UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-10387
Tax-Managed Value Portfolio
(Exact Name of Registrant as Specified in Charter)
Two International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
Deidre E. Walsh
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
(617) 482-8260
(Registrant’s Telephone Number)
October 31
Date of Fiscal Year End
April 30, 2022
Date of Reporting Period
Item 1. Reports to Stockholders
Common Stocks — 100.0% |
Security | Shares | Value | |
Aerospace & Defense — 2.3% | |||
Hexcel Corp.(1) | 194,045 | $ 10,548,286 | |
Raytheon Technologies Corp. | 113,000 | 10,724,830 | |
$ 21,273,116 | |||
Banks — 12.9% | |||
Bank of America Corp. | 480,774 | $ 17,154,016 | |
Citigroup, Inc. | 81,079 | 3,908,819 | |
JPMorgan Chase & Co. | 288,863 | 34,478,688 | |
KeyCorp | 669,553 | 12,929,068 | |
PNC Financial Services Group, Inc. (The) | 142,029 | 23,591,017 | |
Truist Financial Corp. | 159,821 | 7,727,345 | |
U.S. Bancorp | 187,164 | 9,088,684 | |
Wells Fargo & Co. | 188,847 | 8,239,395 | |
$117,117,032 | |||
Beverages — 1.0% | |||
Constellation Brands, Inc., Class A | 38,140 | $ 9,385,873 | |
$ 9,385,873 | |||
Building Products — 0.5% | |||
Carrier Global Corp. | 113,000 | $ 4,324,510 | |
$ 4,324,510 | |||
Capital Markets — 3.1% | |||
Ameriprise Financial, Inc. | 32,971 | $ 8,753,471 | |
Goldman Sachs Group, Inc. (The) | 62,358 | 19,049,745 | |
$ 27,803,216 | |||
Chemicals — 1.0% | |||
FMC Corp. | 67,011 | $ 8,881,638 | |
$ 8,881,638 | |||
Containers & Packaging — 2.2% | |||
Ball Corp. | 46,376 | $ 3,763,876 | |
Packaging Corp. of America | 102,107 | 16,456,585 | |
$ 20,220,461 | |||
Diversified Telecommunication Services — 2.4% | |||
Verizon Communications, Inc. | 462,890 | $ 21,431,807 | |
$ 21,431,807 |
Security | Shares | Value | |
Electric Utilities — 3.1% | |||
NextEra Energy, Inc. | 392,766 | $ 27,894,241 | |
$ 27,894,241 | |||
Electrical Equipment — 0.9% | |||
Rockwell Automation, Inc. | 33,916 | $ 8,569,556 | |
$ 8,569,556 | |||
Entertainment — 0.2% | |||
Walt Disney Co. (The)(1) | 15,247 | $ 1,702,023 | |
$ 1,702,023 | |||
Equity Real Estate Investment Trusts (REITs) — 4.6% | |||
AvalonBay Communities, Inc. | 47,915 | $ 10,899,704 | |
Boston Properties, Inc. | 59,105 | 6,950,748 | |
CubeSmart | 174,330 | 8,282,419 | |
Mid-America Apartment Communities, Inc. | 77,009 | 15,146,130 | |
$ 41,279,001 | |||
Food & Staples Retailing — 1.7% | |||
BJ's Wholesale Club Holdings, Inc.(1) | 122,219 | $ 7,864,793 | |
Performance Food Group Co.(1) | 151,797 | 7,476,002 | |
$ 15,340,795 | |||
Food Products — 3.2% | |||
Hershey Co. (The) | 47,695 | $ 10,768,100 | |
Nestle S.A. | 138,900 | 17,931,167 | |
$ 28,699,267 | |||
Health Care Equipment & Supplies — 3.4% | |||
Stryker Corp. | 58,093 | $ 14,015,517 | |
Teleflex, Inc. | 35,064 | 10,014,980 | |
Zimmer Biomet Holdings, Inc. | 58,272 | 7,036,344 | |
$ 31,066,841 | |||
Health Care Providers & Services — 2.5% | |||
UnitedHealth Group, Inc. | 43,786 | $ 22,267,370 | |
$ 22,267,370 | |||
Household Durables — 0.8% | |||
D.R. Horton, Inc. | 99,360 | $ 6,914,462 | |
$ 6,914,462 | |||
Industrial Conglomerates — 1.8% | |||
Honeywell International, Inc. | 83,731 | $ 16,202,786 | |
$ 16,202,786 |
Security | Shares | Value | |
Insurance — 2.1% | |||
Arch Capital Group, Ltd.(1) | 183,981 | $ 8,402,412 | |
Travelers Cos., Inc. (The) | 64,030 | 10,952,972 | |
$ 19,355,384 | |||
Interactive Media & Services — 4.1% | |||
Alphabet, Inc., Class A(1) | 7,924 | $ 18,084,073 | |
Alphabet, Inc., Class C(1) | 8,199 | 18,852,207 | |
$ 36,936,280 | |||
IT Services — 3.7% | |||
Euronet Worldwide, Inc.(1) | 61,618 | $ 7,495,830 | |
Visa, Inc., Class A | 122,439 | 26,095,424 | |
$ 33,591,254 | |||
Life Sciences Tools & Services — 2.8% | |||
Thermo Fisher Scientific, Inc. | 46,365 | $ 25,636,136 | |
$ 25,636,136 | |||
Machinery — 4.6% | |||
Ingersoll Rand, Inc. | 353,722 | $ 15,549,619 | |
Otis Worldwide Corp. | 56,500 | 4,115,460 | |
Parker-Hannifin Corp. | 32,913 | 8,913,499 | |
Westinghouse Air Brake Technologies Corp. | 150,850 | 13,562,923 | |
$ 42,141,501 | |||
Multi-Utilities — 3.4% | |||
CMS Energy Corp. | 68,853 | $ 4,729,513 | |
Sempra Energy | 162,537 | 26,226,970 | |
$ 30,956,483 | |||
Oil, Gas & Consumable Fuels — 7.7% | |||
Chevron Corp. | 182,306 | $ 28,561,881 | |
ConocoPhillips | 129,368 | 12,357,231 | |
EOG Resources, Inc. | 167,473 | 19,554,148 | |
Phillips 66 | 109,182 | 9,472,630 | |
$ 69,945,890 | |||
Personal Products — 1.8% | |||
Estee Lauder Cos., Inc. (The), Class A | 61,550 | $ 16,252,893 | |
$ 16,252,893 | |||
Pharmaceuticals — 12.8% | |||
Bristol-Myers Squibb Co. | 183,774 | $ 13,832,669 | |
Eli Lilly & Co. | 76,320 | 22,295,362 | |
Johnson & Johnson | 152,761 | 27,567,250 |
Security | Shares | Value | |
Pharmaceuticals (continued) | |||
Merck & Co., Inc. | 167,049 | $ 14,815,576 | |
Royalty Pharma PLC, Class A | 82,011 | 3,492,028 | |
Sanofi | 155,267 | 16,410,927 | |
Zoetis, Inc. | 101,295 | 17,954,539 | |
$116,368,351 | |||
Road & Rail — 1.3% | |||
Union Pacific Corp. | 50,876 | $ 11,919,738 | |
$ 11,919,738 | |||
Semiconductors & Semiconductor Equipment — 3.6% | |||
Intel Corp. | 258,430 | $ 11,264,964 | |
QUALCOMM, Inc. | 69,710 | 9,737,790 | |
Texas Instruments, Inc. | 65,886 | 11,217,091 | |
$ 32,219,845 | |||
Software — 1.8% | |||
Microsoft Corp. | 25,630 | $ 7,112,837 | |
Oracle Corp. | 52,884 | 3,881,686 | |
VMware, Inc., Class A | 50,491 | 5,455,048 | |
$ 16,449,571 | |||
Specialty Retail — 2.7% | |||
Home Depot, Inc. (The) | 81,060 | $ 24,350,424 | |
$ 24,350,424 | |||
Total Common Stocks (identified cost $430,901,139) | $906,497,745 |
Short-Term Investments — 0.3% |
Security | Shares | Value | |
Morgan Stanley Institutional Liquidity Funds - Government Portfolio, Institutional Class, 0.30%(2) | 2,855,274 | $ 2,855,274 | |
Total Short-Term Investments (identified cost $2,855,274) | $ 2,855,274 | ||
Total Investments — 100.3% (identified cost $433,756,413) | $909,353,019 | ||
Other Assets, Less Liabilities — (0.3)% | $ (2,480,509) | ||
Net Assets — 100.0% | $906,872,510 |
The percentage shown for each investment category in the Portfolio of Investments is based on net assets. | |
(1) | Non-income producing security. |
(2) | May be deemed to be an affiliated investment company. The rate shown is the annualized seven-day yield as of April 30, 2022. |
April 30, 2022 | |
Assets | |
Unaffiliated investments, at value (identified cost $430,901,139) | $ 906,497,745 |
Affiliated investment, at value (identified cost $2,855,274) | 2,855,274 |
Dividends receivable | 1,022,935 |
Dividends receivable from affiliated investment | 57 |
Tax reclaims receivable | 305,573 |
Total assets | $910,681,584 |
Liabilities | |
Payable for investments purchased | $ 3,179,758 |
Payable to affiliates: | |
Investment adviser fee | 502,561 |
Trustees' fees | 4,289 |
Accrued expenses | 122,466 |
Total liabilities | $ 3,809,074 |
Net Assets applicable to investors' interest in Portfolio | $906,872,510 |
Six Months Ended | |
April 30, 2022 | |
Investment Income | |
Dividend income (net of foreign taxes withheld of $62,672) | $ 10,979,189 |
Dividend income from affiliated investments | 894 |
Securities lending income, net | 1,850 |
Total investment income | $ 10,981,933 |
Expenses | |
Investment adviser fee | $ 3,102,791 |
Trustees’ fees and expenses | 25,760 |
Custodian fee | 108,198 |
Legal and accounting services | 31,821 |
Miscellaneous | 12,489 |
Total expenses | $ 3,281,059 |
Deduct: | |
Waiver and/or reimbursement of expenses by affiliate | $ 3 |
Total expense reductions | $ 3 |
Net expenses | $ 3,281,056 |
Net investment income | $ 7,700,877 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss): | |
Investment transactions | $ 31,094,559(1) |
Investment transactions - affiliated investments | (670) |
Foreign currency transactions | (1,427) |
Net realized gain | $ 31,092,462 |
Change in unrealized appreciation (depreciation): | |
Investments | $ (110,892,991) |
Foreign currency | (17,681) |
Net change in unrealized appreciation (depreciation) | $(110,910,672) |
Net realized and unrealized loss | $ (79,818,210) |
Net decrease in net assets from operations | $ (72,117,333) |
(1) | Includes $11,829,764 of net realized gains from redemptions in-kind. |
Six Months Ended April 30, 2022 (Unaudited) | Year Ended October 31, 2021 | |
Increase (Decrease) in Net Assets | ||
From operations: | ||
Net investment income | $ 7,700,877 | $ 11,303,165 |
Net realized gain | 31,092,462 (1) | 50,830,291 (2) |
Net change in unrealized appreciation (depreciation) | (110,910,672) | 241,676,051 |
Net increase (decrease) in net assets from operations | $ (72,117,333) | $303,809,507 |
Capital transactions: | ||
Contributions | $ 10,820,059 | $ 20,515,433 |
Withdrawals | (26,167,579) | (34,694,681) |
Net decrease in net assets from capital transactions | $ (15,347,520) | $ (14,179,248) |
Net increase (decrease) in net assets | $ (87,464,853) | $289,630,259 |
Net Assets | ||
At beginning of period | $ 994,337,363 | $ 704,707,104 |
At end of period | $ 906,872,510 | $994,337,363 |
(1) | Includes $11,829,764 of net realized gains from redemptions in-kind. |
(2) | Includes $13,829,598 of net realized gains from redemptions in-kind. |
Six Months Ended April 30, 2022 (Unaudited) | Year Ended October 31, | |||||
Ratios/Supplemental Data | 2021 | 2020 | 2019 | 2018 | 2017 | |
Ratios (as a percentage of average daily net assets): | ||||||
Expenses | 0.68% (1)(2) | 0.68% | 0.68% | 0.68% | 0.68% | 0.69% |
Net investment income | 1.58% (1) | 1.27% | 1.73% | 1.74% | 1.49% | 1.74% |
Portfolio Turnover | 15% (3) | 11% | 25% | 18% | 10% | 30% |
Total Return | (7.39)% (3) | 43.69% | (4.18)% | 12.90% | 8.55% | 20.97% |
Net assets, end of period (000’s omitted) | $906,873 | $994,337 | $704,707 | $788,248 | $730,479 | $712,901 |
(1) | Annualized. |
(2) | The investment adviser reduced a portion of its adviser fee (equal to less than 0.005% of average daily net assets for the six months ended April 30, 2022). |
(3) | Not annualized. |
Average Daily Net Assets | Annual Fee Rate |
Up to $500 million | 0.6500% |
$500 million but less than $1 billion | 0.6250% |
$1 billion but less than $2 billion | 0.6000% |
$2 billion but less than $5 billion | 0.5750% |
$5 billion and over | 0.5550% |
Aggregate cost | $436,575,598 |
Gross unrealized appreciation | $ 476,761,457 |
Gross unrealized depreciation | (3,984,036) |
Net unrealized appreciation | $472,777,421 |
Name | Value, beginning of period | Purchases | Sales proceeds | Net realized gain (loss) | Change in unrealized appreciation (depreciation) | Value, end of period | Dividend income | Units/Shares, end of period |
Short-Term Investments | ||||||||
Cash Reserves Fund | $3,069,396 | $31,715,724 | $(34,784,450) | $ (670) | $ — | $ — | $ 837 | — |
Liquidity Fund | — | 2,958,849 | (103,575) | — | — | 2,855,274 | 57 | 2,855,274 |
Total | $(670) | $ — | $2,855,274 | $894 |
• | Level 1 – quoted prices in active markets for identical investments |
• | Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3 – significant unobservable inputs (including a fund's own assumptions in determining the fair value of investments) |
Asset Description | Level 1 | Level 2 | Level 3 | Total |
Common Stocks: | ||||
Communication Services | $ 60,070,110 | $ — | $ — | $ 60,070,110 |
Consumer Discretionary | 31,264,886 | — | — | 31,264,886 |
Consumer Staples | 51,747,661 | 17,931,167 | — | 69,678,828 |
Energy | 69,945,890 | — | — | 69,945,890 |
Financials | 164,275,632 | — | — | 164,275,632 |
Health Care | 178,927,771 | 16,410,927 | — | 195,338,698 |
Industrials | 104,431,207 | — | — | 104,431,207 |
Information Technology | 82,260,670 | — | — | 82,260,670 |
Materials | 29,102,099 | — | — | 29,102,099 |
Real Estate | 41,279,001 | — | — | 41,279,001 |
Utilities | 58,850,724 | — | — | 58,850,724 |
Total Common Stocks | $872,155,651 | $34,342,094* | $ — | $906,497,745 |
Short-Term Investments | $ 2,855,274 | $ — | $ — | $ 2,855,274 |
Total Investments | $875,010,925 | $34,342,094 | $ — | $909,353,019 |
* | 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. |
Officers of Eaton Vance Tax-Managed Value Fund | |
Eric A. Stein President | Jill R. Damon Secretary |
Deidre E. Walsh Vice President and Chief Legal Officer | Richard F. Froio Chief Compliance Officer |
James F. Kirchner Treasurer | |
Officers of Tax-Managed Value Portfolio | |
Edward J. Perkin President | Jill R. Damon Secretary |
Deidre E. Walsh Vice President and Chief Legal Officer | Richard F. Froio Chief Compliance Officer |
James F. Kirchner Treasurer |
Trustees of Eaton Vance Tax-Managed Value Fund and Tax-Managed Value Portfolio |
George J. Gorman Chairperson | |
Alan C. Bowser** | |
Thomas E. Faust Jr.* | |
Mark R. Fetting | |
Cynthia E. Frost | |
Valerie A. Mosley | |
William H. Park |
Helen Frame Peters | |
Keith Quinton | |
Marcus L. Smith | |
Susan J. Sutherland | |
Scott E. Wennerholm | |
Nancy A. Wiser** |
* | Interested Trustee |
** | Mr. Bowser and Ms. Wiser began serving as Trustees effective April 4, 2022. |
Privacy Notice | April 2021 |
FACTS | WHAT DOES EATON VANCE DO WITH YOUR PERSONAL INFORMATION? |
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include:■ Social Security number and income ■ investment experience and risk tolerance ■ checking account number and wire transfer instructions |
How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Eaton Vance chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does Eaton Vance share? | Can you limit this sharing? |
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No |
For our marketing purposes — to offer our products and services to you | Yes | No |
For joint marketing with other financial companies | No | We don’t share |
For our investment management affiliates’ everyday business purposes — information about your transactions, experiences, and creditworthiness | Yes | Yes |
For our affiliates’ everyday business purposes — information about your transactions and experiences | Yes | No |
For our affiliates’ everyday business purposes — information about your creditworthiness | No | We don’t share |
For our investment management affiliates to market to you | Yes | Yes |
For our affiliates to market to you | No | We don’t share |
For nonaffiliates to market to you | No | We don’t share |
To limit our sharing | Call toll-free 1-800-262-1122 or email: EVPrivacy@eatonvance.comPlease note:If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing. |
Questions? | Call toll-free 1-800-262-1122 or email: EVPrivacy@eatonvance.com |
Privacy Notice — continued | April 2021 |
Who we are | |
Who is providing this notice? | Eaton Vance Management, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management (International) Limited, Eaton Vance Advisers International Ltd., Eaton Vance Global Advisors Limited, Eaton Vance Management’s Real Estate Investment Group, Boston Management and Research, Calvert Research and Management, Eaton Vance and Calvert Fund Families and our investment advisory affiliates (“Eaton Vance”) (see Investment Management Affiliates definition below) |
What we do | |
How does Eaton Vance protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information. |
How does Eaton Vance collect my personal information? | We collect your personal information, for example, when you■ open an account or make deposits or withdrawals from your account ■ buy securities from us or make a wire transfer ■ give us your contact informationWe also collect your personal information from others, such as credit bureaus, affiliates, or other companies. |
Why can’t I limit all sharing? | Federal law gives you the right to limit only■ sharing for affiliates’ everyday business purposes — information about your creditworthiness ■ affiliates from using your information to market to you ■ sharing for nonaffiliates to market to youState laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |
Definitions | |
Investment Management Affiliates | Eaton Vance Investment Management Affiliates include registered investment advisers, registered broker- dealers, and registered and unregistered funds. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies.■ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.■ Eaton Vance does not share with nonaffiliates so they can market to you. |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.■ Eaton Vance doesn’t jointly market. |
Other important information | |
Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Nonaffiliates unless you provide us with your written consent to share such information.California: Except as permitted by law, we will not share personal information we collect about California residents with Nonaffiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us. |
Two International Place
Boston, MA 02110
Two International Place
Boston, MA 02110
Two International Place
Boston, MA 02110
(617) 482-8260
State Street Financial Center, One Lincoln Street
Boston, MA 02111
Attn: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02940-9653
(800) 262-1122
Boston, MA 02110
Item 2. Code of Ethics
Not required in this filing.
Item 3. Audit Committee Financial Expert
Not required in this filing.
Item 4. Principal Accountant Fees and Services
Not required in this filing.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
No material changes.
Item 11. Controls and Procedures
(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrant’s internal controls over financial reporting during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 13. Exhibits
(a)(1) | Registrant’s Code of Ethics – Not applicable (please see Item 2). | |
(a)(2)(i) | Treasurer’s Section 302 certification. | |
(a)(2)(ii) | President’s Section 302 certification. | |
(b) | Combined Section 906 certification. |
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.
Tax-Managed Value Portfolio | ||
By: | /s/ Edward J. Perkin | |
Edward J. Perkin | ||
President | ||
Date: | June 23, 2022 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ James F. Kirchner | |
James F. Kirchner | ||
Treasurer | ||
Date: | June 23, 2022 | |
By: | /s/ Edward J. Perkin | |
Edward J. Perkin | ||
President | ||
Date: | June 23, 2022 |