Statement of Assets and Liabilities (Unaudited)
|
|
|
|
|
|
|
Assets
|
|
April 30, 2021
|
|
|
|
|
|
Unaffiliated investments, at value including $297,891,973 of securities on loan (identified cost, $1,646,779,164)
|
|
$
|
1,982,933,008
|
|
|
|
|
|
Affiliated investments, at value (identified cost, $11,974,032)
|
|
|
12,802,841
|
|
|
|
|
|
Cash
|
|
|
10,080
|
|
|
|
|
|
Dividends and interest receivable
|
|
|
9,932,694
|
|
|
|
|
|
Dividends receivable from affiliated investments
|
|
|
146,863
|
|
|
|
|
|
Receivable for investments sold
|
|
|
2,778,248
|
|
|
|
|
|
Receivable for open forward foreign currency exchange contracts
|
|
|
46,415
|
|
|
|
|
|
Tax reclaims receivable
|
|
|
10,168,408
|
|
|
|
|
|
Total assets
|
|
$
|
2,018,818,557
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Liquidity Agreement borrowings
|
|
$
|
370,000,000
|
|
|
|
|
|
Payable for investments purchased
|
|
|
5,123,231
|
|
|
|
|
|
Payable for variation margin on open financial futures contracts
|
|
|
1,374,379
|
|
|
|
|
|
Due to custodian — foreign currency, at value (identified cost, $537)
|
|
|
532
|
|
|
|
|
|
Payable to affiliates:
|
|
|
|
|
|
|
|
|
Investment adviser fee
|
|
|
1,380,402
|
|
|
|
|
|
Trustees’ fees
|
|
|
7,837
|
|
|
|
|
|
Accrued expenses
|
|
|
814,479
|
|
|
|
|
|
Total liabilities
|
|
$
|
378,700,860
|
|
|
|
|
|
Net Assets
|
|
$
|
1,640,117,697
|
|
|
|
|
|
Sources of Net Assets
|
|
|
|
|
|
|
|
|
Common shares, $0.01 par value, unlimited number of shares authorized, 76,300,214 shares issued and outstanding
|
|
$
|
763,002
|
|
|
|
|
|
Additional paid-in capital
|
|
|
1,302,306,325
|
|
|
|
|
|
Distributable earnings
|
|
|
337,048,370
|
|
|
|
|
|
Net Assets
|
|
$
|
1,640,117,697
|
|
|
|
|
|
Net Asset Value
|
|
|
|
|
|
|
|
|
($1,640,117,697 ÷ 76,300,214 common shares issued and outstanding)
|
|
$
|
21.50
|
|
|
|
|
|
|
|
|
|
|
12
|
|
See Notes to Financial Statements.
|
Eaton Vance
Tax-Advantaged Global Dividend Income Fund
April 30, 2021
Statement of Operations (Unaudited)
|
|
|
|
|
|
|
Investment Income
|
|
Six Months Ended
April 30, 2021
|
|
|
|
|
|
Dividends (net of foreign taxes, $3,227,272)
|
|
$
|
42,730,240
|
|
|
|
|
|
Interest (net of foreign taxes, $18,118)
|
|
|
5,736,898
|
|
|
|
|
|
Dividends from affiliated investments (net of foreign taxes, $24,161)
|
|
|
150,692
|
|
|
|
|
|
Total investment income
|
|
$
|
48,617,830
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
Investment adviser fee
|
|
$
|
7,891,403
|
|
|
|
|
|
Trustees’ fees and expenses
|
|
|
47,748
|
|
|
|
|
|
Custodian fee
|
|
|
249,968
|
|
|
|
|
|
Transfer and dividend disbursing agent fees
|
|
|
9,822
|
|
|
|
|
|
Legal and accounting services
|
|
|
79,588
|
|
|
|
|
|
Printing and postage
|
|
|
208,021
|
|
|
|
|
|
Interest expense and fees
|
|
|
1,176,113
|
|
|
|
|
|
Miscellaneous
|
|
|
72,100
|
|
|
|
|
|
Total expenses
|
|
$
|
9,734,763
|
|
|
|
|
|
Net investment income
|
|
$
|
38,883,067
|
|
|
|
|
|
Realized and Unrealized Gain (Loss)
|
|
|
|
|
|
|
|
|
Net realized gain (loss) —
|
|
|
|
|
|
|
|
|
Investment transactions (net of foreign capital gains taxes of $117,819)
|
|
$
|
162,731,104
|
|
|
|
|
|
Investment transactions — affiliated investments
|
|
|
806,951
|
|
|
|
|
|
Proceeds from securities litigation settlements
|
|
|
7,276
|
|
|
|
|
|
Financial futures contracts
|
|
|
(6,036,080
|
)
|
|
|
|
|
Foreign currency transactions
|
|
|
(329,626
|
)
|
|
|
|
|
Forward foreign currency exchange contracts
|
|
|
(31,673
|
)
|
|
|
|
|
Net realized gain
|
|
$
|
157,147,952
|
|
|
|
|
|
Change in unrealized appreciation (depreciation) —
|
|
|
|
|
|
|
|
|
Investments
|
|
$
|
248,538,681
|
|
|
|
|
|
Investments — affiliated investments
|
|
|
(297,616
|
)
|
|
|
|
|
Financial futures contracts
|
|
|
9,381,855
|
|
|
|
|
|
Foreign currency
|
|
|
248,169
|
|
|
|
|
|
Forward foreign currency exchange contracts
|
|
|
(15,568
|
)
|
|
|
|
|
Net change in unrealized appreciation (depreciation)
|
|
$
|
257,855,521
|
|
|
|
|
|
Net realized and unrealized gain
|
|
$
|
415,003,473
|
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
453,886,540
|
|
|
|
|
|
|
|
|
|
|
13
|
|
See Notes to Financial Statements.
|
Eaton Vance
Tax-Advantaged Global Dividend Income Fund
April 30, 2021
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) in Net Assets
|
|
Six Months Ended
April 30, 2021
(Unaudited)
|
|
|
Year Ended
October 31, 2020
|
|
|
|
|
|
|
From operations —
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
38,883,067
|
|
|
$
|
79,483,583
|
|
|
|
|
|
|
Net realized gain (loss)
|
|
|
157,147,952
|
|
|
|
(36,304,686
|
)
|
|
|
|
|
|
Net change in unrealized appreciation (depreciation)
|
|
|
257,855,521
|
|
|
|
(50,378,610
|
)
|
|
|
|
|
|
Net increase (decrease) in net assets from operations
|
|
$
|
453,886,540
|
|
|
$
|
(7,199,713
|
)
|
|
|
|
|
|
Distributions to shareholders
|
|
$
|
(46,924,632
|
)
|
|
$
|
(93,849,263
|
)
|
|
|
|
|
|
Net increase (decrease) in net assets
|
|
$
|
406,961,908
|
|
|
$
|
(101,048,976
|
)
|
|
|
|
|
|
Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At beginning of period
|
|
$
|
1,233,155,789
|
|
|
$
|
1,334,204,765
|
|
|
|
|
|
|
At end of period
|
|
$
|
1,640,117,697
|
|
|
$
|
1,233,155,789
|
|
|
|
|
|
|
|
|
|
|
14
|
|
See Notes to Financial Statements.
|
Eaton Vance
Tax-Advantaged Global Dividend Income Fund
April 30, 2021
Statement of Cash Flows (Unaudited)
|
|
|
|
|
|
|
Cash Flows From Operating Activities
|
|
Six Months Ended
April 30, 2021
|
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
453,886,540
|
|
|
|
|
|
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
Investments purchased
|
|
|
(1,397,908,070
|
)
|
|
|
|
|
Investments sold
|
|
|
1,398,812,735
|
|
|
|
|
|
Decrease in short-term investments, net
|
|
|
5,800,287
|
|
|
|
|
|
Net amortization/accretion of premium (discount)
|
|
|
199,941
|
|
|
|
|
|
Increase in dividends and interest receivable
|
|
|
(3,542,986
|
)
|
|
|
|
|
Increase in dividends receivable from affiliated investments
|
|
|
(145,000
|
)
|
|
|
|
|
Decrease in receivable for open forward foreign currency exchange contracts
|
|
|
15,568
|
|
|
|
|
|
Increase in tax reclaims receivable
|
|
|
(676,013
|
)
|
|
|
|
|
Increase in payable for variation margin on open financial futures contracts
|
|
|
1,356,152
|
|
|
|
|
|
Increase in payable to affiliate for investment adviser fee
|
|
|
173,547
|
|
|
|
|
|
Increase in payable to affiliate for Trustees’ fees
|
|
|
729
|
|
|
|
|
|
Increase in accrued expenses
|
|
|
193,179
|
|
|
|
|
|
Net change in unrealized (appreciation) depreciation from investments
|
|
|
(248,241,065
|
)
|
|
|
|
|
Net realized gain from investments
|
|
|
(163,655,874
|
)
|
|
|
|
|
Net cash provided by operating activities
|
|
$
|
46,269,670
|
|
|
|
|
|
Cash Flows From Financing Activities
|
|
|
|
|
|
|
|
|
Cash distributions paid
|
|
$
|
(46,924,632
|
)
|
|
|
|
|
Decrease in due to custodian — foreign currency
|
|
|
(1,249,343
|
)
|
|
|
|
|
Net cash used in financing activities
|
|
$
|
(48,173,975
|
)
|
|
|
|
|
Net decrease in cash
|
|
$
|
(1,904,305
|
)
|
|
|
|
|
Cash at beginning of period
|
|
$
|
1,914,385
|
|
|
|
|
|
Cash at end of period
|
|
$
|
10,080
|
|
|
|
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
Cash paid for interest and fees on borrowings
|
|
$
|
1,181,417
|
|
|
|
|
|
|
|
|
|
|
15
|
|
See Notes to Financial Statements.
|
Eaton Vance
Tax-Advantaged Global Dividend Income Fund
April 30, 2021
Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
April 30, 2021
(Unaudited)
|
|
|
Year Ended October 31,
|
|
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Net asset value — Beginning of period
|
|
$
|
16.160
|
|
|
$
|
17.490
|
|
|
$
|
16.730
|
|
|
$
|
18.230
|
|
|
$
|
15.800
|
|
|
$
|
17.540
|
|
|
|
|
Income (Loss) From Operations
|
|
|
|
|
|
|
|
|
|
|
Net investment income(1)
|
|
$
|
0.510
|
|
|
$
|
1.042
|
|
|
$
|
1.218
|
|
|
$
|
0.546
|
|
|
$
|
1.259
|
|
|
$
|
1.278
|
(2)
|
|
|
|
|
|
|
|
|
|
Net realized and unrealized gain (loss)
|
|
|
5.445
|
|
|
|
(1.142
|
)
|
|
|
0.772
|
|
|
|
(0.816
|
)
|
|
|
2.401
|
|
|
|
(1.788
|
)
|
|
|
|
|
|
|
|
|
|
Total income (loss) from operations
|
|
$
|
5.955
|
|
|
$
|
(0.100
|
)
|
|
$
|
1.990
|
|
|
$
|
(0.270
|
)
|
|
$
|
3.660
|
|
|
$
|
(0.510
|
)
|
|
|
|
|
|
|
|
|
|
Less Distributions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
$
|
(0.615
|
)*
|
|
$
|
(1.230
|
)
|
|
$
|
(1.166
|
)
|
|
$
|
(0.560
|
)
|
|
$
|
(1.230
|
)
|
|
$
|
(1.230
|
)
|
|
|
|
|
|
|
|
|
|
From net realized gain
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.064
|
)
|
|
|
(0.670
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Total distributions
|
|
$
|
(0.615
|
)
|
|
$
|
(1.230
|
)
|
|
$
|
(1.230
|
)
|
|
$
|
(1.230
|
)
|
|
$
|
(1.230
|
)
|
|
$
|
(1.230
|
)
|
|
|
|
|
|
|
|
|
|
Net asset value — End of period
|
|
$
|
21.500
|
|
|
$
|
16.160
|
|
|
$
|
17.490
|
|
|
$
|
16.730
|
|
|
$
|
18.230
|
|
|
$
|
15.800
|
|
|
|
|
|
|
|
|
|
|
Market value — End of period
|
|
$
|
20.090
|
|
|
$
|
14.290
|
|
|
$
|
16.770
|
|
|
$
|
15.540
|
|
|
$
|
17.190
|
|
|
$
|
14.340
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Net Asset Value(3)
|
|
|
37.52
|
%(4)
|
|
|
0.16
|
%
|
|
|
13.06
|
%
|
|
|
(1.38
|
)%
|
|
|
24.42
|
%
|
|
|
(2.09
|
)%
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Market Value(3)
|
|
|
45.31
|
%(4)
|
|
|
(7.63
|
)%
|
|
|
16.70
|
%
|
|
|
(2.91
|
)%
|
|
|
29.34
|
%
|
|
|
(5.77
|
)%
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000’s omitted)
|
|
$
|
1,640,118
|
|
|
$
|
1,233,156
|
|
|
$
|
1,334,205
|
|
|
$
|
1,276,190
|
|
|
$
|
1,390,617
|
|
|
$
|
1,205,668
|
|
|
|
|
|
|
|
|
|
|
Ratios (as a percentage of average daily net assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding interest and fees
|
|
|
1.14
|
%(5)
|
|
|
1.21
|
%
|
|
|
1.22
|
%
|
|
|
1.18
|
%
|
|
|
1.21
|
%
|
|
|
1.24
|
%
|
|
|
|
|
|
|
|
|
|
Interest and fee expense
|
|
|
0.16
|
%(5)
|
|
|
0.50
|
%
|
|
|
1.01
|
%
|
|
|
0.76
|
%
|
|
|
0.57
|
%
|
|
|
0.37
|
%
|
|
|
|
|
|
|
|
|
|
Total expenses
|
|
|
1.30
|
%(5)
|
|
|
1.71
|
%
|
|
|
2.23
|
%
|
|
|
1.94
|
%
|
|
|
1.78
|
%
|
|
|
1.61
|
%
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
5.18
|
%(5)
|
|
|
6.26
|
%
|
|
|
7.25
|
%
|
|
|
2.98
|
%
|
|
|
7.35
|
%
|
|
|
7.84
|
%(2)
|
|
|
|
|
|
|
|
|
|
Portfolio Turnover
|
|
|
76
|
%(4)
|
|
|
224
|
%
|
|
|
175
|
%
|
|
|
110
|
%
|
|
|
197
|
%
|
|
|
200
|
%
|
|
|
|
|
|
|
|
|
|
Senior Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total amount outstanding (in 000’s)
|
|
$
|
370,000
|
|
|
$
|
370,000
|
|
|
$
|
425,000
|
|
|
$
|
425,000
|
|
|
$
|
425,000
|
|
|
$
|
425,000
|
|
|
|
|
|
|
|
|
|
|
Asset coverage per
$1,000(6)
|
|
$
|
5,433
|
|
|
$
|
4,333
|
|
|
$
|
4,139
|
|
|
$
|
4,003
|
|
|
$
|
4,272
|
|
|
$
|
3,837
|
|
|
(1)
|
Computed using average shares outstanding.
|
|
(2)
|
Net investment income per share includes special dividends which amounted to $0.195 per share for the year ended October 31, 2016. Excluding special
dividends, the ratio of net investment income to average daily net assets would have been 6.64% for the year ended October 31, 2016.
|
|
(3)
|
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.
|
|
(6)
|
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.
|
|
*
|
A portion of the distributions may be deemed from net realized gain or a tax return of capital at year-end.
|
|
|
|
|
|
|
|
|
|
16
|
|
See Notes to Financial Statements.
|
Eaton Vance
Tax-Advantaged Global Dividend Income Fund
April 30, 2021
Notes to Financial Statements (Unaudited)
1 Significant Accounting Policies
Eaton Vance Tax-Advantaged Global Dividend 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 investment objective is to provide a high level
of after-tax total return consisting primarily of tax-advantaged dividend income and capital appreciation. The Fund pursues its objective by investing primarily in dividend-paying common and preferred stocks.
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 (U.S. GAAP). The Fund is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946.
A Investment Valuation — The following methodologies are used to determine the
market value or fair value of investments.
Equity Securities. Equity securities 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 ask prices 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 ask 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 uses 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.
Debt Obligations. Debt obligations are generally valued on the basis of valuations provided by third party pricing services, as derived from such services’ pricing models. Inputs to the models may
include, but are not limited to, reported trades, executable bid and ask prices, broker/dealer quotations, prices or yields of securities with similar characteristics, interest rates, anticipated prepayments, benchmark curves or information
pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Short-term
debt obligations purchased with a remaining maturity of sixty days or less for which a valuation from a third party pricing service is not readily available may be valued at amortized cost, which approximates fair value.
Derivatives. Financial futures contracts are valued at the closing settlement price established by the board of trade or exchange on which they are traded,
with adjustments for fair valuation for certain foreign financial futures contracts as described below. Forward foreign currency exchange contracts are generally valued at the mean of the average bid and average ask prices that are reported by
currency dealers to a third party pricing service at the valuation time. Such third party pricing service valuations are supplied for specific settlement periods and the Fund’s forward foreign currency exchange contracts are valued at an
interpolated rate between the closest preceding and subsequent settlement period reported by the third party pricing service.
Foreign Securities,
Financial Futures Contracts and Currencies. Foreign securities, financial futures contracts 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 and certain exchange-traded foreign
financial futures contracts generally is determined as of the close of trading on the principal exchange on which such securities and contracts trade. Events occurring after the close of trading on foreign exchanges may result in adjustments to the
valuation of foreign securities and certain foreign financial futures contracts 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 and foreign
financial futures contracts that meet certain criteria, the Fund’s Trustees have approved the use of a fair value service that values such securities and foreign financial futures contracts 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 and foreign financial futures contracts.
Affiliated Fund. The Fund may invest in Eaton Vance Cash Reserves Fund, LLC (Cash Reserves Fund), an affiliated investment company managed by Eaton Vance Management (EVM). While Cash Reserves Fund is not a
registered money market mutual fund, it conducts all of its investment activities in accordance with the requirements of Rule 2a-7 under the 1940 Act. Investments in Cash Reserves Fund are valued at the closing net asset value per unit on the
valuation day. Cash Reserves Fund generally values its investment securities based on available market quotations provided by a third party pricing service.
Fair Valuation. 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 “fair value”, which is 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 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 statements, 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.
Eaton Vance
Tax-Advantaged Global Dividend Income Fund
April 30, 2021
Notes to Financial Statements (Unaudited) — continued
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, interest and capital gains have been provided for in accordance with the
Fund’s understanding of the applicable countries’ tax rules and rates. In consideration of recent decisions rendered by European courts, the Fund has filed additional tax reclaims for previously withheld taxes on dividends earned in
certain European Union countries. These filings are subject to various administrative and judicial proceedings within these countries. Due to the uncertainty as to the ultimate resolution of these proceedings, the likelihood of receipt of these
reclaims, and the potential timing of payment, no amounts are reflected in the financial statements for such outstanding reclaims. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of
discount. Distributions from investment companies are recorded as dividend income, capital gains or return of capital based on the nature of the distribution.
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 April 30, 2021, the Fund had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure.
The Fund files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.
E 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.
F Use of Estimates — The preparation of the financial statements in
conformity with U.S. GAAP 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.
G 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, upon request by the shareholder, 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.
H Financial Futures Contracts — Upon entering into a financial futures contract, the
Fund is required to deposit with the broker, either in cash or securities, an amount equal to a certain percentage of the contract amount (initial margin). Subsequent payments, known as variation margin, are made or received by the Fund each
business day, depending on the daily fluctuations in the value of the underlying security or index, and are recorded as unrealized gains or losses by the Fund. Gains (losses) are realized upon the expiration or closing of the financial futures
contracts. Should market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. Futures contracts have minimal counterparty risk as they are exchange traded and
the clearinghouse for the exchange is substituted as the counterparty, guaranteeing counterparty performance.
I Forward
Foreign Currency Exchange Contracts — The Fund may enter into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date.
The forward foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded as unrealized until such time as the contracts have been closed. Risks may arise upon entering
these contracts from the potential inability of counterparties to meet the terms of their contracts and from movements in the value of a foreign currency relative to the U.S. dollar.
J Interim Financial Statements — The interim financial statements relating to April 30, 2021 and for the six months then ended
have not been audited by an independent registered public accounting firm, but in the opinion of the Fund’s management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the
financial statements.
2 Distributions to Shareholders and Income Tax Information
Subject to its Managed Distribution Plan, the Fund intends to make monthly distributions from its net investment income, net capital gain (which is the excess of
net long-term capital gain over net short-term capital loss) and other sources. The Fund intends to distribute all or substantially all of its net realized capital gains. Distributions are recorded on the ex-dividend date. Distributions to
shareholders are determined in accordance with income tax
Eaton Vance
Tax-Advantaged Global Dividend Income Fund
April 30, 2021
Notes to Financial Statements (Unaudited) — continued
regulations, which may differ from U.S. GAAP. As required by U.S. GAAP, only distributions in excess of tax basis earnings and profits are 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 capital gains are considered to be from ordinary income. Distributions in any year may include
a return of capital component.
At October 31, 2020, the Fund, for federal income tax purposes, had deferred capital losses of $136,150,927 which
would reduce its taxable income arising from future net realized gains on investment transactions, if any, to the extent permitted by the Internal Revenue Code, and thus would reduce the amount of distributions to shareholders, which would otherwise
be necessary to relieve the Fund of any liability for federal income or excise tax. The deferred capital losses are treated as arising on the first day of the Fund’s next taxable year and retain the same short-term or long-term character as
when originally deferred. Of the deferred capital losses at October 31, 2020, $136,150,927 are short-term.
The cost and unrealized appreciation
(depreciation) of investments, including open derivative contracts, of the Fund at April 30, 2021, as determined on a federal income tax basis, were as follows:
|
|
|
|
|
|
|
|
|
|
Aggregate cost
|
|
$
|
1,683,122,740
|
|
|
|
|
|
Gross unrealized appreciation
|
|
$
|
341,509,299
|
|
|
|
|
|
Gross unrealized depreciation
|
|
|
(19,788,298
|
)
|
|
|
|
|
Net unrealized appreciation
|
|
$
|
321,721,001
|
|
3 Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by EVM as compensation for investment advisory services rendered to the Fund. On March 1, 2021, Morgan Stanley acquired
Eaton Vance Corp. (the “Transaction”) and EVM became an indirect, wholly-owned subsidiary of Morgan Stanley. In connection with the Transaction, the Fund entered into a new investment advisory agreement (the “New Agreement”) with
EVM, which took effect on March 1, 2021. The Fund’s prior fee reduction agreement was incorporated into the New Agreement. Pursuant to the New Agreement (and the Fund’s investment advisory agreement with EVM in effect prior to
March 1, 2021), the fee is computed at an annual rate of 0.850% of the Fund’s average daily gross assets up to and including $1.5 billion, 0.830% over $1.5 billion up to and including $3 billion, 0.810% over $3 billion up to and
including $5 billion and 0.790% on average daily gross assets over $5 billion, and is payable monthly. Gross assets as referred to herein represent net assets plus obligations attributable to investment leverage. For the six months ended
April 30, 2021, the Fund’s investment adviser fee amounted to $7,891,403, or 0.84% (annualized) of the Fund’s average daily gross assets.
Pursuant to an investment sub-advisory agreement, EVM has delegated the investment management of the Fund to Eaton Vance Advisers International Ltd. (EVAIL), an
affiliate of EVM and, effective March 1, 2021, an indirect wholly-owned subsidiary of Morgan Stanley. In connection with the Transaction, EVM entered into a new sub-advisory agreement with EVAIL, which took effect on March 1, 2021. EVM
pays EVAIL a portion of its investment adviser fee for sub-advisory services provided to the Fund. The Fund may invest its cash in Cash Reserves Fund. EVM does not currently receive a fee for advisory services provided to Cash Reserves Fund. EVM
also serves as administrator of the Fund, but receives no compensation.
Trustees and officers of the Fund who are members of EVM’s organization
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 six months ended April 30, 2021, 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 $1,398,429,936 and $1,391,681,699, respectively, for the six months ended April 30, 2021.
5 Common Shares of Beneficial Interest
The Fund may issue common shares pursuant to its dividend reinvestment plan. There were no common shares issued by the Fund for the six months ended April 30,
2021 and the year ended October 31, 2020.
In November 2013, the Board of Trustees initially approved a share repurchase program for the Fund.
Pursuant to the reauthorization of the share repurchase program by the Board of Trustees in March 2019, the Fund is authorized to repurchase up to 10% of its common shares outstanding as of the last day of the prior calendar year at market prices
when shares are trading at a discount to net asset value. The share repurchase program does not obligate the Fund to purchase a specific amount of shares. There were no repurchases of common shares by the Fund for the six months ended
April 30, 2021 and the year ended October 31, 2020.
Eaton Vance
Tax-Advantaged Global Dividend Income Fund
April 30, 2021
Notes to Financial Statements (Unaudited) — continued
6 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 futures contracts and forward foreign currency exchange contracts 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 obligations under these financial instruments at April 30, 2021 is
included in the Portfolio of Investments. At April 30, 2021, the Fund had sufficient cash and/or securities to cover commitments under these contracts.
In the normal course of pursuing its investment objective, the Fund is subject to the following risks:
Equity Price
Risk: The Fund enters into equity futures contracts on securities indices to gain or limit exposure to certain markets, particularly in connection with engaging in the dividend capture trading strategy.
Foreign Exchange Risk: The Fund engages in forward foreign currency exchange contracts to seek to hedge against fluctuations in currency exchange rates.
The Fund enters into forward foreign currency exchange contracts that may contain provisions whereby the counterparty may terminate the contract under certain
conditions, including but not limited to a decline in the Fund’s net assets below a certain level over a certain period of time, which would trigger a payment by the Fund for those derivatives in a liability position. At April 30, 2021,
the Fund had no open derivatives with credit-related contingent features in a net liability position.
The over-the-counter (OTC) derivatives in which
the Fund invests are subject to the risk that the counterparty to the contract fails to perform its obligations under the contract. To mitigate this risk, the Fund has entered into an International Swaps and Derivatives Association, Inc. Master
Agreement (“ISDA Master Agreement”) or similar agreement with substantially all its derivative counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs certain OTC derivatives and
typically contains, among other things, set-off provisions in the event of a default and/or termination event as defined under the relevant ISDA Master Agreement. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with
the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in
the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy or insolvency.
Certain ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master
Agreements, which would cause the counterparty to accelerate payment by the Fund of any net liability owed to it.
The collateral requirements for
derivatives traded under an ISDA Master Agreement are governed by a Credit Support Annex to the ISDA Master Agreement. Collateral requirements are determined at the close of business each day and are typically based on changes in market values for
each transaction under an ISDA Master Agreement and netted into one amount for such agreement. Generally, the amount of collateral due from or to a counterparty is subject to a minimum transfer threshold amount before a transfer is required, which
may vary by counterparty. Collateral pledged for the benefit of the Fund and/or counterparty is held in segregated accounts by the Fund’s custodian and cannot be sold, re-pledged, assigned or otherwise used while pledged. The portion of such
collateral representing cash, if any, is reflected as deposits for derivatives collateral and, in the case of cash pledged by a counterparty for the benefit of the Fund, a corresponding liability on the Statement of Assets and Liabilities.
Securities pledged by the Fund as collateral, if any, are identified as such in the Portfolio of Investments.
The fair value of open derivative
instruments (not considered to be hedging instruments for accounting disclosure purposes) by risk exposure at April 30, 2021 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value
|
|
|
Risk
|
|
Derivative
|
|
Asset
Derivative
|
|
|
Liability
Derivative
|
|
|
|
|
|
|
|
Equity Price
|
|
Futures contracts
|
|
$
|
16,318,930
|
(1)
|
|
$
|
(7,257,453
|
)(1)
|
|
|
|
|
|
|
Foreign Exchange
|
|
Forward foreign currency exchange contracts
|
|
|
46,415
|
(2)
|
|
|
—
|
|
|
|
|
|
|
|
Total
|
|
|
|
$
|
16,365,345
|
|
|
$
|
(7,257,453
|
)
|
Eaton Vance
Tax-Advantaged Global Dividend Income Fund
April 30, 2021
Notes to Financial Statements (Unaudited) — continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value
|
|
|
|
|
|
|
Asset
Derivative
|
|
|
Liability
Derivative
|
|
|
|
|
|
|
|
Derivatives not subject to master netting or similar agreements
|
|
|
|
$
|
16,318,930
|
|
|
$
|
(7,257,453
|
)
|
|
|
|
|
|
|
Total Derivatives subject to master netting or similar agreements
|
|
|
|
$
|
46,415
|
|
|
$
|
—
|
|
|
(1)
|
Only the current day’s variation margin on open futures contracts is reported within the Statement of Assets and Liabilities as Receivable or Payable for
variation margin on open financial futures contracts, as applicable.
|
|
(2)
|
Statement of Assets and Liabilities location: Receivable for open forward foreign currency exchange contracts.
|
The Fund’s derivative assets and liabilities at fair value by risk, which are reported gross in the Statement of Assets and Liabilities, are presented in the
table above. The following table presents the Fund’s derivative assets by counterparty, net of amounts available for offset under a master netting agreement and net of the related collateral received by the Fund for such assets as of
April 30, 2021.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Counterparty
|
|
Derivative Assets
Subject to
Master Netting
Agreement
|
|
|
Derivatives
Available
for Offset
|
|
|
Non-cash
Collateral
Received(a)
|
|
|
Cash
Collateral
Received(a)
|
|
|
Net Amount
of Derivative
Assets(b)
|
|
|
|
|
|
|
|
|
|
State Street Bank and Trust Company
|
|
$
|
46,415
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
46,415
|
|
|
(a)
|
In some instances, the total collateral received and/or pledged may be more than the amount shown due to overcollateralization.
|
|
(b)
|
Net amount represents the net amount due from the counterparty in the event of default.
|
The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations by risk exposure
for the six months ended April 30, 2021 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk
|
|
Derivative
|
|
|
Realized Gain (Loss)
on Derivatives Recognized
in Income(1)
|
|
|
Change in Unrealized
Appreciation (Depreciation) on
Derivatives Recognized in
Income(2)
|
|
|
|
|
|
|
|
Equity Price
|
|
|
Futures contracts
|
|
|
$
|
(6,036,080
|
)
|
|
$
|
9,381,855
|
|
|
|
|
|
|
|
Foreign Exchange
|
|
|
Forward foreign currency exchange contracts
|
|
|
|
(31,673
|
)
|
|
|
(15,568
|
)
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
$
|
(6,067,753
|
)
|
|
$
|
9,366,287
|
|
|
(1)
|
Statement of Operations location: Net realized gain (loss) – Financial futures contracts and Forward foreign currency exchange contracts, respectively.
|
|
(2)
|
Statement of Operations location: Change in unrealized appreciation (depreciation) – Financial futures contracts and Forward foreign currency exchange
contracts, respectively.
|
The average notional cost of futures contracts and average notional amounts of other derivative contracts
outstanding during the six months ended April 30, 2021, which are indicative of the volume of these derivative types, were approximately as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Futures
Contracts — Long
|
|
|
Futures
Contracts — Short
|
|
|
Forward
Foreign Currency
Exchange Contracts*
|
|
|
|
|
|
|
|
$150,495,000
|
|
|
$
|
151,036,000
|
|
|
$
|
3,944,000
|
|
|
*
|
The average notional amount for forward foreign currency exchange contracts is based on the absolute value of notional amounts of currency purchased and
currency sold.
|
Eaton Vance
Tax-Advantaged Global Dividend Income Fund
April 30, 2021
Notes to Financial Statements (Unaudited) — continued
7 Liquidity Agreement
Effective August 28, 2020, the Fund entered into a Liquidity
Agreement (the Agreement) with State Street Bank and Trust Company (SSBT) that allows the Fund to borrow or otherwise access up to $435 million through securities lending transactions, direct loans from SSBT or a combination of both. The Fund has
granted to SSBT a security interest in all its cash, securities and other financial assets, unless otherwise pledged, to secure the payment and performance of its obligations under the Agreement. Pursuant to the terms of the Agreement, the Fund has
made its securities available for securities lending transactions by SSBT acting as securities lending agent for the Fund. Securities lending transactions are required to be secured with cash collateral received from the securities borrowers equal
at all times to at least 100%, 102% or 105% of the market value of the securities loaned, depending on the type of security. The market value of securities loaned is determined daily and any additional required collateral is delivered to SSBT on the
next business day. The Fund is subject to the possible delay in the recovery of loaned securities. Pursuant to the Agreement, SSBT has provided indemnification to the Fund in the event of default by a securities borrower with respect to security
loans. However, the Fund retains all risk of loss and gains associated with securities purchased using cash received as collateral for security loans. The Fund is entitled to receive from securities borrowers all substitute interest, dividends and
other distributions paid with respect to the securities on loan. The Fund may instruct SSBT to recall a security on loan at any time. At April 30, 2021, the value of the securities loaned and the value of the cash collateral received by SSBT,
which exceeded the value of the securities loaned, amounted to $297,891,973 and $307,114,573, respectively.
Interest on borrowings outstanding under the
Agreement is charged at a rate equal to 1-month LIBOR plus 0.50%, payable monthly. SSBT retains all net fees that may arise in connection with securities lending transactions. If the value of securities available to lend falls below a prescribed
level, the interest rate may be increased. If the Fund utilizes less than 50% of the commitment amount, it will be charged a monthly non-usage fee of 0.25% per annum on the unused portion of the commitment. The Agreement may be terminated by
either SSBT or the Fund upon 360 days’ prior written notice to the other party and after the second anniversary of the Agreement, by the Fund upon 90 days’ prior written notice to SSBT. If certain asset coverage and collateral requirements
or other covenants are not met, the Agreement could be deemed in default and result in termination. At April 30, 2021, the Fund had borrowings outstanding under the Agreement of $370 million at an annual interest rate of 0.61%, which are shown
as Liquidity Agreement borrowings on the Statement of Assets and Liabilities. The carrying amount of the borrowings at April 30, 2021 approximated its fair value. If measured at fair value, borrowings under the Agreement would have been
considered as Level 2 in the fair value hierarchy (see Note 9) at April 30, 2021. For the six months ended April 30, 2021, the aggregate average borrowings under the Agreement and the average annual interest rate (excluding fees) were
$370,000,000 and 0.64%, respectively.
8 Investments in Affiliated Issuers and Funds
The Fund invested in issuers that may be deemed to be affiliated with Morgan Stanley. At April 30, 2021, the value of the Fund’s investment in affiliated
issuers and funds was $12,802,841, which represents 0.8% of the Fund’s net assets. Transactions in affiliated issuers and funds by the Fund for the six months ended April 30, 2021 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
Value,
beginning
of period
|
|
|
Purchases
|
|
|
Sales
proceeds
|
|
|
Net
realized
gain (loss)
|
|
|
Change in
unrealized
appreciation
(depreciation)
|
|
|
Value, end
of period
|
|
|
Dividend
income
|
|
|
Shares/
Units, end
of period
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mitsubishi UFJ Financial Group, Inc.(1)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(4,329,522
|
)
|
|
$
|
806,951
|
|
|
$
|
(297,616
|
)
|
|
$
|
7,632,157
|
|
|
$
|
146,314
|
|
|
|
1,434,590
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eaton Vance Cash Reserves Fund, LLC
|
|
|
10,970,971
|
|
|
|
328,774,313
|
|
|
|
(334,574,600
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
5,170,684
|
|
|
|
4,378
|
|
|
|
5,170,684
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
806,951
|
|
|
$
|
(297,616
|
)
|
|
$
|
12,802,841
|
|
|
$
|
150,692
|
|
|
|
|
|
|
(1)
|
May be deemed to be an affiliated issuer as of March 1, 2021 (see Note 3).
|
9 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.)
|
Eaton Vance
Tax-Advantaged Global Dividend Income Fund
April 30, 2021
Notes to Financial Statements (Unaudited) — continued
|
•
|
|
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 April 30, 2021, the hierarchy of inputs used in valuing the Fund’s investments and open derivative instruments, which are
carried at value, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Description
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3*
|
|
|
Total
|
|
|
|
|
|
|
|
|
Common Stocks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Communication Services
|
|
$
|
96,832,904
|
|
|
$
|
82,358,471
|
|
|
$
|
—
|
|
|
$
|
179,191,375
|
|
|
|
|
|
|
|
|
Consumer Discretionary
|
|
|
73,751,245
|
|
|
|
54,811,005
|
|
|
|
—
|
|
|
|
128,562,250
|
|
|
|
|
|
|
|
|
Consumer Staples
|
|
|
38,285,991
|
|
|
|
75,836,351
|
|
|
|
—
|
|
|
|
114,122,342
|
|
|
|
|
|
|
|
|
Energy
|
|
|
29,485,537
|
|
|
|
—
|
|
|
|
—
|
|
|
|
29,485,537
|
|
|
|
|
|
|
|
|
Financials
|
|
|
94,950,115
|
|
|
|
265,096,316
|
|
|
|
—
|
|
|
|
360,046,431
|
|
|
|
|
|
|
|
|
Health Care
|
|
|
71,229,343
|
|
|
|
109,433,283
|
|
|
|
—
|
|
|
|
180,662,626
|
|
|
|
|
|
|
|
|
Industrials
|
|
|
54,595,286
|
|
|
|
193,697,473
|
|
|
|
0
|
|
|
|
248,292,759
|
|
|
|
|
|
|
|
|
Information Technology
|
|
|
181,942,734
|
|
|
|
80,325,745
|
|
|
|
—
|
|
|
|
262,268,479
|
|
|
|
|
|
|
|
|
Materials
|
|
|
—
|
|
|
|
69,511,776
|
|
|
|
—
|
|
|
|
69,511,776
|
|
|
|
|
|
|
|
|
Real Estate
|
|
|
13,656,912
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13,656,912
|
|
|
|
|
|
|
|
|
Utilities
|
|
|
14,442,150
|
|
|
|
96,518,952
|
|
|
|
—
|
|
|
|
110,961,102
|
|
|
|
|
|
|
|
|
Total Common Stocks
|
|
$
|
669,172,217
|
|
|
$
|
1,027,589,372
|
**
|
|
$
|
0
|
|
|
$
|
1,696,761,589
|
|
|
|
|
|
|
|
|
Corporate Bonds
|
|
$
|
—
|
|
|
$
|
182,298,183
|
|
|
$
|
—
|
|
|
$
|
182,298,183
|
|
|
|
|
|
|
|
|
Exchange-Traded Funds
|
|
|
16,827,309
|
|
|
|
—
|
|
|
|
—
|
|
|
|
16,827,309
|
|
|
|
|
|
|
|
|
Preferred Stocks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Staples
|
|
|
—
|
|
|
|
8,241,758
|
|
|
|
—
|
|
|
|
8,241,758
|
|
|
|
|
|
|
|
|
Energy
|
|
|
12,635,346
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12,635,346
|
|
|
|
|
|
|
|
|
Financials
|
|
|
29,162,774
|
|
|
|
15,013,064
|
|
|
|
—
|
|
|
|
44,175,838
|
|
|
|
|
|
|
|
|
Real Estate
|
|
|
14,998,155
|
|
|
|
—
|
|
|
|
—
|
|
|
|
14,998,155
|
|
|
|
|
|
|
|
|
Utilities
|
|
|
12,782,893
|
|
|
|
1,844,094
|
|
|
|
—
|
|
|
|
14,626,987
|
|
|
|
|
|
|
|
|
Total Preferred Stocks
|
|
$
|
69,579,168
|
|
|
$
|
25,098,916
|
|
|
$
|
—
|
|
|
$
|
94,678,084
|
|
|
|
|
|
|
|
|
Short-Term Investments
|
|
$
|
—
|
|
|
$
|
5,170,684
|
|
|
$
|
—
|
|
|
$
|
5,170,684
|
|
|
|
|
|
|
|
|
Total Investments
|
|
$
|
755,578,694
|
|
|
$
|
1,240,157,155
|
|
|
$
|
0
|
|
|
$
|
1,995,735,849
|
|
|
|
|
|
|
|
|
Forward Foreign Currency Exchange Contracts
|
|
$
|
—
|
|
|
$
|
46,415
|
|
|
$
|
—
|
|
|
$
|
46,415
|
|
|
|
|
|
|
|
|
Futures Contracts
|
|
|
16,318,930
|
|
|
|
—
|
|
|
|
—
|
|
|
|
16,318,930
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
771,897,624
|
|
|
$
|
1,240,203,570
|
|
|
$
|
0
|
|
|
$
|
2,012,101,194
|
|
|
|
|
|
|
|
|
Liability Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Futures Contracts
|
|
$
|
(7,257,453
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(7,257,453
|
)
|
|
|
|
|
|
|
|
Total
|
|
$
|
(7,257,453
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(7,257,453
|
)
|
|
*
|
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.
|
Level 3 investments at the beginning and/or end of the period
in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the six months ended April 30, 2021 is not presented.
Eaton Vance
Tax-Advantaged Global Dividend Income Fund
April 30, 2021
Notes to Financial Statements (Unaudited) — continued
10 Risks and Uncertainties
Risks Associated with Foreign Investments
Foreign investments can be adversely affected by political, economic and market developments abroad, including the imposition of economic and other sanctions by the
United States or another country. There may be less publicly available information about foreign issuers because they may not be subject to reporting practices, requirements or regulations comparable to those to which United States companies are
subject. Foreign markets may be smaller, less liquid and more volatile than the major markets in the United States. Trading in foreign markets typically involves higher expense than trading in the United States. The Fund may have difficulties
enforcing its legal or contractual rights in a foreign country. Securities that trade or are denominated in currencies other than the U.S. dollar may be adversely affected by fluctuations in currency exchange rates.
Pandemic Risk
An outbreak of respiratory disease caused by
a novel coronavirus was first detected in China in late 2019 and subsequently spread internationally. This coronavirus has resulted in closing borders, enhanced health screenings, changes to healthcare service preparation and delivery, quarantines,
cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. Health crises caused by outbreaks, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and economic
risks and disrupt normal market conditions and operations. The impact of this outbreak has negatively affected the worldwide economy, the economies of individual countries, individual companies, and the market in general, and may continue to do so
in significant and unforeseen ways, as may other epidemics and pandemics that may arise in the future. Any such impact could adversely affect the Fund’s performance, or the performance of the securities in which the Fund invests.
Eaton Vance
Tax-Advantaged Global Dividend Income Fund
April 30, 2021
Joint Special Meeting of Shareholders
(Unaudited)
The Fund held a Joint Special Meeting of Shareholders (the “Special Meeting”) with certain other Eaton Vance closed-end funds on January 7, 2021. In order to solicit additional votes to achieve a
required quorum, the Special Meeting was adjourned several times, with the vote being taken on February 12, 2021 for the following purpose: approval of a new investment advisory agreement with EVM (“Proposal 1”) and approval
of a new investment sub-advisory agreement with EVAIL (“Proposal 2”). The shareholder meeting results are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Shares(1)
|
|
|
|
|
For
|
|
|
Against
|
|
|
Abstain(2)
|
|
|
Broker
Non-Votes(2)
|
|
|
|
|
|
|
|
|
Proposal 1
|
|
|
36,237,666
|
|
|
|
791,436
|
|
|
|
2,421,803
|
|
|
|
0
|
|
|
|
|
|
|
|
|
Proposal 2
|
|
|
36,109,836
|
|
|
|
822,267
|
|
|
|
2,518,804
|
|
|
|
0
|
|
|
(1)
|
Fractional shares were voted proportionately.
|
|
(2)
|
All shares that were voted and votes to abstain were counted towards establishing a quorum, as were broker non-votes. (Broker non-votes are shares for which a
broker returns a proxy but for which (i) the beneficial owner has not voted and (ii) the broker holding the shares does not have discretionary authority to vote on the particular matter.) Abstentions and broker non-votes had the effect of
a negative vote on Proposal 1 and Proposal 2. Broker non-votes were not expected with respect to Proposal 1 and Proposal 2 because brokers are required to receive instructions from the beneficial owners or persons entitled to vote in order to
submit proxies.
|
Eaton Vance
Tax-Advantaged Global Dividend Income Fund
April 30, 2021
Board of Trustees’ Contract Approval
Overview of the Contract Review Process
Even though the following description of the Board’s
(as defined below) consideration of investment advisory and, as applicable, sub-advisory agreements covers multiple funds, for purposes of this shareholder report, the description is only relevant as to Eaton Vance Tax-Advantaged Global Dividend
Income Fund (“ETG”).
At a meeting held on November 10, 2020 (the “November Meeting”), the Board of Trustees (each, a
“Board” and, collectively, the “Board”) of each closed-end Fund (each, a “Fund” and, collectively, the “Funds”(1)) managed by Eaton
Vance Management (“Eaton Vance”), including a majority of the Board members (the “Independent Trustees”) who are not “interested persons” (as defined in the Investment Company Act of 1940 (the “1940 Act”)) of
the Funds or Eaton Vance, voted to approve a new investment advisory agreement between each Fund and Eaton Vance (the “New Investment Advisory Agreements”) and, for certain Funds, a new investment sub-advisory agreement between Eaton Vance
and the applicable Sub-Adviser (the “New Investment Sub-Advisory Agreements”(2) and, together with the New Investment Advisory Agreements, the “New
Agreements”), each of which is intended to go into effect upon the completion of the Transaction (as defined below). The Board’s evaluative process is more fully described below. In voting its approval of the New Agreements at the November
Meeting, the Board relied on an order issued by the Securities and Exchange Commission in response to the impacts of the COVID-19 pandemic that provided temporary relief from the in-person meeting requirements under Section 15 of the 1940 Act.
In voting its approval of the New Agreements, the Board of each Fund relied upon the recommendation of its Contract Review Committee, which is a
committee comprised exclusively of Independent Trustees. Prior to and during meetings leading up to the November Meeting, the Contract Review Committee reviewed and discussed information furnished by Eaton Vance, the Sub-Advisers, and Morgan
Stanley, as requested by the Independent Trustees, that the Contract Review Committee considered reasonably necessary to evaluate the terms of the New Agreements and to form its recommendations. Such information included, among other things, the
terms and anticipated impacts of Morgan Stanley’s pending acquisition of Eaton Vance Corp. (the “Transaction”) on the Funds and their shareholders. In addition to considering information furnished specifically to evaluate the
impact of the Transaction on the Funds and their respective shareholders, the Board and its Contract Review Committee also considered information furnished for prior meetings of the Board and its committees, including, but not limited to,
information provided in connection with the annual contract review process for the Funds, which most recently culminated in April 2020 (the “2020 Annual Approval Process”).
The Board of each Fund, including the Independent Trustees, concluded that the applicable New Investment Advisory Agreement and, as applicable, New Investment Sub-Advisory Agreement, including the fees payable
thereunder, was fair and reasonable, and it voted to approve the New Investment Advisory Agreement and, as applicable, New Investment Sub-Advisory Agreement and to recommend that shareholders do so as well.
Shortly after the announcement of the Transaction, the Board, including all of the Independent Trustees, met with senior representatives from Eaton Vance and Morgan
Stanley at its meeting held on October 13, 2020 to discuss certain aspects of the Transaction and the expected impacts of the Transaction on the Funds and their shareholders. As part of the Board’s evaluation process, counsel to the
Independent Trustees, on behalf of the Contract Review Committee, requested additional information to assist the Independent Trustees in their evaluation of the New Agreements and the implications of the Transaction, as well as other contractual
arrangements that may be affected by the Transaction. The Contract Review Committee considered information furnished by Eaton Vance and Morgan Stanley, their respective affiliates, and, as applicable, the Sub-Advisers during meetings on
November 5, 2020 and November 10, 2020.
The Contract Review Committee again met with senior representatives of Eaton Vance, the Sub-Advisers,
and Morgan Stanley at its meeting on November 10, 2020, to further discuss the approval of the New Agreements. The representatives from Eaton Vance, the Sub-Advisers, and Morgan Stanley each made presentations to, and responded to questions
from, the Independent Trustees. The Contract Review Committee considered Eaton Vance’s, the Sub-Adviser’s and Morgan Stanley’s responses related to the Transaction and specifically to the Funds, as well as information received in
connection with the 2020 Annual Approval Process, with respect to its evaluation of the New Agreements. Among other information, the Board considered:
Information about the Transaction and its Terms
|
|
•
|
|
Information about the material terms and conditions, and expected impact, of the Transaction that relate to the Funds, including the expected impact on the
businesses conducted by Eaton Vance and the Sub-Advisers with respect to the Funds and, with respect to those Funds (including ETG) that have shares registered under the Securities Act of 1933, as amended, pursuant to shelf registration statements,
Eaton Vance Distributors, Inc. as the distributor of those shares;
|
|
|
•
|
|
Information about the advantages of the Transaction as they relate to the Funds and their shareholders;
|
|
|
•
|
|
A commitment that the Funds would not bear any expenses, directly or indirectly, in connection with the Transaction, including with respect to the solicitation
of shareholder approval of the New Agreements;
|
|
(1)
|
References to the Funds do not include Eaton Vance Floating-Rate Income Plus Fund.
|
|
(2)
|
With respect to certain of the Funds, Eaton Vance is currently a party to a sub-advisory agreement (collectively, the “Current Sub-Advisory
Agreements”) with Eaton Vance Advisers International Ltd. (“EVAIL”) or Parametric Portfolio Associates LLC, each an affiliate of Eaton Vance (together, the “Sub-Advisers”). ETG is sub-advised by EVAIL. Accordingly,
references to the “Sub-Advisers” or the “New Sub-Advisory Agreements” are not applicable to all Funds.
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Eaton Vance
Tax-Advantaged Global Dividend Income Fund
April 30, 2021
Board of Trustees’ Contract Approval — continued
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A commitment that, for a period of three years after the Closing, at least 75% of each Fund’s Board members must not be “interested persons” (as
defined in the 1940 Act) of the investment adviser (or predecessor investment adviser, if applicable) pursuant to Section 15(f)(1)(A) of the 1940 Act;
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A commitment that Morgan Stanley would use its reasonable best efforts to ensure that it did not impose any “unfair burden” (as that term is used in
section 15(f)(1)(B) of the 1940 Act) on the Funds as a result of the Transaction;
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Information with respect to the potential impact of the Transaction on personnel and/or other resources of Eaton Vance and its affiliates, including the
Sub-Advisers, as well as any expected changes to compensation, including any retention-based compensation intended to incentivize key personnel at Eaton Vance and its affiliates, including the Sub-Advisers;
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Information regarding any changes that are expected with respect to the Funds’ slate of officers as a result of the Transaction;
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Information about Morgan Stanley
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Information about Morgan Stanley’s overall business, including information about the advisory, brokerage and related businesses that Morgan Stanley
operates;
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Information about Morgan Stanley’s financial condition, including its access to capital and other resources required to support the investment advisory
businesses related to the Funds;
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Information on how the Funds are expected to fit within Morgan Stanley’s overall business strategy, and any changes that Morgan Stanley contemplates
implementing to the Funds in the short- or long-term following the closing of the Transaction (the “Closing”);
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Information regarding risk management functions at Morgan Stanley and its affiliates, including how existing risk management protocols and procedures may impact
the Funds and/or the businesses of Eaton Vance and its affiliates, including the Sub-Advisers, as they relate to the Funds;
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Information on the anticipated benefits of the Transaction to the Funds with respect to potential additional distribution capabilities and the ability to access
new markets and customer segments through Morgan Stanley’s distribution network, including, in particular, its institutional client base;
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Information regarding the financial condition and reputation of Morgan Stanley, its worldwide presence, experience as a fund sponsor and manager, commitment to
maintain a high level of cooperation with, and support to, the Funds, strong client service capabilities, and relationships in the asset management industry;
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Information about the New Agreements
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A representation that, after the Closing, all of the Funds will continue to be advised by Eaton Vance and their current Sub-Adviser, as applicable, and will
continue under the “Eaton Vance” brand;
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Information regarding the terms of the New Agreements, including certain changes as compared to the current investment advisory agreement between each Fund and
Eaton Vance (collectively, the “Current Advisory Agreements”) and, as applicable, the current investment sub-advisory agreement between Eaton Vance and a Sub-Adviser (together with the Current Advisory Agreements, the “Current
Agreements”);
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Information confirming that the fee rates payable under the New Agreements are not changed as compared to the Current Agreements;
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A representation that the New Agreements will not cause any diminution in the nature, extent and quality of services provided by Eaton Vance and the Sub-Advisers
to the Funds and their respective shareholders, including with respect to compliance and other non-advisory services;
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Information
about Fund Performance, Fees and Expenses
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A report from an independent data provider comparing the investment performance of each Fund (including, as relevant, total return data, income data, Sharpe
ratios and information ratios) to the investment performance of comparable funds and, as applicable, benchmark indices, over various time periods as of the 2020 Annual Approval Process, as well as performance information as of a more recent date;
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A report from an independent data provider comparing each Fund’s total expense ratio (and its components) to those of comparable funds as of the 2020 Annual
Approval Process, as well as fee and expense information as of a more recent date;
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In certain instances, data regarding investment performance relative to customized groups of peer funds and blended indices identified by Eaton Vance in
consultation with the Portfolio Management Committee of the Board as of the 2020 Annual Approval Process, as well as corresponding performance information as of a more recent date;
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Comparative information concerning the fees charged and services provided by Eaton Vance and the Sub-Adviser to each Fund in managing other accounts (which may
include other mutual funds, collective investment funds and institutional accounts) using investment strategies and techniques similar to those used in managing such Fund(s), if any;
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Profitability analyses of Eaton Vance and the Sub-Adviser with respect to each of the Funds as of the 2020 Annual Approval Process, as well as information
regarding the impact of the Transaction on profitability;
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Information about Portfolio Management and Trading
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Descriptions of the investment management services currently provided and expected to be provided to each Fund after the Closing, as well as each of the
Funds’ investment strategies and policies;
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The procedures and processes used to determine the fair value of Fund assets, when necessary, and actions taken to monitor and test the effectiveness of such
procedures and processes;
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Eaton Vance
Tax-Advantaged Global Dividend Income Fund
April 30, 2021
Board of Trustees’ Contract Approval — continued
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Information regarding any contemplated changes to the policies and practices of Eaton Vance and, as applicable, each Fund’s Sub-Adviser with respect to
trading, including their processes for seeking best execution of portfolio transactions;
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Information regarding the impact on trading and access to capital markets associated with the Funds’ post-Closing affiliations with Morgan Stanley and its
affiliates, including potential restrictions with respect to the Funds’ ability to execute portfolio transactions with Morgan Stanley and its affiliates;
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Information about Eaton Vance and the Sub-Advisers
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Information about the financial results and condition of Eaton Vance and the Sub-Advisers since the culmination of the 2020 Annual Approval Process and any
material changes in financial condition that are reasonably expected to occur before and after the Closing;
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Confirmation that there are no immediately contemplated post-Closing changes to the individual investment professionals whose responsibilities include portfolio
management and investment research for the Funds, and, for portfolio managers and certain other investment professionals, information relating to their responsibilities with respect to managing other mutual funds and investment accounts, as
applicable post-Closing;
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The Code of Ethics of Eaton Vance and its affiliates, including the Sub-Advisers, together with information relating to compliance with, and the administration
of, such codes;
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Policies and procedures relating to proxy voting and the handling of corporate actions and class actions;
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Information concerning the resources devoted to compliance efforts undertaken by Eaton Vance and its affiliates, including the Sub-Advisers, including
descriptions of their various compliance programs and their record of compliance;
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Information concerning the business continuity and disaster recovery plans of Eaton Vance and its affiliates, including the Sub-Advisers;
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A description of Eaton Vance’s oversight of the Sub-Advisers, including with respect to regulatory and compliance issues, investment management and other
matters;
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Other Relevant Information
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Information concerning the nature, cost and character of the administrative and other non-investment advisory services provided by Eaton Vance and its
affiliates;
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Information concerning oversight of the relationship with the custodian, subcustodians and fund accountants by Eaton Vance and/or administrator to each of the
Funds;
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Information concerning the benefits of the closed-end fund structure, as well as, where relevant, the closed-end fund’s market prices, trading volume data,
distribution rates and other relevant matters;
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Confirmation that Eaton Vance intends to continue to manage the Funds in a manner materially consistent with each Fund’s current investment objective(s) and
principal investment strategies;
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Information regarding Morgan Stanley’s commitment to maintaining competitive compensation arrangements to attract and retain highly qualified personnel;
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Confirmation that Eaton Vance and Morgan Stanley will continue to keep the Board apprised of developments as the Transaction progresses and prior to and, as
applicable, following the Closing;
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Confirmation that the current senior management team at Eaton Vance has indicated its strong support of the Transaction; and
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Information regarding the fact that Morgan Stanley and Eaton Vance Corp. will each derive benefits from the Transaction and that, as a result, they have a
financial interest in the matters that were being considered.
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As indicated above, the Board and its Contract Review Committee also
considered information received at its regularly scheduled meetings throughout the year, which included information from portfolio managers and other investment professionals of Eaton Vance and the Sub-Advisers regarding investment and performance
matters, and considered various investment and trading strategies used in pursuing the Funds’ investment objectives. The Board also received information regarding risk management techniques employed in connection with the management of the
Funds. The Board and its committees evaluated issues pertaining to industry and regulatory developments, compliance procedures, fund governance and other issues with respect to the Funds, and received reports and participated in presentations
provided by Eaton Vance and its affiliates, including the Sub-Advisers, with respect to such matters.
The Contract Review Committee was advised
throughout the evaluation process by Goodwin Procter LLP, independent legal counsel for the Independent Trustees. The members of the Contract Review Committee, with the advice of such counsel, exercised their own business judgment in determining the
material factors to be considered in evaluating the New Agreements and the weight to be given to each such factor. The conclusions reached with respect to the New Agreements were based on a comprehensive evaluation of all the information provided
and not any single factor. Moreover, each Independent Trustee may have placed varying emphasis on particular factors in reaching conclusions with respect to the New Agreements.
Nature, Extent and Quality of Services
In considering whether to approve the New Agreements, the Board evaluated the nature, extent and quality of services currently provided to each Fund by Eaton Vance and, as applicable, the Sub-Advisers under the
Current Agreements. In evaluating the nature, extent and quality of services to be provided by Eaton Vance and the Sub-Advisers under the New Agreements, the Board considered, among other information, the expected impact, if any, of the Transaction
on the operations, facilities, organization and personnel of Eaton Vance and the Sub-Advisers, and that Morgan Stanley and Eaton Vance have
Eaton Vance
Tax-Advantaged Global Dividend Income Fund
April 30, 2021
Board of Trustees’ Contract Approval — continued
advised the Board that, following the Closing, there is not expected to be any diminution in the nature, extent and quality of services provided by Eaton Vance and the Sub-Advisers, as applicable, to the Funds
and their shareholders, including compliance and other non-advisory services, and that there are not expected to be any changes in portfolio management personnel as a result of the Transaction.
The Board also considered the financial resources of Morgan Stanley and Eaton Vance and the importance of having a Fund manager with, or with access to, significant
organizational and financial resources. The Board considered the benefits to the Funds of being part of a larger combined organization with greater financial resources following the Closing, particularly during periods of market disruptions and
volatility. In this regard, the Board considered information provided by Morgan Stanley regarding its business and operating structure, scale of operation, leadership and reputation, distribution capabilities, and financial condition, as well as
information on how the Funds are expected to fit within Morgan Stanley’s overall business strategy and any changes that Morgan Stanley contemplates in the short- or long-term following the Closing. The Board also noted Morgan Stanley’s and
Eaton Vance’s commitment to keep the Board apprised of developments with respect to its long-term integration plans for Eaton Vance, the Sub-Advisers, and existing Morgan Stanley affiliates and their respective personnel.
The Board considered Eaton Vance’s and the Sub-Advisers’ management capabilities, investment processes and investment performance in light of the types of
investments held by each Fund, including the education, experience and number of investment professionals and other personnel who provide portfolio management, investment research, and similar services to each Fund. In particular, the Board
considered the abilities and experience of Eaton Vance’s and, as applicable, Sub-Advisers’ investment professionals in implementing each Fund’s investment strategies. The Board also took into account the resources dedicated to
portfolio management and other services, the compensation methods of Eaton Vance and other factors, including the reputation and resources of Eaton Vance to recruit and retain highly qualified research, advisory and supervisory investment
professionals. With respect to the recruitment and retention of key personnel, the Board noted information from Morgan Stanley and Eaton Vance regarding the benefits of joining Morgan Stanley. In addition, the Board considered the time and attention
devoted to the Funds by senior management, as well as the infrastructure, operational capabilities and support staff in place to assist in the portfolio management and operations of the Funds, including the provision of administrative services. With
respect to the foregoing, the Board also considered information from Eaton Vance and Morgan Stanley regarding the anticipated impact of the Transaction on such matters. The Board also considered the business-related and other risks to which Eaton
Vance or its affiliates may be subject in managing the Funds and in connection with the Transaction. The Board considered the deep experience of Eaton Vance and its affiliates with managing and operating funds organized as exchange-listed closed-end
funds, such as the Funds. In this regard, the Board considered, among other things, Eaton Vance’s and its affiliates’ experience with implementing leverage arrangements, monitoring and assessing trading price discounts and premiums and
adhering to the requirements of securities exchanges.
The Board considered the compliance programs of Eaton Vance and relevant affiliates thereof,
including the Sub-Advisers. The Board considered compliance and reporting matters regarding, among other things, personal trading by investment professionals, disclosure of portfolio holdings, late trading, frequent trading, portfolio valuation,
business continuity and the allocation of investment opportunities. The Board also considered the responses of Eaton Vance 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 also considered certain information relating to the compliance record of Morgan Stanley and its affiliates, including information requests in recent years from regulatory
authorities. With respect to the foregoing, including the compliance programs of Eaton Vance and the Sub-Advisers, the Board noted information regarding the impact of the Transaction, as well as Eaton Vance’s and Morgan Stanley’s
commitment to keep the Board apprised of developments with respect to its long-term integration plans for Eaton Vance, the Sub-Advisers and existing Morgan Stanley affiliates and their respective personnel.
The Board considered other administrative services provided and to be provided or overseen by Eaton Vance 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 fund complex offering exposure to a variety of asset classes and investment disciplines. The Board noted information that the
Transaction was not expected to have any material impact on such matters in the near-term.
In evaluating the nature, extent and quality of the services
to be provided under the New Agreements, the Board also considered investment performance information provided for each Fund in connection with the 2020 Annual Approval Process, as well as information provided as of a more recent date. In this
regard, the Board compared each Fund’s investment performance to that of comparable funds identified by an independent data provider (the peer group), as well as appropriate benchmark indices and, for certain Funds, a custom peer group of
similarly managed funds. The Board also considered, where applicable, Fund-specific performance explanations based on criteria established by the Board in connection with the 2020 Annual Approval Process and, where applicable, performance
explanations as of a more recent date. In addition to the foregoing information, it was also noted that the Board has received and discussed with management information throughout the year at periodic intervals comparing each Fund’s performance
against applicable benchmark indices and peer groups. In addition, the Board considered each Fund’s performance in light of overall financial market conditions. Where a Fund’s relative underperformance to its peers was significant during
one or more specified periods, the Board noted the explanations from Eaton Vance concerning the Fund’s relative performance versus the peer group.
After consideration of the foregoing factors, among others, and based on their review of the materials provided and the assurances received from, and
recommendations of, Eaton Vance and Morgan Stanley, the Board determined that the Transaction was not expected to adversely affect the nature, extent and quality of services provided to the Funds by Eaton Vance and its affiliates, including the
Sub-Advisers, and that the Transaction was not expected to have an adverse effect on the ability of Eaton Vance and its affiliates, including the Sub-Advisers, to provide those services. The Board concluded that the
Eaton Vance
Tax-Advantaged Global Dividend Income Fund
April 30, 2021
Board of Trustees’ Contract Approval — continued
nature, extent and quality of services expected to be provided by Eaton Vance and the Sub-Advisers, taken as a whole, are appropriate and expected to be consistent with the terms of the New Agreements.
Management Fees and Expenses
The Board considered contractual fee rates payable by each Fund for advisory and administrative services (referred to collectively as “management fees”)
in connection with the 2020 Annual Approval Process, as well as information provided as of a more recent date. As part of its review, the Board considered each Fund’s management fees and total expense ratio over various periods, as compared to
those of comparable funds, before and after giving effect to any undertaking to waive fees or reimburse expenses.
The Board also considered factors,
and, where applicable, certain Fund-specific factors, that had an impact on a Fund’s total expense ratio relative to comparable funds, as identified by Eaton Vance in response to inquiries from the Contract Review Committee. The Board
considered that the New Agreement does not change a Fund’s management fee rate or the computation method for calculating such fees, including any separately executed permanent contractual management fee reduction currently in place for the
Fund.
The Board also received and considered, where applicable, information about the services offered and the fee rates charged by Eaton Vance and the Sub-Advisers to other types of accounts with investment objectives and strategies that are substantially similar to and/or managed in a similar investment style as a Fund. In this regard, the Board received
information about the differences in the nature and scope of services Eaton Vance and the Sub-Advisers, as applicable, provide to the Funds as compared to other types of accounts and the material differences in compliance, reporting and other legal
burdens and risks to Eaton Vance and such Sub-Advisers as between each Fund and other types of accounts.
After considering the foregoing information,
and in light of the nature, extent and quality of the services expected to be provided by Eaton Vance and the Sub-Advisers, the Board concluded that the management fees charged for advisory and related services are reasonable with respect to its
approval of the New Agreements.
Profitability and “Fall-Out” Benefits
During the 2020 Annual Approval Process, the Board considered the level of profits realized by Eaton Vance and relevant affiliates thereof, including the
Sub-Advisers, in providing investment advisory and administrative services to the Funds and to all Eaton Vance funds as a group. The Board considered the level of profits realized without regard to marketing support or other payments by Eaton Vance
and its affiliates to third parties in respect of distribution or other services. In light of the foregoing factors and the nature, extent and quality of the services rendered, the profits realized by Eaton Vance and its affiliates, including the
Sub-Advisers, were not deemed to be excessive by the Board.
The Board noted that Morgan Stanley and Eaton Vance are expected to realize, over time, cost
savings from the Transaction based on eliminating duplicate corporate overhead expenses. The Board considered, however, information from Eaton Vance and Morgan Stanley that such cost savings are not expected to be realized immediately upon the
Closing and that, accordingly, there are currently no specific expected changes in the levels of profitability associated with the advisory and other services provided to the Funds that are contemplated as a result of the Transaction. The Board
noted that it will continue to receive information regarding profitability during its annual contract review processes, including the extent to which cost savings and/or other efficiencies result in changes to profitability levels.
The Board also considered direct or indirect fall-out benefits received by Eaton Vance and its affiliates, including the Sub-Advisers, in connection with their
respective relationships with the Funds, including the benefits of research services that may be available to Eaton Vance and its affiliates as a result of securities transactions effected for the Funds and other investment advisory clients. In
evaluating the fall-out benefits to be received by Eaton Vance and its affiliates under the New Agreements, the Board considered whether the Transaction would have an impact on the fall-out benefits currently realized by Eaton Vance and its
affiliates in connection with services provided pursuant to the Current Agreements.
The Board of each Fund considered that Morgan Stanley may derive
reputational and other benefits from its ability to use the names of Eaton Vance and its affiliates in connection with operating and marketing the Funds. The Board considered that the Transaction, if completed, would significantly increase Morgan
Stanley’s assets under management and expand Morgan Stanley’s investment capabilities.
Economies of Scale
The Board also considered the extent to which Eaton Vance and its affiliates, on the one hand, and the Funds, on the other hand, can expect to
realize benefits from economies of scale as the assets of the Funds increase. The Board acknowledged the difficulty in accurately measuring the benefits resulting from economies of scale, if any, with respect to the management of any specific Fund
or group of funds. As part of the 2020 Annual Approval Process, the Board reviewed data summarizing the increases and decreases in the assets of the Funds and of all Eaton Vance funds as a group over various time periods, and evaluated the extent to
which the total expense ratio of each Fund and the profitability of Eaton Vance and its affiliates may have been affected by such increases or decreases.
Eaton Vance
Tax-Advantaged Global Dividend Income Fund
April 30, 2021
Board of Trustees’ Contract Approval — continued
The Board noted that Morgan Stanley and Eaton Vance are expected to benefit from possible growth of the Funds resulting from enhanced distribution capabilities, including with respect to the Funds’ potential
access to Morgan Stanley’s institutional client base. Based upon the foregoing, the Board concluded that the Funds currently share in the benefits from economies of scale, if any, when they are realized by Eaton Vance, and that the Transaction
is not expected to impede a Fund from continuing to benefit from any future economies of scale realized by Eaton Vance. The Board also considered the fact that the Funds are not continuously offered in the same manner as an open-end fund and that,
notwithstanding that certain Funds (including ETG) are authorized to issue additional common shares through a shelf offering, the Funds’ assets may not increase materially in the foreseeable future.
Conclusion
Based on its
consideration of the foregoing, and such other information it deemed relevant, including the factors and conclusions described above, the Contract Review Committee recommended to the Board approval of the New Agreements. Based on the recommendation
of the Contract Review Committee, the Board, including a majority of the Independent Trustees, unanimously voted to approve the New Agreements for the Funds and recommended that shareholders approve the New Agreements.
Eaton Vance
Tax-Advantaged Global Dividend Income Fund
April 30, 2021