Eaton Vance Municipal Income Term Trust

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-22777

Investment Company Act File Number

Eaton Vance Municipal Income Term 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)

January 31

Date of Fiscal Year End

October 31, 2013

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Municipal Income Term Trust

October 31, 2013

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 170.2%

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Bond Bank — 1.9%

      

Rickenbacker Port Authority, OH, (OASBO Expanded Asset Pooled Financing Program), 5.375%, 1/1/32

    $ 3,500       $ 3,432,135   
     

 

 

  
      $ 3,432,135   
     

 

 

  

Education — 12.4%

      

Central Washington University, 3.25%, 5/1/29

    $ 2,910       $ 2,482,055   

Central Washington University, 3.25%, 5/1/30

      3,265         2,721,476   

Portland Community College District, OR, 3.25%, 6/15/32(1)(2)

      10,250         8,671,894   

Portland Community College District, OR, 3.25%, 6/15/32

      30         25,381   

Rutgers State University, NJ, 4.00%, 5/1/30(1)

      8,425         8,498,045   
     

 

 

  
      $ 22,398,851   
     

 

 

  

Electric Utilities — 13.0%

      

Apache County, AZ, Industrial Development Authority, (Tucson Electric Power Co.), 4.50%, 3/1/30

    $ 2,980       $ 2,818,007   

Lower Colorado River Authority, TX, (LCRA Transmission Services Corp.), 4.00%, 5/15/33

      7,500         6,960,525   

Pima County, AZ, Industrial Development Authority, (Tucson Electric Power Co.), 4.50%, 6/1/30

      2,000         1,890,260   

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

      1,000         731,040   

Salt River Agricultural Improvement and Power District, AZ, 5.00%, 12/1/30(1)

      10,000         10,986,800   
     

 

 

  
      $ 23,386,632   
     

 

 

  

General Obligations — 35.4%

      

Cambridge, MA, 3.00%, 2/15/28

    $ 345       $ 319,101   

Hawaii, 5.00%, 11/1/28(1)(2)

      8,000         9,018,320   

New York, 3.00%, 3/1/32(1)(2)

      10,000         8,638,396   

Pennsylvania, 4.00%, 4/1/29(1)(2)

      10,000         10,085,800   

San Bernardino Community College District, CA, 4.00%, 8/1/30(1)(2)

      10,000         9,517,500   

Santa Clara County, CA, (Election of 2008), 3.00%, 8/1/31

      5,000         4,122,350   

Scarborough, ME, 3.25%, 11/1/29

      1,235         1,113,254   

Tempe Union High School District No. 213, AZ, 4.00%, 7/1/29(1)(2)

      4,200         4,156,404   

Tempe Union High School District No. 213, AZ, 4.00%, 7/1/30(1)(2)

      4,350         4,246,252   

University City, MO, School District, 0.00%, 2/15/32

      3,000         1,248,360   

University City, MO, School District, 0.00%, 2/15/33

      3,000         1,177,440   

Washington, 4.00%, 7/1/29(1)

      10,000         10,176,300   
     

 

 

  
      $ 63,819,477   
     

 

 

  

Hospital — 19.2%

      

California Health Facilities Financing Authority, (St. Joseph Health System), 5.00%, 7/1/29(1)(2)

    $ 10,000       $ 10,605,200   

Delaware Health Facilities Authority, (Nanticoke Memorial Hospital), 5.00%, 7/1/28

      2,500         2,322,725   

Kent Hospital Finance Authority, MI, (Spectrum Health System), 5.00%, 11/15/29(2)

      4,000         4,128,120   

Massachusetts Development Finance Agency, (Lowell General Hospital), 5.00%, 7/1/37

      4,650         4,459,769   

Muskingum County, OH, (Genesis HealthCare System Obligated Group), 5.00%, 2/15/33

      2,610         2,213,306   

Onondaga Civic Development Corp., NY, (St. Joseph’s Hospital Health Center), 4.50%, 7/1/32

      715         609,809   

 

1

 

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Tarrant County Cultural Education Facilities Finance Corp., TX, (Baylor Health Care System), 4.00%, 11/15/32(1)

    $ 10,000       $ 8,793,500   

Yavapai County, AZ, Industrial Development Authority, (Yavapai Regional Medical Center), 5.00%, 8/1/28

      1,500         1,517,790   
     

 

 

  
      $ 34,650,219   
     

 

 

  

Housing — 8.8%

      

Pennsylvania Housing Finance Agency, SFMR, (AMT), 3.90%, 10/1/28(1)

    $ 5,500       $ 5,224,505   

Pennsylvania Housing Finance Agency, SFMR, (AMT), 4.20%, 10/1/33(1)

      1,500         1,358,490   

Virginia Housing Development Authority, 3.625%, 1/1/31(1)(2)

      10,000         9,220,400   
     

 

 

  
      $ 15,803,395   
     

 

 

  
     

Industrial Development Revenue — 10.6%

      

Louisiana Public Facilities Authority, (Cleco Power LLC), 4.25%, 12/1/38

    $ 5,000       $ 4,480,300   

Massachusetts Development Finance Agency, (Covanta Energy), (AMT), 4.875%, 11/1/27

      2,500         2,240,500   

Matagorda County, TX, Navigation District No. 1, (AEP Texas Central Co.),
Series 2008-1, 4.00%, 6/1/30

      1,155         1,039,096   

Matagorda County, TX, Navigation District No. 1, (AEP Texas Central Co.),
Series 2008-2, 4.00%, 6/1/30

      3,845         3,459,154   

New Jersey Economic Development Authority, (Continental Airlines), (AMT), 7.00%, 11/15/30

      750         749,977   

New York Liberty Development Corp., (Goldman Sachs Group, Inc.), 5.25%, 10/1/35

      4,895         5,253,706   

Phenix City, AL, Industrial Development Board, (MeadWestvaco Coated Board), 3.625%, 5/15/30

      360         284,292   

Phenix City, AL, Industrial Development Board, (MeadWestvaco Coated Board), (AMT), 4.125%, 5/15/35

      2,140         1,637,849   
     

 

 

  
      $ 19,144,874   
     

 

 

  

Insured-Cogeneration — 1.1%

      

Pennsylvania Economic Development Financing Authority, (Colver), (AMBAC), (AMT), 4.625%, 12/1/18

    $ 2,000       $ 1,995,900   
     

 

 

  
      $ 1,995,900   
     

 

 

  

Insured-Electric Utilities — 2.3%

      

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/30

    $ 5,000       $ 4,198,600   
     

 

 

  
      $ 4,198,600   
     

 

 

  

Insured-General Obligations — 1.1%

      

Illinois, (AGM), 5.00%, 4/1/28

    $ 1,905       $ 1,927,746   
     

 

 

  
      $ 1,927,746   
     

 

 

  

Insured-Industrial Development Revenue — 2.1%

      

Massachusetts Port Authority, (Delta Airlines, Inc.), (AMBAC), (AMT), 5.00%, 1/1/27

    $ 4,200       $ 3,864,168   
     

 

 

  
      $ 3,864,168   
     

 

 

  

Insured-Transportation — 1.4%

      

A.B. Won Pat International Airport Authority, Guam, (AGM), (AMT), 6.00%, 10/1/34

    $ 2,500       $ 2,584,775   
     

 

 

  
      $ 2,584,775   
     

 

 

  

Insured-Water Revenue — 2.1%

      

Detroit, MI, Water Supply System, (NPFG), 5.00%, 7/1/26

    $ 4,000       $ 3,840,120   
     

 

 

  
      $ 3,840,120   
     

 

 

  

Lease Revenue/Certificates of Participation — 6.0%

      

Charleston Educational Excellence Financing Corp., SC, (Charleston County School District), 5.00%, 12/1/30(1)(2)

    $ 10,000       $ 10,805,500   
     

 

 

  
      $ 10,805,500   
     

 

 

  

 

2

 

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Other Revenue — 11.4%

      

Illinois Finance Authority, (Peoples Gas Light and Coke Co.), 4.00%, 2/1/33

    $ 1,500       $ 1,343,265   

Oregon Department of Administrative Services, Lottery Revenue, 4.00%, 4/1/29

      80         81,382   

Oregon Department of Administrative Services, Lottery Revenue, 4.00%, 4/1/29(1)

      10,000         10,172,700   

Salt Verde Financial Corp., AZ, Senior Gas Revenue, 5.00%, 12/1/32

      3,960         4,007,678   

Texas Municipal Gas Acquisition and Supply Corp. III, Gas Supply Revenue, 5.00%, 12/15/29

      5,000         4,934,850   
     

 

 

  
      $ 20,539,875   
     

 

 

  

Senior Living/Life Care — 3.2%

      

Lorain County Port Authority, OH, (Kendal at Oberlin), 5.00%, 11/15/30

    $ 1,250       $ 1,281,225   

Massachusetts Development Finance Agency, (North Hill Communities), 3.50%, 11/15/16

      395         392,689   

Massachusetts Development Finance Agency, (North Hill Communities), 4.00%, 11/15/17

      695         689,364   

Massachusetts Development Finance Agency, (North Hill Communities), 4.50%, 11/15/18

      710         703,369   

New Jersey Economic Development Authority, (United Methodist Homes of New Jersey), 4.00%, 7/1/27

      765         695,178   

New Jersey Economic Development Authority, (United Methodist Homes of New Jersey), 4.00%, 7/1/28

      910         808,744   

Warren County, OH, (Otterbein Homes Obligated Group), 5.00%, 7/1/28

      1,200         1,203,108   
     

 

 

  
      $ 5,773,677   
     

 

 

  

Special Tax Revenue — 15.3%

      

Connecticut, Special Tax Obligation, (Transportation Infrastructure), 5.00%, 1/1/28(1)(2)

    $ 10,000       $ 11,150,500   

Florida Department of Environmental Protection, (Everglades Restoration), 3.25%, 7/1/28

      2,930         2,647,431   

Florida Department of Environmental Protection, (Everglades Restoration), 3.25%, 7/1/29

      3,030         2,662,431   

Florida Department of Environmental Protection, (Everglades Restoration), 3.50%, 7/1/32

      1,130         966,997   

New York Dormitory Authority, Sales Tax Revenue, 4.00%, 3/15/30(1)

      10,000         10,069,700   
     

 

 

  
      $ 27,497,059   
     

 

 

  

Student Loan — 1.0%

      

New Jersey Higher Education Student Assistance Authority, (AMT), 4.00%, 12/1/28

    $ 2,000       $ 1,846,360   
     

 

 

  
      $ 1,846,360   
     

 

 

  

Transportation — 17.4%

      

Dallas and Fort Worth, TX, (Dallas/Fort Worth International Airport), (AMT), 5.00%, 11/1/31

    $ 5,000       $ 5,069,100   

Grand Parkway Transportation Corp., TX, 4.95%, (0.00% until 10/1/23), 10/1/29

      800         494,504   

Grand Parkway Transportation Corp., TX, 5.05%, (0.00% until 10/1/23), 10/1/30

      1,500         915,585   

Grand Parkway Transportation Corp., TX, 5.20%, (0.00% until 10/1/23), 10/1/31

      2,000         1,211,860   

New Jersey Transportation Trust Fund Authority, 0.00%, 12/15/29

      10,000         4,447,000   

New Jersey Turnpike Authority, 5.00%, 1/1/30

      2,400         2,556,096   

Port Authority of New York and New Jersey, (AMT), 4.00%, 7/15/36(1)(2)

      10,000         8,938,696   

Route 460 Funding Corp., VA, 0.00%, 7/1/29

      2,880         1,138,061   

Route 460 Funding Corp., VA, 0.00%, 7/1/30

      2,670         969,824   

Route 460 Funding Corp., VA, 0.00%, 7/1/31

      3,000         1,017,480   

Triborough Bridge and Tunnel Authority, NY, 0.00%, 11/15/29

      3,665         1,777,195   

Triborough Bridge and Tunnel Authority, NY, 0.00%, 11/15/31

      6,600         2,797,344   
     

 

 

  
      $ 31,332,745   
     

 

 

  

 

3

 

 

                                                 
Security   

Principal

Amount

(000’s omitted)

      Value  

Water and Sewer — 4.5%

      

Detroit, MI, Water Supply System, 5.25%, 7/1/27

    $ 1,000       $ 948,500   

Northeast Ohio Regional Sewer District, 4.00%, 11/15/33(1)(2)

      7,500         7,209,450   
     

 

 

  
      $ 8,157,950   
     

 

 

  

Total Tax-Exempt Investments — 170.2%
(identified cost $326,492,954)

       $ 307,000,058   
     

 

 

  

Other Assets, Less Liabilities — (70.2)%

       $ (126,606,153 ) 
     

 

 

  

Net Assets — 100.0%

       $ 180,393,905   
     

 

 

  

The percentage shown for each investment category in the Portfolio of Investments is based on net assets.

 

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.

NPFG

   -   National Public Finance Guaranty Corp.

SFMR

   -   Single Family Mortgage Revenue

At October 31, 2013, the concentration of the Trust’s investments in the various states and territories, determined as a percentage of total investments, is as follows:

 

                        

New York

      12.4 %

Texas

      10.7 %

Others, representing less than 10% individually

      76.9 %

The Trust invests primarily in debt securities issued by 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 October 31, 2013, 6.0% 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 1.5% to 2.6% 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 $28,502,160

The Trust did not have any open financial instruments at October 31, 2013.

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

 

Aggregate cost

    $     196,466,396   
  

 

 

  

Gross unrealized appreciation

    $ 2,044,527   

Gross unrealized depreciation

      (21,765,865 ) 
  

 

 

  

Net unrealized depreciation

    $ (19,721,338 ) 
  

 

 

  

 

4

 

 

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 October 31, 2013, the hierarchy of inputs used in valuing the Trust’s investments, which are carried at value, were as follows:

 

Asset Description    Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

    $     —       $ 307,000,058       $ —       $     307,000,058   

Total Investments

    $ —       $     307,000,058       $     —       $ 307,000,058   

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 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 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 Municipal Income Term Trust

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   December 23, 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/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   December 23, 2013
By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   December 23, 2013