N-Q 1 b79655a1nvq.htm EATON VANCE NATIONAL MUNICIPAL OPPORTUNITIES TRUST Eaton Vance National Municipal Opportunities Trust
Table of Contents

 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form N-Q
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
 
811-22269
Investment Company Act File Number
 
Eaton Vance National Municipal Opportunities 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)
 
March 31
Date of Fiscal Year End
 
December 31, 2009
Date of Reporting Period
 

Table of Contents

Eaton Vance National Municipal Opportunities Trust as of December 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
Tax-Exempt Investments — 114.4%
 
                 
Principal
 		           
Amount
 		           
(000’s omitted)     Security   Value  
Cogeneration — 1.1%
$ 1,500    
Maryland Energy Financing Administration, (AES Warrior Run), (AMT), 7.40%, 9/1/19
  $ 1,500,360  
  2,350    
Pennsylvania Economic Development Financing Authority, (Resource Recovery-Colver), (AMT), 5.125%, 12/1/15
    2,131,826  
                 
            $ 3,632,186  
                 
Education — 11.5%
$ 4,900    
Connecticut Health and Educational Facilities Authority, (Yale University), 5.05%, 7/1/42(1)
  $ 5,186,601  
  10,440    
Maine Health and Higher Educational Facilities Authority, (Bowdoin College), 5.00%, 7/1/39(2)
    10,811,351  
  12,000    
New Hampshire Health and Education Facilities Authority, (Dartmouth College), 5.25%, 6/1/39(2)
    13,044,240  
  1,500    
New York Dormitory Authority, (Brooklyn Law School), 5.75%, 7/1/33
    1,537,500  
  3,160    
North Carolina Capital Facilities Finance Agency, (Duke University), 5.00%, 10/1/38
    3,355,667  
  2,650    
University of Virginia, 5.00%, 6/1/40(3)
    2,817,268  
                 
            $ 36,752,627  
                 
Electric Utilities — 9.4%
$ 3,650    
Chula Vista, CA, (San Diego Gas and Electric), 5.875%, 1/1/34
  $ 4,005,181  
  2,815    
Chula Vista, CA, (San Diego Gas and Electric), 5.875%, 2/15/34
    3,088,928  
  2,310    
Hawaii Department of Budget and Finance, (Hawaiian Electric Co.), 6.50%, 7/1/39
    2,477,406  
  6,000    
Matagorda County, TX, Navigation District No. 1, (Central Power and Light Co.), 6.30%, 11/1/29
    6,490,260  
  13,500    
Salt River Project Agricultural Improvement & Power District, AZ, 5.00%, 1/1/38(2)
    14,082,930  
                 
            $ 30,144,705  
                 
General Obligations — 3.8%
$ 5,750    
California, 6.00%, 4/1/38
  $ 5,892,830  
  3,000    
Guam, 7.00%, 11/15/39
    3,087,930  
  3,000    
Michigan Municipal Bond Authority, 9.50%, 8/20/10
    2,996,910  
                 
            $ 11,977,670  
                 
Health Care-Miscellaneous — 3.0%
$ 9,000    
New Jersey Health Care Facilities Financing Authority, (Community Hospital Group, Inc.), 5.75%, 10/1/31
  $ 9,666,000  
                 
            $ 9,666,000  
                 
Hospital — 20.4%
$ 980    
California Health Facilities Financing Authority, (Catholic Healthcare West), 6.00%, 7/1/34
  $ 1,032,185  
  1,000    
California Health Facilities Financing Authority, (Catholic Healthcare West), 6.00%, 7/1/39
    1,048,680  
  12,300    
Harris County, TX, Cultural Education Facilities Finance Corp., (Texas Children’s Hospital), 5.50%, 10/1/39(2)
    12,597,373  
  3,000    
Illinois Finance Authority, (Provena Healthcare), 7.75%, 8/15/34
    3,379,260  
  3,500    
Illinois Finance Authority, (Rush University Medical Center), 6.625%, 11/1/39
    3,797,395  
  5,915    
Kansas Development Finance Authority, (Adventist Healthcare), 5.75%, 11/15/38
    6,121,729  
  3,400    
Maricopa County, AZ, Industrial Development Authority, (Catholic Healthcare), 6.00%, 7/1/39
    3,555,210  
  3,725    
Massachusetts Health and Educational Facilities Authority, (Jordan Hospital), 6.75%, 10/1/33
    3,369,225  
  7,395    
Michigan Hospital Finance Authority, (Henry Ford Health System), 5.25%, 11/15/46
    6,424,406  
  4,335    
New Jersey Health Care Facilities Financing Authority, (Kennedy Health System), 5.625%, 7/1/31
    4,361,877  
  1,000    
New York Dormitory Authority, (NYU Hospital Center), 5.625%, 7/1/37
    978,780  
  1,365    
South Lake County, FL, Hospital District, (South Lake Hospital), 6.25%, 4/1/39(4)
    1,370,351  
  3,750    
St. Paul, MN, Housing and Redevelopment Authority, (Health East Project), 6.00%, 11/15/35
    3,345,075  
  1,225    
Sullivan County, TN, Health, Educational and Facilities Board, (Wellmont Health System), Variable Rate, 5.44%, 9/1/32
    1,072,488  
  3,150    
Sullivan County, TN, Health, Educational and Facilities Board, (Wellmont Health System), 5.25%, 9/1/36
    2,650,473  
  4,500    
Tyler, TX, Health Facilities Development Corp., (East Texas Medical Center), 5.375%, 11/1/37
    4,394,880  
  5,000    
Wisconsin Health and Educational Facilities Authority, (Wheaton Franciscan Healthcare), 5.125%, 8/15/30
    4,448,050  
 
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Principal
 		           
Amount
 		           
(000’s omitted)     Security   Value  
$ 1,500    
Wisconsin Health and Educational Facilities Authority, (Wheaton Franciscan Healthcare), 5.25%, 8/15/34
  $ 1,310,925  
                 
            $ 65,258,362  
                 
Housing — 3.4%
$ 11,205    
Maryland Community Development Administration, Department of Housing and Community Development, (AMT), 5.15%, 9/1/42(2)
  $ 10,978,734  
                 
            $ 10,978,734  
                 
Industrial Development Revenue — 20.0%
$ 5,000    
Alabama Industrial Development Authority, (Pine City Fiber Co.), (AMT), 6.45%, 12/1/23
  $ 3,096,250  
  5,000    
Alliance Airport Authority, TX, (American Airlines, Inc.), (AMT), 5.75%, 12/1/29
    3,291,250  
  3,000    
Brazos River, TX, Harbor Navigation District, (Dow Chemical Co.), (AMT), 5.95%, 5/15/33
    2,962,470  
  5,000    
California Pollution Control Financing Authority, (Waste Management, Inc.), (AMT), 5.125%, 11/1/23
    4,881,100  
  4,210    
Campbell County, WY, Solid Waste Facilities, (Basin Electric Power Cooperative), 5.75%, 7/15/39
    4,453,675  
  3,420    
Clayton County, GA, Development Authority, (Delta Airlines, Inc), 8.75%, 6/1/29
    3,469,898  
  240    
Effingham County, GA, Solid Waste Disposal, (Fort James Project), (AMT), 5.625%, 7/1/18
    222,312  
  125    
Goochland County, VA, Industrial Development Authority, (Nekoosa Packaging Corp.), (AMT), 5.65%, 12/1/25
    109,569  
  2,750    
Gulf Coast, TX, Waste Disposal Authority, (International Paper Co.), (AMT), 6.10%, 8/1/24
    2,708,145  
  1,000    
Gulf Coast, TX, Waste Disposal Authority, (Valero Energy Corp.), (AMT), 6.65%, 4/1/32
    1,008,770  
  3,500    
Houston, TX, Airport System, (Continental Airlines), (AMT), 6.75%, 7/1/29
    3,280,795  
  9,000    
Indiana Financing Authority, (Duke Energy Indiana, Inc.), 6.00%, 8/1/39
    9,763,830  
  5,250    
Liberty Development Corp., NY, (Goldman Sachs Group, Inc.), 5.25%, 10/1/35
    5,249,527  
  1,800    
Nevada Department of Business and Industry, (Republic Services, Inc.), (AMT), 5.625% to 6/1/18 (Put Date), 12/1/26
    1,846,350  
  3,000    
New Jersey Economic Development Authority, (Continental Airlines), (AMT), 6.25%, 9/15/29
    2,602,950  
  2,000    
New York, NY, Industrial Development Agency, (American Airlines, Inc. - JFK International Airport), (AMT), 7.75%, 8/1/31
    1,999,800  
  3,000    
Owen County, KY, (American Water Project), 6.25%, 6/1/39
    3,183,870  
  380    
Richland County, SC, (International Paper Co.), (AMT), 6.10%, 4/1/23
    381,239  
  205    
Sabine River Authority, LA, (International Paper Co.), 6.20%, 2/1/25
    207,446  
  6,865    
St. John Baptist Parish, LA, (Marathon Oil Corp.), 5.125%, 6/1/37
    6,213,168  
  2,600    
Virgin Islands, (HOVENSA, LLC), (AMT), 6.50%, 7/1/21
    2,631,668  
  340    
Virgin Islands Public Finance Authority, (HOVENSA Refinery), (AMT), 6.125%, 7/1/22
    342,414  
                 
            $ 63,906,496  
                 
Insured-Lease Revenue/Certificates of Participation — 0.3%
$ 1,000    
Hudson Yards, NY, Infrastructure Corp., (NPFG), 4.50%, 2/15/47
  $ 850,010  
                 
            $ 850,010  
                 
Insured-Special Tax Revenue — 4.5%
$ 205    
Hesperia, CA, Community Redevelopment Agency, (XLCA), 5.00%, 9/1/25
  $ 177,768  
  425    
Hesperia, CA, Public Financing Authority, (Redevelopment and Housing Project), (XLCA), 5.00%, 9/1/37
    345,916  
  4,000    
Miami-Dade County, FL, Professional Sports Franchise Facilities, (AGC), 0.00%, 10/1/34
    2,311,560  
  6,000    
Miami-Dade County, FL, Professional Sports Franchise Facilities, (AGC), 0.00%, 10/1/39
    3,440,040  
  143,345    
Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54
    8,226,569  
                 
            $ 14,501,853  
                 
Insured-Transportation — 4.2%
$ 4,000    
Foothill/Eastern, CA, Transportation Corridor Agency, (NPFG), 0.00%, 1/15/30
  $ 1,013,480  
  500    
Foothill/Eastern, CA, Transportation Corridor Agency, (NPFG), 0.00%, 1/15/32
    116,010  
  4,000    
North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), 0.00%, 1/1/35
    884,080  
  15,000    
North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), 0.00%, 1/1/36
    3,105,450  
  7,850    
San Jose, CA, Airport, (AGM), (AMBAC), (BHAC), (AMT), 6.00%, 3/1/47
    8,286,382  
                 
            $ 13,405,402  
                 
 
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Principal
 		           
Amount
 		           
(000’s omitted)     Security   Value  
Lease Revenue/Certificates of Participation — 0.7%
$ 2,000    
Mohave County, AZ, Industrial Development Authority, (Mohave Prison LLC), 8.00%, 5/1/25
  $ 2,270,800  
                 
            $ 2,270,800  
                 
Other Revenue — 7.2%
$ 510    
Brooklyn, NY, Arena Local Development Corp., 6.00%, 7/15/30
  $ 519,996  
  575    
Brooklyn, NY, Arena Local Development Corp., 6.25%, 7/15/40
    585,488  
  315    
Brooklyn, NY, Arena Local Development Corp., 6.375%, 7/15/43
    320,358  
  115,000    
Buckeye Tobacco Settlement Financing Authority, OH, 0.00%, 6/1/47
    4,838,050  
  12,950    
California County, CA, Tobacco Securitization Agency, 0.00%, 6/1/46
    541,440  
  4,430    
Golden State Tobacco Securitization Corp., CA, 0.00%, 6/1/37
    2,763,168  
  6,190    
Golden State Tobacco Securitization Corp., CA, 5.75%, 6/1/47
    4,620,711  
  3,600    
Michigan Tobacco Settlement Finance Authority, 6.00%, 6/1/48
    2,771,136  
  31,900    
Northern Tobacco Securitization Corp., AK, 0.00%, 6/1/46
    1,347,775  
  2,000    
Salt Verde, AZ, Financial Corp., Senior Gas Revenue, 5.00%, 12/1/37
    1,711,380  
  3,000    
Tennessee Energy Acquisition Corp., Gas Revenue, 5.25%, 9/1/26
    2,944,260  
                 
            $ 22,963,762  
                 
Senior Living/Life Care — 1.1%
$ 640    
Maryland Health and Higher Educational Facilities Authority, (King Farm Presbyterian Community), 5.00%, 1/1/17
  $ 584,672  
  1,000    
Mount Vernon, NY, Industrial Development Agency, (Wartburg Senior Housing, Inc.), 6.20%, 6/1/29
    910,760  
  2,500    
Washington State Housing Finance Commission, (Wesley Homes), 6.20%, 1/1/36
    2,130,550  
                 
            $ 3,625,982  
                 
Special Tax Revenue — 3.5%
$ 1,340    
Denver, CO, Urban Renewal Authority, 8.00%, 12/1/24
  $ 858,029  
  1,625    
Guam, Limited Obligation Bonds, 5.625%, 12/1/29
    1,639,040  
  3,020    
Guam, Limited Obligation Bonds, 5.75%, 12/1/34
    3,047,089  
  3,195    
Heritage Harbor South, FL, Community Development District, (Capital Improvements), 6.50%, 5/1/34
    3,152,379  
  965    
Virgin Islands Public Finance Authority, 5.00%, 10/1/39
    862,353  
  1,615    
Virgin Islands Public Finance Authority, 6.75%, 10/1/37
    1,702,145  
                 
            $ 11,261,035  
                 
Student Loan — 2.0%
$ 6,000    
Massachusetts Educational Financing Authority, 6.00%, 1/1/28
  $ 6,423,780  
                 
            $ 6,423,780  
                 
Transportation — 7.5%
$ 1,365    
Bay Area Toll Authority, CA, Toll Bridge Revenue, (San Francisco Bay Area), 5.00%, 4/1/34
  $ 1,391,235  
  1,345    
Branson, MO, Regional Airport Transportation Development District, (Branson Airport, LLC), (AMT), 6.00%, 7/1/37
    868,991  
  58,500    
New Jersey Transportation Trust Fund Authority, (Transportation System), 0.00%, 12/15/38
    10,240,425  
  5,000    
North Texas Tollway Authority, 5.75%, 1/1/38
    5,083,250  
  5,000    
St. Louis, MO, (Lambert-St. Louis International Airport), 6.625%, 7/1/34
    5,290,600  
  1,110    
Texas Private Activity Bond Surface Transportation Corp., (North Tarrant Express Managed Lanes Project), 6.875%, 12/31/39
    1,151,081  
                 
            $ 24,025,582  
                 
Water and Sewer — 10.8%
$ 3,000    
Atlanta, GA, Water & Wastewater Revenue, 6.25%, 11/1/34
  $ 3,201,750  
  5,000    
New York Environmental Facilities Corp., Clean Water and Drinking Water, (Municipal Water Finance), 5.00%, 10/15/35
    5,218,850  
  7,500    
New York Environmental Facilities Corp., Clean Water and Drinking Water, (Municipal Water Finance), 5.00%, 6/15/37
    7,803,975  
  1,000    
New York Environmental Facilities Corp., Clean Water and Drinking Water, (Municipal Water Finance), 5.125%, 6/15/38
    1,053,190  
 
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Principal
 		           
Amount
 		           
(000’s omitted)     Security   Value  
$ 4,500    
New York, NY, Municipal Water Finance Authority, (Water and Sewer System), 5.00%, 6/15/37
  $ 4,632,480  
  11,700    
New York, NY, Municipal Water Finance Authority, (Water and Sewer System), 5.25%, 6/15/40(2)
    12,476,295  
                 
            $ 34,386,540  
                 
         
Total Tax-Exempt Investments — 114.4%
(identified cost $339,522,234)
  $ 366,031,526  
         
         
Other Assets, Less Liabilities — (14.4)%
  $ (46,034,362 )
         
         
Net Assets — 100.0%
  $ 319,997,164  
         
 
             
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.
         
BHAC
  -   Berkshire Hathaway Assurance Corp.
         
NPFG
  -   National Public Finance Guaranty Corp.
         
XLCA
  -   XL Capital Assurance, Inc.
 
At December 31, 2009, the concentration of the Trust’s investments in the various states, determined as a percentage of total investments, is as follows:
             
             
        New York   12.1%
        Texas   11.7%
        California   10.7%
        Others, representing less than 10% individually   65.5%
 
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 December 31, 2009, 7.9% 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 0.1% to 4.5% of total investments.
             
(1)
      Security (or a portion thereof) has been segregated to cover payable for when-issued securities.    
             
(2)
      Security represents the underlying municipal bond of an inverse floater.    
             
(3)
      Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.    
             
(4)
      When-issued security.    
 
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A summary of financial instruments outstanding at December 31, 2009 is as follows:
 
Futures Contracts
 
                                 
Expiration
 		          Aggregate
 		          Net Unrealized
 		 
Date   Contracts   Position   Cost     Value     Appreciation  
3/10
  150 U.S. Treasury Bond   Short   $ (18,031,116 )   $ (17,306,250 )   $ 724,866  
                                 
 
At December 31, 2009, 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. The Trust may purchase and sell U.S. Treasury futures contracts to hedge against changes in interest rates.
 
At December 31, 2009, the aggregate fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in an asset position and whose primary underlying risk exposure is interest rate risk was $724,866.
 
The cost and unrealized appreciation (depreciation) of investments of the Trust at December 31, 2009, as determined on a federal income tax basis, were as follows:
 
         
Aggregate cost
  $ 291,792,349  
         
Gross unrealized appreciation
  $ 27,079,737  
Gross unrealized depreciation
    (270,560 )
         
Net unrealized appreciation
  $ 26,809,177  
         
 
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.
 
At December 31, 2009, 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
  $ —     $ 366,031,526     $ —     $ 366,031,526  
 
 
Total Investments
  $ —     $ 366,031,526     $ —     $ 366,031,526  
 
 
Futures Contracts
  $ 724,866     $ —     $ —     $ 724,866  
 
 
Total
  $ 724,866     $ 366,031,526     $ —     $ 366,756,392  
 
 
 
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.
 
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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.

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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 National Municipal Opportunities Trust
 
         
By:
  /s/ Cynthia J. Clemson    
         
    Cynthia J. Clemson    
    President    
         
Date:
  February 22, 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:
  February 22, 2010    
         
By:
  /s/ Barbara E. Campbell    
         
    Barbara E. Campbell    
    Treasurer    
         
Date:
  February 22, 2010