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: 811-21470
Eaton Vance Tax-Advantaged Global Dividend Income Fund
(Exact Name of Registrant as Specified in Charter)
Two International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
Deidre E. Walsh
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
(617) 482-8260
(Registrant’s Telephone Number)
October 31 Date of Fiscal Year End
October 31, 2023 Date of Reporting Period
Item 1. Reports to Stockholders
% Average Annual Total Returns1,2 | Inception Date | One Year | Five Years | Ten Years |
Fund at NAV | 01/30/2004 | 13.04% | 8.06% | 7.52% |
Fund at Market Price | — | (4.31) | 6.44 | 6.79 |
MSCI World Index | — | 10.48% | 8.26% | 7.53% |
ICE BofA Fixed Rate Preferred Securities Index | — | 2.18 | 1.29 | 3.82 |
Blended Index | — | 8.85 | 6.97 | 6.89 |
% Premium/Discount to NAV3 | |
As of period end | (13.87)% |
Distributions 4 | |
Total Distributions per share for the period | $1.201 |
Distribution Rate at NAV | 7.15% |
Distribution Rate at Market Price | 8.30 |
% Total Leverage5 | |
Borrowings | 22.37% |
Sector Allocation (% of total investments)1 |
Country Allocation (% of total investments) |
Top 10 Holdings (% of total investments) 1 | |
Microsoft Corp. | 5.0% |
Alphabet, Inc., Class C | 3.3 |
Amazon.com, Inc. | 3.0 |
Apple, Inc. | 2.6 |
Nestle S.A. | 2.0 |
ConocoPhillips | 2.0 |
Adobe, Inc. | 1.7 |
Compass Group PLC | 1.7 |
EOG Resources, Inc. | 1.6 |
CDW Corp. | 1.6 |
Total | 24.5% |
1 | Excludes cash and cash equivalents. |
† | The views expressed in this report are those of the portfolio manager(s) and are current only through the date stated at the top of this page. These views are subject to change at any time based upon market or other conditions, and Eaton Vance and the Fund(s) disclaim any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Eaton Vance fund. This commentary may contain statements that are not historical facts, referred to as “forward-looking statements.” The Fund’s actual future results may differ significantly from those stated in any forward-looking statement, depending on factors such as changes in securities or financial markets or general economic conditions, the volume of sales and purchases of Fund shares, the continuation of investment advisory, administrative and service contracts, and other risks discussed from time to time in the Fund’s filings with the Securities and Exchange Commission. |
‡ | The information contained herein is provided for informational purposes only and does not constitute a solicitation of an offer to buy or sell Fund shares. Common shares of the Fund are available for purchase and sale only at current market prices in secondary market trading. |
1 | MSCI World Index is an unmanaged index of equity securities in the developed markets. MSCI indexes are net of foreign withholding taxes. Source: MSCI. MSCI data may not be reproduced or used for any other purpose. MSCI provides no warranties, has not prepared or approved this report, and has no liability hereunder. ICE BofA Fixed Rate Preferred Securities Index is an unmanaged index of fixed-rate, preferred securities issued in the U.S. ICE® BofA® indices are not for redistribution or other uses; provided “as is”, without warranties, and with no liability. Eaton Vance has prepared this report and ICE Data Indices, LLC does not endorse it, or guarantee, review, or endorse Eaton Vance’s products. BofA® is a licensed registered trademark of Bank of America Corporation in the United States and other countries. The Blended Index consists of 80% MSCI World Index and 20% ICE BofA Fixed Rate Preferred Securities Index, rebalanced monthly. Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index. |
2 | Performance results reflect the effects of leverage. |
3 | The shares of the Fund often trade at a discount or premium to their net asset value. The discount or premium may vary over time and may be higher or lower than what is quoted in this report. For up-to-date premium/discount information, please refer to https://funds.eatonvance.com/closed-end-fund-prices.php. |
4 | 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 amounts characterized for federal income tax purposes as qualified and non-qualified ordinary dividends, capital gains and nondividend distributions, also known as return of capital. For additional information about nondividend distributions, please refer to Eaton Vance Closed-End Fund Distribution Notices (19a) posted on our website, eatonvance.com. The Fund will determine the federal income tax character of distributions paid to a shareholder after the end of the calendar year. This is reported on the IRS form 1099-DIV and provided to the shareholder shortly after each year-end. For information about the tax character of distributions made in prior calendar years, please refer to Performance-Tax Character of Distributions on the Fund’s webpage available at eatonvance. com. The Fund’s distributions are determined by the investment adviser based on its current assessment of the Fund’s long-term return potential. Fund distributions may be affected by numerous factors including changes in Fund performance, the cost of financing for leverage, portfolio holdings, realized and projected returns, and other factors. As portfolio and market conditions change, the rate of distributions paid by the Fund could change. |
5 | Total leverage is shown as a percentage of the Fund’s aggregate net assets plus borrowings outstanding. The Fund employs leverage through borrowings. Use of leverage creates an opportunity for income, but creates risks including greater price volatility. The cost of borrowings rises and falls with changes in short-term interest rates. The Fund may be required to maintain prescribed asset coverage for its leverage and may be required to reduce its leverage at an inopportune time. |
Fund profile subject to change due to active management. | |
Additional Information | |
S&P 500® Index is an unmanaged index of large-cap stocks commonly used as a measure of U.S. stock market performance. S&P Dow Jones Indices are a product of S&P Dow Jones Indices LLC (“S&P DJI”) and have been licensed for use. S&P® and S&P 500® are registered trademarks of S&P DJI; Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); S&P DJI, Dow Jones and their respective affiliates do not sponsor, endorse, sell or promote the Fund, will not have any liability with respect thereto and do not have any liability for any errors, omissions, or interruptions of the S&P Dow Jones Indices. MSCI Golden Dragon Index is an unmanaged index of common stocks traded in China, Hong Kong and Taiwan. MSCI ACWI Index is an unmanaged free-float-adjusted, market-capitalization-weighted index designed to measure the equity market performance of developed and emerging markets. MSCI EAFE Index is an unmanaged index of equities in the developed markets, excluding the U.S. and Canada. |
Common Stocks — 109.4% |
Security | Shares | Value | |
Aerospace & Defense — 1.0% | |||
Safran S.A. | 82,153 | $ 12,833,898 | |
$ 12,833,898 | |||
Air Freight & Logistics — 1.4% | |||
GXO Logistics, Inc.(1) | 348,840 | $ 17,619,908 | |
$ 17,619,908 | |||
Automobiles — 0.6% | |||
Tesla, Inc.(1) | 37,418 | $ 7,515,031 | |
$ 7,515,031 | |||
Banks — 7.4% | |||
Banco Santander S.A. | 3,213,158 | $ 11,817,781 | |
Barclays PLC | 8,810,389 | 14,141,078 | |
Citigroup, Inc. | 300,651 | 11,872,708 | |
HDFC Bank, Ltd. | 876,303 | 15,533,788 | |
HSBC Holdings PLC | 1,235,322 | 8,919,538 | |
KBC Group NV | 181,699 | 9,999,776 | |
Toronto-Dominion Bank (The) | 205,901 | 11,501,058 | |
Truist Financial Corp. | 382,493 | 10,847,501 | |
$ 94,633,228 | |||
Beverages — 2.3% | |||
Coca-Cola Co. (The)(2) | 317,912 | $ 17,958,849 | |
Diageo PLC | 326,985 | 12,365,256 | |
$ 30,324,105 | |||
Biotechnology — 1.0% | |||
CSL, Ltd. | 88,075 | $ 13,016,790 | |
$ 13,016,790 | |||
Broadline Retail — 3.8% | |||
Amazon.com, Inc.(1)(2) | 369,562 | $ 49,185,007 | |
$ 49,185,007 | |||
Capital Markets — 1.6% | |||
Intercontinental Exchange, Inc. | 109,686 | $ 11,784,664 | |
Stifel Financial Corp. | 155,871 | 8,884,647 | |
$ 20,669,311 |
Security | Shares | Value | |
Commercial Services & Supplies — 1.0% | |||
Veralto Corp.(1) | 1 | $ 69 | |
Waste Management, Inc. | 80,969 | 13,305,636 | |
$ 13,305,705 | |||
Consumer Staples Distribution & Retail — 1.5% | |||
Dollar Tree, Inc.(1)(2) | 175,017 | $ 19,442,639 | |
$ 19,442,639 | |||
Electric Utilities — 2.4% | |||
Iberdrola S.A. | 1,577,196 | $ 17,541,602 | |
NextEra Energy, Inc. | 221,887 | 12,936,012 | |
$ 30,477,614 | |||
Electrical Equipment — 1.9% | |||
AMETEK, Inc.(2) | 105,394 | $ 14,836,314 | |
Schneider Electric SE | 67,202 | 10,339,518 | |
$ 25,175,832 | |||
Electronic Equipment, Instruments & Components — 4.6% | |||
CDW Corp.(2) | 132,709 | $ 26,594,884 | |
Halma PLC | 426,014 | 9,580,350 | |
Keyence Corp. | 18,800 | 7,277,827 | |
Keysight Technologies, Inc.(1)(2) | 49,642 | 6,058,806 | |
TE Connectivity, Ltd. | 77,120 | 9,088,592 | |
$ 58,600,459 | |||
Entertainment — 2.0% | |||
Walt Disney Co. (The)(1)(2) | 309,666 | $ 25,265,649 | |
$ 25,265,649 | |||
Financial Services — 2.2% | |||
Fidelity National Information Services, Inc. | 204,866 | $ 10,060,969 | |
Visa, Inc., Class A | 79,340 | 18,652,834 | |
$ 28,713,803 | |||
Food Products — 3.5% | |||
Mondelez International, Inc., Class A | 194,962 | $ 12,908,434 | |
Nestle S.A. | 298,268 | 32,164,841 | |
$ 45,073,275 | |||
Ground Transportation — 1.2% | |||
Union Pacific Corp. | 72,531 | $ 15,058,161 | |
$ 15,058,161 |
Security | Shares | Value | |
Health Care Equipment & Supplies — 3.5% | |||
Alcon, Inc. | 160,015 | $ 11,453,254 | |
Boston Scientific Corp.(1)(2) | 290,253 | 14,858,051 | |
Intuitive Surgical, Inc.(1)(2) | 45,766 | 12,000,761 | |
Straumann Holding AG | 60,097 | 7,102,508 | |
$ 45,414,574 | |||
Health Care Providers & Services — 1.1% | |||
UnitedHealth Group, Inc.(2) | 25,460 | $ 13,635,358 | |
$ 13,635,358 | |||
Health Care REITs — 0.8% | |||
Healthpeak Properties, Inc. | 675,906 | $ 10,510,338 | |
$ 10,510,338 | |||
Hotels, Restaurants & Leisure — 3.9% | |||
Amadeus IT Group S.A. | 199,538 | $ 11,388,194 | |
Compass Group PLC | 1,110,885 | 28,006,918 | |
InterContinental Hotels Group PLC | 150,067 | 10,634,124 | |
$ 50,029,236 | |||
Household Products — 1.1% | |||
Reckitt Benckiser Group PLC | 216,263 | $ 14,469,492 | |
$ 14,469,492 | |||
Industrial Conglomerates — 1.1% | |||
Siemens AG | 103,616 | $ 13,749,724 | |
$ 13,749,724 | |||
Insurance — 5.0% | |||
AIA Group, Ltd. | 1,629,598 | $ 14,151,108 | |
Allstate Corp. (The) | 91,249 | 11,691,734 | |
Assurant, Inc.(2) | 85,994 | 12,804,506 | |
AXA S.A. | 421,869 | 12,500,158 | |
RenaissanceRe Holdings, Ltd. | 58,435 | 12,831,742 | |
$ 63,979,248 | |||
Interactive Media & Services — 4.2% | |||
Alphabet, Inc., Class C(1)(2) | 429,193 | $ 53,777,883 | |
$ 53,777,883 | |||
IT Services — 1.3% | |||
Accenture PLC, Class A | 56,695 | $ 16,843,518 | |
$ 16,843,518 |
Security | Shares | Value | |
Leisure Products — 0.4% | |||
Yamaha Corp. | 200,413 | $ 5,353,016 | |
$ 5,353,016 | |||
Life Sciences Tools & Services — 1.7% | |||
Danaher Corp. | 85,262 | $ 16,372,009 | |
Sartorius AG, PFC Shares | 21,907 | 5,490,767 | |
$ 21,862,776 | |||
Machinery — 0.8% | |||
Ingersoll Rand, Inc. | 163,640 | $ 9,929,675 | |
$ 9,929,675 | |||
Media — 0.9% | |||
Dentsu Group, Inc. | 418,316 | $ 12,150,396 | |
$ 12,150,396 | |||
Metals & Mining — 1.5% | |||
Anglo American PLC | 349,338 | $ 8,900,984 | |
Rio Tinto, Ltd. | 134,405 | 10,039,795 | |
$ 18,940,779 | |||
Multi-Utilities — 0.4% | |||
CMS Energy Corp. | 107,910 | $ 5,863,829 | |
$ 5,863,829 | |||
Oil, Gas & Consumable Fuels — 4.6% | |||
ConocoPhillips (2) | 269,256 | $ 31,987,613 | |
EOG Resources, Inc. | 211,971 | 26,761,339 | |
$ 58,748,952 | |||
Personal Care Products — 0.5% | |||
Kose Corp. | 91,627 | $ 6,070,379 | |
$ 6,070,379 | |||
Pharmaceuticals — 8.3% | |||
AstraZeneca PLC | 152,465 | $ 19,089,168 | |
Eli Lilly & Co.(2) | 42,039 | 23,286,663 | |
Novo Nordisk A/S, Class B | 231,361 | 22,320,832 | |
Sanofi S.A. | 194,947 | 17,702,403 | |
Zoetis, Inc. | 151,872 | 23,843,904 | |
$ 106,242,970 | |||
Professional Services — 2.8% | |||
Recruit Holdings Co., Ltd. | 483,446 | $ 13,861,700 |
Security | Shares | Value | |
Professional Services (continued) | |||
RELX PLC | 287,018 | $ 10,024,876 | |
Verisk Analytics, Inc. | 53,436 | 12,149,209 | |
$ 36,035,785 | |||
Semiconductors & Semiconductor Equipment — 7.0% | |||
ASML Holding NV | 31,530 | $ 18,953,328 | |
Infineon Technologies AG | 575,523 | 16,811,146 | |
Micron Technology, Inc. | 305,373 | 20,420,292 | |
NVIDIA Corp.(2) | 50,797 | 20,715,017 | |
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 145,803 | 12,584,257 | |
$ 89,484,040 | |||
Software — 10.5% | |||
Adobe, Inc.(1)(2) | 53,141 | $ 28,274,200 | |
Intuit, Inc. | 48,164 | 23,838,772 | |
Microsoft Corp.(2) | 246,311 | 83,280,212 | |
$ 135,393,184 | |||
Specialty Retail — 1.7% | |||
TJX Cos., Inc. (The) | 249,951 | $ 22,013,185 | |
$ 22,013,185 | |||
Technology Hardware, Storage & Peripherals — 3.4% | |||
Apple, Inc.(2) | 252,973 | $ 43,200,199 | |
$ 43,200,199 | |||
Textiles, Apparel & Luxury Goods — 0.9% | |||
LVMH Moet Hennessy Louis Vuitton SE | 17,022 | $ 12,186,566 | |
$ 12,186,566 | |||
Trading Companies & Distributors — 2.6% | |||
Ashtead Group PLC | 200,721 | $ 11,511,838 | |
IMCD NV | 179,110 | 21,564,052 | |
$ 33,075,890 | |||
Total Common Stocks (identified cost $1,379,425,107) | $1,405,871,407 |
Corporate Bonds — 12.9% |
Security | Principal Amount (000's omitted) | Value | |
Banks — 7.5% | |||
Australia & New Zealand Banking Group, Ltd., 6.75% to 6/15/26(3)(4)(5) | $ | 375 | $ 364,138 |
Security | Principal Amount (000's omitted) | Value | |
Banks (continued) | |||
Banco Davivienda S.A., 6.65% to 4/22/31(3)(4)(5) | $ | 1,000 | $ 605,000 |
Banco Mercantil del Norte S.A./Grand Cayman: | |||
7.50% to 6/27/29(3)(4)(5) | 2,470 | 2,133,584 | |
7.625% to 1/10/28(3)(4)(5) | 1,160 | 1,052,023 | |
8.375% to 10/14/30(3)(4)(5) | 1,105 | 1,008,798 | |
Bank of America Corp., Series TT, 6.125% to 4/27/27(4)(5) | 2,338 | 2,204,080 | |
Bank of New York Mellon Corp. (The), Series G, 4.70% to 9/20/25(4)(5) | 350 | 332,140 | |
Bank of Nova Scotia (The): | |||
4.90% to 6/4/25(4)(5) | 1,625 | 1,486,919 | |
8.625% to 10/27/27, 10/27/82(5) | 3,960 | 3,883,751 | |
Barclays PLC: | |||
6.125% to 12/15/25(4)(5) | 3,796 | 3,395,408 | |
8.00% to 3/15/29(4)(5) | 3,629 | 3,218,923 | |
BBVA Bancomer S.A., 8.45% to 6/29/33, 6/29/38(3)(5) | 1,000 | 954,634 | |
Bilbao Vizcaya Argentaria S.A., 6.125% to 11/16/27(4)(5) | 3,800 | 3,027,107 | |
BNP Paribas S.A.: | |||
4.625% to 2/25/31(3)(4)(5) | 1,210 | 842,128 | |
7.75% to 8/16/29(3)(4)(5) | 3,950 | 3,672,209 | |
Citigroup, Inc., Series W, 4.00% to 12/10/25(4)(5) | 8,826 | 7,599,919 | |
Discover Bank, 5.974%, 8/9/28 | 1,250 | 1,126,120 | |
Farm Credit Bank of Texas, Series 3, 6.20% to 6/15/28(3)(4)(5) | 3,200 | 2,896,000 | |
HSBC Holdings PLC, 4.60% to 12/17/30(4)(5) | 3,637 | 2,638,675 | |
Huntington Bancshares, Inc., Series F, 5.625% to 7/15/30(4)(5) | 3,676 | 2,877,029 | |
ING Groep NV, 6.50% to 4/16/25(4)(5) | 983 | 920,643 | |
JPMorgan Chase & Co., Series KK, 3.65% to 6/1/26(4)(5) | 7,203 | 6,266,422 | |
Lloyds Banking Group PLC, 7.50% to 6/27/24(4)(5) | 6,125 | 5,974,579 | |
Natwest Group PLC: | |||
4.60% to 6/28/31(4)(5) | 752 | 486,979 | |
6.00% to 12/29/25(4)(5) | 1,642 | 1,508,355 | |
8.00% to 8/10/25(4)(5) | 5,035 | 4,893,416 | |
PNC Financial Services Group, Inc. (The), Series V, 6.20% to 9/15/27(4)(5) | 2,475 | 2,208,159 | |
Regions Financial Corp., Series D, 5.75% to 6/15/25(4)(5) | 2,250 | 2,069,542 | |
Societe Generale S.A.: | |||
5.375% to 11/18/30(3)(4)(5) | 3,548 | 2,553,518 | |
9.375% to 11/22/27(3)(4)(5) | 662 | 640,732 | |
Standard Chartered PLC, 4.75% to 1/14/31(3)(4)(5) | 2,349 | 1,639,810 | |
Toronto-Dominion Bank (The), 8.125% to 10/31/27, 10/31/82(5) | 5,625 | 5,532,537 |
Security | Principal Amount (000's omitted) | Value | |
Banks (continued) | |||
Truist Financial Corp., Series Q, 5.10% to 3/1/30(4)(5) | $ | 4,161 | $ 3,353,274 |
UBS Group AG: | |||
4.375% to 2/10/31(3)(4)(5) | 2,750 | 1,916,073 | |
6.875% to 8/7/25(4)(5)(6) | 1,471 | 1,390,661 | |
UniCredit SpA, 7.296% to 4/2/29, 4/2/34(3)(5) | 3,765 | 3,494,905 | |
Wells Fargo & Co., Series BB, 3.90% to 3/15/26(4)(5) | 7,570 | 6,561,562 | |
$ 96,729,752 | |||
Capital Markets — 0.4% | |||
AerCap Holdings NV, 5.875% to 10/10/24, 10/10/79(5) | $ | 507 | $ 476,374 |
Charles Schwab Corp. (The): | |||
Series G, 5.375% to 6/1/25(4)(5) | 1,775 | 1,694,341 | |
Series I, 4.00% to 6/1/26(4)(5) | 3,551 | 2,822,764 | |
$ 4,993,479 | |||
Diversified Financial Services — 0.9% | |||
Air Lease Corp., Series B, 4.65% to 6/15/26(4)(5) | $ | 3,579 | $ 3,055,186 |
Ally Financial, Inc., 6.70%, 2/14/33 | 1,215 | 1,021,811 | |
Alpha Holding S.A. de CV: | |||
9.00%, 2/10/25(3)(7) | 3,050 | 57,182 | |
10.00%, 12/19/22(3)(7) | 443 | 6,639 | |
American AgCredit Corp., Series A, 5.25% to 6/15/26(3)(4)(5) | 5,139 | 4,727,880 | |
Goldman Sachs Group, Inc. (The): | |||
Series V, 4.125% to 11/10/26(4)(5) | 1,046 | 830,069 | |
Series W, 7.50% to 2/10/29(4)(5) | 2,425 | 2,384,388 | |
Unifin Financiera SAB de CV, 7.375%, 2/12/26(3)(7) | 1,325 | 36,501 | |
$ 12,119,656 | |||
Electric Utilities — 1.0% | |||
Dominion Energy, Inc., Series C, 4.35% to 1/15/27(4)(5) | $ | 1,941 | $ 1,589,001 |
Edison International, Series B, 5.00% to 12/15/26(4)(5) | 757 | 675,594 | |
Emera, Inc., Series 16-A, 6.75% to 6/15/26, 6/15/76(5) | 3,025 | 2,856,166 | |
Sempra, 4.125% to 1/1/27, 4/1/52(5) | 4,252 | 3,280,356 | |
Southern California Edison Co., Series E, 9.838%, (3 mo. SOFR + 4.461%)(4)(8) | 1,705 | 1,702,610 | |
Southern Co. (The), Series 21-A, 3.75% to 6/15/26, 9/15/51(5) | 2,980 | 2,553,164 | |
$ 12,656,891 | |||
Food Products — 0.4% | |||
Land O' Lakes, Inc., 8.00%(3)(4) | $ | 5,982 | $ 5,323,980 |
$ 5,323,980 |
Security | Principal Amount (000's omitted) | Value | |
Independent Power and Renewable Electricity Producers — 0.2% | |||
Algonquin Power & Utilities Corp., 4.75% to 1/18/27, 1/18/82(5) | $ | 2,886 | $ 2,281,397 |
$ 2,281,397 | |||
Insurance — 1.3% | |||
Corebridge Financial, Inc., 6.875% to 9/15/27, 12/15/52(5) | $ | 3,575 | $ 3,307,068 |
Liberty Mutual Group, Inc., 4.125% to 9/15/26, 12/15/51(3)(5) | 6,337 | 5,042,034 | |
Lincoln National Corp., Series C, 9.25% to 12/1/27(4)(5) | 1,046 | 1,055,411 | |
Prudential Financial, Inc., 5.125% to 11/28/31, 3/1/52(5) | 1,490 | 1,269,669 | |
QBE Insurance Group, Ltd., 5.875% to 5/12/25(3)(4)(5) | 6,060 | 5,806,817 | |
$ 16,480,999 | |||
Oil and Gas — 0.2% | |||
Petroleos Mexicanos, 6.50%, 3/13/27 | $ | 2,750 | $ 2,428,156 |
$ 2,428,156 | |||
Oil, Gas & Consumable Fuels — 0.5% | |||
EnLink Midstream Partners, L.P., Series C, 9.78%, (3 mo. SOFR + 4.372%)(4)(8) | $ | 3,952 | $ 3,524,394 |
Odebrecht Oil & Gas Finance, Ltd., 0.00%(3)(4) | 6,981 | 143,977 | |
Plains All American Pipeline, L.P., Series B, 9.736%, (3 mo. SOFR + 4.372%)(4)(8) | 2,668 | 2,520,495 | |
$ 6,188,866 | |||
Pipelines — 0.3% | |||
Enbridge, Inc., Series NC5, 8.25% to 10/15/28, 1/15/84(5) | $ | 1,675 | $ 1,606,209 |
Energy Transfer, L.P., Series B, 6.625% to 2/15/28(4)(5) | 2,514 | 1,951,492 | |
$ 3,557,701 | |||
Telecommunications — 0.2% | |||
Rogers Communications, Inc., 5.25% to 3/15/27, 3/15/82(3)(5) | $ | 3,750 | $ 3,304,724 |
$ 3,304,724 | |||
Total Corporate Bonds (identified cost $192,592,530) | $ 166,065,601 |
Exchange-Traded Funds — 0.4% |
Security | Shares | Value | |
Equity Funds — 0.4% | |||
Global X U.S. Preferred ETF | 81,664 | $ 1,446,269 | |
iShares Preferred & Income Securities ETF | 112,096 | 3,203,704 | |
Total Exchange-Traded Funds (identified cost $5,214,620) | $ 4,649,973 |
Preferred Stocks — 3.4% |
Security | Shares | Value | |
Banks — 0.4% | |||
AgriBank FCB, 6.875% to 1/1/24(5) | 50,890 | $ 5,114,445 | |
Farm Credit Bank of Texas, 9.681% to 12/15/23(3)(5) | 4,562 | 455,630 | |
$ 5,570,075 | |||
Capital Markets — 0.3% | |||
Affiliated Managers Group, Inc., 4.75% | 143,480 | $ 2,343,028 | |
Stifel Financial Corp., Series D, 4.50% | 115,200 | 1,784,448 | |
$ 4,127,476 | |||
Electric Utilities — 0.5% | |||
Brookfield BRP Holdings Canada, Inc., 4.625% | 178,000 | $ 2,433,260 | |
SCE Trust III, Series H, 5.75% to 3/15/24(5) | 70,122 | 1,692,745 | |
SCE Trust IV, Series J, 5.375% to 9/15/25(5) | 12,679 | 249,143 | |
SCE Trust V, Series K, 5.45% to 3/15/26(5) | 68,884 | 1,518,892 | |
$ 5,894,040 | |||
Insurance — 0.4% | |||
American Equity Investment Life Holding Co., Series B, 6.625% to 9/1/25(5) | 97,580 | $ 2,236,534 | |
Athene Holding, Ltd., Series C, 6.375% to 6/30/25(5) | 113,887 | 2,764,037 | |
$ 5,000,571 | |||
Oil, Gas & Consumable Fuels — 0.7% | |||
NuStar Energy, L.P., Series B, 11.315%, (3 mo. SOFR + 5.905%)(8) | 359,474 | $ 9,022,797 | |
$ 9,022,797 | |||
Pipelines — 0.4% | |||
Energy Transfer, L.P.: | |||
Series C, 10.156%, (3 mo. SOFR + 4.53%)(8) | 116,000 | $ 2,901,160 | |
Series E, 7.60% to 5/15/24(5) | 100,950 | 2,495,484 | |
$ 5,396,644 |
Security | Shares | Value | |
Real Estate Management & Development — 0.3% | |||
Brookfield Property Partners, L.P.: | |||
Series A, 5.75% | 115,762 | $ 1,134,468 | |
Series A-1, 6.50% | 102,075 | 1,149,364 | |
Series A2, 6.375% | 134,005 | 1,470,035 | |
$ 3,753,867 | |||
Retail REITs — 0.1% | |||
SITE Centers Corp., Series A, 6.375% | 74,112 | $ 1,474,088 | |
$ 1,474,088 | |||
Wireless Telecommunication Services — 0.3% | |||
United States Cellular Corp., 5.50% | 205,028 | $ 3,046,716 | |
$ 3,046,716 | |||
Total Preferred Stocks (identified cost $55,180,631) | $ 43,286,274 |
Miscellaneous — 0.0% |
Security | Shares | Value | |
Diversified Financial Services — 0.0% | |||
Alpha Holding S.A., Escrow Certificates(1)(9) | 7,410,000 | $ 0 | |
Total Miscellaneous (identified cost $0) | $ 0 |
Short-Term Investments — 2.7% |
Security | Shares | Value | |
Morgan Stanley Institutional Liquidity Funds - Government Portfolio, Institutional Class, 5.25%(10) | 34,329,290 | $ 34,329,290 | |
Total Short-Term Investments (identified cost $34,329,290) | $ 34,329,290 | ||
Total Investments — 128.8%(11) (identified cost $1,666,742,178) | $1,654,202,545 | ||
Other Assets, Less Liabilities — (28.8)% | $ (369,833,442) | ||
Net Assets — 100.0% | $1,284,369,103 |
The percentage shown for each investment category in the Portfolio of Investments is based on net assets. | |
(1) | Non-income producing security. |
(2) | All or a portion of this security was on loan at October 31, 2023 pursuant to the Liquidity Agreement (see Note 7). The aggregate market value of securities on loan at October 31, 2023 was $332,736,655. |
(3) | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be sold in certain transactions in reliance on an exemption from registration (normally to qualified institutional buyers). At October 31, 2023, the aggregate value of these securities is $48,678,916 or 3.8% of the Fund's net assets. |
(4) | Perpetual security with no stated maturity date but may be subject to calls by the issuer. |
(5) | Security converts to variable rate after the indicated fixed-rate coupon period. |
(6) | Security exempt from registration under Regulation S of the Securities Act of 1933, as amended, which exempts from registration securities offered and sold outside the United States. Security may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933, as amended. At October 31, 2023, the aggregate value of these securities is $1,390,661 or 0.1% of the Fund's net assets. |
(7) | Issuer is in default with respect to interest and/or principal payments. |
(8) | Variable rate security. The stated interest rate represents the rate in effect at October 31, 2023. |
(9) | For fair value measurement disclosure purposes, security is categorized as Level 3 (see Note 9). |
(10) | May be deemed to be an affiliated investment company. The rate shown is the annualized seven-day yield as of October 31, 2023. |
(11) | The Fund has granted a security interest in all the Fund's investments, unless otherwise pledged, in connection with the Liquidity Agreement (see Note 7). |
Country Concentration of Portfolio | ||
Country | Percentage of Total Investments | Value |
United States | 60.2% | $995,011,729 |
United Kingdom | 10.4 | 171,399,767 |
France | 4.4 | 73,271,130 |
Switzerland | 3.8 | 63,115,929 |
Japan | 2.7 | 44,713,318 |
Spain | 2.6 | 43,774,684 |
Netherlands | 2.5 | 41,438,023 |
Germany | 2.2 | 36,051,637 |
Canada | 2.1 | 34,886,021 |
Australia | 1.8 | 29,227,540 |
Denmark | 1.3 | 22,320,832 |
Ireland | 1.0 | 17,319,892 |
India | 0.9 | 15,533,788 |
Hong Kong | 0.9 | 14,151,108 |
Bermuda | 0.8 | 12,831,742 |
Taiwan | 0.8 | 12,584,257 |
Belgium | 0.6 | 9,999,776 |
Mexico | 0.5 | 7,677,517 |
Italy | 0.2 | 3,494,905 |
Colombia | 0.0 (1) | 605,000 |
Brazil | 0.0 (1) | 143,977 |
Exchange-Traded Funds | 0.3 | 4,649,973 |
Total Investments | 100.0% | $1,654,202,545 |
(1) | Amount is less than 0.05%. |
Abbreviations: | |
ADR | – American Depositary Receipt |
PFC Shares | – Preference Shares |
REITs | – Real Estate Investment Trusts |
SOFR | – Secured Overnight Financing Rate |
October 31, 2023 | |
Assets | |
Unaffiliated investments, at value (identified cost $1,632,412,888) — including $332,736,655 of securities on loan | $ 1,619,873,255 |
Affiliated investments, at value (identified cost $34,329,290) | 34,329,290 |
Cash | 51,453 |
Foreign currency, at value (identified cost $120,124) | 119,648 |
Interest and dividends receivable | 2,648,960 |
Dividends receivable from affiliated investments | 166,804 |
Receivable for investments sold | 1,635,100 |
Tax reclaims receivable | 8,636,759 |
Trustees' deferred compensation plan | 241,865 |
Total assets | $1,667,703,134 |
Liabilities | |
Liquidity Agreement borrowings | $ 370,000,000 |
Payable for investments purchased | 9,433,445 |
Payable to affiliates: | |
Investment adviser fee | 1,211,817 |
Trustees' fees | 9,042 |
Trustees' deferred compensation plan | 241,865 |
Accrued foreign capital gains taxes | 63,411 |
Accrued expenses | 2,374,451 |
Total liabilities | $ 383,334,031 |
Net Assets | $1,284,369,103 |
Sources of Net Assets | |
Common shares, $0.01 par value, unlimited number of shares authorized | $ 764,590 |
Additional paid-in capital | 1,304,687,477 |
Accumulated loss | (21,082,964) |
Net Assets | $1,284,369,103 |
Common Shares Issued and Outstanding | 76,458,956 |
Net Asset Value Per Common Share | |
Net assets ÷ common shares issued and outstanding | $ 16.80 |
Year Ended | |
October 31, 2023 | |
Investment Income | |
Dividend income (net of foreign taxes withheld of $8,076,576) | $ 69,147,496 |
Dividend income from affiliated investments | 889,897 |
Interest income | 10,382,221 |
Other income | 19,709,129 |
Total investment income | $100,128,743 |
Expenses | |
Investment adviser fee | $ 14,536,786 |
Trustees’ fees and expenses | 108,066 |
Custodian fee | 508,537 |
Transfer and dividend disbursing agent fees | 18,144 |
Legal and accounting services | 129,562 |
Printing and postage | 419,357 |
Interest expense and fees | 20,470,635 |
Miscellaneous | 139,514 |
Total expenses | $ 36,330,601 |
Deduct: | |
Waiver and/or reimbursement of expenses by affiliates | $ 27,499 |
Total expense reductions | $ 27,499 |
Net expenses | $ 36,303,102 |
Net investment income | $ 63,825,641 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss): | |
Investment transactions (net of foreign capital gains taxes of $153,475) | $ 9,321,000 |
Proceeds from securities litigation settlements | 55,920 |
Futures contracts | 17,676,189 |
Foreign currency transactions | (603,692) |
Net realized gain | $ 26,449,417 |
Change in unrealized appreciation (depreciation): | |
Investments (including net decrease in accrued foreign capital gains taxes of $178,072) | $ 61,286,523 |
Foreign currency | 579,741 |
Net change in unrealized appreciation (depreciation) | $ 61,866,264 |
Net realized and unrealized gain | $ 88,315,681 |
Net increase in net assets from operations | $152,141,322 |
Year Ended October 31, | ||
2023 | 2022 | |
Increase (Decrease) in Net Assets | ||
From operations: | ||
Net investment income | $ 63,825,641 | $ 38,670,263 |
Net realized gain | 26,449,417 | 82,416,737 |
Net change in unrealized appreciation (depreciation) | 61,866,264 | (505,718,500) |
Net increase (decrease) in net assets from operations | $ 152,141,322 | $ (384,631,500) |
Distributions to shareholders | $ (91,842,498) | $ (119,073,693) |
Capital share transactions: | ||
Reinvestment of distributions | $ — | $ 2,700,502 |
Net increase in net assets from capital share transactions | $ — | $ 2,700,502 |
Net increase (decrease) in net assets | $ 60,298,824 | $ (501,004,691) |
Net Assets | ||
At beginning of year | $ 1,224,070,279 | $ 1,725,074,970 |
At end of year | $1,284,369,103 | $1,224,070,279 |
Year Ended | |
October 31, 2023 | |
Cash Flows From Operating Activities | |
Net increase in net assets from operations | $ 152,141,322 |
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities: | |
Investments purchased | (1,693,773,493) |
Investments sold | 1,727,506,936 |
Increase in short-term investments, net | (22,841,751) |
Net amortization/accretion of premium (discount) | 170,044 |
Decrease in interest and dividends receivable | 575,249 |
Increase in dividends receivable from affiliated investments | (78,939) |
Decrease in receivable from the transfer agent | 566,402 |
Increase in tax reclaims receivable | (2,548,083) |
Increase in Trustees’ deferred compensation plan | (241,865) |
Increase in payable to affiliate for investment adviser fee | 97,078 |
Decrease in payable to affiliate for Trustees' fees | (181) |
Increase in payable to affiliate for Trustees' deferred compensation plan | 241,865 |
Increase in accrued expenses | 868,677 |
Net change in unrealized (appreciation) depreciation from investments | (61,286,523) |
Net realized gain from investments | (9,474,475) |
Net cash provided by operating activities | $ 91,922,263 |
Cash Flows From Financing Activities | |
Cash distributions paid | $ (91,842,498) |
Net cash used in financing activities | $ (91,842,498) |
Net increase in cash* | $ 79,765 |
Cash at beginning of year (including foreign currency) | $ 91,336 |
Cash at end of year (including foreign currency) | $ 171,101 |
Supplemental disclosure of cash flow information: | |
Cash paid for interest and fees on borrowings | $ 19,682,104 |
* | Includes net change in unrealized (appreciation) depreciation on foreign currency of $405. |
Year Ended October 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net asset value — Beginning of year | $ 16.010 | $ 22.610 | $ 16.160 | $ 17.490 | $ 16.730 |
Income (Loss) From Operations | |||||
Net investment income(1) | $ 0.835 | $ 0.507 | $ 0.826 | $ 1.042 | $ 1.218 |
Net realized and unrealized gain (loss) | 1.156 | (5.547) | 6.937 | (1.142) | 0.772 |
Total income (loss) from operations | $ 1.991 | $ (5.040) | $ 7.763 | $ (0.100) | $ 1.990 |
Less Distributions | |||||
From net investment income | $ (0.838) | $ (0.505) | $ (0.894) | $ (1.230) | $ (1.166) |
From net realized gain | (0.363) | (1.055) | (0.419) | — | (0.064) |
Total distributions | $ (1.201) | $ (1.560) | $ (1.313) | $ (1.230) | $ (1.230) |
Net asset value — End of year | $ 16.800 | $ 16.010 | $ 22.610 | $ 16.160 | $ 17.490 |
Market value — End of year | $ 14.470 | $ 16.290 | $ 22.200 | $ 14.290 | $ 16.770 |
Total Investment Return on Net Asset Value(2) | 13.04% | (22.92)% | 49.37% | 0.16% | 13.06% |
Total Investment Return on Market Value(2) | (4.31)% | (20.12)% | 65.85% | (7.63)% | 16.70% |
Ratios/Supplemental Data | |||||
Net assets, end of year (000’s omitted) | $1,284,369 | $1,224,070 | $1,725,075 | $1,233,156 | $1,334,205 |
Ratios (as a percentage of average daily net assets): | |||||
Expenses excluding interest and fees | 1.18% | 1.14% | 1.12% | 1.21% | 1.22% |
Interest and fee expense | 1.52% | 0.44% | 0.15% | 0.50% | 1.01% |
Total expenses | 2.70% (3) | 1.58% (3) | 1.27% | 1.71% | 2.23% |
Net investment income | 4.74% | 2.63% | 3.93% | 6.26% | 7.25% |
Portfolio Turnover | 101% | 59% | 111% | 224% | 175% |
Senior Securities: | |||||
Total amount outstanding (in 000’s) | $ 370,000 | $ 370,000 | $ 370,000 | $ 370,000 | $ 425,000 |
Asset coverage per $1,000(4) | $ 4,471 | $ 4,308 | $ 5,662 | $ 4,333 | $ 4,139 |
(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. Distributions are assumed to be reinvested at prices obtained under the Fund's dividend reinvestment plan. |
(3) | Includes a reduction by the investment adviser of a portion of its adviser fee due to the Fund’s investment in the Liquidity Fund (equal to less than 0.005% of average daily net assets for the years ended October 31, 2023 and 2022). |
(4) | Calculated by subtracting the Fund’s total liabilities (not including the borrowings payable/notes payable) from the Fund’s total assets, and dividing the result by the borrowings payable/notes payable balance in thousands. |
Year Ended October 31, | ||
2023 | 2022 | |
Ordinary income | $64,115,973 | $38,572,931 |
Long-term capital gains | $27,726,525 | $80,500,762 |
Net unrealized depreciation | $ (21,875,274) |
Other temporary differences | 792,310 |
Accumulated loss | $(21,082,964) |
Aggregate cost | $1,675,776,355 |
Gross unrealized appreciation | $ 119,391,135 |
Gross unrealized depreciation | (140,964,945) |
Net unrealized depreciation | $ (21,573,810) |
Average Daily Gross Assets | Annual Fee Rate |
Up to and including $1.5 billion | 0.850% |
Over $1.5 billion up to and including $3 billion | 0.830% |
Over $3 billion up to and including $5 billion | 0.810% |
Over $5 billion | 0.790% |
Derivative | Realized Gain (Loss) on Derivatives Recognized in Income | Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income |
Futures contracts | $17,676,189 (1) | $ — |
(1) | Statement of Operations location: Net realized gain (loss): Futures contracts. |
Futures Contracts — Long | Futures Contracts — Short |
$67,951,000 | $68,256,000 |
amounted to $332,736,655 and $338,271,448, respectively.
Name | Value, beginning of period | Purchases | Sales proceeds | Net realized gain (loss) | Change in unrealized appreciation (depreciation) | Value, end of period | Dividend income | Shares, end of period |
Short-Term Investments | ||||||||
Liquidity Fund | $11,487,539 | $486,264,897 | $(463,423,146) | $ — | $ — | $34,329,290 | $889,897 | 34,329,290 |
• | 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) |
Asset Description | Level 1 | Level 2 | Level 3* | Total |
Common Stocks: | ||||
Communication Services | $ 79,043,532 | $ 12,150,396 | $ — | $ 91,193,928 |
Consumer Discretionary | 78,713,223 | 67,568,818 | — | 146,282,041 |
Consumer Staples | 50,309,922 | 65,069,968 | — | 115,379,890 |
Energy | 58,748,952 | — | — | 58,748,952 |
Financials | 120,932,363 | 87,063,227 | — | 207,995,590 |
Health Care | 103,996,746 | 96,175,722 | — | 200,172,468 |
Industrials | 82,898,972 | 93,885,606 | — | 176,784,578 |
Information Technology | 290,898,749 | 52,622,651 | — | 343,521,400 |
Materials | — | 18,940,779 | — | 18,940,779 |
Real Estate | 10,510,338 | — | — | 10,510,338 |
Utilities | 18,799,841 | 17,541,602 | — | 36,341,443 |
Total Common Stocks | $ 894,852,638 | $ 511,018,769** | $ — | $1,405,871,407 |
Corporate Bonds | $ — | $ 166,065,601 | $ — | $ 166,065,601 |
Exchange-Traded Funds | 4,649,973 | — | — | 4,649,973 |
Preferred Stocks: | ||||
Communication Services | 3,046,716 | — | — | 3,046,716 |
Energy | 14,419,441 | — | — | 14,419,441 |
Financials | 9,128,047 | 5,570,075 | — | 14,698,122 |
Real Estate | 5,227,955 | — | — | 5,227,955 |
Utilities | 5,894,040 | — | — | 5,894,040 |
Total Preferred Stocks | $ 37,716,199 | $ 5,570,075 | $ — | $ 43,286,274 |
Miscellaneous | $ — | $ — | $ 0 | $ 0 |
Short-Term Investments | 34,329,290 | — | — | 34,329,290 |
Total Investments | $ 971,548,100 | $ 682,654,445 | $ 0 | $1,654,202,545 |
* | None of the unobservable inputs for Level 3 assets, individually or collectively, had a material impact on the Fund. |
** | Includes foreign equity securities whose values were adjusted to reflect market trading of comparable securities or other correlated instruments that occurred after the close of trading in their applicable foreign markets. |
Boston, Massachusetts
December 19, 2023
Number of Shares | ||||
Nominees for Trustee | For | Withheld | ||
Alan C. Bowser | 59,971,971 | 3,373,810 | ||
Mark R. Fetting | 60,058,368 | 3,287,413 | ||
Keith Quinton | 60,142,528 | 3,203,253 |
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. |
c/o Equiniti Trust Company, LLC
P.O. Box 922
Wall Street Station
New York, NY 10269-0560
Name and Year of Birth | Fund Position(s) | Length of Service | Principal Occupation(s) and Other Directorships During Past Five Years and Other Relevant Experience |
Interested Trustee | |||
Anchal Pachnanda(1) 1980 | Class III Trustee | Until 2024. 3 years. Since 2023. | Co-Head of Strategy of MSIM (since 2019). Formerly, Head of Strategy of MSIM (2017-2019). Ms. Pachnanda is an interested person because of her position with MSIM, which is an affiliate of the Fund. Other Directorships. None. |
Noninterested Trustees | |||
Alan C. Bowser(2) 1962 | Class II Trustee | Until 2026. 3 years. Since 2023. | Private investor. Formerly, Chief Diversity Officer, Partner and a member of the Operating Committee, and formerly served as Senior Advisor on Diversity and Inclusion for the firm's chief executive officer, Co-Head of the Americas Region, and Senior Client Advisor of Bridgewater Associates, an asset management firm (2011- 2023). Other Directorships. Independent Director of Stout Risius Ross (a middle market professional services advisory firm) (since 2021). |
Mark R. Fetting 1954 | Class II Trustee | Until 2026. 3 years. Since 2016. | Private investor. Formerly held various positions at Legg Mason, Inc. (investment management firm) (2000-2012), including President, Chief Executive Officer, Director and Chairman (2008-2012), Senior Executive Vice President (2004-2008) and Executive Vice President (2001-2004). Formerly, President of Legg Mason family of funds (2001-2008). Formerly, Division President and Senior Officer of Prudential Financial Group, Inc. and related companies (investment management firm) (1991-2000). Other Directorships. None. |
Cynthia E. Frost 1961 | Class I Trustee | Until 2025. 3 years. Since 2014. | Private investor. Formerly, Chief Investment Officer of Brown University (university endowment) (2000-2012). Formerly, Portfolio Strategist for Duke Management Company (university endowment manager) (1995-2000). Formerly, Managing Director, Cambridge Associates (investment consulting company) (1989-1995). Formerly, Consultant, Bain and Company (management consulting firm) (1987-1989). Formerly, Senior Equity Analyst, BA Investment Management Company (1983-1985). Other Directorships. None. |
George J. Gorman 1952 | Chairperson of the Board and Class III Trustee | Until 2024. 3 years. Chairperson of the Board since 2021 and Trustee since 2014. | Principal at George J. Gorman LLC (consulting firm). Formerly, Senior Partner at Ernst & Young LLP (a registered public accounting firm) (1974-2009). Other Directorships. None. |
Name and Year of Birth | Fund Position(s) | Length of Service | Principal Occupation(s) and Other Directorships During Past Five Years and Other Relevant Experience |
Noninterested Trustees (continued) | |||
Valerie A. Mosley 1960 | Class I Trustee | Until 2025. 3 years. Since 2014. | Chairwoman and Chief Executive Officer of Valmo Ventures (a consulting and investment firm). Founder of Upward Wealth, Inc., dba BrightUp, a fintech platform. Formerly, Partner and Senior Vice President, Portfolio Manager and Investment Strategist at Wellington Management Company, LLP (investment management firm) (1992-2012). Formerly, Chief Investment Officer, PG Corbin Asset Management (1990-1992). Formerly worked in institutional corporate bond sales at Kidder Peabody (1986-1990). Other Directorships. Director of DraftKings, Inc. (digital sports entertainment and gaming company) (since September 2020). Director of Envestnet, Inc. (provider of intelligent systems for wealth management and financial wellness) (since 2018). Formerly, Director of Dynex Capital, Inc. (mortgage REIT) (2013-2020) and Director of Groupon, Inc. (e-commerce provider) (2020-2022). |
Keith Quinton 1958 | Class II Trustee | Until 2026. 3 years Since 2018. | Private investor, researcher and lecturer. Formerly, Independent Investment Committee Member at New Hampshire Retirement System (2017-2021). Formerly, Portfolio Manager and Senior Quantitative Analyst at Fidelity Investments (investment management firm) (2001-2014). Other Directorships. Formerly, Director (2016-2021) and Chairman (2019-2021) of New Hampshire Municipal Bond Bank. |
Marcus L. Smith 1966 | Class III Trustee | Until 2024. 3 years. Since 2018. | Private investor and independent corporate director. Formerly, Chief Investment Officer, Canada (2012-2017), Chief Investment Officer, Asia (2010-2012), Director of Asian Research (2004-2010) and portfolio manager (2001-2017) at MFS Investment Management (investment management firm). Other Directorships. Director of First Industrial Realty Trust, Inc. (an industrial REIT) (since 2021). Director of MSCI Inc. (global provider of investment decision support tools) (since 2017). Formerly, Director of DCT Industrial Trust Inc. (logistics real estate company) (2017-2018). |
Susan J. Sutherland 1957 | Class III Trustee | Until 2024. 3 years. Since 2015. | Private investor. Director of Ascot Group Limited and certain of its subsidiaries (insurance and reinsurance) (since 2017). Formerly, Director of Hagerty Holding Corp. (insurance) (2015-2018) and Montpelier Re Holdings Ltd. (insurance and reinsurance) (2013-2015). Formerly, Associate, Counsel and Partner at Skadden, Arps, Slate, Meagher & Flom LLP (law firm) (1982-2013). Other Directorships. Formerly, Director of Kairos Acquisition Corp. (insurance/InsurTech acquisition company) (2021-2023). |
Scott E. Wennerholm 1959 | Class I Trustee | Until 2025. 3 years. Since 2016 | Private investor. Formerly, Trustee at Wheelock College (postsecondary institution) (2012-2018). Formerly, Consultant at GF Parish Group (executive recruiting firm) (2016-2017). Formerly, Chief Operating Officer and Executive Vice President at BNY Mellon Asset Management (investment management firm) (2005-2011). Formerly, Chief Operating Officer and Chief Financial Officer at Natixis Global Asset Management (investment management firm) (1997-2004). Formerly, Vice President at Fidelity Investments Institutional Services (investment management firm) (1994-1997). Other Directorships. None. |
Nancy A. Wiser 1967 | Class I Trustee | Until 2025. 3 years. Since 2022. | Formerly, Executive Vice President and the Global Head of Operations at Wells Fargo Asset Management (2011-2021). Other Directorships. None. |
Name and Year of Birth | Fund Position(s) | Length of Service | Principal Occupation(s) During Past Five Years |
Principal Officers who are not Trustees | |||
R. Kelly Williams, Jr. 1971 | President | Since 2023 | President and Chief Operating Officer of Atlanta Capital Management Company, LLC. Officer of 21 registered investment companies managed by Eaton Vance or BMR. |
Deidre E. Walsh 1971 | Vice President and Chief Legal Officer | Since 2009 | Vice President of EVM and BMR. Also Vice President of CRM. |
James F. Kirchner 1967 | Treasurer | Since 2007 | Vice President of EVM and BMR. Also Vice President of CRM. |
Name and Year of Birth | Fund Position(s) | Length of Service | Principal Occupation(s) During Past Five Years |
Principal Officers who are not Trustees (continued) | |||
Nicholas S. Di Lorenzo 1987 | Secretary | Since 2022 | Formerly, associate (2012-2021) and counsel (2022) at Dechert LLP. |
Richard F. Froio 1968 | Chief Compliance Officer | Since 2017 | Vice President of EVM and BMR since 2017. Formerly, Deputy Chief Compliance Officer (Adviser/Funds) and Chief Compliance Officer (Distribution) at PIMCO (2012-2017) and Managing Director at BlackRock/Barclays Global Investors (2009-2012). |
Privacy Notice | April 2021 |
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Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include:■ Social Security number and income ■ investment experience and risk tolerance ■ checking account number and wire transfer instructions |
How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Eaton Vance chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does Eaton Vance share? | Can you limit this sharing? |
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No |
For our marketing purposes — to offer our products and services to you | Yes | No |
For joint marketing with other financial companies | No | We don’t share |
For our investment management affiliates’ everyday business purposes — information about your transactions, experiences, and creditworthiness | Yes | Yes |
For our affiliates’ everyday business purposes — information about your transactions and experiences | Yes | No |
For our affiliates’ everyday business purposes — information about your creditworthiness | No | We don’t share |
For our investment management affiliates to market to you | Yes | Yes |
For our affiliates to market to you | No | We don’t share |
For nonaffiliates to market to you | No | We don’t share |
To limit our sharing | Call toll-free 1-800-262-1122 or email: EVPrivacy@eatonvance.comPlease note:If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing. |
Questions? | Call toll-free 1-800-262-1122 or email: EVPrivacy@eatonvance.com |
Privacy Notice — continued | April 2021 |
Who we are | |
Who is providing this notice? | Eaton Vance Management, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management (International) Limited, Eaton Vance Advisers International Ltd., Eaton Vance Global Advisors Limited, Eaton Vance Management’s Real Estate Investment Group, Boston Management and Research, Calvert Research and Management, Eaton Vance and Calvert Fund Families and our investment advisory affiliates (“Eaton Vance”) (see Investment Management Affiliates definition below) |
What we do | |
How does Eaton Vance protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information. |
How does Eaton Vance collect my personal information? | We collect your personal information, for example, when you■ open an account or make deposits or withdrawals from your account ■ buy securities from us or make a wire transfer ■ give us your contact informationWe also collect your personal information from others, such as credit bureaus, affiliates, or other companies. |
Why can’t I limit all sharing? | Federal law gives you the right to limit only■ sharing for affiliates’ everyday business purposes — information about your creditworthiness ■ affiliates from using your information to market to you ■ sharing for nonaffiliates to market to youState laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |
Definitions | |
Investment Management Affiliates | Eaton Vance Investment Management Affiliates include registered investment advisers, registered broker- dealers, and registered and unregistered funds. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies.■ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.■ Eaton Vance does not share with nonaffiliates so they can market to you. |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.■ Eaton Vance doesn’t jointly market. |
Other important information | |
Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Nonaffiliates unless you provide us with your written consent to share such information.California: Except as permitted by law, we will not share personal information we collect about California residents with Nonaffiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us. |
Two International Place
Boston, MA 02110
125 Old Broad Street
London, EC2N 1AR
United Kingdom
One Congress Street, Suite 1
Boston, MA 02114-2016
6201 15th Avenue
Brooklyn, NY 11219
200 Berkeley Street
Boston, MA 02116-5022
Boston, MA 02110
Item 2. Code of Ethics
The registrant (sometimes referred to as the “Fund”) 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. The registrant has not amended the code of ethics as described in Form N-CSR during the period covered by this report. The registrant has not granted any waiver, including an implicit waiver, from a provision of the code of ethics as described in Form N-CSR during the period covered by this report.
Item 3. Audit Committee Financial Expert
The registrant’s Board of Trustees (the “Board”) has designated George J. Gorman and Scott E. Wennerholm, each an independent trustee, as audit committee financial experts. Mr. Gorman is a certified public accountant who is the Principal at George J. Gorman LLC (a consulting firm). Previously, Mr. Gorman served in various capacities at Ernst & Young LLP (a registered public accounting firm), including as Senior Partner. Mr. Gorman also has experience serving as an independent trustee and audit committee financial expert of other
mutual fund complexes. Mr. Wennerholm is a private investor. Previously, Mr. Wennerholm served as a Trustee at Wheelock College (postsecondary institution), as a Consultant at GF Parish Group (executive recruiting firm), Chief Operating Officer and Executive Vice President at BNY Mellon Asset Management (investment management firm), Chief Operating Officer and Chief Financial Officer at Natixis Global Asset Management (investment management firm), and Vice President at Fidelity Investments Institutional Services (investment management 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 October 31, 2022 and October 31, 2023 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 | 10/31/22 | 10/31/23 | ||||||
Audit Fees | $ | 61,400 | $ | 61,400 | ||||
Audit-Related Fees(1) | $ | 0 | $ | 0 | ||||
Tax Fees(2) | $ | 4,940 | $ | 0 | ||||
All Other Fees(3) | $ | 0 | $ | 0 | ||||
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Total | $ | 66,340 | $ | 61,400 | ||||
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(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 the registrant’s 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 and other related tax compliance/planning matters. |
(3) | All other fees consist of the aggregate fees billed for products and services provided by the registrant’s 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 October 31, 2022 and October 31, 2023; 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 | 10/31/22 | 10/31/23 | ||||||
Registrant | $ | 4,940 | $ | 0 | ||||
Eaton Vance(1) | $ | 52,836 | $ | 0 |
(1) | The investment adviser to the registrant, as well as any of its affiliates that provide ongoing services to the registrant, are subsidiaries of Morgan Stanley. |
(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.
(i) Not applicable.
(j) Not applicable.
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. George J. Gorman, Keith Quinton, Scott E. Wennerholm (Chair), and Nancy A. Wiser 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 the Fund 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 Policies annually. 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, or any committee, sub-committee or group of independent trustees identified by the Board, which will instruct the investment adviser on the appropriate course of action. If the Board Members are unable to meet and the failure to vote a proxy would have a material adverse impact on the Fund, the investment adviser may vote such proxy, provided that it discloses the existence of the material conflict to the Chairperson of the Fund’s Board as soon as practicable and to the Board at its next meeting.
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 in accordance with customized proxy voting guidelines (the “Guidelines”) and/or refer them back to the investment adviser pursuant to the Policies.
The Agent is required to establish and maintain adequate internal controls and policies in connection with the provision of proxy voting services, including methods to reasonably ensure that its analysis and recommendations are not influenced by a conflict of interest. The Guidelines include voting guidelines for matters relating to, among other things, the election of directors, approval of independent auditors, executive compensation, corporate structure and anti-takeover defenses. The investment adviser may cause the Fund to abstain from voting from time to time where it determines that the costs associated with voting a proxy outweigh the benefits derived from exercising the right to vote or it is unable to access or access timely ballots or other proxy information, among other stated reasons. The Agent will refer Fund proxies to the investment adviser for instructions under circumstances where, among others: (1) the application of the Guidelines is unclear; (2) a particular proxy question is not covered by the Guidelines; or (3) the Guidelines require input from the investment adviser. When a proxy voting issue has been referred to the investment adviser, the analyst (or portfolio manager if applicable) covering the company subject to the proxy proposal determines the final vote (or decision not to vote) and the investment adviser’s Proxy Administrator (described below) instructs the Agent to vote accordingly for securities held by the Fund. Where more than one analyst covers a particular company and the recommendations of such analysts voting a proposal conflict, the investment adviser’s Global Proxy Group (described below) will review such recommendations and any other available information related to the proposal and determine the manner in which it should be voted, which may result in different recommendations for the Fund that may differ from other clients of the investment adviser.
The investment adviser has appointed a Proxy Administrator to assist in the coordination of the voting of client proxies (including the Fund’s) in accordance with the Guidelines and the Policies. The investment adviser and its affiliates have also established a Global Proxy Group. The Global Proxy Group develops the investment adviser’s positions on all major corporate issues, creates the Guidelines and oversees the proxy voting process. The Proxy Administrator maintains a record of all proxy questions that have been referred by the Agent, all applicable recommendations, analysis and research received and any resolution of the matter. Before instructing the Agent to vote contrary to the Guidelines or the recommendation of the Agent, the Proxy Administrator will provide the Global Proxy Group with the Agent’s recommendation for the proposal along with any other relevant materials, including the basis for the analyst’s recommendation. The Proxy Administrator will then instruct the Agent to vote the proxy in the manner determined by the Global Proxy Group. A similar process will be followed if the Agent has a conflict of interest with respect to a proxy. The investment adviser will report to the Fund’s Board any votes cast contrary to the Guidelines or Agent recommendations, as applicable, no less than annually.
The investment adviser’s Global Proxy Group is responsible for monitoring and resolving possible material conflicts with respect to proxy voting. Because the Guidelines are predetermined and designed to be in the best interests of shareholders, application of the Guidelines to vote client proxies should, in most cases, adequately address any possible conflict of interest. The investment adviser will monitor situations that may result in a conflict of interest between any of its clients and the investment adviser or any of its affiliates by maintaining a list of significant existing and prospective corporate clients. The Proxy Administrator will compare such list with the names of companies of which he or she has been referred a proxy statement (the “Proxy Companies”). If a company on the list is also a Proxy Company, the Proxy Administrator will report that fact to the Global Proxy Group. If the Proxy Administrator intends to instruct the Agent to vote in a manner inconsistent with the Guidelines, the Global Proxy Group will first determine, in consultation with legal counsel if necessary, whether a material conflict exists. If it is determined that a material conflict exists, the investment adviser will
seek instruction on how the proxy should be voted from the Fund’s Board, or any committee or subcommittee identified by the Board. If a matter is referred to the Global Proxy Group, the decision made and basis for the decision will be documented by the Proxy Administrator and/or Global Proxy Group.
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” or “Eaton Vance”) is the investment adviser of the Fund and Eaton Vance Advisers International Ltd. (“EVAIL”) is the sub-adviser of the Fund. Derek J.V. DiGregorio, Christopher M. Dyer and Joseph Mehlman, CFA comprise the investment team responsible for the overall and day-to-day management of the Fund’s investments.
Mr. DiGregorio is a Vice President of EVM, has been a portfolio manager of the Fund since July 2021 and has been employed by EVM for more than five years. Mr. Dyer is a Vice President and Director of EVAIL, is the Director of Global Equity for the Eaton Vance organization and has been a portfolio manager of the Fund since September 2015. Prior to joining EVAIL in November 2017, Mr. Dyer was a Vice President of Eaton Vance Management (International) Limited. Mr. Mehlman is Vice President of EVM and a Managing Director at Morgan Stanley Investment Management Inc., an affiliate of EVM. Mr. Mehlman has been employed by the Morgan Stanley organization for more than five years and has managed the Fund since November 2022. This information is provided as of the date of filing this report.
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 All Accounts | Total Assets of All Accounts | Number of Accounts Paying a Performance Fee | Total Assets of Accounts Paying a Performance Fee | |||||||||||||
Derek J.V. DiGregorio(1) | ||||||||||||||||
Registered Investment Companies | 7 | $6,136.5 | 0 | $0 | ||||||||||||
Other Pooled Investment Vehicles | 0 | $0 | 0 | $0 | ||||||||||||
Other Accounts | 0 | $0 | 0 | $0 | ||||||||||||
Christopher M. Dyer(1) | ||||||||||||||||
Registered Investment Companies | 7 | $6,765.1 | 0 | $0 | ||||||||||||
Other Pooled Investment Vehicles | 0 | $0 | 0 | $0 | ||||||||||||
Other Accounts | 1 | $4,165.6 | 0 | $0 | ||||||||||||
Joseph Mehlman, CFA | ||||||||||||||||
Registered Investment Companies | 2 | $624.5 | 0 | $0 | ||||||||||||
Other Pooled Investment Vehicles | 32 | $4,856.9 | 0 | $0 | ||||||||||||
Other Accounts | 41 | $9,841.7 | 3 | $1,455.8 |
(1) | This portfolio manager serves as portfolio manager of one or more registered investment companies that invests or may invest in one or more underlying registered investment companies in the Eaton Vance family of funds or other pooled investment vehicles sponsored by Eaton Vance. The underlying investment companies may be managed by this portfolio manager or another portfolio manager. |
The following table shows the dollar range of Fund shares beneficially owned by each portfolio manager as of the Fund’s most recent fiscal year end.
Portfolio Manager | Dollar Range of Equity Securities | |||||
Derek J.V. DiGregorio | None | |||||
Christopher M. Dyer | None | |||||
Joseph Mehlman, CFA | None |
Potential for Conflicts of Interest. It is possible that conflicts of interest may arise in connection with a portfolio manager’s management of the Fund’s investments on the one hand and the investments of other accounts for which a 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 advises. In addition, due to differences in the investment strategies or restrictions between the Fund and the other accounts, the 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 EVAIL 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 discretion in a manner that he believes is equitable to all interested persons. EVM or EVAIL have adopted several policies and procedures designed to address these potential conflicts including a code of ethics and policies that govern EVM’s and EVAIL’s trading practices, including among other things the aggregation and allocation of trades among clients, brokerage allocations, cross trades and best execution.
Compensation Structure for EVM and EVAIL
The compensation structure of Eaton Vance and its affiliates that are investment advisers (for purposes of this section “Eaton Vance”) is based on a total reward system of base salary and incentive compensation, which is paid either in the form of cash bonus, or for employees meeting the specified deferred compensation eligibility threshold, partially as a cash bonus and partially as mandatory deferred compensation. Deferred compensation granted to Eaton Vance employees is generally granted as a mix of deferred cash awards under the Investment Management Alignment Plan (IMAP) and equity-based awards in the form of stock units. The portion of incentive compensation granted in the form of a deferred compensation award and the terms of such awards are determined annually by the Compensation, Management Development and Succession Committee of Morgan Stanley.
Base salary compensation. Generally, portfolio managers receive base salary compensation based on the level of their position with the adviser.
Incentive compensation. In addition to base compensation, portfolio managers may receive discretionary year-end compensation. Incentive compensation may include:
• | Cash bonus |
• | Deferred compensation: |
• | A mandatory program that defers a portion of incentive compensation into restricted stock units or other awards based on Morgan Stanley common stock or other plans that are subject to vesting and other conditions. |
• | IMAP is a cash-based deferred compensation plan designed to increase the alignment of participants’ interests with the interests of clients. For eligible employees, a portion of their deferred |
compensation is mandatorily deferred into IMAP on an annual basis. Awards granted under IMAP are notionally invested in referenced funds available pursuant to the plan, which are funds advised by MSIM and its affiliates that are investment advisers. Portfolio managers are required to notionally invest a minimum of 40% of their account balance in the designated funds that they manage and are included in the IMAP notional investment fund menu. |
• | Deferred compensation awards are typically subject to vesting over a multi-year period and are subject to cancellation through the payment date for competition, cause (i.e., any act or omission that constitutes a breach of obligation to the Funds, including failure to comply with internal compliance, ethics or risk management standards, and failure or refusal to perform duties satisfactorily, including supervisory and management duties), disclosure of proprietary information, and solicitation of employees or clients. Awards are also subject to clawback through the payment date if an employee’s act or omission (including with respect to direct supervisory responsibilities) causes a restatement of the firm’s consolidated financial results, constitutes a violation of the firm’s global risk management principles, policies and standards, or causes a loss of revenue associated with a position on which the employee was paid and the employee operated outside of internal control policies. |
Eaton Vance compensates employees based on principles of pay-for-performance, market competitiveness and risk management. Eligibility for, and the amount of any, discretionary compensation is subject to a multi-dimensional process. Specifically, consideration is given to one or more of the following factors, which can vary by portfolio management team and circumstances:
• | Revenue and profitability of the business and/or each fund/account managed by the portfolio manager |
• | Revenue and profitability of the Firm |
• | Return on equity and risk factors of both the business units and Morgan Stanley |
• | Assets managed by the portfolio manager |
• | External market conditions |
• | New business development and business sustainability |
• | Contribution to client objectives |
• | Team, product and/or MSIM and its affiliates that are investment advisers (including Eaton Vance) performance |
• | The pre-tax investment performance of the funds/accounts managed by the portfolio manager (which may, in certain cases, be measured against the applicable benchmark(s) and/or peer group(s) over one, three and five-year periods) |
• | Individual contribution and performance |
Further, the firm’s Global Incentive Compensation Discretion Policy requires compensation managers to consider Further the only legitimate, business related factors when exercising discretion in determining variable incentive compensation, including adherence to Morgan Stanley’s core values, conduct, disciplinary actions in the current performance year, risk management and risk outcomes.
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 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. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
The registrant did not accrue any income or fees/compensation related to its securities lending activities during its most recent fiscal year. See Liquidity Agreement note in the financial statements for further information.
Item 13. 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-Advantaged Global Dividend Income Fund
By: | /s/ R. Kelly Williams, Jr. | |
R. Kelly Williams, Jr. | ||
President | ||
Date: | December 22, 2023 |
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/ James F. Kirchner | |
James F. Kirchner | ||
Treasurer | ||
Date: | December 22, 2023 | |
By: | /s/ R. Kelly Williams, Jr. | |
R. Kelly Williams, Jr. | ||
President | ||
Date: | December 22, 2023 |