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

December 31, 2014

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Pennsylvania Municipal Bond Fund

December 31, 2014

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 156.9%

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Education — 26.8%

      

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

    $ 1,050       $ 1,197,693   

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

      390         429,694   

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

      250         278,415   

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

      1,500         1,705,965   

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

      750         874,793   

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

      440         482,535   

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

      925         998,870   

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

      2,900         2,958,899   

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

      560         621,102   

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

      750         877,117   

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

      250         290,230   

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

      575         654,367   
     

 

 

  
      $ 11,369,680   
     

 

 

  

General Obligations — 12.6%

      

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

    $ 1,000       $ 1,267,590   

Pennsylvania, 4.00%, 4/1/29(1)(2)

      3,000         3,241,620   

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

      750         859,170   
     

 

 

  
      $ 5,368,380   
     

 

 

  

Hospital — 15.3%

      

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

    $ 750       $ 813,998   

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

      1,000         1,111,560   

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

      500         521,395   

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

      1,250         1,301,312   

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

      500         551,360   

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

      250         277,325   

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

      675         752,672   

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

      750         850,057   

South Fork Municipal Authority, (Conemaugh Health System), Prerefunded to
7/1/20, 5.50%, 7/1/29

      250         302,828   
     

 

 

  
      $ 6,482,507   
     

 

 

  

Housing — 1.7%

      

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

    $ 175       $ 186,319   

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

      500         516,305   
     

 

 

  
      $ 702,624   
     

 

 

  

 

1

 

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Insured-Education — 13.4%

      

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

    $ 500       $ 552,710   

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

      1,530         1,664,303   

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

      1,000         1,037,120   

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

      500         529,885   

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

      500         555,145   

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

      375         412,680   

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

      875         955,019   
     

 

 

  
      $ 5,706,862   
     

 

 

  

Insured-Electric Utilities — 2.9%

      

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

    $ 490       $ 488,520   

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

      750         747,668   
     

 

 

  
      $ 1,236,188   
     

 

 

  

Insured-General Obligations — 30.2%

      

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

    $ 1,250       $ 1,438,550   

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

      660         746,341   

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

      1,000         1,090,830   

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

      1,000         545,170   

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

      500         545,450   

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

      750         841,335   

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

      2,555         2,094,998   

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

      1,475         1,476,622   

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

      1,500         1,654,275   

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

      1,000         1,069,860   

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

      2,550         1,302,872   
     

 

 

  
      $ 12,806,303   
     

 

 

  

Insured-Hospital — 4.9%

      

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

    $ 250       $ 315,732   

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

      1,620         1,746,263   
     

 

 

  
      $ 2,061,995   
     

 

 

  

Insured-Industrial Development Revenue — 2.7%

      

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

    $ 1,000       $ 1,135,390   
     

 

 

  
      $ 1,135,390   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 4.3%

      

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

    $ 500       $ 557,110   

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

      1,215         1,288,204   
     

 

 

  
   $ 1,845,314   
     

 

 

  

Insured-Special Tax Revenue — 3.1%

      

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

    $ 1,000       $ 1,126,730   

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

      1,295         181,740   
     

 

 

  
   $ 1,308,470   
     

 

 

  

 

2

 

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Insured-Transportation — 5.8%

      

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

    $ 295       $ 322,931   

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

      2,100         2,137,821   
     

 

 

  
   $ 2,460,752   
     

 

 

  

Insured-Utilities — 2.3%

      

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

    $ 890       $ 970,759   
     

 

 

  
   $ 970,759   
     

 

 

  

Insured-Water and Sewer — 14.2%

      

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

    $ 300       $ 323,670   

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

      1,500         1,563,645   

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

      500         559,755   

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

      1,430         907,578   

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

      2,155         1,367,714   

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

      1,920         1,152,730   

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

      150         156,409   
     

 

 

  
   $ 6,031,501   
     

 

 

  

Senior Living/Life Care — 0.5%

      

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

    $ 200       $ 205,334   
     

 

 

  
   $ 205,334   
     

 

 

  

Special Tax Revenue — 4.5%

      

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

    $ 1,500       $ 1,781,190   

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

      110         126,343   
     

 

 

  
   $ 1,907,533   
     

 

 

  

Transportation — 8.4%

      

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

    $ 465       $ 518,926   

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

      730         809,913   

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

      1,000         1,131,240   

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

      500         533,455   

Philadelphia Airport, 5.25%, 6/15/27

      500         569,770   
     

 

 

  
   $ 3,563,304   
     

 

 

  

Water and Sewer — 3.3%

      

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

    $ 500       $ 562,190   

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

      765         852,478   
     

 

 

  
   $ 1,414,668   
     

 

 

  

Total Tax-Exempt Investments — 156.9%
(identified cost $60,883,324)

       $ 66,577,564   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (51.2)%

  

    $ (21,725,432 ) 
     

 

 

  

Other Assets, Less Liabilities — (5.7)%

  

    $ (2,427,966 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

  

    $ 42,424,166   
     

 

 

  

 

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.

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 December 31, 2014, 53.4% 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 22.5% 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 $841,620.

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    50 U.S. Long Treasury Bond    Short    $     (7,031,204 )    $     (7,228,125 )    $     (196,921 ) 

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 $196,921.

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

    $     57,304,599   
  

 

 

  

Gross unrealized appreciation

    $ 5,986,730   

Gross unrealized depreciation

      (103,765 ) 
  

 

 

  

Net unrealized appreciation

    $ 5,882,965   
  

 

 

  

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 Investments

    $ —       $     66,577,564       $ —       $     66,577,564   

Total Investments

    $ —       $ 66,577,564       $ —       $ 66,577,564   
Liability Description                                

Futures Contracts

    $     (196,921 )     $ —       $ —       $ (196,921 ) 

Total

    $ (196,921 )     $ —       $     —       $ (196,921 ) 

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 Pennsylvania 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