N-Q 1 b88102a1nvq.htm TAX-MANAGED GLOBAL DIVERSIFIED EQUITY INCOME FUND Tax-Managed Global Diversified Equity Income Fund
 
 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
811-21973
Investment Company Act File Number
Eaton Vance Tax-Managed Global Diversified Equity Income 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
(Registrant’s Telephone Number, Including Area Code)
October 31
Date of Fiscal Year End
July 31, 2011
Date of Reporting Period
 
 

 


 

Item 1. Schedule of Investments

 


 

Eaton Vance
Tax-Managed Global Diversified Equity Income Fund
July 31, 2011
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
Common Stocks — 98.4%
 
                     
Security       Shares     Value  
Aerospace & Defense — 0.5%
                   
United Technologies Corp. 
        204,141     $ 16,911,040  
                     
                $ 16,911,040  
                     
Automobiles — 2.3%
                   
Bayerische Motoren Werke AG
        340,495     $ 34,039,887  
Ford Motor Co.(1)
        965,125       11,784,176  
Volkswagen AG, PFC Shares
        170,154       33,965,492  
                     
                $ 79,789,555  
                     
Beverages — 2.5%
                   
Anheuser-Busch InBev NV
        588,659     $ 33,879,996  
Coca-Cola Co. (The)
        462,840       31,477,748  
PepsiCo, Inc. 
        319,596       20,466,928  
                     
                $ 85,824,672  
                     
Biotechnology — 0.4%
                   
Celgene Corp.(1)
        217,384     $ 12,890,871  
                     
                $ 12,890,871  
                     
Capital Markets — 1.8%
                   
Deutsche Bank AG
        326,770     $ 17,966,669  
Goldman Sachs Group, Inc. (The)
        109,610       14,794,062  
UBS AG(1)
        1,855,579       30,579,942  
                     
                $ 63,340,673  
                     
Chemicals — 2.6%
                   
Air Liquide SA
        110,466     $ 15,173,939  
BASF SE
        558,480       50,436,983  
Monsanto Co. 
        311,375       22,879,835  
                     
                $ 88,490,757  
                     
Commercial Banks — 8.3%
                   
Banco Bilbao Vizcaya Argentaria SA
        1,526,475     $ 15,989,791  
Banco Santander SA
        2,735,777       28,794,839  
Bank of Nova Scotia (The)
        615,957       34,961,719  
Barclays PLC
        5,432,401       19,711,753  
BNP Paribas
        243,619       15,799,622  
HSBC Holdings PLC
        3,147,683       30,687,776  
Intesa Sanpaolo SpA
        6,626,290       15,285,485  
Itau Unibanco Holding SA ADR
        1,534,867       31,265,241  
KeyCorp
        1,699,956       13,667,646  
PNC Financial Services Group, Inc. 
        198,697       10,787,260  
Royal Bank of Scotland Group PLC(1)
        30,628,460       17,772,005  
Societe Generale
        308,366       15,263,988  
State Bank of India GDR
        137,219       15,203,865  
Wells Fargo & Co. 
        835,403       23,341,160  
                     
                $ 288,532,150  
                     
Communications Equipment — 2.7%
                   
Harris Corp. 
        264,302     $ 10,537,721  
HTC Corp. 
        616,350       18,334,848  
JDS Uniphase Corp.(1)
        400,629       5,268,271  
QUALCOMM, Inc. 
        721,631       39,530,946  
Telefonaktiebolaget LM Ericsson, Class B
        1,594,781       20,031,517  
                     
                $ 93,703,303  
                     
 
1


 

                     
Security       Shares     Value  
Computers & Peripherals — 1.8%
                   
Apple, Inc.(1)
        156,119     $ 60,961,347  
                     
                $ 60,961,347  
                     
Construction & Engineering — 0.6%
                   
Fluor Corp. 
        342,861     $ 21,781,959  
                     
                $ 21,781,959  
                     
Consumer Finance — 0.5%
                   
American Express Co. 
        321,494     $ 16,087,560  
                     
                $ 16,087,560  
                     
Diversified Financial Services — 1.9%
                   
Citigroup, Inc. 
        444,847     $ 17,055,434  
JPMorgan Chase & Co. 
        721,612       29,189,206  
Moody’s Corp. 
        509,748       18,152,126  
                     
                $ 64,396,766  
                     
Diversified Telecommunication Services — 3.2%
                   
AT&T, Inc. 
        707,168     $ 20,691,736  
CenturyLink, Inc. 
        261,989       9,722,412  
Deutsche Telekom AG
        2,332,299       36,355,252  
Koninklijke KPN NV
        2,575,969       36,735,934  
Verizon Communications, Inc. 
        193,295       6,821,380  
                     
                $ 110,326,714  
                     
Electric Utilities — 2.1%
                   
American Electric Power Co., Inc. 
        199,484     $ 7,352,980  
E.ON AG
        249,360       6,875,635  
Enel SpA
        3,129,117       18,021,652  
PPL Corp. 
        267,081       7,451,560  
Scottish and Southern Energy PLC
        1,536,047       32,911,813  
                     
                $ 72,613,640  
                     
Electrical Equipment — 1.4%
                   
ABB, Ltd.(1)
        1,803,498     $ 43,196,835  
Emerson Electric Co. 
        129,667       6,365,353  
                     
                $ 49,562,188  
                     
Electronic Equipment, Instruments & Components — 0.5%
                   
Corning, Inc. 
        1,115,165     $ 17,742,275  
                     
                $ 17,742,275  
                     
Energy Equipment & Services — 1.0%
                   
Halliburton Co. 
        320,550     $ 17,543,701  
Schlumberger, Ltd. 
        194,718       17,596,666  
                     
                $ 35,140,367  
                     
Food & Staples Retailing — 1.6%
                   
Costco Wholesale Corp. 
        154,006     $ 12,050,970  
Metro AG
        384,845       21,243,373  
Tesco PLC
        3,486,295       21,898,764  
                     
                $ 55,193,107  
                     
Food Products — 5.3%
                   
Danone SA
        630,679     $ 44,964,058  
Nestle SA
        1,337,943       85,229,007  
Unilever NV - NY Shares
        1,660,366       53,920,570  
                     
                $ 184,113,635  
                     
 
2


 

                     
Security       Shares     Value  
Health Care Equipment & Supplies — 1.9%
                   
Covidien PLC
        433,863     $ 22,035,902  
St. Jude Medical, Inc. 
        691,175       32,139,637  
Varian Medical Systems, Inc.(1)
        195,507       12,270,019  
                     
                $ 66,445,558  
                     
Health Care Providers & Services — 2.8%
                   
AmerisourceBergen Corp. 
        711,681     $ 27,264,499  
Fresenius Medical Care AG & Co. KGaA ADR
        291,084       22,396,003  
HCA Holdings, Inc.(1)
        309,750       8,264,130  
UnitedHealth Group, Inc. 
        781,120       38,766,986  
                     
                $ 96,691,618  
                     
Hotels, Restaurants & Leisure — 0.7%
                   
McDonald’s Corp. 
        287,631     $ 24,874,329  
                     
                $ 24,874,329  
                     
Household Products — 0.6%
                   
Procter & Gamble Co. 
        332,133     $ 20,422,858  
                     
                $ 20,422,858  
                     
Industrial Conglomerates — 4.3%
                   
Danaher Corp. 
        499,381     $ 24,524,601  
General Electric Co. 
        1,083,017       19,396,834  
Philips Electronics NV
        1,248,669       31,013,800  
Siemens AG
        569,748       72,817,295  
                     
                $ 147,752,530  
                     
Insurance — 3.6%
                   
Aflac, Inc. 
        264,261     $ 12,171,862  
Allianz SE
        251,226       32,738,495  
AXA SA
        1,357,193       25,391,690  
Lincoln National Corp. 
        402,666       10,670,649  
MetLife, Inc. 
        284,691       11,732,116  
Prudential PLC
        2,911,200       32,792,424  
                     
                $ 125,497,236  
                     
Internet & Catalog Retail — 1.5%
                   
Amazon.com, Inc.(1)
        110,839     $ 24,663,895  
Netflix, Inc.(1)
        47,678       12,681,871  
priceline.com, Inc.(1)
        27,491       14,780,536  
                     
                $ 52,126,302  
                     
Internet Software & Services — 0.5%
                   
Google, Inc., Class A(1)
        26,740     $ 16,142,671  
                     
                $ 16,142,671  
                     
IT Services — 1.3%
                   
Accenture PLC, Class A
        225,646     $ 13,344,704  
International Business Machines Corp. 
        178,443       32,449,860  
                     
                $ 45,794,564  
                     
Machinery — 0.9%
                   
Illinois Tool Works, Inc. 
        621,645     $ 30,957,921  
                     
                $ 30,957,921  
                     
Media — 0.9%
                   
Comcast Corp., Class A
        790,352     $ 18,984,255  
Vivendi SA
        546,972       13,080,256  
                     
                $ 32,064,511  
                     
Metals & Mining — 4.1%
                   
Anglo American PLC
        459,970     $ 21,771,647  
BHP Billiton, Ltd. ADR
        503,291       46,076,291  
Cliffs Natural Resources, Inc. 
        166,543       14,958,892  
 
3


 

                     
Security       Shares     Value  
Freeport-McMoRan Copper & Gold, Inc. 
        280,354     $ 14,847,548  
Goldcorp, Inc. 
        932,640       44,589,518  
                     
                $ 142,243,896  
                     
Multi-Utilities — 1.2%
                   
GDF Suez
        197,276     $ 6,451,105  
National Grid PLC
        2,205,626       21,580,732  
PG&E Corp. 
        299,182       12,395,110  
                     
                $ 40,426,947  
                     
Multiline Retail — 0.6%
                   
Macy’s, Inc. 
        729,101     $ 21,049,146  
                     
                $ 21,049,146  
                     
Oil, Gas & Consumable Fuels — 11.9%
                   
Alpha Natural Resources, Inc.(1)
        273,959     $ 11,700,789  
Apache Corp. 
        127,537       15,778,878  
BG Group PLC
        1,337,758       31,539,720  
BP PLC
        6,194,096       46,682,619  
ConocoPhillips
        458,298       32,992,873  
Exxon Mobil Corp. 
        471,322       37,606,782  
Occidental Petroleum Corp. 
        101,212       9,936,994  
Peabody Energy Corp. 
        238,814       13,724,641  
Royal Dutch Shell PLC, Class B
        3,005,897       110,062,865  
Southwestern Energy Co.(1)
        287,701       12,819,957  
Statoil ASA
        1,529,135       37,688,093  
Total SA
        922,596       49,864,778  
                     
                $ 410,398,989  
                     
Personal Products — 0.7%
                   
Estee Lauder Cos., Inc. (The), Class A
        223,589     $ 23,456,722  
                     
                $ 23,456,722  
                     
Pharmaceuticals — 9.5%
                   
AstraZeneca PLC
        592,178     $ 28,773,273  
Bayer AG
        522,211       41,776,981  
GlaxoSmithKline PLC
        2,998,294       66,847,368  
Novartis AG
        1,102,556       67,588,973  
Novo Nordisk A/S, Class B
        348,338       42,608,992  
Pfizer, Inc. 
        1,082,435       20,826,049  
Sanofi-Aventis
        622,932       48,402,129  
Teva Pharmaceutical Industries, Ltd. ADR
        245,230       11,437,527  
                     
                $ 328,261,292  
                     
Real Estate Investment Trusts (REITs) — 0.7%
                   
AvalonBay Communities, Inc. 
        81,961     $ 10,998,346  
Boston Properties, Inc. 
        124,513       13,367,716  
                     
                $ 24,366,062  
                     
Software — 2.1%
                   
Microsoft Corp. 
        561,259     $ 15,378,497  
Oracle Corp. 
        926,476       28,331,636  
SAP AG
        440,936       27,568,258  
                     
                $ 71,278,391  
                     
Specialty Retail — 1.2%
                   
Home Depot, Inc. 
        238,865     $ 8,343,554  
Industria de Diseno Textil SA
        371,387       33,581,750  
                     
                $ 41,925,304  
                     
 
4


 

                     
Security       Shares     Value  
Textiles, Apparel & Luxury Goods — 1.9%
                   
LVMH Moet Hennessy Louis Vuitton SA
        259,879     $ 47,633,977  
NIKE, Inc., Class B
        208,384       18,785,818  
                     
                $ 66,419,795  
                     
Tobacco — 2.0%
                   
British American Tobacco PLC
        997,428     $ 46,042,523  
Philip Morris International, Inc. 
        313,252       22,294,145  
                     
                $ 68,336,668  
                     
Wireless Telecommunication Services — 2.6%
                   
American Tower Corp., Class A(1)
        191,051     $ 10,035,909  
Vodafone Group PLC
        28,899,375       81,044,072  
                     
                $ 91,079,981  
                     
                     
Total Common Stocks
(identified cost $2,937,537,792)
              $ 3,405,415,870  
                     
 
Short-Term Investments — 1.2%
 
                     
        Interest
       
Description       (000’s omitted)     Value  
Eaton Vance Cash Reserves Fund, LLC, 0.10%(2)
      $ 41,373     $ 41,373,398  
                     
                     
Total Short-Term Investments
(identified cost $41,373,398)
              $ 41,373,398  
                     
                     
Total Investments — 99.6%
(identified cost $2,978,911,190)
              $ 3,446,789,268  
                     
 
Call Options Written — (0.3)%
 
                             
    Number of
  Strike
    Expiration
     
Description   Contracts   Price     Date   Value  
Dow Jones Euro Stoxx 50 Index
    46,000     EUR   2,750     8/19/11   $ (2,045,713 )
Dow Jones Euro Stoxx 50 Index
    42,600     EUR   2,775     8/19/11     (1,413,995 )
Dow Jones Euro Stoxx 50 Index
    38,300     EUR   2,825     8/19/11     (619,124 )
FTSE 100 Index
    16,650     GBP   5,925     8/19/11     (1,018,049 )
FTSE 100 Index
    16,300     GBP   6,000     8/19/11     (481,602 )
S&P 500 Index
    745     $ 1,320     8/20/11     (1,050,450 )
S&P 500 Index
    2,170     $ 1,330     8/20/11     (2,245,950 )
S&P 500 Index
    3,880     $ 1,340     8/20/11     (3,007,000 )
SMI Index
    8,650     CHF   6,050     8/19/11     (285,201 )
SMI Index
    6,050     CHF   6,300     8/19/11     (33,054 )
                         
         
Total Call Options Written
(premiums received $24,999,499)
  $ (12,200,138 )
         
         
Other Assets, Less Liabilities — 0.7%
  $ 24,778,226  
         
         
Net Assets — 100.0%
  $ 3,459,367,356  
         
 
 
5


 

             
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
         
ADR
  -   American Depositary Receipt
         
GDR
  -   Global Depositary Receipt
         
PFC Shares
  -   Preference Shares
         
CHF
  -   Swiss Franc
         
EUR
  -   Euro
         
GBP
  -   British Pound Sterling
         
(1)
      Non-income producing security.
         
(2)
      Affiliated investment company available to Eaton Vance portfolios and funds which invests in high quality, U.S. dollar denominated money market instruments. The rate shown is the annualized seven-day yield as of July 31, 2011. Net income allocated from the investment in Eaton Vance Cash Reserves Fund, LLC for the fiscal year to date ended July 31, 2011 was $73,370.
 
Country Concentration of Portfolio
 
                 
    Percentage
       
Country   of Net Assets     Value  
United States
    38.3 %   $ 1,325,067,258  
United Kingdom
    17.6       610,119,354  
Germany
    11.5       398,180,323  
France
    8.2       282,025,542  
Switzerland
    6.6       226,594,757  
Netherlands
    3.5       121,670,304  
Canada
    2.3       79,551,237  
Spain
    2.3       78,366,380  
Australia
    1.3       46,076,291  
Denmark
    1.2       42,608,992  
Norway
    1.1       37,688,093  
Ireland
    1.0       35,380,606  
Belgium
    1.0       33,879,996  
Italy
    1.0       33,307,137  
Brazil
    0.9       31,265,241  
Sweden
    0.6       20,031,517  
Taiwan
    0.5       18,334,848  
India
    0.4       15,203,865  
Israel
    0.3       11,437,527  
                 
Total Investments
    99.6 %   $ 3,446,789,268  
                 
 
The cost and unrealized appreciation (depreciation) of investments of the Fund at July 31, 2011, as determined on a federal income tax basis, were as follows:
 
         
Aggregate cost
  $ 2,979,822,289  
         
Gross unrealized appreciation
  $ 575,125,547  
Gross unrealized depreciation
    (108,158,568 )
         
Net unrealized appreciation
  $ 466,966,979  
         
 
Written call options activity for the fiscal year to date ended July 31, 2011 was as follows:
 
                 
    Number of
    Premiums
 
    Contracts     Received  
Outstanding, beginning of period
    206,590     $ 42,215,096  
Options written
    1,643,295       207,762,067  
Options terminated in closing purchase transactions
    (1,409,020 )     (204,361,562 )
Options expired
    (259,520 )     (20,616,102  
                 
Outstanding, end of period
    181,345     $ 24,999,499  
                 
 
6


 

All of the assets of the Fund are subject to segregation to satisfy the requirements of the escrow agent. At July 31, 2011, the Fund had sufficient cash and/or securities to cover commitments under these contracts.
 
The Fund is subject to equity price risk in the normal course of pursuing its investment objectives. The Fund writes index call options above the current value of the index to generate premium income. In writing index call options, the Fund in effect, sells potential appreciation in the value of the applicable index above the exercise price in exchange for the option premium received. The Fund retains the risk of loss, minus the premium received, should the price of the underlying index decline.
 
At July 31, 2011, 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 equity price risk was $12,200,138.
 
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 July 31, 2011, the hierarchy of inputs used in valuing the Fund’s investments, which are carried at value, were as follows:
 
                                 
Asset Description   Level 1     Level 2     Level 3     Total  
   
Common Stocks
                               
Consumer Discretionary
  $ 155,947,580     $ 162,301,362     $     $ 318,248,942  
Consumer Staples
    130,169,371       307,178,291             437,347,662  
Energy
    169,701,281       275,838,075             445,539,356  
Financials
    342,820,749       239,399,698             582,220,447  
Health Care
    208,291,623       295,997,716             504,289,339  
Industrials
    119,937,708       147,027,930             266,965,638  
Information Technology
    239,687,928       65,934,623             305,622,551  
Materials
    143,352,084       87,382,569             230,734,653  
Telecommunication Services
    47,271,437       154,135,258             201,406,695  
Utilities
    27,199,650       85,840,937             113,040,587  
 
 
Total Common Stocks
  $ 1,584,379,411     $ 1,821,036,459 *   $     $ 3,405,415,870  
 
 
Short-Term Investments
  $     $ 41,373,398     $     $ 41,373,398  
 
 
Total Investments
  $ 1,584,379,411     $ 1,862,409,857     $     $ 3,446,789,268  
 
 
                                 
Liability Description                        
   
Call Options Written
  $ (6,303,400 )   $ (5,896,738 )   $     $ (12,200,138 )
 
 
Total
  $ (6,303,400 )   $ (5,896,738 )   $     $ (12,200,138 )
 
 
 
Includes foreign equity securities whose values were adjusted to reflect market trading of comparable securities or other correlated instruments that occurred after the close of trading in their applicable foreign markets.
 
The Fund held no investments or other financial instruments as of October 31, 2010 whose fair value was determined using Level 3 inputs. At July 31, 2011, the value of investments transferred between Level 1 and Level 2, if any, during the fiscal year to date then ended was not significant.
 
For information on the Fund’s policy regarding the valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements included in its semiannual or annual report to shareholders.
 
7


 

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 Tax-Managed Global Diversified Equity Income Fund
         
By:
  /s/ Walter A. Row, III
 
Walter A. Row, III
   
 
  President    
Date: September 26, 2011
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/ Walter A. Row, III
 
Walter A. Row, III
   
 
  President    
Date: September 26, 2011
         
By:
  /s/ Barbara E. Campbell
 
Barbara E. Campbell
   
 
  Treasurer    
Date: September 26, 2011