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, 2016

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Michigan Municipal Income Trust

August 31, 2016

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 150.5%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Bond Bank — 2.1%

      

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

    $ 600       $ 668,274   
     

 

 

  
      $ 668,274   
     

 

 

  

Education — 6.7%

      

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

    $ 1,000       $ 1,119,810   

Oakland University, 5.00%, 3/1/42

      500         573,545   

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

      370         434,365   
     

 

 

  
      $ 2,127,720   
     

 

 

  

Electric Utilities — 8.9%

      

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

    $ 1,135       $ 1,320,096   

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

      500         594,185   

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

      800         882,848   
     

 

 

  
      $ 2,797,129   
     

 

 

  

Escrowed/Prerefunded — 7.0%

      

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

    $ 525       $ 531,752   

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

      525         531,914   

Guam, Limited Obligation Bonds, Prerefunded to 12/1/19, 5.625%, 12/1/29

      115         132,697   

Guam, Limited Obligation Bonds, Prerefunded to 12/1/19, 5.75%, 12/1/34

      125         144,736   

Michigan, Prerefunded to 5/1/19, 5.50%, 11/1/25

      270         304,371   

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

      500         573,155   
     

 

 

  
      $ 2,218,625   
     

 

 

  

General Obligations — 30.1%

      

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

    $ 350       $ 369,177   

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

      275         317,034   

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

      220         257,119   

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

      435         512,421   

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

      500         573,965   

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

      500         572,670   

Kent County, 5.00%, 1/1/25

      1,500         1,636,920   

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

      1,000         1,161,560   

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

      1,005         1,197,608   

Marysville Public Schools District, 5.00%, 5/1/37

      1,065         1,299,502   

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

      365         431,879   

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

      1,000         1,177,980   
     

 

 

  
      $ 9,507,835   
     

 

 

  

Hospital — 22.2%

      

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

    $ 1,000       $ 1,162,020   

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

      250         285,863   

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

      500         578,275   

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

      990         1,135,688   

Michigan Finance Authority, (Trinity Health Corp.), Prerefunded to 12/1/20, 5.00%, 12/1/27

      10         11,731   

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

      250         252,170   

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

      1,000         1,009,190   

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

      1,250         1,455,537   

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

      1,000         1,125,310   
     

 

 

  
      $ 7,015,784   
     

 

 

  

Housing — 0.2%

      

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

    $ 45       $ 46,245   
     

 

 

  
      $ 46,245   
     

 

 

  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Industrial Development Revenue — 2.4%

      

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

    $ 750       $ 750,225   
     

 

 

  
      $ 750,225   
     

 

 

  

Insured-Education — 4.2%

      

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

    $ 570       $ 616,660   

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

      500         542,210   

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

      165         179,025   
     

 

 

  
      $ 1,337,895   
     

 

 

  

Insured-Electric Utilities — 3.6%

      

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

    $ 630       $ 685,598   

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

      250         273,885   

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

      155         169,641   
     

 

 

  
      $ 1,129,124   
     

 

 

  

Insured-Escrowed/Prerefunded — 10.2%

      

Battle Creek School District, (AGM), Prerefunded to 5/1/17, 5.00%, 5/1/37

    $ 1,105       $ 1,138,106   

Michigan Building Authority, (AGM), (FGIC), Prerefunded to 10/15/16, 0.00%, 10/15/29

      1,000         525,875   

Michigan Building Authority, (NPFG), Prerefunded to 10/15/16, 0.00%, 10/15/30

      2,800         1,399,592   

Wayne State University, (AGM), Prerefunded to 11/15/18, 5.00%, 11/15/35

      135         147,955   
     

 

 

  
      $ 3,211,528   
     

 

 

  

Insured-General Obligations — 23.9%

      

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

    $ 500       $ 597,795   

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

      150         159,819   

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

      240         256,534   

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

      300         383,436   

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

      1,000         1,162,030   

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

      910         1,055,536   

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

      500         596,415   

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

      1,200         1,420,020   

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

      1,250         1,330,712   

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

      500         590,630   
     

 

 

  
      $ 7,552,927   
     

 

 

  

Insured-Special Tax Revenue — 0.5%

      

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

    $ 895       $ 172,529   
     

 

 

  
      $ 172,529   
     

 

 

  

Insured-Transportation — 3.5%

      

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

    $ 1,000       $ 1,091,620   
     

 

 

  
      $ 1,091,620   
     

 

 

  

Insured-Water and Sewer — 6.8%

      

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

    $ 560       $ 561,932   

Grand Rapids, Water Supply System, (AGC), Prerefunded to 1/1/19, 5.10%, 1/1/39

      1,000         1,091,640   

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

      475         490,642   
     

 

 

  
      $ 2,144,214   
     

 

 

  

Lease Revenue/Certificates of Participation — 3.5%

      

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

    $ 1,000       $ 1,112,130   
     

 

 

  
      $ 1,112,130   
     

 

 

  

Special Tax Revenue — 3.7%

      

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

    $ 1,000       $ 1,172,150   
     

 

 

  
      $ 1,172,150   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Water and Sewer — 11.0%

      

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

    $ 750       $ 842,235   

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

      735         970,714   

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

      1,250         1,378,600   

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

      250         280,843   
     

 

 

  
      $ 3,472,392   
     

 

 

  

Total Tax-Exempt Investments — 150.5%
(identified cost $43,119,819)

       $ 47,528,346   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (2.1)%

       $ (650,108 ) 
     

 

 

  

Institutional MuniFund Term Preferred Shares, at Liquidation Value — (53.4)%

       $ (16,850,000 ) 
     

 

 

  

Other Assets, Less Liabilities — 5.0%

       $ 1,553,596   
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 31,581,834   
     

 

 

  

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 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, 2016, 35.0% 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 2.3% to 14.6% of total investments.

Abbreviations:

 

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 did not have any open financial instruments at August 31, 2016.

The cost and unrealized appreciation (depreciation) of investments of the Trust at August 31, 2016, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     43,084,353   
  

 

 

  

Gross unrealized appreciation

    $ 4,483,690   

Gross unrealized depreciation

      (39,697 ) 
  

 

 

  

Net unrealized appreciation

    $ 4,443,993   
  

 

 

  

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)

 

3

 

 

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, 2016, 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

    $ —       $ 47,528,346       $ —       $ 47,528,346   

Total Investments

    $     —       $     47,528,346       $     —       $     47,528,346   

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

 

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 24, 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:   October 24, 2016

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   October 24, 2016