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, 2015

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Tax-Managed Global Diversified Equity Income Fund

July 31, 2015

PORTFOLIO OF INVESTMENTS (Unaudited)

Common Stocks — 96.0%

 

                                                 
Security    Shares      Value  

Aerospace & Defense — 2.0%

      

Safran SA

      471,241       $ 35,678,017   

United Technologies Corp.

      253,246         25,403,106   
     

 

 

  
      $ 61,081,123   
     

 

 

  

Air Freight & Logistics — 0.8%

      

C.H. Robinson Worldwide, Inc.

      334,800       $ 23,486,220   
     

 

 

  
      $ 23,486,220   
     

 

 

  

Automobiles — 0.5%

      

Toyota Motor Corp.

      241,113       $ 16,055,657   
     

 

 

  
      $ 16,055,657   
     

 

 

  

Banks — 7.1%

      

Bank of America Corp.

      2,519,775       $ 45,053,577   

Credit Agricole SA

      1,640,143         25,807,021   

JPMorgan Chase & Co.

      715,673         49,045,071   

Lloyds Banking Group PLC

      28,831,135         37,544,167   

Natixis SA

      4,297,189         31,538,029   

Regions Financial Corp.

      2,992,153         31,088,470   
     

 

 

  
      $ 220,076,335   
     

 

 

  

Beverages — 3.6%

      

Anheuser-Busch InBev NV

      325,347       $ 38,873,002   

Constellation Brands, Inc., Class A

      313,299         37,602,146   

Diageo PLC

      1,287,176         36,083,066   
     

 

 

  
      $ 112,558,214   
     

 

 

  

Biotechnology — 3.8%

      

Biogen, Inc.(1)

      97,749       $ 31,160,426   

Celgene Corp.(1)

      348,336         45,719,100   

Gilead Sciences, Inc.

      347,955         41,009,977   
     

 

 

  
      $ 117,889,503   
     

 

 

  

Capital Markets — 2.0%

      

Azimut Holding SpA

      1,143,880       $ 28,571,361   

Macquarie Group, Ltd.

      580,113         34,721,592   
     

 

 

  
      $ 63,292,953   
     

 

 

  

Chemicals — 2.0%

      

LyondellBasell Industries NV, Class A

      327,122       $ 30,693,858   

Monsanto Co.

      308,016         31,383,750   
     

 

 

  
      $ 62,077,608   
     

 

 

  

Commercial Services & Supplies — 0.9%

      

Brambles, Ltd.

      3,658,577       $ 29,021,115   
     

 

 

  
      $ 29,021,115   
     

 

 

  

Communications Equipment — 1.4%

      

QUALCOMM, Inc.

      660,479       $ 42,528,243   
     

 

 

  
      $ 42,528,243   
     

 

 

  

Consumer Finance — 1.4%

      

Discover Financial Services

      780,932       $ 43,583,815   
     

 

 

  
      $ 43,583,815   
     

 

 

  

 

1

 

 

                                                 
Security    Shares      Value  

Diversified Telecommunication Services — 4.1%

      

Deutsche Telekom AG

      2,336,173       $ 42,243,722   

Nippon Telegraph & Telephone Corp.

      1,304,710         50,247,938   

Verizon Communications, Inc.

      778,057         36,405,287   
     

 

 

  
      $ 128,896,947   
     

 

 

  

Electric Utilities — 1.0%

      

NextEra Energy, Inc.

      284,530       $ 29,932,556   
     

 

 

  
      $ 29,932,556   
     

 

 

  

Electrical Equipment — 1.7%

      

Mitsubishi Electric Corp.

      2,008,097       $ 21,567,444   

Nidec Corp.

      348,110         31,123,225   
     

 

 

  
      $ 52,690,669   
     

 

 

  

Electronic Equipment, Instruments & Components — 1.3%

      

Corning, Inc.

      1,448,043       $ 27,049,443   

Yaskawa Electric Corp.

      1,271,348         15,068,753   
     

 

 

  
      $ 42,118,196   
     

 

 

  

Food & Staples Retailing — 1.1%

      

CVS Health Corp.

      306,977       $ 34,525,703   
     

 

 

  
      $ 34,525,703   
     

 

 

  

Food Products — 3.7%

      

Kerry Group PLC, Class A

      329,911       $ 25,070,028   

Mondelez International, Inc., Class A

      1,059,144         47,799,169   

Unilever NV

      976,187         43,731,491   
     

 

 

  
      $ 116,600,688   
     

 

 

  

Health Care Equipment & Supplies — 1.6%

      

Medtronic PLC

      653,811       $ 51,252,244   
     

 

 

  
      $ 51,252,244   
     

 

 

  

Hotels, Restaurants & Leisure — 2.8%

      

Accor SA

      896,814       $ 43,964,938   

Compass Group PLC

      2,742,158         43,862,559   
     

 

 

  
      $ 87,827,497   
     

 

 

  

Household Products — 1.3%

      

Reckitt Benckiser Group PLC

      411,941       $ 39,504,399   
     

 

 

  
      $ 39,504,399   
     

 

 

  

Industrial Conglomerates — 2.2%

      

Danaher Corp.

      490,704       $ 44,928,858   

Koninklijke Philips NV

      897,990         25,023,582   
     

 

 

  
      $ 69,952,440   
     

 

 

  

Insurance — 4.8%

      

AXA SA

      1,619,737       $ 42,656,121   

Mediolanum SpA

      2,881,663         23,069,843   

Prudential PLC

      2,205,711         51,890,300   

St. James’s Place PLC

      2,204,215         33,631,507   
     

 

 

  
      $ 151,247,771   
     

 

 

  

Internet Software & Services — 4.9%

      

Facebook, Inc., Class A(1)

      454,938       $ 42,768,721   

Google, Inc., Class C(1)

      174,244         109,008,789   
     

 

 

  
      $ 151,777,510   
     

 

 

  

IT Services — 1.0%

      

Visa, Inc., Class A

      402,940       $ 30,357,500   
     

 

 

  
      $ 30,357,500   
     

 

 

  

Machinery — 1.1%

      

SKF AB, Class B

      1,820,663       $ 35,611,171   
     

 

 

  
      $ 35,611,171   
     

 

 

  

 

2

 

 

                                                 
Security    Shares      Value  

Media — 2.2%

      

Live Nation Entertainment, Inc.(1)

      657,138       $ 17,230,158   

Walt Disney Co. (The)

      438,459         52,615,080   
     

 

 

  
      $ 69,845,238   
     

 

 

  

Multi-Utilities — 2.1%

      

National Grid PLC

      2,913,502       $ 38,775,022   

Sempra Energy

      266,697         27,144,421   
     

 

 

  
      $ 65,919,443   
     

 

 

  

Oil, Gas & Consumable Fuels — 6.1%

      

Devon Energy Corp.

      895,859       $ 44,273,352   

Exxon Mobil Corp.

      739,413         58,568,904   

Occidental Petroleum Corp.

      568,430         39,903,786   

Range Resources Corp.

      397,585         15,640,994   

Total SA

      675,399         33,326,183   
     

 

 

  
      $ 191,713,219   
     

 

 

  

Pharmaceuticals — 7.8%

      

Bayer AG

      274,638       $ 40,557,571   

Merck & Co., Inc.

      675,355         39,818,931   

Perrigo Co. PLC

      244,163         46,928,129   

Roche Holding AG PC

      184,581         53,329,633   

Takeda Pharmaceutical Co., Ltd.

      655,030         32,955,419   

Teva Pharmaceutical Industries, Ltd. ADR

      442,770         30,559,985   
     

 

 

  
      $ 244,149,668   
     

 

 

  

Real Estate Investment Trusts (REITs) — 2.8%

      

Public Storage

      200,808       $ 41,201,785   

Simon Property Group, Inc.

      252,136         47,204,902   
     

 

 

  
      $ 88,406,687   
     

 

 

  

Semiconductors & Semiconductor Equipment — 1.5%

      

NXP Semiconductors NV(1)

      481,957       $ 46,745,009   
     

 

 

  
      $ 46,745,009   
     

 

 

  

Software — 1.9%

      

Oracle Corp.

      897,788       $ 35,857,653   

SAP SE

      304,329         21,863,926   
     

 

 

  
      $ 57,721,579   
     

 

 

  

Specialty Retail — 3.2%

      

Dixons Carphone PLC

      2,286,989       $ 16,274,009   

Home Depot, Inc. (The)

      485,930         56,868,388   

Industria de Diseno Textil SA

      751,391         25,763,734   
     

 

 

  
      $ 98,906,131   
     

 

 

  

Technology Hardware, Storage & Peripherals — 2.1%

      

Apple, Inc.

      529,100       $ 64,179,830   
     

 

 

  
      $ 64,179,830   
     

 

 

  

Textiles, Apparel & Luxury Goods — 4.0%

      

LVMH Moet Hennessy Louis Vuitton SE

      137,590       $ 25,737,440   

NIKE, Inc., Class B

      563,204         64,892,365   

Pandora A/S

      290,572         32,719,487   
     

 

 

  
      $ 123,349,292   
     

 

 

  

Tobacco — 2.7%

      

Altria Group, Inc.

      771,026       $ 41,928,394   

Imperial Tobacco Group PLC

      821,594         43,114,426   
     

 

 

  
      $ 85,042,820   
     

 

 

  

Wireless Telecommunication Services — 1.5%

  

Vodafone Group PLC

      12,663,010       $ 47,967,438   
     

 

 

  
   $ 47,967,438   
     

 

 

  

Total Common Stocks
(identified cost $2,857,448,506)

   

    $ 2,997,892,431   
     

 

 

  

 

3

 

 

                                                                                                   

Exchange-Traded Funds — 1.5%

            
Security                    Shares      Value  

Equity Funds — 1.5%

            

iShares MSCI Japan ETF

            3,595,299       $ 46,487,216   
           

 

 

  
   $ 46,487,216   
           

 

 

  

Total Exchange-Traded Funds
(identified cost $46,970,232)

             $ 46,487,216   
           

 

 

  

Short-Term Investments — 2.2%

  

Description                    Interest
(000’s omitted)		      Value  

Eaton Vance Cash Reserves Fund, LLC, 0.20%(2)

          $ 67,980       $ 67,980,358   
           

 

 

  

Total Short-Term Investments
(identified cost $67,980,358)

             $ 67,980,358   
           

 

 

  

Total Investments — 99.7%
(identified cost $2,972,399,096)

             $     3,112,360,005   
           

 

 

  

Call Options Written — (0.2)%

  

Exchange-Traded Options — (0.1)%

            
Description    Number of
Contracts		      Strike
Price		      Expiration
Date		      Value  

S&P 500 Index

      1,050       $ 2,110         8/7/15       $ (855,750 ) 

S&P 500 Index

      975         2,140         8/14/15         (185,250 ) 

S&P 500 Index

      1,045         2,120         8/21/15         (1,123,375 ) 

S&P 500 Index

      960         2,120         8/28/15         (1,377,600 ) 
           

 

 

  
   $ (3,541,975 ) 
           

 

 

  

 

Over-the-Counter Options — (0.1)%

  

Description    Counterparty    Number of
Contracts		     

Strike

Price

      Expiration
Date		      Value  

Dow Jones Euro Stoxx 50 Index

    Citibank, N.A.      22,700       EUR 3,750         8/14/15       $ (102,497 ) 

Dow Jones Euro Stoxx 50 Index

    Credit Suisse International      21,250       EUR 3,650         8/28/15         (1,040,642 ) 

Dow Jones Euro Stoxx 50 Index

    Deutsche Bank AG      20,400       EUR 3,700         8/21/15         (429,054 ) 

Dow Jones Euro Stoxx 50 Index

    Société Générale      18,400       EUR 3,600         8/7/15         (637,428 ) 

FTSE 100 Index

    Barclays Bank PLC      6,150       GBP 6,825         8/21/15         (161,425 ) 

FTSE 100 Index

    Deutsche Bank AG      6,000       GBP 6,825         8/21/15         (157,488 ) 

Nikkei 225 Index

    Citibank N.A.      175,000       JPY 21,000         8/14/15         (143,205 ) 

Nikkei 225 Index

    Citibank, N.A.      145,000       JPY 20,625         8/21/15         (353,297 ) 

Nikkei 225 Index

    UBS AG      195,000       JPY 20,750         8/7/15         (199,278 ) 
              

 

 

  
               $ (3,224,314 ) 
              

 

 

  

Total Call Options Written
(premiums received $10,562,788)

   

          $ (6,766,289 ) 
              

 

 

  

Other Assets, Less Liabilities — 0.5%

             $ 14,979,209   
              

 

 

  

Net Assets — 100.0%

             $     3,120,572,925   
              

 

 

  

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

 

ADR

   -   American Depositary Receipt

PC

   -   Participation Certificate

 

4

 

 

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 July 31, 2015. Net income allocated from the investment in Eaton Vance Cash Reserves Fund, LLC for the fiscal year to date ended July 31, 2015 was $52,723.

Country Concentration of Portfolio

 

                                                 
Country    Percentage of
Total Investments		     Value  

United States

      49.1 %    $     1,527,862,728   

United Kingdom

      12.5        388,646,893   

France

      7.7        238,707,749   

Japan

      5.4        167,018,436   

Ireland

      4.0        123,250,401   

Netherlands

      3.7        115,500,082   

Germany

      3.4        104,665,219   

Australia

      2.0        63,742,707   

Switzerland

      1.7        53,329,633   

Italy

      1.7        51,641,204   

Belgium

      1.2        38,873,002   

Sweden

      1.1        35,611,171   

Denmark

      1.0        32,719,487   

Israel

      1.0        30,559,985   

Spain

      0.8        25,763,734   
  

 

 

    

 

 

  

Common Stocks

      96.3 %    $ 2,997,892,431   

Exchange-Traded Funds

      1.5        46,487,216   

Short-Term Investments

      2.2        67,980,358   
  

 

 

    

 

 

  

Total Investments

      100.0 %    $ 3,112,360,005   
  

 

 

    

 

 

  

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

 

Aggregate cost

    $     2,974,321,725   
  

 

 

  

Gross unrealized appreciation

    $ 263,451,134   

Gross unrealized depreciation

      (125,412,854 ) 
  

 

 

  

Net unrealized appreciation

    $ 138,038,280   
  

 

 

  

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

 

     Number of
Contracts		      Premiums
Received		  
Outstanding, beginning of period      1,363,150       $ 9,823,321   
Options written      7,297,005         107,554,253   
Options terminated in closing purchase transactions      (4,780,110 )       (52,846,046 ) 
Options expired      (3,266,115 )       (53,968,740 ) 
  

 

 

     

 

 

  
Outstanding, end of period      613,930       $     10,562,788   
  

 

 

     

 

 

  

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, 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.

 

5

 

 

At July 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 $6,766,289.

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, 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

    $ 191,605,991       $ 204,377,824       $ —       $ 395,983,815   

Consumer Staples

      161,855,412         226,376,412         —         388,231,824   

Energy

      158,387,036         33,326,183         —         191,713,219   

Financials

      257,177,620         309,429,941         —         566,607,561   

Health Care

      286,448,792         126,842,623         —         413,291,415   

Industrials

      93,818,184         178,024,554         —         271,842,738   

Information Technology

      398,495,188         36,932,679         —         435,427,867   

Materials

      62,077,608         —         —         62,077,608   

Telecommunication Services

      36,405,287         140,459,098         —         176,864,385   

Utilities

      57,076,977         38,775,022         —         95,851,999   

Total Common Stocks

    $ 1,703,348,095       $ 1,294,544,336 *     $ —       $ 2,997,892,431   

Exchange-Traded Funds

    $ 46,487,216       $ —       $ —       $ 46,487,216   

Short-Term Investments

      —         67,980,358         —         67,980,358   

Total Investments

    $     1,749,835,311       $     1,362,524,694       $ —       $     3,112,360,005   
Liability Description                                

Call Options Written

    $ (3,541,975 )     $ (3,224,314 )     $ —       $ (6,766,289 ) 

Total

    $     (3,541,975 )     $ (3,224,314 )      $     —       $ (6,766,289 ) 

 

* 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 July 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.

 

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 21, 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/ Michael A. Allison
  Michael A. Allison
  President
Date:   September 21, 2015

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   September 21, 2015