N-Q 1 a08-8596_1nq.htm N-Q

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act File Number

 

811-09151

 

 

 

 

 

 

Eaton Vance Pennsylvania Municipal Income Trust

(Exact Name of Registrant as Specified in Charter)

 

 

 

The Eaton Vance Building,
255 State Street, Boston, Massachusetts

 

02109

(Address of Principal Executive Offices)

 

(Zip code)

 

 

 

Maureen A. Gemma

Eaton Vance Management, 255 State Street, Boston, Massachusetts 02109

(Name and Address of Agent for Service)

 

Registrant’s Telephone Number, Including Area Code:

 

(617) 482-8260

 

 

 

Date of Fiscal Year End:

 

November 30

 

 

 

Date of Reporting Period:

 

February 29, 2008

 

 


 

Item 1. Schedule of Investments

 


 

Eaton Vance Pennsylvania Municipal Income Trust

as of February 29, 2008

 

 

PORTFOLIO OF INVESTMENTS (Unaudited)

 

 

Tax-Exempt Investments — 169.2%

 

Principal

 

 

 

 

 

Amount

 

 

 

 

 

(000’s omitted)

 

Security

 

Value

 

Cogeneration — 5.8%

 

 

 

$

440

 

Carbon County Industrial Development Authority, (Panther Creek Partners), (AMT), 6.65%, 5/1/10

 

$

449,434

 

500

 

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

 

505,815

 

500

 

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

 

499,965

 

675

 

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

 

632,961

 

 

 

 

 

$

2,088,175

 

Education — 1.8%

 

 

 

$

600

 

Philadelphia Higher Education Facilities Authority, (Chestnut Hill College), Prerefunded to 10/1/09, 6.00%, 10/1/29

 

$

639,006

 

 

 

 

 

$

639,006

 

Electric Utilities — 3.2%

 

 

 

$

600

 

Pennsylvania Economic Development Financing Authority, (Reliant Energy, Inc.), (AMT), 6.75%, 12/1/36

 

$

594,276

 

600

 

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

 

561,246

 

 

 

 

 

$

1,155,522

 

Escrowed/Prerefunded — 16.7%

 

 

 

$

600

 

Allegheny County Industrial Development Authority, (Residential Resources, Inc.), Prerefunded to 9/1/11, 6.50%, 9/1/21

 

$

663,948

 

600

 

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

 

666,828

 

1,500

 

Chester County Health and Educational Facility Authority, (Devereux Foundation), Prerefunded to 11/1/09, 6.00%, 11/1/29

 

1,590,990

 

500

 

Monroe County Hospital Authority, (Pocono Medical Center), Prerefunded to 1/1/14, 6.00%, 1/1/43

 

558,890

 

925

 

Montgomery County Higher Education and Health Authority, (Foulkeways at Gwynedd), Prerefunded to 11/15/09, 6.75%, 11/15/30

 

994,236

 

1,500

 

Pennsylvania Higher Educational Facilities Authority, (Drexel University), Prerefunded to 5/1/09, 6.00%, 5/1/29

 

1,555,230

 

 

 

 

 

$

6,030,122

 

Health Care-Miscellaneous — 0.3%

 

 

 

$

100

 

Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37

 

$

93,841

 

 

 

 

 

$

93,841

 

Hospital — 12.1%

 

 

 

$

625

 

Lancaster County Hospital Authority, (Lancaster General Hospital), 4.50%, 3/15/36

 

$

523,975

 

1,250

 

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

 

1,179,475

 

1,500

 

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

 

1,267,080

 

850

 

Pennsylvania Higher Educational Facilities Authority, (UPMC Health System), 6.00%, 1/15/31

 

890,825

 

500

 

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

 

511,630

 

 

 

 

 

$

4,372,985

 

 

1


 

Housing — 14.7%

 

 

 

$

525

 

Allegheny County Residential Finance Authority, (Single Family Mortgages), (AMT), 4.95%, 11/1/37

 

$

464,147

 

1,260

 

Allegheny County Residential Finance Authority, (Single Family Mortgages), (AMT), 5.00%, 5/1/35

 

1,122,862

 

1,000

 

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

 

816,470

 

1,200

 

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

 

1,099,236

 

1,000

 

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

 

872,980

 

1,000

 

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

 

905,910

 

 

 

 

 

$

5,281,605

 

Industrial Development Revenue — 9.0%

 

 

 

$

500

 

New Morgan Industrial Development Authority, (Browning-Ferris Industries, Inc.), (AMT), 6.50%, 4/1/19

 

$

476,645

 

1,000

 

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

 

979,960

 

500

 

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

 

437,215

 

1,550

 

Puerto Rico Port Authority, (American Airlines), (AMT), 6.25%, 6/1/26

 

1,336,518

 

 

 

 

 

$

3,230,338

 

Insured-Education — 18.7%

 

 

 

$

500

 

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

 

$

503,825

 

1,900

 

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

 

1,859,112

 

1,000

 

Northampton County Higher Education Facilities Authority, (Lafayette College), (MBIA), 5.00%, 11/1/27

 

950,660

 

1,000

 

Pennsylvania Higher Educational Facilities Authority, (Bryn Mawr College), (AMBAC), 5.125%, 12/1/29

 

972,450

 

500

 

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

 

476,390

 

2,000

 

Pennsylvania Higher Educational Facilities Authority, (State System Higher Education), (FSA), 5.00%, 6/15/24

 

1,977,900

 

 

 

 

 

$

6,740,337

 

Insured-Electric Utilities — 3.5%

 

 

 

$

1,380

 

Lehigh County Industrial Development Authority, (PPL Electric Utilities Corp.), (FGIC), 4.75%, 2/15/27

 

$

1,251,494

 

 

 

 

 

$

1,251,494

 

Insured-Escrowed/Prerefunded — 27.5%

 

 

 

$

650

 

Berks County Municipal Authority, (Reading Hospital and Medical Center), (FSA), Prerefunded to 11/1/09, 6.00%, 11/1/29

 

$

696,410

 

2,600

 

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

 

2,468,726

 

1,000

 

Philadelphia, (FSA), Prerefunded to 3/15/09, 5.00%, 3/15/28

 

1,032,860

 

1,801

 

Puerto Rico Electric Power Authority, (FSA), Prerefunded to 7/1/10, 5.25%, 7/1/29 (2)

 

1,911,474

 

2,500

 

Puerto Rico Electric Power Authority, (FSA), Prerefunded to 7/1/10, 5.25%, 7/1/29 (2)

 

2,654,049

 

2,000

 

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

 

1,158,680

 

 

 

 

 

$

9,922,199

 

Insured-General Obligations — 5.3%

 

 

 

$

850

 

Hollidaysburg School District, (FSA), 4.75%, 3/15/30

 

$

793,806

 

1,000

 

Puerto Rico, (FSA), Variable Rate, 11.337%, 7/1/27 (3) (4)

 

1,117,230

 

 

 

 

 

$

1,911,036

 

Insured-Hospital — 13.3%

 

 

 

$

500

 

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

 

$

463,230

 

1,500

 

Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (MBIA), 5.25%, 7/1/29

 

1,475,310

 

3,000

 

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

 

2,854,470

 

 

 

 

 

$

4,793,010

 

Insured-Lease Revenue/Certificates of Participation — 3.1%

 

 

 

$

1,195

 

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

 

$

1,100,834

 

 

 

 

 

$

1,100,834

 

 

2


 

Insured-Special Tax Revenue — 6.4%

 

 

 

$

1,000

 

Pittsburgh and Allegheny County Public Auditorium Authority, (AMBAC), 5.00%, 2/1/24

 

$

982,730

 

9,870

 

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

 

565,452

 

1,690

 

Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/44

 

186,762

 

3,350

 

Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/45

 

348,601

 

2,100

 

Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/46

 

205,863

 

 

 

 

 

$

2,289,408

 

Insured-Transportation — 8.9%

 

 

 

$

500

 

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

 

$

464,285

 

1,005

 

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

 

988,669

 

1,800

 

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

 

1,767,366

 

 

 

 

 

$

3,220,320

 

Insured-Water and Sewer — 5.9%

 

 

 

$

585

 

Chester County Industrial Development Authority, (Aqua Pennsylvania, Inc.), (FGIC), (AMT), 5.00%, 2/1/40

 

$

515,754

 

875

 

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

 

765,564

 

500

 

Delaware County Industrial Development Authority, (Water Facilities), (FGIC), (AMT), 6.00%, 6/1/29

 

501,195

 

360

 

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

 

342,245

 

 

 

 

 

$

2,124,758

 

Senior Living/Life Care — 5.6%

 

 

 

$

1,000

 

Cliff House Trust, (AMT), 6.625%, 6/1/27 (5)

 

$

633,820

 

500

 

Crawford County Hospital Authority, (Wesbury United Methodist Community), 6.25%, 8/15/29

 

463,075

 

500

 

Lancaster County Hospital Authority, (Willow Valley Retirement Communities), 5.875%, 6/1/31

 

499,945

 

200

 

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

 

178,348

 

300

 

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

 

252,360

 

 

 

 

 

$

2,027,548

 

Transportation — 5.5%

 

 

 

$

1,200

 

Delaware River Joint Toll Bridge Commission, 5.00%, 7/1/28

 

$

1,118,664

 

105

 

Erie Municipal Airport Authority, (AMT), 5.50%, 7/1/09

 

105,604

 

485

 

Erie Municipal Airport Authority, (AMT), 5.875%, 7/1/16

 

476,197

 

270

 

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

 

271,296

 

 

 

 

 

$

1,971,761

 

Water and Sewer — 1.9%

 

 

 

$

750

 

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

 

$

696,668

 

 

 

 

 

$

696,668

 

Total Tax-Exempt Investments
(identified cost $62,550,105)

 

$

60,940,967

 

 

 

 

 

 

 

 

Auction-Rate Securities — 2.8%

 

 

 

 

 

 

 

 

 

 

 

Principal

 

 

 

 

 

 

Amount

 

 

 

 

 

(000’s omitted)

 

Description

 

Value

 

$

1,000

 

Pennsylvania Housing Finance Agency, Rental Housing, (MBIA), Variable Rate. 7.50%, 7/1/20 (6)

 

$

1,000,000

 

 

 

 

 

 

 

 

Total Auction-Rate Securities
(identified cost $1,000,000)

 

$

1,000,000

 

 

Total Investments — 172.0%
(identified cost $63,550,105)

 

$

61,940,967

 

Other Assets, Less Liabilities — (9.5)%

 

$

(3,422,018)

 

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (62.5)%

 

$

(22,510,369)

 

Net Assets Applicable to Common Shares — 100.0%

 

$

36,008,580

 

 

3


 

AGC

—

Assured Guaranty 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

FSA

—

Financial Security Assurance, Inc.

MBIA

—

Municipal Bond Insurance Association

 

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, 2008, 55.5% 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 2.9% to 19.0% of total investments.

 

(1)

 

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

(2)

 

Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Trust.

(3)

 

Security exempt from registration under Rule 144A of the Securities Act of 1933.  These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers.  At February 29, 2008, the aggregate value of the securities is $1,117,230 or 3.1% of the Trust’s net assets applicable to common shares.

(4)

 

Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at February 29, 2008.

(5)

 

Security is in default with respect to scheduled principal payments.

(6)

 

Security is subject to redemption at each auction date. The stated interest represents the rate in effect at February 29, 2008.

 

A summary of financial instruments at February 29, 2008 is as follows:

 

Futures Contracts

 

Expiration

 

 

 

 

 

Aggregate

 

 

 

Net Unrealized

 

Date

 

Contracts

 

Position

 

Cost

 

Value

 

Depreciation

 

6/08

 

95 U.S. Treasury Bond

 

Short

 

$

(10,912,050

)

$

(11,269,375

)

$

(357,325

)

 

Interest Rate Swaps

 

Counterparty

 

Notional
Amount

 

Annual
Fixed
Rate Paid
By Fund

 

Floating Rate
Paid To Fund

 

Effective Date/
Termination Date

 

Net Unrealized
Depreciation

 

Lehman Brothers, Inc.

 

$

1,825,000

 

4.985

%

3-month
USD-LIBOR-BBA

 

September 28, 2008/ September 28, 2038

 

$

(9,865

)

Morgan Stanley Capital Services, Inc.

 

$

925,000

 

5.428

%

3-month
USD-LIBOR-BBA

 

September 10, 2008/ September 10, 2038

 

 

(70,225

)

 

 

 

 

 

 

 

 

 

 

$

(80,090

)

 

The effective date represents the date on which the Trust and the counterparty to the interest rate swap contract begin interest payment accruals.

 

At February 29, 2008, the Trust had sufficient cash and/or securities to cover commitments under these contracts.

 

The cost and unrealized appreciation (depreciation) of investments of the Trust at February 29, 2008, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

 

$

59,290,277

 

Gross unrealized appreciation

 

 

1,548,479

 

Gross unrealized depreciation

 

(3,113,569

)

Net unrealized depreciation

 

$

(1,565,090

)

 

The Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157 (FAS 157), “Fair Value Measurements”, effective December 1, 2007.  FAS 157 established a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

 

4


 

·                  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)

 

At February 29, 2008, the inputs used in valuing the Trust’s investments, which are carried at value, were as follows:

 

 

 

Valuation Inputs

 

Investments in
Securities

 

Other Financial
Instruments*

 

Level 1

 

Quoted Prices

 

$

—

 

$

(357,325

)

Level 2

 

Other Significant Observable Inputs

 

 

61,940,967

 

 

(80,090

)

Level 3

 

Significant Unobservable Inputs

 

 

—

 

 

—

 

Total

 

 

 

$

61,940,967

 

$

(437,415

)

 

*Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as futures, forwards and swap contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.

 

The Trust held no investments or other financial instruments as of November 30, 2007 whose fair value was determined using Level 3 inputs.

 

The Trust generally uses a pricing vendor to provide evaluations for its investments in municipal bonds, which are derived from the vendor’s pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, benchmark curves or information pertaining to the issuer. The pricing vendor may use a matrix approach, which considers information regarding securities with similar characteristics to determine the evaluation for a security. The Trust’s investments in interest rate swaps are normally valued using valuations provided by a pricing vendor. Such vendor valuations are based on the present value of fixed and projected floating rate cash flows over the term of a swap contract. Future cash flows are discounted to their present value using swap curves provided by electronic data services or by broker/dealers. The Trust’s investments in futures contracts are valued based on the closing price on the primary exchange on which such contracts trade.

 

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 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 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 21, 2008

 

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 21, 2008

 

 

 

By:

 

/s/ Barbara E. Campbell

 

 

Barbara E. Campbell

 

 

Treasurer

 

 

 

Date:

 

April 21, 2008