UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
|
Investment Company Act File Number |
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811-21832 |
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|
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|
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|
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Eaton Vance Tax-Managed Diversified Equity Income Fund |
||
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(Exact Name of Registrant as Specified in Charter) |
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|
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|
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The
Eaton Vance Building, |
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02109 |
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(Address of Principal Executive Offices) |
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(Zip code) |
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|
|
|
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Maureen
A. Gemma |
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(Name and Address of Agent for Service) |
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Registrant’s Telephone Number, Including Area Code: |
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(617) 482-8260 |
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Date of Fiscal Year End: |
|
October 31 |
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|
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Date of Reporting Period: |
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July 31, 2008 |
Item 1. Schedule of Investments
|
Eaton Vance Tax-Managed Diversified Equity Income Fund |
|
as of July 31, 2008 |
PORTFOLIO OF INVESTMENTS (Unaudited)
Common Stocks — 98.1%
|
Security |
|
Shares |
|
Value |
|
|
|
Aerospace & Defense — 4.5% |
|
|
|
|
|
|
|
General Dynamics Corp. |
|
358,347 |
|
$ |
31,943,052 |
|
|
Lockheed Martin Corp. |
|
268,883 |
|
28,052,563 |
|
|
|
Raytheon Co. |
|
338,352 |
|
19,262,379 |
|
|
|
United Technologies Corp. |
|
528,838 |
|
33,835,055 |
|
|
|
|
|
|
|
$ |
113,093,049 |
|
|
Auto Components — 0.6% |
|
|
|
|
|
|
|
Johnson Controls, Inc. |
|
493,462 |
|
$ |
14,882,814 |
|
|
|
|
|
|
$ |
14,882,814 |
|
|
Automobiles — 0.4% |
|
|
|
|
|
|
|
DaimlerChrysler AG |
|
182,470 |
|
$ |
10,544,184 |
|
|
|
|
|
|
$ |
10,544,184 |
|
|
Beverages — 2.2% |
|
|
|
|
|
|
|
Coca-Cola Co. (The) |
|
413,846 |
|
$ |
21,313,069 |
|
|
PepsiCo, Inc. |
|
510,203 |
|
33,959,112 |
|
|
|
|
|
|
|
$ |
55,272,181 |
|
|
Biotechnology — 3.5% |
|
|
|
|
|
|
|
Amgen, Inc. (1) |
|
188,227 |
|
$ |
11,788,657 |
|
|
Genentech, Inc. (1) |
|
148,229 |
|
14,118,812 |
|
|
|
Genzyme Corp. (1) |
|
328,038 |
|
25,144,113 |
|
|
|
Gilead Sciences, Inc. (1) |
|
680,154 |
|
36,714,713 |
|
|
|
|
|
|
|
$ |
87,766,295 |
|
|
Capital Markets — 4.8% |
|
|
|
|
|
|
|
Bank of New York Mellon Corp. (The) |
|
338,700 |
|
$ |
12,023,850 |
|
|
Credit Suisse Group |
|
364,218 |
|
18,178,660 |
|
|
|
Goldman Sachs Group, Inc. |
|
129,775 |
|
23,883,791 |
|
|
|
Invesco, Ltd. |
|
503,212 |
|
11,719,807 |
|
|
|
Julius Baer Holding AG |
|
359,537 |
|
22,781,754 |
|
|
|
State Street Corp. |
|
158,934 |
|
11,386,032 |
|
|
|
T. Rowe Price Group, Inc. |
|
192,173 |
|
11,501,554 |
|
|
|
UBS AG (1) |
|
385,963 |
|
7,403,978 |
|
|
|
|
|
|
|
$ |
118,879,426 |
|
|
Chemicals — 1.6% |
|
|
|
|
|
|
|
E.I. Du Pont de Nemours & Co. |
|
523,676 |
|
$ |
22,942,246 |
|
|
Monsanto Co. |
|
145,729 |
|
17,357,781 |
|
|
|
|
|
|
|
$ |
40,300,027 |
|
|
Commercial Banks — 2.8% |
|
|
|
|
|
|
|
Banco Bradesco SA ADR |
|
386,903 |
|
$ |
8,213,940 |
|
|
Banco Itau Holding Financiera SA ADR |
|
778,125 |
|
16,574,062 |
|
|
|
Banco Santander Central Hispano SA |
|
579,447 |
|
11,282,946 |
|
|
|
HSBC Holdings PLC |
|
1,131,968 |
|
18,708,507 |
|
|
|
Toronto-Dominion Bank |
|
150,898 |
|
9,168,562 |
|
|
|
U.S. Bancorp |
|
158,952 |
|
4,865,521 |
|
|
|
|
|
|
|
$ |
68,813,538 |
|
|
Commercial Services & Supplies — 0.7% |
|
|
|
|
|
|
|
Waste Management, Inc. |
|
492,720 |
|
$ |
17,511,269 |
|
|
|
|
|
|
$ |
17,511,269 |
|
|
Communications Equipment — 3.2% |
|
|
|
|
|
|
|
Cisco Systems, Inc. (1) |
|
1,298,670 |
|
$ |
28,557,753 |
|
|
QUALCOMM, Inc. |
|
528,541 |
|
29,249,459 |
|
|
|
Research In Motion, Ltd. (1) |
|
187,674 |
|
23,050,121 |
|
|
|
|
|
|
|
$ |
80,857,333 |
|
1
|
Computer Peripherals — 4.1% |
|
|
|
|
|
|
|
Apple, Inc. (1) |
|
178,346 |
|
$ |
28,348,097 |
|
|
Hewlett-Packard Co. |
|
702,274 |
|
31,461,875 |
|
|
|
International Business Machines Corp. |
|
328,279 |
|
42,013,146 |
|
|
|
|
|
|
|
$ |
101,823,118 |
|
|
Diversified Financial Services — 2.4% |
|
|
|
|
|
|
|
Bank of America Corp. |
|
265,567 |
|
$ |
8,737,154 |
|
|
Citigroup, Inc. |
|
580,094 |
|
10,841,957 |
|
|
|
JPMorgan Chase & Co. |
|
987,068 |
|
40,104,573 |
|
|
|
|
|
|
|
$ |
59,683,684 |
|
|
Diversified Telecommunication Services — 2.4% |
|
|
|
|
|
|
|
AT&T, Inc. |
|
1,228,037 |
|
$ |
37,835,820 |
|
|
Verizon Communications, Inc. |
|
684,345 |
|
23,295,104 |
|
|
|
|
|
|
|
$ |
61,130,924 |
|
|
Electric Utilities — 3.3% |
|
|
|
|
|
|
|
E.ON AG |
|
186,091 |
|
$ |
35,472,555 |
|
|
Edison International |
|
479,015 |
|
23,155,585 |
|
|
|
FirstEnergy Corp. |
|
233,430 |
|
17,168,776 |
|
|
|
Iberdrola SA |
|
532,825 |
|
7,239,817 |
|
|
|
|
|
|
|
$ |
83,036,733 |
|
|
Electrical Equipment — 1.4% |
|
|
|
|
|
|
|
ABB, Ltd. (1) |
|
249,752 |
|
$ |
6,543,891 |
|
|
Emerson Electric Co. |
|
603,236 |
|
29,377,593 |
|
|
|
|
|
|
|
$ |
35,921,484 |
|
|
Energy Equipment & Services — 4.0% |
|
|
|
|
|
|
|
Diamond Offshore Drilling, Inc. |
|
202,921 |
|
$ |
24,208,475 |
|
|
Schlumberger, Ltd. |
|
425,780 |
|
43,259,248 |
|
|
|
Transocean, Inc. (1) |
|
229,644 |
|
31,238,473 |
|
|
|
|
|
|
|
$ |
98,706,196 |
|
|
Food & Staples Retailing — 2.4% |
|
|
|
|
|
|
|
CVS Caremark Corp. |
|
618,308 |
|
$ |
22,568,242 |
|
|
Wal-Mart Stores, Inc. |
|
623,406 |
|
36,544,060 |
|
|
|
|
|
|
|
$ |
59,112,302 |
|
|
Food Products — 2.7% |
|
|
|
|
|
|
|
Nestle SA |
|
852,290 |
|
$ |
37,364,268 |
|
|
Nestle SA ADR |
|
316,445 |
|
14,034,336 |
|
|
|
Unilever NV |
|
560,748 |
|
15,468,642 |
|
|
|
|
|
|
|
$ |
66,867,246 |
|
|
Health Care Equipment & Supplies — 3.3% |
|
|
|
|
|
|
|
Baxter International, Inc. |
|
154,501 |
|
$ |
10,600,314 |
|
|
Becton, Dickinson and Co. |
|
92,787 |
|
7,878,544 |
|
|
|
Boston Scientific Corp. (1) |
|
868,111 |
|
10,321,840 |
|
|
|
Covidien, Ltd. |
|
556,742 |
|
27,413,976 |
|
|
|
Medtronic, Inc. |
|
292,810 |
|
15,469,152 |
|
|
|
Zimmer Holdings, Inc. (1) |
|
144,307 |
|
9,944,195 |
|
|
|
|
|
|
|
$ |
81,628,021 |
|
|
Health Care Providers & Services — 0.3% |
|
|
|
|
|
|
|
Aetna, Inc. |
|
167,862 |
|
$ |
6,884,021 |
|
|
|
|
|
|
$ |
6,884,021 |
|
|
Hotels, Restaurants & Leisure — 1.4% |
|
|
|
|
|
|
|
Marriott International, Inc., Class A |
|
550,115 |
|
$ |
14,253,480 |
|
|
McDonald’s Corp. |
|
364,633 |
|
21,801,407 |
|
|
|
|
|
|
|
$ |
36,054,887 |
|
|
Household Products — 2.1% |
|
|
|
|
|
|
|
Colgate-Palmolive Co. |
|
288,554 |
|
$ |
21,430,906 |
|
|
Kimberly-Clark Corp. |
|
211,472 |
|
12,229,426 |
|
|
|
Procter & Gamble Co. |
|
280,633 |
|
18,375,849 |
|
|
|
|
|
|
|
$ |
52,036,181 |
|
2
|
Industrial Conglomerates — 2.8% |
|
|
|
|
|
|
|
General Electric Co. |
|
1,842,564 |
|
$ |
52,126,136 |
|
|
Siemens AG |
|
143,788 |
|
17,574,437 |
|
|
|
|
|
|
|
$ |
69,700,573 |
|
|
Insurance — 6.7% |
|
|
|
|
|
|
|
Allianz SE |
|
109,309 |
|
$ |
18,539,968 |
|
|
Berkshire Hathaway, Inc., Class A (1) |
|
457 |
|
52,303,650 |
|
|
|
Chubb Corp. |
|
306,683 |
|
14,733,051 |
|
|
|
Lincoln National Corp. |
|
322,089 |
|
15,363,645 |
|
|
|
MetLife, Inc. |
|
233,905 |
|
11,875,357 |
|
|
|
Travelers Companies, Inc. (The) |
|
565,335 |
|
24,942,580 |
|
|
|
Zurich Financial Services AG |
|
114,366 |
|
30,042,346 |
|
|
|
|
|
|
|
$ |
167,800,597 |
|
|
Internet Software & Services — 1.6% |
|
|
|
|
|
|
|
Google, Inc., Class A (1) |
|
82,173 |
|
$ |
38,929,459 |
|
|
|
|
|
|
$ |
38,929,459 |
|
|
IT Services — 1.4% |
|
|
|
|
|
|
|
MasterCard, Inc., Class A |
|
96,545 |
|
$ |
23,571,462 |
|
|
Visa, Inc., Class A (1) |
|
167,321 |
|
12,224,472 |
|
|
|
|
|
|
|
$ |
35,795,934 |
|
|
Life Sciences Tools & Services — 0.6% |
|
|
|
|
|
|
|
Thermo Fisher Scientific, Inc. (1) |
|
261,338 |
|
$ |
15,816,176 |
|
|
|
|
|
|
$ |
15,816,176 |
|
|
Machinery — 1.4% |
|
|
|
|
|
|
|
Danaher Corp. |
|
320,204 |
|
$ |
25,504,249 |
|
|
Illinois Tool Works, Inc. |
|
228,347 |
|
10,698,057 |
|
|
|
|
|
|
|
$ |
36,202,306 |
|
|
Media — 2.5% |
|
|
|
|
|
|
|
Comcast Corp., Class A |
|
1,392,034 |
|
$ |
28,703,741 |
|
|
Omnicom Group, Inc. |
|
287,998 |
|
12,294,635 |
|
|
|
Time Warner, Inc. |
|
870,679 |
|
12,468,123 |
|
|
|
Vivendi SA |
|
235,669 |
|
9,855,978 |
|
|
|
|
|
|
|
$ |
63,322,477 |
|
|
Metals & Mining — 2.1% |
|
|
|
|
|
|
|
Anglo American PLC |
|
175,910 |
|
$ |
10,049,832 |
|
|
Arcelor Mittal |
|
82,426 |
|
7,292,556 |
|
|
|
Cleveland-Cliffs, Inc. |
|
67,972 |
|
7,368,844 |
|
|
|
Companhia Vale do Rio Doce ADR |
|
666,341 |
|
20,010,220 |
|
|
|
Rio Tinto PLC |
|
76,549 |
|
8,005,472 |
|
|
|
|
|
|
|
$ |
52,726,924 |
|
|
Multiline Retail — 0.3% |
|
|
|
|
|
|
|
JC Penney Co., Inc. |
|
216,246 |
|
$ |
6,666,864 |
|
|
|
|
|
|
$ |
6,666,864 |
|
|
Multi-Utilities — 1.3% |
|
|
|
|
|
|
|
Public Service Enterprise Group, Inc. |
|
591,494 |
|
$ |
24,724,449 |
|
|
RWE AG |
|
64,176 |
|
7,681,282 |
|
|
|
|
|
|
|
$ |
32,405,731 |
|
|
Oil, Gas & Consumable Fuels — 8.9% |
|
|
|
|
|
|
|
Anadarko Petroleum Corp. |
|
669,648 |
|
$ |
38,779,316 |
|
|
ConocoPhillips |
|
433,745 |
|
35,402,267 |
|
|
|
Exxon Mobil Corp. |
|
627,081 |
|
50,436,125 |
|
|
|
Hess Corp. |
|
448,964 |
|
45,524,950 |
|
|
|
Occidental Petroleum Corp. |
|
408,404 |
|
32,194,487 |
|
|
|
Williams Cos., Inc. |
|
344,076 |
|
11,027,636 |
|
|
|
XTO Energy, Inc. |
|
167,238 |
|
7,898,651 |
|
|
|
|
|
|
|
$ |
221,263,432 |
|
3
|
Pharmaceuticals — 5.0% |
|
|
|
|
|
|
|
Abbott Laboratories |
|
505,535 |
|
$ |
28,481,842 |
|
|
Johnson & Johnson |
|
418,993 |
|
28,688,451 |
|
|
|
Merck & Co., Inc. |
|
663,126 |
|
21,816,845 |
|
|
|
Novartis AG |
|
145,458 |
|
8,630,268 |
|
|
|
Roche Holding AG |
|
70,878 |
|
13,088,051 |
|
|
|
Sanofi-Aventis SA |
|
89,139 |
|
6,258,602 |
|
|
|
Schering-Plough Corp. |
|
324,795 |
|
6,846,679 |
|
|
|
Wyeth |
|
278,773 |
|
11,295,882 |
|
|
|
|
|
|
|
$ |
125,106,620 |
|
|
Real Estate Investment Trusts (REITs) — 0.6% |
|
|
|
|
|
|
|
Boston Properties, Inc. |
|
86,887 |
|
$ |
8,357,660 |
|
|
Simon Property Group, Inc. |
|
74,300 |
|
6,882,409 |
|
|
|
|
|
|
|
$ |
15,240,069 |
|
|
Semiconductors & Semiconductor Equipment — 0.8% |
|
|
|
|
|
|
|
ASML Holding NV |
|
908,345 |
|
$ |
20,701,183 |
|
|
|
|
|
|
$ |
20,701,183 |
|
|
Software — 2.9% |
|
|
|
|
|
|
|
Microsoft Corp. |
|
1,840,100 |
|
$ |
47,327,372 |
|
|
Oracle Corp. (1) |
|
1,129,755 |
|
24,323,625 |
|
|
|
|
|
|
|
$ |
71,650,997 |
|
|
Specialty Retail — 1.9% |
|
|
|
|
|
|
|
Best Buy Co., Inc. |
|
530,755 |
|
$ |
21,081,589 |
|
|
Home Depot, Inc. |
|
279,088 |
|
6,650,667 |
|
|
|
Staples, Inc. |
|
875,650 |
|
19,702,125 |
|
|
|
|
|
|
|
$ |
47,434,381 |
|
|
Tobacco — 2.3% |
|
|
|
|
|
|
|
British American Tobacco PLC |
|
436,461 |
|
$ |
15,740,841 |
|
|
Philip Morris International, Inc. |
|
816,967 |
|
42,196,346 |
|
|
|
|
|
|
|
$ |
57,937,187 |
|
|
Wireless Telecommunication Services — 0.9% |
|
|
|
|
|
|
|
Rogers Communications, Inc., Class B |
|
281,679 |
|
$ |
9,546,101 |
|
|
Vodafone Group PLC |
|
4,428,667 |
|
11,856,121 |
|
|
|
|
|
|
|
$ |
21,402,222 |
|
|
Total Common Stocks |
|
|
|
$ |
2,450,908,045 |
|
Short-Term Investments — 3.5%
|
|
|
Interest |
|
|
|
|||
|
Description |
|
(000’s omitted) |
|
Value |
|
|||
|
Investment in Cash Management Portfolio, 2.23% (2) |
|
$ |
87,585 |
|
$ |
87,585,026 |
|
|
|
Total Short-Term Investments |
|
|
|
$ |
87,585,026 |
|
||
|
Total Investments — 101.6% |
|
|
|
$ |
2,538,493,071 |
|
||
4
Covered Call Options Written — (1.0)%
|
|
|
Number |
|
Strike |
|
Expiration |
|
|
|
||
|
Description |
|
of Contracts |
|
Price |
|
Date |
|
Value |
|
||
|
S&P 500 Index |
|
2,628 |
|
$ |
1,240 |
|
8/16/08 |
|
$ |
(10,249,200 |
) |
|
S&P 500 Index |
|
865 |
|
1,260 |
|
8/16/08 |
|
(2,249,000 |
) |
||
|
S&P 500 Index |
|
3,836 |
|
1,265 |
|
8/16/08 |
|
(8,861,160 |
) |
||
|
S&P 500 Index |
|
2,316 |
|
1,270 |
|
8/16/08 |
|
(4,400,400 |
) |
||
|
Total Covered Call Options Written |
|
|
|
$ |
(25,759,760 |
) |
|||||
|
Other Assets, Less Liabilities — (0.6)% |
|
|
|
$ |
(13,876,345 |
) |
|||||
|
Net Assets — 100.0% |
|
|
|
$ |
2,498,856,966 |
|
|||||
|
ADR |
— |
American Depository Receipt |
|
(1) |
|
Non-income producing security. |
|
(2) |
|
Affiliated investment company available to Eaton Vance portfolios and funds which invests in high quality, U.S. dollar denominated money market instruments. The rate shown is the annualized seven-day yield as of July 31, 2008. Net income allocated from the Investment in Cash Management Portfolio for the fiscal year to date ended July 31, 2008 was $3,832,503. |
Country Concentration of Portfolio
|
Country |
|
Percentage |
|
Value |
|
|
|
United States |
|
80.8 |
% |
$ |
2,018,631,308 |
|
|
Switzerland |
|
6.3 |
|
158,067,552 |
|
|
|
Germany |
|
3.6 |
|
89,812,427 |
|
|
|
United Kingdom |
|
2.6 |
|
64,360,774 |
|
|
|
Brazil |
|
1.8 |
|
44,798,223 |
|
|
|
Canada |
|
1.7 |
|
41,764,784 |
|
|
|
Netherlands |
|
1.4 |
|
36,169,825 |
|
|
|
Cayman Islands |
|
1.3 |
|
31,238,473 |
|
|
|
Spain |
|
0.7 |
|
18,522,762 |
|
|
|
France |
|
0.6 |
|
16,114,579 |
|
|
|
Bermuda |
|
0.5 |
|
11,719,808 |
|
|
|
Luxembourg |
|
0.3 |
|
7,292,556 |
|
|
|
|
|
101.6 |
% |
$ |
2,538,493,071 |
|
The cost and unrealized appreciation (depreciation) of investments of the Fund at July 31, 2008, as determined on a federal income tax basis, were as follows:
|
Aggregate cost |
|
$ |
2,546,983,396 |
|
|
Gross unrealized appreciation |
|
$ |
150,366,442 |
|
|
Gross unrealized depreciation |
|
(158,856,767 |
) |
|
|
Net unrealized depreciation |
|
$ |
(8,490,325 |
) |
Written call option activity for the fiscal year to date ended July 31, 2008 was as follows:
|
|
|
Number of |
|
Premiums Received |
|
|
|
Outstanding, beginning of period |
|
9,430 |
|
$ |
29,045,955 |
|
|
Options written |
|
94,996 |
|
267,120,345 |
|
|
|
Options terminated in closing purchase transactions |
|
(94,781 |
) |
(272,935,202 |
) |
|
|
Outstanding, end of period |
|
9,645 |
|
$ |
23,231,098 |
|
All of the assets of the Fund are subject to segregation to satisfy the requirements of the escrow agent. At July 31, 2008 the Fund had sufficient cash and/or securities to cover commitments under these contracts.
5
Item 2. Controls and Procedures
(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant on this Form N-Q has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant on this Form N-Q has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrant’s internal controls over financial reporting during the fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrant’s internal control over financial reporting.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Eaton Vance Tax-Managed Diversified Equity Income Fund
|
By: |
|
/s/ Duncan W. Richardson |
|
|
|
Duncan W. Richardson |
|
|
|
President |
|
|
|
|
|
Date: |
|
September 25, 2008 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
By: |
|
/s/ Duncan W. Richardson |
|
|
|
Duncan W. Richardson |
|
|
|
President |
|
|
|
|
|
Date: |
|
September 25, 2008 |
|
|
|
|
|
By: |
|
/s/ Barbara E. Campbell |
|
|
|
Barbara E. Campbell |
|
|
|
Treasurer |
|
|
|
|
|
Date: |
|
September 25, 2008 |