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, 2019

Date of Reporting Period

 

 

 


Item 1. Schedule of Investments


Eaton Vance

Tax-Managed Global Diversified Equity Income Fund

January 31, 2019

PORTFOLIO OF INVESTMENTS (Unaudited)

Common Stocks — 100.9%

 

                                                 
Security    Shares      Value  

Aerospace & Defense — 0.9%

 

CAE, Inc.

     1,040,098      $ 22,100,945  
     

 

 

 
   $ 22,100,945  
     

 

 

 

Auto Components — 0.8%

 

Continental AG

     135,213      $ 21,368,576  
     

 

 

 
   $ 21,368,576  
     

 

 

 

Banks — 8.9%

 

Banco Santander SA

     3,540,223      $ 16,789,976  

Bank of America Corp.(1)

     1,008,632        28,715,753  

Canadian Imperial Bank of Commerce

     337,809        28,642,871  

Citigroup, Inc.(1)

     515,610        33,236,221  

ING Groep NV

     1,896,928        22,508,584  

KeyCorp(1)

     1,549,639        25,522,554  

Nordea Bank AB

     1,414,839        12,876,850  

Societe Generale SA

     453,136        14,128,551  

UniCredit SpA

     1,020,837        11,801,357  

Wells Fargo & Co.(1)

     555,470        27,168,038  
     

 

 

 
   $ 221,390,755  
     

 

 

 

Beverages — 3.7%

 

Anheuser-Busch InBev SA/NV

     230,110      $ 17,581,153  

Coca-Cola Co. (The)(1)

     910,686        43,831,317  

Diageo PLC(1)

     805,001        30,724,002  
     

 

 

 
   $ 92,136,472  
     

 

 

 

Building Products — 1.1%

 

Assa Abloy AB, Class B(1)

     1,550,045      $ 28,883,695  
     

 

 

 
   $ 28,883,695  
     

 

 

 

Chemicals — 3.1%

 

BASF SE

     325,695      $ 23,859,643  

Ecolab, Inc.(1)

     224,279        35,474,209  

Sika AG

     147,630        19,495,401  
     

 

 

 
   $ 78,829,253  
     

 

 

 

Consumer Finance — 2.0%

 

Discover Financial Services

     302,743      $ 20,432,125  

Navient Corp.

     1,191,189        13,579,555  

OneMain Holdings, Inc.(2)

     499,213        14,921,476  
     

 

 

 
   $ 48,933,156  
     

 

 

 

Diversified Financial Services — 1.4%

     

ORIX Corp.(1)

     2,380,110      $ 35,901,137  
     

 

 

 
   $ 35,901,137  
     

 

 

 

 

1

 

 


                                                 
Security    Shares      Value  

Electric Utilities — 3.1%

     

Iberdrola SA

     3,732,030      $ 30,847,009  

NextEra Energy, Inc.(1)

     263,151        47,098,766  
     

 

 

 
   $ 77,945,775  
     

 

 

 

Electrical Equipment — 3.0%

     

Legrand SA

     405,025      $ 23,996,285  

Melrose Industries PLC

     23,474,181        52,031,179  
     

 

 

 
   $ 76,027,464  
     

 

 

 

Electronic Equipment, Instruments & Components — 2.0%

     

CDW Corp.(1)

     175,379      $ 14,603,809  

Keyence Corp.

     67,853        34,918,178  
     

 

 

 
   $ 49,521,987  
     

 

 

 

Energy Equipment & Services — 0.9%

     

Halliburton Co.

     725,308      $ 22,745,659  
     

 

 

 
   $ 22,745,659  
     

 

 

 

Entertainment — 3.1%

     

Activision Blizzard, Inc.(1)

     647,030      $ 30,565,697  

Walt Disney Co. (The)(1)

     411,287        45,866,726  
     

 

 

 
   $ 76,432,423  
     

 

 

 

Equity Real Estate Investment Trusts (REITs) — 2.4%

     

American Tower Corp.(1)

     263,532      $ 45,548,871  

Equity Residential

     217,918        15,812,130  
     

 

 

 
   $ 61,361,001  
     

 

 

 

Food Products — 1.8%

     

Mondelez International, Inc., Class A(1)

     636,114      $ 29,426,634  

Nestle SA

     166,901        14,551,077  
     

 

 

 
   $ 43,977,711  
     

 

 

 

Health Care Equipment & Supplies — 4.5%

     

Baxter International, Inc.(1)

     515,687      $ 37,382,151  

Boston Scientific Corp.(1)(2)

     730,322        27,861,784  

Danaher Corp.(1)

     245,813        27,265,578  

Fisher & Paykel Healthcare Corp., Ltd.

     512,357        4,459,049  

Intuitive Surgical, Inc.(2)

     31,135        16,303,531  
     

 

 

 
   $ 113,272,093  
     

 

 

 

Health Care Providers & Services — 1.7%

     

Anthem, Inc.

     86,874      $ 26,322,822  

UnitedHealth Group, Inc.

     60,113        16,242,533  
     

 

 

 
   $ 42,565,355  
     

 

 

 

Hotels, Restaurants & Leisure — 1.1%

 

Compass Group PLC

     1,239,749      $ 26,528,822  
     

 

 

 
   $ 26,528,822  
     

 

 

 

Household Products — 0.8%

 

Reckitt Benckiser Group PLC(1)

     248,345      $ 19,108,823  
     

 

 

 
   $ 19,108,823  
     

 

 

 

 

2

 

 


                                                 
Security    Shares      Value  

Insurance — 3.4%

 

AIA Group, Ltd.(1)

     1,688,569      $ 15,246,943  

Aviva PLC(1)

     4,469,971        24,310,426  

Chubb, Ltd.(1)

     174,022        23,153,627  

Prudential PLC(1)

     1,132,114        22,139,768  
     

 

 

 
   $ 84,850,764  
     

 

 

 

Interactive Media & Services — 5.4%

 

Alphabet, Inc., Class C(1)(2)

     84,653      $ 94,504,070  

Facebook, Inc., Class A(1)(2)

     241,389        40,237,132  
     

 

 

 
   $ 134,741,202  
     

 

 

 

Internet & Direct Marketing Retail — 3.6%

 

Amazon.com, Inc.(1)(2)

     47,783      $ 82,126,076  

ZOZO, Inc.

     392,172        7,935,455  
     

 

 

 
   $ 90,061,531  
     

 

 

 

IT Services — 1.5%

 

Amadeus IT Group SA

     196,827      $ 14,312,944  

Visa, Inc., Class A

     167,992        22,680,600  
     

 

 

 
   $ 36,993,544  
     

 

 

 

Leisure Products — 1.0%

 

Yamaha Corp.(1)

     557,460      $ 24,396,429  
     

 

 

 
   $ 24,396,429  
     

 

 

 

Life Sciences Tools & Services — 0.8%

 

Lonza Group AG

     72,362      $ 19,117,902  
     

 

 

 
   $ 19,117,902  
     

 

 

 

Machinery — 6.0%

 

Atlas Copco AB, Class A

     538,833      $ 14,057,795  

Fortive Corp.

     275,781        20,680,817  

Gardner Denver Holdings, Inc.(2)

     653,087        16,111,656  

ITT, Inc.(1)

     499,247        26,240,422  

MISUMI Group, Inc.

     775,081        17,740,878  

Stanley Black & Decker, Inc.

     206,582        26,120,228  

Xylem, Inc.(1)

     402,082        28,652,363  
     

 

 

 
   $ 149,604,159  
     

 

 

 

Metals & Mining — 1.3%

 

Rio Tinto, Ltd.(1)

     525,144      $ 33,391,644  
     

 

 

 
   $ 33,391,644  
     

 

 

 

Multi-Utilities — 1.4%

 

CMS Energy Corp.(1)

     669,441      $ 34,904,654  
     

 

 

 
   $ 34,904,654  
     

 

 

 

Oil, Gas & Consumable Fuels — 5.9%

 

BP PLC

     3,243,106      $ 22,154,122  

ConocoPhillips(1)

     354,207        23,976,272  

EOG Resources, Inc.(1)

     342,877        34,013,399  

Exxon Mobil Corp.(1)

     437,212        32,038,895  

Phillips 66(1)

     364,756        34,801,370  
     

 

 

 
   $ 146,984,058  
     

 

 

 

 

3

 

 


                                                 
Security    Shares      Value  

Personal Products — 1.2%

 

Unilever PLC(1)

     552,147      $ 29,006,517  
     

 

 

 
   $ 29,006,517  
     

 

 

 

Pharmaceuticals — 5.8%

 

Eli Lilly & Co.(1)

     242,626      $ 29,081,152  

GlaxoSmithKline PLC(1)

     1,658,329        32,212,317  

Johnson & Johnson(1)

     259,827        34,577,777  

Novo Nordisk A/S, Class B

     429,289        20,119,093  

Zoetis, Inc.(1)

     346,934        29,891,834  
     

 

 

 
   $ 145,882,173  
     

 

 

 

Professional Services — 1.3%

 

Verisk Analytics, Inc.(1)(2)

     268,184      $ 31,487,483  
     

 

 

 
   $ 31,487,483  
     

 

 

 

Semiconductors & Semiconductor Equipment — 2.2%

 

ASML Holding NV(1)

     248,600      $ 43,472,056  

Taiwan Semiconductor Manufacturing Co., Ltd. ADR(1)

     329,636        12,400,906  
     

 

 

 
   $ 55,872,962  
     

 

 

 

Software — 2.8%

 

Microsoft Corp.(1)

     678,190      $ 70,823,382  
     

 

 

 
   $ 70,823,382  
     

 

 

 

Specialty Retail — 3.1%

 

Industria de Diseno Textil SA

     1,234,713      $ 34,538,875  

Tiffany & Co.

     152,241        13,508,344  

TJX Cos., Inc. (The)

     322,830        16,054,336  

Ulta Beauty, Inc.(2)

     44,875        13,099,910  
     

 

 

 
   $ 77,201,465  
     

 

 

 

Technology Hardware, Storage & Peripherals — 2.9%

 

Apple, Inc.(1)

     274,048      $ 45,612,549  

HP, Inc.(1)

     1,203,480        26,512,665  
     

 

 

 
   $ 72,125,214  
     

 

 

 

Textiles, Apparel & Luxury Goods — 3.0%

 

adidas AG

     106,771      $ 25,405,209  

LVMH Moet Hennessy Louis Vuitton SE

     75,784        24,311,521  

Samsonite International SA(1)(3)

     3,593,487        10,687,087  

Tapestry, Inc.

     357,887        13,853,806  
     

 

 

 
   $ 74,257,623  
     

 

 

 

Thrifts & Mortgage Finance — 0.6%

 

MGIC Investment Corp.(2)

     1,143,598      $ 14,272,103  
     

 

 

 
   $ 14,272,103  
     

 

 

 

Wireless Telecommunication Services — 1.4%

     

Tele2 AB, Class B

     2,744,575      $ 34,360,157  
     

 

 

 
      $ 34,360,157  
     

 

 

 

Total Common Stocks
(identified cost $2,282,221,686)

      $ 2,519,366,068  
     

 

 

 

 

4

 

 


                                                 

Short-Term Investments — 0.2%

     
Description    Units      Value  

Eaton Vance Cash Reserves Fund, LLC, 2.61%(4)

     5,181,155      $ 5,181,155  
     

 

 

 

Total Short-Term Investments
(identified cost $5,181,155)

      $ 5,181,155  
     

 

 

 

Total Investments — 101.1%
(identified cost $2,287,402,841)

      $ 2,524,547,223  
     

 

 

 

Total Written Call Options — (1.2)%
(premiums received $14,873,073)

      $ (30,271,323
     

 

 

 

Other Assets, Less Liabilities — 0.1%

      $ 1,570,347  
     

 

 

 

Net Assets — 100.0%

      $ 2,495,846,247  
     

 

 

 

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

 

(1)

Security (or a portion thereof) has been pledged as collateral for written options.

 

(2)

Non-income producing security.

 

(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, 2019, the aggregate value of these securities is $10,687,087 or 0.4% 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, 2019. Net income from the investment in Eaton Vance Cash Reserves Fund, LLC for the fiscal year to date ended January 31, 2019 was $148,311.

Country Concentration of Portfolio

 

                                                 
Country    Percentage of
Total Investments
    Value  

United States

     61.0   $ 1,540,813,103  

United Kingdom

     11.5       291,607,620  

Japan

     4.8       120,892,077  

Spain

     3.8       96,488,804  

Sweden

     3.6       90,178,497  

Germany

     2.8       70,633,428  

Netherlands

     2.6       65,980,640  

France

     2.5       62,436,357  

Switzerland

     2.1       53,164,380  

Canada

     2.0       50,743,816  

Denmark

     0.8       20,119,093  

Belgium

     0.7       17,581,153  

Hong Kong

     0.6       15,246,943  

Taiwan

     0.5       12,400,906  

Italy

     0.5       11,801,357  

New Zealand

     0.2       4,459,049  
  

 

 

   

 

 

 

Total Investments

     100.0   $     2,524,547,223  
  

 

 

   

 

 

 

 

5

 

 


                                                                                                                            

Written Call Options — (1.2)%

 

     

Exchange-Traded Options — (1.2)%

 

     
Description   Number of
Contracts
    Notional
Amount
    Exercise
Price
    Expiration
Date
    Value  

Dow Jones Euro Stoxx 50 Index

    1,850     EUR 58,449,455     EUR 3,075       2/1/19     $ (1,725,455

Dow Jones Euro Stoxx 50 Index

    1,890     EUR 59,713,227     EUR 3,100       2/8/19       (1,366,171

Dow Jones Euro Stoxx 50 Index

    1,900     EUR 60,029,170     EUR 3,125       2/15/19       (1,081,432

Dow Jones Euro Stoxx 50 Index

    1,890     EUR 59,713,227     EUR 3,150       2/22/19       (881,926

FTSE 100 Index

    595     GBP 41,464,658     GBP 6,950       2/15/19       (558,796

FTSE 100 Index

    580     GBP 40,419,330     GBP 7,025       2/15/19       (292,462

Nikkei 225 Index

    125     JPY 2,596,686,250     JPY     20,375       2/1/19       (465,497

Nikkei 225 Index

    125     JPY     2,596,686,250     JPY 20,875       2/8/19       (179,753

Nikkei 225 Index

    125     JPY 2,596,686,250     JPY 21,000       2/15/19       (188,225

Nikkei 225 Index

    125     JPY 2,596,686,250     JPY 21,000       2/22/19       (252,056

S&P 500 Index

    225     USD 60,842,250     USD 2,525       2/1/19       (4,037,625

S&P 500 Index

    225     USD 60,842,250     USD 2,575       2/4/19       (2,918,250

S&P 500 Index

    225     USD 60,842,250     USD 2,625       2/6/19       (1,860,750

S&P 500 Index

    225     USD 60,842,250     USD 2,625       2/8/19       (1,887,750

S&P 500 Index

    225     USD 60,842,250     USD 2,610       2/11/19       (2,226,375

S&P 500 Index

    220     USD 59,490,200     USD 2,635       2/13/19       (1,723,700

S&P 500 Index

    220     USD 59,490,200     USD 2,675       2/15/19       (1,078,000

S&P 500 Index

    220     USD 59,490,200     USD 2,650       2/19/19       (1,524,600

S&P 500 Index

    220     USD 59,490,200     USD 2,650       2/20/19       (1,541,100

S&P 500 Index

    220     USD 59,490,200     USD 2,655       2/22/19       (1,511,400

S&P 500 Index

    220     USD 59,490,200     USD 2,670       2/25/19       (1,298,000

S&P 500 Index

    220     USD 59,490,200     USD 2,650       2/27/19       (1,672,000
         

 

 

 

Total

 

  $     (30,271,323
 

 

 

 

Abbreviations:

 

ADR

  -   American Depositary Receipt

Currency Abbreviations:

 

EUR

  -   Euro

GBP

  -   British Pound Sterling

JPY

  -   Japanese Yen

USD

  -   United States Dollar

At January 31, 2019, 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, 2019, 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 $30,271,323.

 

6

 

 


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, 2019, 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

           

Communication Services

   $ 211,173,625      $ 34,360,157      $      $ 245,533,782  

Consumer Discretionary

     138,642,472        175,171,974               313,814,446  

Consumer Staples

     73,257,951        110,971,572               184,229,523  

Energy

     147,575,595        22,154,122               169,729,717  

Financials

     229,644,323        175,703,592               405,347,915  

Health Care

     244,929,162        75,908,361               320,837,523  

Industrials

     171,393,914        136,709,832               308,103,746  

Information Technology

     192,633,911        92,703,178               285,337,089  

Materials

     35,474,209        76,746,688               112,220,897  

Real Estate

     61,361,001                      61,361,001  

Utilities

     82,003,420        30,847,009               112,850,429  

Total Common Stocks

   $ 1,588,089,583      $ 931,276,485    $      $ 2,519,366,068  

Short-Term Investments

   $      $ 5,181,155      $      $ 5,181,155  

Total Investments

   $     1,588,089,583      $     936,457,640      $     —      $     2,524,547,223  
Liability Description                                

Written Call Options

   $ (23,279,550    $ (6,991,773    $      $ (30,271,323

Total

   $ (23,279,550    $ (6,991,773    $      $ (30,271,323

 

*

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.

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.

Item 3. Exhibits

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act is attached hereto.


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/ Edward J. Perkin
  Edward J. Perkin
  President
Date:   March 22, 2019

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/ Edward J. Perkin
  Edward J. Perkin
  President
Date:   March 22, 2019

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   March 22, 2019