Eaton Vance Michigan 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

811-09153

Investment Company Act File Number

Eaton Vance Michigan 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, 2015

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Michigan Municipal Income Trust

August 31, 2015

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 154.6%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Bond Bank — 2.3%

      

Michigan Municipal Bond Authority, 5.00%, 10/1/29

    $ 600       $ 674,118   
     

 

 

  
   $ 674,118   
     

 

 

  

Education — 7.1%

      

Michigan State University, 5.00%, 2/15/40

    $ 1,000       $ 1,114,000   

Oakland University, 5.00%, 3/1/42

      500         542,965   

Wayne State University, 5.00%, 11/15/40

      370         410,104   
     

 

 

  
   $ 2,067,069   
     

 

 

  

Electric Utilities — 9.3%

      

Holland, Electric Utility System, 5.00%, 7/1/39

    $ 1,135       $ 1,277,658   

Lansing Board of Water and Light, 5.50%, 7/1/41

      500         586,115   

Michigan Public Power Agency, 5.00%, 1/1/43

      800         848,000   
     

 

 

  
   $ 2,711,773   
     

 

 

  

Escrowed/Prerefunded — 5.8%

      

Grand Valley State University, Prerefunded to 12/1/16, 5.625%, 12/1/29

    $ 525       $ 559,356   

Grand Valley State University, Prerefunded to 12/1/16, 5.75%, 12/1/34

      525         560,175   

Michigan Hospital Finance Authority, (MidMichigan Obligated Group), Prerefunded to 6/1/19, 6.125%, 6/1/39

      500         592,415   
     

 

 

  
   $ 1,711,946   
     

 

 

  

General Obligations — 28.2%

      

Ann Arbor Public Schools, 4.50%, 5/1/24

    $ 350       $ 375,893   

Comstock Park Public Schools, 5.125%, 5/1/31

      275         304,026   

Comstock Park Public Schools, 5.25%, 5/1/33

      220         242,715   

East Grand Rapids Public Schools, 5.00%, 5/1/39

      435         478,274   

Jenison Public Schools, 5.00%, 5/1/28

      500         553,480   

Jenison Public Schools, 5.00%, 5/1/30

      500         550,365   

Kent County, 5.00%, 1/1/25

      1,500         1,665,900   

Kent County, (AMT), 5.00%, 1/1/28

      1,000         1,135,460   

Lansing Community College, 5.00%, 5/1/30

      1,005         1,154,383   

Michigan, 5.50%, 11/1/25

      270         305,891   

Walled Lake Consolidated School District, 5.00%, 5/1/34

      365         410,757   

Watervliet Public Schools, 5.00%, 5/1/38

      1,000         1,101,040   
     

 

 

  
   $ 8,278,184   
     

 

 

  

Hospital — 24.6%

      

Grand Traverse County Hospital Finance Authority, (Munson Healthcare), 5.00%, 7/1/47

    $ 1,000       $ 1,075,670   

Michigan Finance Authority, (McLaren Health Care), 5.00%, 6/1/35

      250         275,517   

Michigan Finance Authority, (Oakwood Obligated Group), 5.00%, 11/1/32

      500         548,645   

Michigan Finance Authority, (Trinity Health Corp.), 5.00%, 12/1/27

      1,000         1,132,770   

Michigan Hospital Finance Authority, (Henry Ford Health System), 5.00%, 11/15/38

      250         258,003   

Michigan Hospital Finance Authority, (Henry Ford Health System), 5.25%, 11/15/46

      1,000         1,034,550   

Monroe County Hospital Finance Authority, (Mercy Memorial Hospital Corp.),
5.375%, 6/1/26

      425         432,382   

Royal Oak Hospital Finance Authority, (William Beaumont Hospital), 5.00%, 9/1/39

      1,250         1,356,675   

Saginaw Hospital Finance Authority, (Covenant Medical Center, Inc.), 5.00%, 7/1/30

      1,000         1,099,240   
     

 

 

  
   $ 7,213,452   
     

 

 

  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Housing — 0.5%

      

Michigan Housing Development Authority, 4.60%, 12/1/26

    $ 135       $ 140,015   
     

 

 

  
   $ 140,015   
     

 

 

  

Industrial Development Revenue — 2.5%

      

Detroit Local Development Finance Authority, (Chrysler Corp.), 5.375%, 5/1/21

    $ 750       $ 742,305   
     

 

 

  
   $ 742,305   
     

 

 

  

Insured-Education — 5.1%

      

Ferris State University, (AGC), 5.125%, 10/1/33

    $ 570       $ 623,398   

Ferris State University, (AGC), 5.25%, 10/1/38

      500         548,700   

Wayne State University, (AGM), 5.00%, 11/15/35

      300         328,452   
     

 

 

  
   $ 1,500,550   
     

 

 

  

Insured-Electric Utilities — 3.1%

      

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/29

    $ 630       $ 550,141   

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/32

      250         214,345   

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

      155         131,504   
     

 

 

  
   $ 895,990   
     

 

 

  

Insured-General Obligations — 28.5%

      

Battle Creek School District, (AGM), 5.00%, 5/1/37

    $ 1,105       $ 1,165,963   

Bay City Brownfield Redevelopment Authority, (BAM), 5.375%, 10/1/38

      500         549,785   

Byron Center Public Schools, (AGM), 3.75%, 5/1/26

      150         156,814   

Byron Center Public Schools, (AGM), 4.00%, 5/1/28

      240         251,273   

Detroit School District, (AGM), 5.25%, 5/1/32

      300         346,872   

Hartland Consolidated Schools, (AGM), 5.25%, 5/1/29

      1,000         1,119,730   

Livonia Public Schools, (AGM), 5.00%, 5/1/43

      910         1,001,692   

South Haven Public Schools, (AGM), 5.00%, 5/1/40

      500         556,695   

South Haven Public Schools, (BAM), 5.00%, 5/1/41

      1,200         1,321,248   

Van Dyke Public Schools, (AGM), 5.00%, 5/1/38

      1,250         1,350,162   

Westland Tax Increment Finance Authority, (BAM), 5.25%, 4/1/34

      500         541,200   
     

 

 

  
   $ 8,361,434   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 6.4%

      

Michigan Building Authority, (AGM), (FGIC), 0.00%, 10/15/29

    $ 1,000       $ 514,740   

Michigan Building Authority, (NPFG), 0.00%, 10/15/30

      2,800         1,364,888   
     

 

 

  
   $ 1,879,628   
     

 

 

  

Insured-Special Tax Revenue — 0.5%

      

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

    $ 895       $ 141,768   
     

 

 

  
   $ 141,768   
     

 

 

  

Insured-Transportation — 3.7%

      

Wayne County Airport Authority, (AGC), (AMT), 5.375%, 12/1/32

    $ 1,000       $ 1,093,780   
     

 

 

  
   $ 1,093,780   
     

 

 

  

Insured-Water and Sewer — 7.2%

      

Detroit, Sewage Disposal System, (AGC), (FGIC), 5.00%, 7/1/36

    $ 560       $ 569,822   

Grand Rapids, Water Supply System, (AGC), 5.10%, 1/1/39

      1,000         1,099,800   

Puerto Rico Aqueduct and Sewer Authority, (AGC), 5.00%, 7/1/28

      475         451,963   
     

 

 

  
   $ 2,121,585   
     

 

 

  

Lease Revenue/Certificates of Participation — 3.5%

      

Michigan Strategic Fund, (Facility for Rare Isotope Beams), 4.00%, 3/1/30

    $ 1,000       $ 1,035,000   
     

 

 

  
   $ 1,035,000   
     

 

 

  

Special Tax Revenue — 5.2%

      

Guam, Limited Obligation Bonds, 5.625%, 12/1/29

    $ 115       $ 127,052   

Guam, Limited Obligation Bonds, 5.75%, 12/1/34

      125         138,456   

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Michigan Trunk Line Fund, 5.00%, 11/15/36

    $ 1,000       $ 1,130,870   

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

      110         124,123   
     

 

 

  
   $ 1,520,501   
     

 

 

  

Water and Sewer — 11.1%

      

Detroit, Water Supply System, 5.25%, 7/1/41

    $ 750       $ 795,105   

Grand Rapids, Sanitary Sewer System, 5.00%, 1/1/28

      735         911,305   

Michigan Finance Authority, (Detroit Water and Sewerage Department), (AMT),
5.00%, 7/1/44

      1,250         1,283,375   

Port Huron, Water Supply System, 5.25%, 10/1/31

      250         271,495   
     

 

 

  
   $ 3,261,280   
     

 

 

  

Total Tax-Exempt Investments — 154.6%
(identified cost $42,499,597)

       $ 45,350,378   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (59.7)%

       $ (17,500,345 ) 
     

 

 

  

Other Assets, Less Liabilities — 5.1%

       $ 1,484,651   
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 29,334,684   
     

 

 

  

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.

AMT

   -   Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.

BAM

   -   Build America Mutual Assurance Co.

FGIC

   -   Financial Guaranty Insurance Company

NPFG

   -   National Public Finance Guaranty Corp.

The Trust invests primarily in debt securities issued by Michigan 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, 2015, 35.3% 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 2.4% to 15.0% of total investments.

The cost and unrealized appreciation (depreciation) of investments of the Trust at August 31, 2015, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     42,435,713   
  

 

 

  

Gross unrealized appreciation

    $ 3,133,941   

Gross unrealized depreciation

      (219,276 ) 
  

 

 

  

Net unrealized appreciation

    $ 2,914,665   
  

 

 

  

The Trust did not have any open financial instruments at August 31, 2015.

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

 

3

 

 

•  

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, 2015, 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

    $ —       $ 45,350,378       $ —       $ 45,350,378   

Total Investments

    $ —       $     45,350,378       $ —       $     45,350,378   

The Trust held no investments or other financial instruments as of November 30, 2014 whose fair value was determined using Level 3 inputs. At August 31, 2015, 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.

 

4

 

 

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 Michigan Municipal Income Trust

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   October 26, 2015

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:   October 26, 2015

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   October 26, 2015