UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
811-09147
Investment Company Act File Number
Eaton Vance Massachusetts 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
(Registrants Telephone Number, Including Area Code)
November 30
Date of Fiscal Year End
August 31, 2017
Date of Reporting Period
Item 1. Schedule of Investments
Eaton Vance
Massachusetts Municipal Income Trust
August 31, 2017
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Municipal Securities 144.6%
Security | Principal Amount (000s omitted) |
Value | ||||||
Bond Bank 6.0% |
||||||||
Massachusetts Water Pollution Abatement Trust, 5.25%, 8/1/33 |
$ | 910 | $ | 1,189,243 | ||||
Massachusetts Water Pollution Abatement Trust, 5.25%, 8/1/34 |
990 | 1,297,731 | ||||||
|
|
|||||||
$ | 2,486,974 | |||||||
|
|
|||||||
Education 30.4% |
||||||||
Massachusetts Development Finance Agency, (Berklee College of Music), 5.00%, 10/1/46 |
$ | 1,525 | $ | 1,759,347 | ||||
Massachusetts Development Finance Agency, (Dexter Southfield), 5.00%, 5/1/34 |
1,665 | 1,873,275 | ||||||
Massachusetts Development Finance Agency, (Milton Academy), 5.00%, 9/1/35 |
1,080 | 1,189,922 | ||||||
Massachusetts Development Finance Agency, (Northeastern University), 5.00%, 3/1/33 |
770 | 899,406 | ||||||
Massachusetts Development Finance Agency, (Olin College), 5.00%, 11/1/38 |
1,000 | 1,147,560 | ||||||
Massachusetts Development Finance Agency, (Wentworth Institute of Technology), 5.00%, 10/1/37 |
1,000 | 1,150,240 | ||||||
Massachusetts Health and Educational Facilities Authority, (Berklee College of Music), 5.00%, 10/1/32 |
105 | 105,354 | ||||||
Massachusetts Health and Educational Facilities Authority, (Boston College), 5.50%, 6/1/35 |
1,640 | 2,200,978 | ||||||
Massachusetts Health and Educational Facilities Authority, (Northeastern University), 5.00%, 10/1/35 |
1,350 | 1,488,173 | ||||||
University of Massachusetts Building Authority, 5.00%, 11/1/39 |
750 | 859,365 | ||||||
|
|
|||||||
$ | 12,673,620 | |||||||
|
|
|||||||
Escrowed/Prerefunded 14.1% |
||||||||
Boston, Prerefunded to 4/1/21, 4.00%, 4/1/24 |
$ | 300 | $ | 331,155 | ||||
Massachusetts Bay Transportation Authority, Prerefunded to 7/1/18, 5.25%, 7/1/34 |
40 | 41,509 | ||||||
Massachusetts Bay Transportation Authority, Prerefunded to 7/1/18, 5.25%, 7/1/34 |
100 | 103,773 | ||||||
Massachusetts Development Finance Agency, (New England Conservatory of Music), Prerefunded to 7/1/18, 5.25%, 7/1/38 |
625 | 648,419 | ||||||
Massachusetts Health and Educational Facilities Authority, (Berklee College of Music), Prerefunded to 10/1/17, 5.00%, 10/1/32 |
1,395 | 1,399,897 | ||||||
Massachusetts Health and Educational Facilities Authority, (Isabella Stewart Gardner Museum), Prerefunded to 5/1/19, 5.00%, 5/1/22 |
500 | 534,320 | ||||||
Massachusetts Health and Educational Facilities Authority, (Isabella Stewart Gardner Museum), Prerefunded to 5/1/19, 5.00%, 5/1/25 |
505 | 539,663 | ||||||
Massachusetts Health and Educational Facilities Authority, (Tufts University), Prerefunded to 8/15/18, 5.375%, 8/15/38 |
1,420 | 1,482,721 | ||||||
Newton, Prerefunded to 4/1/19, 5.00%, 4/1/36 |
750 | 799,215 | ||||||
|
|
|||||||
$ | 5,880,672 | |||||||
|
|
|||||||
General Obligations 9.0% |
||||||||
Danvers, 5.25%, 7/1/36 |
$ | 885 | $ | 1,011,546 | ||||
Lexington, 4.00%, 2/1/23 |
255 | 292,896 | ||||||
Plymouth, 5.00%, 5/1/31 |
345 | 389,105 | ||||||
Plymouth, 5.00%, 5/1/32 |
315 | 353,468 |
1
Security | Principal Amount (000s omitted) |
Value | ||||||
Wayland, 5.00%, 2/1/33 |
$ | 510 | $ | 569,634 | ||||
Wayland, 5.00%, 2/1/36 |
770 | 858,396 | ||||||
Winchester, 5.00%, 4/15/36 |
245 | 275,157 | ||||||
|
|
|||||||
$ | 3,750,202 | |||||||
|
|
|||||||
Hospital 26.9% |
||||||||
Massachusetts Development Finance Agency, (Berkshire Health Systems), 5.00%, 10/1/31 |
$ | 1,000 | $ | 1,117,470 | ||||
Massachusetts Development Finance Agency, (CareGroup), 5.00%, 7/1/33 |
180 | 205,634 | ||||||
Massachusetts Development Finance Agency, (Childrens Hospital), 5.00%, 10/1/31 |
525 | 617,909 | ||||||
Massachusetts Development Finance Agency, (Lahey Health System Obligated Group), 5.00%, 8/15/40 |
1,250 | 1,421,013 | ||||||
Massachusetts Development Finance Agency, (South Shore Hospital), 5.00%, 7/1/41 |
1,000 | 1,117,920 | ||||||
Massachusetts Development Finance Agency, (Tufts Medical Center), 7.25%, 1/1/32 |
600 | 699,162 | ||||||
Massachusetts Development Finance Agency, (UMass Memorial), 5.50%, 7/1/31 |
555 | 615,051 | ||||||
Massachusetts Health and Educational Facilities Authority, (Baystate Medical Center, Inc.), 5.75%, 7/1/36 |
1,210 | 1,312,511 | ||||||
Massachusetts Health and Educational Facilities Authority, (Childrens Hospital), 5.25%, 12/1/39 |
500 | 544,225 | ||||||
Massachusetts Health and Educational Facilities Authority, (Dana-Farber Cancer Institute), 5.00%, 12/1/37 |
1,135 | 1,188,765 | ||||||
Massachusetts Health and Educational Facilities Authority, (Lowell General Hospital), 5.125%, 7/1/35 |
970 | 1,033,166 | ||||||
Massachusetts Health and Educational Facilities Authority, (Partners HealthCare System), 5.00%, 7/1/32 |
945 | 948,185 | ||||||
Massachusetts Health and Educational Facilities Authority, (Southcoast Health System), 5.00%, 7/1/29 |
350 | 367,927 | ||||||
|
|
|||||||
$ | 11,188,938 | |||||||
|
|
|||||||
Housing 2.3% |
||||||||
Massachusetts Housing Finance Agency, 3.35%, 12/1/41 |
$ | 1,000 | $ | 982,330 | ||||
|
|
|||||||
$ | 982,330 | |||||||
|
|
|||||||
Industrial Development Revenue 1.9% |
||||||||
Massachusetts Development Finance Agency, (Covanta Energy), (AMT), 4.875%, 11/1/27(1) |
$ | 800 | $ | 800,720 | ||||
|
|
|||||||
$ | 800,720 | |||||||
|
|
|||||||
Insured-Education 7.6% |
||||||||
Massachusetts College Building Authority, (XLCA), 5.50%, 5/1/39 |
$ | 1,000 | $ | 1,388,010 | ||||
Massachusetts Development Finance Agency, (College of the Holy Cross), (AMBAC), 5.25%, 9/1/32(2) |
1,365 | 1,764,536 | ||||||
|
|
|||||||
$ | 3,152,546 | |||||||
|
|
|||||||
Insured-Electric Utilities 1.4% |
||||||||
Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/29 |
$ | 550 | $ | 582,307 | ||||
|
|
|||||||
$ | 582,307 | |||||||
|
|
|||||||
Insured-Escrowed/Prerefunded 0.9% |
||||||||
Massachusetts Health and Educational Facilities Authority, (Cape Cod Healthcare), (AGC), Prerefunded to 11/15/19, 5.00%, 11/15/25 |
$ | 335 | $ | 365,019 | ||||
|
|
|||||||
$ | 365,019 | |||||||
|
|
|||||||
Insured-General Obligations 3.2% |
||||||||
Massachusetts, (AMBAC), 5.50%, 8/1/30 |
$ | 1,000 | $ | 1,341,320 | ||||
|
|
|||||||
$ | 1,341,320 | |||||||
|
|
2
Security | Principal Amount (000s omitted) |
Value | ||||||
Insured-Other Revenue 2.0% |
||||||||
Massachusetts Development Finance Agency, (WGBH Educational Foundation), (AMBAC), 5.75%, 1/1/42 |
$ | 590 | $ | 820,643 | ||||
|
|
|||||||
$ | 820,643 | |||||||
|
|
|||||||
Insured-Special Tax Revenue 9.3% |
||||||||
Marthas Vineyard Land Bank, (BAM), 5.00%, 5/1/25 |
$ | 775 | $ | 937,579 | ||||
Marthas Vineyard Land Bank, (BAM), 5.00%, 5/1/28 |
1,195 | 1,408,188 | ||||||
Massachusetts, Special Obligation, Dedicated Tax Revenue, (NPFG), 5.50%, 1/1/29 |
1,000 | 1,296,750 | ||||||
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 |
1,105 | 229,807 | ||||||
|
|
|||||||
$ | 3,872,324 | |||||||
|
|
|||||||
Insured-Student Loan 0.4% |
||||||||
Massachusetts Educational Financing Authority, (AGC), (AMT), 6.35%, 1/1/30 |
$ | 145 | $ | 151,905 | ||||
|
|
|||||||
$ | 151,905 | |||||||
|
|
|||||||
Insured-Transportation 0.7% |
||||||||
Massachusetts Port Authority, (Bosfuel Project), (NPFG), (AMT), 5.00%, 7/1/32 |
$ | 315 | $ | 315,838 | ||||
|
|
|||||||
$ | 315,838 | |||||||
|
|
|||||||
Senior Living/Life Care 1.8% |
||||||||
Massachusetts Development Finance Agency, (Carleton-Willard Village), 5.625%, 12/1/30 |
$ | 125 | $ | 134,441 | ||||
Massachusetts Development Finance Agency, (VOA Concord Assisted Living, Inc.), 5.125%, 11/1/27(1) |
140 | 140,219 | ||||||
Massachusetts Development Finance Agency, (VOA Concord Assisted Living, Inc.), 5.20%, 11/1/41(1) |
475 | 475,375 | ||||||
|
|
|||||||
$ | 750,035 | |||||||
|
|
|||||||
Special Tax Revenue 7.1% |
||||||||
Massachusetts School Building Authority, Sales Tax Revenue, 5.00%, 11/15/46 |
$ | 1,500 | $ | 1,766,100 | ||||
Massachusetts, (Rail Enhancement and Accelerated Bridge Programs), 5.00%, 6/1/41 |
1,000 | 1,176,430 | ||||||
|
|
|||||||
$ | 2,942,530 | |||||||
|
|
|||||||
Student Loan 3.6% |
||||||||
Massachusetts Educational Financing Authority, (AMT), 3.50%, 7/1/33 |
$ | 1,500 | $ | 1,495,425 | ||||
|
|
|||||||
$ | 1,495,425 | |||||||
|
|
|||||||
Transportation 10.4% |
||||||||
Massachusetts Department of Transportation, (Metropolitan Highway System), 5.00%, 1/1/37 |
$ | 1,500 | $ | 1,617,030 | ||||
Massachusetts Port Authority, 5.00%, 7/1/28 |
500 | 554,985 | ||||||
Massachusetts Port Authority, 5.00%, 7/1/34 |
670 | 735,392 | ||||||
Massachusetts Port Authority, 5.00%, 7/1/45 |
1,250 | 1,447,900 | ||||||
|
|
|||||||
$ | 4,355,307 | |||||||
|
|
|||||||
Water and Sewer 5.6% |
||||||||
Boston Water and Sewer Commission, Prerefunded to 11/1/19, 5.00%, 11/1/29 |
$ | 495 | $ | 538,515 | ||||
Massachusetts Water Resources Authority, Green Bonds, 5.00%, 8/1/40 |
1,500 | 1,776,960 | ||||||
|
|
|||||||
$ | 2,315,475 | |||||||
|
|
|||||||
Total Tax-Exempt Municipal Securities
144.6% |
$ | 60,224,130 | ||||||
|
|
3
Taxable Municipal Securities 2.0% |
||||||||
Security | Principal Amount (000s omitted) |
Value | ||||||
Student Loan 2.0% |
||||||||
Massachusetts Educational Financing Authority, 4.70%, 1/1/30 |
$ | 750 | $ | 823,972 | ||||
|
|
|||||||
Total Taxable Municipal Securities 2.0% |
$ | 823,972 | ||||||
|
|
|||||||
Total Investments 146.6% |
$ | 61,048,102 | ||||||
|
|
|||||||
Auction Preferred Shares Plus Cumulative Unpaid Dividends (7.8)% |
$ | (3,250,198 | ) | |||||
|
|
|||||||
Institutional MuniFund Term Preferred Shares, at Liquidation Value |
$ | (16,712,602 | ) | |||||
|
|
|||||||
Other Assets, Less Liabilities 1.3% |
$ | 549,774 | ||||||
|
|
|||||||
Net Assets Applicable to Common Shares 100.0% |
$ | 41,635,076 | ||||||
|
|
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 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 August 31, 2017, 17.4% 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 0.8% to 6.4% of total investments.
(1) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be sold in certain transactions in reliance on an exemption from registration (normally to qualified institutional buyers). At August 31, 2017, the aggregate value of these securities is $1,416,314 or 3.4% of the Trusts net assets applicable to common shares. |
(2) | Security represents the municipal bond held by a trust that issues residual interest bonds. |
Abbreviations:
AGC |
- | Assured Guaranty 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. | ||
BAM |
- | Build America Mutual Assurance Co. | ||
NPFG |
- | National Public Finance Guaranty Corp. | ||
XLCA |
- | XL Capital Assurance, Inc. |
4
The Trust did not have any open derivative instruments at August 31, 2017.
The cost and unrealized appreciation (depreciation) of investments of the Trust at August 31, 2017, as determined on a federal income tax basis, were as follows:
Aggregate cost |
$ | 54,974,056 | ||
|
|
|||
Gross unrealized appreciation |
$ | 5,237,849 | ||
Gross unrealized depreciation |
(73,803 | ) | ||
|
|
|||
Net unrealized appreciation |
$ | 5,164,046 | ||
|
|
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.
At August 31, 2017, the hierarchy of inputs used in valuing the Trusts investments, which are carried at value, were as follows:
Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Tax-Exempt Municipal Securities |
$ | | $ | 60,224,130 | $ | | $ | 60,224,130 | ||||||||
Taxable Municipal Securities |
| 823,972 | | 823,972 | ||||||||||||
Total Investments |
$ | | $ | 61,048,102 | $ | | $ | 61,048,102 |
The Trust held no investments or other financial instruments as of November 30, 2016 whose fair value was determined using Level 3 inputs. At August 31, 2017, there were no investments transferred between Level 1 and Level 2 during the fiscal year to date then ended.
For information on the Trusts policy regarding the valuation of investments and other significant accounting policies, please refer to the Trusts 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 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 Income Trust
By: | /s/ Payson F. Swaffield | |
Payson F. Swaffield | ||
President | ||
Date: | October 24, 2017 |
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, 2017 |
By: | /s/ James F. Kirchner | |
James F. Kirchner | ||
Treasurer | ||
Date: | October 24, 2017 |