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

July 31, 2016

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Tax-Managed Global Diversified Equity Income Fund

July 31, 2016

PORTFOLIO OF INVESTMENTS (Unaudited)

Common Stocks — 99.4%

 

                                                 
Security    Shares      Value  

Aerospace & Defense — 2.9%

      

CAE, Inc.

      2,190,524       $ 29,226,001   

United Technologies Corp.

      476,309         51,274,664   
     

 

 

  
      $ 80,500,665   
     

 

 

  

Banks — 7.3%

      

DBS Group Holdings, Ltd.

      1,341,414       $ 15,507,878   

JPMorgan Chase & Co.

      872,774         55,831,353   

Mitsubishi UFJ Financial Group, Inc.

      7,709,044         38,973,258   

U.S. Bancorp

      590,568         24,904,253   

Wells Fargo & Co.

      1,482,262         71,104,108   
     

 

 

  
      $ 206,320,850   
     

 

 

  

Beverages — 4.5%

      

Anheuser-Busch Inbev SA/NV

      315,245       $ 40,727,176   

Constellation Brands, Inc., Class A

      192,727         31,728,646   

Diageo PLC

      1,848,794         52,980,266   
     

 

 

  
      $ 125,436,088   
     

 

 

  

Biotechnology — 5.0%

      

Celgene Corp.(1)

      408,855       $ 45,869,442   

Gilead Sciences, Inc.

      410,231         32,601,058   

Shire PLC

      966,365         62,429,519   
     

 

 

  
      $ 140,900,019   
     

 

 

  

Capital Markets — 0.8%

      

Credit Suisse Group AG

      811,025       $ 9,326,560   

Credit Suisse Group AG(2)

      1,230,494         14,150,336   
     

 

 

  
      $ 23,476,896   
     

 

 

  

Commercial Services & Supplies — 0.9%

      

Brambles, Ltd.

      2,335,323       $ 23,889,675   
     

 

 

  
      $ 23,889,675   
     

 

 

  

Diversified Telecommunication Services — 2.3%

      

Nippon Telegraph & Telephone Corp.

      1,332,264       $ 63,308,856   
     

 

 

  
      $ 63,308,856   
     

 

 

  

Electric Utilities — 2.8%

      

American Electric Power Co., Inc.

      430,712       $ 29,848,342   

NextEra Energy, Inc.

      375,815         48,213,306   
     

 

 

  
      $ 78,061,648   
     

 

 

  

Electrical Equipment — 1.1%

      

Legrand SA

      555,823       $ 30,668,902   
     

 

 

  
      $ 30,668,902   
     

 

 

  

Electronic Equipment, Instruments & Components — 2.1%

      

Keyence Corp.

      85,350       $ 60,203,615   
     

 

 

  
      $ 60,203,615   
     

 

 

  

Energy Equipment & Services — 0.8%

      

Schlumberger, Ltd.

      293,219       $ 23,609,994   
     

 

 

  
      $ 23,609,994   
     

 

 

  

Food Products — 0.8%

      

Kerry Group PLC, Class A

      275,323       $ 23,557,932   
     

 

 

  
      $ 23,557,932   
     

 

 

  

 

1

 

 

                                                 
Security    Shares      Value  

Health Care Equipment & Supplies — 1.5%

      

Medtronic PLC

      491,451       $ 43,065,851   
     

 

 

  
      $ 43,065,851   
     

 

 

  

Hotels, Restaurants & Leisure — 0.6%

      

Accor SA

      425,730       $ 17,822,837   
     

 

 

  
      $ 17,822,837   
     

 

 

  

Household Durables — 1.9%

      

Newell Brands, Inc.

      1,005,152       $ 52,730,274   
     

 

 

  
      $ 52,730,274   
     

 

 

  

Household Products — 1.3%

      

Reckitt Benckiser Group PLC

      371,686       $ 36,038,701   
     

 

 

  
      $ 36,038,701   
     

 

 

  

Insurance — 5.2%

      

AIA Group, Ltd.

      5,842,302       $ 36,392,807   

Chubb, Ltd.

      407,478         51,040,695   

Prudential PLC

      1,269,548         22,380,176   

St. James’s Place PLC

      3,066,265         37,526,229   
     

 

 

  
      $ 147,339,907   
     

 

 

  

Internet & Direct Marketing Retail — 1.4%

      

Amazon.com, Inc.(1)

      53,200       $ 40,368,692   
     

 

 

  
      $ 40,368,692   
     

 

 

  

Internet Software & Services — 6.8%

      

Alphabet, Inc., Class C(1)

      156,706       $ 120,474,006   

Facebook, Inc., Class A(1)

      557,742         69,126,543   
     

 

 

  
      $ 189,600,549   
     

 

 

  

IT Services — 2.5%

      

Visa, Inc., Class A

      882,410       $ 68,872,100   
     

 

 

  
      $ 68,872,100   
     

 

 

  

Machinery — 3.6%

      

Fortive Corp.(1)

      461,477       $ 22,247,806   

Komatsu, Ltd.

      951,767         18,494,501   

Kubota Corp.

      3,653,440         52,927,893   

Melrose Industries PLC

      958,124         8,677,028   
     

 

 

  
      $ 102,347,228   
     

 

 

  

Media — 2.3%

      

Time Warner, Inc.

      831,651       $ 63,746,049   
     

 

 

  
      $ 63,746,049   
     

 

 

  

Multi-Utilities — 0.7%

      

National Grid PLC

      1,314,584       $ 18,849,587   
     

 

 

  
      $ 18,849,587   
     

 

 

  

Multiline Retail — 0.5%

      

Dollar General Corp.

      135,344       $ 12,822,491   
     

 

 

  
      $ 12,822,491   
     

 

 

  

Oil, Gas & Consumable Fuels — 6.1%

      

Anadarko Petroleum Corp.

      775,035       $ 42,262,658   

Chevron Corp.

      301,478         30,895,465   

Occidental Petroleum Corp.

      446,023         33,331,299   

Royal Dutch Shell PLC, Class B

      2,447,113         65,090,066   
     

 

 

  
      $ 171,579,488   
     

 

 

  

Personal Products — 1.7%

      

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

      525,867       $ 48,853,044   
     

 

 

  
      $ 48,853,044   
     

 

 

  

 

2

 

 

                                                                                                   
Security                    Shares      Value  

Pharmaceuticals — 11.8%

            

Allergan PLC(1)

            247,814       $ 62,684,551   

Bayer AG

            294,189         31,624,683   

Eli Lilly & Co.

            642,683         53,271,994   

Johnson & Johnson

            461,174         57,752,820   

Novo Nordisk A/S, Class B

            830,955         47,253,321   

Roche Holding AG PC

            144,545         36,897,707   

Teva Pharmaceutical Industries, Ltd. ADR

            786,405         42,072,668   
           

 

 

  
            $ 331,557,744   
           

 

 

  

Professional Services — 1.7%

            

Verisk Analytics, Inc.(1)

            556,153       $ 47,428,728   
           

 

 

  
            $ 47,428,728   
           

 

 

  

Real Estate Investment Trusts (REITs) — 2.8%

            

American Tower Corp.

            160,285       $ 18,556,194   

Equity Residential

            877,211         59,641,576   
           

 

 

  
            $ 78,197,770   
           

 

 

  

Road & Rail — 2.2%

            

Union Pacific Corp.

            666,282       $ 61,997,540   
           

 

 

  
            $ 61,997,540   
           

 

 

  

Semiconductors & Semiconductor Equipment — 2.5%

            

ASML Holding NV

            468,437       $ 51,434,673   

Infineon Technologies AG

            1,084,829         17,984,270   
           

 

 

  
            $ 69,418,943   
           

 

 

  

Specialty Retail — 3.5%

            

Industria de Diseno Textil SA

            1,046,227       $ 36,182,442   

Lowe’s Cos., Inc.

            759,892         62,523,914   
           

 

 

  
            $ 98,706,356   
           

 

 

  

Technology Hardware, Storage & Peripherals — 0.9%

            

Apple, Inc.

            238,155       $ 24,818,133   
           

 

 

  
            $ 24,818,133   
           

 

 

  

Textiles, Apparel & Luxury Goods — 3.1%

            

LVMH Moet Hennessy Louis Vuitton SE

            225,765       $ 38,660,519   

NIKE, Inc., Class B

            451,529         25,059,860   

Pandora A/S

            181,713         23,668,317   
           

 

 

  
            $ 87,388,696   
           

 

 

  

Tobacco — 1.7%

            

Reynolds American, Inc.

            976,020       $ 48,859,561   
           

 

 

  
            $ 48,859,561   
           

 

 

  

Trading Companies & Distributors — 0.8%

            

Brenntag AG

            433,638       $ 21,541,410   
           

 

 

  
            $ 21,541,410   
           

 

 

  

Wireless Telecommunication Services — 1.0%

            

Vodafone Group PLC

            8,867,038       $ 26,937,007   
           

 

 

  
            $ 26,937,007   
           

 

 

  

Total Common Stocks
(identified cost $2,617,015,200)

             $ 2,790,823,826   
           

 

 

  

 

3

 

 

                                                                                                   

Short-Term Investments — 0.7%

            
Description                    Interest
(000’s omitted)		      Value  

Eaton Vance Cash Reserves Fund, LLC, 0.56%(3)

          $ 19,975       $ 19,975,265   
           

 

 

  

Total Short-Term Investments
(identified cost $19,975,265)

             $ 19,975,265   
           

 

 

  

Total Investments — 100.1%
(identified cost $2,636,990,465)

             $ 2,810,799,091   
           

 

 

  

Call Options Written — (0.7)%

            

Exchange-Traded Options — (0.3)%

            
Description    Number of
Contracts		      Strike
Price		     

Expiration
Date

      Value  

S&P 500 Index

      455       $ 2,100         8/3/16       $ (3,357,900 ) 

S&P 500 Index

      465         2,135         8/5/16         (1,862,325 ) 

S&P 500 Index

      460         2,170         8/10/16         (678,500 ) 

S&P 500 Index

      455         2,180         8/12/16         (489,125 ) 

S&P 500 Index

      455         2,175         8/17/16         (707,525 ) 

S&P 500 Index

      455         2,165         8/19/16         (1,023,750 ) 

S&P 500 Index

      465         2,180         8/24/16         (748,650 ) 

S&P 500 Index

      455         2,180         8/26/16         (794,712 ) 
           

 

 

  
   $ (9,662,487 ) 
           

 

 

  

 

Over-the-Counter Options — (0.4)%

  

Description    Counterparty    Number of
Contracts		      Strike
Price		      Expiration
Date		      Value  

Dow Jones Euro Stoxx 50 Index

    Barclays Bank PLC      24,250       EUR 2,875         8/5/16       $ (3,158,671 ) 

Dow Jones Euro Stoxx 50 Index

    Credit Suisse International      23,000       EUR 3,025         8/26/16         (930,914 ) 

Dow Jones Euro Stoxx 50 Index

    Société Générale      23,100       EUR 3,000         8/12/16         (876,159 ) 

Dow Jones Euro Stoxx 50 Index

    Société Générale      23,150       EUR 3,000         8/19/16         (1,129,346 ) 

FTSE 100 Index

    Credit Suisse International      6,700       GBP 6,675         8/19/16         (670,916 ) 

FTSE 100 Index

    Morgan Stanley & Co. International PLC      6,050       GBP 6,700         8/19/16         (502,790 ) 

Nikkei 225 Index

    Merrill Lynch International      170,000       JPY 15,750         8/5/16         (1,408,882 ) 

Nikkei 225 Index

    Merrill Lynch International      165,000       JPY 17,000         8/19/16         (316,306 ) 

Nikkei 225 Index

    Société Générale      170,000       JPY 16,875         8/12/16         (304,278 ) 

Nikkei 225 Index

    UBS AG      165,000       JPY 16,500         8/26/16         (547,883 ) 
              

 

 

  
   $ (9,846,145 ) 
              

 

 

  

Total Call Options Written
(premiums received $13,711,156)

   

          $ (19,508,632 ) 
              

 

 

  

Other Assets, Less Liabilities — 0.6%

  

       $ 16,775,591   
              

 

 

  

Net Assets — 100.0%

  

       $ 2,808,066,050   
              

 

 

  

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) 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, 2016. Net income allocated from the investment in Eaton Vance Cash Reserves Fund, LLC for the fiscal year to date ended July 31, 2016 was $142,390.

 

4

 

 

Country Concentration of Portfolio

                                                 
Country    Percentage of
Total Investments		     Value  

United States

      59.0 %    $     1,657,392,275   

Japan

      8.3        233,908,123   

United Kingdom

      7.2        203,388,994   

Netherlands

      4.1        116,524,739   

France

      3.1        87,152,258   

Ireland

      3.1        85,987,451   

Germany

      2.5        71,150,363   

Denmark

      2.5        70,921,638   

Switzerland

      2.1        60,374,603   

Israel

      1.5        42,072,668   

Belgium

      1.5        40,727,176   

Hong Kong

      1.3        36,392,807   

Spain

      1.3        36,182,442   

Canada

      1.0        29,226,001   

Australia

      0.9        23,889,675   

Singapore

      0.6        15,507,878   
  

 

 

    

 

 

  

Total Investments

      100.0 %    $ 2,810,799,091   
  

 

 

    

 

 

  

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 July 31, 2016 was as follows:

 

     Number of
Contracts		      Premiums
Received		  
Outstanding, beginning of period      596,285       $     13,879,535   
Options written      7,865,765         139,601,202   
Options terminated in closing purchase transactions      (2,764,485 )       (66,163,089 ) 
Options exercised      (1,885 )       (3,127,394 ) 
Options expired      (4,915,765 )       (70,479,098 ) 
  

 

 

     

 

 

  

Outstanding, end of period

      779,915       $ 13,711,156   
  

 

 

     

 

 

  

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 July 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 July 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 $19,508,632.

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

 

Aggregate cost

    $     2,639,074,197   
  

 

 

  

Gross unrealized appreciation

    $ 292,223,319   

Gross unrealized depreciation

      (120,498,425 ) 
  

 

 

  

Net unrealized appreciation

    $ 171,724,894   
  

 

 

  

 

 

5

 

 

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, 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

    $ 257,251,280       $ 116,334,115       $ —       $ 373,585,395   

Consumer Staples

      129,441,251         153,304,075         —         282,745,326   

Energy

      130,099,416         65,090,066         —         195,189,482   

Financials

      281,078,179         174,257,244         —         455,335,423   

Health Care

      337,318,384         178,205,230         —         515,523,614   

Industrials

      212,174,739         156,199,409         —         368,374,148   

Information Technology

      283,290,782         129,622,558         —         412,913,340   

Telecommunication Services

      —         90,245,863         —         90,245,863   

Utilities

      78,061,648         18,849,587         —         96,911,235   

Total Common Stocks

    $     1,708,715,679       $     1,082,108,147 *     $     —       $     2,790,823,826   

Short-Term Investments

    $ —       $ 19,975,265       $ —       $ 19,975,265   

Total Investments

    $ 1,708,715,679       $ 1,102,083,412       $ —       $ 2,810,799,091   
Liability Description                                

Call Options Written

    $ (9,662,487 )     $ (9,846,145 )     $ —       $ (19,508,632 ) 

Total

    $ (9,662,487 )     $ (9,846,145 )     $ —       $ (19,508,632 ) 

 

* 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, 2015 whose fair value was determined using Level 3 inputs. At July 31, 2016, there were no investments transferred between Level 1 and Level 2 during the fiscal year to date then ended.

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.

 

6

 

 

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:   September 26, 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:   September 26, 2016

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   September 26, 2016