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, 2018

Date of Reporting Period

 

 

 


Item 1. Schedule of Investments


Eaton Vance

Tax-Managed Global Diversified Equity Income Fund

July 31, 2018

PORTFOLIO OF INVESTMENTS (Unaudited)

Common Stocks — 100.0%

 

                                                 
Security    Shares      Value  

Aerospace & Defense — 0.8%

     

CAE, Inc.

     1,096,343      $ 22,839,601  
     

 

 

 
      $ 22,839,601  
     

 

 

 

Auto Components — 0.9%

     

Continental AG

     103,949      $ 23,955,663  
     

 

 

 
      $ 23,955,663  
     

 

 

 

Banks — 9.1%

     

Canadian Imperial Bank of Commerce

     356,076      $ 32,496,708  

Danske Bank A/S

     514,273        14,945,040  

ING Groep NV

     1,712,126        26,172,841  

JPMorgan Chase & Co.(1)

     255,978        29,424,671  

KeyCorp(1)

     1,582,350        33,023,645  

Nordea Bank AB

     2,290,455        24,342,633  

Societe Generale SA

     387,053        17,261,779  

Sumitomo Mitsui Financial Group, Inc.

     526,581        20,898,805  

UniCredit SpA

     1,076,040        18,999,788  

Wells Fargo & Co.(1)

     631,973        36,205,733  
     

 

 

 
      $ 253,771,643  
     

 

 

 

Beverages — 2.7%

     

Anheuser-Busch InBev SA/NV

     293,369      $ 29,854,410  

Constellation Brands, Inc., Class A

     72,978        15,342,165  

Diageo PLC(1)

     848,531        31,130,446  
     

 

 

 
      $ 76,327,021  
     

 

 

 

Building Products — 1.2%

     

Assa Abloy AB, Class B(1)

     1,633,864      $ 32,253,269  
     

 

 

 
      $ 32,253,269  
     

 

 

 

Chemicals — 2.4%

     

BASF SE

     343,306      $ 32,908,794  

Ecolab, Inc.(1)

     236,407        33,262,465  
     

 

 

 
      $ 66,171,259  
     

 

 

 

Commercial Services & Supplies — 1.6%

     

Republic Services, Inc.

     335,156      $ 24,292,107  

SECOM Co., Ltd.

     283,486        21,667,546  
     

 

 

 
      $ 45,959,653  
     

 

 

 

Consumer Finance — 2.0%

     

Discover Financial Services

     282,815      $ 20,195,819  

Navient Corp.

     1,559,729        20,604,020  

OneMain Holdings, Inc.(2)

     451,126        14,999,940  
     

 

 

 
      $ 55,799,779  
     

 

 

 

 

1

 

 


                                                 
Security    Shares      Value  

Diversified Financial Services — 1.8%

     

ORIX Corp.(1)

     3,151,352      $ 51,043,989  
     

 

 

 
      $ 51,043,989  
     

 

 

 

Electric Utilities — 2.9%

     

Iberdrola SA

     4,048,170      $ 31,474,089  

NextEra Energy, Inc.(1)

     298,506        50,011,695  
     

 

 

 
      $ 81,485,784  
     

 

 

 

Electrical Equipment — 2.7%

     

Legrand SA

     339,246      $ 24,899,915  

Melrose Industries PLC(1)

     17,418,954        49,289,556  
     

 

 

 
      $ 74,189,471  
     

 

 

 

Electronic Equipment, Instruments & Components — 2.1%

     

CDW Corp.(1)

     363,363      $ 30,555,195  

Keyence Corp.

     53,468        28,282,873  
     

 

 

 
      $ 58,838,068  
     

 

 

 

Energy Equipment & Services — 0.7%

     

Halliburton Co.

     444,711      $ 18,864,641  
     

 

 

 
      $ 18,864,641  
     

 

 

 

Equity Real Estate Investment Trusts (REITs) — 2.5%

     

American Tower Corp.(1)

     336,017      $ 49,811,160  

Equity Residential(1)

     301,513        19,727,996  
     

 

 

 
      $ 69,539,156  
     

 

 

 

Health Care Equipment & Supplies — 3.2%

     

Baxter International, Inc.

     324,873      $ 23,537,049  

Boston Scientific Corp.(1)(2)

     1,197,308        40,241,522  

Danaher Corp.(1)

     259,106        26,579,093  
     

 

 

 
      $ 90,357,664  
     

 

 

 

Health Care Providers & Services — 1.4%

     

Anthem, Inc.

     91,572      $ 23,167,716  

UnitedHealth Group, Inc.

     63,364        16,045,032  
     

 

 

 
      $ 39,212,748  
     

 

 

 

Hotels, Restaurants & Leisure — 1.0%

     

Compass Group PLC

     1,349,193      $ 29,020,235  
     

 

 

 
      $ 29,020,235  
     

 

 

 

Household Products — 1.0%

     

Reckitt Benckiser Group PLC(1)

     307,882      $ 27,447,853  
     

 

 

 
      $ 27,447,853  
     

 

 

 

Insurance — 3.9%

     

AIA Group, Ltd.(1)

     2,436,911      $ 21,331,629  

Aviva PLC(1)

     5,237,728        34,326,589  

Chubb, Ltd.

     183,432        25,629,119  

Prudential PLC(1)

     1,193,334        28,154,963  
     

 

 

 
      $ 109,442,300  
     

 

 

 

Internet & Direct Marketing Retail — 2.7%

     

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

     43,212      $ 76,806,737  
     

 

 

 
      $ 76,806,737  
     

 

 

 

 

2

 

 


                                                 
Security    Shares      Value  

Internet Software & Services — 4.9%

     

Alphabet, Inc., Class C(1)(2)

     88,380      $ 107,581,439  

Facebook, Inc., Class A(1)(2)

     167,251        28,864,177  
     

 

 

 
      $ 136,445,616  
     

 

 

 

IT Services — 1.0%

     

Visa, Inc., Class A

     201,524      $ 27,556,392  
     

 

 

 
      $ 27,556,392  
     

 

 

 

Life Sciences Tools & Services — 1.2%

     

Lonza Group AG

     106,899      $ 32,905,358  
     

 

 

 
      $ 32,905,358  
     

 

 

 

Machinery — 6.4%

     

Atlas Copco AB, Class A

     706,743      $ 20,238,580  

Fortive Corp.

     290,693        23,860,081  

ITT, Inc.

     526,243        29,822,191  

Komatsu, Ltd.

     931,996        27,538,709  

MISUMI Group, Inc.

     633,994        16,197,799  

Parker-Hannifin Corp.

     165,900        28,045,395  

Xylem, Inc.(1)

     423,825        32,448,042  
     

 

 

 
      $ 178,150,797  
     

 

 

 

Media — 1.1%

     

Walt Disney Co. (The)(1)

     272,374      $ 30,930,792  
     

 

 

 
      $ 30,930,792  
     

 

 

 

Metals & Mining — 1.2%

     

Rio Tinto, Ltd.(1)

     544,264      $ 32,893,758  
     

 

 

 
      $ 32,893,758  
     

 

 

 

Multi-Utilities — 1.4%

     

CMS Energy Corp.(1)

     835,709      $ 40,398,173  
     

 

 

 
      $ 40,398,173  
     

 

 

 

Oil, Gas & Consumable Fuels — 6.1%

     

BP PLC(1)

     5,992,208      $ 45,034,077  

ConocoPhillips(1)

     451,529        32,586,848  

Exxon Mobil Corp.(1)

     636,133        51,851,201  

Phillips 66

     237,099        29,243,791  

Seven Generations Energy, Ltd., Class A(2)

     1,085,344        12,398,210  
     

 

 

 
      $ 171,114,127  
     

 

 

 

Personal Products — 1.6%

     

Unilever PLC(1)

     808,204      $ 46,168,613  
     

 

 

 
      $ 46,168,613  
     

 

 

 

Pharmaceuticals — 6.6%

     

Bayer AG

     285,663      $ 31,802,036  

Eli Lilly & Co.(1)

     330,300        32,636,943  

GlaxoSmithKline PLC

     473,760        9,840,111  

Johnson & Johnson(1)

     373,370        49,478,992  

Novo Nordisk A/S, Class B

     606,072        30,150,437  

Zoetis, Inc.(1)

     365,694        31,625,217  
     

 

 

 
      $ 185,533,736  
     

 

 

 

 

3

 

 


                                                 
Security    Shares      Value  

Professional Services — 1.1%

     

Verisk Analytics, Inc.(1)(2)

     282,685      $ 31,270,615  
     

 

 

 
      $ 31,270,615  
     

 

 

 

Road & Rail — 1.5%

     

CSX Corp.(1)

     600,571      $ 42,448,358  
     

 

 

 
      $ 42,448,358  
     

 

 

 

Semiconductors & Semiconductor Equipment — 3.3%

     

ASML Holding NV(1)

     266,646      $ 57,107,103  

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

     855,108        35,239,000  
     

 

 

 
      $ 92,346,103  
     

 

 

 

Software — 3.9%

     

Activision Blizzard, Inc.(1)

     464,639      $ 34,113,796  

Microsoft Corp.(1)

     714,863        75,832,667  
     

 

 

 
      $ 109,946,463  
     

 

 

 

Specialty Retail — 4.0%

     

Home Depot, Inc. (The)(1)

     158,451      $ 31,297,241  

Industria de Diseno Textil SA

     1,047,652        34,332,199  

TJX Cos., Inc. (The)

     309,226        30,075,321  

Ulta Beauty, Inc.(2)

     65,825        16,086,972  
     

 

 

 
      $ 111,791,733  
     

 

 

 

Technology Hardware, Storage & Peripherals — 3.4%

     

Apple, Inc.(1)

     288,867      $ 54,968,501  

HP, Inc.(1)

     1,762,085        40,668,922  
     

 

 

 
      $ 95,637,423  
     

 

 

 

Textiles, Apparel & Luxury Goods — 2.1%

     

adidas AG

     112,544      $ 24,882,736  

LVMH Moet Hennessy Louis Vuitton SE

     67,065        23,371,350  

Samsonite International SA(3)

     2,881,122        10,888,762  
     

 

 

 
      $ 59,142,848  
     

 

 

 

Thrifts & Mortgage Finance — 0.6%

     

MGIC Investment Corp.(2)

     1,413,794      $ 17,644,149  
     

 

 

 
      $ 17,644,149  
     

 

 

 

Tobacco — 1.2%

     

British American Tobacco PLC(1)

     596,644      $ 32,798,862  
     

 

 

 
      $ 32,798,862  
     

 

 

 

Wireless Telecommunication Services — 0.8%

     

Tele2 AB, Class B

     1,567,427      $ 21,032,277  
     

 

 

 
      $ 21,032,277  
     

 

 

 

Total Common Stocks
(identified cost $2,354,035,719)

      $     2,799,482,727  
     

 

 

 

 

4

 

 


                                                 

Short-Term Investments — 0.1%

     
Description    Units      Value  

Eaton Vance Cash Reserves Fund, LLC, 2.16%(4)

     2,466,526      $ 2,466,526  
     

 

 

 

Total Short-Term Investments
(identified cost $2,466,526)

      $ 2,466,526  
     

 

 

 

Total Investments — 100.1%
(identified cost $2,356,502,245)

      $ 2,801,949,253  
     

 

 

 

Total Written Call Options — (0.5)%
(premiums received $9,789,825)

      $ (14,209,751
     

 

 

 

Other Assets, Less Liabilities — 0.4%

      $ 12,294,897  
     

 

 

 

Net Assets — 100.0%

      $     2,800,034,399  
     

 

 

 

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 July 31, 2018, the aggregate value of these securities is $10,888,762 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 July 31, 2018. Net income from the investment in Eaton Vance Cash Reserves Fund, LLC for the fiscal year to date ended July 31, 2018 was $241,460.

Country Concentration of Portfolio

 

                                                 
Country    Percentage of
Total Investments
    Value  

United States

     56.5   $ 1,582,130,262  

United Kingdom

     13.1       366,105,063  

Japan

     5.9       165,629,721  

Germany

     4.0       113,549,229  

Sweden

     3.5       97,866,759  

Netherlands

     3.0       83,279,944  

Canada

     2.4       67,734,519  

Spain

     2.3       65,806,288  

France

     2.3       65,533,044  

Denmark

     1.6       45,095,477  

Taiwan

     1.2       35,239,000  

Switzerland

     1.2       32,905,358  

Belgium

     1.1       29,854,410  

Hong Kong

     0.8       21,331,629  

Italy

     0.7       18,999,788  

Luxembourg

     0.4       10,888,762  
  

 

 

   

 

 

 

Total Investments

     100.0   $     2,801,949,253  
  

 

 

   

 

 

 

 

5

 

 


Written Call Options — (0.5)%

Exchange-Traded Options — (0.5)%

 

                                                                                                                            
Description    Number of
Contracts
    

Notional
Amount

     Exercise
Price
     Expiration
Date
     Value  

Dow Jones Euro Stoxx 50 Index

     1,880      EUR 66,279,212      EUR 3,500        8/3/18      $ (743,641

Dow Jones Euro Stoxx 50 Index

     1,885      EUR 66,455,487      EUR 3,475        8/10/18        (1,335,398

Dow Jones Euro Stoxx 50 Index

     1,910      EUR 67,336,859      EUR 3,475        8/17/18        (1,459,354

Dow Jones Euro Stoxx 50 Index

     1,880      EUR 66,279,212      EUR 3,550        8/24/18        (489,011

FTSE 100 Index

     595      GBP 46,105,122      GBP 7,725        8/17/18        (424,392

FTSE 100 Index

     590      GBP 45,717,684      GBP 7,750        8/17/18        (333,850

Nikkei 225 Index

     130      JPY 2,931,983,600      JPY 22,250        8/3/18        (394,750

Nikkei 225 Index

     130      JPY 2,931,983,600      JPY 22,750        8/10/18        (126,188

Nikkei 225 Index

     130      JPY 2,931,983,600      JPY 23,000        8/17/18        (94,766

Nikkei 225 Index

     130      JPY 2,931,983,600      JPY 22,875        8/24/18        (183,826

S&P 500 Index

     240      USD 67,590,960      USD 2,765        8/1/18        (1,356,000

S&P 500 Index

     240      USD 67,590,960      USD 2,775        8/3/18        (1,164,000

S&P 500 Index

     235      USD 66,182,815      USD 2,800        8/6/18        (632,150

S&P 500 Index

     235      USD 66,182,815      USD 2,810        8/8/18        (507,600

S&P 500 Index

     235      USD 66,182,815      USD 2,815        8/10/18        (468,825

S&P 500 Index

     235      USD 66,182,815      USD 2,800        8/13/18        (750,825

S&P 500 Index

     235      USD 66,182,815      USD 2,815        8/15/18        (542,850

S&P 500 Index

     235      USD 66,182,815      USD 2,800        8/17/18        (833,075

S&P 500 Index

     240      USD 67,590,960      USD 2,800        8/20/18        (867,600

S&P 500 Index

     235      USD 66,182,815      USD 2,815        8/22/18        (659,175

S&P 500 Index

     235      USD 66,182,815      USD 2,850        8/24/18        (270,250

S&P 500 Index

     235      USD 66,182,815      USD 2,825        8/27/18        (572,225
              

 

 

 

Total

               $     (14,209,751
              

 

 

 

Abbreviations:

 

ADR

  -   American Depositary Receipt

Currency Abbreviations:

 

EUR

  -   Euro

GBP

  -   British Pound Sterling

JPY

  -   Japanese Yen

USD

  -   United States Dollar

At July 31, 2018, 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 July 31, 2018, 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 $14,209,751.

 

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 July 31, 2018, 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

   $ 185,197,063      $ 146,450,945      $      $ 331,648,008  

Consumer Staples

     15,342,165        167,400,184               182,742,349  

Energy

     144,944,691        45,034,077               189,978,768  

Financials

     230,223,804        257,478,056               487,701,860  

Health Care

     243,311,564        104,697,942               348,009,506  

Industrials

     235,026,390        192,085,374               427,111,764  

Information Technology

     435,380,089        85,389,976               520,770,065  

Materials

     33,262,465        65,802,552               99,065,017  

Real Estate

     69,539,156                      69,539,156  

Telecommunication Services

            21,032,277               21,032,277  

Utilities

     90,409,868        31,474,089               121,883,957  

Total Common Stocks

   $ 1,682,637,255      $ 1,116,845,472    $      $ 2,799,482,727  

Short-Term Investments

   $      $ 2,466,526      $      $ 2,466,526  

Total Investments

   $     1,682,637,255      $     1,119,311,998      $     —      $     2,801,949,253  
Liability Description                                

Written Call Options

   $ (8,624,575    $ (5,585,176    $      $ (14,209,751

Total

   $ (8,624,575    $ (5,585,176    $      $ (14,209,751

 

*

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.

At July 31, 2018, 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.

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:   September 24, 2018

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:   September 24, 2018

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   September 24, 2018