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, 2018

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Pennsylvania Municipal Income Trust

August 31, 2018

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Municipal Securities — 159.3%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Cogeneration — 0.3%

 

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

    $ 378      $ 113,437  
     

 

 

  
      $ 113,437  
  

 

 

  

Education — 24.8%

      

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

    $ 500      $ 514,820  

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

      45        50,572  

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

      65        73,626  

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

      85        96,388  

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

      70        77,534  

Pennsylvania State University, 5.00%, 9/1/42(2)

      3,250        3,731,195  

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

      750        808,680  

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

      250        280,990  

Swarthmore Borough Authority, (Swarthmore College), 5.00%, 9/15/46(2)

      2,525        2,938,115  
     

 

 

  
      $ 8,571,920  
  

 

 

  

Escrowed/Prerefunded — 18.5%

      

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

    $ 1,050      $ 1,142,536  

Cumberland County Municipal Authority, (Dickinson College), Prerefunded to 11/1/19, 5.00%, 11/1/39

      1,200        1,244,532  

Dauphin County General Authority, (Pinnacle Health System), Prerefunded to 6/1/19, 6.00%, 6/1/29

      360        371,524  

Northampton County General Purpose Authority, (Lehigh University), Prerefunded to 5/15/19, 5.00%, 11/15/39

      500        511,825  

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

      625        654,250  

Pennsylvania Turnpike Commission, Prerefunded to 6/1/19, 5.25%, 6/1/39

      515        528,663  

Pennsylvania Turnpike Commission, Prerefunded to 6/1/19, 5.25%, 6/1/39

      420        431,143  

Pennsylvania Turnpike Commission, Prerefunded to 6/1/19, 5.25%, 6/1/39

      65        66,724  

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

      385        414,938  

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

      495        533,491  

Philadelphia, Gas Works Revenue, Prerefunded to 8/1/20, 5.25%, 8/1/40

      235        250,026  

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

      250        266,270  
     

 

 

  
      $ 6,415,922  
  

 

 

  

General Obligations — 40.2%

      

Allegheny County, 5.00%, 11/1/43(2)

    $ 2,875      $ 3,272,411  

Chester County, 5.00%, 7/15/27

      105        107,984  

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

      1,000        1,259,940  

Pennsylvania, 5.00%, 3/1/32(2)

      2,250        2,573,235  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Peters Township School District, 5.00%, 9/1/40(2)

    $ 2,750      $ 3,129,995  

State College Area School District, 5.00%, 5/15/44(2)

      3,100        3,561,807  
     

 

 

  
      $ 13,905,372  
  

 

 

  

Hospital — 23.2%

      

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

    $ 500      $ 515,330  

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

      390        401,255  

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

      750        775,177  

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

      250        264,733  

Pennsylvania Higher Educational Facilities Authority, (University of Pennsylvania Health System), 4.00%, 8/15/42(2)

      5,250        5,380,987  

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

      675        708,440  
     

 

 

  
      $ 8,045,922  
  

 

 

  

Housing — 0.5%

      

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

    $ 175      $ 185,868  
     

 

 

  
      $ 185,868  
  

 

 

  

Industrial Development Revenue — 7.0%

      

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

    $ 750      $ 758,273  

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

      200        208,744  

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

      250        255,940  

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

      1,000        1,198,480  
     

 

 

  
      $ 2,421,437  
  

 

 

  

Insured – Electric Utilities — 3.3%

      

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

    $ 1,080      $ 1,159,682  
     

 

 

  
      $ 1,159,682  
  

 

 

  

Insured – Escrowed/Prerefunded — 7.2%

      

Bucks County Water and Sewer Authority, (AGM), Prerefunded to 12/1/20, 5.00%, 12/1/35

    $ 500      $ 535,625  

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

      2,000        1,967,360  
     

 

 

  
      $ 2,502,985  
  

 

 

  

Insured – Hospital — 0.9%

      

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

    $ 250      $ 297,723  
     

 

 

  
      $ 297,723  
  

 

 

  

Insured – Lease Revenue/Certificates of Participation — 1.5%

      

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

    $ 500      $ 510,560  
     

 

 

  
      $ 510,560  
  

 

 

  

Insured – Special Tax Revenue — 0.9%

      

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

    $ 1,235      $ 311,862  
     

 

 

  
      $ 311,862  
  

 

 

  

Insured – Transportation — 9.2%

      

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

    $ 1,005      $ 1,007,824  

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

      1,800        2,166,732  
     

 

 

  
      $ 3,174,556  
  

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Senior Living/Life Care — 0.3%

      

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

    $ 100      $ 109,379  
     

 

 

  
      $ 109,379  
  

 

 

  

Special Tax Revenue — 11.0%

      

Pennsylvania Turnpike Commission, Oil Franchise Tax Revenue, 5.25%, 12/1/44(2)

    $ 3,250      $ 3,796,682  
     

 

 

  
      $ 3,796,682  
  

 

 

  

Transportation — 9.4%

      

Delaware River Joint Toll Bridge Commission of Pennsylvania and New Jersey,
5.00%, 7/1/47(2)

    $ 1,225      $ 1,393,266  

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

      465        482,544  

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

      285        295,639  

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

      450        478,202  

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

      550        590,882  
     

 

 

  
      $ 3,240,533  
  

 

 

  

Utilities — 1.1%

      

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

    $ 365      $ 386,499  
     

 

 

  
      $ 386,499  
  

 

 

  

Total Tax-Exempt Municipal Securities — 159.3%
(identified cost $53,485,273)

       $ 55,150,339  
  

 

 

  

Taxable Municipal Securities — 0.1%

 

Security    Principal
Amount
(000’s omitted)		      Value  

Cogeneration — 0.1%

      

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

    $ 69      $ 20,641  
     

 

 

  

Total Taxable Municipal Securities — 0.1%
(identified cost $68,804)

       $ 20,641  
  

 

 

  

Total Investments — 159.4%
(identified cost $53,554,077)

       $ 55,170,980  
  

 

 

  

Other Assets, Less Liabilities — (59.4)%

       $ (20,558,667 ) 
  

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 34,612,313  
  

 

 

  

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

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, 2018, 14.4% 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 1.0% to 4.9% of total investments.

 

3

 

 

(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, as amended. These securities may be sold in certain transactions in reliance on an exemption from registration (normally to qualified institutional buyers). At August 31, 2018, the aggregate value of these securities is $758,273 or 2.2% of the Trust’s net assets applicable to common shares.

Abbreviations:

 

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.

FGIC

   -   Financial Guaranty Insurance Company

NPFG

   -   National Public Finance Guaranty Corp.
 

 

The Trust did not have any open derivative instruments at August 31, 2018.

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 August 31, 2018, the hierarchy of inputs used in valuing the Trust’s investments, which are carried at value, were as follows:

 

Asset Description    Level 1      Level 2      Level 3      Total  

Tax-Exempt Municipal Securities

    $ —      $ 55,150,339      $ —      $ 55,150,339  

Taxable Municipal Securities

      —        20,641        —        20,641  

Total Investments

    $     —      $     55,170,980      $     —      $     55,170,980  

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.

Proposed Plan of Reorganization

In July 2018, the Trustees of the Trust approved an Agreement and Plan of Reorganization whereby Eaton Vance Municipal Income Trust (Municipal Income Trust) would acquire substantially all the assets and assume substantially all the liabilities of the Trust in exchange for common shares of Municipal Income Trust. The proposed reorganization is subject to approval by the shareholders of the Trust.

 

4

 

 

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 Income Trust

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   October 22, 2018

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 22, 2018

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   October 22, 2018