Eaton Vance Tax-Managed Global Diversified Equity
 
 
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, 2010
Date of Reporting Period
 
 

 

 

Item 1. Schedule of Investments

 

 

Eaton Vance Tax-Managed Global Diversified Equity Income Fund as of July 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
Common Stocks — 97.9%
 
                 
Security   Shares     Value  
Aerospace & Defense — 0.7%
               
General Dynamics Corp.
    203,955     $ 12,492,244  
Lockheed Martin Corp. 
    163,861       12,314,154  
                 
            $ 24,806,398  
                 
Air Freight & Logistics — 0.2%
               
FedEx Corp. 
    97,287     $ 8,031,042  
                 
            $ 8,031,042  
                 
Automobiles — 0.6%
               
Bayerische Motoren Werke AG
    376,368     $ 20,258,300  
                 
            $ 20,258,300  
                 
Beverages — 2.2%
               
Coca-Cola Co. (The)
    265,712     $ 14,643,388  
Diageo PLC
    2,350,832       40,797,272  
PepsiCo, Inc. 
    319,596       20,744,977  
                 
            $ 76,185,637  
                 
Biotechnology — 0.7%
               
Amgen, Inc.(1)
    297,451     $ 16,220,003  
Celgene Corp.(1)
    121,457       6,698,354  
                 
            $ 22,918,357  
                 
Capital Markets — 4.1%
               
Credit Suisse Group AG
    793,293     $ 35,957,909  
Deutsche Bank AG
    294,968       20,596,487  
Goldman Sachs Group, Inc. 
    164,877       24,866,749  
Northern Trust Corp. 
    269,331       12,655,864  
State Street Corp. 
    271,930       10,583,516  
UBS AG(1)
    2,062,352       34,998,113  
                 
            $ 139,658,638  
                 
Commercial Banks — 10.0%
               
Banco Santander Central Hispano SA
    4,175,310     $ 54,241,906  
Barclays PLC
    4,381,398       22,692,535  
BNP Paribas
    339,884       23,233,646  
DnB NOR ASA
    1,280,565       15,845,967  
HSBC Holdings PLC
    8,797,949       89,468,391  
Intesa Sanpaolo SpA
    6,045,235       19,952,550  
Itau Unibanco Holding SA ADR
    2,099,663       47,011,455  
KeyCorp
    1,342,936       11,361,238  
PNC Financial Services Group, Inc. 
    299,849       17,808,032  
U.S. Bancorp
    441,934       10,562,223  
Wells Fargo & Co. 
    975,008       27,036,972  
                 
            $ 339,214,915  
                 
Commercial Services & Supplies — 0.2%
               
Waste Management, Inc. 
    245,110     $ 8,321,484  
                 
            $ 8,321,484  
                 
Communications Equipment — 2.2%
               
Cisco Systems, Inc.(1)
    1,268,849     $ 29,272,346  
Nokia Oyj ADR
    1,460,446       13,888,842  
QUALCOMM, Inc. 
    258,523       9,844,556  
Telefonaktiebolaget LM Ericsson, Class B
    1,947,639       21,490,562  
                 
            $ 74,496,306  
                 
 
1

 

                 
Security   Shares     Value  
Computers & Peripherals — 3.0%
               
Apple, Inc.(1)
    187,338     $ 48,192,700  
Hewlett-Packard Co. 
    459,694       21,164,312  
International Business Machines Corp. 
    240,344       30,860,170  
                 
            $ 100,217,182  
                 
Consumer Finance — 0.4%
               
American Express Co. 
    321,494     $ 14,351,492  
                 
            $ 14,351,492  
                 
Diversified Financial Services — 1.9%
               
Bank of America Corp. 
    1,055,548     $ 14,819,894  
Citigroup, Inc.(1)
    2,710,842       11,114,452  
JPMorgan Chase & Co. 
    961,289       38,720,721  
                 
            $ 64,655,067  
                 
Diversified Telecommunication Services — 2.4%
               
AT&T, Inc. 
    869,675     $ 22,559,369  
France Telecom SA
    986,946       20,642,567  
Frontier Communications Corp. 
    131,701       1,006,196  
Koninklijke KPN NV
    1,624,605       22,575,294  
Verizon Communications, Inc. 
    548,664       15,944,176  
                 
            $ 82,727,602  
                 
Electric Utilities — 2.0%
               
American Electric Power Co., Inc. 
    347,864     $ 12,516,147  
E.ON AG
    1,160,448       34,709,153  
Iberdrola SA
    2,894,551       20,367,300  
                 
            $ 67,592,600  
                 
Electrical Equipment — 1.8%
               
ABB, Ltd.(1)
    2,311,866     $ 46,666,814  
Emerson Electric Co. 
    270,614       13,406,217  
                 
            $ 60,073,031  
                 
Electronic Equipment, Instruments & Components — 0.5%
               
Corning, Inc. 
    997,947     $ 18,082,800  
                 
            $ 18,082,800  
                 
Energy Equipment & Services — 0.7%
               
Halliburton Co. 
    402,779     $ 12,035,037  
Schlumberger, Ltd. 
    222,046       13,247,264  
                 
            $ 25,282,301  
                 
Food & Staples Retailing — 2.4%
               
Carrefour SA
    488,254     $ 22,447,415  
CVS Caremark Corp. 
    308,214       9,459,088  
Tesco PLC
    3,897,124       23,898,558  
Wal-Mart Stores, Inc. 
    513,603       26,291,338  
                 
            $ 82,096,399  
                 
Food Products — 4.9%
               
Danone
    328,022     $ 18,387,259  
Kellogg Co. 
    142,438       7,129,022  
Nestle SA
    2,152,579       106,395,411  
Unilever NV
    1,206,623       35,489,770  
                 
            $ 167,401,462  
                 
Health Care Equipment & Supplies — 1.0%
               
Covidien PLC
    371,721     $ 13,872,627  
Varian Medical Systems, Inc.(1)
    167,505       9,246,276  
Zimmer Holdings, Inc.(1)
    177,527       9,407,156  
                 
            $ 32,526,059  
                 
 
2

 

                 
Security   Shares     Value  
Health Care Providers & Services — 1.0%
               
AmerisourceBergen Corp. 
    368,733     $ 11,050,928  
Cardinal Health, Inc. 
    411,571       13,281,396  
Fresenius Medical Care AG & Co. KGaA ADR
    191,285       10,459,464  
                 
            $ 34,791,788  
                 
Hotels, Restaurants & Leisure — 0.9%
               
Carnival Corp. 
    249,324     $ 8,646,556  
McDonald’s Corp. 
    329,616       22,984,124  
                 
            $ 31,630,680  
                 
Household Products — 1.9%
               
Colgate-Palmolive Co. 
    244,058     $ 19,275,701  
Procter & Gamble Co. 
    367,982       22,505,779  
Reckitt Benckiser Group PLC
    440,647       21,605,411  
                 
            $ 63,386,891  
                 
Industrial Conglomerates — 3.8%
               
General Electric Co. 
    2,216,489     $ 35,729,803  
Philips Electronics NV
    1,084,049       33,699,774  
Siemens AG
    617,533       60,407,277  
                 
            $ 129,836,854  
                 
Insurance — 3.9%
               
Allianz SE
    232,013     $ 26,943,615  
Berkshire Hathaway, Inc., Class B(1)
    162,360       12,683,563  
Lincoln National Corp. 
    402,666       10,485,423  
MetLife, Inc. 
    284,691       11,974,104  
Prudential Financial, Inc. 
    328,505       18,820,051  
Prudential PLC
    4,297,107       37,394,968  
Zurich Financial Services AG
    61,190       14,280,337  
                 
            $ 132,582,061  
                 
Internet & Catalog Retail — 0.5%
               
Amazon.com, Inc.(1)
    145,895     $ 17,199,562  
                 
            $ 17,199,562  
                 
Internet Software & Services — 0.9%
               
Google, Inc., Class A(1)
    59,403     $ 28,801,545  
                 
            $ 28,801,545  
                 
IT Services — 0.4%
               
MasterCard, Inc., Class A
    58,390     $ 12,264,236  
                 
            $ 12,264,236  
                 
Machinery — 1.5%
               
Danaher Corp. 
    441,106     $ 16,942,881  
Deere & Co. 
    237,510       15,837,167  
Illinois Tool Works, Inc. 
    193,725       8,427,038  
PACCAR, Inc. 
    192,695       8,829,285  
                 
            $ 50,036,371  
                 
Media — 0.6%
               
Comcast Corp., Class A
    365,236     $ 7,111,145  
Walt Disney Co. (The)
    356,250       12,002,062  
                 
            $ 19,113,207  
                 
Metals & Mining — 4.2%
               
ArcelorMittal
    331,565     $ 10,150,779  
BHP Billiton, Ltd. ADR
    890,910       64,350,429  
Freeport-McMoRan Copper & Gold, Inc. 
    50,097       3,583,939  
Goldcorp, Inc. 
    1,500,629       58,734,619  
United States Steel Corp. 
    132,945       5,893,452  
                 
            $ 142,713,218  
                 
 
3

 

                 
Security   Shares     Value  
Multi-Utilities — 3.2%
               
GDF Suez
    1,272,732     $ 42,188,924  
National Grid PLC
    1,068,798       8,561,436  
PG&E Corp. 
    255,083       11,325,685  
Public Service Enterprise Group, Inc. 
    518,906       17,072,007  
RWE AG
    309,441       21,855,343  
Sempra Energy
    132,805       6,607,049  
                 
            $ 107,610,444  
                 
Multiline Retail — 0.4%
               
Target Corp. 
    283,168     $ 14,532,182  
                 
            $ 14,532,182  
                 
Office Electronics — 0.2%
               
Xerox Corp. 
    672,366     $ 6,548,845  
                 
            $ 6,548,845  
                 
Oil, Gas & Consumable Fuels — 10.6%
               
Apache Corp. 
    160,546     $ 15,344,987  
Chevron Corp. 
    442,675       33,736,262  
ENI SpA
    3,177,174       64,924,845  
Exxon Mobil Corp. 
    282,069       16,833,878  
Hess Corp. 
    392,440       21,030,859  
Occidental Petroleum Corp. 
    180,148       14,038,934  
Peabody Energy Corp. 
    196,195       8,858,204  
Royal Dutch Shell PLC, Class B
    3,610,495       95,386,649  
Southwestern Energy Co.(1)
    359,935       13,119,631  
Statoil ASA
    1,498,091       30,299,263  
Total SA
    922,884       46,588,598  
                 
            $ 360,162,110  
                 
Pharmaceuticals — 9.2%
               
Abbott Laboratories
    334,096     $ 16,397,432  
AstraZeneca PLC
    665,477       33,366,949  
Bayer AG
    281,104       16,181,188  
Bristol-Myers Squibb Co. 
    479,020       11,937,178  
GlaxoSmithKline PLC
    3,024,642       52,809,113  
Johnson & Johnson
    221,635       12,874,777  
Merck & Co., Inc. 
    488,020       16,817,169  
Novartis AG
    1,638,910       79,672,599  
Pfizer, Inc. 
    1,326,670       19,900,050  
Sanofi-Aventis
    644,489       37,465,742  
Teva Pharmaceutical Industries, Ltd. ADR(1)
    264,114       12,901,969  
                 
            $ 310,324,166  
                 
Real Estate Investment Trusts (REITs) — 0.6%
               
AvalonBay Communities, Inc. 
    81,961     $ 8,613,281  
Boston Properties, Inc. 
    124,513       10,197,615  
                 
            $ 18,810,896  
                 
Road & Rail — 0.5%
               
CSX Corp. 
    323,485     $ 17,054,129  
                 
            $ 17,054,129  
                 
Semiconductors & Semiconductor Equipment — 0.4%
               
Intel Corp. 
    590,272     $ 12,159,603  
                 
            $ 12,159,603  
                 
Software — 2.2%
               
Microsoft Corp. 
    1,380,441     $ 35,629,182  
Oracle Corp. 
    1,036,532       24,503,617  
SAP AG
    306,172       13,987,384  
                 
            $ 74,120,183  
                 
 
4

 

                 
Security   Shares     Value  
Specialty Retail — 2.7%
               
Best Buy Co., Inc. 
    629,772     $ 21,827,898  
Gap, Inc. (The)
    429,067       7,770,403  
Hennes & Mauritz AB
    620,734       19,566,857  
Home Depot, Inc. 
    566,744       16,157,871  
Staples, Inc. 
    649,346       13,201,204  
TJX Companies, Inc. (The)
    290,365       12,055,955  
                 
            $ 90,580,188  
                 
Textiles, Apparel & Luxury Goods — 1.6%
               
LVMH Moet Hennessy Louis Vuitton SA
    296,996     $ 36,191,657  
NIKE, Inc., Class B
    250,971       18,481,505  
                 
            $ 54,673,162  
                 
Tobacco — 1.6%
               
British American Tobacco PLC
    758,056     $ 26,080,784  
Imperial Tobacco Group PLC
    492,388       13,932,925  
Philip Morris International, Inc. 
    261,544       13,349,206  
                 
            $ 53,362,915  
                 
Wireless Telecommunication Services — 3.2%
               
American Tower Corp., Class A(1)
    191,051     $ 8,834,198  
Rogers Communications, Inc., Class B
    660,201       22,922,179  
Vodafone Group PLC
    32,683,935       76,208,801  
                 
            $ 107,965,178  
                 
                 
Total Common Stocks
(identified cost $3,422,376,341)
          $ 3,319,157,486  
                 
 
Short-Term Investments — 2.6%
 
                 
    Interest
 		       
Description   (000’s omitted)     Value  
Eaton Vance Cash Reserves Fund, LLC, 0.25%(2)
  $ 89,180     $ 89,180,043  
                 
                 
Total Short-Term Investments
(identified cost $89,180,043)
          $ 89,180,043  
                 
                 
Total Investments — 100.5%
(identified cost $3,511,556,384)
          $ 3,408,337,529  
                 
 
Call Options Written — (1.2)%
 
                             
    Number of
 		  Strike
 		    Expiration
 		     
Description   Contracts   Price     Date   Value  
Dow Jones Euro Stoxx 50 Index
    71,600     EUR   2,700     8/20/10   $ (8,238,883 )
Dow Jones Euro Stoxx 50 Index
    71,500     EUR   2,750     8/20/10     (5,376,213 )
FTSE 100 Index
    19,500     GBP   5,200     8/20/10     (3,725,357 )
FTSE 100 Index
    19,700     GBP   5,275     8/20/10     (2,403,427 )
S&P 500 Index
    4,360     $ 1,095     8/21/10     (10,311,400 )
S&P 500 Index
    4,185     $ 1,100     8/21/10     (8,642,025 )
SMI Index
    9,250     CHF   6,300     8/20/10     (458,637 )
SMI Index
    9,400     CHF   6,350     8/20/10     (314,025 )
                         
         
Total Call Options Written
(premiums received $39,685,501)
 
$ 		(39,469,967 )
         
         
Other Assets, Less Liabilities — 0.7%
  $ 22,749,708  
         
         
Net Assets — 100.0%
  $ 3,391,617,270  
         
 
5

 

             
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
         
ADR
  -   American Depositary Receipt
         
CHF
  -   Swiss Franc
         
EUR
  -   Euro
         
GBP
  -   British Pound Sterling
         
(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, 2010. Net income allocated from the investment in Eaton Vance Cash Reserves Fund, LLC and Cash Management Portfolio, an affiliated investment company, for the fiscal year to date ended July 31, 2010 was $53,119 and $0, respectively.
 
Country Concentration of Portfolio
 
                 
    Percentage
 		       
Country   of Net Assets     Value  
United States
    43.4 %   $ 1,471,437,728  
United Kingdom
    16.0       542,203,792  
Switzerland
    9.4       317,971,183  
France
    7.3       247,145,808  
Germany
    6.6       225,398,211  
Netherlands
    3.1       105,012,102  
Italy
    2.5       84,877,395  
Canada
    2.4       81,656,798  
Spain
    2.2       74,609,206  
Australia
    1.9       64,350,429  
Brazil
    1.4       47,011,455  
Norway
    1.4       46,145,230  
Sweden
    1.2       41,057,419  
Finland
    0.4       13,888,842  
Ireland
    0.4       13,872,627  
Israel
    0.4       12,901,969  
Luxembourg
    0.3       10,150,779  
Panama
    0.2       8,646,556  
                 
Total Investments
    100.5 %   $ 3,408,337,529  
                 
 
The cost and unrealized appreciation (depreciation) of investments of the Fund at July 31, 2010, as determined on a federal income tax basis, were as follows:
 
         
Aggregate cost
  $ 3,512,142,479  
         
Gross unrealized appreciation
  $ 354,842,039  
Gross unrealized depreciation
    (458,646,989 )
         
Net unrealized depreciation
  $ (103,804,950 )
         
 
Written call options activity for the fiscal year to date ended July 31, 2010 was as follows:
 
                 
    Number of
 		    Premiums
 		 
    Contracts     Received  
Outstanding, beginning of period
    120,589     $ 42,754,859  
Options written
    1,643,916       299,509,005  
Options terminated in closing purchase transactions
    (1,207,381 )     (258,227,641 )
Options expired
    (347,629 )     (44,350,722 )
                 
Outstanding, end of period
    209,495     $ 39,685,501  
                 
 
All of the assets of the Fund are subject to segregation to satisfy the requirements of the escrow agent. At July 31, 2010, 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 generally intends to write 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, 2010, the aggregate fair value of 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 $39,469,967.
 
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)
 
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, 2010, the inputs used in valuing the Fund’s investments, which are carried at value, were as follows:
 
                                 
    Quoted Prices in
 		                   
    Active Markets for
 		    Significant Other
 		    Significant
 		       
    Identical Assets     Observable Inputs     Unobservable Inputs        
       
Asset Description   (Level 1)     (Level 2)     (Level 3)     Total  
   
Common Stocks
                               
Consumer Discretionary
  $ 171,970,467     $ 76,016,814     $ —     $ 247,987,281  
Consumer Staples
    133,398,498       309,034,806       —       442,433,304  
Energy
    148,245,055       237,199,356       —       385,444,411  
Financials
    402,906,664       306,366,405       —       709,273,069  
Health Care
    181,064,779       219,495,591       —       400,560,370  
Industrials
    157,385,444       140,773,865       —       298,159,309  
Information Technology
    291,212,754       35,477,946       —       326,690,700  
Materials
    132,562,439       10,150,779       —       142,713,218  
Telecommunication Services
    71,266,118       119,426,662       —       190,692,780  
Utilities
    47,520,888       127,682,156       —       175,203,044  
 
 
Total Common Stocks
  $ 1,737,533,106     $ 1,581,624,380 *   $ —     $ 3,319,157,486  
 
 
Short-Term Investments
  $ —     $ 89,180,043     $ —     $ 89,180,043  
 
 
Total Investments
  $ 1,737,533,106     $ 1,670,804,423     $ —     $ 3,408,337,529  
 
 
                                 
Liability Description                        
   
Call Options Written
  $ (39,469,967 )   $ —     $ —     $ (39,469,967 )
 
 
Total
  $ (39,469,967 )   $ —     $ —     $ (39,469,967 )
 
 
 
* 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, 2009 whose fair value was determined using Level 3 inputs.
 
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/ Duncan W. Richardson
 
Duncan W. Richardson 		   
 
  President    
 
        
Date:
  September 24, 2010    
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/ Duncan W. Richardson
 
Duncan W. Richardson 		   
 
  President    
 
        
Date:
  September 24, 2010    
 
        
By:
  /s/ Barbara E. Campbell
 
Barbara E. Campbell 		   
 
  Treasurer    
 
        
Date:
  September 24, 2010