Eaton Vance California Municipal Income Trust

Regulatory Filings • Oct 27, 2011

N-Q 1 b88524a1nvq.htm EATON VANCE CALIFORNIA MUNICIPAL INCOME TRUST Eaton Vance California Municipal Income Trust PAGEBREAK

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

811-09157

Investment Company Act File Number

Eaton Vance California 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, 2011

Date of Reporting Period

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Item 1. Schedule of Investments

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Eaton Vance

California Municipal Income Trust

August 31, 2011

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 175.3%

	Principal
	Amount
Security	(000’s omitted)	Value
Education — 22.2%
California Educational Facilities Authority, (Claremont McKenna
College), 5.00%, 1/1/39	$ 3,135	$ 3,234,756
California Educational Facilities Authority, (Harvey Mudd
College), 5.25%, 12/1/31	195	206,807
California Educational Facilities Authority, (Harvey Mudd
College), 5.25%, 12/1/36	330	340,940
California Educational Facilities Authority, (Loyola Marymount
University), 5.00%, 10/1/30	745	760,861
California Educational Facilities Authority, (Lutheran
University), 5.00%, 10/1/29	2,770	2,636,818
California Educational Facilities Authority, (Santa Clara
University), 5.00%, 9/1/23	1,600	1,868,592
California Educational Facilities Authority, (Stanford
University),
5.125%, 1/1/31 (1)	4,000	4,011,280
California Educational Facilities Authority, (University of San
Francisco), 6.125%, 10/1/36	235	257,875
California Educational Facilities Authority, (University of
Southern California), 5.25%, 10/1/39	2,490	2,671,521
San Diego County, Certificates of Participation, (University of
San Diego), 5.375%, 10/1/41	2,500	2,419,200
University of California, 5.25%, 5/15/39	1,250	1,325,850
		$ 19,734,500
Electric Utilities — 6.9%
Chula Vista, (San Diego Gas and Electric), 5.875%, 2/15/34	$ 270	$ 296,171
Chula Vista, (San Diego Gas and Electric), (AMT),
5.00%, 12/1/27	2,275	2,346,230
Northern California Power Agency, 5.25%, 8/1/24	1,500	1,644,060
Southern California Public Power Authority, (Tieton Hydropower),
5.00%, 7/1/35	530	546,960
Vernon, Electric System Revenue, 5.125%, 8/1/21	1,300	1,300,364
		$ 6,133,785
Escrowed/Prerefunded — 0.0% (2)
California Health Facilities Financing Authority, (Providence
Health System), Prerefunded to 10/1/18, 6.50%, 10/1/38	$ 25	$ 32,995
		$ 32,995
General Obligations — 20.0%
California, 5.50%, 11/1/35	$ 1,600	$ 1,685,184
California, 6.00%, 4/1/38	750	818,805
California, (AMT), 5.05%, 12/1/36	1,590	1,535,956
California Department of Veterans Affairs, (AMT),
5.00%, 12/1/27	1,500	1,509,855
Palo Alto, (Election of 2008), 5.00%, 8/1/40	3,655	3,897,071
San Francisco Bay Area Rapid Transit District, (Election of
2004),
4.75%, 8/1/37 (3)	4,770	4,914,865
Santa Clara County, (Election of 2008),
5.00%, 8/1/39 (3)(4)	3,180	3,372,803
		$ 17,734,539
Hospital — 19.5%
California Health Facilities Financing Authority, (Catholic
Healthcare West), 5.625%, 7/1/32	$ 1,000	$ 1,019,740
California Health Facilities Financing Authority, (Cedars-Sinai
Medical Center), 5.00%, 8/15/39	1,000	977,880
California Health Facilities Financing Authority, (Providence
Health System), 6.50%, 10/1/38	1,475	1,631,453
California Statewide Communities Development Authority, (Cottage
Health System), 5.00%, 11/1/40	1,245	1,184,443
California Statewide Communities Development Authority, (John
Muir Health), 5.00%, 8/15/34	1,150	1,122,366
California Statewide Communities Development Authority, (John
Muir Health), 5.00%, 8/15/36	1,350	1,294,259
California Statewide Communities Development Authority, (Kaiser
Permanente), 5.50%, 11/1/32	1,565	1,572,762
California Statewide Communities Development Authority, (Sonoma
County Indian Health), 6.40%, 9/1/29	1,700	1,700,085
California Statewide Communities Development Authority, (Sutter
Health), 5.50%, 8/15/28	1,500	1,510,770
Torrance, (Torrance Memorial Medical Center), 5.50%, 6/1/31	1,900	1,905,491
Washington Township Health Care District, 5.00%, 7/1/32	2,780	2,723,427
Washington Township Health Care District, 5.25%, 7/1/29	700	700,007
		$ 17,342,683

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	Principal
	Amount
Security	(000’s omitted)	Value
Housing — 1.2%
Commerce, (Hermitage III Senior Apartments), 6.50%, 12/1/29	$ 690	$ 647,917
Commerce, (Hermitage III Senior Apartments), 6.85%, 12/1/29	406	374,527
		$ 1,022,444
Industrial Development Revenue — 3.5%
California Pollution Control Financing Authority, (Waste
Management, Inc.), (AMT), 5.125%, 11/1/23	$ 1,235	$ 1,260,083
California Statewide Communities Development Authority,
(Anheuser-Busch Cos., Inc.), (AMT), 4.80%, 9/1/46	2,000	1,816,260
		$ 3,076,343
Insured-Education — 7.1%
California Educational Facilities Authority, (Pepperdine
University), (AMBAC), 5.00%, 12/1/35	$ 2,660	$ 2,693,809
California Educational Facilities Authority, (Santa Clara
University), (NPFG), 5.00%, 9/1/23	1,250	1,459,837
California State University, (AMBAC), 5.00%, 11/1/33	2,140	2,163,176
		$ 6,316,822
Insured-Electric Utilities — 5.2%
California Pollution Control Financing Authority, (Pacific Gas
and Electric), (NPFG), (AMT), 5.35%, 12/1/16	$ 2,500	$ 2,553,900
Glendale, Electric System Revenue, (AGC), 5.00%, 2/1/31	2,000	2,093,120
		$ 4,647,020
Insured-Escrowed/Prerefunded — 3.4%
Foothill/Eastern Transportation Corridor Agency, Toll Road
Bonds, (AGM), (RADIAN), Escrowed to Maturity, 0.00%, 1/1/26	$ 5,130	$ 3,054,607
		$ 3,054,607
Insured-General Obligations — 5.2%
Coast Community College District, (Election of 2002), (AGM),
0.00%, 8/1/34	$ 6,485	$ 1,496,219
Coast Community College District, (Election of 2002), (AGM),
0.00%, 8/1/35	4,825	1,044,468
Sweetwater Union High School District, (Election of 2000),
(AGM), 0.00%, 8/1/25	4,720	2,115,079
		$ 4,655,766
Insured-Hospital — 14.0%
California Health Facilities Financing Authority, (Kaiser
Permanente), (BHAC), 5.00%, 4/1/37	$ 2,900	$ 2,935,989
California Statewide Communities Development Authority, (Kaiser
Permanente), (BHAC),
5.00%, 3/1/41 (3)	750	753,450
California Statewide Communities Development Authority, (Sutter
Health), (AGM),
5.75%, 8/15/27 (3)	3,735	3,738,473
California Statewide Communities Development Authority, (Sutter
Health), (AMBAC), (BHAC),
5.00%, 11/15/38 (3)	5,000	5,052,750
		$ 12,480,662
Insured-Lease Revenue/Certificates of
Participation — 11.8%
Anaheim Public Financing Authority, (Public Improvements),
(AGM), 0.00%, 9/1/17	$ 5,510	$ 4,347,941
Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity,
5.50%, 8/1/27	2,000	2,522,820
San Diego County Water Authority, Certificates of Participation,
(AGM),
5.00%, 5/1/38 (3)	3,500	3,598,595
		$ 10,469,356
Insured-Special Tax Revenue — 3.2%
Puerto Rico Sales Tax Financing Corp., (AMBAC),
0.00%, 8/1/54	$ 21,285	$ 1,289,871
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45	8,355	987,227
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46	5,270	581,386
		$ 2,858,484
Insured-Transportation — 9.0%
Alameda Corridor Transportation Authority, (AMBAC),
0.00%, 10/1/29	$ 5,000	$ 1,556,150
Alameda Corridor Transportation Authority, (NPFG),
0.00%, 10/1/31	4,500	1,223,775
Puerto Rico Highway and Transportation Authority, (AGC), (CIFG),
5.25%, 7/1/41 (3)	740	731,697
San Joaquin Hills Transportation Corridor Agency, Toll Road
Bonds, (NPFG), 0.00%, 1/15/32	10,000	1,738,200

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	Principal
	Amount
Security	(000’s omitted)	Value
San Jose Airport, (AGM), (AMBAC), (BHAC), (AMT),
5.00%, 3/1/37	$ 1,320	$ 1,298,511
San Jose Airport, (AGM), (AMBAC), (BHAC), (AMT),
6.00%, 3/1/47	1,350	1,406,457
		$ 7,954,790
Insured-Water and Sewer — 6.5%
East Bay Municipal Utility District, Water System Revenue,
(FGIC), (NPFG), 5.00%, 6/1/32 (3)	$ 2,000	$ 2,113,800
Los Angeles Department of Water and Power, (NPFG),
3.00%, 7/1/30	4,400	3,639,020
		$ 5,752,820
Other Revenue — 2.2%
California Infrastructure and Economic Development Bank,
(Performing Arts Center of Los Angeles), 5.00%, 12/1/32	$ 385	$ 386,363
California Infrastructure and Economic Development Bank,
(Performing Arts Center of Los Angeles), 5.00%, 12/1/37	500	482,950
Golden State Tobacco Securitization Corp., 5.30%, (0.00% until
12/1/12), 6/1/37	980	607,620
Golden State Tobacco Securitization Corp., 5.75%, 6/1/47	640	453,478
		$ 1,930,411
Senior Living/Life Care — 1.6%
California Statewide Communities Development Authority,
(Southern California Presbyterian Homes), 4.75%, 11/15/26	$ 175	$ 160,566
California Statewide Communities Development Authority,
(Southern California Presbyterian Homes), 4.875%, 11/15/36	700	597,457
California Statewide Communities Development Authority,
(Southern California Presbyterian Homes), 7.25%, 11/15/41	600	644,748
		$ 1,402,771
Special Tax Revenue — 16.5%
Bonita Canyon Public Financing Authority, 5.375%, 9/1/28	$ 1,000	$ 964,910
Brentwood Infrastructure Financing Authority, 5.00%, 9/2/26	285	234,652
Brentwood Infrastructure Financing Authority, 5.00%, 9/2/34	460	345,814
Corona Public Financing Authority, 5.80%, 9/1/20	970	971,979
Eastern California Municipal Water District, Special Tax
Revenue, District No. 2004-27 Cottonwood, 5.00%, 9/1/27	200	184,248
Eastern California Municipal Water District, Special Tax
Revenue, District No. 2004-27 Cottonwood, 5.00%, 9/1/36	500	429,340
Fontana Redevelopment Agency, (Jurupa Hills), 5.60%, 10/1/27	1,590	1,566,738
Lincoln Public Financing Authority, Improvement Bond Act of
1915, (Twelve Bridges), 6.20%, 9/2/25	895	895,206
Moreno Valley Unified School District, (Community School
District No. 2003-2), 5.75%, 9/1/24	420	420,492
Moreno Valley Unified School District, (Community School
District No. 2003-2), 5.90%, 9/1/29	750	750,180
Oakland Joint Powers Financing Authority, 5.40%, 9/2/18	1,470	1,493,505
Oakland Joint Powers Financing Authority, 5.50%, 9/2/24	900	908,973
San Francisco Bay Area Rapid Transit District, Sales Tax
Revenue, 5.00%, 7/1/28	2,400	2,666,592
Santaluz Community Facilities District No. 2,
6.10%, 9/1/21	250	251,525
Santaluz Community Facilities District No. 2,
6.20%, 9/1/30	490	491,215
Temecula Unified School District, 5.00%, 9/1/27	250	230,310
Temecula Unified School District, 5.00%, 9/1/37	400	342,068
Tustin Community Facilities District, 6.00%, 9/1/37	500	485,285
Whittier Public Financing Authority, (Greenleaf Avenue
Redevelopment), 5.50%, 11/1/23	1,000	1,000,590
		$ 14,633,622
Transportation — 12.1%
Bay Area Toll Authority, Toll Bridge Revenue, (San Francisco Bay
Area), 5.00%, 4/1/31	$ 2,000	$ 2,067,280
Bay Area Toll Authority, Toll Bridge Revenue, (San Francisco Bay
Area), 5.25%, 4/1/29	1,000	1,084,780
Los Angeles Department of Airports, (Los Angeles International
Airport), 5.00%, 5/15/35 (3)(4)	2,120	2,183,961
Los Angeles Department of Airports, (Los Angeles International
Airport), (AMT), 5.375%, 5/15/30	1,500	1,564,995
Port of Redwood City, (AMT), 5.125%, 6/1/30	1,170	1,049,513
San Francisco City and County Airport Commission, (San Francisco
International Airport), 5.00%, 5/1/35	2,760	2,823,149
		$ 10,773,678

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	Principal
	Amount
Security	(000’s omitted)	Value
Water and Sewer — 4.2%
California Department of Water Resources, 5.00%, 12/1/29	$ 1,840	$ 1,993,622
San Mateo, Sewer Revenue, 5.00%, 8/1/36	1,700	1,774,936
		$ 3,768,558
Total Tax-Exempt Investments — 175.3% (identified cost $156,323,997)		$ 155,776,656
Auction Preferred Shares Plus Cumulative Unpaid
Dividends — (56.2)%		$ (49,977,085	)
Other Assets, Less Liabilities — (19.1)%		$ (16,951,251	)
Net Assets Applicable to Common Shares — 100.0%		$ 88,848,320

| 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. |
| BHAC | - | Berkshire Hathaway Assurance Corp. |
| CIFG | - | CIFG Assurance North America, Inc. |
| FGIC | - | Financial Guaranty Insurance Company |
| NPFG | - | National Public Finance Guaranty Corp. |
| RADIAN | - | Radian Group, Inc. |
| The Trust invests primarily in debt securities issued by
California 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, 2011, 37.4% 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 0.5%
to 14.2% of total investments. | | |
| (1) | | Security (or a portion thereof) has been pledged to cover margin
requirements on open financial futures contracts. |
| (2) | | Amount is less than 0.05%. |
| (3) | | Security represents the municipal bond held by a trust that
issues residual interest bonds. |
| (4) | | Security (or a portion thereof) has been pledged as collateral
for residual interest bond transactions. The aggregate value of
such collateral is $1,581,764. |

A summary of open financial instruments at August 31, 2011 is as follows:

Futures Contracts

							Net Unrealized
Expiration			Aggregate				Appreciation
Date	Contracts	Position	Cost		Value		(Depreciation)
12/11	68 U.S. 10-Year Treasury Note	Short	$ (8,776,125	)	$ (8,774,125	)	$ 2,000
12/11	58 U.S. 30-Year Treasury Bond	Short	(7,863,879	)	(7,889,813	)	(25,934	)
							$ (23,934	)

Interest Rate Swaps

	Notional	Annual — Fixed Rate	Floating Rate	Effective Date/	Net Unrealized
Counterparty	Amount	Paid By Trust	Paid To Trust	Termination Date	Appreciation
Bank of America	$ 3,412,500	3.256 %	3-month USD- LIBOR-BBA	November 11, 2011/ November 11, 2041	$ 24,196

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

At August 31, 2011, 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 objectives. Because the Trust holds fixed-rate bonds, the value of these bonds may decrease if interest rates rise. To hedge against this risk, the Trust enters into interest rate swap contracts. The Trust also purchases and sells U.S. Treasury futures contracts to hedge against changes in interest rates.

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At August 31, 2011, the aggregate fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in an asset position and in a liability position and whose primary underlying risk exposure is interest rate risk was $26,196 and $25,934, respectively.

The cost and unrealized appreciation (depreciation) of investments of the Trust at August 31, 2011, as determined on a federal income tax basis, were as follows:

Aggregate cost	$
Gross unrealized appreciation	$ 6,908,818
Gross unrealized depreciation	(6,570,462	)
Net unrealized appreciation	$ 338,356

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, 2011, 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	$ —		$ 155,776,656	$ —	$ 155,776,656
Total Investments	$ —		$ 155,776,656	$ —	$ 155,776,656
Futures Contracts	$ 2,000		$ —	$ —	$ 2,000
Interest Rate Swaps	–		24,196	—	24,196
Total	$ 2,000		$ 155,800,852	$ —	$ 155,802,852
Liability Description
Futures Contracts	$ (25,934	)	$ —	$ —	$ (25,934	)
Total	$ (25,934	)	$ —	$ —	$ (25,934	)

The Trust held no investments or other financial instruments as of November 30, 2010 whose fair value was determined using Level 3 inputs. At August 31, 2011, 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.

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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.

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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 California Municipal Income Trust

By:	/s/ Cynthia J. Clemson Cynthia J. Clemson
	President
Date:	October 25, 2011

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, 2011
By:	/s/ Barbara E. Campbell Barbara E. Campbell
	Treasurer
Date:	October 25, 2011

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