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 29, 2012

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Pennsylvania Municipal Income Trust

February 29, 2012

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 156.5%

 

N(000.000.000 N(000.000.000
Security    Principal
Amount
(000’s omitted)		      Value  

Cogeneration — 1.9%

      

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

    $ 100       $ 60,120   

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

      500         301,400   

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

      375         375,514   
     

 

 

  
      $ 737,034   
     

 

 

  

Education — 17.8%

      

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

    $ 1,050       $ 1,192,338   

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

      500         552,660   

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

      1,200         1,310,436   

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

      500         541,605   

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

      440         472,120   

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

      625         678,375   

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

      750         853,515   

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

      500         587,055   

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

      575         632,857   
     

 

 

  
      $ 6,820,961   
     

 

 

  

Electric Utilities — 1.6%

      

York County Industrial Development Authority, (Public Service Enterprise Group, Inc.), 5.50%, 9/1/20

    $ 600       $ 607,164   
     

 

 

  
      $ 607,164   
     

 

 

  

Escrowed/Prerefunded — 3.0%

      

Bucks County Industrial Development Authority, (Pennswood Village), Prerefunded to 10/1/12, 6.00%, 10/1/27

    $ 600       $ 626,184   

Washington County Hospital Authority, (Monongahela Hospital), Prerefunded to 6/1/12, 5.50%, 6/1/17

      500         511,865   
     

 

 

  
      $ 1,138,049   
     

 

 

  

General Obligations — 10.3%

      

Chester County, 5.00%, 7/15/27(2)

    $ 500       $ 589,260   

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

      1,000         1,085,150   

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

      1,000         1,157,310   

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

      1,000         1,139,030   
     

 

 

  
      $ 3,970,750   
     

 

 

  

Hospital — 21.4%

      

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

    $ 500       $ 553,565   

 

1

 

 

N(000.000.000 N(000.000.000
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 750       $ 800,655   

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

      750         832,387   

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

      1,215         1,247,744   

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

      750         792,397   

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

      1,500         1,534,920   

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

      250         265,168   

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

      1,000         1,179,180   

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

      675         735,365   

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

      250         267,118   
     

 

 

  
      $ 8,208,499   
     

 

 

  

Housing — 16.1%

      

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

    $ 435       $ 447,454   

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

      1,115         1,139,965   

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

      840         852,255   

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

      500         518,520   

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

      885         901,718   

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

      500         507,040   

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

      970         978,691   

Pennsylvania Housing Finance Agency, SFMR, (AMT), 5.15%, 10/1/37

      830         845,048   
     

 

 

  
      $ 6,190,691   
     

 

 

  

Industrial Development Revenue — 8.3%

      

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

    $ 200       $ 220,452   

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

      750         795,315   

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

      250         289,070   

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

      1,115         1,384,830   

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

      500         514,750   
     

 

 

  
      $ 3,204,417   
     

 

 

  

Insured-Education — 12.4%

      

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

    $ 500       $ 540,015   

Lycoming County Authority, (Pennsylvania College of Technology), (AMBAC), 5.25%, 5/1/32

      1,675         1,676,976   

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

      1,115         1,183,517   

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

      375         410,003   

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

      875         941,167   
     

 

 

  
      $ 4,751,678   
     

 

 

  

Insured-Escrowed/Prerefunded — 8.7%

      

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

    $ 1,600       $ 1,615,136   

 

2

 

 

N(000.000.000 N(000.000.000
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 2,000       $ 1,744,920   
     

 

 

  
      $ 3,360,056   
     

 

 

  

Insured-General Obligations — 3.7%

      

Beaver County, (AGM), 5.55%, 11/15/31

    $ 500       $ 555,320   

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

      750         858,758   
     

 

 

  
      $ 1,414,078   
     

 

 

  

Insured-Hospital — 10.7%

  

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

    $ 250       $ 330,660   

Delaware County General Authority, (Catholic Health East), (AMBAC), 4.875%, 11/15/26

      355         355,380   

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

      1,440         1,524,614   

Montgomery County Higher Education and Health Authority, (Abington Memorial Hospital), (AMBAC), 5.00%, 6/1/28

      1,900         1,902,698   
     

 

 

  
   $ 4,113,352   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 4.8%

      

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

    $ 500       $ 552,555   

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

      1,195         1,304,546   
     

 

 

  
   $ 1,857,101   
     

 

 

  

Insured-Special Tax Revenue — 2.0%

      

Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54

    $ 4,855       $ 402,139   

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

      2,335         372,386   
     

 

 

  
   $ 774,525   
     

 

 

  

Insured-Transportation — 9.2%

      

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

    $ 500       $ 526,075   

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

      1,005         1,006,337   

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

      1,800         2,020,176   
     

 

 

  
   $ 3,552,588   
     

 

 

  

Insured-Water and Sewer — 3.8%

      

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

    $ 500       $ 548,795   

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

      525         542,104   

Philadelphia, Water and Wastewater Revenue, (FGIC), (NPFG), 5.00%, 11/1/31

      360         363,287   
     

 

 

  
   $ 1,454,186   
     

 

 

  

Senior Living/Life Care — 2.5%

      

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

    $ 1,000       $ 530,140   

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

      200         207,902   

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

      200         203,820   
     

 

 

  
   $ 941,862   
     

 

 

  

Special Tax Revenue — 0.3%

      

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

    $ 110       $ 126,543   
     

 

 

  
   $ 126,543   
     

 

 

  

Transportation — 12.6%

      

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

    $ 465       $ 499,400   

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

      285         304,494   

 

3

 

 

N(000.000.000 N(000.000.000
Security    Principal
Amount
(000’s omitted)		      Value  

Pennsylvania Economic Development Financing Authority, (Amtrak), (AMT), 6.25%, 11/1/31

    $ 270       $ 271,164   

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

      1,000         1,071,150   

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

      1,430         1,313,798   

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

      750         834,345   

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

      520         556,707   
     

 

 

  
   $ 4,851,058   
     

 

 

  

Utilities — 1.6%

  

Philadelphia Gas Works, 5.25%, 8/1/40

    $ 600       $ 624,618   
     

 

 

  
   $ 624,618   
     

 

 

  

Water and Sewer — 3.8%

      

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

    $ 750       $ 629,318   

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

      750         811,432   
     

 

 

  
   $ 1,440,750   
     

 

 

  

Total Tax-Exempt Investment — 156.5%
(identified cost $56,462,764)

       $ 60,139,960   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (55.1)%

  

    $ (21,175,266 ) 
     

 

 

  

Other Assets, Less Liabilities — (1.4)%

  

    $ (544,732 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

  

    $ 38,419,962   
     

 

 

  

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 29, 2012, 35.4% 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 ranged from 3.4% to 11.6% of total investments.

 

(1) Defaulted bond.

 

(2) Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.

 

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

 

4

 

 

A summary of open financial instruments at February 29, 2012 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Depreciation		  
6/12    50 U.S. 30-Year Treasury Bond    Short    $     (7,040,928 )    $     (7,082,813 )    $     (41,885 ) 

At February 29, 2012, 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 29, 2012, 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 $41,885.

The cost and unrealized appreciation (depreciation) of investments of the Trust at February 29, 2012, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     54,806,856   
  

 

 

  

Gross unrealized appreciation

    $ 4,474,759   

Gross unrealized depreciation

      (791,655 ) 
  

 

 

  

Net unrealized appreciation

    $ 3,683,104   
  

 

 

  

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 29, 2012, 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

    $ —      $ 60,139,960       $ —       $     60,139,960   

Total Investments

    $ —      $     60,139,960       $     —       $ 60,139,960   
Liability Description                               

Futures Contracts

    $ (41,885 )    $ —       $ —       $ (41,885 ) 

Total

    $     (41,885 )    $ —       $ —       $ (41,885 ) 

The Trust held no investments or other financial instruments as of November 30, 2011 whose fair value was determined using Level 3 inputs. At February 29, 2012, the value of investments transferred between Level 1 and Level 2, if any, during the fiscal year to date then ended was not significant.

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, 2012

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, 2012

 

By:   /s/ Barbara E. Campbell
  Barbara E. Campbell
  Treasurer
Date:   April 24, 2012