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, 2013

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Pennsylvania Municipal Income Trust

August 31, 2013

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Municipal Securities — 165.0%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Cogeneration — 1.8%

      

Northampton County Industrial Development Authority, (Northampton Generating), 5.00%, 12/31/23(4)

    $ 420       $ 349,130   

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

      275         269,753   
     

 

 

  
      $ 618,883   
     

 

 

  

Education — 29.0%

      

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

    $ 500       $ 525,475   

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

      1,050         1,105,986   

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

      500         500,505   

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

      1,200         1,213,884   

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

      500         505,155   

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

      440         422,910   

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

      750         752,047   

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

      625         627,750   

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

      600         584,874   

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

      560         563,758   

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

      750         745,808   

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

      750         780,352   

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

      250         257,560   

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

      500         535,650   

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

      575         586,621   
     

 

 

  
      $ 9,708,335   
     

 

 

  

Electric Utilities — 2.4%

      

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

    $ 1,095       $ 806,785   
     

 

 

  
      $ 806,785   
     

 

 

  

General Obligations — 13.1%

      

Chester County, 5.00%, 7/15/27

    $ 500       $ 535,365   

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

      1,000         1,012,320   

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

      1,000         1,003,340   

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

      1,000         1,057,360   

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

      750         771,255   
     

 

 

  
      $ 4,379,640   
     

 

 

  

Hospital — 24.0%

      

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

    $ 500       $ 519,775   

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 750       $ 723,173   

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

      750         795,675   

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

      500         429,320   

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

      750         757,882   

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

      1,500         1,429,860   

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

      1,095         1,096,073   

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

      250         248,348   

Pennsylvania Higher Educational Facilities Authority, (University of Pennsylvania Health System), 6.00%, 8/15/26(1)

      1,000         1,126,300   

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

      675         674,163   

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

      250         251,040   
     

 

 

  
      $ 8,051,609   
     

 

 

  

Housing — 11.1%

      

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

    $ 345       $ 335,965   

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

      910         901,619   

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

      665         623,065   

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

      500         507,170   

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

      830         835,378   

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

      500         500,125   
     

 

 

  
      $ 3,703,322   
     

 

 

  

Industrial Development Revenue — 8.6%

      

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

    $ 200       $ 204,328   

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

      750         750,892   

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

      250         267,768   

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

      1,115         1,160,079   

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

      500         493,555   
     

 

 

  
      $ 2,876,622   
     

 

 

  

Insured-Education — 8.6%

      

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

    $ 500       $ 512,990   

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

      1,110         1,103,828   

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

      375         380,813   

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

      875         880,302   
     

 

 

  
      $ 2,877,933   
     

 

 

  

Insured-Escrowed/Prerefunded — 10.3%

      

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

    $ 1,600       $ 1,672,832   

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

      2,000         1,764,440   
     

 

 

  
      $ 3,437,272   
     

 

 

  

Insured-General Obligations — 6.2%

      

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

    $ 500       $ 541,690   

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 750       $ 799,485   

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

      750         730,777   
     

 

 

  
      $ 2,071,952   
     

 

 

  

Insured-Hospital — 5.0%

      

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

    $ 250       $ 293,123   

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

      1,440         1,394,352   
     

 

 

  
      $ 1,687,475   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 5.1%

      

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

    $ 500       $ 504,440   

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

      1,195         1,196,757   
     

 

 

  
      $ 1,701,197   
     

 

 

  

Insured-Special Tax Revenue — 2.2%

      

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

    $ 610       $ 619,961   

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

      1,235         120,561   
     

 

 

  
      $ 740,522   
     

 

 

  

Insured-Transportation — 8.8%

      

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

    $ 525       $ 536,020   

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

      1,005         1,007,472   

Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(1)(2)

      1,800         1,419,768   
     

 

 

  
      $ 2,963,260   
     

 

 

  

Insured-Water and Sewer — 3.1%

      

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

    $ 500       $ 505,110   

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

      525         517,172   
     

 

 

  
      $ 1,022,282   
     

 

 

  

Senior Living/Life Care — 2.7%

      

Cliff House Trust, (AMT), 6.625%, 6/1/27(3)

    $ 1,000       $ 521,160   

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

      200         202,238   

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

      200         194,576   
     

 

 

  
      $ 917,974   
     

 

 

  

Special Tax Revenue — 0.4%

      

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

    $ 110       $ 120,139   
     

 

 

  
      $ 120,139   
     

 

 

  

Transportation — 16.8%

      

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

    $ 465       $ 473,049   

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

      285         287,599   

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

      450         420,368   

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

      1,000         979,180   

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

      1,430         1,280,937   

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

      750         799,920   

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

      410         429,791   

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

      970         967,148   
     

 

 

  
      $ 5,637,992   
     

 

 

  

Utilities — 1.7%

      

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

    $ 600       $ 566,970   
     

 

 

  
      $ 566,970   
     

 

 

  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Water and Sewer — 4.1%

      

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

    $ 750       $ 624,608   

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

      750         744,960   
     

 

 

  
      $ 1,369,568   
     

 

 

  

Total Tax-Exempt Municipal Securities — 165.0%
(identified cost $56,334,319)

       $ 55,259,732   
     

 

 

  

Taxable Municipal Securities — 0.0%

      
Security    Principal
Amount
(000’s omitted)		      Value  

Cogeneration — 0.0%

      

Northampton County Industrial Development Authority, (Northampton Generating), 5.00%, 12/31/23(4)

    $ 5       $ 0   
     

 

 

  

Total Taxable Municipal Securities — 0.0%
(identified cost $5,427)

       $ 0   
     

 

 

  

Total Investments — 165.0%
(identified cost $56,339,746)

       $ 55,259,732   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (63.2)%

       $ (21,175,284 ) 
     

 

 

  

Other Assets, Less Liabilities — (1.8)%

       $ (587,260 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 33,497,188   
     

 

 

  

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 August 31, 2013, 29.9% 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 2.6% to 13.7% of total investments.

 

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

 

(2) Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $519,768.

 

(3) Defaulted bond.

 

(4) Represents a payment-in-kind security which may pay all or a portion of interest in additional par.

 

4

 

 

A summary of open financial instruments at August 31, 2013 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Depreciation		  
12/13    50 U.S. Long Treasury Bond    Short    $     (6,588,581 )    $     (6,595,313 )    $     (6,732 ) 

At August 31, 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 August 31, 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 $6,732.

The cost and unrealized appreciation (depreciation) of investments of the Trust at August 31, 2013, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     54,661,776   
  

 

 

  

Gross unrealized appreciation

    $ 1,374,346   

Gross unrealized depreciation

      (2,426,390 ) 
  

 

 

  

Net unrealized depreciation

    $ (1,052,044 ) 
  

 

 

  

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, 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 Municipal Securities

    $ —      $ 55,259,732       $ —       $ 55,259,732   

Taxable Municipal Securities

      —        0         —         0   

Total Investments

    $ —      $     55,259,732       $ —       $     55,259,732   
Liability Description                               

Futures Contracts

    $     (6,732 )    $ —       $ —       $ (6,732 ) 

Total

    $ (6,732 )    $ —       $ —       $ (6,732 ) 

The Trust held no investments or other financial instruments as of November 30, 2012 whose fair value was determined using Level 3 inputs. At August 31, 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:   October 25, 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:   October 25, 2013

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   October 25, 2013