N-Q 1 d149670dnq.htm EATON VANCE TAX-MANAGED GLOBAL DIVERSIFIED EQUITY INCOME FUND Eaton Vance 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

January 31, 2016

Date of Reporting Period

 

 

 


Item 1. Schedule of Investments


Eaton Vance

Tax-Managed Global Diversified Equity Income Fund

January 31, 2016

PORTFOLIO OF INVESTMENTS (Unaudited)

Common Stocks — 98.3%

 

                                                 
Security    Shares      Value  

Aerospace & Defense — 2.3%

     

United Technologies Corp.

     710,138       $ 62,272,001   
     

 

 

 
      $ 62,272,001   
     

 

 

 

Air Freight & Logistics — 1.1%

     

C.H. Robinson Worldwide, Inc.

     460,833       $ 29,848,153   
     

 

 

 
      $ 29,848,153   
     

 

 

 

Automobiles — 0.5%

     

Toyota Motor Corp.

     245,338       $ 14,776,600   
     

 

 

 
      $ 14,776,600   
     

 

 

 

Banks — 7.9%

     

JPMorgan Chase & Co.

     905,708       $ 53,889,626   

Lloyds Banking Group PLC

     23,692,936         22,196,893   

Mitsubishi UFJ Financial Group, Inc.

     8,041,927         41,238,155   

Natixis SA

     6,519,449         31,896,947   

Wells Fargo & Co.

     1,345,953         67,607,219   
     

 

 

 
      $ 216,828,840   
     

 

 

 

Beverages — 4.5%

     

Anheuser-Busch InBev SA/NV

     327,411       $ 41,177,347   

Constellation Brands, Inc., Class A

     199,044         30,350,229   

Diageo PLC

     1,924,464         51,809,468   
     

 

 

 
      $ 123,337,044   
     

 

 

 

Biotechnology — 2.8%

     

Celgene Corp.(1)

     410,535       $ 41,184,871   

Gilead Sciences, Inc.

     428,370         35,554,710   
     

 

 

 
      $ 76,739,581   
     

 

 

 

Capital Markets — 2.4%

     

Azimut Holding SpA

     623,541       $ 13,129,620   

Credit Suisse Group AG

     1,312,564         23,252,553   

Credit Suisse Group AG(2)

     1,604,466         28,423,703   
     

 

 

 
      $ 64,805,876   
     

 

 

 

Chemicals — 1.1%

     

Syngenta AG

     80,341       $ 29,582,764   
     

 

 

 
      $ 29,582,764   
     

 

 

 

Commercial Services & Supplies — 1.5%

     

Brambles, Ltd.

     5,286,541       $ 42,230,873   
     

 

 

 
      $ 42,230,873   
     

 

 

 

Consumer Finance — 3.5%

     

Discover Financial Services

     841,300       $ 38,523,127   

Synchrony Financial(1)

     2,004,903         56,979,343   
     

 

 

 
      $ 95,502,470   
     

 

 

 

Diversified Financial Services — 0.5%

     

Banca Mediolanum SpA

     2,001,063       $ 13,353,354   
     

 

 

 
      $ 13,353,354   
     

 

 

 

Diversified Telecommunication Services — 1.7%

     

Nippon Telegraph & Telephone Corp.

     1,087,701       $ 46,306,261   
     

 

 

 
      $ 46,306,261   
     

 

 

 

 

1

 

 


                                                 
Security    Shares      Value  

Electric Utilities — 1.7%

     

NextEra Energy, Inc.

     422,098       $ 47,152,568   
     

 

 

 
      $ 47,152,568   
     

 

 

 

Electrical Equipment — 1.1%

     

Nidec Corp.

     435,357       $ 29,703,882   
     

 

 

 
      $ 29,703,882   
     

 

 

 

Electronic Equipment, Instruments & Components — 0.5%

     

Yaskawa Electric Corp.

     1,295,900       $ 14,380,830   
     

 

 

 
      $ 14,380,830   
     

 

 

 

Energy Equipment & Services — 1.2%

     

Schlumberger, Ltd.

     470,949       $ 34,035,484   
     

 

 

 
      $ 34,035,484   
     

 

 

 

Food Products — 2.1%

     

Kerry Group PLC, Class A

     277,534       $ 22,630,884   

Mondelez International, Inc., Class A

     834,846         35,981,863   
     

 

 

 
      $ 58,612,747   
     

 

 

 

Health Care Equipment & Supplies — 1.4%

     

Medtronic PLC

     513,432       $ 38,979,758   
     

 

 

 
      $ 38,979,758   
     

 

 

 

Health Care Providers & Services — 0.9%

     

McKesson Corp.

     155,915       $ 25,099,197   
     

 

 

 
      $ 25,099,197   
     

 

 

 

Hotels, Restaurants & Leisure — 1.2%

     

Accor SA

     902,317       $ 34,268,433   
     

 

 

 
      $ 34,268,433   
     

 

 

 

Household Durables — 1.0%

     

Newell Rubbermaid, Inc.

     717,798       $ 27,836,206   
     

 

 

 
      $ 27,836,206   
     

 

 

 

Household Products — 1.2%

     

Reckitt Benckiser Group PLC

     374,781       $ 33,333,408   
     

 

 

 
      $ 33,333,408   
     

 

 

 

Industrial Conglomerates — 2.4%

     

General Electric Co.

     2,311,082       $ 67,252,486   
     

 

 

 
      $ 67,252,486   
     

 

 

 

Insurance — 4.5%

     

Chubb, Ltd.

     376,881       $ 42,613,935   

Prudential PLC

     2,218,812         43,591,168   

St. James’s Place PLC

     2,684,325         36,751,948   
     

 

 

 
      $ 122,957,051   
     

 

 

 

Internet Software & Services — 6.7%

     

Alibaba Group Holding, Ltd. ADR(1)

     307,012       $ 20,579,014   

Alphabet, Inc., Class C(1)

     154,574         114,840,753   

Facebook, Inc., Class A(1)

     433,093         48,597,366   
     

 

 

 
      $ 184,017,133   
     

 

 

 

IT Services — 2.7%

     

Visa, Inc., Class A

     734,536       $ 54,715,587   

Worldpay Group PLC(1)(3)

     4,619,423         20,700,492   
     

 

 

 
      $ 75,416,079   
     

 

 

 

 

2

 

 


                                                 
Security    Shares      Value  

Machinery — 0.6%

     

FANUC Corp.

     88,673       $ 11,872,393   

Melrose Industries PLC

     1,000,127         4,263,936   
     

 

 

 
      $ 16,136,329   
     

 

 

 

Media — 1.9%

     

Live Nation Entertainment, Inc.(1)

     642,543       $ 14,585,726   

Walt Disney Co. (The)

     396,755         38,017,064   
     

 

 

 
      $ 52,602,790   
     

 

 

 

Multi-Utilities — 2.1%

     

National Grid PLC

     1,832,426       $ 25,816,495   

Sempra Energy

     345,828         32,767,203   
     

 

 

 
      $ 58,583,698   
     

 

 

 

Multiline Retail — 1.2%

     

Dollar General Corp.

     455,024       $ 34,154,101   
     

 

 

 
      $ 34,154,101   
     

 

 

 

Oil, Gas & Consumable Fuels — 5.8%

     

Devon Energy Corp.

     716,583       $ 19,992,666   

Exxon Mobil Corp.

     277,420         21,597,147   

Occidental Petroleum Corp.

     636,473         43,808,436   

Range Resources Corp.

     488,010         14,425,576   

Royal Dutch Shell PLC, Class B

     2,787,519         60,734,267   
     

 

 

 
      $ 160,558,092   
     

 

 

 

Personal Products — 1.7%

     

Estee Lauder Cos., Inc. (The), Class A

     545,426       $ 46,497,567   
     

 

 

 
      $ 46,497,567   
     

 

 

 

Pharmaceuticals — 8.4%

     

Bayer AG

     374,625       $ 42,162,627   

Novo Nordisk A/S, Class B

     572,542         31,987,009   

Perrigo Co. PLC

     297,465         43,007,490   

Roche Holding AG PC

     175,928         45,569,602   

Shire PLC

     514,839         28,878,361   

Teva Pharmaceutical Industries, Ltd. ADR

     669,230         41,144,260   
     

 

 

 
      $ 232,749,349   
     

 

 

 

Professional Services — 1.5%

     

Verisk Analytics, Inc.(1)

     559,401       $ 40,836,273   
     

 

 

 
      $ 40,836,273   
     

 

 

 

Real Estate Investment Trusts (REITs) — 1.3%

     

Equity Residential

     475,995       $ 36,694,455   
     

 

 

 
      $ 36,694,455   
     

 

 

 

Road & Rail — 1.0%

     

Union Pacific Corp.

     390,728       $ 28,132,416   
     

 

 

 
      $ 28,132,416   
     

 

 

 

Semiconductors & Semiconductor Equipment — 2.1%

     

ASML Holding NV

     333,361       $ 30,596,590   

Infineon Technologies AG

     2,022,057         27,058,038   
     

 

 

 
      $ 57,654,628   
     

 

 

 

Specialty Retail — 4.0%

     

Dixons Carphone PLC

     3,666,865       $ 24,868,346   

Industria de Diseno Textil SA

     1,090,286         35,880,462   

Lowe’s Cos., Inc.

     692,220         49,604,485   
     

 

 

 
      $ 110,353,293   
     

 

 

 

Technology Hardware, Storage & Peripherals — 0.9%

     

Apple, Inc.

     246,595       $ 24,003,557   
     

 

 

 
      $ 24,003,557   
     

 

 

 

 

3

 

 


                                                 
Security    Shares    Value
                                                 

Textiles, Apparel & Luxury Goods — 3.4%

     

LVMH Moet Hennessy Louis Vuitton SE

     236,118       $ 37,978,744   

NIKE, Inc., Class B

     469,708         29,126,593   

Pandora A/S

     188,998         25,285,191   
     

 

 

 
      $ 92,390,528   
     

 

 

 

Tobacco — 2.7%

     

Imperial Tobacco Group PLC

     565,327       $ 30,609,962   

Reynolds American, Inc.

     879,042         43,908,148   
     

 

 

 
      $ 74,518,110   
     

 

 

 

Wireless Telecommunication Services — 1.3%

     

Vodafone Group PLC

     11,223,248       $ 36,075,436   
     

 

 

 
      $ 36,075,436   
     

 

 

 

Total Common Stocks
(identified cost $2,809,180,932)

      $ 2,710,569,701   
     

 

 

 

Short-Term Investments — 0.3%

     
Description   

Interest

(000’s omitted)

     Value  

Eaton Vance Cash Reserves Fund, LLC, 0.40%(4)

   $ 9,441       $ 9,440,667   
     

 

 

 

Total Short-Term Investments
(identified cost $9,440,667)

      $ 9,440,667   
     

 

 

 

Total Investments — 98.6%
(identified cost $2,818,621,599)

      $ 2,720,010,368   
     

 

 

 

Call Options Written — (0.6)%

Exchange-Traded Options — (0.4)%

 

                                                                                                   
Description   

Number of

Contracts

    

Strike

Price

    

Expiration

Date

     Value  

S&P 500 Index

     1,165       $ 1,980         2/5/16       $ (358,237

S&P 500 Index

     870         1,930         2/12/16         (2,644,800

S&P 500 Index

     865         1,930         2/19/16         (2,953,975

S&P 500 Index

     1,020         1,935         2/26/16         (3,712,800
           

 

 

 
            $ (9,669,812
           

 

 

 

Over-the-Counter Options — (0.2)%

  

Description    Counterparty    Number of
Contracts
    

Strike

Price

     Expiration
Date
     Value  
Dow Jones Euro Stoxx 50 Index    Credit Suisse International      18,550       EUR      3,225         2/5/16       $ (9,227
Dow Jones Euro Stoxx 50 Index    Credit Suisse International      26,300       EUR      3,075         2/26/16         (1,735,018
Dow Jones Euro Stoxx 50 Index    Morgan Stanley & Co. International PLC      14,700       EUR      3,075         2/19/16         (798,529
Dow Jones Euro Stoxx 50 Index    Société Générale      29,450       EUR      3,100         2/12/16         (893,446
FTSE 100 Index    Citibank, N.A.      6,800       GBP      6,050         2/19/16         (986,754
FTSE 100 Index    Société Générale      6,750       GBP      6,100         2/19/16         (739,097
Nikkei 225 Index    Barclays Bank PLC      205,000       JPY      18,250         2/26/16         (405,696
Nikkei 225 Index    Deutsche Bank AG      120,000       JPY      18,250         2/5/16         (66,087
Nikkei 225 Index    Deutsche Bank AG      160,000       JPY      17,750         2/12/16         (391,248
Nikkei 225 Index    Morgan Stanley & Co. International PLC      205,000       JPY      18,000         2/19/16         (456,592
                 

 

 

 
                  $ (6,481,694
                 

 

 

 

 

4

 

 


Description                            Value  

Total Call Options Written
(premiums received $16,015,683)

         $ (16,151,506
                 

 

 

 

Other Assets, Less Liabilities — 2.0%

         $ 54,602,871   
                 

 

 

 

Net Assets — 100.0%

         $ 2,758,461,733   
                 

 

 

 

The percentage shown for each investment category in the Portfolio of Investments is based on net assets.

 

(1) Non-income producing security.

 

(2) Security was acquired in a private offering and may be resold on a designated offshore securities market pursuant to Regulation S under the Securities Act of 1933.

 

(3) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be sold in certain transactions in reliance on an exemption from registration (normally to qualified institutional buyers). At January 31, 2016, the aggregate value of these securities is $20,700,492 or 0.8% of the Fund’s net assets.

 

(4) 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, 2016. Net income allocated from the investment in Eaton Vance Cash Reserves Fund, LLC for the fiscal year to date ended January 31, 2016 was $41,762.

Country Concentration of Portfolio

 

                                                 
Country   

Percentage of

Total Investments

    Value  

United States

     56.0   $     1,523,914,052   

United Kingdom

     12.1        330,017,552   

Japan

     5.8        158,278,121   

Switzerland

     4.7        126,828,622   

France

     3.8        104,144,124   

Netherlands

     3.4        91,330,857   

Germany

     2.5        69,220,665   

Denmark

     2.1        57,272,200   

Ireland

     1.9        51,509,245   

Australia

     1.6        42,230,873   

Belgium

     1.5        41,177,347   

Israel

     1.5        41,144,260   

Spain

     1.3        35,880,462   

Italy

     1.0        26,482,974   

China

     0.8        20,579,014   
  

 

 

   

 

 

 

Total Investments

     100.0   $ 2,720,010,368   
  

 

 

   

 

 

 

Abbreviations:

ADR

  -   American Depositary Receipt

PC

  -   Participation Certificate
Currency Abbreviations:

EUR

  -   Euro

GBP

  -   British Pound Sterling

JPY

  -   Japanese Yen

Written options activity for the fiscal year to date ended January 31, 2016 was as follows:

 

     Number of
Contracts
     Premiums
Received
 

Outstanding, beginning of period

     596,285       $ 13,879,535   

Options written

     2,804,245         46,639,849   

Options terminated in closing purchase transactions

     (805,335      (14,278,906

Options expired

     (1,798,725      (30,224,795
  

 

 

    

 

 

 

Outstanding, end of period

     796,470       $   16,015,683   
  

 

 

    

 

 

 

 

5

 

 


All of the securities of the Fund, unless otherwise pledged, are subject to segregation to satisfy the requirements of the escrow agent with respect to exchange-traded options. At January 31, 2016, the Fund had sufficient cash and/or securities to cover commitments under open derivative 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 January 31, 2016, the aggregate fair value of open 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 $16,151,506.

The cost and unrealized appreciation (depreciation) of investments of the Fund at January 31, 2016, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

   $     2,820,705,331   
  

 

 

 

Gross unrealized appreciation

   $ 156,996,978   

Gross unrealized depreciation

     (257,691,941
  

 

 

 

Net unrealized depreciation

   $ (100,694,963
  

 

 

 

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 January 31, 2016, the hierarchy of inputs used in valuing the Fund’s investments and open derivative instruments, which are carried at value, were as follows:

 

Asset Description    Level 1      Level 2      Level 3      Total  
Common Stocks            

Consumer Discretionary

   $ 193,324,175       $ 173,057,776       $       $ 366,381,951   

Consumer Staples

     156,737,807         179,561,069                 336,298,876   

Energy

     133,859,309         60,734,267                 194,593,576   

Financials

     309,661,059         240,480,987                 550,142,046   

Health Care

     224,970,286         148,597,599                 373,567,885   

Industrials

     228,341,329         88,071,084                 316,412,413   

Information Technology

     262,736,277         92,735,950                 355,472,227   

Materials

             29,582,764                 29,582,764   

Telecommunication Services

             82,381,697                 82,381,697   

Utilities

     79,919,771         25,816,495                 105,736,266   

Total Common Stocks

   $ 1,589,550,013       $ 1,121,019,688    $       $ 2,710,569,701   

Short-Term Investments

   $       $ 9,440,667       $       $ 9,440,667   

Total Investments

   $     1,589,550,013       $     1,130,460,355       $       $     2,720,010,368   
Liability Description                                

Call Options Written

   $ (9,669,812    $ (6,481,694    $       $ (16,151,506

Total

   $ (9,669,812    $ (6,481,694    $       $ (16,151,506

 

* 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.

 

6

 

 


The Fund held no investments or other financial instruments as of October 31, 2015 whose fair value was determined using Level 3 inputs. At January 31, 2016, the value of investments transferred between Level 1 and Level 2 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/ Michael A. Allison
  Michael A. Allison
  President
Date:   March 28, 2016

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/ Michael A. Allison
  Michael A. Allison
  President
Date:   March 28, 2016
By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   March 28, 2016