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, 2015

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Tax-Managed Global Diversified Equity Income Fund

January 31, 2015

PORTFOLIO OF INVESTMENTS (Unaudited)

Common Stocks — 99.0%

 

                                                 
Security    Shares      Value  

Aerospace & Defense — 1.4%

      

Safran SA

      644,500       $ 42,923,583   
     

 

 

  
      $ 42,923,583   
     

 

 

  

Air Freight & Logistics — 1.1%

      

C.H. Robinson Worldwide, Inc.

      477,099       $ 33,978,991   
     

 

 

  
      $ 33,978,991   
     

 

 

  

Automobiles — 0.5%

      

Toyota Motor Corp.

      255,635       $ 16,481,025   
     

 

 

  
      $ 16,481,025   
     

 

 

  

Banks — 9.7%

      

Bank of America Corp.

      2,673,091       $ 40,497,329   

JPMorgan Chase & Co.

      665,702         36,200,875   

Lloyds Banking Group PLC(1)

      26,972,368         29,880,363   

Mitsubishi UFJ Financial Group, Inc.

      1,087,756         5,780,624   

Natixis SA

      6,301,061         40,074,611   

Regions Financial Corp.

      3,173,329         27,607,962   

Skandinaviska Enskilda Banken AB, Class A

      2,767,594         33,326,246   

Societe Generale SA

      734,317         29,487,460   

Unione di Banche Italiane ScpA

      3,628,950         24,961,016   

Westpac Banking Corp.

      1,108,184         29,617,372   
     

 

 

  
      $ 297,433,858   
     

 

 

  

Beverages — 3.0%

      

Anheuser-Busch InBev NV

      456,144       $ 55,634,092   

Constellation Brands, Inc., Class A(1)

      332,678         36,744,285   
     

 

 

  
      $ 92,378,377   
     

 

 

  

Biotechnology — 4.0%

      

Biogen Idec, Inc.(1)

      104,083       $ 40,504,940   

Celgene Corp.(1)

      369,880         44,074,901   

Gilead Sciences, Inc.(1)

      369,486         38,733,217   
     

 

 

  
      $ 123,313,058   
     

 

 

  

Chemicals — 2.2%

      

LyondellBasell Industries NV, Class A

      347,268       $ 27,465,426   

Monsanto Co.

      326,801         38,555,982   
     

 

 

  
      $ 66,021,408   
     

 

 

  

Commercial Services & Supplies — 0.8%

      

Brambles, Ltd.

      2,845,266       $ 23,310,075   
     

 

 

  
      $ 23,310,075   
     

 

 

  

Communications Equipment — 1.4%

      

QUALCOMM, Inc.

      700,373       $ 43,745,298   
     

 

 

  
      $ 43,745,298   
     

 

 

  

Consumer Finance — 2.3%

      

American Express Co.

      301,748       $ 24,348,046   

Discover Financial Services

      828,090         45,031,534   
     

 

 

  
      $ 69,379,580   
     

 

 

  

 

1

 

 

                                                 
Security    Shares      Value  

Diversified Financial Services — 1.0%

      

ING Groep NV(1)

      2,363,200       $ 29,380,250   
     

 

 

  
      $ 29,380,250   
     

 

 

  

Diversified Telecommunication Services — 4.0%

      

Deutsche Telekom AG

      2,431,852       $ 41,920,478   

Nippon Telegraph & Telephone Corp.

      691,618         40,934,612   

Verizon Communications, Inc.

      825,160         37,718,063   
     

 

 

  
      $ 120,573,153   
     

 

 

  

Electric Utilities — 1.1%

      

NextEra Energy, Inc.

      301,876       $ 32,976,934   
     

 

 

  
      $ 32,976,934   
     

 

 

  

Electrical Equipment — 3.6%

      

Emerson Electric Co.

      617,690       $ 35,171,269   

Mitsubishi Electric Corp.

      2,130,302         24,638,497   

Nidec Corp.

      369,642         25,153,378   

Rockwell Automation, Inc.

      239,294         26,063,902   
     

 

 

  
      $ 111,027,046   
     

 

 

  

Electronic Equipment, Instruments & Components — 1.8%

      

Corning, Inc.

      1,535,731       $ 36,504,326   

Yaskawa Electric Corp.

      1,348,218         17,235,605   
     

 

 

  
      $ 53,739,931   
     

 

 

  

Energy Equipment & Services — 0.5%

      

Halliburton Co.

      380,000       $ 15,196,200   
     

 

 

  
      $ 15,196,200   
     

 

 

  

Food & Staples Retailing — 2.5%

      

Costco Wholesale Corp.

      315,869       $ 45,166,108   

CVS Health Corp.

      325,743         31,974,933   
     

 

 

  
      $ 77,141,041   
     

 

 

  

Food Products — 1.3%

      

Mondelez International, Inc., Class A

      1,123,515       $ 39,592,669   
     

 

 

  
      $ 39,592,669   
     

 

 

  

Health Care Equipment & Supplies — 1.4%

      

Medtronic PLC

      585,589       $ 41,811,055   
     

 

 

  
      $ 41,811,055   
     

 

 

  

Hotels, Restaurants & Leisure — 3.2%

      

Accor SA

      951,148       $ 47,288,216   

Compass Group PLC

      2,908,137         50,139,610   
     

 

 

  
      $ 97,427,826   
     

 

 

  

Household Products — 1.5%

      

Reckitt Benckiser Group PLC

      542,201       $ 45,889,106   
     

 

 

  
      $ 45,889,106   
     

 

 

  

Industrial Conglomerates — 2.6%

      

Danaher Corp.

      520,417       $ 42,871,952   

Koninklijke Philips NV

      1,274,290         35,138,372   
     

 

 

  
      $ 78,010,324   
     

 

 

  

Insurance — 4.1%

      

AXA SA

      1,324,881       $ 30,991,539   

MetLife, Inc.

      787,852         36,635,118   

Prudential PLC

      2,315,791         56,297,790   

St James’s Place PLC

      163,707         2,106,230   
     

 

 

  
      $ 126,030,677   
     

 

 

  

 

2

 

 

                                                 
Security    Shares      Value  

Internet & Catalog Retail — 1.7%

      

Amazon.com, Inc.(1)

      142,192       $ 50,411,330   
     

 

 

  
      $ 50,411,330   
     

 

 

  

Internet Software & Services — 4.4%

      

Facebook, Inc., Class A(1)

      482,480       $ 36,625,057   

Google, Inc., Class C(1)

      184,527         98,633,372   
     

 

 

  
      $ 135,258,429   
     

 

 

  

IT Services — 0.9%

      

Visa, Inc., Class A

      107,001       $ 27,275,625   
     

 

 

  
      $ 27,275,625   
     

 

 

  

Machinery — 1.1%

      

SKF AB, Class B

      1,435,000       $ 33,825,643   
     

 

 

  
      $ 33,825,643   
     

 

 

  

Media — 1.9%

      

Live Nation Entertainment, Inc.(1)

      668,174       $ 15,882,496   

Walt Disney Co. (The)

      464,192         42,222,904   
     

 

 

  
      $ 58,105,400   
     

 

 

  

Metals & Mining — 0.4%

      

Freeport-McMoRan, Inc.

      634,078       $ 10,658,851   
     

 

 

  
      $ 10,658,851   
     

 

 

  

Multi-Utilities — 2.4%

      

National Grid PLC

      3,033,002       $ 42,640,987   

Sempra Energy

      282,703         31,640,120   
     

 

 

  
      $ 74,281,107   
     

 

 

  

Oil, Gas & Consumable Fuels — 7.1%

      

Devon Energy Corp.

      742,655       $ 44,759,817   

Exxon Mobil Corp.

      537,000         46,944,540   

Occidental Petroleum Corp.

      603,098         48,247,840   

Statoil ASA

      2,022,775         33,873,954   

Total SA

      850,895         43,676,919   
     

 

 

  
      $ 217,503,070   
     

 

 

  

Pharmaceuticals — 7.9%

      

AstraZeneca PLC

      427,848       $ 30,456,515   

Bayer AG

      291,292         41,955,162   

Merck & Co., Inc.

      716,034         43,162,530   

Perrigo Co. PLC

      258,749         39,262,573   

Roche Holding AG PC

      187,636         50,571,163   

Takeda Pharmaceutical Co., Ltd.

      693,828         34,663,194   
     

 

 

  
      $ 240,071,137   
     

 

 

  

Real Estate Investment Trusts (REITs) — 1.2%

      

Simon Property Group, Inc.

      191,630       $ 38,069,216   
     

 

 

  
      $ 38,069,216   
     

 

 

  

Semiconductors & Semiconductor Equipment — 1.3%

      

NXP Semiconductors NV(1)

      511,006       $ 40,543,216   
     

 

 

  
      $ 40,543,216   
     

 

 

  

Software — 2.0%

      

Microsoft Corp.

      844,338       $ 34,111,255   

Oracle Corp.

      639,091         26,771,522   
     

 

 

  
      $ 60,882,777   
     

 

 

  

 

3

 

 

                                                 
Security    Shares      Value  

Specialty Retail — 2.3%

      

Dixons Carphone PLC

      2,425,935       $ 15,853,656   

Home Depot, Inc. (The)

      515,553         53,834,044   
     

 

 

  
      $ 69,687,700   
     

 

 

  

Technology Hardware, Storage & Peripherals — 3.6%

      

Apple, Inc.

      684,810       $ 80,232,340   

Lenovo Group, Ltd.

      23,987,780         31,009,584   
     

 

 

  
      $ 111,241,924   
     

 

 

  

Textiles, Apparel & Luxury Goods — 2.7%

      

NIKE, Inc., Class B

      597,277       $ 55,098,803   

Pandora A/S

      381,923         27,302,751   
     

 

 

  
      $ 82,401,554   
     

 

 

  

Tobacco — 1.8%

      

British American Tobacco PLC

      957,923       $ 54,042,208   
     

 

 

  
      $ 54,042,208   
     

 

 

  

Transportation Infrastructure — 0.2%

      

Sydney Airport

      1,691,005       $ 6,534,411   
     

 

 

  
      $ 6,534,411   
     

 

 

  

Wireless Telecommunication Services — 1.1%

      

Vodafone Group PLC

      9,317,178       $ 32,763,650   
     

 

 

  
      $ 32,763,650   
     

 

 

  

Total Common Stocks
(identified cost $3,102,265,909)

       $ 3,021,318,713   
     

 

 

  

Short-Term Investments — 0.6%

      
Description    Interest
(000’s omitted)		      Value  

Eaton Vance Cash Reserves Fund, LLC, 0.15%(2)

    $ 18,498       $ 18,498,128   
     

 

 

  

Total Short-Term Investments
(identified cost $18,498,128)

       $ 18,498,128   
     

 

 

  

Total Investments — 99.6%
(identified cost $3,120,764,037)

       $ 3,039,816,841   
     

 

 

  

Call Options Written — (0.6)%

      

 

                                                                                                   

Exchange-Traded Options — (0.1)%

            
Description    Number of
Contracts		      Strike
Price		      Expiration
Date		      Value  

S&P 500 Index

      1,065       $ 2,090         2/6/15       $ (15,975 ) 

S&P 500 Index

      985         2,035         2/13/15         (1,108,125 ) 

S&P 500 Index

      1,030         2,085         2/20/15         (293,550 ) 

S&P 500 Index

      1,110         2,055         2/27/15         (1,332,000 ) 
           

 

 

  
            $ (2,749,650 ) 
           

 

 

  

 

4

 

 

                                                                                                   

Over-the-Counter Options — (0.5)%

 

Description

  

Counterparty

   Number of
Contracts		     Strike
Price		     Expiration
Date		     Value  

Dow Jones Euro Stoxx 50 Index

   Citibank, N.A.     22,050      EUR     3,275        2/20/15      $ (2,862,135 ) 

Dow Jones Euro Stoxx 50 Index

   Deutsche Bank AG     42,200      EUR     3,225        2/20/15        (7,307,621 ) 

Dow Jones Euro Stoxx 50 Index

  

Morgan Stanley & Co.

International PLC

     20,700      EUR     3,325        2/20/15        (1,894,896 ) 

FTSE 100 Index

   Barclays Bank PLC     6,250      GBP     6,600        2/20/15        (1,655,412 ) 

FTSE 100 Index

   Societe Generale     6,200      GBP     6,725        2/20/15        (837,457 ) 

Nikkei 225 Index

   Bank of America, N.A.     380,000      JPY     17,875        2/13/15        (604,504 ) 

Nikkei 225 Index

   Citibank, N.A.     390,000      JPY     17,625        2/13/15        (1,023,359 ) 
           

 

 

  
            $ (16,185,384 ) 
           

 

 

  

Total Call Options Written
(premiums received $15,056,999)

             $ (18,935,034 ) 
           

 

 

  

Other Assets, Less Liabilities — 1.0%

             $ 30,453,748   
           

 

 

  

Net Assets — 100.0%

             $   3,051,335,555   
           

 

 

  

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

 

PC

   -   Participation Certificate

EUR

   -   Euro

GBP

   -   British Pound Sterling

JPY

   -   Japanese Yen

 

(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, 2015. Net income allocated from the investment in Eaton Vance Cash Reserves Fund, LLC for the fiscal year to date ended January 31, 2015 was $12,090.

Country Concentration of Portfolio

 

                                                 
Country    Percentage of
Total Investments		     Value  

United States

      54.6 %    $     1,660,440,050   

United Kingdom

      11.8        360,070,115   

France

      7.7        234,442,328   

Japan

      5.4        164,886,935   

Netherlands

      3.5        105,061,838   

Germany

      2.8        83,875,640   

Ireland

      2.7        81,073,628   

Sweden

      2.2        67,151,889   

Australia

      2.0        59,461,858   

Belgium

      1.8        55,634,092   

Switzerland

      1.7        50,571,163   

Norway

      1.1        33,873,954   

China

      1.0        31,009,584   

Denmark

      0.9        27,302,751   

Italy

      0.8        24,961,016   
  

 

 

    

 

 

  

Total Investments

      100.0 %    $ 3,039,816,841   
  

 

 

    

 

 

  

 

5

 

 

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

 

Aggregate cost

    $      3,122,686,666   
  

 

 

  

Gross unrealized appreciation

    $ 121,853,014   

Gross unrealized depreciation

      (204,722,839 ) 
  

 

 

  

Net unrealized depreciation

    $ (82,869,825 ) 
  

 

 

  

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

 

     Number of
Contracts		      Premiums
Received		  

Outstanding, beginning of period

      1,363,150       $ 9,823,321   

Options written

      2,623,915         38,204,360   

Options terminated in closing purchase transactions

      (1,409,565 )       (15,539,444 ) 

Options expired

      (1,705,910 )       (17,431,238 ) 
  

 

 

     

 

 

  

Outstanding, end of period

      871,590       $     15,056,999   
  

 

 

     

 

 

  

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, 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 January 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 $18,935,034.

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.

 

6

 

 

At January 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            

Consumer Discretionary

    $ 217,449,577       $ 157,065,258       $ —       $ 374,514,835   

Consumer Staples

      153,477,995         155,565,406         —         309,043,401   

Energy

      155,148,397         77,550,873         —         232,699,270   

Financials

      248,390,080         311,903,501         —         560,293,581   

Health Care

      247,549,216         157,646,034         —         405,195,250   

Industrials

      138,086,114         191,523,959         —         329,610,073   

Information Technology

      424,442,011         48,245,189         —         472,687,200   

Materials

      76,680,259         —         —         76,680,259   

Telecommunication Services

      37,718,063         115,618,740         —         153,336,803   

Utilities

      64,617,054         42,640,987         —         107,258,041   

Total Common Stocks

    $ 1,763,558,766       $ 1,257,759,947 *     $ —       $ 3,021,318,713   

Short-Term Investments

    $ —       $ 18,498,128       $ —       $ 18,498,128   

Total Investments

    $     1,763,558,766       $     1,276,258,075       $     —       $     3,039,816,841   
Liability Description                                

Call Options Written

    $ (2,749,650 )     $ (16,185,384 )     $ —       $ (18,935,034 ) 

Total

    $ (2,749,650 )     $ (16,185,384 )     $ —       $ (18,935,034 ) 

 

* 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, 2014 whose fair value was determined using Level 3 inputs. At January 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.

 

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/ Walter A. Row, III
  Walter A. Row, III
  President
Date:   March 23, 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:   March 23, 2015

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   March 23, 2015