Eaton Vance Tax-Managed Buy-Write 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

811-21676

Investment Company Act File Number

Eaton Vance Tax-Managed Buy-Write 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)

December 31

Date of Fiscal Year End

March 31, 2015

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Tax-Managed Buy-Write Income Fund

March 31, 2015

PORTFOLIO OF INVESTMENTS (Unaudited)

Common Stocks — 99.9%

 

                                                 
Security    Shares      Value  

Aerospace & Defense — 4.0%

      

Boeing Co. (The)

      24,383       $ 3,659,401   

Honeywell International, Inc.

      43,114         4,497,221   

Northrop Grumman Corp.

      21,600         3,476,736   

Textron, Inc.

      11,648         516,356   

United Technologies Corp.

      33,819         3,963,587   
     

 

 

  
      $ 16,113,301   
     

 

 

  

Air Freight & Logistics — 0.5%

      

C.H. Robinson Worldwide, Inc.

      15,034       $ 1,100,789   

United Parcel Service, Inc., Class B

      10,003         969,691   
     

 

 

  
      $ 2,070,480   
     

 

 

  

Airlines — 0.4%

      

Southwest Airlines Co.

      36,616       $ 1,622,089   
     

 

 

  
      $ 1,622,089   
     

 

 

  

Auto Components — 0.9%

      

Dana Holding Corp.

      31,658       $ 669,883   

Goodyear Tire & Rubber Co. (The)

      10,898         295,118   

Johnson Controls, Inc.

      36,367         1,834,352   

Lear Corp.

      7,250         803,445   
     

 

 

  
      $ 3,602,798   
     

 

 

  

Automobiles — 0.2%

      

Ford Motor Co.

      56,137       $ 906,051   
     

 

 

  
      $ 906,051   
     

 

 

  

Banks — 6.7%

      

Bank of America Corp.

      131,359       $ 2,021,615   

BankUnited, Inc.

      10,483         343,213   

Citigroup, Inc.

      104,586         5,388,271   

Fifth Third Bancorp

      57,446         1,082,857   

JPMorgan Chase & Co.

      97,731         5,920,544   

KeyCorp

      85,122         1,205,328   

M&T Bank Corp.

      5,096         647,192   

PNC Financial Services Group, Inc. (The)

      18,419         1,717,388   

SunTrust Banks, Inc.

      5,538         227,556   

Wells Fargo & Co.

      153,058         8,326,355   
     

 

 

  
      $ 26,880,319   
     

 

 

  

Beverages — 2.5%

      

Coca-Cola Co. (The)

      138,646       $ 5,622,095   

PepsiCo, Inc.

      47,142         4,507,718   
     

 

 

  
      $ 10,129,813   
     

 

 

  

Biotechnology — 3.1%

      

Amgen, Inc.

      18,988       $ 3,035,232   

Celgene Corp.(1)

      40,861         4,710,456   

Gilead Sciences, Inc.(1)

      44,082         4,325,767   

Vertex Pharmaceuticals, Inc.(1)

      3,386         399,446   
     

 

 

  
      $ 12,470,901   
     

 

 

  

 

1

 

 

                                                 
Security    Shares      Value  

Capital Markets — 1.3%

      

Invesco, Ltd.

      38,480       $ 1,527,271   

Lazard, Ltd., Class A

      21,525         1,132,000   

Legg Mason, Inc.

      7,629         421,121   

State Street Corp.

      27,413         2,015,678   
     

 

 

  
      $ 5,096,070   
     

 

 

  

Chemicals — 2.3%

      

CF Industries Holdings, Inc.

      3,459       $ 981,249   

Dow Chemical Co. (The)

      45,132         2,165,433   

E.I. du Pont de Nemours & Co.

      46,387         3,315,279   

Eastman Chemical Co.

      3,608         249,890   

Sherwin-Williams Co. (The)

      9,183         2,612,564   
     

 

 

  
      $ 9,324,415   
     

 

 

  

Commercial Services & Supplies — 0.1%

      

Waste Management, Inc.

      4,649       $ 252,115   
     

 

 

  
      $ 252,115   
     

 

 

  

Communications Equipment — 2.2%

      

Brocade Communications Systems, Inc.

      42,403       $ 503,112   

Cisco Systems, Inc.

      134,376         3,698,699   

QUALCOMM, Inc.

      67,609         4,688,008   
     

 

 

  
      $ 8,889,819   
     

 

 

  

Construction & Engineering — 0.4%

      

Fluor Corp.

      25,575       $ 1,461,867   
     

 

 

  
      $ 1,461,867   
     

 

 

  

Consumer Finance — 1.1%

      

American Express Co.

      27,933       $ 2,182,126   

Discover Financial Services

      40,754         2,296,488   
     

 

 

  
      $ 4,478,614   
     

 

 

  

Containers & Packaging — 0.5%

      

Avery Dennison Corp.

      15,307       $ 809,893   

MeadWestvaco Corp.

      21,446         1,069,512   
     

 

 

  
      $ 1,879,405   
     

 

 

  

Distributors — 0.6%

      

Genuine Parts Co.

      27,494       $ 2,562,166   
     

 

 

  
      $ 2,562,166   
     

 

 

  

Diversified Financial Services — 1.8%

      

Berkshire Hathaway, Inc., Class B(1)

      26,717       $ 3,855,797   

McGraw Hill Financial, Inc.

      34,144         3,530,490   
     

 

 

  
      $ 7,386,287   
     

 

 

  

Diversified Telecommunication Services — 1.9%

      

AT&T, Inc.

      139,391       $ 4,551,116   

Frontier Communications Corp.

      67,026         472,533   

Level 3 Communications, Inc.(1)

      1,187         63,908   

Verizon Communications, Inc.

      52,772         2,566,303   
     

 

 

  
      $ 7,653,860   
     

 

 

  

Electric Utilities — 1.1%

      

Duke Energy Corp.

      26,841       $ 2,060,852   

Edison International

      21,133         1,320,179   

Pinnacle West Capital Corp.

      7,168         456,960   

Xcel Energy, Inc.

      12,009         418,033   
     

 

 

  
      $ 4,256,024   
     

 

 

  

Electrical Equipment — 0.6%

      

Emerson Electric Co.

      44,837       $ 2,538,671   
     

 

 

  
      $ 2,538,671   
     

 

 

  

 

2

 

 

                                                 
Security    Shares      Value  

Energy Equipment & Services — 1.6%

      

Halliburton Co.

      53,378       $ 2,342,227   

Schlumberger, Ltd.

      47,378         3,953,220   
     

 

 

  
      $ 6,295,447   
     

 

 

  

Food & Staples Retailing — 2.1%

      

CVS Health Corp.

      54,186       $ 5,592,537   

Wal-Mart Stores, Inc.

      33,228         2,733,003   

Walgreens Boots Alliance, Inc.

      671         56,820   
     

 

 

  
      $ 8,382,360   
     

 

 

  

Food Products — 1.6%

      

Kellogg Co.

      14,423       $ 951,197   

Keurig Green Mountain, Inc.

      15,366         1,716,843   

Kraft Foods Group, Inc.

      8,326         725,319   

Mondelez International, Inc., Class A

      46,954         1,694,570   

Tyson Foods, Inc., Class A

      28,696         1,099,057   
     

 

 

  
      $ 6,186,986   
     

 

 

  

Health Care Equipment & Supplies — 2.7%

      

Abbott Laboratories

      73,588       $ 3,409,332   

Baxter International, Inc.

      37,878         2,594,643   

Halyard Health, Inc.(1)

      2,481         122,065   

Medtronic PLC

      23,942         1,867,237   

Stryker Corp.

      26,801         2,472,392   

Zimmer Holdings, Inc.

      3,848         452,217   
     

 

 

  
      $ 10,917,886   
     

 

 

  

Health Care Providers & Services — 1.7%

      

DaVita HealthCare Partners, Inc.(1)

      4,408       $ 358,282   

UnitedHealth Group, Inc.

      48,079         5,687,265   

VCA, Inc.(1)

      11,050         605,761   
     

 

 

  
      $ 6,651,308   
     

 

 

  

Hotels, Restaurants & Leisure — 1.3%

      

Marriott International, Inc., Class A

      14,651       $ 1,176,768   

Marriott Vacations Worldwide Corp.

      2,064         167,287   

McDonald’s Corp.

      27,950         2,723,448   

Starbucks Corp.

      2,544         240,917   

Wyndham Worldwide Corp.

      11,235         1,016,431   
     

 

 

  
      $ 5,324,851   
     

 

 

  

Household Durables — 1.1%

      

Leggett & Platt, Inc.

      11,383       $ 524,642   

Lennar Corp., Class A

      18,642         965,842   

Newell Rubbermaid, Inc.

      76,798         3,000,498   
     

 

 

  
      $ 4,490,982   
     

 

 

  

Household Products — 1.6%

      

Clorox Co. (The)

      6,843       $ 755,399   

Kimberly-Clark Corp.

      19,850         2,126,133   

Procter & Gamble Co. (The)

      41,964         3,438,530   
     

 

 

  
      $ 6,320,062   
     

 

 

  

Independent Power and Renewable Electricity Producers — 0.0%(2)

      

NRG Energy, Inc.

      5,536       $ 139,452   
     

 

 

  
      $ 139,452   
     

 

 

  

Industrial Conglomerates — 1.8%

      

3M Co.

      21,663       $ 3,573,312   

General Electric Co.

      147,129         3,650,270   
     

 

 

  
      $ 7,223,582   
     

 

 

  

 

3

 

 

                                                 
Security    Shares      Value  

Insurance — 4.4%

      

ACE, Ltd.

      12,980       $ 1,447,140   

Allstate Corp. (The)

      47,607         3,388,190   

AmTrust Financial Services, Inc.

      3,045         173,519   

Cincinnati Financial Corp.

      18,908         1,007,418   

Lincoln National Corp.

      47,210         2,712,687   

Marsh & McLennan Cos., Inc.

      50,188         2,815,045   

MetLife, Inc.

      14,938         755,116   

Principal Financial Group, Inc.

      29,001         1,489,782   

Prudential Financial, Inc.

      21,629         1,737,025   

Travelers Companies, Inc. (The)

      18,899         2,043,549   
     

 

 

  
      $ 17,569,471   
     

 

 

  

Internet & Catalog Retail — 1.2%

      

Amazon.com, Inc.(1)

      2,750       $ 1,023,275   

Netflix, Inc.(1)

      785         327,102   

Priceline Group, Inc. (The)(1)

      1,797         2,091,977   

Shutterfly, Inc.(1)

      28,875         1,306,305   
     

 

 

  
      $ 4,748,659   
     

 

 

  

Internet Software & Services — 3.5%

      

Facebook, Inc., Class A(1)

      20,494       $ 1,684,914   

Google, Inc., Class A(1)

      8,610         4,775,967   

Google, Inc., Class C(1)

      8,610         4,718,280   

VeriSign, Inc.(1)

      41,883         2,804,905   
     

 

 

  
      $ 13,984,066   
     

 

 

  

IT Services — 3.1%

      

Fidelity National Information Services, Inc.

      26,132       $ 1,778,544   

International Business Machines Corp.

      32,671         5,243,696   

MasterCard, Inc., Class A

      51,803         4,475,261   

Visa, Inc., Class A

      9,876         645,989   

Xerox Corp.

      7,778         99,947   
     

 

 

  
      $ 12,243,437   
     

 

 

  

Leisure Products — 0.0%(2)

      

Mattel, Inc.

      5,179       $ 118,340   
     

 

 

  
      $ 118,340   
     

 

 

  

Life Sciences Tools & Services — 0.9%

      

Thermo Fisher Scientific, Inc.

      27,884       $ 3,745,937   
     

 

 

  
      $ 3,745,937   
     

 

 

  

Machinery — 0.9%

      

Caterpillar, Inc.

      22,774       $ 1,822,603   

Snap-on, Inc.

      6,380         938,243   

Stanley Black & Decker, Inc.

      8,690         828,678   
     

 

 

  
      $ 3,589,524   
     

 

 

  

Media — 5.0%

      

CBS Corp., Class B

      41,650       $ 2,525,239   

Comcast Corp., Class A

      99,935         5,643,329   

Omnicom Group, Inc.

      35,123         2,738,892   

Time Warner, Inc.

      28,358         2,394,550   

Walt Disney Co. (The)

      63,058         6,614,154   
     

 

 

  
      $ 19,916,164   
     

 

 

  

Metals & Mining — 0.4%

      

Nucor Corp.

      31,251       $ 1,485,360   
     

 

 

  
      $ 1,485,360   
     

 

 

  

Multi-Utilities — 2.0%

      

Centerpoint Energy, Inc.

      14,223       $ 290,291   

CMS Energy Corp.

      77,060         2,690,165   

 

4

 

 

                                                 
Security    Shares      Value  

Dominion Resources, Inc.

      1,997       $ 141,527   

DTE Energy Co.

      10,342         834,496   

NiSource, Inc.

      49,999         2,207,956   

Public Service Enterprise Group, Inc.

      39,116         1,639,743   
     

 

 

  
      $ 7,804,178   
     

 

 

  

Multiline Retail — 1.0%

      

Macy’s, Inc.

      48,228       $ 3,130,480   

Nordstrom, Inc.

      12,248         983,759   
     

 

 

  
      $ 4,114,239   
     

 

 

  

Oil, Gas & Consumable Fuels — 6.5%

      

Chevron Corp.

      62,708       $ 6,583,086   

ConocoPhillips

      22,653         1,410,376   

EOG Resources, Inc.

      33,718         3,091,603   

Exxon Mobil Corp.

      77,433         6,581,805   

Kinder Morgan, Inc.

      12,255         515,445   

Occidental Petroleum Corp.

      1,064         77,672   

Phillips 66

      24,334         1,912,652   

Range Resources Corp.

      20,840         1,084,514   

Tesoro Corp.

      19,643         1,793,210   

Williams Cos., Inc. (The)

      57,536         2,910,746   
     

 

 

  
      $ 25,961,109   
     

 

 

  

Personal Products — 0.1%

      

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

      3,326       $ 276,590   
     

 

 

  
      $ 276,590   
     

 

 

  

Pharmaceuticals — 5.8%

      

AbbVie, Inc.

      19,355       $ 1,133,042   

Actavis PLC(1)

      1,596         475,001   

Bristol-Myers Squibb Co.

      80,700         5,205,150   

Johnson & Johnson

      51,433         5,174,160   

Merck & Co., Inc.

      106,916         6,145,532   

Pfizer, Inc.

      150,447         5,234,051   
     

 

 

  
      $ 23,366,936   
     

 

 

  

Professional Services — 0.3%

      

ManpowerGroup, Inc.

      1,193       $ 102,777   

Robert Half International, Inc.

      18,170         1,099,648   
     

 

 

  
      $ 1,202,425   
     

 

 

  

Real Estate Investment Trusts (REITs) — 2.0%

      

Apartment Investment & Management Co., Class A

      12,428       $ 489,166   

AvalonBay Communities, Inc.

      11,002         1,917,098   

Equity Residential

      14,774         1,150,304   

Host Hotels & Resorts, Inc.

      58,590         1,182,346   

Kimco Realty Corp.

      78,276         2,101,711   

ProLogis, Inc.

      22,296         971,214   
     

 

 

  
      $ 7,811,839   
     

 

 

  

Real Estate Management & Development — 0.1%

      

CBRE Group, Inc., Class A(1)

      8,158       $ 315,796   
     

 

 

  
      $ 315,796   
     

 

 

  

Road & Rail — 1.1%

      

J.B. Hunt Transport Services, Inc.

      3,521       $ 300,676   

Kansas City Southern

      11,539         1,177,901   

Norfolk Southern Corp.

      27,357         2,815,582   

Union Pacific Corp.

      2,173         235,358   
     

 

 

  
      $ 4,529,517   
     

 

 

  

Semiconductors & Semiconductor Equipment — 2.0%

      

Advanced Micro Devices, Inc.(1)

      352,424       $ 944,496   

Analog Devices, Inc.

      16,160         1,018,080   

Applied Materials, Inc.

      15,313         345,461   

 

 

5

 

 

                                                 
Security    Shares      Value  

Avago Technologies, Ltd.

      10,000       $ 1,269,800   

Cree, Inc.(1)

      21,482         762,396   

Cypress Semiconductor Corp.(1)

      60,131         848,449   

Intel Corp.

      56,723         1,773,728   

Micron Technology, Inc.(1)

      3,063         83,099   

NVIDIA Corp.

      24,772         518,354   

Teradyne, Inc.

      32,470         612,060   
     

 

 

  
      $ 8,175,923   
     

 

 

  

Software — 3.2%

      

Microsoft Corp.

      196,258       $ 7,978,869   

Oracle Corp.

      103,117         4,449,499   

salesforce.com, inc.(1)

      3,689         246,462   
     

 

 

  
      $ 12,674,830   
     

 

 

  

Specialty Retail — 2.2%

      

Abercrombie & Fitch Co., Class A

      4,343       $ 95,720   

Advance Auto Parts, Inc.

      3,365         503,707   

AutoNation, Inc.(1)

      5,400         347,382   

Home Depot, Inc. (The)

      55,745         6,333,189   

L Brands, Inc.

      1,800         169,722   

Tiffany & Co.

      14,641         1,288,554   
     

 

 

  
      $ 8,738,274   
     

 

 

  

Technology Hardware, Storage & Peripherals — 4.7%

      

Apple, Inc.

      151,634       $ 18,867,819   
     

 

 

  
      $ 18,867,819   
     

 

 

  

Textiles, Apparel & Luxury Goods — 0.4%

      

NIKE, Inc., Class B

      15,997       $ 1,604,979   
     

 

 

  
      $ 1,604,979   
     

 

 

  

Tobacco — 1.3%

      

Altria Group, Inc.

      5,094       $ 254,802   

Lorillard, Inc.

      5,365         350,603   

Philip Morris International, Inc.

      63,379         4,774,340   
     

 

 

  
      $ 5,379,745   
     

 

 

  

Trading Companies & Distributors — 0.1%

      

Fastenal Co.

      10,080       $ 417,665   
     

 

 

  
      $ 417,665   
     

 

 

  

Total Common Stocks — 99.9%
(identified cost $172,901,814)

       $ 400,150,803   
     

 

 

  

Call Options Written — (0.2)%

      

 

                                                                                                   
Description    Number of
Contracts		      Strike
Price		      Expiration
Date		      Value  

S&P 500 Index

      435       $ 2,115         4/2/15       $ (13,050 ) 

S&P 500 Index

      410         2,100         4/10/15         (194,750 ) 

S&P 500 Index

      465         2,125         4/17/15         (109,275 ) 

S&P 500 Index

      515         2,095         4/24/15         (682,375 ) 
           

 

 

  

Total Call Options Written
(premiums received $2,136,894)

             $ (999,450 ) 
           

 

 

  

Other Assets, Less Liabilities — 0.3%

             $ 1,291,807   
           

 

 

  

Net Assets — 100.0%

  

    $ 400,443,160   
           

 

 

  

 

 

6

 

 

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

 

(1) Non-income producing security.

 

(2) Amount is less than 0.05%.

The cost and unrealized appreciation (depreciation) of investments of the Fund at March 31, 2015, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     172,794,979   
  

 

 

  

Gross unrealized appreciation

    $ 227,425,318   

Gross unrealized depreciation

      (69,494 ) 
  

 

 

  

Net unrealized appreciation

    $ 227,355,824   
  

 

 

  

Written options activity for the fiscal year to date ended March 31, 2015 was as follows:

 

     Number of
Contracts		      Premiums
Received		  
Outstanding, beginning of period      1,835       $     2,677,434   
Options written      6,010         8,266,365   
Options terminated in closing purchase transactions      (2,715 )       (4,154,598 ) 
Options expired      (3,305 )       (4,652,307 ) 
  

 

 

     

 

 

  
Outstanding, end of period      1,825       $ 2,136,894   
  

 

 

     

 

 

  

All of the assets of the Fund are subject to segregation to satisfy the requirements of the escrow agent. At March 31, 2015, 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 March 31, 2015, 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 $999,450.

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 March 31, 2015, 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

    $ 400,150,803 *     $ —       $ —       $ 400,150,803   

Total Investments

    $     400,150,803       $ —       $ —       $     400,150,803   
Liability Description                                

Call Options Written

    $ (999,450 )     $ —       $ —       $ (999,450 ) 

Total

    $ (999,450 )     $ —       $ —       $ (999,450 ) 

 

* The level classification by major category of investments is the same as the category presentation in the Portfolio of Investments.

 

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The Fund held no investments or other financial instruments as of December 31, 2014 whose fair value was determined using Level 3 inputs. At March 31, 2015, 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.

 

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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 Buy-Write Income Fund

 

By:   /s/ Walter A. Row, III
  Walter A. Row, III
  President
Date:   May 22, 2015

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:   May 22, 2015
By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   May 22, 2015