UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
811-21225
Investment Company Act File Number
Eaton Vance Massachusetts Municipal Bond Fund
(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
(Registrants Telephone Number, Including Area Code)
September 30
Date of Fiscal Year End
June 30, 2018
Date of Reporting Period
Item 1. Schedule of Investments
Eaton Vance
Massachusetts Municipal Bond Fund
June 30, 2018
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments 145.1%
Security | Principal Amount (000s omitted) |
Value | ||||||
Bond Bank 6.1% |
||||||||
Massachusetts Water Pollution Abatement Trust, 5.25%, 8/1/33 |
$ | 585 | $ | 755,258 | ||||
Massachusetts Water Pollution Abatement Trust, 5.25%, 8/1/34 |
640 | 821,645 | ||||||
|
|
|||||||
$ | 1,576,903 | |||||||
|
|
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Education 20.3% |
||||||||
Massachusetts Development Finance Agency, (Harvard University), 5.00%, 7/15/33(1) |
$ | 3,000 | $ | 3,528,450 | ||||
Massachusetts Development Finance Agency, (Milton Academy), 5.00%, 9/1/35 |
750 | 797,340 | ||||||
Massachusetts Health and Educational Facilities Authority, (Northeastern University), 5.00%, 10/1/35 |
870 | 922,635 | ||||||
|
|
|||||||
$ | 5,248,425 | |||||||
|
|
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Escrowed/Prerefunded 9.9% |
||||||||
Massachusetts Health and Educational Facilities Authority, (Isabella Stewart Gardner Museum), Prerefunded to 5/1/19, 5.00%, 5/1/25 |
$ | 320 | $ | 328,986 | ||||
Massachusetts Health and Educational Facilities Authority, (Isabella Stewart Gardner Museum), Prerefunded to 5/1/19, 5.00%, 5/1/29 |
490 | 503,759 | ||||||
Massachusetts Health and Educational Facilities Authority, (Partners HealthCare System), Prerefunded to 7/1/19, 5.00%, 7/1/34 |
500 | 517,160 | ||||||
Massachusetts Health and Educational Facilities Authority, (Partners HealthCare System), Prerefunded to 7/1/19, 5.00%, 7/1/39 |
750 | 775,740 | ||||||
Massachusetts Health and Educational Facilities Authority, (Tufts University), Prerefunded to 8/15/18, 5.375%, 8/15/38 |
425 | 426,993 | ||||||
|
|
|||||||
$ | 2,552,638 | |||||||
|
|
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General Obligations 9.4% |
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Danvers, 5.25%, 7/1/36 |
$ | 565 | $ | 617,427 | ||||
Plymouth, 5.00%, 5/1/26 |
250 | 270,800 | ||||||
Plymouth, 5.00%, 5/1/31 |
225 | 243,009 | ||||||
Plymouth, 5.00%, 5/1/32 |
205 | 221,291 | ||||||
Wayland, 5.00%, 2/1/33 |
340 | 364,344 | ||||||
Wayland, 5.00%, 2/1/36 |
510 | 546,251 | ||||||
Winchester, 5.00%, 4/15/36 |
160 | 172,251 | ||||||
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|
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$ | 2,435,373 | |||||||
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|
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Hospital 7.6% |
| |||||||
Massachusetts Development Finance Agency, (CareGroup), 5.00%, 7/1/33 |
$ | 120 | $ | 132,727 | ||||
Massachusetts Health and Educational Facilities Authority, (Dana-Farber Cancer Institute), 5.00%, 12/1/37 |
775 | 787,191 | ||||||
Massachusetts Health and Educational Facilities Authority, (Southcoast Health System), 5.00%, 7/1/29 |
1,000 | 1,029,290 | ||||||
|
|
|||||||
$ | 1,949,208 | |||||||
|
|
1
Security | Principal Amount (000s omitted) |
Value | ||||||
Insured Education 12.6% |
||||||||
Massachusetts College Building Authority, (XLCA), 5.50%, 5/1/39 |
$ | 700 | $ | 921,193 | ||||
Massachusetts Development Finance Agency, (Boston University), (XLCA), 6.00%, 5/15/59 |
1,105 | 1,381,504 | ||||||
Massachusetts Development Finance Agency, (College of the Holy Cross), (AMBAC), 5.25%, 9/1/32(1) |
750 | 948,465 | ||||||
|
|
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$ | 3,251,162 | |||||||
|
|
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Insured Electric Utilities 4.4% |
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Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/23 |
$ | 1,095 | $ | 1,141,559 | ||||
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|
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$ | 1,141,559 | |||||||
|
|
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Insured Escrowed/Prerefunded 13.9% |
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Massachusetts College Building Authority, (NPFG), Escrowed to Maturity, 0.00%, 5/1/26 |
$ | 2,900 | $ | 2,339,981 | ||||
Massachusetts Health and Educational Facilities Authority, (Cape Cod Healthcare), (AGC), Prerefunded to 11/15/19, 5.00%, 11/15/25 |
220 | 229,885 | ||||||
Revere, (AGC), Prerefunded to 4/1/19, 5.00%, 4/1/39 |
1,000 | 1,026,170 | ||||||
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|
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$ | 3,596,036 | |||||||
|
|
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Insured General Obligations 9.3% |
||||||||
Massachusetts, (AMBAC), 5.50%, 8/1/30 |
$ | 1,900 | $ | 2,409,181 | ||||
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|
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$ | 2,409,181 | |||||||
|
|
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Insured Lease Revenue/Certificates of Participation 4.7% |
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Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27 |
$ | 1,000 | $ | 1,217,770 | ||||
|
|
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$ | 1,217,770 | |||||||
|
|
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Insured Other Revenue 2.2% |
||||||||
Massachusetts Development Finance Agency, (WGBH Educational Foundation), (AMBAC), 5.75%, 1/1/42 |
$ | 415 | $ | 556,262 | ||||
|
|
|||||||
$ | 556,262 | |||||||
|
|
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Insured Special Tax Revenue 4.2% |
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Massachusetts, Special Obligation, Dedicated Tax Revenue, (NPFG), 5.50%, 1/1/29 |
$ | 750 | $ | 918,495 | ||||
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 |
770 | 176,060 | ||||||
|
|
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$ | 1,094,555 | |||||||
|
|
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Lease Revenue/Certificates of Participation 9.2% |
| |||||||
Boston, 5.00%, 5/1/38(1) |
$ | 2,000 | $ | 2,381,360 | ||||
|
|
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$ | 2,381,360 | |||||||
|
|
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Special Tax Revenue 20.5% |
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Massachusetts Bay Transportation Authority, 5.00%, 7/1/35 |
$ | 1,210 | $ | 1,284,053 | ||||
Massachusetts School Building Authority, Sales Tax Revenue, 5.00%, 11/15/46(1) |
1,500 | 1,715,700 | ||||||
Massachusetts, (Rail Enhancement and Accelerated Bridge Programs), 5.00%, 6/1/47(1) |
2,000 | 2,302,260 | ||||||
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|
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$ | 5,302,013 | |||||||
|
|
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Transportation 7.8% |
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Massachusetts Department of Transportation, (Metropolitan Highway System), 5.00%, 1/1/32 |
$ | 1,000 | $ | 1,043,350 | ||||
Massachusetts Department of Transportation, (Metropolitan Highway System), 5.00%, 1/1/37 |
500 | 520,620 | ||||||
Massachusetts Port Authority, 5.00%, 7/1/34 |
435 | 461,357 | ||||||
|
|
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$ | 2,025,327 | |||||||
|
|
2
Security | Principal Amount (000s omitted) |
Value | ||||||
Water and Sewer 3.0% |
||||||||
Boston Water & Sewer Commission, Prerefunded to 11/1/19, 5.00%, 11/1/27 |
$ | 750 | $ | 783,247 | ||||
|
|
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$ | 783,247 | |||||||
|
|
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Total Tax-Exempt Investments 145.1% |
$ | 37,521,019 | ||||||
|
|
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Institutional MuniFund Term Preferred Shares, at Liquidation Value |
|
$ | (7,315,647 | ) | ||||
|
|
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Other Assets, Less Liabilities (16.8)% |
|
$ | (4,344,186 | ) | ||||
|
|
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Net Assets Applicable to Common Shares 100.0% |
|
$ | 25,861,186 | |||||
|
|
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
The Fund invests primarily in debt securities issued by Massachusetts 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 June 30, 2018, 35.4% 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 or financial guaranty assurance agency ranged from 3.3% to 13.7% of total investments.
(1) | Security represents the municipal bond held by a trust that issues residual interest bonds. |
Abbreviations:
AGC |
- | Assured Guaranty Corp. | ||
AMBAC |
- | AMBAC Financial Group, Inc. | ||
NPFG |
- | National Public Finance Guaranty Corp. | ||
XLCA |
- | XL Capital Assurance, Inc. |
The Fund did not have any open derivative instruments at June 30, 2018.
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 funds 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.
3
At June 30, 2018, the hierarchy of inputs used in valuing the Funds investments, which are carried at value, were as follows:
Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Tax-Exempt Investments |
$ | | $ | 37,521,019 | $ | | $ | 37,521,019 | ||||||||
Total Investments |
$ | | $ | 37,521,019 | $ | | $ | 37,521,019 |
At June 30, 2018, there were no investments transferred between Level 1 and Level 2 during the fiscal year to date then ended.
For information on the Funds policy regarding the valuation of investments and other significant accounting policies, please refer to the Funds most recent financial statements included in its semiannual or annual report to shareholders.
Proposed Plan of Reorganization
In April 2018, the Trustees of the Fund approved an Agreement and Plan of Reorganization whereby Eaton Vance Municipal Bond Fund (Municipal Bond Fund) would acquire substantially all the assets and assume substantially all the liabilities of the Fund in exchange for common shares of Municipal Bond Fund. The proposed reorganization is subject to approval by the shareholders of the Fund.
4
Item 2. Controls and Procedures
(a) It is the conclusion of the registrants principal executive officer and principal financial officer that the effectiveness of the registrants 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 Commissions 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 registrants principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrants 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 registrants internal control over financial reporting.
Item 3. Exhibits
A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act is attached hereto.
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 Massachusetts Municipal Bond Fund
By: | /s/ Payson F. Swaffield | |
Payson F. Swaffield | ||
President | ||
Date: | August 21, 2018 |
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: | August 21, 2018 |
By: | /s/ James F. Kirchner | |
James F. Kirchner | ||
Treasurer | ||
Date: | August 21, 2018 |