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

February 28, 2013

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Pennsylvania Municipal Income Trust

February 28, 2013

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 155.9%

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Cogeneration — 1.7%

      

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

    $ 275       $ 280,415   

Pennsylvania Economic Development Financing Authority, (Northampton Generating), (AMT), 6.50%, 1/1/13(1)

      100         63,448   

Pennsylvania Economic Development Financing Authority, (Northampton Generating), (AMT), 6.60%, 1/1/19(2)

      500         324,445   
     

 

 

  
      $ 668,308   
     

 

 

  

Education — 25.0%

      

Allegheny County Higher Education Building Authority, (Carnegie Mellon University),
5.00%, 3/1/28

    $ 500       $ 614,800   

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

      1,050         1,240,144   

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

      500         563,310   

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

      1,200         1,342,224   

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

      500         552,255   

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

      440         486,090   

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

      750         857,340   

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

      625         693,675   

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

      600         677,694   

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

      560         629,496   

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

      750         871,875   

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

      500         600,780   

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

      575         650,601   
     

 

 

  
      $ 9,780,284   
     

 

 

  

Electric Utilities — 2.8%

      

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

    $ 1,095       $ 1,111,677   
     

 

 

  
      $ 1,111,677   
     

 

 

  

Escrowed/Prerefunded — 3.2%

      

Lehigh County General Purpose Authority, (Lehigh Valley Health Network), Prerefunded to 7/1/13, 5.25%, 7/1/32

    $ 1,215       $ 1,247,975   
     

 

 

  
      $ 1,247,975   
     

 

 

  

General Obligations — 10.5%

      

Chester County, 5.00%, 7/15/27

    $ 500       $ 584,850   

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

      1,000         1,129,870   

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

      1,000         1,222,600   

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

      1,000         1,172,430   
     

 

 

  
      $ 4,109,750   
     

 

 

  

 

 

1

 

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Hospital — 22.8%

      

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

    $ 500       $ 565,575   

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

      750         833,505   

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

      750         859,732   

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

      500         521,175   

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

      750         829,245   

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

      1,500         1,565,265   

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

      1,095         1,246,625   

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

      250         276,963   

Pennsylvania Higher Educational Facilities Authority, (University of Pennsylvania Health System), 6.00%, 8/15/26(3)

      1,000         1,206,860   

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

      675         747,866   

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

      250         278,262   
     

 

 

  
      $ 8,931,073   
     

 

 

  

Housing — 13.1%

      

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

    $ 380       $ 398,004   

Allegheny County Residential Finance Authority, SFMR, (AMT), 5.00%, 5/1/35

      1,035         1,072,860   

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

      755         772,191   

Pennsylvania Housing Finance Agency, SFMR, (AMT), 4.75%, 10/1/25

      500         531,495   

Pennsylvania Housing Finance Agency, SFMR, (AMT), 4.875%, 4/1/26

      830         853,730   

Pennsylvania Housing Finance Agency, SFMR, (AMT), 4.875%, 10/1/31

      500         513,815   

Pennsylvania Housing Finance Agency, SFMR, (AMT), 4.90%, 10/1/37

      965         984,648   
     

 

 

  
      $ 5,126,743   
     

 

 

  

Industrial Development Revenue — 8.4%

      

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

    $ 200       $ 225,094   

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

      750         812,835   

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

      250         291,430   

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

      1,115         1,432,530   

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

      500         526,375   
     

 

 

  
      $ 3,288,264   
     

 

 

  

Insured-Education — 8.0%

      

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

    $ 500       $ 549,555   

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

      1,110         1,195,870   

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

      375         411,926   

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

      875         966,437   
     

 

 

  
      $ 3,123,788   
     

 

 

  

Insured-Escrowed/Prerefunded — 8.8%

      

Pennsylvania Turnpike Commission, Oil Franchise Tax, (AMBAC), Escrowed to Maturity, 4.75%, 12/1/27

    $ 1,600       $ 1,613,504   

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

      2,000         1,844,980   
     

 

 

  
      $ 3,458,484   
     

 

 

  

 

 

2

 

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Insured-General Obligations — 3.7%

      

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

    $ 500       $ 576,850   

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

      750         865,418   
     

 

 

  
      $ 1,442,268   
     

 

 

  

Insured-Hospital — 4.8%

      

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

    $ 250       $ 333,163   

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

      1,440         1,558,872   
     

 

 

  
      $ 1,892,035   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 4.8%

      

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

    $ 500       $ 560,135   

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

      1,195         1,330,931   
     

 

 

  
      $ 1,891,066   
     

 

 

  

Insured-Special Tax Revenue — 2.3%

      

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

    $ 610       $ 688,269   

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

      1,235         201,589   
     

 

 

  
      $ 889,858   
     

 

 

  

Insured-Transportation — 8.9%

      

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

    $ 525       $ 578,660   

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

      1,005         1,008,528   

Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(3)(4)

      1,800         1,911,600   
     

 

 

  
      $ 3,498,788   
     

 

 

  

Insured-Water and Sewer — 2.9%

      

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

    $ 500       $ 564,860   

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

      525         550,741   
     

 

 

  
      $ 1,115,601   
     

 

 

  

Senior Living/Life Care — 2.4%

      

Cliff House Trust, (AMT), 6.625%, 6/1/27(2)

    $ 1,000       $ 525,090   

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

      200         209,718   

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

      200         207,216   
     

 

 

  
      $ 942,024   
     

 

 

  

Special Tax Revenue — 0.3%

      

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

    $ 110       $ 129,391   
     

 

 

  
      $ 129,391   
     

 

 

  

Transportation — 16.0%

      

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

    $ 465       $ 525,032   

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

      285         318,049   

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

      455         496,332   

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

      1,000         1,087,870   

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

      1,430         1,392,405   

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

      750         871,365   

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

      410         473,234   

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

      970         1,088,495   
     

 

 

  
      $ 6,252,782   
     

 

 

  

 

 

3

 

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Utilities — 1.6%

      

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

    $ 600       $ 645,558   
     

 

 

  
      $ 645,558   
     

 

 

  

Water and Sewer — 3.9%

      

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

    $ 750       $ 677,003   

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

      750         848,212   
     

 

 

  
      $ 1,525,215   
     

 

 

  

Total Tax-Exempt Investments — 155.9%
(identified cost $56,263,144)

       $ 61,070,932   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (54.0)%

       $ (21,175,312 ) 
     

 

 

  

Other Assets, Less Liabilities — (1.9)%

       $ (728,825 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 39,166,795   
     

 

 

  

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

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 February 28, 2013, 28.3% 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 3.1% to 12.3% of total investments.

 

(1) Defaulted matured bond.

 

(2) Defaulted bond.

 

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

 

(4) Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $1,011,600.

A summary of open financial instruments at February 28, 2013 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Depreciation		  
6/13    50 U.S. 30-Year Treasury Bond    Short    $     (7,125,309 )    $     (7,189,063 )    $     (63,754 ) 

 

4

 

 

At February 28, 2013, 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 purchases and sells U.S. Treasury futures contracts to hedge against changes in interest rates.

At February 28, 2013, 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 $63,754.

The cost and unrealized appreciation (depreciation) of investments of the Trust at February 28, 2013, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     54,592,836   
  

 

 

  

Gross unrealized appreciation

    $ 5,384,106   

Gross unrealized depreciation

      (556,010 ) 
  

 

 

  

Net unrealized appreciation

    $ 4,828,096   
  

 

 

  

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 February 28, 2013, 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 Investments

    $ —      $     61,070,932       $     —       $     61,070,932   

Total Investments

    $ —      $ 61,070,932       $ —       $ 61,070,932   
Liability Description                               

Futures Contracts

    $     (63,754 )    $ —       $ —       $ (63,754 ) 

Total

    $     (63,754 )    $ —       $     —       $ (63,754 ) 

The Trust held no investments or other financial instruments as of November 30, 2012 whose fair value was determined using Level 3 inputs. At February 28, 2013, 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.

 

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 Income Trust

 

By:  

/s/ Cynthia J. Clemson

  Cynthia J. Clemson
  President
Date:   April 24, 2013

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:   April 24, 2013
By:  

/s/ James F. Kirchner

  James F. Kirchner
  Treasurer
Date:   April 24, 2013