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, 2014

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Tax-Managed Global Diversified Equity Income Fund

July 31, 2014

PORTFOLIO OF INVESTMENTS (Unaudited)

Common Stocks — 98.1%

 

                                                 
Security    Shares      Value  

Aerospace & Defense — 0.7%

      

Boeing Co. (The)

      200,000       $ 24,096,000   
     

 

 

  
   $ 24,096,000   
     

 

 

  

Air Freight & Logistics — 1.7%

      

C.H. Robinson Worldwide, Inc.

      825,000       $ 55,654,500   
     

 

 

  
   $ 55,654,500   
     

 

 

  

Automobiles — 1.2%

      

Honda Motor Co., Ltd.

      592,012       $ 20,608,565   

Toyota Motor Corp.

      295,800         17,464,035   
     

 

 

  
   $ 38,072,600   
     

 

 

  

Banks — 12.0%

      

Banco Bilbao Vizcaya Argentaria SA

      2,080,913       $ 25,580,029   

Bank of America Corp.

      2,000,000         30,500,000   

Barclays PLC

      4,964,865         18,820,254   

BNP Paribas SA

      306,859         20,361,151   

Citigroup, Inc.

      730,605         35,733,891   

Intesa Sanpaolo SpA

      8,458,897         25,119,729   

JPMorgan Chase & Co.

      588,357         33,930,548   

Lloyds Banking Group PLC(1)

      14,613,013         18,217,664   

Mitsubishi UFJ Financial Group, Inc.

      3,468,000         20,451,837   

Mizuho Financial Group, Inc.

      8,093,086         15,712,496   

PNC Financial Services Group, Inc. (The)

      226,338         18,686,465   

Regions Financial Corp.

      1,885,257         19,116,506   

Skandinaviska Enskilda Banken AB, Class A

      1,033,171         13,831,027   

Societe Generale

      392,796         19,719,317   

SunTrust Banks, Inc.

      443,155         16,862,048   

Unione di Banche Italiane SCpA

      3,078,011         25,340,993   

Westpac Banking Corp.

      998,239         31,744,041   
     

 

 

  
   $ 389,727,996   
     

 

 

  

Beverages — 3.2%

      

Anheuser-Busch InBev NV

      437,927       $ 47,266,646   

Constellation Brands, Inc., Class A(1)

      250,000         20,815,000   

Diageo PLC

      1,202,355         36,109,515   
     

 

 

  
   $ 104,191,161   
     

 

 

  

Biotechnology — 2.7%

      

Biogen Idec, Inc.(1)

      70,000       $ 23,407,300   

Celgene Corp.(1)

      193,246         16,841,389   

Gilead Sciences, Inc.(1)

      526,855         48,233,575   
     

 

 

  
   $ 88,482,264   
     

 

 

  

Capital Markets — 0.9%

      

Charles Schwab Corp. (The)

      368,741       $ 10,232,563   

Credit Suisse Group AG

      316,574         8,587,941   

UBS AG

      575,021         9,879,739   
     

 

 

  
   $ 28,700,243   
     

 

 

  

Chemicals — 2.8%

  

Arkema SA

      120,841       $ 11,204,154   

BASF SE

      118,062         12,218,701   

LyondellBasell Industries NV, Class A

      335,000         35,593,750   

Monsanto Co.

      135,960         15,375,716   

PPG Industries, Inc.

      87,149         17,286,876   
     

 

 

  
   $ 91,679,197   
     

 

 

  

 

1

 

 

                                                 
Security    Shares      Value  

Commercial Services & Supplies — 1.0%

      

Brambles, Ltd.

      3,800,000       $ 32,896,992   
     

 

 

  
   $ 32,896,992   
     

 

 

  

Communications Equipment — 1.8%

      

QUALCOMM, Inc.

      260,000       $ 19,162,000   

Telefonaktiebolaget LM Ericsson, Class B

      3,050,000         37,978,224   
     

 

 

  
   $ 57,140,224   
     

 

 

  

Consumer Finance — 2.4%

      

American Express Co.

      183,523       $ 16,150,024   

Discover Financial Services

      1,038,043         63,382,906   
     

 

 

  
   $ 79,532,930   
     

 

 

  

Containers & Packaging — 0.5%

      

Amcor, Ltd.

      1,666,273       $ 15,948,373   
     

 

 

  
   $ 15,948,373   
     

 

 

  

Diversified Consumer Services — 0.9%

      

Sotheby’s

      736,540       $ 29,203,811   
     

 

 

  
   $ 29,203,811   
     

 

 

  

Diversified Telecommunication Services — 2.2%

      

Nippon Telegraph & Telephone Corp.

      295,636       $ 19,631,488   

Verizon Communications, Inc.

      1,025,000         51,680,500   
     

 

 

  
   $ 71,311,988   
     

 

 

  

Electric Utilities — 0.9%

      

NextEra Energy, Inc.

      295,897       $ 27,781,769   
     

 

 

  
   $ 27,781,769   
     

 

 

  

Electrical Equipment — 3.2%

      

Emerson Electric Co.

      635,000       $ 40,417,750   

Mitsubishi Electric Corp.

      1,400,000         18,482,147   

Nidec Corp.

      250,000         16,281,666   

Rockwell Automation, Inc.

      259,000         28,919,940   
     

 

 

  
   $ 104,101,503   
     

 

 

  

Electronic Equipment, Instruments & Components — 1.1%

  

Corning, Inc.

      1,000,000       $ 19,650,000   

Yaskawa Electric Corp.

      1,150,000         14,987,668   
     

 

 

  
   $ 34,637,668   
     

 

 

  

Energy Equipment & Services — 0.9%

      

FMC Technologies, Inc.(1)

      493,733       $ 30,018,966   
     

 

 

  
   $ 30,018,966   
     

 

 

  

Food & Staples Retailing — 0.9%

      

Costco Wholesale Corp.

      242,720       $ 28,529,309   
     

 

 

  
   $ 28,529,309   
     

 

 

  

Food Products — 2.2%

      

Hershey Co. (The)

      506,000       $ 44,603,900   

Mondelez International, Inc., Class A

      750,000         27,000,000   
     

 

 

  
   $ 71,603,900   
     

 

 

  

Health Care Equipment & Supplies — 1.7%

      

Abbott Laboratories

      409,858       $ 17,263,219   

Medtronic, Inc.

      630,000         38,896,200   
     

 

 

  
   $ 56,159,419   
     

 

 

  

Hotels, Restaurants & Leisure — 0.7%

      

Accor SA

      196,801       $ 9,530,603   

Compass Group PLC

      815,632         13,290,360   
     

 

 

  
   $ 22,820,963   
     

 

 

  

Household Durables — 0.2%

      

Mohawk Industries, Inc.(1)

      57,957       $ 7,231,295   
     

 

 

  
   $ 7,231,295   
     

 

 

  

 

2

 

 

                                                 
Security    Shares      Value  

Household Products — 1.5%

      

Reckitt Benckiser Group PLC

      298,394       $ 26,341,451   

Svenska Cellulosa AB SCA, Class B

      850,000         20,932,126   
     

 

 

  
   $ 47,273,577   
     

 

 

  

Industrial Conglomerates — 3.7%

      

Danaher Corp.

      610,000       $ 45,066,800   

Koninklijke Philips NV

      950,000         29,279,538   

Siemens AG

      360,000         44,458,604   
     

 

 

  
   $ 118,804,942   
     

 

 

  

Insurance — 5.1%

      

ACE, Ltd.

      150,027       $ 15,017,703   

Aflac, Inc.

      208,972         12,483,987   

Allianz SE

      110,944         18,470,629   

AXA SA

      1,356,740         31,170,629   

MetLife, Inc.

      426,991         22,459,727   

Prudential PLC

      1,559,981         35,854,374   

Swiss Re AG

      349,389         29,700,686   
     

 

 

  
   $ 165,157,735   
     

 

 

  

Internet & Catalog Retail — 0.9%

  

Amazon.com, Inc.(1)

      90,000       $ 28,169,100   
     

 

 

  
   $ 28,169,100   
     

 

 

  

Internet Software & Services — 4.8%

      

eBay, Inc.(1)

      600,000       $ 31,680,000   

Facebook, Inc., Class A(1)

      500,000         36,325,000   

Google, Inc., Class C(1)

      152,500         87,169,000   
     

 

 

  
   $ 155,174,000   
     

 

 

  

IT Services — 1.4%

      

Fiserv, Inc.(1)

      380,000       $ 23,434,600   

Visa, Inc., Class A

      110,000         23,211,100   
     

 

 

  
   $ 46,645,700   
     

 

 

  

Machinery — 1.5%

      

Caterpillar, Inc.

      500,000       $ 50,375,000   
     

 

 

  
   $ 50,375,000   
     

 

 

  

Media — 3.0%

      

ITV PLC

      9,725,135       $ 34,136,864   

Lions Gate Entertainment Corp.

      299,545         9,225,986   

Live Nation Entertainment, Inc.(1)

      555,071         12,883,198   

Walt Disney Co. (The)

      500,000         42,940,000   
     

 

 

  
   $ 99,186,048   
     

 

 

  

Metals & Mining — 0.4%

      

Freeport-McMoRan, Inc.

      309,847       $ 11,532,505   
     

 

 

  
   $ 11,532,505   
     

 

 

  

Multi-Utilities — 1.9%

      

National Grid PLC

      2,372,997       $ 33,799,142   

Sempra Energy

      286,014         28,518,456   
     

 

 

  
   $ 62,317,598   
     

 

 

  

Multiline Retail — 1.5%

      

Dollar General Corp.(1)

      305,554       $ 16,875,747   

Macy’s, Inc.

      278,906         16,117,978   

Marks & Spencer Group PLC

      2,079,541         15,052,756   
     

 

 

  
   $ 48,046,481   
     

 

 

  

 

3

 

 

                                                 
Security    Shares      Value  

Oil, Gas & Consumable Fuels — 6.5%

  

Chevron Corp.

      400,000       $ 51,696,000   

Devon Energy Corp.

      588,467         44,429,258   

Occidental Petroleum Corp.

      300,000         29,313,000   

Range Resources Corp.

      137,087         10,362,406   

Statoil ASA

      1,086,460         31,045,129   

Total SA

      692,739         44,677,974   
     

 

 

  
   $ 211,523,767   
     

 

 

  

Paper & Forest Products — 0.4%

      

International Paper Co.

      281,263       $ 13,359,993   
     

 

 

  
   $ 13,359,993   
     

 

 

  

Pharmaceuticals — 5.9%

      

AstraZeneca PLC

      162,650       $ 11,876,120   

Bayer AG

      276,021         36,408,961   

Chugai Pharmaceutical Co., Ltd.

      542,743         18,064,062   

Merck & Co., Inc.

      600,000         34,044,000   

Novartis AG

      321,537         27,973,267   

Roche Holding AG PC

      168,001         48,754,827   

Takeda Pharmaceutical Co., Ltd.

      339,004         15,462,806   
     

 

 

  
   $ 192,584,043   
     

 

 

  

Real Estate Investment Trusts (REITs) — 1.3%

      

AvalonBay Communities, Inc.

      170,000       $ 25,173,600   

Goodman Group

      3,565,652         17,480,439   
     

 

 

  
   $ 42,654,039   
     

 

 

  

Semiconductors & Semiconductor Equipment — 1.1%

      

NXP Semiconductors NV(1)

      600,000       $ 37,410,000   
     

 

 

  
   $ 37,410,000   
     

 

 

  

Software — 0.6%

      

Microsoft Corp.

      430,000       $ 18,558,800   
     

 

 

  
   $ 18,558,800   
     

 

 

  

Specialty Retail — 2.0%

      

AutoNation, Inc.(1)

      325,865       $ 17,375,122   

Home Depot, Inc. (The)

      304,736         24,637,905   

Industria de Diseno Textil SA

      429,780         12,555,149   

Kingfisher PLC

      2,121,895         10,717,427   
     

 

 

  
   $ 65,285,603   
     

 

 

  

Technology Hardware, Storage & Peripherals — 2.6%

      

Apple, Inc.

      625,000       $ 59,731,250   

Lenovo Group, Ltd.

      17,000,000         23,232,969   
     

 

 

  
   $ 82,964,219   
     

 

 

  

Textiles, Apparel & Luxury Goods — 1.7%

  

Adidas AG

      149,169       $ 11,811,870   

Compagnie Financiere Richemont SA, Class A

      127,051         12,056,151   

NIKE, Inc., Class B

      219,014         16,892,550   

Pandora A/S

      231,626         15,850,383   
     

 

 

  
   $ 56,610,954   
     

 

 

  

Tobacco — 2.1%

      

Altria Group, Inc.

      450,000       $ 18,270,000   

British American Tobacco PLC

      830,000         48,623,365   
     

 

 

  
   $ 66,893,365   
     

 

 

  

 

4

 

 

                                                 
Security    Shares     Value  

Trading Companies & Distributors — 0.0%(2)

     

Veritiv Corp.(1)

      — (4)    $ 12   
    

 

 

  
  $ 12   
    

 

 

  

Wireless Telecommunication Services — 2.4%

     

Vodafone Group PLC

      23,658,276      $ 78,784,218   
    

 

 

  
  $ 78,784,218   
    

 

 

  

Total Common Stocks
(identified cost $3,342,951,185)

   

   $ 3,188,834,770   
    

 

 

  

Short-Term Investments — 1.2%

     
Description   

Interest

(000’s omitted)

     Value  

Eaton Vance Cash Reserves Fund, LLC, 0.14%(3)

    $ 38,372      $ 38,372,203   
    

 

 

  

Total Short-Term Investments
(identified cost $38,372,203)

   

   $ 38,372,203   
    

 

 

  

Total Investments — 99.3%
(identified cost $3,381,323,388)

   

   $   3,227,206,973   
    

 

 

  

Call Options Written — (0.1)%

Exchange-Traded Options — (0.0)%(2)

                                                                                                   
Description    Number of
Contracts		      Strike
Price		      Expiration
Date		      Value  

S&P 500 Index

      1,330       $ 1,985         8/1/14       $ (9,975 ) 

S&P 500 Index

      1,020         1,970         8/8/14         (275,400 ) 

S&P 500 Index

      1,020         1,980         8/16/14         (321,300 ) 

S&P 500 Index

      1,340         2,005         8/22/14         (194,300 ) 
           

 

 

  
            $   (800,975 ) 
           

 

 

  

Over-the-Counter Options — (0.1)%

 

Description    Counterparty    Number of
Contracts		     

Strike

Price

      Expiration
Date		      Value  
Dow Jones Euro Stoxx 50 Index    Citibank NA      25,250       EUR     3,225         8/15/14       $ (201,175 ) 
Dow Jones Euro Stoxx 50 Index    Deutsche Bank AG      57,300       EUR     3,200         8/15/14         (836,331 ) 
FTSE 100 Index    Citibank NA      5,050       GBP     6,825         8/15/14         (110,837 ) 
FTSE 100 Index    Deutsche Bank AG      6,950       GBP     6,725         8/15/14         (574,950 ) 
Nikkei 225 Index    Morgan Stanley & Co. International PLC      425,000       JPY     15,375         8/8/14         (970,933 ) 
Nikkei 225 Index    UBS AG      400,000       JPY     15,250         8/8/14         (1,331,843 ) 
                

 

 

  
                 $ (4,026,069 ) 
                

 

 

  

Total Call Options Written
(premiums received $11,405,910)

    

            $ (4,827,044 ) 
                

 

 

  

Other Assets, Less Liabilities — 0.8%

               $ 27,553,013   
                

 

 

  

Net Assets — 100.0%

               $   3,249,932,942   
                

 

 

  

 

5

 

 

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) Amount is less than 0.05% or (0.05)%, as applicable.

 

(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 July 31, 2014. Net income allocated from the investment in Eaton Vance Cash Reserves Fund, LLC for the fiscal year to date ended July 31, 2014 was $39,858.

 

(4) Represents less than one share.

Country Concentration of Portfolio

 

                                                 
Country   

Percentage of

Total Investments

     Value  

United States

      55.0 %    $ 1,777,348,249   

United Kingdom

      11.8        381,623,510   

Japan

      5.5        177,146,770   

Switzerland

      4.7        151,970,314   

France

      4.2        136,663,828   

Germany

      3.8        123,368,765   

Netherlands

      3.2        102,283,288   

Australia

      3.0        98,069,845   

Sweden

      2.3        72,741,377   

Italy

      1.6        50,460,722   

Belgium

      1.5        47,266,646   

Spain

      1.2        38,135,178   

Norway

      1.0        31,045,129   

China

      0.7        23,232,969   

Denmark

      0.5        15,850,383   
  

 

 

    

 

 

  

Total Investments

      100.0 %    $     3,227,206,973   
  

 

 

    

 

 

  

The cost and unrealized appreciation (depreciation) of investments of the Fund at July 31, 2014, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     3,382,150,756   
  

 

 

  

Gross unrealized appreciation

    $ 34,815,823   

Gross unrealized depreciation

      (189,759,606 ) 
  

 

 

  

Net unrealized depreciation

    $ (154,943,783 ) 
  

 

 

  

Written options activity for the fiscal year to date ended July 31, 2014 was as follows:

 

     Number of
Contracts		     Premiums
Received		  

Outstanding, beginning of period

      138,600      $ 17,146,821   

Options written

      4,420,800        124,550,405   

Options terminated in closing purchase transactions

      (2,964,375 )      (100,263,197 ) 

Options expired

      (670,765 )      (30,028,119 ) 
  

 

 

    

 

 

  

Outstanding, end of period

      924,260      $ 11,405,910   
  

 

 

    

 

 

  

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, 2014, the Fund had sufficient cash and/or securities to cover commitments under these contracts.

 

6

 

 

In the normal course of pursuing its investment objectives, the Fund is subject to the following risks:

Equity Price Risk: 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.

Foreign Exchange Risk: Because the Fund holds foreign currency denominated investments, the value of these investments and related receivables and payables may change due to future changes in foreign currency exchange rates. To hedge against this risk, the Fund entered into forward foreign currency exchange contracts during the fiscal year to date ended July 31, 2014.

At July 31, 2014, 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 $4,827,044.

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, 2014, 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

    $ 221,552,692      $ 173,074,163      $ —       $ 394,626,855   

Consumer Staples

      139,218,209        179,273,103        —         318,491,312   

Energy

      165,819,630        75,723,103        —         241,542,733   

Financials

      319,729,969        386,042,974        —         705,772,943   

Health Care

      178,685,683        158,540,043        —         337,225,726   

Industrials

      244,530,002        141,398,947        —         385,928,949   

Information Technology

      356,331,749        76,198,862        —         432,530,611   

Materials

      93,148,840        39,371,228        —         132,520,068   

Telecommunication Services

      51,680,501        98,415,705        —         150,096,206   

Utilities

      56,300,225        33,799,142        —         90,099,367   

Total Common Stocks

    $ 1,826,997,500      $ 1,361,837,270 *    $ —       $ 3,188,834,770   

Short-Term Investments

    $ —      $ 38,372,203      $ —       $ 38,372,203   

Total Investments

    $     1,826,997,500      $     1,400,209,473      $     —       $     3,227,206,973   
Liability Description                              

Call Options Written

    $ (800,975 )    $ (4,026,069 )    $ —       $ (4,827,044 ) 

Total

    $ (800,975 )    $ (4,026,069 )    $ —       $ (4,827,044 ) 

 

* 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, 2013 whose fair value was determined using Level 3 inputs. At July 31, 2014, 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:   September 22, 2014

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:   September 22, 2014

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   September 22, 2014