Statement of Assets and Liabilities (Unaudited)
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Assets
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April 30, 2020
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Unaffiliated investments, at value (identified cost, $1,944,964,938)
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$
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2,292,729,705
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Affiliated investment, at value (identified cost, $23,604,128)
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23,606,488
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Foreign currency, at value (identified cost, $17)
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17
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Dividends receivable
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2,475,881
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Dividends receivable from affiliated investment
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6,704
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Tax reclaims receivable
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2,622,539
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Total assets
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$
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2,321,441,334
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Liabilities
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Written options outstanding, at value (premiums received, $32,455,208)
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$
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50,767,047
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Payable to affiliates:
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Investment adviser fee
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1,765,971
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Trustees’ fees
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9,042
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Accrued expenses
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876,764
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Total liabilities
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$
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53,418,824
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Net Assets
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$
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2,268,022,510
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Sources of Net Assets
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Common shares, $0.01 par value, unlimited number of shares authorized, 302,863,454 shares issued and outstanding
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$
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3,028,635
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Additional paid-in capital
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2,207,199,715
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Distributable earnings
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57,794,160
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Net Assets
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$
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2,268,022,510
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Net Asset Value
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($2,268,022,510 ÷ 302,863,454 common shares issued and outstanding)
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$
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7.49
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10
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See Notes to Financial Statements.
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Eaton Vance
Tax-Managed Global Diversified Equity Income Fund
April 30, 2020
Statement of Operations (Unaudited)
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Investment Income
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Six Months Ended
April 30, 2020
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Dividends (net of foreign taxes, $1,052,697)
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$
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20,954,499
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Dividends from affiliated investment
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66,011
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Securities lending income, net
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22,087
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Total investment income
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$
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21,042,597
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Expenses
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Investment adviser fee
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$
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12,553,207
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Trustees’ fees and expenses
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54,250
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Custodian fee
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332,907
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Transfer and dividend disbursing agent fees
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9,749
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Legal and accounting services
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70,877
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Printing and postage
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440,360
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Miscellaneous
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183,918
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Total expenses
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$
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13,645,268
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Net investment income
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$
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7,397,329
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Realized and Unrealized Gain (Loss)
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Net realized gain (loss) —
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Investment transactions
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$
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(34,010,915
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)
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Investment transactions — affiliated investment
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(8,633
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)
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Written options
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(36,207,454
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)
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Foreign currency transactions
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(40,027
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)
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Net realized loss
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$
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(70,267,029
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)
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Change in unrealized appreciation (depreciation) —
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Investments
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$
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(179,756,304
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)
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Investments — affiliated investment
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2,360
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Written options
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(11,350,953
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)
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Foreign currency
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(4,035
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)
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Net change in unrealized appreciation (depreciation)
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$
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(191,108,932
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)
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Net realized and unrealized loss
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$
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(261,375,961
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)
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Net decrease in net assets from operations
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$
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(253,978,632
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)
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11
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See Notes to Financial Statements.
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Eaton Vance
Tax-Managed Global Diversified Equity Income Fund
April 30, 2020
Statements of Changes in Net Assets
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Increase (Decrease) in Net Assets
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Six Months Ended
April 30, 2020
(Unaudited)
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Year Ended
October 31, 2019
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From operations —
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Net investment income
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$
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7,397,329
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$
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30,091,672
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Net realized loss
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(70,267,029
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)
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(30,384,013
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)
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Net change in unrealized appreciation (depreciation)
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(191,108,932
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)
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301,484,998
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Net increase (decrease) in net assets from operations
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$
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(253,978,632
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)
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$
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301,192,657
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Distributions to shareholders
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$
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(111,938,333
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)*
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$
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(29,888,972
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)
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Tax return of capital to shareholders
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$
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—
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$
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(202,697,496
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)
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Capital share transactions —
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Reinvestment of distributions
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$
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—
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$
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1,416,432
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Net increase in net assets from capital share transactions
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$
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—
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$
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1,416,432
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Net increase (decrease) in net assets
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$
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(365,916,965
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)
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$
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70,022,621
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Net Assets
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|
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At beginning of period
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$
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2,633,939,475
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$
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2,563,916,854
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At end of period
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$
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2,268,022,510
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$
|
2,633,939,475
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*
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A portion of the distributions may be deemed a tax return of capital at year-end. See Note 2.
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12
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See Notes to Financial Statements.
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Eaton Vance
Tax-Managed Global Diversified Equity Income Fund
April 30, 2020
Financial Highlights
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Six Months Ended
April 30, 2020
(Unaudited)
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Year Ended October 31,
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2019
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2018
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2017
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2016
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2015
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Net asset value — Beginning of period
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$
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8.700
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|
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$
|
8.470
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|
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$
|
9.400
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|
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$
|
8.930
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|
|
$
|
9.920
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|
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$
|
10.610
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Income (Loss) From Operations
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Net investment income(1)
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$
|
0.024
|
|
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$
|
0.099
|
|
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$
|
0.085
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|
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$
|
0.086
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$
|
0.198
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(2)
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$
|
0.127
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|
|
|
|
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Net realized and unrealized gain (loss)
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|
|
(0.864
|
)
|
|
|
0.899
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|
|
|
(0.103
|
)
|
|
|
1.317
|
|
|
|
(0.212
|
)
|
|
|
0.159
|
|
|
|
|
|
|
|
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Total income (loss) from operations
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|
$
|
(0.840
|
)
|
|
$
|
0.998
|
|
|
$
|
(0.018
|
)
|
|
$
|
1.403
|
|
|
$
|
(0.014
|
)
|
|
$
|
0.286
|
|
|
|
|
|
|
|
|
|
|
Less Distributions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
$
|
(0.370
|
)*
|
|
$
|
(0.099
|
)
|
|
$
|
(0.078
|
)
|
|
$
|
(0.086
|
)
|
|
$
|
(0.183
|
)
|
|
$
|
(0.123
|
)
|
|
|
|
|
|
|
|
|
|
Tax return of capital
|
|
|
—
|
|
|
|
(0.669
|
)
|
|
|
(0.834
|
)
|
|
|
(0.847
|
)
|
|
|
(0.793
|
)
|
|
|
(0.853
|
)
|
|
|
|
|
|
|
|
|
|
Total distributions
|
|
$
|
(0.370
|
)
|
|
$
|
(0.768
|
)
|
|
$
|
(0.912
|
)
|
|
$
|
(0.933
|
)
|
|
$
|
(0.976
|
)
|
|
$
|
(0.976
|
)
|
|
|
|
|
|
|
|
|
|
Net asset value — End of period
|
|
$
|
7.490
|
|
|
$
|
8.700
|
|
|
$
|
8.470
|
|
|
$
|
9.400
|
|
|
$
|
8.930
|
|
|
$
|
9.920
|
|
|
|
|
|
|
|
|
|
|
Market value — End of period
|
|
$
|
6.800
|
|
|
$
|
8.330
|
|
|
$
|
8.490
|
|
|
$
|
9.340
|
|
|
$
|
8.270
|
|
|
$
|
9.140
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Net Asset Value(3)
|
|
|
(9.73
|
)%(4)
|
|
|
12.85
|
%
|
|
|
(0.51
|
)%
|
|
|
16.88
|
%
|
|
|
0.70
|
%
|
|
|
3.49
|
%
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Market Value(3)
|
|
|
(14.40
|
)%(4)
|
|
|
7.79
|
%
|
|
|
0.36
|
%
|
|
|
25.41
|
%
|
|
|
1.22
|
%
|
|
|
1.88
|
%
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000’s omitted)
|
|
$
|
2,268,023
|
|
|
$
|
2,633,939
|
|
|
$
|
2,563,917
|
|
|
$
|
2,833,808
|
|
|
$
|
2,692,688
|
|
|
$
|
2,990,526
|
|
|
|
|
|
|
|
|
|
|
Ratios (as a percentage of average daily net assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses(5)
|
|
|
1.08
|
%(6)
|
|
|
1.07
|
%
|
|
|
1.07
|
%
|
|
|
1.07
|
%
|
|
|
1.08
|
%
|
|
|
1.07
|
%
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
0.58
|
%(6)
|
|
|
1.18
|
%
|
|
|
0.92
|
%
|
|
|
0.93
|
%
|
|
|
2.13
|
%(2)
|
|
|
1.23
|
%
|
|
|
|
|
|
|
|
|
|
Portfolio Turnover
|
|
|
24
|
%(4)
|
|
|
39
|
%
|
|
|
66
|
%
|
|
|
65
|
%
|
|
|
77
|
%
|
|
|
95
|
%
|
|
(1)
|
Computed using average shares outstanding.
|
|
(2)
|
Net investment income per share includes special dividends which amounted to $0.100 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 1.05% 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.
|
|
(5)
|
Excludes the effect of custody fee credits, if any, of less than 0.005%. Effective September 1, 2015, custody fee credits, which were earned on cash deposit
balances, were discontinued by the custodian.
|
|
*
|
A portion of the distributions may be deemed a tax return of capital at year-end. See Note 2.
|
|
|
|
|
|
|
|
|
|
13
|
|
See Notes to Financial Statements.
|
Eaton Vance
Tax-Managed Global Diversified Equity Income Fund
April 30, 2020
Notes to Financial Statements (Unaudited)
1 Significant Accounting Policies
Eaton Vance Tax-Managed Global Diversified Equity Income
Fund (the Fund) is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a diversified, closed-end management investment company. The Fund’s primary investment objective is to provide
current income and gains, with a secondary objective of capital appreciation.
The following is a summary of significant accounting policies of the Fund.
The policies are in conformity with accounting principles generally accepted in the United States of America (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.
Derivatives. U.S. exchange-traded options are valued at the mean between the bid and ask prices at valuation time as reported by the Options Price Reporting
Authority. Non U.S. exchange-traded options and over-the-counter options are valued by a third party pricing service using techniques that consider factors including the value of the underlying instrument, the volatility of the underlying instrument
and the period of time until option expiration.
Foreign Securities and Currencies. Foreign securities and currencies are valued in U.S. dollars,
based on foreign currency exchange rate quotations supplied by a third party pricing service. The pricing service uses a proprietary model to determine the exchange rate. Inputs to the model include reported trades and implied bid/ask spreads. The
daily valuation of exchange-traded foreign securities generally is determined as of the close of trading on the principal exchange on which such securities trade. Events occurring after the close of trading on foreign exchanges may result in
adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange. When valuing foreign equity securities that meet certain criteria, the Fund’s
Trustees have approved the use of a fair value service that values such securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that have a strong correlation
to the fair-valued securities.
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.
C Income — Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. However, if the
ex-dividend date has passed, certain dividends from foreign securities are recorded as the Fund is informed of the ex-dividend date. Withholding taxes on foreign dividends and capital gains have been provided for in accordance with the Fund’s
understanding of the applicable countries’ tax rules and rates. 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. 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, 2020, 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.
Eaton Vance
Tax-Managed Global Diversified Equity Income Fund
April 30, 2020
Notes to Financial Statements (Unaudited) — continued
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 Written Options — Upon the writing of a call or a put option, the premium received by the Fund is included in the Statement of
Assets and Liabilities as a liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written, in accordance with the Fund’s policies on investment valuations discussed above.
Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or are closed are added to or offset against the proceeds or amount paid on the transaction to determine
the realized gain or loss. When an index option is exercised, the Fund is required to deliver an amount of cash determined by the excess of the exercise price of the option over the value of the index (in the case of a put) or the excess of the
value of the index over the exercise price of the option (in the case of a call) at contract termination. If a put option on a security is exercised, the premium reduces the cost basis of the securities purchased by the Fund. The Fund, as a writer
of an option, may have no control over whether the underlying securities or other assets may be sold (call) or purchased (put) and, as a result, bears the market risk of an unfavorable change in the price of the securities or other assets underlying
the written option. The Fund may also bear the risk of not being able to enter into a closing transaction if a liquid secondary market does not exist.
I Interim Financial Statements — The interim financial statements relating to April 30, 2020 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 makes monthly distributions from its cash available for distribution, which consists of the Fund’s dividends
and interest income after payment of Fund expenses, net option premiums and net realized and unrealized gains on stock investments. The Fund intends to distribute all or substantially all of its net realized capital gains. Distributions are recorded
on the ex-dividend date. Distributions to shareholders are determined in accordance with income tax 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 substantial return of capital component. For the six months ended April 30, 2020, the amount of distributions estimated to be a tax return of capital was approximately
$103,200,000. The final determination of tax characteristics of the Fund’s distributions will occur at the end of the year, at which time it will be reported to the shareholders.
At October 31, 2019, the Fund, for federal income tax purposes, had deferred capital losses of $98,073,787 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, 2019,
$98,073,787 are short-term.
Eaton Vance
Tax-Managed Global Diversified Equity Income Fund
April 30, 2020
Notes to Financial Statements (Unaudited) — continued
The cost and unrealized appreciation (depreciation) of investments, including open derivative contracts, of the Fund at April 30, 2020, as determined on a federal income tax basis, were as follows:
|
|
|
|
|
|
|
|
|
|
Aggregate cost
|
|
$
|
1,939,471,141
|
|
|
|
|
|
Gross unrealized appreciation
|
|
$
|
506,404,894
|
|
|
|
|
|
Gross unrealized depreciation
|
|
|
(180,306,889
|
)
|
|
|
|
|
Net unrealized appreciation
|
|
$
|
326,098,005
|
|
3 Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by EVM as compensation for management and investment advisory services rendered to the Fund. Pursuant to the investment
advisory agreement and subsequent fee reduction agreement, the fee is computed at an annual rate of 1.00% of the Fund’s average daily gross assets up to and including $1.5 billion, 0.98% over $1.5 billion up to and including $3 billion, 0.96%
over $3 billion up to and including $5 billion and 0.94% 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, if any. The
fee reduction cannot be terminated without the consent of a majority of Trustees and a majority of shareholders. For the six months ended April 30, 2020, the Fund’s investment adviser fee amounted to $12,553,207 or 0.99% (annualized) of
the Fund’s average daily gross assets. Pursuant to a sub-advisory agreement, EVM pays Eaton Vance Advisers International Ltd. (EVAIL), an indirect, wholly-owned subsidiary of Eaton Vance Corp., a portion of its investment adviser fee for
sub-advisory services provided to the Fund. The Fund invests 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, 2020, 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 $603,835,683 and $742,357,528, respectively, for the six months ended
April 30, 2020.
5 Common Shares of Beneficial Interest and Shelf Offering
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,
2020. Common shares issued by the Fund pursuant to its dividend reinvestment plan for the year ended October 31, 2019 were 166,639.
In August 2012,
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, 2020 and the year ended October 31, 2019.
Pursuant to a
registration statement filed with and declared effective on May 9, 2019 by the SEC, the Fund is authorized to issue up to an additional 45,429,518 common shares through an equity shelf offering program (the “shelf offering”). Under
the shelf offering, the Fund, subject to market conditions, may raise additional capital from time to time and in varying amounts and offering methods at a net price at or above the Fund’s net asset value per common share. During the six months
ended April 30, 2020 and the year ended October 31, 2019, there were no common shares sold by the Fund pursuant to its shelf offering.
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 written options and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional
or contractual amounts of these instruments represent the investment the Fund has in particular classes of financial instruments and do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with
these instruments is meaningful only when all
Eaton Vance
Tax-Managed Global Diversified Equity Income Fund
April 30, 2020
Notes to Financial Statements (Unaudited) — continued
related and offsetting transactions are considered. A summary of obligations under these financial instruments at April 30, 2020 is included in the Portfolio of Investments. At April 30, 2020, the Fund
had sufficient cash and/or securities to cover commitments under these contracts.
The Fund is subject to equity price risk in the normal course of
pursuing its investment objectives. The Fund writes index call options above the current value of the index to generate premium income. In writing index call options, the Fund in effect, sells potential appreciation in the value of the applicable
index above the exercise price in exchange for the option premium received. The Fund retains the risk of loss, minus the premium received, should the value of the underlying index decline.
The fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) and whose primary underlying risk exposure is equity price risk at April 30, 2020 was
as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value
|
|
|
Derivative
|
|
Asset Derivative
|
|
|
Liability Derivative(1)
|
|
|
|
|
|
|
Written options
|
|
$
|
—
|
|
|
$
|
(50,767,047
|
)
|
|
(1)
|
Statement of Assets and Liabilities location: Written options outstanding, at value.
|
The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations and whose primary underlying risk exposure is equity price risk for
the six months ended April 30, 2020 was as follows:
|
|
|
|
|
|
|
|
|
|
|
Derivative
|
|
Realized Gain (Loss)
on Derivatives Recognized
in Income(1)
|
|
|
Change in Unrealized
Appreciation (Depreciation) on
Derivatives Recognized in
Income(2)
|
|
|
|
|
|
|
Written options
|
|
$
|
(36,207,454
|
)
|
|
$
|
(11,350,953
|
)
|
|
(1)
|
Statement of Operations location: Net realized gain (loss) – Written options.
|
|
(2)
|
Statement of Operations location: Change in unrealized appreciation (depreciation) – Written options.
|
The average number of written options contracts outstanding during the six months ended April 30, 2020, which is indicative of the volume of this derivative
type, was 11,189 contracts.
7 Securities Lending Agreement
The Fund has established a securities lending agreement with State Street Bank and Trust Company (SSBT) as securities lending agent in which the Fund lends portfolio securities to qualified borrowers in exchange
for collateral consisting of either cash or securities issued or guaranteed by the U.S. government or its agencies or instrumentalities in an amount at least equal to the market value of the securities on loan. The market value of securities loaned
is determined daily and any additional required collateral is delivered to the Fund on the next business day. Cash collateral is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market fund
registered under the 1940 Act. The Fund earns interest on the amount invested but it must pay (and at times receive from) the broker a loan rebate fee computed as a varying percentage of the collateral received. For security loans secured by
non-cash collateral, the Fund earns a negotiated lending fee from the borrower. A portion of the income earned by the Fund from its investment of cash collateral, net of rebate fees, and lending fees received is allocated to SSBT for its services as
lending agent and the portion allocated to the Fund is presented as securities lending income, net on the Statement of Operations. Non-cash collateral is held by the lending agent on behalf of the Fund and cannot be sold or re-pledged by the Fund;
accordingly, such collateral is not reflected in the Statement of Assets and Liabilities.
The Fund is subject to possible delay in the recovery of
loaned securities. Pursuant to the securities lending agreement, SSBT has provided indemnification to the Fund in the event of default by a borrower with respect to a loan. The Fund bears the risk of loss with respect to the investment of cash
collateral. At April 30, 2020, the Fund had no securities on loan.
Eaton Vance
Tax-Managed Global Diversified Equity Income Fund
April 30, 2020
Notes to Financial Statements (Unaudited) — continued
8 Investments in Affiliated Funds
At April 30, 2020, the value of the Fund’s
investment in affiliated funds was $23,606,488, which represents 1.0% of the Fund’s net assets. Transactions in affiliated funds by the Fund for the six months ended April 30, 2020 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name of affiliated fund
|
|
Value,
beginning of
period
|
|
|
Purchases
|
|
|
Sales proceeds
|
|
|
Net
realized
gain (loss)
|
|
|
Change in
unrealized
appreciation
(depreciation)
|
|
|
Value, end
of period
|
|
|
Dividend
income
|
|
|
Units, end
of period
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eaton Vance Cash Reserves Fund, LLC
|
|
$
|
2,252,007
|
|
|
$
|
289,734,978
|
|
|
$
|
(268,374,224
|
)
|
|
$
|
(8,633
|
)
|
|
$
|
2,360
|
|
|
$
|
23,606,488
|
|
|
$
|
66,011
|
|
|
|
23,606,488
|
|
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.)
|
|
•
|
|
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.
Eaton Vance
Tax-Managed Global Diversified Equity Income Fund
April 30, 2020
Notes to Financial Statements (Unaudited) — continued
At April 30, 2020, 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
|
|
$
|
182,358,874
|
|
|
$
|
65,880,884
|
|
|
$
|
—
|
|
|
$
|
248,239,758
|
|
|
|
|
|
|
|
|
Consumer Discretionary
|
|
|
164,486,370
|
|
|
|
120,673,304
|
|
|
|
—
|
|
|
|
285,159,674
|
|
|
|
|
|
|
|
|
Consumer Staples
|
|
|
55,628,294
|
|
|
|
101,782,622
|
|
|
|
—
|
|
|
|
157,410,916
|
|
|
|
|
|
|
|
|
Energy
|
|
|
114,404,237
|
|
|
|
—
|
|
|
|
—
|
|
|
|
114,404,237
|
|
|
|
|
|
|
|
|
Financials
|
|
|
185,979,663
|
|
|
|
90,574,660
|
|
|
|
—
|
|
|
|
276,554,323
|
|
|
|
|
|
|
|
|
Health Care
|
|
|
151,084,984
|
|
|
|
192,784,477
|
|
|
|
—
|
|
|
|
343,869,461
|
|
|
|
|
|
|
|
|
Industrials
|
|
|
58,245,321
|
|
|
|
172,071,847
|
|
|
|
—
|
|
|
|
230,317,168
|
|
|
|
|
|
|
|
|
Information Technology
|
|
|
271,181,932
|
|
|
|
182,187,058
|
|
|
|
—
|
|
|
|
453,368,990
|
|
|
|
|
|
|
|
|
Materials
|
|
|
—
|
|
|
|
86,701,735
|
|
|
|
—
|
|
|
|
86,701,735
|
|
|
|
|
|
|
|
|
Real Estate
|
|
|
41,235,444
|
|
|
|
—
|
|
|
|
—
|
|
|
|
41,235,444
|
|
|
|
|
|
|
|
|
Utilities
|
|
|
36,983,998
|
|
|
|
18,484,001
|
|
|
|
—
|
|
|
|
55,467,999
|
|
|
|
|
|
|
|
|
Total Common Stocks
|
|
$
|
1,261,589,117
|
|
|
$
|
1,031,140,588
|
*
|
|
$
|
—
|
|
|
$
|
2,292,729,705
|
|
|
|
|
|
|
|
|
Short-Term Investments
|
|
$
|
—
|
|
|
$
|
23,606,488
|
|
|
$
|
—
|
|
|
$
|
23,606,488
|
|
|
|
|
|
|
|
|
Total Investments
|
|
$
|
1,261,589,117
|
|
|
$
|
1,054,747,076
|
|
|
$
|
—
|
|
|
$
|
2,316,336,193
|
|
|
|
|
|
|
|
|
Liability Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Written Call Options
|
|
$
|
(36,965,165
|
)
|
|
$
|
(13,801,882
|
)
|
|
$
|
—
|
|
|
$
|
(50,767,047
|
)
|
|
|
|
|
|
|
|
Total
|
|
$
|
(36,965,165
|
)
|
|
$
|
(13,801,882
|
)
|
|
$
|
—
|
|
|
$
|
(50,767,047
|
)
|
|
*
|
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.
|
10 Risks and Uncertainties
Risks Associated with Foreign Investments
Investing in securities issued by companies whose principal business activities are outside the United States may involve significant risks not present in domestic
investments. For example, there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Certain foreign issuers are generally
not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in
investment or exchange control regulations, expropriation or confiscatory taxation, limitation on the removal of funds or other assets of the Fund, political or financial instability or diplomatic and other developments which could affect such
investments. Foreign securities markets, while growing in volume and sophistication, are generally not as developed as those in the United States, and securities of some foreign issuers (particularly those located in developing countries) may be
less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker/dealers and issuers than in the United States.
Pandemic Risk
An outbreak of respiratory disease caused by
a novel coronavirus that was first detected in China in December 2019 has spread rapidly 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. The impact of this outbreak has negatively affected the worldwide economy, as well as the economies of individual countries
and individual companies and can affect the market in general in significant and unforeseen ways. 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 near-term impact of this coronavirus has resulted in substantial market volatility, which may have an adverse effect on the Fund’s investments.
Eaton Vance
Tax-Managed Global Diversified Equity Income Fund
April 30, 2020
Board of Trustees’ Contract Approval
Overview of the Contract Review Process
The Investment Company Act of 1940, as amended (the
“1940 Act”), provides, in substance, that the investment advisory agreement between a fund and its investment adviser will continue in effect from year-to-year only if its continuation is approved on an annual basis by a vote of the
fund’s board of trustees, including a majority of the trustees who are not “interested persons” of the fund (“independent trustees”), cast in person at a meeting called for the purpose of considering such approval.
At a meeting held on April 22, 2020 (the “April 2020 Meeting”), the Boards of Trustees/Directors comprised of the same individuals
(collectively, the “Board”) that oversees a majority of the registered investment companies advised by Eaton Vance Management or its affiliate, Boston Management and Research (the “Eaton Vance Funds”), including a majority of the
independent trustees (the “Independent Trustees”), voted to approve the continuation of existing investment advisory agreements and sub-advisory agreements1 for
each of the Eaton Vance Funds for an additional one-year period. The Board relied upon the affirmative recommendation of its Contract Review Committee, which is a committee exclusively comprised of Independent Trustees. Prior to making its
recommendation, the Contract Review Committee reviewed information furnished by the adviser and sub-adviser to each of the Eaton Vance Funds (including information specifically requested by the Board) for a series of formal meetings held between
February and April 2020. Members of the Contract Review Committee also considered information received at prior meetings of the Board and its committees, to the extent such information was relevant to the Contract Review Committee’s annual
evaluation of the investment advisory agreements and sub-advisory agreements.
In connection with its evaluation of the investment advisory agreements
and sub-advisory agreements, the Board considered various information relating to the Eaton Vance Funds. This included information applicable to all or groups of Eaton Vance Funds, which is referenced immediately below, and information applicable to
the particular Eaton Vance Fund covered by this report (additional fund-specific information is referenced below under “Results of the Contract Review Process”). (For funds that invest through one or more underlying portfolios, references
to “each fund” in this section may include information that was considered at the portfolio-level.)
Information about Fees, Performance
and Expenses
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A report from an independent data provider comparing advisory and other fees paid by each fund to such fees paid by comparable funds, as identified by the
independent data provider (“comparable funds”);
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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;
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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;
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In certain instances, data regarding investment performance relative to customized groups of peer funds and blended indices identified by the adviser in
consultation with the Portfolio Management Committee of the Board;
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Comparative information concerning the fees charged and services provided by the adviser and 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 with respect to the adviser and sub-adviser to each of the funds;
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Information about Portfolio Management and Trading
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Descriptions of the investment management services provided to each fund, 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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Information about the policies and practices of each fund’s adviser and sub-adviser (in the context of a sub-adviser, only those with trading
responsibilities) with respect to trading, including their processes for seeking best execution of portfolio transactions;
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Information about the allocation of brokerage transactions and the benefits, if any, received by the adviser and sub-adviser (in the context of a sub-adviser,
only those with trading responsibilities) to each fund as a result of brokerage allocation, including, as applicable, information concerning the acquisition of research through client commission arrangements and policies with respect to “soft
dollars”;
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Data relating to the portfolio turnover rate of each fund;
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Information about each Adviser and Sub-adviser
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Reports detailing the financial results and condition of the adviser and sub-adviser to each fund;
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Information regarding 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;
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Not all Eaton Vance Funds have entered into a sub-advisory agreement with a sub-adviser. Accordingly, references to “sub-adviser” or
“sub-advisory agreement” in this “Overview” section may not be applicable to the particular Eaton Vance Fund covered by this report.
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Eaton Vance
Tax-Managed Global Diversified Equity Income Fund
April 30, 2020
Board of Trustees’ Contract Approval — continued
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The Code of Ethics of the adviser and its affiliates and the sub-adviser of each fund, 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 the adviser and its affiliates and the sub-adviser of each fund, if any,
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 the adviser and its affiliates and the sub-adviser of each fund, if any;
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A description of Eaton Vance Management’s and Boston Management and Research’s oversight of 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 Management and its
affiliates;
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Information concerning oversight of the relationship with the custodian, subcustodians and fund accountants by the adviser and/or administrator to each of the
funds;
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For an Eaton Vance Fund structured as an exchange-listed closed-end fund, 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; and
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The terms of each investment advisory agreement and sub-advisory agreement.
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During the various meetings of the Board and its committees throughout the twelve months ended April 2020, the Trustees received information from portfolio managers and other investment professionals of the
advisers and sub-advisers of the funds regarding investment and performance matters, and considered various investment and trading strategies used in pursuing the funds’ investment objectives. The Trustees 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 and participated in reports and presentations provided by Eaton Vance Management, Boston Management and Research and fund sub-advisers, with respect to such matters. In addition to the formal meetings of the Board
and its committees, the Independent Trustees held regular teleconferences to discuss, among other topics, matters relating to the continuation of investment advisory agreements and sub-advisory agreements.
The Contract Review Committee was advised throughout the contract review 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 each investment advisory agreement and sub-advisory agreement and the
weight to be given to each such factor. The conclusions reached with respect to each investment advisory agreement and sub-advisory agreement were based on a comprehensive evaluation of all the information provided and not any single factor.
Moreover, each member of the Contract Review Committee may have placed varying emphasis on particular factors in reaching conclusions with respect to each investment advisory agreement and sub-advisory agreement. In evaluating each investment
advisory agreement and sub-advisory agreement, including the fee structures and other terms contained in such agreements, the members of the Contract Review Committee were also informed by multiple years of analysis and discussion with the adviser
and sub-adviser to each of the Eaton Vance Funds.
In voting its approval of the continuation of existing investment advisory agreements and
sub-advisory agreements at the April 2020 Meeting, the Board relied on an order issued by the Securities and Exchange Commission on March 25, 2020, which provided temporary relief from the in-person voting requirements under Section 15 of
the 1940 Act in response to the impacts of the COVID-19 pandemic.
Results of the Contract Review Process
Based on its consideration of the foregoing, and such other information it deemed relevant, including the factors and conclusions described below, the Contract
Review Committee concluded that the continuation of the investment advisory agreement between Eaton Vance Tax-Managed Global Diversified Equity Income Fund (the “Fund”) and Eaton Vance Management (the “Adviser”) and the
sub-advisory agreement between the Adviser and Eaton Vance Advisers International Ltd. (the “Sub-adviser”), an affiliate of the Adviser, with respect to the Fund, including their respective fee structures, are in the interests of
shareholders and, therefore, recommended to the Board approval of each agreement. Based on the recommendation of the Contract Review Committee, the Board, including a majority of the Independent Trustees, voted to approve continuation of the
investment advisory agreement and the sub-advisory agreement for the Fund.
Nature, Extent and Quality of Services
In considering whether to approve the investment advisory agreement and the sub-advisory agreement for the Fund, the Board evaluated the nature, extent and quality
of services provided to the Fund by the Adviser and the Sub-adviser.
The Board considered the Adviser’s and the Sub-adviser’s management
capabilities and investment processes in light of the types of investments held by the Fund, including the education, experience and number of investment professionals and other personnel who provide portfolio management, investment
Eaton Vance
Tax-Managed Global Diversified Equity Income Fund
April 30, 2020
Board of Trustees’ Contract Approval — continued
research, and similar services to the Fund. Regarding the Adviser, the Board considered the Adviser’s responsibilities with respect to oversight of the Sub-adviser and coordinating activities in implementing
the investment strategies of the Fund. The Board also considered the Adviser’s in-house equity research capabilities and experience in managing funds that seek to maximize after-tax returns. With respect to the Sub-adviser, the Board considered
the abilities and experience of the Sub-adviser’s investment professionals in investing in equity securities, including investing in both U.S. and foreign common stocks. In particular, the Board considered the abilities and experience of the
Adviser’s and the Sub-adviser’s investment professionals in analyzing factors such as tax efficiency and special considerations relevant to investing in stocks and selling covered call options on various indexes. The Board considered the
international investment capabilities of the Sub-adviser, which is based in London, and the benefits to the Fund of having portfolio management services involving investments in international equities provided by investment professionals located
abroad. The Board also took into account the resources dedicated to portfolio management and other services, the compensation methods of the Adviser and other factors, including the reputation and resources of the Adviser to recruit and retain
highly qualified research, advisory and supervisory investment professionals. In addition, the Board considered the time and attention devoted to the Eaton Vance Funds, including the Fund, 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 Fund, including the provision of administrative services. The Board also considered the business-related and other risks to which the
Adviser or its affiliates may be subject in managing the Fund. The Board considered the deep experience of the Adviser and its affiliates with managing and operating funds organized as exchange-listed closed-end funds, such as the Fund. In this
regard, the Board considered, among other things, the Adviser’s and its affiliates’ experience monitoring and assessing trading price discounts and premiums and adhering to the requirements of securities exchanges.
The Board considered the compliance programs of the Adviser and relevant affiliates thereof, including the Sub-adviser. 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 the Adviser and its affiliates to requests in recent years from regulatory authorities, such as the Securities and Exchange Commission and the Financial Industry Regulatory Authority.
The Board considered other administrative services provided or overseen by Eaton Vance Management 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.
After consideration of the foregoing factors, among others, the Board concluded that the nature, extent and quality of services provided by the Adviser and the
Sub-adviser, taken as a whole, are appropriate and consistent with the terms of the investment advisory agreement and the sub-advisory agreement.
Fund Performance
The Board compared the 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 a custom peer group of similarly managed funds. The Board’s review included comparative performance data with respect to the Fund
for the one-, three-, five- and ten-year periods ended September 30, 2019. In this regard, the Board noted that the performance of the Fund was higher than the median performance of the Fund’s custom peer group and consistent with the
median performance of the Fund’s peer group for the three-year period. The Board also noted that the performance of the Fund was higher than its secondary benchmark index and lower than its primary benchmark index for the three-year period. The
Board concluded that the performance of the Fund was satisfactory.
Management Fees and Expenses
The Board considered contractual fee rates payable by the Fund for advisory and administrative services (referred to collectively as “management fees”).
As part of its review, the Board considered the Fund’s management fees and total expense ratio for the one-year period ended September 30, 2019, 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 that had an impact on the Fund’s total expense ratio relative to comparable funds.
After considering the foregoing information, and in light of the nature, extent and quality of the services provided by the Adviser and the Sub-adviser, the Board concluded that the management fees charged for
advisory and related services are reasonable.
Profitability and “Fall-Out” Benefits
The Board considered the level of profits realized by the Adviser and relevant affiliates thereof, including the Sub-adviser, in providing investment advisory and
administrative services to the Fund and to all Eaton Vance Funds as a group. The Board considered the level of profits realized without regard to marketing support or other payments by the Adviser and its affiliates to third parties in respect of
distribution and other services.
The Board concluded that, in light of the foregoing factors and the nature, extent and quality of the services
rendered, the profits realized by the Adviser and its affiliates, including the Sub-adviser, are deemed not to be excessive.
Eaton Vance
Tax-Managed Global Diversified Equity Income Fund
April 30, 2020
Board of Trustees’ Contract Approval — continued
The Board also considered direct or indirect fall-out benefits received by the Adviser and its affiliates, including the Sub-adviser, in connection with their respective relationships with the Fund, including the
benefits of research services that may be available to the Adviser or the Sub-adviser as a result of securities transactions effected for the Fund and other investment advisory clients.
Economies of Scale
In reviewing management fees and profitability, the Board also considered the
extent to which the Adviser and its affiliates, on the one hand, and the Fund, on the other hand, can expect to realize benefits from economies of scale as the assets of the Fund increase. The Board acknowledged the difficulty in accurately
measuring the benefits resulting from economies of scale, if any, with respect to the management of any specific fund or group of funds. The Board reviewed data summarizing the increases and decreases in the assets of the Fund and of all Eaton Vance
Funds as a group over various time periods, and evaluated the extent to which the total expense ratio of the Fund and the profitability of the Adviser and its affiliates may have been affected by such increases or decreases. Based upon the
foregoing, the Board concluded that the Fund currently shares in the benefits from economies of scale, if any, when they are realized by the Adviser. The Board also considered the fact that the Fund is not continuously offered in the same manner as
an open-end fund and that the Fund is authorized to issue additional common shares through a shelf offering. The Board also concluded that the structure of the advisory fee, which includes breakpoints at several asset levels, will allow the Fund to
continue to benefit from any economies of scale in the future.
Eaton Vance
Tax-Managed Global Diversified Equity Income Fund
April 30, 2020