N-Q 1 d85422dnq.htm EATON VANCE PENNSYLVANIA MUNICIPAL INCOME TRUST Eaton Vance Pennsylvania Municipal Income Trust

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-09151

Investment Company Act File Number

Eaton Vance Pennsylvania Municipal Income Trust

(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)

November 30

Date of Fiscal Year End

August 31, 2015

Date of Reporting Period

 

 

 


Item 1. Schedule of Investments


Eaton Vance

Pennsylvania Municipal Income Trust

August 31, 2015

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Municipal Securities — 161.6%

 

                                                 
Security    Principal
Amount
(000’s omitted)
     Value  

Cogeneration — 1.4%

     

Northampton County Industrial Development Authority, (Northampton Generating),
5.00%, 12/31/23
(1)

   $ 378       $ 342,399   

Pennsylvania Economic Development Financing Authority, (Colver), (AMT), 5.125%, 12/1/15

     175         175,856   
     

 

 

 
      $ 518,255   
     

 

 

 

Education — 28.7%

     

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

   $ 1,050       $ 1,177,659   

Bucks County Industrial Development Authority, (George School), 5.00%, 9/15/39

     500         545,920   

Cumberland County Municipal Authority, (Dickinson College), 5.00%, 11/1/39

     1,200         1,288,920   

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

     750         856,155   

Northampton County General Purpose Authority, (Lehigh University), 5.00%, 11/15/39

     500         551,855   

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

     440         481,061   

Pennsylvania Higher Educational Facilities Authority, (Temple University), 5.00%, 4/1/35

     750         832,365   

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

     625         665,862   

Pennsylvania Higher Educational Facilities Authority, (Thomas Jefferson University),
5.00%, 3/1/42

     600         658,182   

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

     560         609,644   

Pennsylvania Higher Educational Facilities Authority, (Ursinus College), 5.00%, 1/1/30

     750         820,650   

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

     750         866,415   

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

     250         285,478   

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

     575         647,743   
     

 

 

 
      $ 10,287,909   
     

 

 

 

Escrowed/Prerefunded — 4.9%

     

Daniel Boone Area School District, Prerefunded to 8/15/18, 5.00%, 8/15/32

   $ 315       $ 352,365   

Daniel Boone Area School District, Prerefunded to 8/15/18, 5.00%, 8/15/32

     220         246,096   

Pennsylvania Higher Educational Facilities Authority, (University of Pennsylvania Health System), Prerefunded to 8/15/18, 6.00%, 8/15/26(2)

     1,000         1,147,710   

Philadelphia School District, Prerefunded to 9/1/18, 6.00%, 9/1/38

     15         17,244   
     

 

 

 
      $ 1,763,415   
     

 

 

 

General Obligations — 11.8%

     

Chester County, 5.00%, 7/15/27

   $ 500       $ 566,390   

Daniel Boone Area School District, 5.00%, 8/15/32

     465         506,785   

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

     1,000         1,208,700   

Philadelphia School District, 6.00%, 9/1/38

     985         1,098,659   

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

     750         842,393   
     

 

 

 
      $ 4,222,927   
     

 

 

 

Hospital — 26.2%

     

Allegheny County Hospital Development Authority, (University of Pittsburgh Medical Center), 5.50%, 8/15/34

   $ 500       $ 558,150   

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

     750         820,162   

 

1

 

 


                                                 
Security    Principal
Amount
(000’s omitted)
     Value  

Dauphin County General Authority, (Pinnacle Health System), 6.00%, 6/1/29

   $ 750       $ 860,595   

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

     500         511,850   

Lycoming County Authority, (Susquehanna Health System), 5.75%, 7/1/39

     750         809,310   

Monroe County Hospital Authority, (Pocono Medical Center), 5.25%, 1/1/43

     1,485         1,545,350   

Montgomery County Higher Education and Health Authority, (Abington Memorial Hospital Obligated Group), 5.00%, 6/1/31

     1,095         1,201,554   

Montgomery County Higher Education and Health Authority, (Holy Redeemer Health System), 5.00%, 10/1/27

     500         542,110   

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

     250         281,520   

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

     675         748,184   

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

     250         297,675   

Southcentral Pennsylvania General Authority, (WellSpan Health Obligated Group), 5.00%, 6/1/34

     1,085         1,210,166   
     

 

 

 
      $ 9,386,626   
     

 

 

 

Housing — 2.6%

     

Allegheny County Residential Finance Authority, SFMR, (AMT), 4.95%, 11/1/37

   $ 155       $ 157,080   

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

     175         181,355   

Pennsylvania Housing Finance Agency, SFMR, (AMT), 4.70%, 10/1/37

     585         588,387   
     

 

 

 
      $ 926,822   
     

 

 

 

Industrial Development Revenue — 12.2%

     

Delaware County Industrial Development Authority, (Covanta), 5.00%, 7/1/43(3)

   $ 750       $ 752,985   

Luzerne County Industrial Development Authority, (Pennsylvania-American Water Co.), 5.50%, 12/1/39

     200         219,886   

Montgomery County Industrial Development Authority, (Aqua Pennsylvania, Inc.), (AMT), 5.25%, 7/1/42

     750         810,442   

Pennsylvania Economic Development Financing Authority, (Pennsylvania-American Water Co.), 6.20%, 4/1/39

     250         286,273   

Pennsylvania Economic Development Financing Authority, (PPL Energy Supply, LLC), 6.40%, 12/1/38

     425         430,822   

Pennsylvania Economic Development Financing Authority, (Procter & Gamble Paper Products Co.), (AMT), 5.375%, 3/1/31

     1,115         1,364,225   

Pennsylvania Economic Development Financing Authority, (Waste Management, Inc.), (AMT), 5.10%, 10/1/27

     500         506,865   
     

 

 

 
      $ 4,371,498   
     

 

 

 

Insured-Education — 8.7%

     

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

   $ 500       $ 544,470   

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

     1,105         1,181,853   

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

     375         414,480   

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

     875         967,120   
     

 

 

 
      $ 3,107,923   
     

 

 

 

Insured-Electric Utilities — 2.6%

     

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

   $ 1,080       $ 916,283   
     

 

 

 
      $ 916,283   
     

 

 

 

Insured-Escrowed/Prerefunded — 5.3%

     

Westmoreland Municipal Authority, (FGIC), Escrowed to Maturity, 0.00%, 8/15/19

   $ 2,000       $ 1,893,580   
     

 

 

 
      $ 1,893,580   
     

 

 

 

 

2

 

 


                                                 
Security    Principal
Amount
(000’s omitted)
     Value  

Insured-General Obligations — 7.0%

     

Beaver County, (AGM), 5.55%, 11/15/31

   $ 475       $ 516,368   

Beaver County, (AGM), Prerefunded to 11/15/17, 5.55%, 11/15/31

     25         27,658   

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

     750         848,302   

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

     750         835,957   

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

     250         276,955   
     

 

 

 
      $ 2,505,240   
     

 

 

 

Insured-Hospital — 5.2%

     

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

   $ 250       $ 313,995   

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

     1,440         1,541,822   
     

 

 

 
      $ 1,855,817   
     

 

 

 

Insured-Industrial Development Revenue — 1.5%

     

Delaware County Industrial Development Authority, (Aqua Pennsylvania, Inc.), (NPFG), (AMT), 5.00%, 11/1/36

   $ 525       $ 528,218   
     

 

 

 
      $ 528,218   
     

 

 

 

Insured-Lease Revenue/Certificates of Participation — 5.0%

     

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

   $ 500       $ 551,600   

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

     1,195         1,256,913   
     

 

 

 
      $ 1,808,513   
     

 

 

 

Insured-Special Tax Revenue — 2.5%

     

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

   $ 610       $ 687,427   

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

     1,235         195,624   
     

 

 

 
      $ 883,051   
     

 

 

 

Insured-Transportation — 8.9%

     

Philadelphia, Airport Revenue, (AGM), (AMT), 5.00%, 6/15/27

   $ 525       $ 556,542   

Philadelphia Parking Authority, (AMBAC), 5.25%, 2/15/29

     1,005         1,008,598   

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

     1,800         1,617,192   
     

 

 

 
      $ 3,182,332   
     

 

 

 

Insured-Water and Sewer — 1.6%

     

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

   $ 500       $ 561,255   
     

 

 

 
      $ 561,255   
     

 

 

 

Senior Living/Life Care — 1.4%

     

Lancaster Industrial Development Authority, (Garden Spot Village), 5.375%, 5/1/28

   $ 100       $ 107,639   

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

     200         202,926   

Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/30

     200         204,594   
     

 

 

 
      $ 515,159   
     

 

 

 

Special Tax Revenue — 0.3%

     

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

   $ 110       $ 124,123   
     

 

 

 
      $ 124,123   
     

 

 

 

Transportation — 17.6%

     

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

   $ 465       $ 516,689   

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

     285         315,153   

Pennsylvania Economic Development Financing Authority, (Amtrak), (AMT), 5.00%, 11/1/41

     450         479,507   

 

3

 

 


                                                 
Security    Principal
Amount
(000’s omitted)
     Value  

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

   $ 1,430       $ 1,532,674   

Pennsylvania Turnpike Commission, 5.25%, 6/1/39

     1,000         1,097,760   

Pennsylvania Turnpike Commission, 5.625%, 6/1/29

     750         828,848   

Philadelphia, Airport Revenue, (AMT), 5.00%, 6/15/23

     410         463,345   

Philadelphia, Airport Revenue, (AMT), 5.00%, 6/15/27

     970         1,080,182   
     

 

 

 
      $ 6,314,158   
     

 

 

 

Utilities — 1.8%

     

Philadelphia Gas Works, 5.25%, 8/1/40

   $ 600       $ 663,726   
     

 

 

 
      $ 663,726   
     

 

 

 

Water and Sewer — 4.4%

     

Harrisburg Water Authority, 5.25%, 7/15/31

   $ 750       $ 761,520   

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

     750         833,348   
     

 

 

 
      $ 1,594,868   
     

 

 

 

Total Tax-Exempt Municipal Securities — 161.6%
(identified cost $53,920,017)

      $ 57,931,698   
     

 

 

 

Taxable Municipal Securities — 0.0%(4)

     
Security    Principal
Amount
(000’s omitted)
     Value  

Cogeneration — 0.0%(4)

     

Northampton County Industrial Development Authority, (Northampton Generating), 5.00%, 12/31/23(1)

   $ 7       $ 7,262   
     

 

 

 

Total Taxable Municipal Securities — 0.0%(4)
(identified cost $7,262)

      $ 7,262   
     

 

 

 

Total Investments — 161.6%
(identified cost $53,927,279)

      $ 57,938,960   
     

 

 

 

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (59.1)%

      $ (21,175,491
     

 

 

 

Other Assets, Less Liabilities — (2.5)%

      $ (918,874
     

 

 

 

Net Assets Applicable to Common Shares — 100.0%

      $ 35,844,595   
     

 

 

 

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.

AMT

  -   Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.

CIFG

  -   CIFG Assurance North America, Inc.

FGIC

  -   Financial Guaranty Insurance Company

NPFG

  -   National Public Finance Guaranty Corp.

SFMR

  -   Single Family Mortgage Revenue

 

4

 

 


The Trust 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 August 31, 2015, 29.8% 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 14.7% of total investments.

 

(1) Represents a payment-in-kind security which may pay interest in additional principal at the issuer’s discretion.

 

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

 

(3) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be sold in certain transactions (normally to qualified institutional buyers) and remain exempt from registration. At August 31, 2015, the aggregate value of these securities is $752,985 or 2.1% of the Trust’s net assets applicable to common shares.

 

(4) Amount is less than 0.05%.

The cost and unrealized appreciation (depreciation) of investments of the Trust at August 31, 2015, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

   $     53,145,554   
  

 

 

 

Gross unrealized appreciation

   $ 4,250,885   

Gross unrealized depreciation

     (207,479
  

 

 

 

Net unrealized appreciation

   $ 4,043,406   
  

 

 

 

A summary of open financial instruments at August 31, 2015 is as follows:

Futures Contracts

 

Expiration
Month/Year
  

Contracts

   Position    Aggregate Cost     Value     Net Unrealized
Depreciation
 
12/15    10 U.S. Long Treasury Bond    Short    $     (1,545,372   $     (1,546,250   $     (878

At August 31, 2015, the Trust had sufficient cash and/or securities to cover commitments under these contracts.

The Trust is subject to interest rate risk in the normal course of pursuing its investment objective. Because the Trust holds fixed-rate bonds, the value of these bonds may decrease if interest rates rise. The Trust enters into U.S. Treasury futures contracts to hedge against changes in interest rates.

At August 31, 2015, 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 $878.

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.

 

5

 

 


At August 31, 2015, the hierarchy of inputs used in valuing the Trust’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 Municipal Securities

   $       $ 57,931,698       $       $ 57,931,698   

Taxable Municipal Securities

             7,262                 7,262   

Total Investments

   $       $     57,938,960       $       $     57,938,960   
Liability Description                                

Futures Contracts

   $ (878    $       $       $ (878

Total

   $     (878    $       $     —       $ (878

The Trust held no investments or other financial instruments as of November 30, 2014 whose fair value was determined using Level 3 inputs. At August 31, 2015, there were no investments transferred between Level 1 and Level 2 during the fiscal year to date then ended.

For information on the Trust’s policy regarding the valuation of investments and other significant accounting policies, please refer to the Trust’s most recent financial statements included in its semiannual or annual report to shareholders.

 

6

 

 


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 Income Trust

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   October 26, 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:   October 26, 2015

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   October 26, 2015