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, 2016

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Pennsylvania Municipal Income Trust

February 29, 2016

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Municipal Securities — 154.4%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Cogeneration — 0.4%

      

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

    $ 378       $ 162,990   
     

 

 

  
   $ 162,990   
     

 

 

  

Education — 28.3%

      

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

    $ 1,050       $ 1,202,659   

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

      500         541,610   

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

      1,200         1,281,096   

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

      750         872,737   

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

      500         552,555   

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

      45         53,378   

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

      65         77,524   

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

      140         167,768   

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/27

      90         106,650   

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

      130         151,572   

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/31

      110         127,340   

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/40

      205         229,120   

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

      440         496,588   

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

      625         672,988   

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

      600         668,190   

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

      560         624,322   

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

      750         841,598   

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

      750         873,090   

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

      250         294,988   

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

      575         653,884   
     

 

 

  
   $ 10,489,657   
     

 

 

  

Escrowed/Prerefunded — 8.2%

      

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

    $ 315       $ 347,974   

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

      220         243,030   

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

      435         480,758   

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

      1,000         1,128,510   

Pennsylvania Turnpike Commission, Prerefunded to 6/1/18, 5.625%, 6/1/29

      750         832,447   

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

      15         16,969   
     

 

 

  
   $ 3,049,688   
     

 

 

  

General Obligations — 10.2%

      

Chester County, 5.00%, 7/15/27

    $ 500       $ 567,185   

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

      30         32,591   

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

      1,000         1,268,060   

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

      985         1,061,249   

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

      750         858,518   
     

 

 

  
   $ 3,787,603   
     

 

 

  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Hospital — 25.6%

      

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

    $ 500       $ 564,495   

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

      750         822,585   

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

      750         860,805   

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

      500         519,420   

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

      750         827,970   

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

      1,485         1,526,922   

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

      1,095         1,229,302   

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

      500         561,020   

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

      250         283,305   

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

      675         752,902   

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

      250         298,177   

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

      1,085         1,247,728   
     

 

 

  
   $ 9,494,631   
     

 

 

  

Housing — 1.7%

      

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

    $ 135       $ 136,810   

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

      175         184,062   

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

      295         296,513   
     

 

 

  
   $ 617,385   
     

 

 

  

Industrial Development Revenue — 10.8%

      

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

    $ 750       $ 759,720   

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

      200         226,082   

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

      750         809,257   

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

      250         284,728   

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

      1,115         1,432,296   

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

      500         507,035   
     

 

 

  
   $ 4,019,118   
     

 

 

  

Insured-Education — 8.3%

      

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

    $ 500       $ 539,980   

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

      1,105         1,170,780   

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

      375         408,544   

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

      875         953,269   
     

 

 

  
   $ 3,072,573   
     

 

 

  

Insured-Electric Utilities — 2.9%

      

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

    $ 1,080       $ 1,084,730   
     

 

 

  
   $ 1,084,730   
     

 

 

  

Insured-Escrowed/Prerefunded — 5.2%

      

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

    $ 2,000       $ 1,931,640   
     

 

 

  
   $ 1,931,640   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-General Obligations — 6.8%

      

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

    $ 475       $ 509,832   

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

      25         27,115   

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

      750         853,042   

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

      750         851,265   

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

      250         286,960   
     

 

 

  
   $ 2,528,214   
     

 

 

  

Insured-Hospital — 5.0%

      

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

    $ 250       $ 323,115   

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

      1,440         1,541,304   
     

 

 

  
   $ 1,864,419   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 4.9%

      

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

    $ 500       $ 552,490   

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

      1,195         1,257,702   
     

 

 

  
   $ 1,810,192   
     

 

 

  

Insured-Special Tax Revenue — 2.4%

      

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

    $ 610       $ 692,887   

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

      1,235         190,499   
     

 

 

  
   $ 883,386   
     

 

 

  

Insured-Transportation — 9.2%

      

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

    $ 525       $ 551,849   

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

      1,005         1,009,301   

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

      1,800         1,844,514   
     

 

 

  
   $ 3,405,664   
     

 

 

  

Insured-Water and Sewer — 1.5%

      

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

    $ 500       $ 568,985   
     

 

 

  
   $ 568,985   
     

 

 

  

Senior Living/Life Care — 1.4%

      

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

    $ 100       $ 112,213   

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

      200         201,862   

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

      200         201,666   
     

 

 

  
   $ 515,741   
     

 

 

  

Special Tax Revenue — 0.3%

      

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

    $ 110       $ 123,776   
     

 

 

  
   $ 123,776   
     

 

 

  

Transportation — 15.2%

      

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

    $ 465       $ 517,931   

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

      285         317,441   

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

      450         486,774   

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

      1,000         1,101,750   

Pennsylvania Turnpike Commission, 5.35%, 12/1/30

      1,430         1,640,625   

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

      410         472,099   

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

      970         1,094,567   
     

 

 

  
   $ 5,631,187   
     

 

 

  

Utilities — 1.8%

      

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

    $ 600       $ 673,470   
     

 

 

  
   $ 673,470   
     

 

 

  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Water and Sewer — 4.3%

      

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

    $ 750       $ 763,103   

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

      750         851,407   
     

 

 

  
   $ 1,614,510   
     

 

 

  

Total Tax-Exempt Municipal Securities — 154.4%
(identified cost $52,648,394)

       $ 57,329,559   
     

 

 

  

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)

    $ 17       $ 7,295   
     

 

 

  

Total Taxable Municipal Securities — 0.0%(4)
(identified cost $16,897)

    

    $ 7,295   
     

 

 

  

Total Investments — 154.4%
(identified cost $52,665,291)

   

    $ 57,336,854   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (11.3)%

  

    $ (4,200,788 ) 
     

 

 

  

Institutional MuniFund Term Preferred Shares, at Liquidation Value — (45.7)%

  

    $ (16,975,000 ) 
     

 

 

  

Other Assets, Less Liabilities — 2.6%

  

    $ 967,946   
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

  

    $ 37,129,012   
     

 

 

  

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 February 29, 2016, 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 1.8% to 14.8% 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, as amended. These securities may be sold in certain transactions in reliance on an exemption from registration (normally to qualified institutional buyers). At February 29, 2016, the aggregate value of these securities is $759,720 or 2.0% of the Trust’s net assets applicable to common shares.

 

(4) Amount is less than 0.05%.

Futures Contracts

 

Description

    Contracts      Position    Expiration
Month/Year		    Aggregate Cost     Value     Net Unrealized
Appreciation		  

Interest Rate Futures

                
U.S. Long Treasury Bond      10       Short    Jun-16    $     (1,653,341 )    $     (1,645,313 )    $ 8,028   
               

 

 

  
  $     8,028   
               

 

 

  

 

4

 

 

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.

CIFG

   -   CIFG Assurance North America, Inc.

FGIC

   -   Financial Guaranty Insurance Company

NPFG

   -   National Public Finance Guaranty Corp.

SFMR

   -   Single Family Mortgage Revenue

At February 29, 2016, the Trust had sufficient cash and/or securities to cover commitments under open derivative 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 February 29, 2016, the aggregate fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in an asset position and whose primary underlying risk exposure is interest rate risk was $8,028.

The cost and unrealized appreciation (depreciation) of investments of the Trust at February 29, 2016, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     51,835,303   
  

 

 

  

Gross unrealized appreciation

    $ 5,036,967   

Gross unrealized depreciation

      (285,416 ) 
  

 

 

  

Net unrealized appreciation

    $ 4,751,551   
  

 

 

  

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, 2016, 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

    $ —       $ 57,329,559       $     —       $ 57,329,559   

Taxable Municipal Securities

      —         7,295         —         7,295   

Total Investments

    $ —       $ 57,336,854       $ —       $ 57,336,854   

Futures Contracts

    $ 8,028       $ —       $ —       $ 8,028   

Total

    $     8,028       $     57,336,854       $ —       $     57,344,882   

The carrying amount of the Institutional MuniFund Term Preferred Shares (iMTP Shares) at February 29, 2016 approximated its fair value. If measured at fair value, iMTP Shares would have been considered as Level 2 in the fair value hierarchy at February 29, 2016.

The Trust held no investments or other financial instruments as of November 30, 2015 whose fair value was determined using Level 3 inputs. At February 29, 2016, 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/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   April 25, 2016

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:   April 25, 2016

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   April 25, 2016