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, 2014

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Municipal Income Term Trust

October 31, 2014

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 156.8%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Bond Bank — 1.6%

      

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

    $ 3,275       $ 3,492,100   
     

 

 

  
      $ 3,492,100   
     

 

 

  

Education — 11.9%

      

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

    $ 2,910       $ 2,886,371   

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

      3,265         3,205,381   

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

      10,250         10,221,382   

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

      8,425         9,122,000   
     

 

 

  
      $ 25,435,134   
     

 

 

  

Electric Utilities — 8.1%

      

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

    $ 1,480       $ 1,578,287   

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

      4,000         4,098,120   

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

      10,000         11,713,300   
     

 

 

  
      $ 17,389,707   
     

 

 

  

General Obligations — 45.3%

      

Clovis Unified School District, CA, (Election of 2012), 0.00%, 8/1/28

    $ 1,000       $ 590,190   

Clovis Unified School District, CA, (Election of 2012), 0.00%, 8/1/29

      2,395         1,333,823   

Clovis Unified School District, CA, (Election of 2012), 0.00%, 8/1/30

      2,575         1,352,570   

Edmonds School District No. 15, Snohomish County, WA, 5.00%, 12/1/30

      3,000         3,591,750   

Fresno Unified School District, CA, (Election of 2010), 0.00%, 8/1/30

      800         398,424   

Fresno Unified School District, CA, (Election of 2010), 0.00%, 8/1/31

      955         449,442   

Hawaii, 5.00%, 11/1/28(1)(2)

      8,000         9,460,000   

Illinois, 5.00%, 5/1/33

      3,200         3,439,072   

Laredo, TX, Independent School District, (PSF Guaranted), 0.00%, 8/1/27

      1,570         1,082,751   

Leander Independent School District, TX, (PSF Guaranteed), 0.00%, 8/15/31

      5,000         2,582,050   

New York, 3.00%, 3/1/32(1)(2)

      10,000         10,181,085   

New York, NY, 5.00%, 3/1/30

      3,700         4,342,801   

Pennsylvania, 4.00%, 4/1/29(1)(2)

      10,000         10,773,500   

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

      10,000         10,617,700   

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

      2,900         2,796,122   

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

      4,200         4,476,990   

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

      4,350         4,609,739   

Texas, (Texas Transportation Commission), 4.00%, 10/1/31(1)(2)

      10,000         10,861,900   

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

      3,000         1,605,210   

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

      3,000         1,523,370   

Washington, 4.00%, 7/1/29(1)

      10,000         10,793,500   
     

 

 

  
      $ 96,861,989   
     

 

 

  

Hospital — 13.0%

      

California Health Facilities Financing Authority, (Providence Health & Services), 4.00%, 10/1/28(1)(2)

    $ 10,000       $ 10,688,100   

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

      2,500         2,656,975   

Massachusetts Health and Educational Facilities Authority, (Jordan Hospital),
5.375%, 10/1/28

      1,000         1,000,220   

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

      715         695,245   

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Southcentral Pennsylvania General Authority, (WellSpan Health Obligated Group),
5.00%, 6/1/29(3)

    $ 825       $ 953,147   

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

      10,000         10,206,800   

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

      1,500         1,665,855   
     

 

 

  
      $ 27,866,342   
     

 

 

  

Housing — 8.2%

      

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

    $ 5,500       $ 5,697,065   

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

      1,500         1,564,425   

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

      10,000         10,326,800   
     

 

 

  
      $ 17,588,290   
     

 

 

  

Industrial Development Revenue — 7.0%

      

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

    $ 1,500       $ 1,547,055   

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

      5,000         5,165,050   

Massachusetts Development Finance Agency, (Covanta Energy), (AMT), 4.875%, 11/1/27(6)

      2,500         2,569,800   

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

      1,155         1,178,135   

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

      3,000         3,060,090   

New Jersey Economic Development Authority, (Continental Airlines), Series 2000A, (AMT), 5.625%, 11/15/30

      500         544,195   

New Jersey Economic Development Authority, (Continental Airlines), Series 2000B, (AMT), 5.625%, 11/15/30

      855         931,257   
     

 

 

  
      $ 14,995,582   
     

 

 

  

Insured-Electric Utilities — 3.2%

      

Puerto Rico Electric Power Authority, (AGM), 0.678%, 7/1/29(4)

    $ 2,000       $ 1,504,900   

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

      500         485,530   

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

      5,000         4,828,750   
     

 

 

  
      $ 6,819,180   
     

 

 

  

Insured-General Obligations — 1.8%

      

Irvington Township, NJ, (AGM), 5.00%, 7/15/30

    $ 1,875       $ 2,138,625   

McHenry County, IL, Community Unit School District No. 12, (AGM), 4.25%, 1/1/29

      1,230         1,257,085   

Puerto Rico Public Buildings Authority, (NPFG), 6.00%, 7/1/28

      500         508,155   
     

 

 

  
      $ 3,903,865   
     

 

 

  

Insured-Industrial Development Revenue — 2.0%

      

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

    $ 4,200       $ 4,200,252   
     

 

 

  
      $ 4,200,252   
     

 

 

  

Insured-Other Revenue — 0.7%

      

New Jersey Economic Development Authority, (The Goethals Bridge Replacement), (AGM), (AMT), 5.00%, 1/1/31

    $ 1,340       $ 1,490,830   
     

 

 

  
      $ 1,490,830   
     

 

 

  

Insured-Special Tax Revenue — 1.4%

      

Puerto Rico Convention Center District Authority, (AMBAC), 5.00%, 7/1/31

    $ 1,475       $ 1,333,798   

Puerto Rico Infrastructure Financing Authority, (AMBAC), 0.00%, 7/1/35

      1,115         246,883   

Puerto Rico Infrastructure Financing Authority, (AMBAC), 5.50%, 7/1/28

      1,480         1,434,298   
     

 

 

  
      $ 3,014,979   
     

 

 

  

Insured-Transportation — 2.3%

      

Alameda Corridor Transportation Authority, CA, (AMBAC), 0.00%, 10/1/31(5)

    $ 5,805       $ 2,097,172   

Foothill/Eastern Transportation Corridor Agency, CA, (AGM), 0.00%, 1/15/32

      795         558,488   

Puerto Rico Highway and Transportation Authority, (AGM), 5.50%, 7/1/31

      1,000         1,038,760   

Puerto Rico Highway and Transportation Authority, (AMBAC), 0.00%, 7/1/20(5)

      1,625         1,166,457   
     

 

 

  
      $ 4,860,877   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Water and Sewer — 2.2%

      

Jefferson County, AL, Sewer Revenue, (AGM), 0.00%, 10/1/27

    $ 875       $ 485,170   

Jefferson County, AL, Sewer Revenue, (AGM), 0.00%, 10/1/29

      1,225         592,190   

Jefferson County, AL, Sewer Revenue, (AGM), 0.00%, 10/1/30

      1,045         467,742   

Jefferson County, AL, Sewer Revenue, (AGM), 0.00%, 10/1/33

      5,870         2,116,839   

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

      1,000         1,000,260   
     

 

 

  
      $ 4,662,201   
     

 

 

  

Lease Revenue/Certificates of Participation — 0.5%

      

Michigan Strategic Fund, (Facility for Rare Isotope Beams), 4.00%, 3/1/31

    $ 1,000       $ 1,041,500   
     

 

 

  
      $ 1,041,500   
     

 

 

  

Other Revenue — 7.9%

      

New York Liberty Development Corp., (3 World Trade Center), 5.15%, 11/15/34(3)(6)

    $ 3,250       $ 3,313,505   

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

      10,000         10,843,300   

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

      2,460         2,815,593   
     

 

 

  
      $ 16,972,398   
     

 

 

  

Senior Living/Life Care — 4.5%

      

Harris County Cultural Education Facilities Finance Corp., TX, (Brazos Presbyterian Homes, Inc.), 5.75%, 1/1/28

    $ 140       $ 157,644   

Lancaster Industrial Development Authority, PA, (Garden Spot Village), 5.375%, 5/1/28

      600         654,438   

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

      1,250         1,376,887   

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

      470         470,235   

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

      710         713,444   

Multnomah County, OR, Hospital Facilities Authority, (Mirabella at South Waterfront), 5.125%, 10/1/34

      1,500         1,572,750   

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

      765         770,546   

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

      910         911,283   

Palm Beach County, FL, Health Facilities Authority, (Sinai Residences of Boca Raton), 7.25%, 6/1/34

      940         1,068,489   

Savannah, GA, Economic Development Authority, (Marshes of Skidaway Island), 6.00%, 1/1/24

      500         545,585   

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

      1,200         1,350,696   
     

 

 

  
      $ 9,591,997   
     

 

 

  

Special Tax Revenue — 6.5%

      

Metropolitan Transportation Authority, NY, Dedicated Tax Revenue, 0.00%, 11/15/30(5)

    $ 5,000       $ 2,920,800   

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

      10,000         10,893,700   
     

 

 

  
      $ 13,814,500   
     

 

 

  

Student Loan — 2.5%

      

Massachusetts Educational Financing Authority, (AMT), 5.00%, 1/1/27

    $ 3,000       $ 3,342,630   

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

      2,000         2,035,120   
     

 

 

  
      $ 5,377,750   
     

 

 

  

Transportation — 17.5%

      

Chicago, IL, (Midway International Airport), (AMT), 5.00%, 1/1/32

    $ 5,000       $ 5,527,800   

Foothill/Eastern Transportation Corridor Agency, CA, 0.00%, 1/15/27

      2,000         1,317,280   

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

      800         606,768   

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

      1,500         1,135,065   

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

      2,000         1,513,140   

Houston, TX, (United Airlines, Inc.), (AMT), 5.00%, 7/1/29

      1,470         1,557,759   

Kentucky Public Transportation Infrastructure Authority, (Downtown Crossing Project), 0.00%, 7/1/28

      1,240         592,150   

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

      10,000         5,155,100   

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 10,000       $ 10,270,796   

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

      2,880         1,459,152   

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

      2,670         1,286,593   

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

      3,000         1,364,160   

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

      3,665         2,171,109   

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

      6,600         3,568,818   
     

 

 

  
      $ 37,525,690   
     

 

 

  

Water and Sewer — 8.7%

      

Chicago, IL, Water Revenue, 5.00%, 11/1/28

    $ 1,500       $ 1,738,560   

Chicago, IL, Water Revenue, 5.00%, 11/1/29

      2,000         2,308,780   

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

      1,000         1,101,340   

Michigan Finance Authority, (Detroit Water and Sewerage Department), 5.00%, 7/1/30

      5,000         5,483,500   

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

      7,500         7,890,675   
     

 

 

  
      $ 18,522,855   
     

 

 

  

Total Tax-Exempt Investments — 156.8%
(identified cost $322,152,812)

       $ 335,428,018   
     

 

 

  

Other Assets, Less Liabilities — (56.8)%

       $ (121,556,156 ) 
     

 

 

  

Net Assets — 100.0%

       $ 213,871,862   
     

 

 

  

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

 

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.

NPFG

   -   National Public Finance Guaranty Corp.

PSF

   -   Permanent School Fund

SFMR

   -   Single Family Mortgage Revenue

At October 31, 2014, the concentration of the Trust’s investments in the various states, determined as a percentage of total investments, is as follows:

 

                        

New York

      14.4 % 

Texas

      11.3 % 

Others, representing less than 10% individually

      74.3 % 

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, 2014, 8.6% 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 0.3% to 3.5% 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 $34,363,667.

 

(3) When-issued security.

 

(4) Variable rate security. The stated interest rate represents the rate in effect at October 31, 2014.

 

(5) Security (or a portion thereof) has been segregated to cover payable for when-issued securities.

 

4

 

 

(6) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be sold in certain transactions (normally to qualified institutional buyers) and remain exempt from registration. At October 31, 2014, the aggregate value of these securities is $5,883,305 or 2.8% of the Trust’s net assets.

The Trust did not have any open financial instruments at October 31, 2014.

The cost and unrealized appreciation (depreciation) of investments of the Trust at October 31, 2014, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     199,855,494   
  

 

 

  

Gross unrealized appreciation

    $ 13,459,037   

Gross unrealized depreciation

      (141,513 ) 
  

 

 

  

Net unrealized appreciation

    $ 13,317,524   
  

 

 

  

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, 2014, 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

    $     —       $ 335,428,018       $ —       $ 335,428,018   

Total Investments

    $ —       $     335,428,018       $     —       $     335,428,018   

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

 

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 22, 2014

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 22, 2014
By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   December 22, 2014