Eaton Vance Pennsylvania 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

811-21227

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, 2012

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Pennsylvania Municipal Bond Fund

June 30, 2012

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 155.1%

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Education — 24.3%

      

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

    $ 1,050       $ 1,193,651   

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

      1,500         1,702,500   

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

      440         473,990   

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

      925         1,006,243   

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

      2,900         3,022,090   

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

      560         611,094   

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

      750         849,630   

University of Pittsburgh, 5.25%, 9/15/29

      500         582,840   

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

      575         630,424   
     

 

 

  
      $ 10,072,462   
     

 

 

  

Electric Utilities — 1.3%

      

Puerto Rico Electric Power Authority, 5.00%, 7/1/29

    $ 500       $ 523,450   
     

 

 

  
      $ 523,450   
     

 

 

  

General Obligations — 3.8%

      

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

    $ 1,000       $ 1,188,000   

Montgomery County, 5.00%, 3/15/20

      300         374,082   
     

 

 

  
      $ 1,562,082   
     

 

 

  

Hospital — 16.3%

      

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

    $ 750       $ 806,783   

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

      1,000         1,063,460   

Lehigh County General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32

      1,455         1,490,138   

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

      1,250         1,282,312   

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

      250         267,110   

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

      675         735,183   

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

      750         847,073   

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

      250         266,735   
     

 

 

  
      $ 6,758,794   
     

 

 

  

Insured-Education — 17.1%

      

Chester County Industrial Development Authority, Educational Facility, (Westtown School), (AMBAC), 5.00%, 1/1/31

    $ 1,000       $ 1,001,110   

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

      500         542,060   

 

1

 

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

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

    $ 1,665       $ 1,770,161   

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

      1,305         1,335,015   

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

      500         535,090   

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

      500         548,515   

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

      375         407,640   

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

      875         939,768   
     

 

 

  
      $ 7,079,359   
     

 

 

  

Insured-Electric Utilities — 1.9%

      

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

    $ 750       $ 789,705   
     

 

 

  
      $ 789,705   
     

 

 

  

Insured-General Obligations — 27.8%

      

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

    $ 1,250       $ 1,418,113   

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

      660         735,748   

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

      1,350         1,440,841   

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

      1,000         434,890   

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

      500         537,090   

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

      2,555         1,748,540   

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

      1,500         1,496,985   

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

      1,500         1,609,650   

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

      1,000         1,065,380   

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

      2,550         1,047,642   
     

 

 

  
      $ 11,534,879   
     

 

 

  

Insured-Hospital — 8.3%

      

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

    $ 250       $ 324,702   

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

      500         525,075   

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

      1,620         1,721,623   

Washington County Hospital Authority, (Washington Hospital), (AMBAC), 5.125%, 7/1/28

      865         865,285   
     

 

 

  
      $ 3,436,685   
     

 

 

  

Insured-Industrial Development Revenue — 2.6%

      

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

    $ 1,000       $ 1,101,050   
     

 

 

  
      $ 1,101,050   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 4.5%

      

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

    $ 500       $ 550,745   

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

      1,215         1,318,020   
     

 

 

  
      $ 1,868,765   
     

 

 

  

Insured-Special Tax Revenue — 3.1%

      

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

    $ 10,835       $ 917,399   

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

      2,450         368,015   
     

 

 

  
      $ 1,285,414   
     

 

 

  

 

2

 

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Insured-Transportation — 9.1%

      

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

    $ 295       $ 322,444   

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

      1,000         1,100,780   

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

      2,100         2,340,912   
     

 

 

  
      $ 3,764,136   
     

 

 

  

Insured-Utilities — 2.2%

      

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

    $ 890       $ 912,446   
     

 

 

  
      $ 912,446   
     

 

 

  

Insured-Water and Sewer — 13.2%

      

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

    $ 300       $ 327,849   

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

      1,500         1,679,175   

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

      500         549,880   

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

      1,920         925,421   

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

      1,430         731,888   

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

      2,155         1,102,951   

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

      150         156,814   
     

 

 

  
      $ 5,473,978   
     

 

 

  
Other Revenue — 3.0%      

Southeastern Pennsylvania Transportation Authority, Federal Grant Receipts, 5.00%, 6/1/27

    $ 1,100       $ 1,241,218   
     

 

 

  
      $ 1,241,218   
     

 

 

  
Senior Living/Life Care — 0.5%      

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

    $ 200       $ 207,482   
     

 

 

  
      $ 207,482   
     

 

 

  
Special Tax Revenue — 0.3%      

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

    $ 110       $ 128,938   
     

 

 

  
      $ 128,938   
     

 

 

  
Transportation — 12.5%      

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

    $ 1,500       $ 1,744,995   

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

      465         504,776   

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

      730         788,466   

Pennsylvania Turnpike Commission, 1.00%, 12/1/30

      500         465,035   

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

      1,000         1,117,690   

Philadelphia Airport, 5.25%, 6/15/27

      500         563,850   
     

 

 

  
      $ 5,184,812   
     

 

 

  
Water and Sewer — 3.3%      

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

    $ 500       $ 543,070   

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

      765         834,156   
     

 

 

  
      $ 1,377,226   
     

 

 

  

Total Tax-Exempt Investments — 155.1%
(identified cost $60,262,020)

       $ 64,302,881   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (52.4)%

       $  (21,725,327 ) 
     

 

 

  

Other Assets, Less Liabilities — (2.7)%

       $  (1,131,336 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 41,446,218   
     

 

 

  

 

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.

BHAC

   -   Berkshire Hathaway Assurance Corp.

CIFG

   -   CIFG Assurance North America, Inc.

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 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, 2012, 57.9% 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 ranged from 1.6% to 22.3% 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 June 30, 2012 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net  Unrealized
Depreciation		  
9/12    60 U.S. 30-Year Treasury Bond    Short    $     (8,834,890 )    $     (8,878,125 )    $     (43,235 ) 

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 $43,235.

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

    $      58,197,076   
  

 

 

  

Gross unrealized appreciation

    $ 4,532,726   

Gross unrealized depreciation

      (466,921 ) 
  

 

 

  

Net unrealized appreciation

    $ 4,065,805   
  

 

 

  

 

4

 

 

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

    $ —      $ 64,302,881       $ —       $ 64,302,881   

Total Investments

    $ —      $     64,302,881       $ —       $     64,302,881   
Liability Description                               

Futures Contracts

    $ (43,235 )    $ —       $ —       $ (43,235 ) 

Total

    $     (43,235 )    $ —       $ —       $ (43,235 ) 

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 Pennsylvania 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