Eaton Vance Ohio 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
811-09149
Investment Company Act File Number
Eaton Vance Ohio 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, 2010
Date of Reporting Period
 
 

 

 

Item 1. Schedule of Investments

 

 

Eaton Vance Ohio Municipal Income Trust as of August 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
Tax-Exempt Investments — 155.9%
 
                 
Principal
 		           
Amount
 		           
(000’s omitted)     Security   Value  
Education — 3.3%
$ 1,250    
Ohio Higher Educational Facility Commission, (Kenyon College), 5.25%, 7/1/44
  $ 1,334,000  
                 
            $ 1,334,000  
                 
Electric Utilities — 0.8%
$ 310    
Clyde, Electric System Revenue, (AMT), 6.00%, 11/15/14
  $ 310,533  
                 
            $ 310,533  
                 
Escrowed/Prerefunded — 13.2%
$ 1,000    
Delaware County, Prerefunded to 12/1/10, 6.00%, 12/1/25
  $ 1,024,440  
  1,000    
Mahoning County, (Career and Technical Center), Prerefunded to 12/1/11, 6.25%, 12/1/36
    1,070,090  
  2,530    
Puerto Rico Infrastructure Financing Authority, Prerefunded to 10/1/10, 5.50%, 10/1/32
    2,566,483  
  670    
Richland County Hospital Facilities, (MedCentral Health Systems), Prerefunded to 11/15/10, 6.375%, 11/15/22
    684,827  
                 
            $ 5,345,840  
                 
General Obligations — 16.9%
$ 1,000    
Barberton City School District, 4.50%, 12/1/33
  $ 1,026,610  
  1,750    
Beavercreek City School District, 5.00%, 12/1/30
    1,923,442  
  1,090    
Central Ohio Solid Waste Authority, 5.125%, 9/1/27
    1,217,901  
  500    
Columbus, 5.00%, 7/1/23(1)
    543,020  
  1,000    
Columbus City School District, 5.00%, 12/1/29
    1,109,680  
  1,000    
Maple Heights City School District, 5.00%, 1/15/37
    1,028,630  
                 
            $ 6,849,283  
                 
Hospital — 12.0%
$ 800    
Franklin County, (Nationwide Children’s Hospital), 5.00%, 11/1/34
  $ 834,616  
  500    
Miami County, (Upper Valley Medical Center), 5.25%, 5/15/26
    515,250  
  500    
Montgomery County, (Catholic Health Initiatives), 5.50%, 5/1/34
    550,980  
  1,000    
Ohio Higher Educational Facility Commission, (Cleveland Clinic Health System), 5.50%, 1/1/39
    1,084,700  
  600    
Ohio Higher Educational Facility Commission, (Summa Health System), 5.75%, 11/15/40
    618,846  
  955    
Ohio Higher Educational Facility Commission, (University Hospitals Health System, Inc.), 4.75%, 1/15/46
    932,557  
  330    
Richland County Hospital Facilities, (MedCentral Health Systems), 6.375%, 11/15/22
    334,650  
                 
            $ 4,871,599  
                 
Housing — 11.3%
$ 980    
Ohio Housing Finance Agency, (Residential Mortgage-Backed Securities), (AMT), 4.625%, 9/1/27
  $ 980,764  
  560    
Ohio Housing Finance Agency, (Residential Mortgage-Backed Securities), (AMT), 4.75%, 3/1/37
    553,342  
  470    
Ohio Housing Finance Agency, (Residential Mortgage-Backed Securities), (AMT), 5.00%, 9/1/31
    475,175  
  2,500    
Ohio Housing Finance Agency, (Uptown Community Partners), (AMT), 5.25%, 4/20/48
    2,551,025  
                 
            $ 4,560,306  
                 
 
1

 

                 
Principal
 		           
Amount
 		           
(000’s omitted)     Security   Value  
Industrial Development Revenue — 7.8%
$ 750    
Cleveland Airport, (Continental Airlines), (AMT), 5.375%, 9/15/27
  $ 660,300  
  2,250    
Ohio Water Development Authority, (Anheuser-Busch Cos., Inc.), (AMT), 6.00%, 8/1/38
    2,251,822  
  225    
Ohio Water Development Authority, Solid Waste Disposal, (Allied Waste North America, Inc.), (AMT), 5.15%, 7/15/15
    229,959  
                 
            $ 3,142,081  
                 
Insured-Education — 12.9%
$ 750    
Hamilton County, (University Heights Community Urban Development Corp.), (AGM), 5.00%, 6/1/30
  $ 798,165  
  1,000    
Kent State University, (AGC), 5.00%, 5/1/26
    1,120,380  
  465    
Kent State University, (AGC), 5.00%, 5/1/29
    509,631  
  730    
Miami University, (AMBAC), 3.25%, 9/1/26
    673,914  
  1,500    
University of Akron, Series A, (AGM), 5.00%, 1/1/38
    1,584,195  
  500    
University of Akron, Series B, (AGM), 5.00%, 1/1/38
    528,065  
                 
            $ 5,214,350  
                 
Insured-Electric Utilities — 13.1%
$ 1,000    
American Municipal Power-Ohio, Inc., (Prairie State Energy Campus), (AGC), 5.75%, 2/15/39
  $ 1,103,350  
  710    
Cleveland Public Power System, (NPFG), 0.00%, 11/15/27
    319,244  
  2,000    
Cleveland Public Power System, (NPFG), 0.00%, 11/15/38
    453,100  
  830    
Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/25
    435,601  
  3,000    
Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/26
    1,485,450  
  425    
Ohio Water Development Authority, (Dayton Power & Light), (FGIC), 4.80%, 1/1/34
    430,788  
  210    
Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/30
    233,442  
  250    
Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/34
    273,743  
  500    
Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26
    574,670  
                 
            $ 5,309,388  
                 
Insured-Escrowed/Prerefunded — 3.8%
$ 1,000    
Ohio Higher Educational Facility Commission, (University of Dayton), (AMBAC), Prerefunded to 12/1/10, 5.50%, 12/1/30
  $ 1,022,310  
  500    
University of Cincinnati, (FGIC), Prerefunded to 6/1/11, 5.25%, 6/1/24
    523,690  
                 
            $ 1,546,000  
                 
Insured-General Obligations — 16.6%
$ 280    
Bowling Green City School District, (AGM), 5.00%, 12/1/34
  $ 295,641  
  200    
Brookfield Local School District, (AGM), 5.00%, 1/15/30
    216,700  
  500    
Buckeye Valley Local School District, (AGC), 5.00%, 12/1/36
    530,300  
  2,455    
Canal Winchester Local School District, (NPFG), 0.00%, 12/1/30
    972,794  
  1,500    
Madeira City School District, (AGM), 3.50%, 12/1/27
    1,497,045  
  1,750    
Milford Exempt Village School District, (AGC), 5.25%, 12/1/36
    1,899,117  
  750    
St. Mary’s School District, (AGM), 5.00%, 12/1/35
    789,548  
  500    
Wadsworth City School District, (AGC), 5.00%, 12/1/37
    530,040  
                 
            $ 6,731,185  
                 
Insured-Hospital — 6.6%
$ 545    
Hamilton County, (Cincinnati Children’s Hospital), (FGIC), (NPFG), 5.00%, 5/15/32
  $ 550,832  
  1,500    
Hamilton County, (Cincinnati Children’s Hospital), (FGIC), (NPFG), 5.125%, 5/15/28
    1,532,085  
  485    
Lorain County, (Catholic Healthcare Partners), (AGM), Variable Rate, 14.656%, 
2/1/29(2)(3)(4)
    589,197  
                 
            $ 2,672,114  
                 
 
2

 

                 
Principal
 		           
Amount
 		           
(000’s omitted)     Security   Value  
Insured-Lease Revenue/Certificates of Participation — 1.1%
$ 500    
Summit County, (Civic Theater Project), (AMBAC), 5.00%, 12/1/33
  $ 429,320  
                 
            $ 429,320  
                 
Insured-Special Tax Revenue — 3.9%
$ 9,905    
Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54
  $ 682,752  
  1,685    
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44
    232,176  
  3,340    
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
    428,689  
  2,100    
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46
    250,887  
                 
            $ 1,594,504  
                 
Insured-Transportation — 6.9%
$ 385    
Cleveland Airport System, (AGM), 5.00%, 1/1/31
  $ 385,593  
  1,000    
Ohio Turnpike Commission, (FGIC), (NPFG), 5.50%, 2/15/24
    1,186,610  
  1,000    
Ohio Turnpike Commission, (FGIC), (NPFG), 5.50%, 2/15/26
    1,219,030  
                 
            $ 2,791,233  
                 
Insured-Water and Sewer — 2.1%
$ 215    
Marysville Wastewater Treatment System, (AGC), (XLCA), 4.75%, 12/1/46
  $ 218,156  
  625    
Marysville Wastewater Treatment System, (AGC), (XLCA), 4.75%, 12/1/47
    635,150  
                 
            $ 853,306  
                 
Lease Revenue/Certificates of Participation — 1.4%
$ 500    
Franklin County Convention Facilities Authority, 5.00%, 12/1/27
  $ 560,030  
                 
            $ 560,030  
                 
Other Revenue — 4.2%
$ 7,345    
Buckeye Tobacco Settlement Financing Authority, 0.00%, 6/1/47
  $ 233,277  
  710    
Buckeye Tobacco Settlement Financing Authority, 5.875%, 6/1/47
    518,464  
  1,000    
Riversouth Authority, (Lazarus Building Redevelopment), 5.75%, 12/1/27
    963,380  
                 
            $ 1,715,121  
                 
Pooled Loans — 10.7%
$ 550    
Ohio Economic Development Commission, (Ohio Enterprise Bond Fund), (AMT), 4.85%, 6/1/25
  $ 574,002  
  1,020    
Ohio Economic Development Commission, (Ohio Enterprise Bond Fund), (AMT), 5.85%, 12/1/22
    1,077,579  
  1,245    
Rickenbacher Port Authority, Oasbo Expanded Asset Pool Loan, 5.375%, 1/1/32(5)
    1,379,684  
  310    
Summit County Port Authority, (Twinsburg Township), 5.125%, 5/15/25
    279,645  
  1,100    
Toledo-Lucas County Port Authority, 5.40%, 5/15/19
    1,017,984  
                 
            $ 4,328,894  
                 
Special Tax Revenue — 5.9%
$ 520    
Cleveland-Cuyahoga County Port Authority, 7.00%, 12/1/18
  $ 531,700  
  1,375    
Cuyahoga County Economic Development, (Shaker Square), 6.75%, 12/1/30
    1,410,063  
  155    
Guam, Limited Obligation Bonds, 5.625%, 12/1/29
    164,805  
  170    
Guam, Limited Obligation Bonds, 5.75%, 12/1/34
    179,207  
  110    
Virgin Islands Public Finance Authority, 6.75%, 10/1/37
    124,666  
                 
            $ 2,410,441  
                 
 
3

 

                 
Principal
 		           
Amount
 		           
(000’s omitted)     Security   Value  
Water and Sewer — 1.4%
$ 250    
Ohio Water Development Authority, Water Pollution Control, (Water Quality), 5.00%, 12/1/28
  $ 284,805  
  250    
Ohio Water Development Authority, Water Pollution Control, (Water Quality), 5.00%, 6/1/30
    281,190  
                 
            $ 565,995  
                 
         
Total Tax-Exempt Investments — 155.9%
(identified cost $60,508,393)
  $ 63,135,523  
         
         
Auction Preferred Shares Plus Cumulative Unpaid Dividends — (56.1)%
  $ (22,726,991 )
         
         
Other Assets, Less Liabilities — 0.2%
  $ 90,367  
         
         
Net Assets Applicable to Common Shares — 100.0%
  $ 40,498,899  
         
 
             
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.
         
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.
         
FGIC
  -   Financial Guaranty Insurance Company
         
NPFG
  -   National Public Finance Guaranty Corp.
         
XLCA
  -   XL Capital Assurance, Inc.
 
The Trust invests primarily in debt securities issued by Ohio 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, 2010, 43.0% 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 ranged from 1.4% to 16.1% of total investments.
         
(1)
      Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.
         
(2)
      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 August 31, 2010, the aggregate value of the securities is $589,197 or 1.5% of the Trust’s net assets applicable to common shares.
         
(3)
      Security is subject to a shortfall agreement which may require the Trust to pay amounts to a counterparty in the event of a significant decline in the market value of the security underlying the inverse floater. In case of a shortfall, the maximum potential amount of payments the Trust could ultimately be required to make under the agreement is $1,455,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security underlying the inverse floater.
         
(4)
      Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at August 31, 2010.
         
(5)
      Security represents the underlying municipal bond of an inverse floater.
 
4

 

A summary of financial instruments outstanding at August 31, 2010 is as follows:
 
Futures Contracts
 
                                 
Expiration
 		          Aggregate
 		          Net Unrealized
 		 
Date   Contracts   Position   Cost     Value     Depreciation  
12/10
  3 U.S. 10-Year Treasury Note   Short   $ (374,521 )   $ (376,875 )   $ (2,354 )
12/10
  3 U.S. 30-Year Treasury Bond   Short     (403,138 )     (405,093 )     (1,955 )
                                 
                            $ (4,309 )
                                 
 
Interest Rate Swaps
                                 
          Annual
 		    Floating
 		  Effective Date/
 		     
    Notional
 		    Fixed Rate
 		    Rate
 		  Termination
 		  Net Unrealized
 		 
Counterparty   Amount     Paid By Trust     Paid To Trust   Date   Depreciation  
JPMorgan Chase Co. 
  $ 812,500       4.046 %   3-month
USD-LIBOR-BBA 		  September 17, 2010 /
September 17, 2040 		  $ (144,607 )
Merrill Lynch Capital Services, Inc. 
    750,000       3.374     3-month
USD-LIBOR-BBA 		  November 24, 2010 /
November 24, 2040 		    (29,030 )
                                 
                            $ (173,637 )
                                 
 
The effective date represents the date on which the Trust and the counterparty to the interest rate swap contract begin interest payment accruals.
 
At August 31, 2010, the Trust had sufficient cash and/or securities to cover commitments under these contracts.
 
The Trust is subject to interest rate risk in the normal course of pursuing its investment objectives. Because the Trust holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To hedge against this risk, the Trust may enter into interest rate swap contracts. The Trust may also purchase and sell U.S. Treasury futures contracts to hedge against changes in interest rates.
 
At August 31, 2010, the aggregate fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in a liability position and whose primary underlying risk exposure is interest rate risk was $177,946.
 
The cost and unrealized appreciation (depreciation) of investments of the Trust at August 31, 2010, as determined on a federal income tax basis, were as follows:
 
         
Aggregate cost
  $ 59,753,288  
         
Gross unrealized appreciation
  $ 3,990,677  
Gross unrealized depreciation
    (1,438,442 )
         
Net unrealized appreciation
  $ 2,552,235  
         
 
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)
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
 
5

 

At August 31, 2010, the inputs used in valuing the Trust’s investments, which are carried at value, were as follows:
 
                                 
    Quoted Prices in
 		                   
    Active Markets for
 		    Significant Other
 		    Significant
 		       
    Identical Assets     Observable Inputs     Unobservable Inputs        
       
Asset Description   (Level 1)     (Level 2)     (Level 3)     Total  
   
Tax-Exempt Investments
  $ —     $ 63,135,523     $ —     $ 63,135,523  
 
 
Total Investments
  $ —     $ 63,135,523     $ —     $ 63,135,523  
 
 
                                 
Liability Description                        
   
Futures Contracts
  $ (4,309 )   $ —     $ —     $ (4,309 )
Interest Rate Swaps
    —       (173,637 )     —       (173,637 )
 
 
Total
  $ (4,309 )   $ (173,637 )   $ —     $ (177,946 )
 
 
 
The Trust held no investments or other financial instruments as of November 30, 2009 whose fair value was determined using Level 3 inputs.
 
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.
 
6

 

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 Ohio Municipal Income Trust
 
         
By:
  /s/ Cynthia J. Clemson
 
Cynthia J. Clemson 		   
 
  President    
Date: October 25, 2010
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/ Cynthia J. Clemson
 
Cynthia J. Clemson 		   
 
  President    
Date: October 25, 2010
 
         
By:
  /s/ Barbara E. Campbell
 
Barbara E. Campbell 		   
 
  Treasurer    
Date: October 25, 2010