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, 2012

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Tax-Managed Global Diversified Equity Income Fund

July 31, 2012

PORTFOLIO OF INVESTMENTS (Unaudited)

Common Stocks — 97.3%

 

                                                 
Security    Shares      Value  

Aerospace & Defense — 1.0%

      

Boeing Co. (The)

      331,683       $ 24,514,691   

United Technologies Corp.

      79,775         5,938,451   
     

 

 

  
      $ 30,453,142   
     

 

 

  

Automobiles — 0.8%

      

Bayerische Motoren Werke AG

      318,781       $ 23,724,720   
     

 

 

  
      $ 23,724,720   
     

 

 

  

Beverages — 4.2%

      

Anheuser-Busch InBev NV

      588,659       $ 46,576,468   

Beam, Inc.

      115,755         7,278,674   

Coca-Cola Co. (The)

      462,840         37,397,472   

Diageo PLC

      1,404,807         37,550,140   
     

 

 

  
      $ 128,802,754   
     

 

 

  

Biotechnology — 1.4%

      

Celgene Corp.(1)

      303,040       $ 20,746,118   

Gilead Sciences, Inc.(1)

      405,633         22,038,041   
     

 

 

  
      $ 42,784,159   
     

 

 

  

Capital Markets — 1.4%

      

Deutsche Bank AG

      419,020       $ 12,721,715   

Goldman Sachs Group, Inc. (The)

      109,610         11,059,649   

UBS AG(1)

      1,855,579         19,669,137   
     

 

 

  
      $ 43,450,501   
     

 

 

  

Chemicals — 2.9%

      

Air Liquide SA

      121,512       $ 13,589,427   

BASF SE

      558,480         40,771,558   

Celanese Corp., Series A

      205,688         7,842,883   

Monsanto Co.

      311,375         26,659,928   
     

 

 

  
      $ 88,863,796   
     

 

 

  

Commercial Banks — 6.6%

      

Banco Bilbao Vizcaya Argentaria SA

      1,909,373       $ 12,447,531   

Banco Santander SA

      2,973,509         18,004,184   

Bank of Nova Scotia (The)

      615,957         32,146,796   

Barclays PLC

      5,432,401         14,148,162   

BNP Paribas

      243,619         8,999,206   

HSBC Holdings PLC

      3,147,683         26,296,095   

Intesa Sanpaolo SpA

      6,626,290         8,376,035   

Itau Unibanco Holding SA ADR, PFC Shares

      1,534,867         24,266,247   

PNC Financial Services Group, Inc.

      198,697         11,742,993   

Royal Bank of Scotland Group PLC(1)

      3,062,846         10,266,198   

Societe Generale(1)

      308,366         6,787,446   

Wells Fargo & Co.

      835,403         28,244,975   
     

 

 

  
      $ 201,725,868   
     

 

 

  

Communications Equipment — 1.5%

      

QUALCOMM, Inc.

      502,128       $ 29,966,999   

 

1

 

 

                                                 
Security    Shares      Value  

Telefonaktiebolaget LM Ericsson, Class B

      1,594,781       $ 14,808,854   
     

 

 

  
      $ 44,775,853   
     

 

 

  

Computers & Peripherals — 1.9%

      

Apple, Inc.(1)

      87,917       $ 53,696,187   

EMC Corp.(1)

      217,492         5,700,465   
     

 

 

  
      $ 59,396,652   
     

 

 

  

Construction & Engineering — 0.6%

      

Fluor Corp.

      342,861       $ 16,999,048   
     

 

 

  
      $ 16,999,048   
     

 

 

  

Consumer Finance — 0.6%

      

American Express Co.

      321,494       $ 18,553,419   
     

 

 

  
      $ 18,553,419   
     

 

 

  

Diversified Financial Services — 1.6%

      

Bank of America Corp.

      2,496,828       $ 18,326,718   

Citigroup, Inc.

      444,847         12,068,699   

JPMorgan Chase & Co.

      526,091         18,939,276   
     

 

 

  
      $ 49,334,693   
     

 

 

  

Diversified Telecommunication Services — 3.6%

      

AT&T, Inc.

      897,744       $ 34,042,452   

CenturyLink, Inc.

      509,512         21,165,128   

France Telecom SA

      919,865         12,317,998   

Vivendi SA

      1,378,013         26,134,841   

Ziggo NV(1)

      557,351         16,109,971   
     

 

 

  
      $ 109,770,390   
     

 

 

  

Electric Utilities — 2.5%

      

American Electric Power Co., Inc.

      199,484       $ 8,426,204   

Duke Energy Corp.

      101,241         6,862,115   

Edison International

      151,426         6,992,853   

Enel SpA

      3,129,117         8,936,012   

PPL Corp.

      267,081         7,718,641   

Southern Co. (The)

      143,417         6,905,528   

SSE PLC

      1,536,047         31,549,816   
     

 

 

  
      $ 77,391,169   
     

 

 

  

Electrical Equipment — 1.5%

      

ABB, Ltd.(1)

      1,866,852       $ 32,457,902   

Schneider Electric SA

      219,298         12,364,590   
     

 

 

  
      $ 44,822,492   
     

 

 

  

Energy Equipment & Services — 1.1%

      

Halliburton Co.

      579,399       $ 19,195,489   

Schlumberger, Ltd.

      194,718         13,875,605   
     

 

 

  
      $ 33,071,094   
     

 

 

  

Food & Staples Retailing — 1.5%

      

Costco Wholesale Corp.

      279,916       $ 26,922,321   

Tesco PLC

      3,486,295         17,358,253   
     

 

 

  
      $ 44,280,574   
     

 

 

  

Food Products — 4.8%

      

Danone SA

      249,399       $ 15,159,314   

Nestle SA

      1,337,943         82,198,132   

Unilever NV

      1,402,506         48,691,927   
     

 

 

  
      $ 146,049,373   
     

 

 

  

 

2

 

 

                                                 
Security    Shares      Value  

Health Care Equipment & Supplies — 1.4%

      

Covidien PLC

      289,975       $ 16,203,803   

St. Jude Medical, Inc.

      322,090         12,033,283   

Varian Medical Systems, Inc.(1)

      237,616         12,969,081   
     

 

 

  
      $ 41,206,167   
     

 

 

  

Health Care Providers & Services — 0.0%(2)

      

UnitedHealth Group, Inc.

      20,494       $ 1,047,038   
     

 

 

  
      $ 1,047,038   
     

 

 

  

Hotels, Restaurants & Leisure — 0.9%

      

McDonald’s Corp.

      309,595       $ 27,665,409   
     

 

 

  
      $ 27,665,409   
     

 

 

  

Household Products — 1.2%

      

Colgate-Palmolive Co.

      142,048       $ 15,250,273   

Procter & Gamble Co.

      332,133         21,435,864   
     

 

 

  
      $ 36,686,137   
     

 

 

  

Industrial Conglomerates — 3.3%

      

Danaher Corp.

      640,766       $ 33,838,853   

General Electric Co.

      784,108         16,270,241   

Siemens AG

      579,097         49,072,070   
     

 

 

  
      $ 99,181,164   
     

 

 

  

Insurance — 3.0%

      

Aflac, Inc.

      264,261       $ 11,569,347   

Allianz SE

      196,242         19,468,835   

AXA SA

      1,357,193         16,489,491   

MetLife, Inc.

      284,691         8,759,942   

Prudential PLC

      2,911,200         34,642,794   
     

 

 

  
      $ 90,930,409   
     

 

 

  

Internet & Catalog Retail — 1.0%

      

Amazon.com, Inc.(1)

      133,548       $ 31,156,748   
     

 

 

  
      $ 31,156,748   
     

 

 

  

Internet Software & Services — 1.6%

      

eBay, Inc.(1)

      736,734       $ 32,637,316   

Google, Inc., Class A(1)

      26,740         16,925,618   
     

 

 

  
      $ 49,562,934   
     

 

 

  

IT Services — 2.7%

      

Accenture PLC, Class A

      532,848       $ 32,130,735   

International Business Machines Corp.

      178,443         34,971,259   

Visa, Inc., Class A

      122,290         15,783,970   
     

 

 

  
      $ 82,885,964   
     

 

 

  

Machinery — 0.5%

      

Deere & Co.

      198,647       $ 15,260,063   
     

 

 

  
      $ 15,260,063   
     

 

 

  

Media — 1.2%

      

Comcast Corp., Class A

      544,531       $ 17,724,484   

Walt Disney Co. (The)

      374,779         18,416,640   
     

 

 

  
      $ 36,141,124   
     

 

 

  

Metals & Mining — 3.0%

      

Anglo American PLC

      614,297       $ 18,204,433   

ArcelorMittal

      664,759         10,582,855   

BHP Billiton, Ltd. ADR

      554,874         36,810,341   

Cliffs Natural Resources, Inc.

      194,120         7,937,567   

Freeport-McMoRan Copper & Gold, Inc.

      280,354         9,439,519   

 

3

 

 

                                                 
Security    Shares      Value  

Glencore International PLC

      1,541,450       $ 7,709,070   
     

 

 

  
      $ 90,683,785   
     

 

 

  

Multi-Utilities — 1.0%

      

National Grid PLC

      2,205,626       $ 22,878,514   

Sempra Energy

      111,487         7,849,800   
     

 

 

  
      $ 30,728,314   
     

 

 

  

Multiline Retail — 1.4%

      

Dollar General Corp.(1)

      322,372       $ 16,444,196   

Macy’s, Inc.

      729,101         26,130,980   
     

 

 

  
      $ 42,575,176   
     

 

 

  

Oil, Gas & Consumable Fuels — 11.8%

      

Anadarko Petroleum Corp.

      188,107       $ 13,062,150   

Apache Corp.

      127,537         10,983,486   

BG Group PLC

      1,337,758         26,334,142   

BP PLC

      6,194,096         41,128,358   

ConocoPhillips

      458,298         24,949,743   

Exxon Mobil Corp.

      471,322         40,934,316   

Occidental Petroleum Corp.

      101,212         8,808,480   

Phillips 66

      229,149         8,616,002   

Royal Dutch Shell PLC, Class B

      3,005,897         105,740,624   

Statoil ASA

      1,529,135         36,342,291   

Total SA

      922,596         42,509,754   
     

 

 

  
      $ 359,409,346   
     

 

 

  

Pharmaceuticals — 11.5%

      

Abbott Laboratories

      277,584       $ 18,406,595   

Allergan, Inc.

      182,157         14,949,625   

AstraZeneca PLC

      335,079         15,648,880   

Bayer AG

      522,211         39,663,208   

GlaxoSmithKline PLC

      2,367,679         54,479,688   

Johnson & Johnson

      109,820         7,601,740   

Novartis AG

      1,102,556         64,741,019   

Novo Nordisk A/S, Class B

      348,338         53,709,398   

Pfizer, Inc.

      1,082,435         26,021,738   

Sanofi

      664,714         54,232,344   
     

 

 

  
      $ 349,454,235   
     

 

 

  

Real Estate Investment Trusts (REITs) — 0.8%

      

AvalonBay Communities, Inc.

      81,961       $ 12,055,643   

Boston Properties, Inc.

      124,513         13,808,492   
     

 

 

  
      $ 25,864,135   
     

 

 

  

Road & Rail — 0.8%

      

Union Pacific Corp.

      189,982       $ 23,293,693   
     

 

 

  
      $ 23,293,693   
     

 

 

  

Software — 2.0%

      

Microsoft Corp.

      561,259       $ 16,540,303   

Oracle Corp.

      531,284         16,044,777   

SAP AG

      440,936         27,983,068   
     

 

 

  
      $ 60,568,148   
     

 

 

  

Specialty Retail — 2.0%

      

Home Depot, Inc. (The)

      143,565       $ 7,491,222   

Industria de Diseno Textil SA

      371,387         38,223,061   

Kingfisher PLC

      3,679,861         15,347,601   
     

 

 

  
      $ 61,061,884   
     

 

 

  

 

4

 

 

                                                 
Security    Shares      Value  

Textiles, Apparel & Luxury Goods — 1.8%

      

LVMH Moet Hennessy Louis Vuitton SA

      259,879       $ 39,093,738   

NIKE, Inc., Class B

      160,464         14,979,314   
     

 

 

  
      $ 54,073,052   
     

 

 

  

Tobacco — 2.7%

      

British American Tobacco PLC

      1,002,726       $ 53,259,304   

Philip Morris International, Inc.

      313,252         28,643,763   
     

 

 

  
      $ 81,903,067   
     

 

 

  

Wireless Telecommunication Services — 2.2%

      

Vodafone Group PLC

      23,225,942       $ 66,471,139   
     

 

 

  
      $ 66,471,139   
     

 

 

  

Total Common Stocks
(identified cost $2,721,447,374)

       $ 2,962,058,828   
     

 

 

  

Short-Term Investments — 4.1%

      
Description   

Interest

(000’s omitted)

      Value  

Eaton Vance Cash Reserves Fund, LLC, 0.11%(3)

    $ 122,847       $ 122,846,759   
     

 

 

  

Total Short-Term Investments
(identified cost $122,846,759)

       $ 122,846,759   
     

 

 

  

Total Investments — 101.4%
(identified cost $2,844,294,133)

       $ 3,084,905,587   
     

 

 

  

 

                                                                                                   

Call Options Written — (1.0)%

            

Exchange-Traded Options — (0.4)%

            

Description

   

Number of

Contracts

     

Strike

Price

      Expiration
Date		      Value  

S&P 500 Index

      650       $ 1,360         8/18/2012       $ (1,885,000 ) 

S&P 500 Index

      875         1,365         8/18/2012         (2,248,750 ) 

S&P 500 Index

      1,415         1,370         8/18/2012         (3,219,125 ) 

S&P 500 Index

      1,510         1,375         8/18/2012         (2,997,350 ) 

S&P 500 Index

      1,355         1,380         8/18/2012         (2,337,375 ) 
           

 

 

  
            $ (12,687,600 ) 
           

 

 

  

Over-the-Counter Options — (0.6)%

            
Description    Number of
Contracts		     

Strike

Price

      Expiration
Date		      Value  

Dow Jones Euro Stoxx 50 Index(5)

      47,950       EUR   2,275         8/17/2012       $ (5,106,248 ) 

Dow Jones Euro Stoxx 50 Index(4)

      48,000       EUR 2,275         8/17/2012         (5,111,573 ) 

Dow Jones Euro Stoxx 50 Index(6)

      54,000       EUR 2,325         8/17/2012         (3,680,864 ) 

FTSE 100 Index(6)

      9,700       GBP 5,650         8/17/2012         (904,885 ) 

FTSE 100 Index(7)

      4,900       GBP 5,675         8/17/2012         (376,441 ) 

FTSE 100 Index(8)

      10,050       GBP 5,700         8/17/2012         (618,458 ) 

FTSE 100 Index(5)

      5,250       GBP 5,725         8/17/2012         (261,341 ) 

SMI Index(5)

      2,400       CHF 6,200         8/17/2012         (529,632 ) 

SMI Index(8)

      2,300       CHF 6,250         8/17/2012         (408,619 ) 

SMI Index(6)

      4,750       CHF 6,250         8/17/2012         (843,888 ) 

SMI Index(6)

      5,100       CHF 6,350         8/17/2012         (522,380 ) 
           

 

 

  
            $ (18,364,329 ) 
           

 

 

  

 

5

 

 

                                                                                                   
Description                      Value  

Total Call Options Written
(premiums received $21,256,662)

             $ (31,051,929 ) 
           

 

 

  

Other Assets, Less Liabilities — (0.4)%

             $ (10,106,676 ) 
           

 

 

  

Net Assets — 100.0%

             $     3,043,746,982   
           

 

 

  

The percentage shown for each investment category in the Portfolio of Investments is based on net assets.

 

ADR

   -   American Depositary Receipt

PFC Shares

   -   Preference Shares

CHF

   -   Swiss Franc

EUR

   -   Euro

GBP

   -   British Pound Sterling

 

(1) Non-income producing security.

 

(2) Amount is less than 0.05%.

 

(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, 2012. Net income allocated from the investment in Eaton Vance Cash Reserves Fund, LLC for the fiscal year to date ended July 31, 2012 was $81,620.

 

(4) Counterparty is Barclays Bank PLC.

 

(5) Counterparty is Credit Suisse International.

 

(6) Counterparty is Citibank NA.

 

(7) Counterparty is Bank of America.

 

(8) Counterparty is Morgan Stanley & Co. International PLC.

Country Concentration of Portfolio

 

                                                 
Country    Percentage
of Net Assets		     Value  

United States

      45.1 %    $ 1,371,376,354   

United Kingdom

      19.7        599,013,211   

France

      8.1        247,678,149   

Germany

      7.0        213,405,174   

Switzerland

      6.5        199,066,190   

Spain

      2.3        68,674,776   

Netherlands

      2.1        64,801,898   

Denmark

      1.8        53,709,398   

Ireland

      1.6        48,334,538   

Belgium

      1.5        46,576,468   

Australia

      1.2        36,810,341   

Norway

      1.2        36,342,291   

Canada

      1.1        32,146,796   

Brazil

      0.8        24,266,247   

Italy

      0.6        17,312,047   

Sweden

      0.5        14,808,854   

Luxembourg

      0.3        10,582,855   
  

 

 

    

 

 

  

Total Investments

      101.4 %    $     3,084,905,587   
  

 

 

    

 

 

  

 

6

 

 

The cost and unrealized appreciation (depreciation) of investments of the Fund at July 31, 2012, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     2,851,672,731   
  

 

 

  

Gross unrealized appreciation

    $ 463,606,690   

Gross unrealized depreciation

      (230,373,834 ) 
  

 

 

  

Net unrealized appreciation

    $ 233,232,856   
  

 

 

  

Written options activity for the fiscal year to date ended July 31, 2012 was as follows:

 

     Number of
Contracts		     Premiums
Received		  

Outstanding, beginning of period

      183,665      $ 42,789,910   

Options written

      1,700,495        242,719,931   

Options terminated in closing purchase transactions

      (1,359,395 )          (239,093,698 ) 

Options expired

      (324,560 )      (25,159,481 ) 
  

 

 

    

 

 

  

Outstanding, end of period

      200,205      $ 21,256,662   
  

 

 

    

 

 

  

All of the assets of the Fund are subject to segregation to satisfy the requirements of the escrow agent. At July 31, 2012, 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 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, 2012, 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 $31,051,929.

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, 2012, 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

    $ 160,008,993       $ 116,389,120      $ —       $ 276,398,113   

Consumer Staples

      136,928,367         300,793,538        —         437,721,905   

Energy

      140,425,271         252,055,169        —         392,480,440   

Financials

      241,211,333         188,647,692        —         429,859,025   

Health Care

      152,017,062         282,474,537        —         434,491,599   

Industrials

      136,115,040         93,894,562        —         230,009,602   

Information Technology

      254,397,629         42,791,922        —         297,189,551   

Materials

      96,399,308         83,148,273        —         179,547,581   

Telecommunication Services

      55,207,580         121,033,949        —         176,241,529   

Utilities

      44,755,141         63,364,342        —         108,119,483   

Total Common Stocks

    $     1,417,465,724       $     1,544,593,104 *    $     —       $     2,962,058,828   

 

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Asset Description    Level 1     Level 2     Level 3      Total  

Short-Term Investments

    $ —      $ 122,846,759      $ —       $ 122,846,759   

Total Investments

    $     1,417,465,724      $     1,667,439,863      $     —       $     3,084,905,587   
Liability Description                              

Call Options Written

    $ (12,687,600 )    $ (18,364,329 )    $ —       $ (31,051,929 ) 

Total

    $ (12,687,600 )    $ (18,364,329 )    $ —       $ (31,051,929 ) 

 

* 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, 2011 whose fair value was determined using Level 3 inputs. At July 31, 2012, 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.

 

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.

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 24, 2012

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 24, 2012

 

By:   /s/ Barbara E. Campbell
  Barbara E. Campbell
  Treasurer
Date:   September 24, 2012