N-Q 1 a07-7976_1nq.htm N-Q

 

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

 

811-21832

Eaton Vance Tax-Managed Diversified
Equity Income Fund

(Exact Name of Registrant as Specified in Charter)

The Eaton Vance Building,
255 State Street, Boston, Massachusetts

 

02109

(Address of Principal Executive Offices)

 

(Zip code)

Alan R. Dynner, Esq.

Eaton Vance Management, 255 State Street, Boston, Massachusetts 02109

(Name and Address of Agent for Services)

Registrant’s Telephone Number, Including Area Code:

 

(617) 482-8260

Date of Fiscal Year End:

 

October 31

Date of Reporting Period:

 

January 31, 2007

 

 



Item 1. Schedule of Investments



Eaton Vance Tax-Managed Diversified Equity Income Fund                                                 as of January 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited)

Common Stocks — 100.0%

Security

 

Shares

 

Value

 

Aerospace & Defense — 2.0%

 

 

 

 

 

General Dynamics Corp.

 

353,627

 

$

27,635,950

 

United Technologies Corp.

 

459,201

 

31,234,852

 

 

 

 

 

$

58,870,802

 

Air Freight & Logistics — 0.8%

 

 

 

 

 

FedEx Corp.

 

209,568

 

$

23,136,307

 

 

 

 

 

$

23,136,307

 

Beverages — 0.8%

 

 

 

 

 

PepsiCo, Inc.

 

370,405

 

$

24,165,222

 

 

 

 

 

$

24,165,222

 

Biotechnology — 1.5%

 

 

 

 

 

Amgen, Inc. (1)

 

282,972

 

$

19,912,740

 

Biogen Idec, Inc. (1)

 

236,841

 

11,448,894

 

Gilead Sciences, Inc. (1)

 

199,003

 

12,799,873

 

 

 

 

 

$

44,161,507

 

Capital Markets — 2.7%

 

 

 

 

 

Affiliated Managers Group, Inc. (1)

 

151,704

 

$

16,899,826

 

Bank of New York Co., Inc.

 

734,700

 

29,395,347

 

Goldman Sachs Group, Inc.

 

155,909

 

33,077,653

 

 

 

 

 

$

79,372,826

 

Chemicals — 1.2%

 

 

 

 

 

E.I. du Pont de Nemours and Co.

 

417,626

 

$

20,697,545

 

Monsanto Co.

 

263,585

 

14,520,898

 

 

 

 

 

$

35,218,443

 

Communications Equipment — 1.1%

 

 

 

 

 

Cisco Systems, Inc. (1)

 

774,789

 

$

20,601,639

 

Corning, Inc. (1)

 

505,332

 

10,531,119

 

 

 

 

 

$

31,132,758

 

Computer Peripherals — 3.7%

 

 

 

 

 

Apple Computer, Inc. (1)

 

174,594

 

$

14,967,944

 

Dell, Inc. (1)

 

578,791

 

14,035,682

 

EMC Corp. (1)

 

942,229

 

13,181,784

 

Hewlett-Packard Co.

 

551,688

 

23,877,057

 

International Business Machines Corp.

 

319,175

 

31,646,201

 

Sun Microsystems, Inc. (1)

 

1,815,438

 

12,054,508

 

 

 

 

 

$

109,763,176

 

Diversified Financial Services — 14.9%

 

 

 

 

 

American Express Co.

 

366,123

 

$

21,315,681

 

Bank of America Corp.

 

696,699

 

36,632,433

 

1



 

 

 

BB&T Corp.

 

881,708

 

$

37,260,980

 

Citigroup, Inc.

 

1,431,135

 

78,898,472

 

Fannie Mae

 

300,373

 

16,980,086

 

JPMorgan Chase & Co.

 

828,479

 

42,194,435

 

National City Corp.

 

1,385,500

 

52,441,175

 

Regions Financial Corp.

 

1,376,800

 

49,922,768

 

Wachovia Corp.

 

418,277

 

23,632,650

 

Washington Mutual, Inc.

 

1,174,100

 

52,353,119

 

Wells Fargo & Co.

 

712,278

 

25,585,026

 

 

 

 

 

$

437,216,825

 

Diversified Telecommunication Services — 5.8%

 

 

 

 

 

Alltel Corp.

 

301,190

 

$

18,459,935

 

AT&T, Inc.

 

1,530,500

 

57,592,715

 

Verizon Communications, Inc.

 

2,146,200

 

82,671,624

 

Windstream Corp.

 

826,574

 

12,299,421

 

 

 

 

 

$

171,023,695

 

Electrical Equipment — 1.4%

 

 

 

 

 

Emerson Electric Co.

 

556,709

 

$

25,035,204

 

Thermo Fisher Scientific, Inc. (1)

 

334,007

 

15,982,235

 

 

 

 

 

$

41,017,439

 

Energy — 8.0%

 

 

 

 

 

Aur Resources Inc.

 

775,055

 

$

14,911,470

 

Endesa S.A.

 

1,083,800

 

54,390,195

 

Exelon Corp.

 

417,743

 

25,060,403

 

Iberdrola S.A.

 

1,162,900

 

49,785,037

 

Mirant Corp. (1)

 

532,427

 

18,198,355

 

Schlumberger, Ltd.

 

364,485

 

23,141,153

 

Southern Co.

 

1,401,800

 

51,207,754

 

 

 

 

 

$

236,694,367

 

Food & Staples Retailing — 4.4%

 

 

 

 

 

ConAgra Foods, Inc.

 

1,981,700

 

$

50,949,507

 

Sysco Corp.

 

1,147,400

 

39,642,670

 

Walgreen Co.

 

330,854

 

14,987,686

 

Wal-Mart Stores, Inc.

 

493,477

 

23,533,918

 

 

 

 

 

$

129,113,781

 

Health Care — 4.2%

 

 

 

 

 

Baxter International, Inc.

 

317,418

 

$

15,762,978

 

Health Management Associates, Inc.

 

3,636,848

 

70,736,694

 

Medtronic, Inc.

 

318,124

 

17,003,728

 

WellPoint, Inc. (1)

 

255,644

 

20,037,377

 

 

 

 

 

$

123,540,777

 

2



 

 

 

Hotels, Restaurants & Leisure — 2.9%

 

 

 

 

 

Compass Group PLC (2)

 

11,400,800

 

$

67,876,767

 

Marriott International, Inc., Class A

 

380,605

 

18,322,325

 

 

 

 

 

$

86,199,092

 

 

 

 

 

 

 

Household Durables — 0.8%

 

 

 

 

 

D.R. Horton, Inc.

 

460,369

 

$

13,378,323

 

Ryland Group, Inc., (The)

 

188,726

 

10,602,627

 

 

 

 

 

$

23,980,950

 

Household Products — 1.9%

 

 

 

 

 

Colgate-Palmolive Co.

 

294,884

 

$

20,140,577

 

Procter & Gamble Co.

 

539,901

 

35,023,378

 

 

 

 

 

$

55,163,955

 

Industrial Conglomerates — 1.9%

 

 

 

 

 

General Electric Co.

 

1,577,071

 

$

56,853,410

 

 

 

 

 

$

56,853,410

 

Insurance — 3.0%

 

 

 

 

 

American International Group, Inc.

 

437,042

 

$

29,915,525

 

Hartford Financial Services Group, Inc.

 

224,591

 

21,315,932

 

MetLife, Inc.

 

345,102

 

21,437,736

 

St. Paul Travelers Cos., Inc. (The) (1)

 

332,091

 

16,886,827

 

 

 

 

 

$

89,556,020

 

Internet Software & Services — 0.7%

 

 

 

 

 

Google, Inc., Class A (1)

 

40,174

 

$

20,139,226

 

 

 

 

 

$

20,139,226

 

Machinery — 2.2%

 

 

 

 

 

Deere & Co.

 

176,169

 

$

17,666,227

 

ThyssenKrupp AG (2)

 

979,138

 

46,466,213

 

 

 

 

 

$

64,132,440

 

Media — 2.7%

 

 

 

 

 

CBS Corp., Class B

 

612,375

 

$

19,087,729

 

Comcast Corp., Class A (1)

 

463,086

 

20,523,971

 

Time Warner, Inc.

 

1,028,165

 

22,485,969

 

Viacom, Inc., Class B (1)

 

462,004

 

18,789,703

 

 

 

 

 

$

80,887,372

 

Multi-Utilities — 5.2%

 

 

 

 

 

CMS Energy Corp.

 

1,120,912

 

$

18,708,021

 

Consolidated Edison, Inc.

 

1,052,600

 

50,819,528

 

Duke Energy Corp.

 

1,626,600

 

32,027,754

 

NiSource, Inc.

 

2,123,900

 

50,548,820

 

 

 

 

 

$

152,104,123

 

3



 

 

 

Oil and Gas — 5.7%

 

 

 

 

 

Chesapeake Energy Corp.

 

475,369

 

$

14,075,676

 

Chevron Corp.

 

493,421

 

35,960,522

 

Exxon Mobil Corp.

 

968,506

 

71,766,295

 

Occidental Petroleum Corp.

 

501,341

 

23,242,169

 

Spectra Energy Corp.

 

863,444

 

22,553,157

 

 

 

 

 

$

167,597,819

 

Paper and Forest Products — 0.9%

 

 

 

 

 

Weyerhaeuser Co.

 

335,875

 

$

25,190,625

 

 

 

 

 

$

25,190,625

 

Pharmaceuticals — 5.9%

 

 

 

 

 

Abbott Laboratories

 

476,837

 

$

25,272,361

 

Allergan, Inc.

 

105,457

 

12,307,886

 

AstraZeneca PLC

 

1,062,400

 

59,257,861

 

Biovail Corp.

 

826,620

 

16,846,516

 

Eli Lilly & Co.

 

352,343

 

19,068,803

 

Pfizer, Inc.

 

758,187

 

19,894,827

 

Wyeth

 

455,932

 

22,527,600

 

 

 

 

 

$

175,175,854

 

Semiconductors & Semiconductor Equipment — 2.2%

 

 

 

 

 

Applied Materials, Inc.

 

968,623

 

$

17,173,686

 

Intel Corp.

 

1,388,820

 

29,109,667

 

Texas Instruments, Inc.

 

581,827

 

18,147,184

 

 

 

 

 

$

64,430,537

 

Software — 4.1%

 

 

 

 

 

Microsoft Corp.

 

1,480,847

 

$

45,698,938

 

Oracle Corp. (1)

 

982,286

 

16,856,028

 

Sage Group PLC

 

10,741,900

 

56,896,526

 

 

 

 

 

$

119,451,492

 

Specialty Retail — 2.1%

 

 

 

 

 

Best Buy Co., Inc.

 

186,759

 

$

9,412,654

 

Federated Department Stores, Inc.

 

317,073

 

13,155,359

 

Home Depot, Inc.

 

510,851

 

20,812,070

 

Target Corp.

 

279,001

 

17,119,501

 

 

 

 

 

$

60,499,584

 

Tobacco — 3.6%

 

 

 

 

 

Altria Group, Inc.

 

426,318

 

$

37,255,930

 

Imperial Tobacco Group PLC (2)

 

1,684,400

 

68,282,192

 

 

 

 

 

$

105,538,122

 

Transportation — 1.7%

 

 

 

 

 

FirstGroup PLC

 

4,727,000

 

$

50,642,530

 

 

 

 

 

$

50,642,530

 

Total Common Stocks
(identified cost $2,843,149,379)

 

 

 

$

2,941,971,076

 

 

4



 

 

Short-Term Investments — 0.2%

 

 

Shares/

 

 

 

 

 

Interest

 

 

 

Security

 

(000’s omitted)

 

Value

 

Investment in Cash Management Portfolio, 4.73% (3)

 

5,857

 

$

5,856,745

 

Total Short-Term Investments
(at amortized cost, $5,856,745)

 

 

 

$

5,856,745

 

Total Investments — 100.2%
(identified cost $2,849,006,124)

 

 

 

$

2,947,827,821

 

 

Covered Call Options Written — (0.4%)

 

 

Number of

 

Premium

 

 

 

Type of Contract

 

Contracts

 

Received

 

Value

 

S&P 500 Index, Expires 2/17/07, Strike 1,430.00

 

4,562

 

$

8,133,394

 

$

(7,755,400

)

S&P 500 Index, Expires 2/17/07, Strike 1,435.00

 

2,853

 

4,222,657

 

(3,793,790

)

Total Covered Call Options Written
(premiums received $12,356,051)

 

 

 

 

 

$

(11,549,190

)

 

Other Assets, Less Liabilities — 0.2%

 

 

 

$

4,815,714

 

Net Assets — 100.0%

 

 

 

$

2,941,094,345

 

 

(1)

 

Non-income producing security.

(2)

 

Foreign security.

(3)

 

Affiliated investment investing in high quality, U.S. Dollar denominated money market instruments, and that is available to Eaton Vance portfolios and funds. The rate shown is the annualized seven-day yield as of January 31, 2007.

 

5



 

 

The cost and unrealized appreciation (depreciation) in value of the investments owned at January 31, 2007 as computed on a federal income tax basis, were as follows:

Aggregate cost

 

$

2,849,006,124

 

Gross unrealized appreciation

 

$

127,907,024

 

Gross unrealized depreciation

 

(29,085,327

)

Net unrealized appreciation

 

$

98,821,697

 

 

The net unrealized depreciation on foreign currency at January 31, 2007 was $5,216

Written call option activity for the period ended January 31, 2007 was as follows:

 

 

Number of
Contracts

 

Premiums
Received

 

Outstanding, beginning of period

 

—

 

$

—

 

Options written

 

26,473

 

34,865,512

 

Options closed

 

(19,258

)

(22,509,461

)

Outstanding, end of period

 

7,215

 

$

12,356,051

 

 

At January 31, 2007, the Fund had sufficient cash and/or securities to cover commitments under these contracts.

6



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 and Principal Executive Officer

Date:

 

March 21, 2007

 

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 and Principal Executive Officer

Date:

 

March 21, 2007

By:

 

/s/ Barbara E. Campbell

 

 

Barbara E. Campbell

 

 

Treasurer and Principal Financial Officer

Date:

 

March 21, 2007