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, 2017

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Tax-Managed Global Diversified Equity Income Fund

January 31, 2017

PORTFOLIO OF INVESTMENTS (Unaudited)

Common Stocks — 98.0%

 

                                                 
Security    Shares      Value  

Aerospace & Defense — 0.9%

      

CAE, Inc.

      1,672,721      $ 23,755,531  
     

 

 

  
      $ 23,755,531  
     

 

 

  

Air Freight & Logistics — 0.8%

      

C.H. Robinson Worldwide, Inc.

      273,553      $ 20,806,441  
     

 

 

  
      $ 20,806,441  
     

 

 

  

Auto Components — 1.0%

      

Goodyear Tire & Rubber Co. (The)

      846,230      $ 27,409,390  
     

 

 

  
      $ 27,409,390  
     

 

 

  

Banks — 9.4%

      

BNP Paribas SA

      319,289      $ 20,425,494  

ING Groep NV

      1,411,290        20,274,519  

JPMorgan Chase & Co.

      742,620        62,847,931  

Mitsubishi UFJ Financial Group, Inc.

      4,245,636        27,187,022  

PNC Financial Services Group, Inc. (The)

      180,483        21,740,982  

U.S. Bancorp

      429,569        22,616,808  

Wells Fargo & Co.

      1,428,810        80,484,867  
     

 

 

  
      $ 255,577,623  
     

 

 

  

Beverages — 3.4%

      

Anheuser-Busch InBev SA/NV

      272,167      $ 28,419,138  

Constellation Brands, Inc., Class A

      153,765        23,027,846  

Diageo PLC

      1,500,568        41,682,536  
     

 

 

  
      $ 93,129,520  
     

 

 

  

Biotechnology — 3.7%

      

Alexion Pharmaceuticals, Inc.(1)

      112,221      $ 14,665,040  

BioMarin Pharmaceutical, Inc.(1)

      123,816        10,849,996  

Celgene Corp.(1)

      269,273        31,276,059  

Shire PLC

      813,921        45,315,672  
     

 

 

  
      $ 102,106,767  
     

 

 

  

Building Products — 1.1%

      

Assa Abloy AB, Class B

      1,515,943      $ 28,685,380  
     

 

 

  
      $ 28,685,380  
     

 

 

  

Capital Markets — 1.1%

      

Credit Suisse Group AG

      763,834      $ 11,660,019  

Credit Suisse Group AG(2)

      1,204,065        18,380,200  
     

 

 

  
      $ 30,040,219  
     

 

 

  

Chemicals — 1.5%

      

BASF SE

      210,386      $ 20,309,350  

PPG Industries, Inc.

      215,698        21,571,957  
     

 

 

  
      $ 41,881,307  
     

 

 

  

Containers & Packaging — 1.5%

      

Sealed Air Corp.

      844,508      $ 40,958,638  
     

 

 

  
      $ 40,958,638  
     

 

 

  

 

1

 

 

                                                 
Security    Shares      Value  

Diversified Telecommunication Services — 2.1%

      

Nippon Telegraph & Telephone Corp.

      1,284,220      $ 56,726,949  
     

 

 

  
      $ 56,726,949  
     

 

 

  

Electric Utilities — 2.6%

      

American Electric Power Co., Inc.

      415,179      $ 26,596,367  

NextEra Energy, Inc.

      362,262        44,819,054  
     

 

 

  
      $ 71,415,421  
     

 

 

  

Electrical Equipment — 1.9%

      

Melrose Industries PLC

      14,918,302      $ 36,728,319  

Zhuzhou CRRC Times Electric Co., Ltd., Class H

      2,670,346        15,214,377  
     

 

 

  
      $ 51,942,696  
     

 

 

  

Electronic Equipment, Instruments & Components — 2.0%

      

CDW Corp.

      529,305      $ 27,264,500  

Keyence Corp.

      67,917        26,376,724  
     

 

 

  
      $ 53,641,224  
     

 

 

  

Energy Equipment & Services — 1.7%

      

Halliburton Co.

      398,498      $ 22,543,032  

Schlumberger, Ltd.

      282,644        23,660,129  
     

 

 

  
      $ 46,203,161  
     

 

 

  

Equity Real Estate Investment Trusts (REITs) — 2.4%

      

American Tower Corp.

      293,758      $ 30,403,953  

Equity Residential

      583,657        35,468,836  
     

 

 

  
      $ 65,872,789  
     

 

 

  

Food Products — 1.2%

      

Kerry Group PLC, Class A

      265,394      $ 18,660,750  

Pinnacle Foods, Inc.

      273,281        14,535,816  
     

 

 

  
      $ 33,196,566  
     

 

 

  

Health Care Equipment & Supplies — 0.5%

      

Edwards Lifesciences Corp.(1)

      129,321      $ 12,445,853  
     

 

 

  
      $ 12,445,853  
     

 

 

  

Hotels, Restaurants & Leisure — 0.6%

      

Accor SA

      410,377      $ 16,630,934  
     

 

 

  
      $ 16,630,934  
     

 

 

  

Household Durables — 1.9%

      

Newell Brands, Inc.

      1,106,272      $ 52,359,854  
     

 

 

  
      $ 52,359,854  
     

 

 

  

Household Products — 1.1%

      

Reckitt Benckiser Group PLC

      358,282      $ 30,742,573  
     

 

 

  
      $ 30,742,573  
     

 

 

  

Insurance — 6.1%

      

AIA Group, Ltd.

      8,006,409      $ 49,570,484  

Chubb, Ltd.

      392,783        51,647,037  

Prudential PLC

      1,223,765        23,715,025  

St. James’s Place PLC

      2,955,690        39,986,191  
     

 

 

  
      $ 164,918,737  
     

 

 

  

Internet & Direct Marketing Retail — 1.8%

      

Amazon.com, Inc.(1)

      59,215      $ 48,762,368  
     

 

 

  
      $ 48,762,368  
     

 

 

  

 

2

 

 

                                                 
Security    Shares      Value  

Internet Software & Services — 5.8%

      

Alphabet, Inc., Class C(1)

      128,628      $ 102,489,504  

Facebook, Inc., Class A(1)

      426,369        55,564,408  
     

 

 

  
      $ 158,053,912  
     

 

 

  

IT Services — 1.8%

      

Visa, Inc., Class A

      594,860      $ 49,200,871  
     

 

 

  
      $ 49,200,871  
     

 

 

  

Machinery — 3.9%

      

Fortive Corp.

      872,509      $ 48,258,473  

Komatsu, Ltd.

      664,948        15,745,048  

Kubota Corp.

      2,733,930        43,462,005  
     

 

 

  
      $ 107,465,526  
     

 

 

  

Media — 2.7%

      

Interpublic Group of Cos., Inc.

      1,768,086      $ 41,603,064  

Time Warner, Inc.

      338,891        32,821,593  
     

 

 

  
      $ 74,424,657  
     

 

 

  

Metals & Mining — 0.8%

      

Rio Tinto, Ltd.

      450,030      $ 22,829,762  
     

 

 

  
      $ 22,829,762  
     

 

 

  

Multiline Retail — 0.3%

      

Macy’s, Inc.

      310,628      $ 9,175,951  
     

 

 

  
      $ 9,175,951  
     

 

 

  

Oil, Gas & Consumable Fuels — 5.9%

      

Anadarko Petroleum Corp.

      618,693      $ 43,017,724  

Chevron Corp.

      290,608        32,359,201  

Occidental Petroleum Corp.

      525,256        35,596,599  

Royal Dutch Shell PLC, Class B

      1,140,802        32,221,271  

Seven Generations Energy, Ltd., Class A(1)

      885,726        17,704,310  
     

 

 

  
      $ 160,899,105  
     

 

 

  

Personal Products — 1.7%

      

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

      551,829      $ 44,814,033  
     

 

 

  
      $ 44,814,033  
     

 

 

  

Pharmaceuticals — 7.7%

      

Allergan PLC(1)

      183,686      $ 40,207,029  

Eli Lilly & Co.

      486,666        37,487,882  

Johnson & Johnson

      444,542        50,344,381  

Novo Nordisk A/S, Class B

      737,786        26,663,389  

Roche Holding AG PC

      139,334        33,014,941  

Zoetis, Inc.

      421,290        23,145,673  
     

 

 

  
      $ 210,863,295  
     

 

 

  

Professional Services — 1.6%

      

Verisk Analytics, Inc.(1)

      536,097      $ 44,303,056  
     

 

 

  
      $ 44,303,056  
     

 

 

  

Road & Rail — 2.7%

      

CSX Corp.

      375,774      $ 17,432,156  

Union Pacific Corp.

      515,903        54,984,942  
     

 

 

  
      $ 72,417,098  
     

 

 

  

Semiconductors & Semiconductor Equipment — 2.1%

      

ASML Holding NV

      332,831      $ 40,413,585  

Sumco Corp.

      1,121,535        17,534,224  
     

 

 

  
      $ 57,947,809  
     

 

 

  

 

3

 

 

                                                 
Security    Shares      Value  

Specialty Retail — 3.3%

      

Advance Auto Parts, Inc.

      108,227      $ 17,775,202  

Industria de Diseno Textil SA

      1,004,481        33,223,731  

Lowe’s Cos., Inc.

      547,911        40,041,336  
     

 

 

  
      $ 91,040,269  
     

 

 

  

Technology Hardware, Storage & Peripherals — 2.0%

      

Apple, Inc.

      445,127      $ 54,016,161  
     

 

 

  
      $ 54,016,161  
     

 

 

  

Textiles, Apparel & Luxury Goods — 2.4%

      

LVMH Moet Hennessy Louis Vuitton SE

      119,144      $ 24,010,266  

NIKE, Inc., Class B

      303,396        16,049,648  

Pandora A/S

      194,389        25,474,452  
     

 

 

  
      $ 65,534,366  
     

 

 

  

Tobacco — 0.9%

      

Altria Group, Inc.

      350,287      $ 24,933,429  
     

 

 

  
      $ 24,933,429  
     

 

 

  

Trading Companies & Distributors — 1.2%

      

Brenntag AG

      564,575      $ 32,845,386  
     

 

 

  
      $ 32,845,386  
     

 

 

  

Wireless Telecommunication Services — 0.9%

      

Vodafone Group PLC

      10,473,622      $ 25,655,448  
     

 

 

  
      $ 25,655,448  
     

 

 

  

Total Common Stocks
(identified cost $2,455,120,784)

       $ 2,675,630,075  
     

 

 

  

Short-Term Investments — 2.0%

      
Description    Units      Value  

Eaton Vance Cash Reserves Fund, LLC, 0.90%(3)

      56,043,340      $ 56,048,945  
     

 

 

  

Total Short-Term Investments
(identified cost $56,048,945)

       $ 56,048,945  
     

 

 

  

Total Investments — 100.0%
(identified cost $2,511,169,729)

       $ 2,731,679,020  
     

 

 

  

Call Options Written — (0.2)%

      

Exchange-Traded Options — (0.2)%

      

 

                                                                                                   
Description    Number of
Contracts		      Strike
Price		      Expiration
Date		      Value  

S&P 500 Index

      280      $ 2,275        2/1/17      $ (201,600 ) 

S&P 500 Index

      280        2,275        2/3/17        (287,000 ) 

S&P 500 Index

      280        2,280        2/6/17        (243,600 ) 

S&P 500 Index

      280        2,275        2/8/17        (387,800 ) 

S&P 500 Index

      280        2,280        2/10/17        (347,200 ) 

S&P 500 Index

      280        2,275        2/13/17        (456,400 ) 

S&P 500 Index

      280        2,280        2/15/17        (421,400 ) 

S&P 500 Index

      285        2,275        2/17/17        (550,050 ) 

S&P 500 Index

      280        2,270        2/21/17        (666,400 ) 

 

4

 

 

                                                                                                   
Description    Number of
Contracts		      Strike
Price		      Expiration
Date		      Value  

S&P 500 Index

      280      $ 2,290        2/22/17      $ (366,800 ) 

S&P 500 Index

      280        2,300        2/24/17        (270,200 ) 

S&P 500 Index

      280        2,280        2/27/17        (560,000 ) 
           

 

 

  
            $ (4,758,450 ) 
           

 

 

  

 

                                                                                                                            

Over-the-Counter Options — (0.0)%(4)

 

Description    Counterparty    Number of
Contracts		     

Strike

Price

      Expiration
Date		      Value  

Dow Jones Euro Stoxx 50 Index

    Citibank, N.A.      20,800      EUR 3,325        2/3/17      $ (7,343 ) 

Dow Jones Euro Stoxx 50 Index

    Deutsche Bank AG      21,000      EUR 3,325        2/17/17        (267,493 ) 

Dow Jones Euro Stoxx 50 Index

    Morgan Stanley & Co. International PLC      21,100      EUR 3,350        2/10/17        (57,520 ) 

Dow Jones Euro Stoxx 50 Index

    Société Générale      20,900      EUR 3,350        2/24/17        (263,264 ) 

FTSE 100 Index

    Barclays Bank PLC      6,350      GBP 7,225        2/17/17        (193,880 ) 

FTSE 100 Index

    Deutsche Bank AG      6,750      GBP 7,250        2/17/17        (155,919 ) 

Nikkei 225 Index

    Bank of America, N.A.      150,000      JPY 19,625        2/3/17        (4,075 ) 

Nikkei 225 Index

    Deutsche Bank AG      150,000      JPY 19,375        2/10/17        (123,884 ) 

Nikkei 225 Index

    Deutsche Bank AG      150,000      JPY 19,750        2/24/17        (130,108 ) 

Nikkei 225 Index

    Société Générale      150,000      JPY 19,625        2/17/17        (113,567 ) 
              

 

 

  
   $ (1,317,053 ) 
              

 

 

  

Total Call Options Written
(premiums received $11,701,587)

 

          $ (6,075,503 ) 
              

 

 

  

Other Assets, Less Liabilities — 0.2%

 

       $ 4,735,107  
              

 

 

  

Net Assets — 100.0%

 

       $ 2,730,338,624  
              

 

 

  

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 January 31, 2017. Net income from the investment in Eaton Vance Cash Reserves Fund, LLC for the fiscal year to date ended January 31, 2017 was $67,470.

 

(4) Amount is less than (0.05)%.

Country Concentration of Portfolio

 

                                                 
Country    Percentage of
Total Investments		     Value  

United States

      63.7 %    $     1,740,434,015  

United Kingdom

      9.8       266,655,526  

Japan

      6.9       187,031,972  

Netherlands

      3.4       92,909,375  

Switzerland

      2.3       63,055,160  

France

      2.2       61,066,694  

 

5

 

 

                                                 
Country    Percentage of
Total Investments		     Value  

Germany

      1.9 %     $ 53,154,736  

Denmark

      1.9       52,137,841  

Hong Kong

      1.8       49,570,484  

Canada

      1.5       41,459,841  

Spain

      1.2       33,223,731  

Sweden

      1.1       28,685,380  

Belgium

      1.0       28,419,138  

Ireland

      0.7       18,660,750  

China

      0.6       15,214,377  
  

 

 

    

 

 

  

Total Investments

      100.0 %    $     2,731,679,020  
  

 

 

    

 

 

  

Abbreviations:

 

PC

   -   Participation Certificate

Currency Abbreviations:

 

EUR

   -   Euro

GBP

   -   British Pound Sterling

JPY

   -   Japanese Yen

Written options activity for the fiscal year to date ended January 31, 2017 was as follows:

 

     Number of
Contracts		      Premiums
Received		  
Outstanding, beginning of period      735,605      $ 11,420,795  
Options written      2,310,385        39,213,760  
Options terminated in closing purchase transactions      (1,934,645 )       (27,175,298 ) 
Options exercised      (1,190 )       (2,280,808 ) 
Options expired      (409,890 )       (9,476,862 ) 
  

 

 

     

 

 

  

Outstanding, end of period

      700,265      $ 11,701,587  
  

 

 

     

 

 

  

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, 2017, 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, 2017, 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 $6,075,503.

The cost and unrealized appreciation (depreciation) of investments of the Fund at January 31, 2017, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     2,514,613,625  
  

 

 

  

Gross unrealized appreciation

    $ 315,315,459  

Gross unrealized depreciation

      (98,250,064 ) 
  

 

 

  

Net unrealized appreciation

    $ 217,065,395  
  

 

 

  

 

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, 2017, 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

    $ 285,998,406      $ 99,339,383      $ —      $ 385,337,789  

Consumer Staples

      107,311,124        119,504,997        —        226,816,121  

Energy

      174,880,995        32,221,271        —        207,102,266  

Financials

      239,337,625        211,198,954        —        450,536,579  

Health Care

      220,421,913        104,994,002        —        325,415,915  

Industrials

      209,540,599        172,680,515        —        382,221,114  

Information Technology

      288,535,444        84,324,533        —        372,859,977  

Materials

      62,530,595        43,139,112        —        105,669,707  

Real Estate

      65,872,789        —        —        65,872,789  

Telecommunication Services

      —        82,382,397        —        82,382,397  

Utilities

      71,415,421        —        —        71,415,421  

Total Common Stocks

    $ 1,725,844,911      $ 949,785,164 *     $ —      $ 2,675,630,075  

Short-Term Investments

    $ —      $ 56,048,945      $ —      $ 56,048,945  

Total Investments

    $     1,725,844,911      $     1,005,834,109      $     —      $     2,731,679,020  
Liability Description                                

Call Options Written

    $ (4,758,450 )     $ (1,317,053 )     $ —      $ (6,075,503 ) 

Total

    $ (4,758,450 )     $ (1,317,053 )     $ —      $ (6,075,503 ) 

 

* 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, 2016 whose fair value was determined using Level 3 inputs. At January 31, 2017, the value of investments transferred between Level 1 and Level 2 during the fiscal year to date then ended was not significant.

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/ Edward J. Perkin
  Edward J. Perkin
  President
Date:   March 24, 2017

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 24, 2017

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   March 24, 2017