/1/25

      2,155         1,266,967   

Erie Sewer Authority, Series B, (AMBAC), 0.00%, 12/1/26

      1,920         1,064,410   

Saxonburg Water and Sewer Authority, (AGC), 5.00%, 3/1/35

      150         157,483   
     

 

 

  
   $ 5,794,771   
     

 

 

  

Senior Living/Life Care — 0.5%

      

Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/24

    $ 200       $ 205,704   
     

 

 

  
   $ 205,704   
     

 

 

  

Special Tax Revenue — 4.5%

      

Allegheny County Port Authority, 5.75%, 3/1/29

    $ 1,500       $ 1,715,910   

Virgin Islands Public Finance Authority, 6.75%, 10/1/37

      110         122,268   
     

 

 

  
   $ 1,838,178   
     

 

 

  

Transportation — 8.3%

      

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

    $ 465       $ 499,275   

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

      730         775,180   

Pennsylvania Turnpike Commission, 5.25%, 12/1/31

      1,000         1,104,170   

Pennsylvania Turnpike Commission, 5.35%, (0.00% until 12/1/15), 12/1/30

      500         508,490   

Philadelphia Airport, 5.25%, 6/15/27

      500         551,140   
     

 

 

  
   $ 3,438,255   
     

 

 

  

Water and Sewer — 3.3%

      

Philadelphia, Water and Wastewater Revenue, 5.00%, 1/1/36

    $ 500       $ 539,810   

Philadelphia, Water and Wastewater Revenue, 5.25%, 1/1/32

      765         826,445   
     

 

 

  
   $ 1,366,255   
     

 

 

  

Total Tax-Exempt Investments — 159.1%
(identified cost $61,501,575)

       $ 65,494,369   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (52.8)%

  

    $ (21,725,313 ) 
     

 

 

  

Other Assets, Less Liabilities — (6.3)%

  

    $ (2,608,870 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

  

    $ 41,160,186   
     

 

 

  

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.

 

3

 

 

BHAC

   -   Berkshire Hathaway Assurance Corp.

CIFG

   -   CIFG Assurance North America, Inc.

FGIC

   -   Financial Guaranty Insurance Company

NPFG

   -   National Public Finance Guaranty Corp.

SFMR

   -   Single Family Mortgage Revenue

XLCA

   -   XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by Pennsylvania 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, 2014, 53.5% 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 22.4% of total investments.

 

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

 

(2) Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $787,740.

A summary of open financial instruments at June 30, 2014 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Depreciation		  
9/14    55 U.S. Long Treasury Bond    Short    $     (7,489,352 )    $     (7,545,312 )    $     (55,960 ) 

At June 30, 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 June 30, 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 $55,960.

The cost and unrealized appreciation (depreciation) of investments of the Fund at June 30, 2014, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     57,715,191   
  

 

 

  

Gross unrealized appreciation

    $ 4,560,753   

Gross unrealized depreciation

      (171,575 ) 
  

 

 

  

Net unrealized appreciation

    $ 4,389,178   
  

 

 

  

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, 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 Investments

    $     —      $     65,494,369       $     —       $     65,494,369   

Total Investments

    $     —      $     65,494,369       $     —       $ 65,494,369   
Liability Description                               

Futures Contracts

    $     (55,960 )    $     —       $     —       $ (55,960 ) 

Total

    $     (55,960 )    $     —       $     —       $ (55,960 ) 

The Fund held no investments or other financial instruments as of September 30, 2013 whose fair value was determined using Level 3 inputs. At June 30, 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 Pennsylvania Municipal Bond Fund

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   August 25, 2014

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 25, 2014

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   August 25, 2014