N-Q 1 tm_mainnq.htm N-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-9789
 
Waddell & Reed Advisors Tax-Managed Equity Fund, Inc.
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(Exact name of registrant as specified in charter)
 
 
6300 Lamar Avenue, Overland Park, Kansas 66202
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(Address of principal executive offices) (Zip code)
 
 
Kristen A. Richards
6300 Lamar Avenue
Overland Park, Kansas 66202
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(Name and address of agent for service)
 
Registrant's telephone number, including area code: 913-236-2000
 
Date of fiscal year end: June 30
 
Date of reporting period: March 31, 2008
 

ITEM 1. SCHEDULE OF INVESTMENTS.



The Investments of Waddell & Reed Advisors Tax–Managed Equity Fund
            March 31, 2008
           
           
           
COMMON STOCKS  
Shares
   
Value
Aircraft – 2.81%          
Boeing Company (The)
 
21,700
 
$
1,613,829
Raytheon Company
 
21,500
 
 
1,389,115
       
 
3,002,944
           
Beverages – 4.25%          
Coca–Cola Company (The)
 
51,700
 
 
3,146,979
PepsiCo, Inc.
 
19,200
 
 
1,386,240
       
 
4,533,219
Business Equipment and Services – 0.95%          
IntercontinentalExchange, Inc.*
 
7,800
 
 
1,017,900
           
Capital Equipment – 5.24%          
Deere & Company
 
43,600
 
 
3,507,184
Foster Wheeler Ltd.*
 
11,600
 
 
657,604
Illinois Tool Works Inc.
 
29,600
 
 
1,427,608
       
 
5,592,396
Chemicals –– Petroleum and Inorganic – 3.80%          
Monsanto Company
 
36,400
 
 
4,058,600
           
Communications Equipment – 6.67%          
Cisco Systems, Inc.*
 
98,900
 
 
2,383,985
Marvell Technology Group Ltd.*
 
65,100
 
 
707,637
Nokia Corporation, Series A, ADR
 
68,300
 
 
2,173,989
QUALCOMM Incorporated
 
45,200
 
 
1,852,522
       
 
7,118,133
Computers –– Micro – 2.24%          
Apple Inc.*
 
16,700
 
 
2,396,784
           
Computers –– Peripherals – 4.06%          
Electronic Arts Inc.*
 
49,500
 
 
2,470,050
Microsoft Corporation
 
65,700
 
 
1,859,967
       
 
4,330,017
Consumer Electronics – 2.49%          
Research In Motion Limited*
 
23,700
 
 
2,660,325
           
Defense – 1.98%          
General Dynamics Corporation
 
25,400
 
 
2,117,598
           
Electrical Equipment – 1.04%          
Emerson Electric Co.
 
21,600
 
 
1,111,536
           
Electronic Instruments – 0.88%          
Thermo Fisher Scientific Inc.*
 
16,500
 
 
937,860
           
Health Care –– Drugs – 9.46%          
Abbott Laboratories
 
54,600
 
 
3,011,190
Genentech, Inc.*
 
43,800
 
 
3,555,684
Gilead Sciences, Inc.*
 
68,700
 
 
3,539,081
       
 
10,105,955
Health Care –– General – 6.08%          
Baxter International Inc.
 
17,700
 
 
1,023,414
DENTSPLY International Inc.
 
40,600
 
 
1,568,175
Hologic, Inc.*
 
25,000
 
 
1,389,750
Zimmer Holdings, Inc.*
 
32,300
 
 
2,514,878
       
 
6,496,217
Hospital Supply and Management – 1.17%          
Stryker Corporation
 
19,200
 
 
1,248,960
           
Hotels and Gaming – 3.54%          
International Game Technology
 
66,900
 
 
2,690,049
Las Vegas Sands, Inc.*
 
14,800
 
 
1,089,872
       
 
3,779,921
Household –– General Products – 3.44%          
Colgate–Palmolive Company
 
26,400
 
 
2,056,824
Procter & Gamble Company (The)
 
23,100
 
 
1,618,617
       
 
3,675,441
Insurance –– Life – 2.43%          
Aflac Incorporated
 
39,900
 
 
2,591,505
           
Insurance –– Property and Casualty – 0.05%          
Ambac Financial Group, Inc.
 
8,900
 
 
51,175
           
Non–Residential Construction – 0.77%          
Fluor Corporation
 
5,800
 
 
818,728
           
Petroleum –– Services – 7.07%          
Schlumberger Limited
 
25,100
 
 
2,183,700
Smith International, Inc.
 
27,900
 
 
1,792,017
Transocean Inc.
 
18,002
 
 
2,433,870
Weatherford International Ltd.*
 
15,800
 
 
1,145,026
       
 
7,554,613
Restaurants – 1.55%          
YUM! Brands, Inc.
 
44,600
 
 
1,659,566
           
Retail –– General Merchandise – 1.89%          
Kohl's Corporation*
 
18,000
 
 
772,020
Target Corporation
 
24,500
 
 
1,241,660
       
 
2,013,680
Security and Commodity Brokers – 1.22%          
Goldman Sachs Group, Inc. (The)
 
7,900
 
 
1,306,581
           
Timesharing and Software – 2.60%          
Amazon.com, Inc.*
 
5,800
 
 
413,569
Google Inc., Class A*
 
2,900
 
 
1,278,943
Visa Inc., Class A*
 
17,400
 
 
1,085,064
       
 
2,777,576
Trucking and Shipping – 1.07%          
Expeditors International of Washington, Inc.
 
25,400
 
 
1,145,667
           
Utilities –– Telephone – 3.18%          
China Mobile (Hong Kong) Limited, ADR
 
29,800
 
 
2,235,298
Crown Castle International Corp.*
 
33,600
 
 
1,158,864
       
 
3,394,162
TOTAL COMMON STOCKS – 81.93%      
$
87,497,059
(Cost: $68,504,001)
         
           
   
Principal Amount in
     
SHORT–TERM SECURITIES  
Thousands
     
Beverages – 1.43%          
PepsiCo, Inc.,
 
 
 
 
 
      2.16%, 4–30–08
 
$1,536
 
 
1,533,327
           
Capital Equipment – 4.68%          
Deere (John) Capital Corporation,
 
 
 
 
 
      2.28%, 4–3–08
 
2,000
 
 
1,999,747
Illinois Tool Works Inc.,
 
 
 
 
 
      2.2%, 4–18–08
 
3,000
 
 
2,996,883
       
 
4,996,630
Electrical Equipment – 7.28%          
W.W. Grainger, Inc.,
 
 
 
 
 
      2.65%, 4–1–08
 
7,774
 
 
7,774,000
           
Household – General Products – 4.68%          
Clorox Co.,
 
 
 
 
 
      3.37%, 4–1–08
 
5,000
 
 
5,000,000
           
TOTAL SHORT–TERM SECURITIES – 18.07%  
$
19,303,957
(Cost: $19,303,957)
         
           
TOTAL INVESTMENT SECURITIES – 100.00%  
$
106,801,016
(Cost: $87,807,958)
         
           

Notes to Schedule of Investments
 
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR – American Depositary Receipts; CMO – Collateralized Mortgage Obligation; GDR – Global Depositary Receipts; and REMIC – Real Estate Mortgage Investment Conduit.
*No dividends were paid during the preceding 12 months.




ITEM 2. CONTROLS AND PROCEDURES.
   
(a)
The Registrant's Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, have concluded that such controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective and adequately designed to ensure that information required to be disclosed by the Registrant in its reports that it files or submits is accumulated and communicated to the Registrant's management, including the Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.
   
(b)
There were no significant changes in the registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's 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 Investment Company Act of 1940 (17 CFR 270.30a-2(a)).
   
Attached hereto as Exhibit 99.CERT.
   

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.

Waddell & Reed Advisors Tax-Managed Equity Fund, Inc.
(Registrant)
   
   
By
/s/Kristen A. Richards
 
Kristen A. Richards, Vice President and Assistant Secretary
   
Date: May 29, 2008
   

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/Henry J. Herrmann
 
Henry J. Herrmann, Principal Executive Officer
   
Date: May 29, 2008
   
   
By
/s/Joseph W. Kauten
 
Joseph W. Kauten, Principal Financial Officer
   
Date: May 29, 2008