N-Q 1 a08-6731_1nq.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 COMPANIES

 

Investment Company Act File Number

 

811-21832

 

 

 

 

 

 

Eaton Vance Tax-Managed Diversified Equity Income Fund

(Exact Name of Registrant as Specified in Charter)

 

 

 

The Eaton Vance Building,
255 State Street, Boston, Massachusetts

 

02109

(Address of Principal Executive Offices)

 

(Zip code)

 

 

 

Maureen A. Gemma
Eaton Vance Management, 255 State Street, Boston, Massachusetts 02109

(Name and Address of Agent for Service)

 

Registrant’s Telephone Number, Including Area Code:

 

(617) 482-8260

 

 

 

Date of Fiscal Year End:

 

October 31

 

 

 

Date of Reporting Period:

 

January 31, 2008

 

 


 

Item 1. Schedule of Investments

 


 

Eaton Vance Tax-Managed Diversified Equity Income Fund

 

as of January 31, 2008

 

PORTFOLIO OF INVESTMENTS (Unaudited)

 

Common Stocks — 94.2%

 

Security

 

Shares

 

Value

 

Aerospace & Defense — 5.0%

 

 

 

 

 

Boeing Co. (The)

 

171,399

 

$

14,256,969

 

General Dynamics Corp.

 

358,347

 

30,265,988

 

Lockheed Martin Corp.

 

268,883

 

29,017,853

 

Raytheon Co.

 

338,352

 

22,040,249

 

United Technologies Corp.

 

528,838

 

38,821,998

 

 

 

 

 

$

134,403,057

 

Beverages — 2.0%

 

 

 

 

 

Coca-Cola Co. (The)

 

317,652

 

$

18,795,469

 

PepsiCo, Inc.

 

510,203

 

34,790,743

 

 

 

 

 

$

53,586,212

 

Biotechnology — 2.9%

 

 

 

 

 

Biogen Idec, Inc. (1)

 

163,459

 

$

9,962,826

 

Genzyme Corp. (1)

 

474,976

 

37,109,875

 

Gilead Sciences, Inc. (1)

 

680,154

 

31,076,236

 

 

 

 

 

$

78,148,937

 

Capital Markets — 1.4%

 

 

 

 

 

Bank of New York Mellon Corp. (The)

 

188,512

 

$

8,790,315

 

Goldman Sachs Group, Inc.

 

135,503

 

27,204,937

 

 

 

 

 

$

35,995,252

 

Chemicals — 2.1%

 

 

 

 

 

E.I. Du Pont de Nemours & Co.

 

523,676

 

$

23,659,682

 

Ecolab, Inc.

 

347,095

 

16,747,334

 

Monsanto Co.

 

145,729

 

16,385,769

 

 

 

 

 

$

 56,792,785

 

Commercial Services & Supplies — 0.5%

 

 

 

 

 

Pitney Bowes, Inc.

 

367,754

 

$

13,496,572

 

 

 

 

 

$

13,496,572

 

Communications Equipment — 3.5%

 

 

 

 

 

Cisco Systems, Inc. (1)

 

1,874,665

 

$

45,929,293

 

Corning, Inc.

 

526,203

 

12,665,706

 

QUALCOMM, Inc.

 

420,733

 

17,847,494

 

Research In Motion, Ltd. (1)

 

187,674

 

17,618,835

 

 

 

 

 

$

94,061,328

 

Computer Peripherals — 4.0%

 

 

 

 

 

Apple, Inc. (1)

 

234,400

 

$

31,728,384

 

EMC Corp. (1)

 

877,837

 

13,931,273

 

Hewlett-Packard Co.

 

702,274

 

30,724,488

 

International Business Machines Corp.

 

282,423

 

30,315,285

 

 

 

 

 

$

106,699,430

 

Diversified Consumer Services — 0.7%

 

 

 

 

 

Apollo Group, Inc., Class A (1)

 

237,547

 

$

18,941,998

 

 

 

 

 

$

18,941,998

 

Diversified Financial Services — 2.6%

 

 

 

 

 

Bank of America Corp.

 

539,278

 

$

23,916,979

 

JPMorgan Chase & Co.

 

929,131

 

44,180,179

 

 

 

 

 

$

68,097,158

 

Diversified Telecommunication Services — 3.3%

 

 

 

 

 

AT&T, Inc.

 

1,228,037

 

$

47,267,144

 

Qwest Communications International, Inc.

 

2,334,053

 

13,724,232

 

Verizon Communications, Inc.

 

684,345

 

26,579,960

 

 

 

 

 

$

87,571,336

 

 

1


 

Electric Utilities — 4.4%

 

 

 

 

 

Duke Energy Corp.

 

1,339,941

 

$

25,003,299

 

E.ON AG

 

186,091

 

34,129,326

 

Edison International

 

479,015

 

24,985,422

 

Scottish and Southern Energy PLC

 

1,080,592

 

32,917,839

 

 

 

 

 

$

117,035,886

 

Electrical Equipment — 1.2%

 

 

 

 

 

Emerson Electric Co.

 

603,236

 

$

30,668,518

 

 

 

 

 

$

30,668,518

 

Energy Equipment & Services — 3.6%

 

 

 

 

 

Diamond Offshore Drilling, Inc.

 

202,921

 

$

22,915,869

 

Schlumberger, Ltd.

 

542,691

 

40,951,463

 

Transocean, Inc. (1)

 

265,825

 

32,590,145

 

 

 

 

 

$

96,457,477

 

Food & Staples Retailing — 3.7%

 

 

 

 

 

CVS Caremark Corp.

 

473,386

 

$

18,495,191

 

Kroger Co. (The)

 

700,287

 

17,822,304

 

Safeway, Inc.

 

542,284

 

16,805,381

 

Sysco Corp.

 

354,918

 

10,310,368

 

Wal-Mart Stores, Inc.

 

682,341

 

34,717,510

 

 

 

 

 

$

98,150,754

 

Food Products — 1.0%

 

 

 

 

 

Nestle SA

 

58,239

 

$

25,981,961

 

 

 

 

 

$

25,981,961

 

Health Care Equipment & Supplies — 2.2%

 

 

 

 

 

Baxter International, Inc.

 

154,501

 

$

9,384,391

 

Covidien, Ltd.

 

556,742

 

24,847,395

 

Medtronic, Inc.

 

292,810

 

13,636,162

 

Zimmer Holdings, Inc. (1)

 

144,307

 

11,294,909

 

 

 

 

 

$

59,162,857

 

Health Care Providers & Services — 0.8%

 

 

 

 

 

Aetna, Inc.

 

191,572

 

$

10,203,125

 

UnitedHealth Group, Inc.

 

244,324

 

12,421,432

 

 

 

 

 

$

22,624,557

 

Hotels, Restaurants & Leisure — 2.8%

 

 

 

 

 

Compass Group PLC

 

4,528,643

 

$

28,709,420

 

International Game Technology

 

267,541

 

11,415,974

 

Marriott International, Inc., Class A

 

390,311

 

14,035,584

 

McDonald’s Corp.

 

364,633

 

19,526,097

 

 

 

 

 

$

73,687,075

 

Household Products — 1.2%

 

 

 

 

 

Colgate-Palmolive Co.

 

178,901

 

$

13,775,377

 

Kimberly-Clark Corp.

 

172,725

 

11,339,396

 

Procter & Gamble Co.

 

86,185

 

5,683,901

 

 

 

 

 

$

30,798,674

 

Industrial Conglomerates — 2.5%

 

 

 

 

 

General Electric Co.

 

1,842,564

 

$

65,245,191

 

 

 

 

 

$

65,245,191

 

Insurance — 4.9%

 

 

 

 

 

American International Group, Inc.

 

735,490

 

$

40,569,628

 

Berkshire Hathaway, Inc., Class A (1)

 

457

 

62,152,000

 

Travelers Cos., Inc. (The)

 

552,830

 

26,591,123

 

 

 

 

 

$

129,312,751

 

Internet Software & Services — 2.0%

 

 

 

 

 

eBay, Inc. (1)

 

303,063

 

$

8,149,364

 

Google, Inc., Class A (1)

 

82,173

 

46,370,224

 

 

 

 

 

$

54,519,588

 

 

2


 

IT Services — 1.4%

 

 

 

 

 

Accenture Ltd., Class A

 

239,339

 

$

8,285,916

 

MasterCard, Inc., Class A

 

96,545

 

19,984,815

 

Paychex, Inc.

 

241,627

 

7,906,035

 

 

 

 

 

$

36,176,766

 

Life Sciences Tools & Services — 0.5%

 

 

 

 

 

Thermo Fisher Scientific, Inc. (1)

 

261,338

 

$

13,456,294

 

 

 

 

 

$

13,456,294

 

Machinery — 1.7%

 

 

 

 

 

Danaher Corp.

 

320,204

 

$

23,839,188

 

Deere & Co.

 

127,147

 

11,158,421

 

Illinois Tool Works, Inc.

 

228,347

 

11,508,689

 

 

 

 

 

$

46,506,298

 

Media — 0.8%

 

 

 

 

 

Reed Elsevier PLC

 

220,410

 

$

2,661,538

 

Walt Disney Co.

 

633,225

 

18,952,424

 

 

 

 

 

$

21,613,962

 

Metals & Mining — 4.0%

 

 

 

 

 

Companhia Vale do Rio Doce ADR

 

666,341

 

$

19,976,903

 

Goldcorp, Inc.

 

818,741

 

30,473,540

 

Southern Copper Corp.

 

214,465

 

20,125,396

 

ThyssenKrupp AG

 

741,114

 

36,084,427

 

 

 

 

 

$

106,660,266

 

Multi-Utilities — 1.1%

 

 

 

 

 

Public Service Enterprise Group, Inc.

 

295,747

 

$

28,391,712

 

 

 

 

 

$

28,391,712

 

Oil, Gas & Consumable Fuels — 9.0%

 

 

 

 

 

Anadarko Petroleum Corp.

 

669,648

 

$

39,234,676

 

ConocoPhillips

 

433,745

 

34,838,398

 

Exxon Mobil Corp.

 

924,827

 

79,905,053

 

Hess Corp.

 

448,964

 

40,779,400

 

Occidental Petroleum Corp.

 

408,404

 

27,718,379

 

Williams Cos., Inc.

 

525,081

 

16,786,840

 

 

 

 

 

$

239,262,746

 

Pharmaceuticals — 7.4%

 

 

 

 

 

Abbott Laboratories

 

1,006,406

 

$

56,660,658

 

Allergan, Inc.

 

171,975

 

11,555,000

 

Eli Lilly & Co.

 

249,368

 

12,847,439

 

Johnson & Johnson

 

572,898

 

36,241,527

 

Merck & Co., Inc.

 

663,126

 

30,689,471

 

Pfizer, Inc.

 

1,665,630

 

38,959,086

 

Wyeth

 

278,773

 

11,095,165

 

 

 

 

 

$

198,048,346

 

Real Estate — 0.7%

 

 

 

 

 

Johnson Controls, Inc.

 

543,683

 

$

19,230,068

 

 

 

 

 

$

19,230,068

 

Semiconductors & Semiconductor Equipment — 1.0%

 

 

 

 

 

Intel Corp.

 

674,421

 

$

14,297,725

 

Texas Instruments, Inc.

 

382,497

 

11,830,632

 

 

 

 

 

$

26,128,357

 

Software — 3.9%

 

 

 

 

 

Microsoft Corp.

 

1,840,100

 

$

59,987,260

 

Oracle Corp. (1)

 

1,129,755

 

23,216,465

 

Sage Group PLC

 

4,630,307

 

20,422,582

 

 

 

 

 

$

103,626,307

 

Specialty Retail — 1.3%

 

 

 

 

 

Best Buy Co., Inc.

 

263,320

 

$

12,852,649

 

Staples, Inc.

 

875,650

 

20,963,061

 

 

 

 

 

$

33,815,710

 

 

3


 

Tobacco — 2.7%

 

 

 

 

 

Altria Group, Inc.

 

573,616

 

$

43,491,565

 

British American Tobacco PLC

 

261,837

 

9,377,100

 

Imperial Tobacco Group PLC

 

409,449

 

20,022,700

 

 

 

 

 

$

72,891,365

 

Wireless Telecommunication Services — 0.4%

 

 

 

 

 

Rogers Communications, Inc., Class B

 

281,679

 

$

10,791,122

 

 

 

 

 

$

10,791,122

 

Total Common Stocks
(identified cost $2,473,283,014)

 

 

 

$

2,508,038,673

 

 

Short-Term Investments — 3.9%

 

 

 

Interest

 

 

 

Description

 

(000’s omitted)

 

Value

 

Investment in Cash Management Portfolio, 4.32% (2)

 

$

102,863

 

$

102,863,306

 

Total Short-Term Investments
(identified cost $102,863,306)

 

 

 

$

102,863,306

 

Total Investments — 98.1%
(identified cost $2,576,146,320)

 

 

 

$

2,610,901,979

 

 

Covered Call Options Written — (0.8)%

 

 

 

Number of

 

Strike

 

Expiration

 

 

 

Description

 

Contracts

 

Price

 

Date

 

Value

 

S&P 500 Index

 

1,558

 

$

1,390

 

2/16/08

 

$

(3,489,920

)

S&P 500 Index

 

2,934

 

1,395

 

2/16/08

 

(6,366,780

)

S&P 500 Index

 

2,751

 

1,410

 

2/16/08

 

(2,971,080

)

S&P 500 Index

 

2,642

 

1,375

 

2/16/08

 

(7,397,600

)

 

Total Covered Call Options Written
(premiums received $36,472,277)

 

 

 

$

(20,225,380

)

Other Assets, Less Liabilities — 2.7%

 

 

 

$

72,114,348

 

Net Assets — 100.0%

 

 

 

$

2,662,790,947

 

 

ADR

—

American Depository Receipt

 

 

 

(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 January 31, 2008. Net income allocated from the Investment in Cash Management Portfolio for the fiscal year to date ended January 31, 2008 was $2,150,608.

 

Country Concentration of Portfolio

 

Country

 

Percentage
Of Net Assets

 

Value

 

United States

 

84.7

%

$

2,256,011,230

 

United Kingdom

 

4.4

 

114,111,179

 

Germany

 

2.6

 

70,213,753

 

Canada

 

2.2

 

58,883,497

 

Bermuda

 

1.2

 

33,133,311

 

Cayman Islands

 

1.2

 

32,590,145

 

Switzerland

 

1.0

 

25,981,961

 

Brazil

 

0.8

 

19,976,903

 

 

 

98.1

%

$

2,610,901,979

 

 

The cost and unrealized appreciation (depreciation) of investments of the Fund at January 31, 2008, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

 

$

2,568,848,913

 

Gross unrealized appreciation

 

$

113,984,944

 

Gross unrealized depreciation

 

(71,931,878

)

Net unrealized appreciation

 

$

42,053,066

 

 

4


 

Written call option activity for the fiscal year to date ended January 31, 2008 was as follows:

 

 

 

Number of
Contracts

 

Premiums Received

 

Outstanding, beginning of period

 

9,430

 

$

29,045,955

 

Options written

 

28,992

 

87,152,885

 

Options terminated in closing purchase transactions

 

(28,537

)

(79,726,563

)

Outstanding, end of period

 

9,885

 

$

36,472,277

 

 

All assets of the Fund are subject to segregation to satisfy the requirements of the escrow agent. At January 31, 2008 the Fund had sufficient cash and/or securities to cover commitments under these contracts.

 

5


 

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 Diversified Equity Income Fund

 

By:

 

/s/ Duncan W. Richardson

 

 

 

Duncan W. Richardson

 

 

 

 

 

President

 

 

 

 

 

Date:

 

March 11, 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/ Duncan W. Richardson

 

 

 

Duncan W. Richardson

 

 

 

President

 

 

 

 

 

Date:

 

March 11, 2008

 

 

 

 

 

 

 

 

 

By:

 

/s/ Barbara E. Campbell

 

 

 

Barbara E. Campbell

 

 

 

Treasurer

 

 

 

 

 

Date:

 

March 11, 2008