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, 2017

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Pennsylvania Municipal Bond Fund

June 30, 2017

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 153.9%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 31.0%

 

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

    $ 390      $ 435,256  

Delaware County Authority, (Villanova University), 5.00%, 8/1/35

      750        854,663  

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

      1,500        1,700,040  

Lehigh County General Purpose Authority, (Muhlenberg College), 5.00%, 2/1/31

      755        883,395  

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

      750        872,580  

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/24

      95        109,487  

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/25

      135        156,636  

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/26

      285        332,310  

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/27

      185        213,884  

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/30

      270        305,640  

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/31

      230        258,798  

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/40

      610        671,122  

Northeastern Pennsylvania Hospital and Education Authority, (Wilkes University), 5.00%, 3/1/26

      670        771,900  

Pennsylvania Higher Educational Facilities Authority, (Drexel University), 5.00%, 5/1/34

      530        605,530  

Pennsylvania Higher Educational Facilities Authority, (Saint Joseph’s University), 4.25%, 11/1/34

      1,740        1,787,311  

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

      440        482,354  

Pennsylvania State University, 5.00%, 9/1/34

      750        884,587  

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

      750        842,558  

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

      250        294,215  

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

      575        626,095  
     

 

 

  
   $ 13,088,361  
     

 

 

  

Escrowed/Prerefunded — 7.6%

 

Allegheny County Higher Education Building Authority, (Duquesne University), Prerefunded to 3/1/21, 5.50%, 3/1/31

    $ 1,050      $ 1,212,834  

Pennsylvania Higher Educational Facilities Authority, (Thomas Jefferson University), Prerefunded to 3/1/20, 5.00%, 3/1/40

      925        1,018,684  

Pennsylvania Turnpike Commission, Prerefunded to 12/1/20, 5.35%, 12/1/30

      175        199,647  

Philadelphia, Water and Wastewater Revenue, Prerefunded to 1/1/19, 5.25%, 1/1/32

      715        760,431  
     

 

 

  
   $ 3,191,596  
     

 

 

  

General Obligations — 13.3%

 

Chester County, 4.00%, 7/15/29

    $ 250      $ 283,142  

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

      1,000        1,264,910  

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

      3,000        3,213,480  

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

      750        849,855  
     

 

 

  
   $ 5,611,387  
     

 

 

  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Hospital — 12.0%

 

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

    $ 750      $ 806,437  

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

      1,000        1,088,730  

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

      500        515,785  

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

      500        546,910  

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

      250        273,033  

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

      675        726,772  

Philadelphia Hospitals and Higher Education Facilities Authority, (The Children’s Hospital of Philadelphia), 5.00%, 7/1/32

      750        830,955  

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

      250        281,770  
     

 

 

  
   $ 5,070,392  
     

 

 

  

Housing — 1.7%

 

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

    $ 175      $ 184,711  

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

      500        514,785  
     

 

 

  
   $ 699,496  
     

 

 

  

Insured-Education — 4.3%

 

State Public School Building Authority, (Delaware County Community College), (AGM), Prerefunded to 4/1/18, 5.00%, 10/1/27

    $ 500      $ 515,280  

State Public School Building Authority, (Delaware County Community College), (AGM), Prerefunded to 4/1/18, 5.00%, 10/1/29

      375        386,460  

State Public School Building Authority, (Delaware County Community College), (AGM), Prerefunded to 4/1/18, 5.00%, 10/1/32

      875        901,740  
     

 

 

  
   $ 1,803,480  
     

 

 

  

Insured-Electric Utilities — 3.1%

 

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

    $ 490      $ 521,311  

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

      750        797,850  
     

 

 

  
   $ 1,319,161  
     

 

 

  

Insured-Escrowed/Prerefunded — 21.3%

 

Bethlehem Area School District, (AGM), Prerefunded to 1/15/20, 5.25%, 1/15/25

    $ 1,250      $ 1,378,950  

Centennial School District, (AGM), Prerefunded to 12/15/18, 5.25%, 12/15/37

      660        701,342  

Central Greene School District, (AGM), Prerefunded to 2/15/18, 5.00%, 2/15/35

      1,000        1,025,630  

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

      180        149,611  

Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (AGM), Prerefunded to 7/1/18, 5.00%, 7/1/35

      1,620        1,700,530  

Lycoming County Authority, (Pennsylvania College of Technology), (AGC), Prerefunded to 4/1/18, 5.50%, 10/1/37

      500        517,305  

Pennsylvania Higher Educational Facilities Authority, (Drexel University), (NPFG), Prerefunded to 11/1/17, 5.00%, 5/1/37

      1,530        1,551,496  

Pennsylvania Higher Educational Facilities Authority, (University of the Sciences in Philadelphia), (AGC), Prerefunded to 11/1/18, 5.00%, 11/1/37

      500        526,605  

Philadelphia Gas Works, (AMBAC), Prerefunded to 10/1/17, 5.00%, 10/1/37

      890        899,568  

State Public School Building Authority, (Harrisburg School District), (AGC), Prerefunded to 5/15/19, 5.00%, 11/15/33

      85        91,209  

State Public School Building Authority, (Harrisburg School District), (AGC), Prerefunded to 5/15/19, 5.00%, 11/15/33

      85        91,242  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

State Public School Building Authority, (Harrisburg School District), (AGC), Prerefunded to 5/15/19, 5.00%, 11/15/33

    $ 330      $ 354,107  
     

 

 

  
   $ 8,987,595  
     

 

 

  

Insured-General Obligations — 19.0%

      

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

    $ 1,000      $ 589,380  

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

      750        848,895  

Luzerne County, (AGM), 5.00%, 11/15/29

      250        281,235  

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

      2,555        2,312,352  

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

      1,500        1,562,565  

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

      1,000        1,017,470  

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

      2,550        1,415,173  
     

 

 

  
      $ 8,027,070  
     

 

 

  

Insured-Hospital — 0.7%

      

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

    $ 250      $ 315,325  
     

 

 

  
      $ 315,325  
     

 

 

  

Insured-Industrial Development Revenue — 2.5%

      

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

    $ 1,000      $ 1,074,570  
     

 

 

  
      $ 1,074,570  
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 4.2%

      

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

    $ 500      $ 530,325  

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

      1,215        1,235,619  
     

 

 

  
      $ 1,765,944  
     

 

 

  

Insured-Special Tax Revenue — 3.2%

      

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

    $ 1,000      $ 1,093,340  

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

      1,295        257,252  
     

 

 

  
      $ 1,350,592  
     

 

 

  

Insured-Transportation — 6.2%

      

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

    $ 295      $ 296,077  

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

      2,100        2,303,595  
     

 

 

  
      $ 2,599,672  
     

 

 

  

Insured-Water and Sewer — 10.5%

      

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

    $ 500      $ 551,930  

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

      1,250        931,525  

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

      2,155        1,605,949  

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

      1,920        1,363,622  
     

 

 

  
      $ 4,453,026  
     

 

 

  

Special Tax Revenue — 4.1%

      

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

    $ 1,500      $ 1,722,900  
     

 

 

  
      $ 1,722,900  
     

 

 

  

Transportation — 7.9%

      

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

    $ 465      $ 503,753  

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

      730        790,276  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 1,000      $ 1,107,740  

Pennsylvania Turnpike Commission, 5.35%, 12/1/30

      325        358,508  

Philadelphia, Airport Revenue, 5.25%, 6/15/27

      500        553,800  
     

 

 

  
      $ 3,314,077  
     

 

 

  

Water and Sewer — 1.3%

      

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

    $ 500      $ 550,680  
     

 

 

  
      $ 550,680  
     

 

 

  

Total Tax-Exempt Investments — 153.9%
(identified cost $60,533,386)

       $ 64,945,324  
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (3.0)%

       $ (1,275,052 ) 
     

 

 

  

Institutional MuniFund Term Preferred Shares, at Liquidation Value (net of unamortized deferred offering costs) — (48.2)%

       $ (20,352,325 ) 
     

 

 

  

Other Assets, Less Liabilities — (2.7)%

       $ (1,129,815 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 42,188,132  
     

 

 

  

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 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, 2017, 48.8% 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 1.7% to 20.3% of total investments.

 

(1) 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

      20      Short    Sep-17    $     (3,041,227 )    $     (3,073,750 )    $     (32,523 ) 
               

 

 

  
  $ (32,523 ) 
               

 

 

  

Abbreviations:

 

AGC

   -   Assured Guaranty Corp.

AGM

   -   Assured Guaranty Municipal Corp.

AMBAC

   -   AMBAC Financial Group, Inc.

BHAC

   -   Berkshire Hathaway Assurance Corp.

NPFG

   -   National Public Finance Guaranty Corp.

SFMR

   -   Single Family Mortgage Revenue

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 $32,523.

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

    $     56,975,942  
  

 

 

  

Gross unrealized appreciation

    $ 4,690,740  

Gross unrealized depreciation

      (111,358 ) 
  

 

 

  

Net unrealized appreciation

    $ 4,579,382  
  

 

 

  

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

    $ —      $     64,945,324      $ —      $     64,945,324  

Total Investments

    $ —      $ 64,945,324      $ —      $ 64,945,324  
Liability Description                                

Futures Contracts

    $     (32,523 )     $ —      $ —      $ (32,523 ) 

Total

    $ (32,523 )     $ —      $ —      $ (32,523 ) 

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 Pennsylvania 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