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, 2017

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Tax-Managed Global Diversified Equity Income Fund

July 31, 2017

PORTFOLIO OF INVESTMENTS (Unaudited)

Common Stocks — 99.6%

 

                                                 
Security    Shares      Value  

Aerospace & Defense — 1.0%

      

CAE, Inc.

      1,685,019      $ 28,557,811  
     

 

 

  
      $ 28,557,811  
     

 

 

  

Air Freight & Logistics — 0.8%

      

C.H. Robinson Worldwide, Inc.

      364,218      $ 23,892,701  
     

 

 

  
      $ 23,892,701  
     

 

 

  

Auto Components — 1.3%

      

Goodyear Tire & Rubber Co. (The)

      1,214,958      $ 38,283,327  
     

 

 

  
      $ 38,283,327  
     

 

 

  

Automobiles — 0.7%

      

Peugeot SA

      981,970      $ 21,122,887  
     

 

 

  
      $ 21,122,887  
     

 

 

  

Banks — 9.5%

      

BNP Paribas SA

      647,583      $ 50,184,870  

ING Groep NV

      2,369,027        44,262,510  

JPMorgan Chase & Co.

      406,711        37,336,070  

KBC Group NV

      389,422        32,195,085  

Mitsubishi UFJ Financial Group, Inc.

      6,750,610        42,826,612  

Wells Fargo & Co.

      1,196,136        64,519,576  
     

 

 

  
      $ 271,324,723  
     

 

 

  

Beverages — 3.1%

      

Anheuser-Busch InBev SA/NV

      257,679      $ 31,084,456  

Constellation Brands, Inc., Class A

      145,579        28,147,700  

Diageo PLC(1)

      893,963        28,872,286  
     

 

 

  
      $ 88,104,442  
     

 

 

  

Biotechnology — 3.1%

      

BioMarin Pharmaceutical, Inc.(2)

      117,224      $ 10,284,062  

Celgene Corp.(2)

      254,940        34,521,425  

Shire PLC(1)

      770,593        43,078,002  
     

 

 

  
      $ 87,883,489  
     

 

 

  

Building Products — 1.4%

      

Assa Abloy AB, Class B

      1,814,604      $ 38,874,153  
     

 

 

  
      $ 38,874,153  
     

 

 

  

Capital Markets — 1.2%

      

Credit Suisse Group AG

      1,859,165      $ 28,578,490  

Credit Suisse Group AG(3)

      342,728        5,268,305  
     

 

 

  
      $ 33,846,795  
     

 

 

  

 

1

 

 

                                                 
Security    Shares      Value  

Chemicals — 2.5%

      

Arkema SA

      253,702      $ 28,880,263  

Ecolab, Inc.

      205,341        27,037,249  

Novozymes A/S, Class B

      350,807        16,198,668  
     

 

 

  
      $ 72,116,180  
     

 

 

  

Commercial Services & Supplies — 1.1%

      

Brambles, Ltd.

      4,438,151      $ 32,814,684  
     

 

 

  
      $ 32,814,684  
     

 

 

  

Consumer Finance — 0.8%

      

Discover Financial Services

      228,663      $ 13,934,723  

OneMain Holdings, Inc.(2)

      281,215        7,519,689  
     

 

 

  
      $ 21,454,412  
     

 

 

  

Containers & Packaging — 1.5%

      

Sealed Air Corp.

      981,430      $ 42,702,019  
     

 

 

  
      $ 42,702,019  
     

 

 

  

Diversified Financial Services — 0.5%

      

ORIX Corp.

      906,965      $ 14,392,102  
     

 

 

  
      $ 14,392,102  
     

 

 

  

Diversified Telecommunication Services — 2.0%

      

Nippon Telegraph & Telephone Corp.(1)

      1,161,222      $ 56,828,101  
     

 

 

  
      $ 56,828,101  
     

 

 

  

Electric Utilities — 2.4%

      

American Electric Power Co., Inc.

      393,076      $ 27,727,581  

NextEra Energy, Inc.

      274,489        40,100,098  
     

 

 

  
      $ 67,827,679  
     

 

 

  

Electrical Equipment — 3.1%

      

Legrand SA

      367,977      $ 25,418,968  

Melrose Industries PLC(1)

      14,124,148        43,304,904  

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

      4,048,366        19,259,898  
     

 

 

  
      $ 87,983,770  
     

 

 

  

Electronic Equipment, Instruments & Components — 2.5%

      

CDW Corp.

      670,595      $ 42,535,841  

Keyence Corp.

      64,264        29,684,451  
     

 

 

  
      $ 72,220,292  
     

 

 

  

Energy Equipment & Services — 1.1%

      

Halliburton Co.

      764,254      $ 32,434,940  
     

 

 

  
      $ 32,434,940  
     

 

 

  

Equity Real Estate Investment Trusts (REITs) — 3.6%

      

American Tower Corp.

      278,121      $ 37,916,236  

Equity Residential

      552,587        37,609,071  

Simon Property Group, Inc.

      166,816        26,440,336  
     

 

 

  
      $ 101,965,643  
     

 

 

  

Food Products — 0.5%

      

Pinnacle Foods, Inc.

      258,732      $ 15,363,506  
     

 

 

  
      $ 15,363,506  
     

 

 

  

 

2

 

 

                                                 
Security    Shares      Value  

Health Care Equipment & Supplies — 0.5%

      

ConvaTec Group PLC(2)(4)

      3,391,338      $ 13,899,354  
     

 

 

  
      $ 13,899,354  
     

 

 

  

Household Durables — 1.7%

      

Newell Brands, Inc.

      902,044      $ 47,555,760  
     

 

 

  
      $ 47,555,760  
     

 

 

  

Household Products — 1.2%

      

Reckitt Benckiser Group PLC(1)

      339,211      $ 32,980,570  
     

 

 

  
      $ 32,980,570  
     

 

 

  

Insurance — 6.1%

      

AIA Group, Ltd.(1)

      4,862,616      $ 38,246,930  

Chubb, Ltd.

      371,874        54,464,666  

Prudential PLC(1)

      1,832,260        44,708,041  

St. James’s Place PLC(1)

      2,327,646        37,387,473  
     

 

 

  
      $ 174,807,110  
     

 

 

  

Internet & Direct Marketing Retail — 1.8%

      

Amazon.com, Inc.(2)

      51,953      $ 51,318,134  
     

 

 

  
      $ 51,318,134  
     

 

 

  

Internet Software & Services — 5.3%

      

Alphabet, Inc., Class C(2)

      103,881      $ 96,661,270  

Facebook, Inc., Class A(2)

      326,176        55,205,288  
     

 

 

  
      $ 151,866,558  
     

 

 

  

IT Services — 1.7%

      

Visa, Inc., Class A

      495,690      $ 49,350,896  
     

 

 

  
      $ 49,350,896  
     

 

 

  

Machinery — 2.4%

      

Fortive Corp.

      521,484      $ 33,760,874  

Komatsu, Ltd.

      1,243,235        33,340,495  
     

 

 

  
      $ 67,101,369  
     

 

 

  

Media — 2.7%

      

Interpublic Group of Cos., Inc.

      2,629,528      $ 56,824,100  

Toho Co., Ltd.

      576,111        20,761,552  
     

 

 

  
      $ 77,585,652  
     

 

 

  

Metals & Mining — 1.1%

      

Rio Tinto, Ltd.

      573,404      $ 30,227,263  
     

 

 

  
      $ 30,227,263  
     

 

 

  

Oil, Gas & Consumable Fuels — 5.1%

      

ConocoPhillips

      562,509      $ 25,521,033  

Exxon Mobil Corp.

      324,651        25,985,066  

Pioneer Natural Resources Co.

      150,656        24,571,994  

Royal Dutch Shell PLC, Class B

      1,781,278        50,744,526  

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

      1,143,455        19,874,610  
     

 

 

  
      $ 146,697,229  
     

 

 

  

 

3

 

 

                                                 
Security    Shares      Value  

Personal Products — 2.8%

      

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

      314,506      $ 31,132,949  

Unilever PLC(1)

      880,479        50,216,107  
     

 

 

  
      $ 81,349,056  
     

 

 

  

Pharmaceuticals — 8.8%

      

Allergan PLC

      173,908      $ 43,882,206  

Eli Lilly & Co.

      460,758        38,086,256  

Johnson & Johnson

      582,483        77,307,144  

Novo Nordisk A/S, Class B

      638,521        27,155,925  

Roche Holding AG PC

      131,917        33,397,332  

Zoetis, Inc.

      496,308        31,029,176  
     

 

 

  
      $ 250,858,039  
     

 

 

  

Professional Services — 1.6%

      

Verisk Analytics, Inc.(2)

      507,557      $ 44,289,424  
     

 

 

  
      $ 44,289,424  
     

 

 

  

Road & Rail — 1.1%

      

CSX Corp.

      628,025      $ 30,986,753  
     

 

 

  
      $ 30,986,753  
     

 

 

  

Semiconductors & Semiconductor Equipment — 3.6%

      

ASML Holding NV(1)

      315,115      $ 47,519,682  

Renesas Electronics Corp.(2)

      203,292        1,907,195  

Sumco Corp.

      1,622,710        26,262,106  

Taiwan Semiconductor Manufacturing Co., Ltd. ADR

      790,487        28,425,912  
     

 

 

  
      $ 104,114,895  
     

 

 

  

Specialty Retail — 2.8%

      

Advance Auto Parts, Inc.

      102,465      $ 11,477,105  

Industria de Diseno Textil SA

      764,457        30,344,652  

Lowe’s Cos., Inc.

      478,707        37,051,922  
     

 

 

  
      $ 78,873,679  
     

 

 

  

Technology Hardware, Storage & Peripherals — 1.7%

      

Apple, Inc.

      192,046      $ 28,563,002  

HP, Inc.

      970,582        18,538,116  
     

 

 

  
      $ 47,101,118  
     

 

 

  

Textiles, Apparel & Luxury Goods — 2.5%

      

Lululemon Athletica, Inc.(2)

      255,714      $ 15,762,211  

LVMH Moet Hennessy Louis Vuitton SE

      101,706        25,547,380  

Pandora A/S

      271,423        31,237,686  
     

 

 

  
      $ 72,547,277  
     

 

 

  

Trading Companies & Distributors — 1.4%

      

Brenntag AG

      226,322      $ 12,825,029  

MISUMI Group, Inc.

      1,104,907        27,401,480  
     

 

 

  
      $ 40,226,509  
     

 

 

  

Total Common Stocks
(identified cost $2,457,062,926)

       $ 2,843,730,301  
     

 

 

  

 

 

4

 

 

                                                 

Short-Term Investments — 0.7%

      
Description    Units      Value  

Eaton Vance Cash Reserves Fund, LLC, 1.28%(5)

      20,168,658      $ 20,172,692  
     

 

 

  

Total Short-Term Investments
(identified cost $20,172,692)

       $ 20,172,692  
     

 

 

  

Total Investments — 100.3%
(identified cost $2,477,235,618)

       $ 2,863,902,993  
     

 

 

  

 

                                                                                                   

Call Options Written — (0.3)%

 

Exchange-Traded Options — (0.3)%

 

Description   

Number of

Contracts

     

Strike
Price

     

Expiration

Date

      Value  

Dow Jones Euro Stoxx 50 Index

      1,935        EUR            3,500        8/4/17      $ (41,163 ) 

Dow Jones Euro Stoxx 50 Index

      1,925        EUR            3,575        8/11/17        (21,643 ) 

Dow Jones Euro Stoxx 50 Index

      1,930        EUR            3,525        8/18/17        (180,680 ) 

Dow Jones Euro Stoxx 50 Index

      1,925        EUR            3,500        8/25/17        (431,897 ) 

FTSE 100 Index

      630        GBP            7,475        8/18/17        (72,289 ) 

FTSE 100 Index

      625        GBP            7,500        8/18/17        (50,269 ) 

Nikkei 225 Index

      150        JPY            20,250        8/4/17        (10,706 ) 

Nikkei 225 Index

      150        JPY            20,375        8/10/17        (23,968 ) 

Nikkei 225 Index

      150        JPY            20,250        8/18/17        (85,716 ) 

S&P 500 Index

      275        USD            2,450        8/2/17        (617,375 ) 

S&P 500 Index

      275        USD            2,435        8/4/17        (1,028,500 ) 

S&P 500 Index

      275        USD            2,440        8/7/17        (925,375 ) 

S&P 500 Index

      275        USD            2,455        8/9/17        (594,000 ) 

S&P 500 Index

      275        USD            2,460        8/11/17        (511,500 ) 

S&P 500 Index

      275        USD            2,470        8/14/17        (350,625 ) 

S&P 500 Index

      275        USD            2,470        8/16/17        (376,750 ) 

S&P 500 Index

      275        USD            2,470        8/18/17        (418,000 ) 

S&P 500 Index

      275        USD            2,470        8/21/17        (438,625 ) 

S&P 500 Index

      270        USD            2,480        8/23/17        (310,500 ) 

S&P 500 Index

      270        USD            2,485        8/25/17        (270,000 ) 

S&P 500 Index

      275        USD            2,475        8/28/17        (437,250 ) 
           

 

 

  

Total Call Options Written
(premiums received $7,897,160)

             $ (7,196,831 ) 
           

 

 

  

Other Assets, Less Liabilities — (0.0)%(6)

             $ (374,074 ) 
           

 

 

  

Net Assets — 100.0%

             $ 2,856,332,088  
           

 

 

  

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 and/or segregated as collateral in connection with open foreign exchange-traded options.

 

(2) Non-income producing security.

 

5

 

 

(3) 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.

 

(4) 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, 2017, the aggregate value of these securities is $13,899,354 or 0.5% of the Fund’s net assets.

 

(5) 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, 2017. Net income from the investment in Eaton Vance Cash Reserves Fund, LLC for the fiscal year to date ended July 31, 2017 was $274,107.

 

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

Country Concentration of Portfolio

 

                                                 
Country   

Percentage of

Total Investments

     Value  

United States

      54.7 %    $ 1,566,230,099  

United Kingdom

      11.3       324,674,000  

Japan

      8.9       253,404,094  

France

      5.3       151,154,368  

Netherlands

      5.0       142,526,718  

Denmark

      2.6       74,592,279  

Switzerland

      2.3       67,244,127  

Belgium

      2.2       63,279,541  

Canada

      1.7       48,432,421  

Sweden

      1.4       38,874,153  

Hong Kong

      1.3       38,246,930  

Australia

      1.1       32,814,684  

Spain

      1.1       30,344,652  

China

      0.7       19,259,898  

Germany

      0.4       12,825,029  
  

 

 

    

 

 

  

Total Investments

      100.0 %    $     2,863,902,993  
  

 

 

    

 

 

  

Abbreviations:

 

ADR

   -   American Depositary Receipt

PC

   -   Participation Certificate

Currency Abbreviations:

 

EUR

   -   Euro

GBP

   -   British Pound Sterling

JPY

   -   Japanese Yen

USD

   -   United States Dollar

 

6

 

 

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

 

     Number of
Contracts		      Premiums
Received		  

Outstanding, beginning of period

      735,605      $ 11,420,795  

Options written

      2,395,200        108,429,106  

Options terminated in closing purchase transactions

      (1,966,550 )       (57,886,623 ) 

Options exercised

      (30,180 )       (20,229,301 ) 

Options expired

      (1,121,365 )       (33,836,817 ) 
  

 

 

     

 

 

  

Outstanding, end of period

      12,710      $ 7,897,160  
  

 

 

     

 

 

  

All of the securities of the Fund, unless otherwise pledged and/or segregated, are subject to segregation to satisfy the requirements of the escrow agent with respect to U.S. exchange-traded options. At July 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 July 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 $7,196,831.

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

 

Aggregate cost

    $     2,480,679,514  
  

 

 

  

Gross unrealized appreciation

    $ 439,643,503  

Gross unrealized depreciation

      (56,420,024 ) 
  

 

 

  

Net unrealized appreciation

    $ 383,223,479  
  

 

 

  

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.

 

7

 

 

At July 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

    $ 258,272,559      $ 129,014,157      $ —      $ 387,286,716  

Consumer Staples

      74,644,155        143,153,419        —        217,797,574  

Energy

      128,387,643        50,744,526        —        179,132,169  

Financials

      177,774,724        338,050,418        —        515,825,142  

Health Care

      235,110,269        117,530,613        —        352,640,882  

Industrials

      161,487,563        233,239,611        —        394,727,174  

Information Technology

      319,280,325        105,373,434        —        424,653,759  

Materials

      69,739,268        75,306,194        —        145,045,462  

Real Estate

      101,965,643        —        —        101,965,643  

Telecommunication Services

      —        56,828,101        —        56,828,101  

Utilities

      67,827,679        —        —        67,827,679  

Total Common Stocks

    $     1,594,489,828      $     1,249,240,473 *     $     —      $     2,843,730,301  

Short-Term Investments

    $ —      $ 20,172,692      $ —      $ 20,172,692  

Total Investments

    $ 1,594,489,828      $ 1,269,413,165      $ —      $ 2,863,902,993  
Liability Description                                

Call Options Written

    $ (6,278,500 )     $ (918,331 )     $ —      $ (7,196,831 ) 

Total

    $ (6,278,500 )     $ (918,331 )     $ —      $ (7,196,831 ) 

 

* 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 July 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.

 

8

 

 

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 25, 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:   September 25, 2017

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   September 25, 2017