Eaton Vance Tax-Managed Buy-Write Income Fund
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-21676
Eaton Vance Tax-Managed Buy-Write 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)
December 31
December 31, 2010
Item 1. Reports to Stockholders
IMPORTANT
NOTICES
Managed Distribution Plan. On March 10, 2009,
the Fund received authorization from the Securities and Exchange
Commission to distribute long-term capital gains to shareholders
more frequently than once per year. In this connection, the
Board of Trustees formally approved the implementation of a
Managed Distribution Plan (MDP) to make quarterly cash
distributions to common shareholders, stated in terms of a fixed
amount per common share.
The Fund intends to pay quarterly cash distributions equal to
$0.3240 per share. You should not draw any conclusions
about the Fund’s investment performance from the amount of
these distributions or from the terms of the MDP. The MDP will
be subject to regular periodic review by the Fund’s Board
of Trustees.
With each distribution, the Fund will issue a notice to
shareholders and an accompanying press release which will
provide detailed information required by the Fund’s
exemptive order. The Fund’s Board of Trustees may amend or
terminate the MDP at any time without prior notice to Fund
shareholders. However, at this time there are no reasonably
foreseeable circumstances that might cause the termination of
the MDP.
Delivery of Shareholder Documents. The Securities
and Exchange Commission (the “SEC”) permits funds to
deliver only one copy of shareholder documents, including
prospectuses, proxy statements and shareholder reports, to fund
investors with multiple accounts at the same residential or post
office box address. This practice is often called
“householding” and it helps eliminate duplicate
mailings to shareholders.
Eaton Vance, or your financial adviser, may household the
mailing of your documents indefinitely unless you instruct Eaton
Vance, or your financial adviser, otherwise. If you
would prefer that your Eaton Vance documents not be householded,
please contact Eaton Vance at
1-800-262-1122,
or contact your financial adviser. Your instructions that
householding not apply to delivery of your Eaton Vance documents
will be effective within 30 days of receipt by Eaton Vance
or your financial adviser.
Portfolio Holdings. Each Eaton Vance Fund and its
underlying Portfolio(s) (if applicable) will file a schedule of
portfolio holdings on
Form N-Q
with the SEC for the first and third quarters of each fiscal
year. The
Form N-Q
will be available on the Eaton Vance website at
www.eatonvance.com, by calling Eaton Vance at
1-800-262-1122
or in the EDGAR database on the SEC’s website at
www.sec.gov.
Form N-Q
may also be reviewed and copied at the SEC’s public
reference room in Washington, D.C. (call
1-800-732-0330
for information on the operation of the public reference room).
Proxy Voting. From time to time, funds are required
to vote proxies related to the securities held by the funds. The
Eaton Vance Funds or their underlying Portfolios (if applicable)
vote proxies according to a set of policies and procedures
approved by the Funds’ and Portfolios’ Boards. You may
obtain a description of these policies and procedures and
information on how the Funds or Portfolios voted proxies
relating to portfolio securities during the most recent
12 month period ended June 30, without charge, upon
request, by calling
1-800-262-1122.
This description is also available on the SEC’s website at
www.sec.gov.
Additional Notice to Shareholders. The Fund may
purchase shares of its common stock in the open market when they
trade at a discount to net asset value or at other times if the
Fund determines such purchases are advisable. There can be no
assurance that the Fund will take such action or that such
purchases would reduce the discount.
Please refer to the inside back
cover of this report for an important notice about
the privacy policies adopted by the Eaton Vance
organization.
Eaton Vance Tax-Managed Buy-Write Income Fund
as of December 31, 2010
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
Economic and Market Conditions
• |
U.
Walter
A. Row, CFA Eaton Vance Management Co-Portfolio
Manager
Thomas Seto Parametric
Portfolio Associates LLC Co-Portfolio Manager
David Stein, Ph.D. Parametric
Portfolio Associates LLC Co-Portfolio Manager
S. stocks finished 2010 with solid double-digit returns for the
major market indices, despite the lingering effects of the Great
Recession. The year overall was bracketed by solid quarters at both
ends, with some weakness in the middle. The weakness came as a variety
of concerns — including a stubborn European credit crisis, a
devastating oil spill in the Gulf of Mexico and growing political
uncertainties in the U.S. — caused a spike in volatility at midyear,
taking many markets down.
• The year ended on a decidedly higher note, however,
as equity investors seemed encouraged by the continued
modest growth of the U.S. economy and by ongoing signs
of improvements in corporate business fundamentals.
Investment flows started to favor equities over bonds as
longer-term interest rates began to rise toward
year-end.
• The broad-based S&P 500 Index was up 15.06% for the
year ended December 31, 2010, while the blue-chip Dow
Jones Industrial Average gained 14.06% and the
technology-heavy NASDAQ Composite Index rose 18.16%.
Growth indices outperformed value indices across all
market capitalizations for the year. Meanwhile,
small-cap and mid-cap stocks outperformed their
larger-cap counterparts by wide margins, although all of
the corresponding indices were firmly anchored in
positive territory.
|
Fund shares are not insured by the FDIC and are not deposits
or other obligations of, or guaranteed by, any depository
institution. Shares are subject to investment risks, including
possible loss of principal invested.
Management Discussion
• |
|
The Fund is a closed-end fund that trades on the New York Stock Exchange (NYSE) under the
symbol “ETB.” At net asset value (NAV) for the year ending December 31, 2010, the Fund
underperformed the S&P 500 Index and its Lipper peer group, but it outperformed the CBOE S&P 500
BuyWrite Index.1 The Fund’s market price traded at a 4.13% discount to NAV as of period
end. |
• |
|
The Fund’s primary objective is to provide current income and gains, with a secondary objective of
|
|
|
|
|
|
|
|
|
|
Total Return Performance 12/31/09 - 12/31/10 |
|
|
NYSE Symbol |
|
|
|
|
|
ETB |
|
|
|
|
|
|
|
|
|
|
At Net Asset Value (NAV) |
|
|
|
|
|
|
8.82 |
% |
At Market Price |
|
|
|
|
|
|
- 3.47 |
% |
|
|
|
|
|
|
|
|
|
S&P 500 Index1 |
|
|
|
|
|
|
15.06 |
% |
CBOE S&P 500 BuyWrite Index1 |
|
|
|
|
|
|
5.86 |
% |
Lipper Options Arbitrage/Options Strategies Funds Average1 |
11.58 |
% |
|
|
|
|
|
|
|
|
|
Premium/(Discount) to NAV (12/31/10) |
|
|
|
(4.13 |
%) |
Total Distributions per share |
|
|
|
|
|
$ |
1.800 |
|
Distribution Rate2 |
|
At NAV |
|
|
11.98 |
% |
|
|
At Market Price |
|
|
12.49 |
% |
|
|
|
|
|
|
|
|
|
See page 3 for more performance information. |
|
|
|
|
|
1 |
|
It is not possible to invest directly in an Index
or a Lipper Classification. The Indices’ total returns do not
reflect commissions or expenses that would have been incurred
if an investor individually purchased or sold the securities
represented in the Indices. The Lipper total return is the
average total return, at net asset value, of the funds that are
in the same Lipper Classification as the Fund. |
|
2 |
|
The Distribution Rate is based on the Fund’s last
regular distribution per share in the period (annualized)
divided by the Fund’s NAV or market price at the end of the
period. The Fund’s distributions may be comprised of ordinary
income, net realized capital gains and return of capital. |
|
Past performance is no guarantee of future results. Returns are
historical and are calculated by determining the percentage change
in net asset value or market price (as applicable) with all
distributions reinvested. The Fund’s performance at market price
will differ from its results at NAV. Although market price
performance generally reflects investment results over time, during
shorter periods, returns at market price can also be affected by
factors such as changing perceptions about the Fund, market
conditions, fluctuations in supply and demand for the Fund’s
shares, or changes in Fund distributions. The Fund has no current
intention to utilize leverage, but may do so in the future through
borrowings and other permitted methods. Investment return and
principal value will fluctuate so that shares, when sold, may be
worth more or less than their original cost. Performance is for the
stated time period only; due to market volatility, the Fund’s
current performance may be lower or higher than the quoted return.
For performance as of the most recent month end, please refer to
www.eatonvance.com.
1
Eaton Vance Tax-Managed Buy-Write Income Fund
as of December 31, 2010
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
|
|
capital appreciation. Under normal market conditions, the Fund pursues its investment
objectives by investing in a diversified portfolio of common stocks that seeks to exceed the total
return performance of the S&P 500. The Fund seeks to generate current earnings in part by employing
an options strategy of writing (selling) index call options on substantially the full value of its
holdings of common stocks. During the year ending December 31, 2010 — a period in which the S&P
500 Index performed in excess of historical norms — the index option overlay program prevented the
Fund from attaining greater upside market capture. For the year, the S&P 500 moved in excess of the
monthly call strikes by more than the premiums received, resulting in an overall option loss. At
net asset value, however, the Fund did outperform its option benchmark, the CBOE S&P 500 BuyWrite
Index. |
|
• |
|
As of December 31, 2010, the Fund held a diversified portfolio, with investments in sectors and
industries throughout the U.S. economy that are included in the S&P 500. Among the Fund’s common
stock holdings, its largest sector weightings were in information technology (IT), financials and
energy. An underweighting in the robust industrials sector detracted from the Fund’s performance
versus the S&P 500, as did some of its holdings in the energy equipment/services, health care
equipment/supplies, and semiconductors/ semiconductor equipment industries. Conversely, security
selection in the personal products, aerospace and defense, and real estate investment trust
industries contributed positively to performance, as did opportune sector allocation in the
financials sector, especially an underweight in capital markets and an overweight in the insurance
industry. |
|
• |
|
The Fund had written call options on approximately 99% of its equity holdings as of December 31,
2010. The Fund seeks current earnings in part from option premiums, which can vary with investors’
expectations of the future volatility (“implied volatility”) of the Fund’s underlying assets.
During the first and fourth calendar quarters of 2010, there were relatively low levels of implied
volatility, with correspondingly low levels of actual volatility in the equity markets. However,
the second and early third calendar quarters of the year experienced increases in volatility
levels. |
• |
|
On December 14, 2010, the Fund announced a change in its quarterly
distribution rate, effective with its January 31, 2011, distribution
payment. The Fund’s portfolio management team reviews the level and
sustainability of the Fund’s distributions periodically. Before
deciding to decrease the amount of the Fund’s distribution to $0.3240
per share, the team considered several factors including the current
market outlook and volatility environment, the dividend yield of the
underlying equity portfolio and the level of other income yielding
assets in the marketplace. The portfolio management team believes a
reduction in the Fund’s distributions will help strike a greater
balance in the delivery of total return, including both distributions
and the opportunity for capital appreciation. As portfolio and market
conditions change, the rate of distributions paid by the Fund could be
further changed. |
|
The views expressed throughout this report are those of the
portfolio managers and are current only through the end of the
period of the report as stated on the cover. These views are subject
to change at any time based upon market or other conditions, and the
investment adviser disclaims any responsibility to update such
views. These views may not be relied on as investment advice and,
because investment decisions for a fund are based on many factors,
may not be relied on as an indication of trading intent on behalf of
any Eaton Vance fund. Portfolio information provided in the report
may not be representative of the Fund’s current or future
investments and may change due to active management.
2
Eaton Vance Tax-Managed Buy-Write Income Fund
as of December 31, 2010
FUND PERFORMANCE
Fund Performance
|
|
|
|
|
NYSE Symbol |
|
ETB |
|
|
|
|
|
|
|
Average Annual Total Returns (at market price, NYSE) |
|
One Year |
|
|
-3.47 |
% |
Five Years |
|
|
6.68 |
|
Life of Fund (4/29/05) |
|
|
5.78 |
|
|
|
|
|
|
Average Annual Total Returns (at net asset value) |
|
One Year |
|
|
8.82 |
|
Five Years |
|
|
6.17 |
|
Life of Fund (4/29/05) |
|
|
6.57 |
|
|
Past performance is no guarantee of future results. Returns are
historical and are calculated by determining the percentage
change in net asset value or market price (as applicable) with
all distributions reinvested. The Fund’s performance at market
price will differ from its results at NAV. Although market price
performance generally reflects investment results over time,
during shorter periods, returns at market price can also be
affected by factors such as changing perceptions about the Fund,
market conditions, fluctuations in supply and demand for the
Fund’s shares, or changes in Fund distributions. The Fund has no
current intention to utilize leverage, but may do so in the
future through borrowings and other permitted methods. Investment
return and principal value will fluctuate so that shares, when
sold, may be worth more or less than their original cost.
Performance is for the stated time period only; due to market
volatility, the Fund’s current performance may be lower or higher
than the quoted return. For performance as of the most recent
month end, please refer to www.eatonvance.com.
Fund Composition
Top 10 Holdings1
|
|
|
|
|
|
|
By total investments |
|
|
|
|
|
Exxon Mobil Corp. |
|
|
3.6 |
% |
Apple, Inc. |
|
|
2.6 |
|
Microsoft Corp. |
|
|
2.3 |
|
Wells Fargo & Co. |
|
|
1.9 |
|
JPMorgan Chase & Co. |
|
|
1.9 |
|
Johnson & Johnson |
|
|
1.9 |
|
AT&T, Inc. |
|
|
1.8 |
|
Chevron Corp. |
|
|
1.7 |
|
Google, Inc., Class A |
|
|
1.6 |
|
Coca-Cola Co. (The) |
|
|
1.5 |
|
|
|
|
1 |
|
Top 10 Holdings represented 20.8% of the Fund’s total investments as of 12/31/10.
The Top 10 Holdings do not reflect the Fund’s written option positions at 12/31/10. |
3
Eaton Vance
Tax-Managed Buy-Write Income
Fund as
of December 31, 2010
PORTFOLIO OF INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
Common
Stocks — 101.2%
|
|
Security
|
|
Shares
|
|
|
Value
|
|
|
|
|
|
|
Aerospace
& Defense — 3.2%
|
|
Boeing Co. (The)
|
|
|
26,422
|
|
|
$
|
1,724,300
|
|
|
|
Honeywell International, Inc.
|
|
|
60,000
|
|
|
|
3,189,600
|
|
|
|
Northrop Grumman Corp.
|
|
|
22,634
|
|
|
|
1,466,231
|
|
|
|
Rockwell Collins, Inc.
|
|
|
34,789
|
|
|
|
2,026,807
|
|
|
|
United Technologies Corp.
|
|
|
43,492
|
|
|
|
3,423,690
|
|
|
|
|
|
|
|
|
|
|
|
$
|
11,830,628
|
|
|
|
|
|
|
|
Air
Freight & Logistics — 1.4%
|
|
CH Robinson Worldwide, Inc.
|
|
|
15,365
|
|
|
$
|
1,232,120
|
|
|
|
Expeditors International of Washington, Inc.
|
|
|
21,522
|
|
|
|
1,175,101
|
|
|
|
United Parcel Service, Inc., Class B
|
|
|
36,814
|
|
|
|
2,671,960
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,079,181
|
|
|
|
|
|
|
|
Auto
Components — 0.6%
|
|
Dana Holding
Corp.(1)
|
|
|
31,658
|
|
|
$
|
544,834
|
|
|
|
Goodyear Tire & Rubber Co.
(The)(1)
|
|
|
13,476
|
|
|
|
159,691
|
|
|
|
Johnson Controls, Inc.
|
|
|
37,662
|
|
|
|
1,438,688
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,143,213
|
|
|
|
|
|
|
|
Automobiles — 0.4%
|
|
Ford Motor
Co.(1)
|
|
|
83,365
|
|
|
$
|
1,399,698
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,399,698
|
|
|
|
|
|
|
|
Beverages — 2.7%
|
|
Coca-Cola
Co. (The)
|
|
|
86,673
|
|
|
$
|
5,700,483
|
|
|
|
PepsiCo, Inc.
|
|
|
63,538
|
|
|
|
4,150,938
|
|
|
|
|
|
|
|
|
|
|
|
$
|
9,851,421
|
|
|
|
|
|
|
|
Biotechnology — 1.6%
|
|
Amgen,
Inc.(1)
|
|
|
50,489
|
|
|
$
|
2,771,846
|
|
|
|
Celgene
Corp.(1)
|
|
|
39,773
|
|
|
|
2,352,175
|
|
|
|
Gilead Sciences,
Inc.(1)
|
|
|
21,919
|
|
|
|
794,345
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,918,366
|
|
|
|
|
|
|
|
Capital
Markets — 2.0%
|
|
Bank of New York Mellon Corp. (The)
|
|
|
13,449
|
|
|
$
|
406,160
|
|
|
|
Federated Investors, Inc., Class B
|
|
|
7,867
|
|
|
|
205,879
|
|
|
|
Goldman Sachs Group, Inc. (The)
|
|
|
13,885
|
|
|
|
2,334,902
|
|
|
|
Invesco, Ltd.
|
|
|
38,480
|
|
|
|
925,829
|
|
|
|
Legg Mason, Inc.
|
|
|
18,049
|
|
|
|
654,637
|
|
|
|
State Street Corp.
|
|
|
32,176
|
|
|
|
1,491,036
|
|
|
|
T. Rowe Price Group, Inc.
|
|
|
24,428
|
|
|
|
1,576,583
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7,595,026
|
|
|
|
|
|
|
|
Chemicals — 1.8%
|
|
Dow Chemical Co. (The)
|
|
|
40,267
|
|
|
$
|
1,374,715
|
|
|
|
E.I. du Pont de Nemours & Co.
|
|
|
67,000
|
|
|
|
3,341,960
|
|
|
|
Eastman Chemical Co.
|
|
|
1,804
|
|
|
|
151,680
|
|
|
|
Monsanto Co.
|
|
|
9,621
|
|
|
|
670,007
|
|
|
|
Sherwin-Williams Co. (The)
|
|
|
13,337
|
|
|
|
1,116,974
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,655,336
|
|
|
|
|
|
|
|
Commercial
Banks — 3.4%
|
|
Banco Bilbao Vizcaya Argentaria SA ADR
|
|
|
28,712
|
|
|
$
|
292,001
|
|
|
|
Fifth Third Bancorp
|
|
|
91,535
|
|
|
|
1,343,734
|
|
|
|
First Horizon National
Corp.(1)
|
|
|
50,817
|
|
|
|
598,618
|
|
|
|
KeyCorp
|
|
|
25,580
|
|
|
|
226,383
|
|
|
|
M&T Bank Corp.
|
|
|
20,480
|
|
|
|
1,782,784
|
|
|
|
Marshall & Ilsley Corp.
|
|
|
39,440
|
|
|
|
272,925
|
|
|
|
PNC Financial Services Group, Inc.
|
|
|
14,634
|
|
|
|
888,577
|
|
|
|
Wells Fargo & Co.
|
|
|
234,000
|
|
|
|
7,251,660
|
|
|
|
|
|
|
|
|
|
|
|
$
|
12,656,682
|
|
|
|
|
|
|
|
Commercial
Services & Supplies — 1.2%
|
|
Avery Dennison Corp.
|
|
|
20,234
|
|
|
$
|
856,707
|
|
|
|
Pitney Bowes, Inc.
|
|
|
34,248
|
|
|
|
828,117
|
|
|
|
RR Donnelley & Sons Co.
|
|
|
28,274
|
|
|
|
493,947
|
|
|
|
Waste Management, Inc.
|
|
|
64,908
|
|
|
|
2,393,158
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,571,929
|
|
|
|
|
|
|
|
Communications
Equipment — 3.2%
|
|
Aviat Networks,
Inc.(1)
|
|
|
6,710
|
|
|
$
|
34,020
|
|
|
|
Cisco Systems,
Inc.(1)
|
|
|
256,919
|
|
|
|
5,197,471
|
|
|
|
Harris Corp.
|
|
|
23,222
|
|
|
|
1,051,957
|
|
|
|
QUALCOMM, Inc.
|
|
|
88,202
|
|
|
|
4,365,117
|
|
|
|
Research In Motion,
Ltd.(1)
|
|
|
2,676
|
|
|
|
155,556
|
|
|
|
Riverbed Technology,
Inc.(1)
|
|
|
16,473
|
|
|
|
579,355
|
|
|
|
Telefonaktiebolaget LM Ericsson, Class B ADR
|
|
|
43,494
|
|
|
|
501,486
|
|
|
|
|
|
|
|
|
|
|
|
$
|
11,884,962
|
|
|
|
|
|
|
|
Computers
& Peripherals — 4.1%
|
|
Apple,
Inc.(1)
|
|
|
30,468
|
|
|
$
|
9,827,758
|
|
|
|
Hewlett-Packard Co.
|
|
|
112,124
|
|
|
|
4,720,421
|
|
|
|
See
notes to financial statements
4
Eaton Vance
Tax-Managed Buy-Write Income
Fund as
of December 31, 2010
PORTFOLIO OF
INVESTMENTS CONT’D
|
|
|
|
|
|
|
|
|
|
|
Security
|
|
Shares
|
|
|
Value
|
|
|
|
|
|
Computers
& Peripherals (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
QLogic
Corp.(1)
|
|
|
40,511
|
|
|
$
|
689,497
|
|
|
|
|
|
|
|
|
|
|
|
$
|
15,237,676
|
|
|
|
|
|
|
|
Construction
&
Engineering — 0.0%(2)
|
|
Shaw Group, Inc.
(The)(1)
|
|
|
4,322
|
|
|
$
|
147,942
|
|
|
|
|
|
|
|
|
|
|
|
$
|
147,942
|
|
|
|
|
|
|
|
Consumer
Finance — 0.8%
|
|
American Express Co.
|
|
|
49,193
|
|
|
$
|
2,111,363
|
|
|
|
Discover Financial Services
|
|
|
40,754
|
|
|
|
755,172
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,866,535
|
|
|
|
|
|
|
|
Distributors — 0.5%
|
|
Genuine Parts Co.
|
|
|
34,078
|
|
|
$
|
1,749,565
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,749,565
|
|
|
|
|
|
|
|
Diversified
Consumer Services — 0.3%
|
|
H&R Block, Inc.
|
|
|
85,901
|
|
|
$
|
1,023,081
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,023,081
|
|
|
|
|
|
|
|
Diversified
Financial Services — 4.3%
|
|
Bank of America Corp.
|
|
|
294,131
|
|
|
$
|
3,923,707
|
|
|
|
Citigroup,
Inc.(1)
|
|
|
633,400
|
|
|
|
2,995,982
|
|
|
|
CME Group, Inc.
|
|
|
3,193
|
|
|
|
1,027,348
|
|
|
|
JPMorgan Chase & Co.
|
|
|
170,941
|
|
|
|
7,251,317
|
|
|
|
Moody’s Corp.
|
|
|
29,272
|
|
|
|
776,879
|
|
|
|
|
|
|
|
|
|
|
|
$
|
15,975,233
|
|
|
|
|
|
|
|
Diversified
Telecommunication Services — 3.4%
|
|
AT&T, Inc.
|
|
|
230,383
|
|
|
$
|
6,768,653
|
|
|
|
Frontier Communications Corp.
|
|
|
104,862
|
|
|
|
1,020,307
|
|
|
|
Verizon Communications, Inc.
|
|
|
139,894
|
|
|
|
5,005,407
|
|
|
|
|
|
|
|
|
|
|
|
$
|
12,794,367
|
|
|
|
|
|
|
|
Electric
Utilities — 1.1%
|
|
Duke Energy Corp.
|
|
|
88,867
|
|
|
$
|
1,582,721
|
|
|
|
Edison International
|
|
|
22,819
|
|
|
|
880,813
|
|
|
|
FirstEnergy Corp.
|
|
|
34,793
|
|
|
|
1,288,037
|
|
|
|
Pinnacle West Capital Corp.
|
|
|
7,168
|
|
|
|
297,114
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,048,685
|
|
|
|
|
|
|
Electrical
Equipment — 0.9%
|
|
Emerson Electric Co.
|
|
|
56,500
|
|
|
$
|
3,230,105
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,230,105
|
|
|
|
|
|
|
|
Electronic
Equipment, Instruments & Components — 0.1%
|
|
Molex, Inc.
|
|
|
13,181
|
|
|
$
|
299,472
|
|
|
|
|
|
|
|
|
|
|
|
$
|
299,472
|
|
|
|
|
|
|
|
Energy
Equipment & Services — 2.3%
|
|
Diamond Offshore Drilling, Inc.
|
|
|
13,574
|
|
|
$
|
907,694
|
|
|
|
Halliburton Co.
|
|
|
68,734
|
|
|
|
2,806,409
|
|
|
|
Schlumberger, Ltd.
|
|
|
56,392
|
|
|
|
4,708,732
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,422,835
|
|
|
|
|
|
|
|
Food
& Staples Retailing — 2.3%
|
|
CVS Caremark Corp.
|
|
|
89,860
|
|
|
$
|
3,124,432
|
|
|
|
Wal-Mart Stores, Inc.
|
|
|
97,482
|
|
|
|
5,257,204
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,381,636
|
|
|
|
|
|
|
|
Food
Products — 1.8%
|
|
ConAgra Foods, Inc.
|
|
|
36,224
|
|
|
$
|
817,938
|
|
|
|
General Mills, Inc.
|
|
|
37,423
|
|
|
|
1,331,885
|
|
|
|
Green Mountain Coffee Roasters,
Inc.(1)
|
|
|
15,366
|
|
|
|
504,927
|
|
|
|
Kellogg Co.
|
|
|
31,044
|
|
|
|
1,585,727
|
|
|
|
Kraft Foods, Inc., Class A
|
|
|
54,344
|
|
|
|
1,712,379
|
|
|
|
Tyson Foods, Inc., Class A
|
|
|
51,613
|
|
|
|
888,776
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,841,632
|
|
|
|
|
|
|
|
Gas
Utilities — 0.2%
|
|
Nicor, Inc.
|
|
|
11,699
|
|
|
$
|
584,014
|
|
|
|
|
|
|
|
|
|
|
|
$
|
584,014
|
|
|
|
|
|
|
|
Health
Care Equipment & Supplies — 1.5%
|
|
Baxter International, Inc.
|
|
|
52,220
|
|
|
$
|
2,643,376
|
|
|
|
Boston Scientific
Corp.(1)
|
|
|
30,325
|
|
|
|
229,560
|
|
|
|
Covidien PLC
|
|
|
11,380
|
|
|
|
519,611
|
|
|
|
Medtronic, Inc.
|
|
|
52,729
|
|
|
|
1,955,719
|
|
|
|
Zimmer Holdings,
Inc.(1)
|
|
|
5,294
|
|
|
|
284,182
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,632,448
|
|
|
|
|
|
|
See
notes to financial statements
5
Eaton Vance
Tax-Managed Buy-Write Income
Fund as
of December 31, 2010
PORTFOLIO OF
INVESTMENTS CONT’D
|
|
|
|
|
|
|
|
|
|
|
Security
|
|
Shares
|
|
|
Value
|
|
|
|
|
|
|
Health
Care Providers & Services — 1.2%
|
|
Medco Health Solutions,
Inc.(1)
|
|
|
26,655
|
|
|
$
|
1,633,152
|
|
|
|
Quest Diagnostics, Inc.
|
|
|
21,510
|
|
|
|
1,160,895
|
|
|
|
UnitedHealth Group, Inc.
|
|
|
49,739
|
|
|
|
1,796,075
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,590,122
|
|
|
|
|
|
|
|
Hotels,
Restaurants & Leisure — 1.2%
|
|
Marriott International, Inc., Class A
|
|
|
1
|
|
|
$
|
42
|
|
|
|
McDonald’s Corp.
|
|
|
35,843
|
|
|
|
2,751,309
|
|
|
|
Wyndham Worldwide Corp.
|
|
|
26,139
|
|
|
|
783,124
|
|
|
|
Yum! Brands, Inc.
|
|
|
16,501
|
|
|
|
809,374
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,343,849
|
|
|
|
|
|
|
|
Household
Durables — 1.1%
|
|
D.R. Horton, Inc.
|
|
|
22,646
|
|
|
$
|
270,167
|
|
|
|
Leggett & Platt, Inc.
|
|
|
11,383
|
|
|
|
259,077
|
|
|
|
Lennar Corp., Class A
|
|
|
21,018
|
|
|
|
394,087
|
|
|
|
Newell Rubbermaid, Inc.
|
|
|
76,798
|
|
|
|
1,396,188
|
|
|
|
Pulte Group,
Inc.(1)
|
|
|
20,311
|
|
|
|
152,739
|
|
|
|
Stanley Black & Decker, Inc.
|
|
|
10,773
|
|
|
|
720,390
|
|
|
|
Whirlpool Corp.
|
|
|
11,922
|
|
|
|
1,059,031
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,251,679
|
|
|
|
|
|
|
|
Household
Products — 1.6%
|
|
Clorox Co. (The)
|
|
|
14,476
|
|
|
$
|
916,042
|
|
|
|
Kimberly-Clark Corp.
|
|
|
7,732
|
|
|
|
487,425
|
|
|
|
Procter & Gamble Co.
|
|
|
68,531
|
|
|
|
4,408,599
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,812,066
|
|
|
|
|
|
|
|
Industrial
Conglomerates — 1.8%
|
|
3M Co.
|
|
|
17,125
|
|
|
$
|
1,477,888
|
|
|
|
General Electric Co.
|
|
|
272,736
|
|
|
|
4,988,341
|
|
|
|
Textron, Inc.
|
|
|
11,648
|
|
|
|
275,359
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,741,588
|
|
|
|
|
|
|
|
Insurance — 4.5%
|
|
ACE, Ltd.
|
|
|
21,315
|
|
|
$
|
1,326,859
|
|
|
|
Aflac, Inc.
|
|
|
7,577
|
|
|
|
427,570
|
|
|
|
AON Corp.
|
|
|
15,101
|
|
|
|
694,797
|
|
|
|
Berkshire Hathaway, Inc.,
Class B(1)
|
|
|
37,680
|
|
|
|
3,018,545
|
|
|
|
Cincinnati Financial Corp.
|
|
|
27,139
|
|
|
|
860,035
|
|
|
|
Genworth Financial, Inc.,
Class A(1)
|
|
|
4,317
|
|
|
|
56,725
|
|
|
|
Lincoln National Corp.
|
|
|
34,963
|
|
|
|
972,321
|
|
|
|
Marsh & McLennan Cos., Inc.
|
|
|
50,188
|
|
|
|
1,372,140
|
|
|
|
MetLife, Inc.
|
|
|
45,032
|
|
|
|
2,001,222
|
|
|
|
Principal Financial Group, Inc.
|
|
|
44,928
|
|
|
|
1,462,856
|
|
|
|
Prudential Financial, Inc.
|
|
|
28,337
|
|
|
|
1,663,665
|
|
|
|
Travelers Companies, Inc. (The)
|
|
|
47,786
|
|
|
|
2,662,158
|
|
|
|
|
|
|
|
|
|
|
|
$
|
16,518,893
|
|
|
|
|
|
|
|
Internet
& Catalog Retail — 0.5%
|
|
Amazon.com,
Inc.(1)
|
|
|
5,804
|
|
|
$
|
1,044,720
|
|
|
|
Priceline.com,
Inc.(1)
|
|
|
2,341
|
|
|
|
935,347
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,980,067
|
|
|
|
|
|
|
|
Internet
Software & Services — 2.1%
|
|
AOL,
Inc.(1)
|
|
|
2,315
|
|
|
$
|
54,889
|
|
|
|
Google, Inc.,
Class A(1)
|
|
|
10,119
|
|
|
|
6,010,382
|
|
|
|
Monster Worldwide,
Inc.(1)
|
|
|
16,352
|
|
|
|
386,398
|
|
|
|
VeriSign, Inc.
|
|
|
43,013
|
|
|
|
1,405,235
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7,856,904
|
|
|
|
|
|
|
|
IT
Services — 1.9%
|
|
Fidelity National Information Services, Inc.
|
|
|
26,132
|
|
|
$
|
715,755
|
|
|
|
International Business Machines Corp.
|
|
|
33,173
|
|
|
|
4,868,469
|
|
|
|
MasterCard, Inc., Class A
|
|
|
7,359
|
|
|
|
1,649,226
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7,233,450
|
|
|
|
|
|
|
|
Leisure
Equipment & Products — 0.4%
|
|
Mattel, Inc.
|
|
|
54,845
|
|
|
$
|
1,394,708
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,394,708
|
|
|
|
|
|
|
|
Life
Sciences Tools & Services — 0.1%
|
|
Thermo Fisher Scientific,
Inc.(1)
|
|
|
3,866
|
|
|
$
|
214,022
|
|
|
|
|
|
|
|
|
|
|
|
$
|
214,022
|
|
|
|
|
|
|
|
Machinery — 0.9%
|
|
Caterpillar, Inc.
|
|
|
31,778
|
|
|
$
|
2,976,328
|
|
|
|
Eaton Corp.
|
|
|
1,431
|
|
|
|
145,261
|
|
|
|
Snap-On, Inc.
|
|
|
6,380
|
|
|
|
360,980
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,482,569
|
|
|
|
|
|
|
|
Media — 3.9%
|
|
CBS Corp., Class B
|
|
|
64,211
|
|
|
$
|
1,223,219
|
|
|
|
Comcast Corp., Class A
|
|
|
131,079
|
|
|
|
2,879,806
|
|
|
|
IMAX
Corp.(1)
|
|
|
16,738
|
|
|
|
469,501
|
|
|
|
McGraw-Hill Cos., Inc. (The)
|
|
|
51,266
|
|
|
|
1,866,595
|
|
|
|
Omnicom Group, Inc.
|
|
|
39,439
|
|
|
|
1,806,306
|
|
|
|
See
notes to financial statements
6
Eaton Vance
Tax-Managed Buy-Write Income
Fund as
of December 31, 2010
PORTFOLIO OF
INVESTMENTS CONT’D
|
|
|
|
|
|
|
|
|
|
|
Security
|
|
Shares
|
|
|
Value
|
|
|
|
|
|
Media (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
Scripps Networks Interactive, Class A
|
|
|
6,991
|
|
|
$
|
361,784
|
|
|
|
Time Warner, Inc.
|
|
|
25,474
|
|
|
|
819,499
|
|
|
|
Time Warner Cable, Inc.
|
|
|
13,292
|
|
|
|
877,671
|
|
|
|
Walt Disney Co. (The)
|
|
|
110,516
|
|
|
|
4,145,455
|
|
|
|
|
|
|
|
|
|
|
|
$
|
14,449,836
|
|
|
|
|
|
|
|
Metals
& Mining — 1.7%
|
|
AK Steel Holding Corp.
|
|
|
13,180
|
|
|
$
|
215,757
|
|
|
|
Allegheny Technologies, Inc.
|
|
|
16,248
|
|
|
|
896,565
|
|
|
|
Cliffs Natural Resources, Inc.
|
|
|
4,838
|
|
|
|
377,412
|
|
|
|
Freeport-McMoRan Copper & Gold, Inc.
|
|
|
30,929
|
|
|
|
3,714,264
|
|
|
|
Nucor Corp.
|
|
|
22,092
|
|
|
|
968,071
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,172,069
|
|
|
|
|
|
|
|
Multi-Utilities — 2.4%
|
|
Centerpoint Energy, Inc.
|
|
|
17,504
|
|
|
$
|
275,163
|
|
|
|
CMS Energy Corp.
|
|
|
102,883
|
|
|
|
1,913,624
|
|
|
|
Dominion Resources, Inc.
|
|
|
17,163
|
|
|
|
733,203
|
|
|
|
DTE Energy Co.
|
|
|
10,342
|
|
|
|
468,699
|
|
|
|
Integrys Energy Group, Inc.
|
|
|
10,554
|
|
|
|
511,975
|
|
|
|
NiSource, Inc.
|
|
|
55,701
|
|
|
|
981,452
|
|
|
|
Public Service Enterprise Group, Inc.
|
|
|
69,335
|
|
|
|
2,205,546
|
|
|
|
TECO Energy, Inc.
|
|
|
92,229
|
|
|
|
1,641,676
|
|
|
|
Xcel Energy, Inc.
|
|
|
12,009
|
|
|
|
282,812
|
|
|
|
|
|
|
|
|
|
|
|
$
|
9,014,150
|
|
|
|
|
|
|
|
Multiline
Retail — 1.1%
|
|
Kohl’s
Corp.(1)
|
|
|
26,447
|
|
|
$
|
1,437,130
|
|
|
|
Macy’s, Inc.
|
|
|
83,393
|
|
|
|
2,109,843
|
|
|
|
Nordstrom, Inc.
|
|
|
12,248
|
|
|
|
519,070
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,066,043
|
|
|
|
|
|
|
|
Oil,
Gas & Consumable Fuels — 9.9%
|
|
Chevron Corp.
|
|
|
67,357
|
|
|
$
|
6,146,326
|
|
|
|
ConocoPhillips
|
|
|
72,076
|
|
|
|
4,908,376
|
|
|
|
El Paso Corp.
|
|
|
53,383
|
|
|
|
734,550
|
|
|
|
EOG Resources, Inc.
|
|
|
21,076
|
|
|
|
1,926,557
|
|
|
|
Exxon Mobil Corp.
|
|
|
186,030
|
|
|
|
13,602,514
|
|
|
|
Massey Energy Co.
|
|
|
980
|
|
|
|
52,577
|
|
|
|
Occidental Petroleum Corp.
|
|
|
41,549
|
|
|
|
4,075,957
|
|
|
|
Peabody Energy Corp.
|
|
|
15,263
|
|
|
|
976,527
|
|
|
|
Petrohawk Energy
Corp.(1)
|
|
|
16,345
|
|
|
|
298,296
|
|
|
|
Range Resources Corp.
|
|
|
22,418
|
|
|
|
1,008,362
|
|
|
|
Tesoro
Corp.(1)
|
|
|
35,498
|
|
|
|
658,133
|
|
|
|
Williams Cos., Inc.
|
|
|
93,802
|
|
|
|
2,318,785
|
|
|
|
|
|
|
|
|
|
|
|
$
|
36,706,960
|
|
|
|
|
|
|
|
Paper
& Forest Products — 0.1%
|
|
MeadWestvaco Corp.
|
|
|
21,446
|
|
|
$
|
561,027
|
|
|
|
|
|
|
|
|
|
|
|
$
|
561,027
|
|
|
|
|
|
|
|
Personal
Products — 0.1%
|
|
Alberto-Culver Co.
|
|
|
6,250
|
|
|
$
|
231,500
|
|
|
|
Estee Lauder Cos., Inc., Class A
|
|
|
1,663
|
|
|
|
134,204
|
|
|
|
|
|
|
|
|
|
|
|
$
|
365,704
|
|
|
|
|
|
|
|
Pharmaceuticals — 6.5%
|
|
Abbott Laboratories
|
|
|
83,514
|
|
|
$
|
4,001,156
|
|
|
|
Bristol-Myers Squibb Co.
|
|
|
83,905
|
|
|
|
2,221,804
|
|
|
|
Johnson & Johnson
|
|
|
115,620
|
|
|
|
7,151,097
|
|
|
|
Merck & Co., Inc.
|
|
|
141,663
|
|
|
|
5,105,534
|
|
|
|
Pfizer, Inc.
|
|
|
315,478
|
|
|
|
5,524,020
|
|
|
|
|
|
|
|
|
|
|
|
$
|
24,003,611
|
|
|
|
|
|
|
|
Professional
Services — 0.3%
|
|
Dun & Bradstreet Corp.
|
|
|
1,472
|
|
|
$
|
120,836
|
|
|
|
Robert Half International, Inc.
|
|
|
28,288
|
|
|
|
865,613
|
|
|
|
|
|
|
|
|
|
|
|
$
|
986,449
|
|
|
|
|
|
|
|
Real
Estate Investment Trusts (REITs) — 1.5%
|
|
Apartment Investment & Management Co., Class A
|
|
|
12,428
|
|
|
$
|
321,140
|
|
|
|
AvalonBay Communities, Inc.
|
|
|
11,002
|
|
|
|
1,238,275
|
|
|
|
Equity Residential
|
|
|
14,774
|
|
|
|
767,509
|
|
|
|
Host Hotels & Resorts, Inc.
|
|
|
32,755
|
|
|
|
585,332
|
|
|
|
Kimco Realty Corp.
|
|
|
78,276
|
|
|
|
1,412,099
|
|
|
|
Plum Creek Timber Co., Inc.
|
|
|
12,612
|
|
|
|
472,319
|
|
|
|
ProLogis
|
|
|
41,966
|
|
|
|
605,989
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,402,663
|
|
|
|
|
|
|
|
Real
Estate Management & Development — 0.1%
|
|
CB Richard Ellis Group, Inc.,
Class A(1)
|
|
|
19,604
|
|
|
$
|
401,490
|
|
|
|
|
|
|
|
|
|
|
|
$
|
401,490
|
|
|
|
|
|
|
See
notes to financial statements
7
Eaton Vance
Tax-Managed Buy-Write Income
Fund as
of December 31, 2010
PORTFOLIO OF
INVESTMENTS CONT’D
|
|
|
|
|
|
|
|
|
|
|
Security
|
|
Shares
|
|
|
Value
|
|
|
|
|
|
|
Road
& Rail — 0.6%
|
|
J.B. Hunt Transport Services, Inc.
|
|
|
3,521
|
|
|
$
|
143,692
|
|
|
|
Norfolk Southern Corp.
|
|
|
31,164
|
|
|
|
1,957,722
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,101,414
|
|
|
|
|
|
|
|
Semiconductors
& Semiconductor Equipment — 2.7%
|
|
Advanced Micro Devices,
Inc.(1)
|
|
|
12,153
|
|
|
$
|
99,412
|
|
|
|
Applied Materials, Inc.
|
|
|
119,522
|
|
|
|
1,679,284
|
|
|
|
Atheros Communications,
Inc.(1)
|
|
|
23,469
|
|
|
|
843,006
|
|
|
|
Cirrus Logic,
Inc.(1)
|
|
|
42,071
|
|
|
|
672,295
|
|
|
|
Cypress Semiconductor
Corp.(1)
|
|
|
57,074
|
|
|
|
1,060,435
|
|
|
|
First Solar,
Inc.(1)
|
|
|
1,663
|
|
|
|
216,423
|
|
|
|
Intel Corp.
|
|
|
185,084
|
|
|
|
3,892,316
|
|
|
|
MEMC Electronic Materials,
Inc.(1)
|
|
|
8,064
|
|
|
|
90,801
|
|
|
|
Microchip Technology, Inc.
|
|
|
15,385
|
|
|
|
526,321
|
|
|
|
Micron Technology,
Inc.(1)
|
|
|
56,773
|
|
|
|
455,319
|
|
|
|
Teradyne,
Inc.(1)
|
|
|
32,470
|
|
|
|
455,879
|
|
|
|
|
|
|
|
|
|
|
|
$
|
9,991,491
|
|
|
|
|
|
|
|
Software — 4.0%
|
|
Concur Technologies,
Inc.(1)
|
|
|
34,516
|
|
|
$
|
1,792,416
|
|
|
|
Microsoft Corp.
|
|
|
300,546
|
|
|
|
8,391,244
|
|
|
|
Oracle Corp.
|
|
|
103,117
|
|
|
|
3,227,562
|
|
|
|
Quest Software,
Inc.(1)
|
|
|
11,338
|
|
|
|
314,516
|
|
|
|
Symantec
Corp.(1)
|
|
|
56,043
|
|
|
|
938,160
|
|
|
|
|
|
|
|
|
|
|
|
$
|
14,663,898
|
|
|
|
|
|
|
|
Specialty
Retail — 1.6%
|
|
Abercrombie & Fitch Co., Class A
|
|
|
5,734
|
|
|
$
|
330,450
|
|
|
|
American Eagle Outfitters, Inc.
|
|
|
6,395
|
|
|
|
93,559
|
|
|
|
GameStop Corp.,
Class A(1)
|
|
|
2,593
|
|
|
|
59,328
|
|
|
|
Home Depot, Inc.
|
|
|
33,442
|
|
|
|
1,172,477
|
|
|
|
Limited Brands, Inc.
|
|
|
37,277
|
|
|
|
1,145,522
|
|
|
|
RadioShack Corp.
|
|
|
19,049
|
|
|
|
352,216
|
|
|
|
Staples, Inc.
|
|
|
88,922
|
|
|
|
2,024,754
|
|
|
|
Tiffany & Co.
|
|
|
14,641
|
|
|
|
911,695
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,090,001
|
|
|
|
|
|
|
|
Textiles,
Apparel & Luxury Goods — 0.2%
|
|
Coach, Inc.
|
|
|
4,244
|
|
|
$
|
234,736
|
|
|
|
Hanesbrands,
Inc.(1)
|
|
|
6,900
|
|
|
|
175,260
|
|
|
|
NIKE, Inc., Class B
|
|
|
1,911
|
|
|
|
163,237
|
|
|
|
|
|
|
|
|
|
|
|
$
|
573,233
|
|
|
|
|
|
|
Tobacco — 1.9%
|
|
Altria Group, Inc.
|
|
|
50,128
|
|
|
$
|
1,234,151
|
|
|
|
Philip Morris International, Inc.
|
|
|
86,826
|
|
|
|
5,081,926
|
|
|
|
Reynolds American, Inc.
|
|
|
27,499
|
|
|
|
897,017
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7,213,094
|
|
|
|
|
|
|
|
Trading
Companies & Distributors — 0.1%
|
|
Fastenal Co.
|
|
|
5,040
|
|
|
$
|
301,946
|
|
|
|
|
|
|
|
|
|
|
|
$
|
301,946
|
|
|
|
|
|
|
|
Wireless
Telecommunication Services — 0.1%
|
|
Rogers Communications, Inc., Class B
|
|
|
4,553
|
|
|
$
|
157,670
|
|
|
|
Vodafone Group PLC ADR
|
|
|
9,067
|
|
|
|
239,641
|
|
|
|
|
|
|
|
|
|
|
|
$
|
397,311
|
|
|
|
|
|
|
|
|
Total
Common Stocks
|
|
|
(identified
cost $299,205,282)
|
|
$
|
374,703,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Call Options
Written — (1.5)%
|
|
|
|
Number of
|
|
|
Strike
|
|
|
Expiration
|
|
|
|
|
|
|
Description
|
|
Contracts
|
|
|
Price
|
|
|
Date
|
|
|
Value
|
|
|
|
|
|
S&P 500 Index
|
|
|
1,125
|
|
|
$
|
1,245
|
|
|
|
1/22/11
|
|
|
$
|
(2,908,125
|
)
|
|
|
S&P 500 Index
|
|
|
770
|
|
|
|
1,260
|
|
|
|
1/22/11
|
|
|
|
(1,247,400
|
)
|
|
|
S&P 500 Index
|
|
|
1,065
|
|
|
|
1,270
|
|
|
|
1/22/11
|
|
|
|
(1,219,425
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total
Call Options Written
|
|
|
|
|
|
|
(premiums
received $5,118,535)
|
|
$
|
(5,374,950
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Other
Assets, Less Liabilities — 0.3%
|
|
$
|
1,074,329
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets — 100.0%
|
|
$
|
370,403,354
|
|
|
|
|
|
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets.
ADR - American Depositary Receipt
|
|
|
(1)
|
|
Non-income producing security. |
|
(2)
|
|
Amount is less than 0.05%. |
See
notes to financial statements
8
Eaton Vance
Tax-Managed Buy-Write Income
Fund as
of December 31, 2010
FINANCIAL STATEMENTS
Statement
of Assets and Liabilities
|
|
|
|
|
|
|
As of
December 31, 2010
|
|
|
|
|
|
|
Assets
|
|
Investments, at value (identified cost, $299,205,282)
|
|
$
|
374,703,975
|
|
|
|
Cash
|
|
|
1,098,080
|
|
|
|
Dividends receivable
|
|
|
503,575
|
|
|
|
Receivable for investments sold
|
|
|
15,557,604
|
|
|
|
Tax reclaims receivable
|
|
|
759
|
|
|
|
|
|
Total assets
|
|
$
|
391,863,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
Written options outstanding, at value (premiums received,
$5,118,535)
|
|
$
|
5,374,950
|
|
|
|
Payable for investments purchased
|
|
|
15,594,920
|
|
|
|
Payable to affiliates:
|
|
|
|
|
|
|
Investment adviser fee
|
|
|
311,669
|
|
|
|
Trustees’ fees
|
|
|
3,125
|
|
|
|
Accrued expenses
|
|
|
175,975
|
|
|
|
|
|
Total liabilities
|
|
$
|
21,460,639
|
|
|
|
|
|
Net Assets
|
|
$
|
370,403,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sources
of Net Assets
|
|
Common shares, $0.01 par value, unlimited number of shares
authorized, 24,654,545 shares issued and outstanding
|
|
$
|
246,545
|
|
|
|
Additional paid-in capital
|
|
|
294,644,461
|
|
|
|
Accumulated net realized gain
|
|
|
256,392
|
|
|
|
Accumulated undistributed net investment income
|
|
|
13,642
|
|
|
|
Net unrealized appreciation
|
|
|
75,242,314
|
|
|
|
|
|
Net Assets
|
|
$
|
370,403,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Asset Value
|
|
($370,403,354
¸
24,654,545 common shares issued and outstanding)
|
|
$
|
15.02
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year
Ended
|
|
|
|
|
|
December 31,
2010
|
|
|
|
|
|
|
Investment
Income
|
|
Dividends (net of foreign taxes, $2,186)
|
|
$
|
8,580,393
|
|
|
|
|
|
Total investment income
|
|
$
|
8,580,393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
Investment adviser fee
|
|
$
|
3,611,518
|
|
|
|
Trustees’ fees and expenses
|
|
|
12,147
|
|
|
|
Custodian fee
|
|
|
186,977
|
|
|
|
Transfer and dividend disbursing agent fees
|
|
|
17,752
|
|
|
|
Legal and accounting services
|
|
|
47,643
|
|
|
|
Printing and postage
|
|
|
98,412
|
|
|
|
Miscellaneous
|
|
|
59,226
|
|
|
|
|
|
Total expenses
|
|
$
|
4,033,675
|
|
|
|
|
|
Deduct —
|
|
|
|
|
|
|
Reduction of custodian fee
|
|
$
|
1,592
|
|
|
|
|
|
Total expense reductions
|
|
$
|
1,592
|
|
|
|
|
|
|
|
|
|
|
|
|
Net expenses
|
|
$
|
4,032,083
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
4,548,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized
and Unrealized Gain (Loss)
|
|
Net realized gain (loss) —
|
|
|
|
|
|
|
Investment transactions
|
|
$
|
18,288,615
|
|
|
|
Written options
|
|
|
(16,451,598
|
)
|
|
|
Foreign currency transactions
|
|
|
(7
|
)
|
|
|
|
|
Net realized gain
|
|
$
|
1,837,010
|
|
|
|
|
|
Change in unrealized appreciation (depreciation) —
|
|
|
|
|
|
|
Investments
|
|
$
|
24,911,125
|
|
|
|
Written options
|
|
|
(874,663
|
)
|
|
|
Foreign currency
|
|
|
36
|
|
|
|
|
|
Net change in unrealized appreciation (depreciation)
|
|
$
|
24,036,498
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized and unrealized gain
|
|
$
|
25,873,508
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
30,421,818
|
|
|
|
|
|
See
notes to financial statements
9
Eaton Vance
Tax-Managed Buy-Write Income
Fund as
of December 31, 2010
FINANCIAL
STATEMENTS CONT’D
Statements
of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
|
Increase (Decrease)
in Net Assets
|
|
December 31,
2010
|
|
|
December 31,
2009
|
|
|
|
|
From operations —
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
4,548,310
|
|
|
$
|
5,477,460
|
|
|
|
Net realized gain from investment transactions, written options
and foreign currency transactions
|
|
|
1,837,010
|
|
|
|
9,657,631
|
|
|
|
Net change in unrealized appreciation (depreciation) from
investments, written options and foreign currency
|
|
|
24,036,498
|
|
|
|
76,723,464
|
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
30,421,818
|
|
|
$
|
91,858,555
|
|
|
|
|
|
Distributions to shareholders —
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
$
|
(4,513,121
|
)
|
|
$
|
(7,383,819
|
)
|
|
|
From net realized gain
|
|
|
(985,128
|
)
|
|
|
—
|
|
|
|
Tax return of capital
|
|
|
(38,801,902
|
)
|
|
|
(36,865,325
|
)
|
|
|
|
|
Total distributions
|
|
$
|
(44,300,151
|
)
|
|
$
|
(44,249,144
|
)
|
|
|
|
|
Capital share transactions —
|
|
|
|
|
|
|
|
|
|
|
Reinvestment of distributions
|
|
$
|
925,672
|
|
|
$
|
135,398
|
|
|
|
|
|
Net increase in net assets from capital share transactions
|
|
$
|
925,672
|
|
|
$
|
135,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets
|
|
$
|
(12,952,661
|
)
|
|
$
|
47,744,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets
|
|
At beginning of year
|
|
$
|
383,356,015
|
|
|
$
|
335,611,206
|
|
|
|
|
|
At end of year
|
|
$
|
370,403,354
|
|
|
$
|
383,356,015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
undistributed
net investment income
included in net assets
|
|
At end of year
|
|
$
|
13,642
|
|
|
$
|
1,234
|
|
|
|
|
|
See
notes to financial statements
10
Eaton Vance
Tax-Managed Buy-Write Income
Fund as
of December 31, 2010
FINANCIAL
STATEMENTS CONT’D
Financial
Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
|
|
Net asset value — Beginning of year
|
|
$
|
15.590
|
|
|
$
|
13.650
|
|
|
$
|
19.760
|
|
|
$
|
20.320
|
|
|
$
|
19.400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(Loss) From Operations
|
|
Net investment
income(1)
|
|
$
|
0.185
|
|
|
$
|
0.223
|
|
|
$
|
0.281
|
|
|
$
|
0.230
|
|
|
$
|
0.226
|
|
|
|
Net realized and unrealized gain (loss)
|
|
|
1.045
|
|
|
|
3.517
|
|
|
|
(4.591
|
)
|
|
|
1.010
|
|
|
|
2.496
|
|
|
|
|
|
Total income (loss) from operations
|
|
$
|
1.230
|
|
|
$
|
3.740
|
|
|
$
|
(4.310
|
)
|
|
$
|
1.240
|
|
|
$
|
2.722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions
|
|
From net investment income
|
|
$
|
(0.183
|
)
|
|
$
|
(0.300
|
)
|
|
$
|
(0.280
|
)
|
|
$
|
(0.228
|
)
|
|
$
|
(0.226
|
)
|
|
|
From net realized gain
|
|
|
(0.040
|
)
|
|
|
—
|
|
|
|
(0.470
|
)
|
|
|
(0.693
|
)
|
|
|
(0.078
|
)
|
|
|
Tax return of capital
|
|
|
(1.577
|
)
|
|
|
(1.500
|
)
|
|
|
(1.050
|
)
|
|
|
(0.879
|
)
|
|
|
(1.496
|
)
|
|
|
|
|
Total distributions
|
|
$
|
(1.800
|
)
|
|
$
|
(1.800
|
)
|
|
$
|
(1.800
|
)
|
|
$
|
(1.800
|
)
|
|
$
|
(1.800
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Offering costs charged to paid-in
capital(1)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.002
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value — End of year
|
|
$
|
15.020
|
|
|
$
|
15.590
|
|
|
$
|
13.650
|
|
|
$
|
19.760
|
|
|
$
|
20.320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value — End of year
|
|
$
|
14.410
|
|
|
$
|
16.850
|
|
|
$
|
12.530
|
|
|
$
|
17.430
|
|
|
$
|
21.100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Net Asset
Value(2)
|
|
|
8.82
|
%
|
|
|
30.53
|
%
|
|
|
(22.44
|
)%(3)
|
|
|
6.62
|
%
|
|
|
14.88
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Market
Value(2)
|
|
|
(3.47
|
)%
|
|
|
53.69
|
%
|
|
|
(19.29
|
)%(3)
|
|
|
(9.43
|
)%
|
|
|
27.44
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental
Data
|
|
Net assets, end of year (000’s omitted)
|
|
$
|
370,403
|
|
|
$
|
383,356
|
|
|
$
|
335,611
|
|
|
$
|
485,633
|
|
|
$
|
498,755
|
|
|
|
Ratios (as a percentage of average daily net assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses(4)
|
|
|
1.12
|
%
|
|
|
1.12
|
%
|
|
|
1.11
|
%
|
|
|
1.11
|
%
|
|
|
1.10
|
%
|
|
|
Net investment income
|
|
|
1.26
|
%
|
|
|
1.61
|
%
|
|
|
1.68
|
%
|
|
|
1.15
|
%
|
|
|
1.15
|
%
|
|
|
Portfolio Turnover
|
|
|
11
|
%
|
|
|
34
|
%
|
|
|
49
|
%
|
|
|
35
|
%
|
|
|
20
|
%
|
|
|
|
|
|
|
|
(1)
|
|
Computed using average shares outstanding. |
|
(2)
|
|
Returns are historical and are calculated by determining the
percentage change in net asset value or market value with all
distributions reinvested. |
|
(3)
|
|
During the year ended December 31, 2008, the
sub-adviser
reimbursed the Fund for a realized loss on the disposal of an
investment security which did not meet investment guidelines.
The loss was less than $0.01 per share and had no effect on
total return. |
|
(4)
|
|
Excludes the effect of custody fee credits, if any, of less than
0.005%. |
See
notes to financial statements
11
Eaton Vance
Tax-Managed Buy-Write Income
Fund as
of December 31, 2010
NOTES TO FINANCIAL STATEMENTS
1 Significant
Accounting Policies
Eaton Vance Tax-Managed Buy-Write Income Fund (the Fund) is a
Massachusetts business trust registered under the Investment
Company Act of 1940, as amended (the 1940 Act), as a
diversified, closed-end management investment company. The
Fund’s primary investment objective is to provide current
income and gains, with a secondary objective of capital
appreciation.
The following is a summary of significant accounting policies of
the Fund. The policies are in conformity with accounting
principles generally accepted in the United States of America.
A Investment
Valuation — Equity securities (including common
shares of closed-end investment companies) listed on a U.S.
securities exchange generally are valued at the last sale or
closing price on the day of valuation or, if no sales took place
on such date, at the mean between the closing bid and asked
prices therefore on the exchange where such securities are
principally traded. Equity securities listed on the NASDAQ
Global or Global Select Market generally are valued at the
NASDAQ official closing price. Unlisted or listed securities for
which closing sales prices or closing quotations are not
available are valued at the mean between the latest available
bid and asked prices or, in the case of preferred equity
securities that are not listed or traded in the over-the-counter
market, by a third party pricing service that will use various
techniques that consider factors including, but not limited to,
prices or yields of securities with similar characteristics,
benchmark yields, broker/dealer quotes, quotes of underlying
common stock, issuer spreads, as well as industry and economic
events. Exchange-traded options are valued at the mean between
the bid and asked prices at valuation time as reported by the
Options Price Reporting Authority for U.S. listed options or by
the relevant exchange or board of trade for
non-U.S.
listed options.
Over-the-counter
options are valued by a third party pricing service using
techniques that consider factors including the value of the
underlying instrument, the volatility of the underlying
instrument and the period of time until option expiration.
Foreign securities and currencies are valued in U.S. dollars,
based on foreign currency exchange rate quotations supplied by a
third party pricing service. The pricing service uses a
proprietary model to determine the exchange rate. Inputs to the
model include reported trades and implied bid/ask spreads. The
daily valuation of exchange-traded foreign securities generally
is determined as of the close of trading on the principal
exchange on which such securities trade. Events occurring after
the close of trading on foreign exchanges may result in
adjustments to the valuation of foreign securities to more
accurately reflect their fair value as of the close of regular
trading on the New York Stock Exchange. When valuing foreign
equity securities that meet certain criteria, the Trustees have
approved the use of a fair value service that values such
securities to reflect market trading that occurs after the close
of the applicable foreign markets of comparable securities or
other instruments that have a strong correlation to the
fair-valued securities. Investments for which valuations or
market quotations are not readily available or are deemed
unreliable are valued at fair value using methods determined in
good faith by or at the direction of the Trustees of the Fund in
a manner that most fairly reflects the security’s value, or
the amount that the Fund might reasonably expect to receive for
the security upon its current sale in the ordinary course. Each
such determination is based on a consideration of all relevant
factors, which are likely to vary from one pricing context to
another. These factors may include, but are not limited to, the
type of security, the existence of any contractual restrictions
on the security’s disposition, the price and extent of
public trading in similar securities of the issuer or of
comparable companies or entities, quotations or relevant
information obtained from broker-dealers or other market
participants, information obtained from the issuer, analysts,
and/or the
appropriate stock exchange (for exchange-traded securities), an
analysis of the company’s or entity’s financial
condition, and an evaluation of the forces that influence the
issuer and the market(s) in which the security is purchased and
sold.
B Investment
Transactions — Investment transactions for
financial statement purposes are accounted for on a trade date
basis. Realized gains and losses on investments sold are
determined on the basis of identified cost.
C Income —
Dividend income is recorded on the ex-dividend date for
dividends received in cash
and/or
securities. However, if the ex-dividend date has passed, certain
dividends from foreign securities are recorded as the Fund is
informed of the ex-dividend date. Withholding taxes on foreign
dividends and capital gains have been provided for in accordance
with the Fund’s understanding of the applicable
countries’ tax rules and rates.
D Federal
Taxes — The Fund’s policy is to comply
with the provisions of the Internal Revenue Code applicable to
regulated investment companies and to distribute to shareholders
each year substantially all of its net investment income, and
all or substantially all of its net realized capital gains.
Accordingly, no provision for federal income or excise tax is
necessary.
As of December 31, 2010, the Fund had no uncertain tax
positions that would require financial statement recognition,
de-recognition, or disclosure. Each of the Fund’s federal
tax returns filed in the
3-year
period ended December 31, 2010 remains subject to
examination by the Internal Revenue Service.
12
Eaton Vance
Tax-Managed Buy-Write Income
Fund as
of December 31, 2010
NOTES TO FINANCIAL
STATEMENTS CONT’D
E Expense
Reduction — State Street Bank and
Trust Company (SSBT) serves as custodian of the Fund.
Pursuant to the custodian agreement, SSBT receives a fee reduced
by credits, which are determined based on the average daily cash
balance the Fund maintains with SSBT. All credit balances, if
any, used to reduce the Fund’s custodian fees are reported
as a reduction of expenses in the Statement of Operations.
F Foreign
Currency Translation — Investment valuations,
other assets, and liabilities initially expressed in foreign
currencies are translated each business day into U.S. dollars
based upon current exchange rates. Purchases and sales of
foreign investment securities and income and expenses
denominated in foreign currencies are translated into U.S.
dollars based upon currency exchange rates in effect on the
respective dates of such transactions. Recognized gains or
losses on investment transactions attributable to changes in
foreign currency exchange rates are recorded for financial
statement purposes as net realized gains and losses on
investments. That portion of unrealized gains and losses on
investments that results from fluctuations in foreign currency
exchange rates is not separately disclosed.
G Use
of Estimates — The preparation of the financial
statements in conformity with accounting principles generally
accepted in the United States of America requires management to
make estimates and assumptions that affect the reported amounts
of assets and liabilities at the date of the financial
statements and the reported amounts of income and expense during
the reporting period. Actual results could differ from
those estimates.
H Indemnifications —
Under the Fund’s organizational documents, its
officers and Trustees may be indemnified against certain
liabilities and expenses arising out of the performance of their
duties to the Fund. Under Massachusetts law, if certain
conditions prevail, shareholders of a Massachusetts business
trust (such as the Fund) could be deemed to have personal
liability for the obligations of the Fund. However, the
Fund’s Declaration of Trust contains an express disclaimer
of liability on the part of Fund shareholders and the By-laws
provide that the Fund shall assume the defense on behalf of any
Fund shareholders. Moreover, the By-laws also provide for
indemnification out of Fund property of any shareholder held
personally liable solely by reason of being or having been a
shareholder for all loss or expense arising from such liability.
Additionally, in the normal course of business, the Fund enters
into agreements with service providers that may contain
indemnification clauses. The Fund’s maximum exposure under
these arrangements is unknown as this would involve future
claims that may be made against the Fund that have not yet
occurred.
I Written
Options — Upon the writing of a call or a put
option, the premium received by the Fund is included in the
Statement of Assets and Liabilities as a liability. The amount
of the liability is subsequently
marked-to-market
to reflect the current market value of the option written, in
accordance with the Fund’s policies on investment
valuations discussed above. Premiums received from writing
options which expire are treated as realized gains. Premiums
received from writing options which are exercised or are closed
are added to or offset against the proceeds or amount paid on
the transaction to determine the realized gain or loss. As the
writer of an index put option, the Fund is responsible, during
the option’s life, for any decreases in the value of the
index below the strike price of the put option. When an index
put option is exercised, the Fund will be required to deliver an
amount of cash determined by the excess of the strike price of
the option over the value of the index at contract termination.
As the writer of an index call option, the Fund is responsible,
during the option’s life, for any increases in the value of
the index above the strike price of the call option. When an
index call option is exercised, the Fund will be required to
deliver an amount of cash determined by the excess of the value
of the index at contract termination over the strike price of
the option. If a put option on a security is exercised, the
premium reduces the cost basis of the securities purchased by
the Fund. The Fund, as a writer of an option, may have no
control over whether the underlying securities or other assets
may be sold (call) or purchased (put) and, as a result, bears
the market risk of an unfavorable change in the price of the
securities or other assets underlying the written option. The
Fund may also bear the risk of not being able to enter into a
closing transaction if a liquid secondary market does not exist.
2 Distributions
to Shareholders
Subject to its Managed Distribution Plan, the Fund intends to
make quarterly distributions from its cash available for
distribution, which consists of the Fund’s dividends and
interest income after payment of Fund expenses, net option
premiums and net realized and unrealized gains on stock
investments. The Fund intends to distribute all or substantially
all of its net realized capital gains (reduced by available
capital loss carryforwards from prior years, if any).
Distributions are recorded on the ex-dividend date. The Fund
distinguishes between distributions on a tax basis and a
financial reporting basis. Accounting principles generally
accepted in the United States of America require that only
distributions in excess of tax basis earnings and profits be
reported in the financial statements as a return of capital.
Permanent differences between book and tax accounting relating
to distributions are reclassified to paid-in capital. For tax
purposes, distributions from short-term
13
Eaton Vance
Tax-Managed Buy-Write Income
Fund as
of December 31, 2010
NOTES TO FINANCIAL
STATEMENTS CONT’D
capital gains are considered to be from ordinary income.
Distributions in any year may include a substantial return of
capital component.
The tax character of distributions declared for the years ended
December 31, 2010 and December 31, 2009 was
as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
Distributions declared from:
|
|
|
|
|
|
|
|
|
|
|
Ordinary income
|
|
$
|
4,513,121
|
|
|
$
|
7,383,819
|
|
|
|
Long-term capital gains
|
|
$
|
985,128
|
|
|
$
|
—
|
|
|
|
Tax return of capital
|
|
$
|
38,801,902
|
|
|
$
|
36,865,325
|
|
|
|
During the year ended December 31, 2010, accumulated net
realized gain was increased by $22,781 and accumulated
undistributed net investment income was decreased by $22,781 due
to differences between book and tax accounting, primarily for
foreign currency gain (loss) and distributions from real estate
investment trusts (REITs). These reclassifications had no effect
on the net assets or net asset value per share of the Fund.
As of December 31, 2010, the components of distributable
earnings (accumulated losses) and unrealized appreciation
(depreciation) on a tax basis were as follows:
|
|
|
|
|
|
|
Net unrealized appreciation
|
|
$
|
75,512,348
|
|
|
|
The differences between components of distributable earnings
(accumulated losses) on a tax basis and the amounts reflected in
the Statement of Assets and Liabilities are primarily due to
wash sales, written options contracts and distributions from
REITs.
3 Investment
Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Eaton Vance Management
(EVM) as compensation for management and investment advisory
services rendered to the Fund. The fee is computed at an annual
rate of 1.00% of the Fund’s average daily gross assets and
is payable monthly. Gross assets as referred to herein represent
net assets plus obligations attributable to investment leverage,
if any. For the year ended December 31, 2010, the
investment adviser fee amounted to $3,611,518. Pursuant to a
sub-advisory
agreement, EVM has delegated a portion of the investment
management to Parametric Portfolio Associates LLC (Parametric),
an affiliate of EVM. EVM pays Parametric a portion of its
advisory fee for
sub-advisory
services provided to the Fund. EVM also serves as administrator
of the Fund, but receives no compensation.
Except for Trustees of the Fund who are not members of
EVM’s organization, officers and Trustees receive
remuneration for their services to the Fund out of the
investment adviser fee. Trustees of the Fund who are not
affiliated with EVM may elect to defer receipt of all or a
percentage of their annual fees in accordance with the terms of
the Trustees Deferred Compensation Plan. For the year ended
December 31, 2010, no significant amounts have been
deferred. Certain officers and Trustees of the Fund are officers
of EVM.
4 Purchases
and Sales of Investments
Purchases and sales of investments, other than short-term
obligations, aggregated $40,924,041 and $96,107,284,
respectively, for the year ended December 31, 2010.
5 Common
Shares of Beneficial Interest
Common shares issued pursuant to the Fund’s dividend
reinvestment plan for the years ended December 31, 2010 and
December 31, 2009 were 63,210 and 9,529, respectively.
6 Federal
Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of
investments of the Fund at December 31, 2010, as determined
on a federal income tax basis, were as follows:
|
|
|
|
|
|
|
Aggregate cost
|
|
$
|
299,191,663
|
|
|
|
|
|
Gross unrealized appreciation
|
|
$
|
82,735,677
|
|
|
|
Gross unrealized depreciation
|
|
|
(7,223,365
|
)
|
|
|
|
|
Net unrealized appreciation
|
|
$
|
75,512,312
|
|
|
|
|
|
7 Financial Instruments
The Fund may trade in financial instruments with off-balance
sheet risk in the normal course of its investing activities.
These financial instruments may include written options and may
involve, to a varying degree, elements of risk in excess of the
amounts recognized for financial statement purposes. The
notional or contractual amounts of these instruments represent
the investment the Fund has in particular classes of financial
instruments and do not necessarily represent the amounts
potentially subject to risk. The measurement of the risks
associated with these instruments is meaningful only when all
related and offsetting transactions are considered. A summary of
written call options at December 31, 2010 is included in
the Portfolio of Investments.
Written call options activity for the year ended
December 31, 2010 was as follows:
14
Eaton Vance
Tax-Managed Buy-Write Income
Fund as
of December 31, 2010
NOTES TO FINANCIAL
STATEMENTS CONT’D
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
|
Premiums
|
|
|
|
|
|
Contracts
|
|
|
Received
|
|
|
|
|
Outstanding, beginning of year
|
|
|
3,368
|
|
|
$
|
4,528,478
|
|
|
|
Options written
|
|
|
37,900
|
|
|
|
69,122,013
|
|
|
|
Options terminated in closing purchase transactions
|
|
|
(35,888
|
)
|
|
|
(62,556,429
|
)
|
|
|
Options expired
|
|
|
(2,420
|
)
|
|
|
(5,975,527
|
)
|
|
|
|
|
Outstanding, end of year
|
|
|
2,960
|
|
|
$
|
5,118,535
|
|
|
|
|
|
All of the assets of the Fund are subject to segregation to
satisfy the requirements of the escrow agent. At
December 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. The Fund is not subject to counterparty credit
risk with respect to its written options as the Fund, not the
counterparty, is obligated to perform under
such derivatives.
The fair value of derivative instruments (not considered to be
hedging instruments for accounting disclosure purposes) and
whose primary underlying risk exposure is equity price risk at
December 31, 2010 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair
Value
|
|
|
|
Derivative
|
|
Asset
Derivatives
|
|
|
Liability
Derivatives(1)
|
|
|
|
|
Written options
|
|
$
|
—
|
|
|
$
|
(5,374,950
|
)
|
|
|
|
|
|
(1)
|
|
Statement of Assets and Liabilities location: Written options
outstanding, at value. |
The effect of derivative instruments (not considered to be
hedging instruments for accounting disclosure purposes) on the
Statement of Operations and whose primary underlying risk
exposure is equity price risk for the year ended
December 31, 2010 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
|
|
|
|
|
|
|
|
|
Unrealized
|
|
|
|
|
|
Realized Gain
|
|
|
Appreciation
|
|
|
|
|
|
(Loss) on
|
|
|
(Depreciation)
on
|
|
|
|
|
|
Derivatives
|
|
|
Derivatives
|
|
|
|
|
|
Recognized in
|
|
|
Recognized in
|
|
|
|
Derivative
|
|
Income(1)
|
|
|
Income(2)
|
|
|
|
|
Written options
|
|
$
|
(16,451,598
|
)
|
|
$
|
(874,663
|
)
|
|
|
|
|
|
(1)
|
|
Statement of Operations location: Net realized gain
(loss) – Written options. |
|
(2)
|
|
Statement of Operations location: Change in unrealized
appreciation (depreciation) – Written options. |
8 Fair
Value Measurements
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 December 31, 2010, the hierarchy of inputs used in
valuing the Fund’s investments, which are carried at value,
were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quoted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prices in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
|
|
|
Significant
|
|
|
|
|
|
|
|
|
|
|
|
Markets for
|
|
|
Other
|
|
|
Significant
|
|
|
|
|
|
|
|
|
Identical
|
|
|
Observable
|
|
|
Unobservable
|
|
|
|
|
|
|
|
|
Assets
|
|
|
Inputs
|
|
|
Inputs
|
|
|
|
|
|
|
|
|
|
Asset
Description
|
|
(Level
1)
|
|
|
(Level
2)
|
|
|
(Level
3)
|
|
|
Total
|
|
|
|
|
Common Stocks
|
|
$
|
374,703,975
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
374,703,975
|
|
|
|
|
|
Total Investments
|
|
$
|
374,703,975
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
374,703,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Call Options Written
|
|
$
|
(5,374,950
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5,374,950
|
)
|
|
|
|
|
Total
|
|
$
|
(5,374,950
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5,374,950
|
)
|
|
|
|
|
The level classification by major category of investments is the
same as the category presentation in the Portfolio
of Investments.
The Fund held no investments or other financial instruments as
of December 31, 2009 whose fair value was determined using
Level 3 inputs. At December 31, 2010, the value of
investments transferred between Level 1 and Level 2,
if any, during the year then ended was not significant.
15
Eaton Vance
Tax-Managed Buy-Write Income
Fund as
of December 31, 2010
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Trustees
and Shareholders of
Eaton Vance Tax-Managed Buy-Write
Income Fund:
We have audited the accompanying statement of assets and
liabilities of Eaton Vance Tax-Managed Buy-Write Income Fund
(the “Fund”), including the portfolio of investments,
as of December 31, 2010, and the related statement of
operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended,
and the financial highlights for each of the five years in the
period then ended. These financial statements and financial
highlights are the responsibility of the Fund’s management.
Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an
audit of its internal control over financial reporting. Our
audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund’s
internal control over financial reporting. Accordingly, we
express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. Our
procedures included confirmation of securities owned as of
December 31, 2010, by correspondence with the custodian and
brokers; where replies were not received from brokers, we
performed other auditing procedures. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all material
respects, the financial position of Eaton Vance Tax-Managed
Buy-Write Income Fund as of December 31, 2010, the results
of its operations for the year then ended, the changes in its
net assets for each of the two years in the period then ended,
and the financial highlights for each of the five years in the
period then ended, in conformity with accounting principles
generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 15, 2011
16
Eaton Vance
Tax-Managed Buy-Write Income
Fund as
of December 31, 2010
FEDERAL TAX
INFORMATION (Unaudited)
The
Form 1099-DIV
you received in January 2011 showed the tax status of all
distributions paid to your account in calendar year 2010.
Shareholders are advised to consult their own tax adviser with
respect to the tax consequences of their investment in the Fund.
As required by the Internal Revenue Code
and/or
regulations, shareholders must be notified within 60 days
of the Fund’s fiscal year end regarding the status of
qualified dividend income for individuals, the dividends
received deduction for corporations and capital gains dividends.
Qualified Dividend Income. The Fund designates
approximately $8,319,576, or up to the maximum amount of such
dividends allowable pursuant to the Internal Revenue Code, as
qualified dividend income eligible for the reduced tax rate of
15%.
Dividends Received Deduction. Corporate shareholders
are generally entitled to take the dividends received deduction
on the portion of the Fund’s dividend distribution that
qualifies under tax law. For the Fund’s fiscal 2010
ordinary income dividends, 100% qualifies for the corporate
dividends received deduction.
Capital Gains Dividends. The Fund designates
$985,128 as a capital gain dividend.
17
Eaton Vance
Tax-Managed Buy-Write Income
Fund
DIVIDEND REINVESTMENT PLAN
The Fund offers a dividend reinvestment plan (the Plan) pursuant
to which shareholders may elect to have distributions
automatically reinvested in common shares (the Shares) of the
Fund. American Stock Transfer & Trust Company
(AST), the Fund’s Transfer Agent, serves as agent for the
shareholders in administering the Plan (Plan Agent). You may
elect to participate in the Plan by completing the Dividend
Reinvestment Plan Application Form. If you do not participate,
you will receive all distributions in cash paid by check mailed
directly to you by AST as Plan Agent. On the distribution
payment date, if the net asset value per Share is equal to or
less than the market price per Share plus estimated brokerage
commissions, then new Shares will be issued. The number of
Shares shall be determined by the greater of the net asset value
per Share or 95% of the market price. Otherwise, Shares
generally will be purchased on the open market by the Plan
Agent. Distributions subject to income tax (if any) are taxable
whether or not shares are reinvested.
If your Shares are in the name of a brokerage firm, bank, or
other nominee, you can ask the firm or nominee to participate in
the Plan on your behalf. If the nominee does not offer the Plan,
you will need to request that your Shares be re-registered in
your name with AST or you will not be able to participate.
The Plan Agent’s service fee for handling distributions
will be paid by the Fund. Each participant will be charged their
pro-rata share of brokerage commissions on all open-market
purchases.
Plan participants may withdraw from the Plan at any time by
writing to the Plan Agent at the address noted on the following
page. If you withdraw, you will receive shares in your name for
all Shares credited to your account under the Plan. If a
participant elects by written notice to the Plan Agent to have
the Plan Agent sell part or all of his or her Shares and remit
the proceeds, the Plan Agent is authorized to deduct a $5.00 fee
plus brokerage commissions from the proceeds.
If you wish to participate in the Plan and your Shares are held
in your own name, you may complete the form on the following
page and deliver it to the Plan Agent.
Any inquiries regarding the Plan can be directed to the Plan
Agent at 1-866-439-6787.
18
Eaton Vance
Tax-Managed Buy-Write Income
Fund
APPLICATION FOR PARTICIPATION IN
DIVIDEND REINVESTMENT PLAN
This form is for shareholders who hold their common shares in
their own names. If your common shares are held in the name of a
brokerage firm, bank, or other nominee, you should contact your
nominee to see if it will participate in the Plan on your
behalf. If you wish to participate in the Plan, but your
brokerage firm, bank, or nominee is unable to participate on
your behalf, you should request that your common shares be
re-registered in your own name which will enable your
participation in the Plan.
The following authorization and appointment is given with the
understanding that I may terminate it at any time by terminating
my participation in the Plan as provided in the terms and
conditions of the Plan.
Please print exact name on account:
Shareholder
signature
Date
Shareholder
signature
Date
Please sign exactly as your common shares are registered. All
persons whose names appear on the share certificate must sign.
YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE
YOUR DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.
This authorization form, when signed, should be mailed to the
following address:
Eaton Vance Tax-Managed Buy-Write Income Fund
c/o American Stock Transfer & Trust Company
P.O. Box 922
Wall Street Station
New York, NY
10269-0560
Number of
Employees
The Fund is organized as a Massachusetts business trust and is
registered under the Investment Company Act of 1940, as amended,
as a closed-end management investment company and has no
employees.
Number of
Shareholders
As of December 31, 2010, our records indicate that there
are 56 registered shareholders and approximately 17,949
shareholders owning the Fund shares in street name, such as
through brokers, banks, and financial intermediaries.
If you are a street name shareholder and wish to receive Fund
reports directly, which contain important information about the
Fund, please write or call:
Eaton Vance Distributors, Inc.
Two International Place
Boston, MA 02110
1-800-262-1122
New York
Stock Exchange symbol
The New York Stock Exchange symbol is ETB.
19
Eaton Vance
Tax-Managed Buy-Write Income
Fund
BOARD OF TRUSTEES’ CONTRACT
APPROVAL
Overview
of the Contract Review Process
The Investment Company Act of 1940, as amended (the “1940
Act”), provides, in substance, that each investment
advisory agreement between a fund and its investment adviser
will continue in effect from year to year only if its
continuance is approved at least annually by the fund’s
board of trustees, including by a vote of a majority of the
trustees who are not “interested persons” of the fund
(“Independent Trustees”), cast in person at a meeting
called for the purpose of considering such approval.
At a meeting of the Boards of Trustees (each a
“Board”) of the Eaton Vance group of mutual funds (the
“Eaton Vance Funds”) held on April 26, 2010, the
Board, including a majority of the Independent Trustees, voted
to approve continuation of existing advisory and
sub-advisory
agreements for the Eaton Vance Funds for an additional
one-year
period. In voting its approval, the Board relied upon the
affirmative recommendation of the Contract Review Committee of
the Board, which is a committee comprised exclusively of
Independent Trustees. Prior to making its recommendation, the
Contract Review Committee reviewed information furnished for a
series of meetings of the Contract Review Committee held between
February and April 2010. Such information included, among
other things, the following:
Information
about Fees, Performance and Expenses
|
|
|
|
•
|
An independent report comparing the advisory and related fees
paid by each fund with fees paid by comparable funds;
|
|
•
|
An independent report comparing each fund’s total expense
ratio and its components to comparable funds;
|
|
•
|
An independent report comparing the investment performance of
each fund (including yield where relevant) to the investment
performance of comparable funds over various time periods;
|
|
•
|
Data regarding investment performance in comparison to relevant
peer groups of similarly managed funds and appropriate indices;
|
|
•
|
For each fund, comparative information concerning the fees
charged and the services provided by each adviser in managing
other mutual funds and institutional accounts using investment
strategies and techniques similar to those used in managing such
fund;
|
|
•
|
Profitability analyses for each adviser with respect to each
fund;
|
Information
about Portfolio Management
|
|
|
|
•
|
Descriptions of the investment management services provided to
each fund, including the investment strategies and processes
employed, and any changes in portfolio management processes and
personnel;
|
|
•
|
Information concerning the allocation of brokerage and the
benefits received by each adviser as a result of brokerage
allocation, including information concerning the acquisition of
research through “soft dollar” benefits received in
connection with the funds’ brokerage, and the
implementation of a soft dollar reimbursement program
established with respect to the funds;
|
|
•
|
Data relating to portfolio turnover rates of each fund;
|
|
•
|
The procedures and processes used to determine the fair value of
fund assets and actions taken to monitor and test the
effectiveness of such procedures and processes;
|
Information
about each Adviser
|
|
|
|
•
|
Reports detailing the financial results and condition of each
adviser;
|
|
•
|
Descriptions of the qualifications, education and experience of
the individual investment professionals whose responsibilities
include portfolio management and investment research for the
funds, and information relating to their compensation and
responsibilities with respect to managing other mutual funds and
investment accounts;
|
|
•
|
Copies of the Codes of Ethics of each adviser and its
affiliates, together with information relating to compliance
with and the administration of such codes;
|
|
•
|
Copies of or descriptions of each adviser’s policies and
procedures relating to proxy voting, the handling of corporate
actions and class actions;
|
|
•
|
Information concerning the resources devoted to compliance
efforts undertaken by each adviser and its affiliates on behalf
of the funds (including descriptions of various compliance
programs) and their record of compliance with investment
policies and restrictions, including policies with respect to
market-timing, late trading and selective portfolio disclosure,
and with policies on personal securities transactions;
|
|
•
|
Descriptions of the business continuity and disaster recovery
plans of each adviser and its affiliates;
|
|
•
|
A description of Eaton Vance Management’s procedures for
overseeing third party advisers and
sub-advisers;
|
Other
Relevant Information
|
|
|
|
•
|
Information concerning the nature, cost and character of the
administrative and other non-investment management services
provided by Eaton Vance Management and its affiliates;
|
|
•
|
Information concerning management of the relationship with the
custodian, subcustodians and fund accountants by each adviser or
the funds’ administrator; and
|
|
•
|
The terms of each advisory agreement.
|
20
Eaton Vance
Tax-Managed Buy-Write Income
Fund
BOARD OF TRUSTEES’ CONTRACT
APPROVAL CONT’D
In addition to the information identified above, the Contract
Review Committee considered information provided from time to
time by each adviser throughout the year at meetings of the
Board and its committees. Over the course of the twelve-month
period ended April 30, 2010, with respect to one or more
Funds, the Board met ten times and the Contract Review
Committee, the Audit Committee, the Governance Committee, the
Portfolio Management Committee and the Compliance Reports and
Regulatory Matters Committee, each of which is a Committee
comprised solely of Independent Trustees, met nine, thirteen,
three, eight and fifteen times, respectively. At such meetings,
the Trustees received, among other things, presentations by the
portfolio managers and other investment professionals of each
adviser relating to the investment performance of each fund and
the investment strategies used in pursuing the fund’s
investment objective including, where relevant, the use of
derivative instruments, as well as trading policies and
procedures and risk management techniques.
For funds that invest through one or more underlying portfolios,
the Board considered similar information about the portfolio(s)
when considering the approval of advisory agreements. In
addition, in cases where the fund’s investment adviser has
engaged a
sub-adviser,
the Board considered similar information about the
sub-adviser
when considering the approval of any
sub-advisory
agreement.
The Contract Review Committee was assisted throughout the
contract review process by Goodwin Procter LLP, legal counsel
for the Independent Trustees. The members of the Contract Review
Committee relied upon the advice of such counsel and their own
business judgment in determining the material factors to be
considered in evaluating each advisory and
sub-advisory
agreement and the weight to be given to each such factor. The
conclusions reached with respect to each advisory and
sub-advisory
agreement were based on a comprehensive evaluation of all the
information provided and not any single factor. Moreover, each
member of the Contract Review Committee may have placed varying
emphasis on particular factors in reaching conclusions with
respect to each advisory and
sub-advisory
agreement.
Results
of the Process
Based on its consideration of the foregoing, and such other
information as it deemed relevant, including the factors and
conclusions described below, the Contract Review Committee
concluded that the continuance of the investment advisory
agreement of Eaton Vance Tax-Managed Buy-Write Income Fund (the
“Fund”) with Eaton Vance Management (the
“Adviser”) and the
sub-advisory
agreement with Parametric Portfolio Associates LLC (the
“Sub-adviser”),
including their fee structures, is in the interests of
shareholders and, therefore, the Contract Review Committee
recommended to the Board approval of each agreement. The Board
accepted the recommendation of the Contract Review Committee as
well as the factors considered and conclusions reached by the
Contract Review Committee with respect to the agreements.
Accordingly, the Board, including a majority of the Independent
Trustees, voted to approve continuation of the investment
advisory agreement and
sub-advisory
agreement for the Fund.
Nature,
Extent and Quality of Services
In considering whether to approve the investment advisory
agreement and
sub-advisory
agreement of the Fund, the Board evaluated the nature, extent
and quality of services provided to the Fund by the Adviser and
the
Sub-adviser.
The Board considered the Adviser’s and the
Sub-adviser’s
management capabilities and investment process with respect to
the types of investments held by the Fund, including the
education, experience and number of its investment professionals
and other personnel who provide portfolio management, investment
research, and similar services to the Fund and whose
responsibilities include supervising the
Sub-adviser
and coordinating its activities in implementing the Fund’s
investment strategy. The Board evaluated the abilities and
experience of such investment personnel in analyzing factors
such as tax efficiency and special considerations relevant to
investing in stocks and selling call options on the S&P 500
Index. With respect to the
Sub-adviser,
the Board noted the
Sub-adviser’s
experience in deploying quantitative-based investment
strategies. The Board also took into account the resources
dedicated to portfolio management and other services, including
the compensation methods to recruit and retain investment
personnel, and the time and attention devoted to the Fund by
senior management.
The Board also reviewed the compliance programs of the Adviser
and relevant affiliates thereof, including the
Sub-adviser.
Among other matters, the Board considered compliance and
reporting matters relating to personal trading by investment
personnel, selective disclosure of portfolio holdings, late
trading, frequent trading, portfolio valuation, business
continuity and the allocation of investment opportunities. The
Board also evaluated the responses of the Adviser and its
affiliates to requests in recent years from regulatory
authorities such as the Securities and Exchange Commission and
the Financial Industry Regulatory Authority.
The Board considered shareholder and other administrative
services provided or managed by the Adviser and its affiliates,
including transfer agency and accounting services. The Board
evaluated the benefits to shareholders of investing in a fund
that is a part of a large family of funds.
21
Eaton Vance
Tax-Managed Buy-Write Income
Fund
BOARD OF TRUSTEES’ CONTRACT
APPROVAL CONT’D
After consideration of the foregoing factors, among others, the
Board concluded that the nature, extent and quality of services
provided by the Adviser and
Sub-adviser,
taken as a whole, are appropriate and consistent with the terms
of the investment advisory agreement and
sub-advisory
agreement.
Fund Performance
The Board compared the Fund’s investment performance to a
relevant universe of comparable funds identified by an
independent data provider as well as a peer group of similarly
managed funds and appropriate benchmark indices. The Board
reviewed comparative performance data for the
one- and
three-year
periods ended September 30, 2009 for the Fund. The Board
concluded that the performance of the Fund was satisfactory.
Management
Fees and Expenses
The Board reviewed contractual investment advisory fee rates
payable by the Fund (referred to as “management
fees”). As part of its review, the Board considered the
management fees and the Fund’s total expense ratio for the
year ended September 30, 2009, as compared to a group of
similarly managed funds selected by an independent data
provider. The Board also considered factors that had an impact
on Fund expense ratios, as identified by management in response
to inquiries from the Contract Review Committee, as well as
actions being taken to reduce expenses at the Eaton Vance fund
complex level.
After reviewing the foregoing information, and in light of the
nature, extent and quality of the services provided by the
Adviser and the
Sub-adviser,
the Board concluded that the management fees charged for
advisory and related services are reasonable.
Profitability
The Board reviewed the level of profits realized by the Adviser
and relevant affiliates thereof, including the
Sub-adviser,
in providing investment advisory and administrative services to
the Fund and to all Eaton Vance Funds as a group. The Board
considered the level of profits realized with and without regard
to revenue sharing or other payments by the Adviser and its
affiliates to third parties in respect of distribution services.
The Board also considered other direct or indirect benefits
received by the Adviser and its affiliates in connection with
its relationship with the Fund, including the benefits of
research services that may be available to the Adviser or
Sub-adviser
and its affiliates as a result of securities transactions
effected for the Fund and other investment advisory clients.
The Board concluded that, in light of the foregoing factors and
the nature, extent and quality of the services rendered, the
profits realized by the Adviser and its affiliates, including
the
Sub-adviser,
are reasonable.
Economies
of Scale
In reviewing management fees and profitability, the Board also
considered the extent to which the Adviser and its affiliates,
on the one hand, and the Fund, on the other hand, can expect to
realize benefits from economies of scale as the assets of the
Fund increase. The Board acknowledged the difficulty in
accurately measuring the benefits resulting from the economies
of scale with respect to the management of any specific fund or
group of funds. The Board also considered the fact that the Fund
is not continuously offered and concluded that, in light of the
level of the Adviser’s profits with respect to the Fund,
the implementation of breakpoints in the advisory fee schedule
is not appropriate at this time. Based upon the foregoing, the
Board concluded that the benefits from economies of scale are
currently being shared equitably by the Adviser and its
affiliates and the Fund.
22
Eaton Vance
Tax-Managed Buy-Write Income
Fund
MANAGEMENT AND ORGANIZATION
Fund Management. The Trustees of Eaton Vance
Tax Managed Buy-Write Income Fund (the Fund) are responsible for
the overall management and supervision of the Fund’s
affairs. The Trustees and officers of the Fund are listed below.
Except as indicated, each individual has held the office shown
or other offices in the same company for the last five years.
The “Noninterested Trustees” consist of those Trustees
who are not “interested persons” of the Fund, as that
term is defined under the 1940 Act. The business address of each
Trustee and officer is Two International Place, Boston,
Massachusetts 02110. As used below, “EVC” refers to
Eaton Vance Corporation, “EV” refers to Eaton Vance,
Inc., “EVM” refers to Eaton Vance Management,
“BMR” refers to Boston Management and Research and
“EVD” refers to Eaton Vance Distributors, Inc. EVC and
EV are the corporate parent and trustee, respectively, of EVM
and BMR. EVD is a wholly-owned subsidiary of EVC. Each officer
affiliated with Eaton Vance may hold a position with other Eaton
Vance affiliates that is comparable to his or her position with
EVM listed below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term of
|
|
|
|
Number of
Portfolios
|
|
|
|
|
|
Position(s)
|
|
Office and
|
|
Principal
Occupation(s)
|
|
in Fund
Complex
|
|
|
|
Name and
|
|
with the
|
|
Length of
|
|
During Past Five
Years and
|
|
Overseen By
|
|
|
Other
Directorships Held
|
Year of
Birth
|
|
Fund
|
|
Service
|
|
Other Relevant
Experience
|
|
Trustee(1)
|
|
|
During the Last
Five
Years(2)
|
|
|
|
Interested
Trustee
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thomas E. Faust Jr.
1958
|
|
Class I
Trustee
|
|
Until 2012.
3 years.
Trustee since 2008.
|
|
Chairman, Chief Executive Officer and President of EVC, Director
and President of EV, Chief Executive Officer and President of
EVM and BMR, and Director of EVD. Trustee
and/or
officer of 175 registered investment companies and 1 private
investment company managed by EVM or BMR. Mr. Faust is an
interested person because of his positions with EVM, BMR, EVD,
EVC and EV, which are affiliates of the Fund.
|
|
|
175
|
|
|
Director of EVC.
|
|
Noninterested
Trustees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benjamin C. Esty
1963
|
|
Class I
Trustee
|
|
Until 2012.
3 years.
Trustee since 2005.
|
|
Roy and Elizabeth Simmons Professor of Business Administration
and Finance Unit Head, Harvard University Graduate School of
Business Administration.
|
|
|
175
|
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allen R. Freedman
1940
|
|
Class I
Trustee
|
|
Until 2012.
3 years.
Trustee since 2007.
|
|
Private Investor and Consultant. Former Chairman
(2002-2004)
and a Director
(1983-2004)
of Systems & Computer Technology Corp. (provider of
software to higher education). Formerly, a Director of Loring
Ward International (fund distributor)
(2005-2007).
Formerly, Chairman and a Director of Indus International, Inc.
(provider of enterprise management software to the power
generating industry)
(2005-2007).
|
|
|
175
|
|
|
Director of Assurant, Inc. (insurance provider) and Stonemor
Partners, L.P. (owner and operator of cemeteries).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
William H. Park
1947
|
|
Class II
Trustee
|
|
Until 2013.
3 years.
Trustee since 2005.
|
|
Chief Financial Officer, Aveon Group L.P. (an investment
management firm) (since 2010). Formerly, Vice Chairman,
Commercial Industrial Finance Corp. (specialty finance company)
(2006-2010).
Formerly, President and Chief Executive Officer, Prizm Capital
Management, LLC (investment management firm)
(2002-2005).
Formerly, Executive Vice President and Chief Financial Officer,
United Asset Management Corporation (an institutional investment
management firm)
(1982-2001).
Formerly, Senior Manager, Price Waterhouse (now
PricewaterhouseCoopers) (an independent registered public
accounting firm)
(1972-1981).
|
|
|
175
|
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ronald A. Pearlman
1940
|
|
Class II
Trustee
|
|
Until 2013.
3 years.
Trustee since 2005.
|
|
Professor of Law, Georgetown University Law Center. Formerly,
Deputy Assistant Secretary (Tax Policy) and Assistant Secretary
(Tax Policy), U.S. Department of the Treasury
(1983-1985).
Formerly, Chief of Staff, Joint Committee on Taxation, U.S.
Congress
(1988-1990).
|
|
|
175
|
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Helen Frame Peters
1948
|
|
Class III
Trustee
|
|
Until 2011.
3 years.
Trustee since 2008.
|
|
Professor of Finance, Carroll School of Management, Boston
College. Formerly, Dean, Carroll School of Management, Boston
College
(2000-2002).
Formerly, Chief Investment Officer, Fixed Income, Scudder Kemper
Investments (investment management firm)
(1998-1999).
Formerly, Chief Investment Officer, Equity and Fixed Income,
Colonial Management Associates (investment management firm)
(1991-1998).
|
|
|
175
|
|
|
Director of BJ’s Wholesale Club, Inc. (wholesale club
retailer). Formerly, Trustee of SPDR Index Shares Funds and SPDR
Series Trust (exchange traded funds) (2000-2009). Formerly,
Director of Federal Home Loan Bank of Boston (a bank for banks)
(2007-2009).
|
23
Eaton Vance
Tax-Managed Buy-Write Income
Fund
MANAGEMENT AND
ORGANIZATION CONT’D
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term of
|
|
|
|
Number of
Portfolios
|
|
|
|
|
|
Position(s)
|
|
Office and
|
|
Principal
Occupation(s)
|
|
in Fund
Complex
|
|
|
|
Name and
|
|
with the
|
|
Length of
|
|
During Past Five
Years and
|
|
Overseen By
|
|
|
Other
Directorships Held
|
Year of
Birth
|
|
Fund
|
|
Service
|
|
Other Relevant
Experience
|
|
Trustee(1)
|
|
|
During the Last
Five
Years(2)
|
|
|
Noninterested
Trustees (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lynn A. Stout
1957
|
|
Class III
Trustee
|
|
Until 2011.
3 years.
Trustee since 2005.
|
|
Paul Hastings Professor of Corporate and Securities Law (since
2006) and Professor of Law
(2001-2006),
University of California at Los Angeles School of Law. Professor
Stout teaches classes in corporate law and securities regulation
and is the author of numerous academic and professional papers
on these areas.
|
|
|
175
|
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ralph F. Verni
1943
|
|
Chairman of
the Board
and Class III
Trustee
|
|
Until 2011.
3 years.
Trustee since 2005 and Chairman of the Board since 2007.
|
|
Consultant and private investor. Formerly, Chief Investment
Officer
(1982-1992),
Chief Financial Officer
(1988-1990)
and Director
(1982-1992),
New England Life. Formerly, Chairperson, New England Mutual
Funds
(1982-1992).
Formerly, President and Chief Executive Officer, State Street
Management & Research
(1992-2000).
Formerly, Chairperson, State Street Research Mutual Funds
(1992-2000).
Formerly, Director, W.P. Carey, LLC
(1998-2004)
and First Pioneer Farm Credit Corp.
(2002-2006).
|
|
|
175
|
|
|
None
|
Principal Officers
who are not Trustees
|
|
|
|
|
|
|
|
|
|
|
Term of
|
|
|
|
|
Position(s)
|
|
Office and
|
|
|
Name and
|
|
with the
|
|
Length of
|
|
Principal
Occupation(s)
|
Year of
Birth
|
|
Fund
|
|
Service
|
|
During Past Five
Years
|
|
|
|
|
|
|
|
|
Walter A. Row, III
1957
|
|
President(3)
|
|
Since 2011
|
|
Vice President of EVM and BMR. Officer of 32 registered
investment companies managed by EVM or BMR.
|
|
|
|
|
|
|
|
Michael A. Allison
1964
|
|
Vice President
|
|
Since 2011
|
|
Vice President of EVM and BMR. Officer of 27 registered
investment companies managed by EVM or BMR.
|
|
|
|
|
|
|
|
Duncan W. Richardson
1957
|
|
Vice
President(4)
|
|
Since 2011
|
|
Director of EVC and Executive Vice President and Chief Equity
Investment Officer of EVC, EVM and BMR. Officer of 88 registered
investment companies managed by EVM or BMR.
|
|
|
|
|
|
|
|
Barbara E. Campbell
1957
|
|
Treasurer
|
|
Since 2005
|
|
Vice President of EVM and BMR. Officer of 175 registered
investment companies managed by EVM or BMR.
|
|
|
|
|
|
|
|
Maureen A. Gemma
1960
|
|
Secretary and Chief Legal Officer
|
|
Secretary since 2007 and Chief Legal Officer
since 2008
|
|
Vice President of EVM and BMR. Officer of 175 registered
investment companies managed by EVM or BMR.
|
|
|
|
|
|
|
|
Paul M. O’Neil
1953
|
|
Chief Compliance Officer
|
|
Since 2005
|
|
Vice President of EVM and BMR. Officer of 175 registered
investment companies managed by EVM or BMR.
|
|
|
|
(1)
|
|
Includes both master and feeder funds in a master-feeder
structure. |
|
(2)
|
|
During their respective tenures, the Trustees also served as
trustees of one or more of the following Eaton Vance funds
(which operated in the years noted): Eaton Vance Credit
Opportunities Fund (launched in 2005 and terminated in 2010);
Eaton Vance Insured Florida Plus Municipal Bond Fund (launched
in 2002 and terminated in 2009); and Eaton Vance National
Municipal Income Trust (launched in 1998 and terminated in 2009). |
|
(3)
|
|
Prior to 2011, Mr. Row served as Vice President of the Fund
since 2005. |
|
(4)
|
|
Prior to 2011, Mr. Richardson served as President of the
Fund since 2005. |
24
IMPORTANT
NOTICE ABOUT PRIVACY
The Eaton Vance organization is committed to ensuring your
financial privacy. Each of the financial institutions identified
below has in effect the following policy (Privacy Policy) with
respect to nonpublic personal information about its customers:
|
|
•
|
Only such information received from you, through application
forms or otherwise, and information about your Eaton Vance fund
transactions will be collected. This may include information
such as name, address, social security number, tax status,
account balances and transactions.
|
|
•
|
None of such information about you (or former customers) will be
disclosed to anyone, except as permitted by law (which includes
disclosure to employees necessary to service your account). In
the normal course of servicing a customer’s account, Eaton
Vance may share information with unaffiliated third parties that
perform various required services such as transfer agents,
custodians and broker/dealers.
|
|
•
|
Policies and procedures (including physical, electronic and
procedural safeguards) are in place that are designed to protect
the confidentiality of such information.
|
|
•
|
We reserve the right to change our Privacy Policy at any time
upon proper notification to you. Customers may want to review
our Privacy Policy periodically for changes by accessing the
link on our homepage: www.eatonvance.com.
|
Our pledge of privacy applies to the following entities within
the Eaton Vance organization: the Eaton Vance Family of Funds,
Eaton Vance Management, Eaton Vance Investment Counsel, Boston
Management and Research, and Eaton Vance Distributors, Inc. Our
Privacy Policy applies only to those Eaton Vance customers who
are individuals and who have a direct relationship with us. If a
customer’s account (i.e., fund shares) is held in the name
of a third-party financial adviser/broker-dealer, it is likely
that only such adviser’s privacy policies apply to the
customer. This notice supersedes all previously issued privacy
disclosures. For more information about Eaton Vance’s
Privacy Policy, please call
1-800-262-1122.
Investment
Adviser and Administrator of
Eaton Vance
Tax-Managed Buy-Write Income Fund
Eaton Vance
Management
Two International
Place
Boston, MA 02110
Sub-Adviser
of Eaton Vance Tax-Managed Buy-Write Income Fund
Parametric
Portfolio Associates LLC
1918 Eighth
Avenue, Suite 3100
Seattle, WA 98101
State Street
Bank and Trust Company
200 Clarendon
Street
Boston, MA 02116
American Stock
Transfer & Trust Company
59 Maiden Lane
Plaza Level
New York, NY 10038
Independent
Registered Public Accounting Firm
Deloitte &
Touche LLP
200 Berkeley
Street
Boston, MA
02116-5022
Eaton Vance
Tax-Managed Buy-Write Income Fund
Two
International Place
Boston, MA
02110
Item 2. Code of Ethics
The registrant has adopted a code of ethics applicable to its Principal Executive Officer,
Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide
a copy of such code of ethics to any person upon request, without charge, by calling
1-800-262-1122.
Item 3. Audit Committee Financial Expert
The registrant’s Board has designated William H. Park, an independent trustee, as its audit
committee financial expert. Mr. Park is a certified public accountant who is the Chief Financial
Officer of Aveon Group, L.P. (an investment management firm). Previously, he served as the Vice
Chairman of Commercial Industrial Finance Corp. (specialty finance company), as President and Chief
Executive Officer of Prizm Capital Management, LLC (investment management firm), as Executive Vice
President and Chief Financial Officer of United Asset Management Corporation (an institutional
investment management firm) and as a Senior Manager at Price Waterhouse (now
PricewaterhouseCoopers) (an independent registered public accounting firm).
Item 4. Principal Accountant Fees and Services
(a) —(d)
The following table presents the aggregate fees billed to the registrant for the registrant’s
fiscal years ended December 31, 2009 and December 31, 2010 by the registrant’s principal
accountant, Deloitte & Touche LLP (“D&T”), for professional services rendered for the audit of the
registrant’s annual financial statements and fees billed for other services rendered by D&T during
such periods.
|
|
|
|
|
|
|
|
|
Fiscal Years Ended |
|
12/31/09 |
|
12/31/10 |
Audit Fees |
|
$ |
36,180 |
|
|
$ |
36,180 |
|
|
|
|
|
|
|
|
|
|
Audit-Related Fees(1) |
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
Tax Fees(2) |
|
$ |
8,200 |
|
|
$ |
8,200 |
|
|
|
|
|
|
|
|
|
|
All Other Fees(3) |
|
$ |
2,500 |
|
|
$ |
1,900 |
|
|
|
|
|
Total |
|
$ |
46,880 |
|
|
$ |
46,280 |
|
|
|
|
|
|
|
(1) |
|
Audit-related fees consist of the aggregate fees billed for assurance and related
services that are reasonably related to the performance of the audit of financial statements
and are not reported under the category of audit fees. |
|
(2) |
|
Tax fees consist of the aggregate fees billed for professional services rendered by
the principal accountant relating to tax compliance, tax advice, and tax planning and
specifically include fees for tax return preparation. |
|
(3) |
|
All other fees consist of the aggregate fees billed for products and services
provided by the principal accountant other than audit, audit-related, and tax services. |
(e)(1) The registrant’s audit committee has adopted policies and procedures relating to
the pre-approval of services provided by the registrant’s principal accountant (the “Pre-Approval
Policies”). The Pre-Approval Policies establish a framework intended to assist the audit committee
in the proper discharge of its pre-approval responsibilities. As a general matter, the
Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services
determined to be pre-approved by the audit committee; and (ii) delineate specific procedures
governing the mechanics of the pre-approval process, including the approval and monitoring of audit
and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval
Policies, it must be separately pre-approved by the audit committee.
The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must
be reviewed and ratified by the registrant’s audit committee at least annually. The registrant’s
audit committee maintains full responsibility for the appointment, compensation, and oversight of
the work of the registrant’s principal accountant.
(e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant’s audit
committee pursuant to the “de minimis exception” set forth in Rule 2-01(c)(7)(i)(C) of Regulation
S-X.
(f) Not applicable.
(g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related,
tax, and other services) billed to the registrant by D&T for the registrant’s fiscal years ended
December 31,
2009 and December 31, 2010; and (ii) the aggregate non-audit fees (i.e., fees for audit-related,
tax, and other services) billed to the Eaton Vance organization by D&T for the same time periods.
|
|
|
|
|
|
|
|
|
Fiscal Years Ended |
|
12/31/09 |
|
12/31/10 |
Registrant |
|
$ |
10,700 |
|
|
$ |
10,100 |
|
|
|
|
|
|
|
|
|
|
Eaton Vance(1) |
|
$ |
288,295 |
|
|
$ |
250,973 |
|
|
|
|
(1) |
|
The investment adviser to the registrant, as well as any of its affiliates that provide
ongoing services to the registrant, are subsidiaries of Eaton Vance Corp. |
(h) The registrant’s audit committee has considered whether the provision by the registrant’s
principal accountant of non-audit services to the registrant’s investment adviser and any entity
controlling, controlled by, or under common control with the adviser that provides ongoing services
to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is
compatible with maintaining the principal accountant’s independence.
Item 5. Audit Committee of Listed Registrants
The registrant has a separately-designated standing audit committee established in accordance with
Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. William H. Park
(Chair), Helen Frame Peters, Lynn A. Stout and Ralph F. Verni are the members of the registrant’s
audit committee.
Item 6. Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of
this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment
Companies
The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the “Fund
Policy”), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund’s
investment adviser and adopted the investment adviser’s proxy voting policies and procedures (the
“Policies”) which are described below. The Trustees will review the Fund’s proxy voting records
from time to time and will annually consider approving the Policies for the upcoming year. In the
event that a conflict of interest arises between the Fund’s shareholders and the investment
adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment
adviser will generally refrain from voting the proxies related to the companies giving rise to such
conflict until it consults with the Board’s Special Committee except as contemplated under the Fund
Policy. The Board’s Special Committee will instruct the investment adviser on the appropriate
course of action.
The Policies are designed to promote accountability of a company’s management to its shareholders
and to align the interests of management with those shareholders. An independent proxy
voting service (“Agent”), currently Institutional Shareholder Services, Inc., has been retained to
assist in the voting of proxies through the provision of vote analysis, implementation and
recordkeeping and disclosure services. The investment adviser will generally vote proxies through
the Agent. The Agent is required to vote all proxies and/or refer them back to the investment
adviser pursuant to the Policies. It is generally the policy of the investment adviser to vote in
accordance with the recommendation of the Agent. The Agent shall refer to the investment adviser
proxies relating to mergers and restructurings,
and the disposition of assets, termination, liquidation and mergers contained in mutual fund
proxies. The investment adviser will normally vote against anti-takeover measures and other
proposals designed to limit the ability of shareholders to act on possible transactions, except in
the case of closed-end management investment companies. The investment adviser generally supports
management on social and environmental proposals. The investment adviser may abstain from voting
from time to time where it determines that the costs associated with voting a proxy outweighs the
benefits derived from exercising the right to vote or the economic effect on shareholders interests
or the value of the portfolio holding is indeterminable or insignificant.
In addition, the investment adviser will monitor situations that may result in a conflict of
interest between the Fund’s shareholders and the investment adviser, the administrator, or any of
their affiliates or any affiliate of the Fund by maintaining a list of significant existing and
prospective corporate clients. The investment adviser’s personnel responsible for reviewing and
voting proxies on behalf of the Fund will report any proxy received or expected to be received from
a company included on that list to the personnel of the investment adviser identified in the
Policies. If such personnel expects to instruct the Agent to vote such proxies in a manner
inconsistent with the guidelines of the Policies or the recommendation of the Agent, the personnel
will consult with members of senior management of the investment adviser to determine if a material
conflict of interests exists. If it is determined that a material conflict does exist, the
investment adviser will seek instruction on how to vote from the Special Committee.
Information on how the Fund voted proxies relating to portfolio securities during the most recent
12 month period ended June 30 is available (1) without charge, upon request, by calling
1-800-262-1122, and (2) on the Securities and Exchange Commission’s website at http://www.sec.gov.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Eaton Vance Management (“EVM”) is investment adviser to the Fund. EVM has engaged its affiliate,
Parametric Portfolio Associates LLC (“Parametric”), as a sub-adviser to the Fund responsible for
structuring and managing the Fund’s common stock portfolio, including tax-loss harvesting and other
tax-management techniques.
Walter A. Row and other EVM investment professionals comprise the investment team responsible for
managing the Fund’s overall investment program, providing the sub-advisers with research support
and supervising the performance of the sub-advisers. Mr. Row is the portfolio manager responsible
for the day-to-day management of EVM’s responsibilities with respect to the Fund’s investment
portfolio. Mr. Row is a Vice President and Head of Structured Equity Portfolios at EVM. He is a
member of EVM’s Equity Strategy Committee and co-manages other Eaton Vance registered investment
companies. He joined Eaton Vance’s equity group in 1996.
David M. Stein, Ph.D. and Thomas Seto are the Parametric portfolio managers responsible for the
day-to-day management of the Fund’s common stock portfolio. Mr. Stein is Managing Director and
Chief Investment Officer at Parametric, where he leads the investment, research and technology
activities. Prior to joining Parametric, Mr. Stein held senior research, development and portfolio
management positions at GTE Investment Management Corp, the Vanguard Group and IBM Retirement
Funds. Mr. Seto is a Vice President and the Director of Portfolio Management at Parametric where
he is responsible for all portfolio management, including taxable, tax-exempt, quantitative-active
and international strategies. Prior to joining Parametric, Mr. Seto served as the Head of U.S.
Equity Index Investments at Barclays Global Investors.
The following table shows, as of the Fund’s most recent fiscal year end, the number of accounts
each portfolio manager managed in each of the listed categories and the total assets (in millions
of dollars)
in the accounts managed within each category. The table also shows the number of accounts with
respect to which the advisory fee is based on the performance of the account, if any, and the total
assets (in millions of dollars) in those accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Accounts |
|
Total Assets |
|
|
Number of All |
|
Total Assets of All |
|
Paying a |
|
of Accounts Paying |
|
|
Accounts |
|
Accounts |
|
Performance Fee |
|
a Performance Fee |
Walter A. Row |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Registered Investment Companies |
|
|
10 |
|
|
$ |
10,482.7 |
|
|
|
0 |
|
|
$ |
0 |
|
Other Pooled Investment Vehicles |
|
|
1 |
|
|
$ |
2.5 |
|
|
|
0 |
|
|
$ |
0 |
|
Other Accounts |
|
|
0 |
|
|
$ |
0 |
|
|
|
0 |
|
|
$ |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
David M. Stein |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Registered Investment Companies |
|
|
13 |
|
|
$ |
9,656.3 |
|
|
|
0 |
|
|
$ |
0 |
|
Other Pooled Investment Vehicles |
|
|
1 |
|
|
$ |
388.2 |
|
|
|
0 |
|
|
$ |
0 |
|
Other Accounts |
|
|
2,045 |
(1) |
|
$ |
23,333.2 |
|
|
|
2 |
|
|
$ |
1,009.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thomas Seto |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Registered Investment Companies |
|
|
13 |
|
|
$ |
9,656.3 |
|
|
|
0 |
|
|
$ |
0 |
|
Other Pooled Investment Vehicles |
|
|
1 |
|
|
$ |
388.2 |
|
|
|
0 |
|
|
$ |
0 |
|
Other Accounts |
|
|
2,045 |
(1) |
|
$ |
23,333.2 |
|
|
|
2 |
|
|
$ |
1,009.5 |
|
|
|
|
(1) |
|
For “Other Accounts” that are part of a wrap account program, the number of accounts cited includes the number
of sponsors for which the portfolio manager provides management services rather than the number of individual customer accounts
within each wrap account program. |
The following table shows the dollar range of Fund shares beneficially by each portfolio
manager as of the Fund’s most recent fiscal year end.
|
|
|
|
|
|
|
Dollar Range of Equity |
Portfolio Manager |
|
Securities Owned in the Fund |
Walter A. Row |
|
$ |
10,001 – $50,000 |
|
David M. Stein |
|
None |
Thomas Seto |
|
None |
Potential for Conflicts of Interest. It is possible that conflicts of interest may arise in
connection with a portfolio manager’s management of a Fund’s investments on the one hand and the
investments of other accounts for which the portfolio manager is responsible on the other. For
example, a portfolio manager may have conflicts of interest in allocating management time,
resources and investment opportunities among the Fund and other accounts he or she advises. In
addition, due to differences in the investment strategies or restrictions between a Fund and the
other accounts, a portfolio manager may take action with respect to another account that differs
from the action taken with respect to the Fund. In some cases, another account managed by a
portfolio manager may compensate EVM or the sub-adviser based on the performance of the securities
held by that account. The existence of such a performance based fee may create additional conflicts
of interest for the portfolio manager in the allocation of management time, resources and
investment opportunities. Whenever conflicts of interest arise, the portfolio manager will
endeavor to exercise his or her discretion in a manner that he or she believes is equitable to all
interested persons. EVM and the sub-adviser have adopted several policies and procedures designed
to address these potential conflicts including a code of ethics and policies which govern EVM’s and
the sub-adviser’s trading practices, including among other things the aggregation and allocation of
trades among clients, brokerage allocation, cross trades and best execution.
Compensation Structure for EVM
Compensation of EVM’s portfolio managers and other investment professionals has three primary
components: (1) a base salary, (2) an annual cash bonus, and (3) annual stock-based compensation
consisting of options to purchase shares of EVC’s nonvoting common stock and restricted shares of
EVC’s nonvoting common stock. EVM’s investment professionals also receive certain retirement,
insurance and other benefits that are broadly available to EVM’s employees. Compensation of EVM’s
investment professionals is reviewed primarily on an annual basis. Cash bonuses, stock-based
compensation awards, and adjustments in base salary are typically paid or put into effect at or
shortly after the October 31st fiscal year end of EVC.
Method to Determine Compensation. EVM compensates its portfolio managers based primarily on the
scale and complexity of their portfolio responsibilities and the total return performance of
managed funds and accounts versus the benchmark(s) stated in the prospectus, as well as an
appropriate peer group (as described below). In addition to rankings within peer groups of funds
on the basis of absolute performance, consideration may also be given to relative risk-adjusted
performance. Risk-adjusted performance measures include, but are not limited to, the Sharpe Ratio.
Performance is normally based on periods ending on the September 30th preceding fiscal year end.
Fund performance is normally evaluated primarily versus peer groups of funds as determined by
Lipper Inc. and/or Morningstar, Inc. When a fund’s peer group as determined by Lipper or
Morningstar is deemed by EVM’s management not to provide a fair comparison, performance may instead
be evaluated primarily against a custom peer group. In evaluating the performance of a fund and
its manager, primary emphasis is normally placed on three-year performance, with secondary
consideration of performance over longer and shorter periods. For funds that are tax-managed or
otherwise have an objective of after-tax returns, performance is measured net of taxes. For other
funds, performance is evaluated on a pre-tax basis. For funds with an investment objective other
than total return (such as current income), consideration will also be given to the fund’s success
in achieving its objective. For managers responsible for multiple funds and accounts, investment
performance is evaluated on an aggregate basis, based on averages or weighted averages among
managed funds and accounts. Funds and accounts that have performance-based advisory fees are not
accorded disproportionate weightings in measuring aggregate portfolio manager performance.
The compensation of portfolio managers with other job responsibilities (such as heading an
investment group or providing analytical support to other portfolios) will include consideration of
the scope of such responsibilities and the managers’ performance in meeting them.
EVM seeks to compensate portfolio managers commensurate with their responsibilities and
performance, and competitive with other firms within the investment management industry. EVM
participates in investment-industry compensation surveys and utilizes survey data as a factor in
determining salary, bonus and stock-based compensation levels for portfolio managers and other
investment professionals. Salaries, bonuses and stock-based compensation are also influenced by the
operating performance of EVM and its parent company. The overall annual cash bonus pool is based on
a substantially fixed percentage of pre-bonus operating income. While the salaries of EVM’s
portfolio managers are comparatively fixed, cash bonuses and stock-based compensation may fluctuate
significantly from year to year, based on changes in manager performance and other factors as
described herein. For a high performing portfolio manager, cash bonuses and stock-based
compensation may represent a substantial portion of total compensation.
Compensation Structure for Parametric
Compensation of Parametric portfolio managers and other investment professionals has three primary
components: (1) a base salary, (2) a cash bonus, and (3) annual stock-based compensation
consisting of options to purchase shares of EVC’s nonvoting common stock, restricted shares of
EVC’s nonvoting common stock and, for certain individuals, grants of profit participation interests
in
Parametric. Parametric investment professionals also receive certain retirement, insurance and
other benefits that are broadly available to Parametric employees. Compensation of Parametric
investment professionals is reviewed primarily on an annual basis. Stock-based compensation awards
and adjustments in base salary and bonus are typically paid and/or put into effect at or shortly
after calendar year-end.
Method to Determine Compensation. Parametric seeks to compensate portfolio managers commensurate
with their responsibilities and performance, and competitive with other firms within the investment
management industry. The performance of portfolio managers is evaluated primarily based on success
in achieving portfolio objectives for managed funds and accounts. The compensation of portfolio
managers with other job responsibilities (such as product development) will include consideration
of the scope of such responsibilities and the managers’ performance in meeting them.
Salaries, bonuses and stock-based compensation are also influenced by the operating performance of
Parametric and EVC, its parent company. Cash bonuses are determined based on a target percentage
of Parametric profits. While the salaries of Parametric portfolio managers are comparatively
fixed, cash bonuses and stock-based compensation may fluctuate substantially from year to year,
based on changes in financial performance and other factors.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated
Purchasers
No such purchases this period.
Item 10. Submission of Matters to a Vote of Security Holders
No Material Changes.
Item 11. 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 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 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 second fiscal quarter of the period covered by this report that has materially affected,
or is reasonably likely to materially affect, the registrant’s internal control over financial
reporting.
Item 12. Exhibits
|
|
|
(a)(1)
|
|
Registrant’s Code of Ethics — Not applicable (please see Item 2). |
(a)(2)(i)
|
|
Treasurer’s Section 302 certification. |
(a)(2)(ii)
|
|
President’s Section 302 certification. |
|
|
|
(b) |
|
Combined Section 906 certification. |
|
(c) |
|
Registrant’s notices to shareholders pursuant to Registrant’s exemptive order granting an
exemption from Section 19(b) of the 1940 Act and Rule 19b-1 thereunder regarding distributions
paid pursuant to the Registrant’s Managed Distribution Plan. |
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 Buy-Write Income Fund
|
|
|
|
|
By:
|
|
/s/ Walter A. Row, III
Walter A. Row, III
|
|
|
|
|
President |
|
|
|
|
|
|
|
Date: February 14, 2011 |
|
|
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/ Barbara E. Campbell
Barbara E. Campbell
|
|
|
|
|
Treasurer |
|
|
|
|
|
|
|
Date: February 14, 2011 |
|
|
|
|
|
|
|
By:
|
|
/s/ Walter A. Row, III
Walter A. Row, III
|
|
|
|
|
President |
|
|
|
|
|
|
|
Date: February 14, 2011 |
|
|