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: 811-10389
Tax-Managed International Equity Portfolio
(Exact Name of Registrant as Specified in Charter)
Two International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
Maureen A. Gemma
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
October 31, 2013
Date of Reporting Period
Item 1. Reports to Stockholders
Tax-Managed International Equity Portfolio
October 31, 2013
Portfolio of Investments
Common Stocks — 98.6% | ||||||||
Security | Shares | Value | ||||||
Australia — 5.9% |
| |||||||
AGL Energy, Ltd. | 19,720 | $ | 291,316 | |||||
Amcor, Ltd. | 81,068 | 830,492 | ||||||
APA Group | 9,919 | 56,832 | ||||||
Australia and New Zealand Banking Group, Ltd. | 12,365 | 395,684 | ||||||
BHP Billiton, Ltd. | 9,814 | 346,958 | ||||||
Caltex Australia, Ltd. | 2,834 | 49,519 | ||||||
CFS Retail Property Trust Group | 26,240 | 51,354 | ||||||
Coca-Cola Amatil, Ltd. | 4,616 | 56,252 | ||||||
Commonwealth Bank of Australia | 8,579 | 617,710 | ||||||
Computershare, Ltd. | 6,596 | 66,939 | ||||||
Crown, Ltd. | 5,308 | 84,622 | ||||||
CSL, Ltd. | 5,507 | 362,002 | ||||||
Federation Centres | 22,983 | 53,937 | ||||||
Flight Centre, Ltd. | 1,174 | 57,636 | ||||||
Fortescue Metals Group, Ltd. | 15,408 | 75,567 | ||||||
GPT Group | 20,014 | 69,754 | ||||||
Harvey Norman Holdings, Ltd. | 44,634 | 137,346 | ||||||
James Hardie Industries PLC CDI | 5,348 | 55,316 | ||||||
Leighton Holdings, Ltd. | 4,691 | 79,469 | ||||||
Metcash, Ltd. | 15,823 | 50,074 | ||||||
National Australia Bank, Ltd. | 10,650 | 355,932 | ||||||
Newcrest Mining, Ltd. | 7,992 | 77,496 | ||||||
Orica, Ltd. | 10,197 | 203,004 | ||||||
Origin Energy, Ltd. | 22,838 | 315,723 | ||||||
Qantas Airways, Ltd(1) | 55,697 | 65,481 | ||||||
Rio Tinto, Ltd. | 5,375 | 323,425 | ||||||
Seek, Ltd. | 4,745 | 58,294 | ||||||
Tabcorp Holdings, Ltd. | 17,246 | 58,658 | ||||||
Tatts Group, Ltd. | 20,688 | 61,428 | ||||||
Telstra Corp., Ltd. | 131,338 | 642,673 | ||||||
Toll Holdings, Ltd. | 9,095 | 49,548 | ||||||
Transurban Group | 16,374 | 109,843 | ||||||
Wesfarmers, Ltd.(1) | 1,487 | 60,341 | ||||||
Westfield Retail Trust | 17,493 | 51,036 | ||||||
Westpac Banking Corp. | 3,483 | 113,083 | ||||||
Woodside Petroleum, Ltd. | 4,035 | 147,923 | ||||||
Woolworths, Ltd. | 9,368 | 308,923 | ||||||
$ | 6,791,590 | |||||||
Austria — 1.0% |
| |||||||
OMV AG | 14,433 | $ | 688,492 | |||||
Raiffeisen Bank International AG | 8,706 | 319,336 | ||||||
Verbund AG | 5,540 | 129,958 | ||||||
$ | 1,137,786 | |||||||
Security | Shares | Value | ||||||
Belgium — 3.6% |
| |||||||
Ageas NV SA | 1,164 | $ | 49,463 | |||||
Anheuser-Busch InBev NV | 13,471 | 1,396,452 | ||||||
Belgacom SA | 13,840 | 378,684 | ||||||
Colruyt SA | 7,459 | 416,119 | ||||||
Delhaize Group SA | 915 | 58,436 | ||||||
Groupe Bruxelles Lambert SA | 7,005 | 624,674 | ||||||
KBC Groep NV | 1,451 | 79,053 | ||||||
Solvay SA | 2,273 | 355,413 | ||||||
Telenet Group Holding NV | 3,141 | 172,159 | ||||||
UCB SA | 5,498 | 360,899 | ||||||
Umicore SA | 5,226 | 248,857 | ||||||
$ | 4,140,209 | |||||||
Denmark — 3.9% |
| |||||||
A.P. Moller-Maersk A/S, Class A | 21 | $ | 189,627 | |||||
A.P. Moller-Maersk A/S, Class B | 30 | 290,249 | ||||||
Coloplast A/S, Class B | 14,477 | 944,257 | ||||||
Danske Bank A/S(1) | 3,080 | 71,967 | ||||||
DSV A/S | 13,873 | 405,871 | ||||||
Novo Nordisk A/S, Class B | 8,373 | 1,394,545 | ||||||
Novozymes A/S, Class B | 18,246 | 714,613 | ||||||
TDC A/S | 14,081 | 127,195 | ||||||
Tryg A/S | 2,372 | 216,606 | ||||||
William Demant Holding A/S(1) | 1,810 | 179,239 | ||||||
$ | 4,534,169 | |||||||
Finland — 3.3% |
| |||||||
Elisa Oyj | 13,791 | $ | 345,516 | |||||
Fortum Oyj | 8,270 | 184,478 | ||||||
Kesko Oyj, Class B | 2,175 | 72,275 | ||||||
Kone Oyj, Class B | 11,111 | 979,570 | ||||||
Metso Oyj | 3,262 | 128,393 | ||||||
Neste Oil Oyj | 11,956 | 237,068 | ||||||
Nokia Oyj(1) | 70,780 | 537,983 | ||||||
Nokian Renkaat Oyj | 1,317 | 66,609 | ||||||
Orion Oyj, Class B | 7,962 | 213,988 | ||||||
Sampo Oyj | 11,184 | 529,011 | ||||||
Stora Enso Oyj | 18,840 | 174,946 | ||||||
UPM-Kymmene Oyj | 3,364 | 53,411 | ||||||
Wartsila Oyj | 6,606 | 293,118 | ||||||
$ | 3,816,366 | |||||||
France — 6.7% |
| |||||||
ADP | 1,564 | $ | 167,057 | |||||
Air Liquide SA | 7,276 | 988,908 |
19 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2013
Portfolio of Investments — continued
Security | Shares | Value | ||||||
France (continued) |
| |||||||
AXA SA | 2,207 | $ | 54,988 | |||||
BNP Paribas SA | 683 | 50,387 | ||||||
Carrefour SA | 4,469 | 163,130 | ||||||
CGG SA(1) | 3,608 | 79,304 | ||||||
Christian Dior SA | 768 | 145,718 | ||||||
CNP Assurances | 2,759 | 48,603 | ||||||
Compagnie Generale des Etablissements Michelin, Class B | 289 | 30,113 | ||||||
Credit Agricole SA(1) | 6,298 | 75,724 | ||||||
Dassault Systemes SA | 1,969 | 239,205 | ||||||
EDF SA | 2,363 | 82,700 | ||||||
Essilor International SA | 2,064 | 221,189 | ||||||
Eutelsat Communications SA | 3,731 | 118,004 | ||||||
GDF Suez | 14,024 | 347,568 | ||||||
Groupe FNAC SA(1) | 53 | 1,481 | ||||||
Iliad SA | 316 | 72,172 | ||||||
Imerys SA | 879 | 70,513 | ||||||
JCDecaux SA | 1,986 | 79,599 | ||||||
Kering SA | 430 | 97,451 | ||||||
L’Oreal SA | 1,643 | 280,537 | ||||||
LVMH Moet Hennessy Louis Vuitton SA | 5,415 | 1,039,655 | ||||||
Natixis | 15,283 | 82,186 | ||||||
Orange SA | 5,618 | 77,225 | ||||||
Pernod-Ricard SA | 5,008 | 601,504 | ||||||
Renault SA | 6,653 | 580,476 | ||||||
Safran SA | 4,673 | 297,941 | ||||||
Sanofi | 4,274 | 455,707 | ||||||
SES SA | 2,704 | 78,648 | ||||||
Societe BIC SA | 1,535 | 191,683 | ||||||
Societe Generale | 1,376 | 77,730 | ||||||
Sodexo | 2,236 | 216,950 | ||||||
Suez Environnement Co. SA | 3,678 | 64,134 | ||||||
Total SA | 5,116 | 313,882 | ||||||
Unibail-Rodamco SE | 268 | 70,020 | ||||||
Vallourec SA | 845 | 50,296 | ||||||
Veolia Environnement | 2,686 | 46,080 | ||||||
$ | 7,658,468 | |||||||
Germany — 6.7% | ||||||||
Adidas AG | 2,106 | $ | 239,969 | |||||
BASF SE | 1,133 | 117,622 | ||||||
Bayerische Motoren Werke AG | 5,009 | 566,911 | ||||||
Beiersdorf AG | 1,184 | 112,898 | ||||||
Celesio AG | 1,831 | 56,926 | ||||||
Commerzbank AG(1) | 8,618 | 110,221 | ||||||
Continental AG | 655 | 119,778 | ||||||
Daimler AG | 3,024 | 247,589 |
Security | Shares | Value | ||||||
Germany (continued) |
| |||||||
Deutsche Boerse AG | 642 | $ | 48,296 | |||||
Deutsche Lufthansa AG(1) | 3,987 | 77,081 | ||||||
Deutsche Post AG | 10,201 | 344,502 | ||||||
Deutsche Telekom AG | 13,301 | 209,021 | ||||||
E.ON AG | 2,645 | 48,214 | ||||||
Fraport AG | 937 | 72,489 | ||||||
Fresenius Medical Care AG & Co. KGaA | 705 | 46,591 | ||||||
Hannover Rueckversicherung AG | 1,152 | 92,196 | ||||||
HeidelbergCement AG | 633 | 49,842 | ||||||
Henkel AG & Co. KGaA | 6,387 | 589,061 | ||||||
Hochtief AG | 629 | 56,890 | ||||||
Linde AG | 7,160 | 1,359,150 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG | 256 | 53,410 | ||||||
Osram Licht AG(1) | 7,536 | 390,310 | ||||||
Porsche Automobil Holding SE, PFC Shares | 819 | 76,475 | ||||||
ProSiebenSat.1 Media AG | 1,725 | 82,010 | ||||||
RWE AG | 1,503 | 55,374 | ||||||
RWE AG, PFC Shares | 1,456 | 49,605 | ||||||
Salzgitter AG | 1,112 | 48,938 | ||||||
SAP AG | 18,965 | 1,484,052 | ||||||
Siemens AG | 1,047 | 133,798 | ||||||
ThyssenKrupp AG(1) | 2,906 | 74,142 | ||||||
United Internet AG | 11,282 | 445,032 | ||||||
Volkswagen AG | 484 | 118,360 | ||||||
Volkswagen AG, PFC Shares | 557 | 141,260 | ||||||
$ | 7,718,013 | |||||||
Hong Kong — 4.9% | ||||||||
AAC Technologies Holdings, Inc. | 11,500 | $ | 50,528 | |||||
ASM Pacific Technology, Ltd. | 5,100 | 49,222 | ||||||
Bank of East Asia, Ltd. | 62,800 | 272,158 | ||||||
BOC Hong Kong (Holdings), Ltd. | 116,500 | 378,965 | ||||||
Cathay Pacific Airways, Ltd. | 120,000 | 237,720 | ||||||
Cheung Kong Infrastructure Holdings, Ltd. | 50,000 | 347,937 | ||||||
CLP Holdings, Ltd. | 41,000 | 330,198 | ||||||
Galaxy Entertainment Group, Ltd.(1) | 100,000 | 746,488 | ||||||
Hang Seng Bank, Ltd. | 51,700 | 863,724 | ||||||
HKT Trust and HKT, Ltd. | 83,000 | 76,536 | ||||||
Hong Kong & China Gas Co., Ltd. | 252,340 | 588,163 | ||||||
Hopewell Holdings, Ltd. | 51,500 | 173,770 | ||||||
Li & Fung, Ltd. | 56,000 | 78,737 | ||||||
Link REIT (The) | 22,500 | 113,479 | ||||||
MGM China Holdings, Ltd. | 14,000 | 48,453 | ||||||
MTR Corp., Ltd. | 75,000 | 290,063 | ||||||
Noble Group, Ltd. | 98,000 | 80,969 | ||||||
Orient Overseas (International), Ltd. | 9,000 | 46,486 |
20 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2013
Portfolio of Investments — continued
Security | Shares | Value | ||||||
Hong Kong (continued) |
| |||||||
Power Assets Holdings, Ltd. | 64,000 | $ | 532,371 | |||||
Sands China, Ltd. | 7,600 | 54,233 | ||||||
SJM Holdings, Ltd. | 16,000 | 51,631 | ||||||
Wheelock & Co., Ltd. | 10,000 | 51,162 | ||||||
Wing Hang Bank, Ltd. | 11,500 | 163,095 | ||||||
Wynn Macau, Ltd. | 12,800 | 48,806 | ||||||
$ | 5,674,894 | |||||||
Ireland — 1.2% | ||||||||
CRH PLC | 17,461 | $ | 424,888 | |||||
Elan Corp. PLC(1) | 6,498 | 107,930 | ||||||
Kerry Group PLC, Class A | 12,840 | 822,336 | ||||||
$ | 1,355,154 | |||||||
Israel — 2.0% | ||||||||
Bank Hapoalim B.M. | 57,822 | $ | 309,549 | |||||
Bank Leumi Le-Israel B.M.(1) | 89,574 | 340,959 | ||||||
Bezeq Israeli Telecommunication Corp., Ltd. | 144,376 | 251,025 | ||||||
Delek Group, Ltd. | 342 | 118,094 | ||||||
Israel Chemicals, Ltd. | 15,194 | 125,613 | ||||||
Israel Corp., Ltd.(1) | 83 | 41,763 | ||||||
Mizrahi Tefahot Bank, Ltd. | 15,499 | 181,677 | ||||||
NICE Systems, Ltd. | 6,472 | 253,775 | ||||||
Teva Pharmaceutical Industries, Ltd. ADR | 18,418 | 683,124 | ||||||
$ | 2,305,579 | |||||||
Italy — 4.2% | ||||||||
Atlantia SpA | 14,359 | $ | 314,708 | |||||
Autogrill SpA(1) | 7,979 | 71,626 | ||||||
Enel Green Power SpA | 133,159 | 323,918 | ||||||
Enel SpA | 21,568 | 95,156 | ||||||
ENI SpA | 58,024 | 1,473,051 | ||||||
Fiat SpA(1) | 5,795 | 45,472 | ||||||
Finmeccanica SpA(1) | 17,382 | 127,375 | ||||||
Luxottica Group SpA | 10,902 | 590,576 | ||||||
Pirelli & C. SpA | 3,852 | 54,186 | ||||||
Snam Rete Gas SpA | 128,366 | 661,407 | ||||||
Telecom Italia SpA | 64,684 | 63,102 | ||||||
Telecom Italia SpA, PFC Shares | 365,898 | 286,187 | ||||||
Tenaris SA | 5,930 | 138,729 | ||||||
Terna Rete Elettrica Nazionale SpA | 113,704 | 562,878 | ||||||
UniCredit SpA | 6,750 | 50,669 | ||||||
$ | 4,859,040 | |||||||
Security | Shares | Value | ||||||
Japan — 12.7% | ||||||||
ABC-Mart, Inc. | 1,400 | $ | 70,015 | |||||
Air Water, Inc. | 4,000 | 57,177 | ||||||
Aisin Seiki Co., Ltd. | 1,700 | 69,061 | ||||||
All Nippon Airways Co., Ltd. | 51,000 | 106,552 | ||||||
Amada Co., Ltd. | 7,000 | 60,218 | ||||||
Asahi Kasei Corp. | 7,000 | 53,274 | ||||||
Bank of Kyoto, Ltd. (The) | 17,000 | 149,792 | ||||||
Bank of Yokohama, Ltd. (The) | 28,000 | 154,400 | ||||||
Bridgestone Corp. | 1,000 | 34,283 | ||||||
Brother Industries, Ltd. | 4,400 | 49,994 | ||||||
Calbee, Inc. | 1,800 | 47,231 | ||||||
Canon, Inc. | 1,500 | 47,335 | ||||||
Chiba Bank, Ltd. (The) | 16,000 | 114,062 | ||||||
Chugai Pharmaceutical Co., Ltd. | 9,800 | 230,264 | ||||||
Chugoku Bank, Ltd. (The) | 15,000 | 215,647 | ||||||
Citizen Holdings Co., Ltd. | 7,100 | 50,656 | ||||||
Coca-Cola West Co., Ltd. | 2,800 | 56,792 | ||||||
Dai Nippon Printing Co., Ltd. | 5,000 | 52,530 | ||||||
Daicel Chemical Industries, Ltd. | 6,000 | 50,573 | ||||||
Daihatsu Motor Co., Ltd. | 18,000 | 349,491 | ||||||
Denso Corp. | 1,000 | 48,068 | ||||||
Electric Power Development Co., Ltd. | 1,800 | 57,524 | ||||||
Fuji Electric Co., Ltd. | 14,000 | 62,761 | ||||||
Fuji Heavy Industries, Ltd. | 4,000 | 109,366 | ||||||
FUJIFILM Holdings Corp. | 2,200 | 53,820 | ||||||
Gunma Bank, Ltd. (The) | 39,000 | 225,660 | ||||||
Hachijuni Bank, Ltd. (The) | 30,000 | 185,328 | ||||||
Hamamatsu Photonics K.K. | 3,800 | 142,194 | ||||||
Hino Motors, Ltd. | 5,000 | 70,648 | ||||||
Hirose Electric Co., Ltd. | 300 | 45,771 | ||||||
Hiroshima Bank, Ltd. (The) | 36,000 | 153,213 | ||||||
Hitachi Chemical Co., Ltd. | 3,400 | 52,162 | ||||||
Hitachi Construction Machinery Co., Ltd. | 3,500 | 74,125 | ||||||
Hitachi, Ltd. | 8,000 | 55,961 | ||||||
Hoya Corp. | 2,400 | 57,550 | ||||||
Ibiden Co., Ltd. | 3,200 | 55,474 | ||||||
IHI Corp. | 14,000 | 59,280 | ||||||
Isetan Mitsukoshi Holdings, Ltd. | 5,100 | 77,292 | ||||||
Isuzu Motors, Ltd. | 10,000 | 62,276 | ||||||
Iyo Bank, Ltd. (The) | 18,000 | 187,951 | ||||||
Japan Airlines Co., Ltd. | 5,500 | 321,488 | ||||||
Japan Tobacco, Inc. | 4,200 | 151,971 | ||||||
JFE Holdings, Inc. | 3,100 | 70,478 | ||||||
Joyo Bank, Ltd. (The) | 12,000 | 62,330 | ||||||
JSR Corp. | 3,500 | 66,668 | ||||||
JTEKT Corp. | 5,800 | 74,462 |
21 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2013
Portfolio of Investments — continued
Security | Shares | Value | ||||||
Japan (continued) |
| |||||||
Kamigumi Co., Ltd. | 19,000 | $ | 165,269 | |||||
Kaneka Corp. | 8,000 | 50,764 | ||||||
Kansai Paint Co., Ltd. | 18,000 | 241,864 | ||||||
Kao Corp. | 4,900 | 163,187 | ||||||
Kawasaki Heavy Industries, Ltd. | 22,000 | 85,966 | ||||||
KDDI Corp. | 3,600 | 194,963 | ||||||
Keikyu Corp. | 8,000 | 75,305 | ||||||
Keio Corp. | 24,000 | 166,282 | ||||||
Keyence Corp. | 500 | 214,295 | ||||||
Kikkoman Corp. | 3,000 | 54,677 | ||||||
Kinden Corp. | 5,000 | 54,914 | ||||||
Kintetsu Corp. | 24,000 | 88,324 | ||||||
Kirin Holdings Co., Ltd. | 6,000 | 87,693 | ||||||
Koito Manufacturing Co., Ltd. | 3,000 | 54,611 | ||||||
Komatsu, Ltd. | 4,300 | 94,344 | ||||||
Konami Corp. | 2,100 | 50,752 | ||||||
Kubota Corp. | 4,000 | 59,226 | ||||||
Kuraray Co., Ltd. | 4,500 | 52,836 | ||||||
Kyowa Hakko Kirin Co., Ltd. | 12,000 | 132,540 | ||||||
M3, Inc. | 18 | 49,294 | ||||||
Makita Corp. | 1,500 | 75,854 | ||||||
Mazda Motor Corp.(1) | 12,000 | 54,018 | ||||||
Medipal Holdings Corp. | 4,100 | 55,284 | ||||||
MEIJI Holdings Co., Ltd. | 1,000 | 55,902 | ||||||
Miraca Holdings, Inc. | 1,300 | 58,575 | ||||||
Mitsubishi Electric Corp. | 9,000 | 98,928 | ||||||
Mitsubishi Gas Chemical Co., Inc. | 11,000 | 89,899 | ||||||
Mitsubishi Logistics Corp. | 4,000 | 55,588 | ||||||
Mitsubishi Materials Corp. | 20,000 | 78,248 | ||||||
Mitsubishi Tanabe Pharma Corp. | 6,100 | 86,033 | ||||||
Mitsui Chemicals, Inc. | 21,000 | 55,824 | ||||||
Mitsui O.S.K. Lines, Ltd. | 19,000 | 80,424 | ||||||
MS&AD Insurance Group Holdings, Inc. | 2,200 | 56,886 | ||||||
Murata Manufacturing Co., Ltd. | 1,200 | 96,324 | ||||||
NGK Spark Plug Co., Ltd. | 11,000 | 251,219 | ||||||
NHK Spring Co., Ltd. | 5,300 | 55,479 | ||||||
Nintendo Co., Ltd. | 400 | 44,981 | ||||||
Nippon Electric Glass Co., Ltd. | 10,000 | 51,437 | ||||||
Nippon Meat Packers, Inc. | 3,000 | 43,924 | ||||||
Nippon Yusen KK | 14,000 | 42,777 | ||||||
Nishi-Nippon City Bank, Ltd. (The) | 47,000 | 126,983 | ||||||
Nisshin Seifun Group, Inc. | 5,000 | 54,207 | ||||||
Nissin Foods Holdings Co., Ltd. | 1,200 | 51,365 | ||||||
Nitori Holdings Co., Ltd. | 1,200 | 112,567 | ||||||
Nitto Denko Corp. | 2,000 | 104,882 | ||||||
NOK Corp. | 3,200 | 49,467 |
Security | Shares | Value | ||||||
Japan (continued) |
| |||||||
NSK, Ltd. | 9,000 | $ | 96,141 | |||||
NTT DoCoMo, Inc. | 27,900 | 442,634 | ||||||
Odakyu Electric Railway Co., Ltd. | 12,000 | 115,809 | ||||||
OMRON Corp. | 2,900 | 110,667 | ||||||
Ono Pharmaceutical Co., Ltd. | 3,200 | 241,952 | ||||||
Oracle Corp. Japan | 2,800 | 110,554 | ||||||
Osaka Gas Co., Ltd. | 15,000 | 63,181 | ||||||
Panasonic Corp. | 5,200 | 53,297 | ||||||
Rakuten, Inc. | 9,100 | 118,570 | ||||||
Ricoh Co., Ltd. | 4,000 | 42,243 | ||||||
Rinnai Corp. | 1,400 | 108,360 | ||||||
ROHM Co., Ltd. | 1,200 | 49,257 | ||||||
Sankyo Co., Ltd. | 1,400 | 66,582 | ||||||
Santen Pharmaceutical Co., Ltd. | 2,200 | 111,685 | ||||||
Seven Bank, Ltd. | 7,400 | 26,190 | ||||||
Shikoku Electric Power Co., Inc.(1) | 2,900 | 51,763 | ||||||
Shin-Etsu Chemical Co., Ltd. | 1,900 | 107,430 | ||||||
Shinsei Bank, Ltd. | 23,000 | 53,850 | ||||||
Shiseido Co., Ltd. | 3,700 | 63,296 | ||||||
Shizuoka Bank, Ltd. (The) | 26,000 | 292,536 | ||||||
SMC Corp. | 200 | 46,564 | ||||||
SoftBank Corp. | 2,700 | 201,633 | ||||||
Sony Corp. | 2,800 | 48,845 | ||||||
Stanley Electric Co., Ltd. | 2,200 | 51,174 | ||||||
Sumco Corp. | 6,100 | 55,429 | ||||||
Sumitomo Chemical Co., Ltd. | 21,000 | 76,910 | ||||||
Sumitomo Electric Industries, Ltd. | 3,700 | 55,442 | ||||||
Sumitomo Metal Mining Co., Ltd. | 5,000 | 69,253 | ||||||
Sumitomo Mitsui Trust Holding, Inc. | 11,000 | 54,330 | ||||||
Suntory Beverage & Food, Ltd.(1) | 1,700 | 55,967 | ||||||
Suruga Bank, Ltd. | 10,000 | 158,633 | ||||||
Suzuken Co., Ltd. | 5,000 | 180,549 | ||||||
Suzuki Motor Corp. | 2,100 | 52,805 | ||||||
Sysmex Corp. | 1,700 | 112,613 | ||||||
Taiyo Nippon Sanso Corp. | 8,000 | 54,859 | ||||||
Terumo Corp. | 1,000 | 48,431 | ||||||
THK Co., Ltd. | 2,500 | 54,571 | ||||||
Toho Gas Co., Ltd. | 33,000 | 172,077 | ||||||
Tohoku Electric Power Co., Inc.(1) | 3,800 | 45,996 | ||||||
Tokyo Electric Power Co., Inc.(1) | 12,500 | 66,711 | ||||||
Tokyo Electron, Ltd. | 900 | 49,385 | ||||||
Tokyo Gas Co., Ltd. | 22,000 | 119,372 | ||||||
TonenGeneral Sekiyu K.K. | 23,000 | 213,657 | ||||||
TOTO, Ltd. | 3,000 | 42,427 | ||||||
Toyo Seikan Kaisha, Ltd. | 2,500 | 51,957 | ||||||
Toyo Suisan Kaisha, Ltd. | 1,000 | 31,803 |
22 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2013
Portfolio of Investments — continued
Security | Shares | Value | ||||||
Japan (continued) |
| |||||||
Toyoda Gosei Co., Ltd. | 2,000 | $ | 50,009 | |||||
Toyota Boshoku Corp. | 4,100 | 54,916 | ||||||
Toyota Industries Corp. | 1,100 | 48,521 | ||||||
Toyota Motor Corp. | 2,700 | 175,063 | ||||||
Tsumura & Co. | 1,700 | 53,431 | ||||||
Unicharm Corp. | 5,000 | 321,144 | ||||||
USS Co., Ltd. | 10,400 | 152,303 | ||||||
Yakult Honsha Co., Ltd. | 1,500 | 76,190 | ||||||
Yamaha Corp. | 3,400 | 50,764 | ||||||
Yamaha Motor Co., Ltd. | 6,600 | 101,102 | ||||||
Yamato Holdings Co., Ltd. | 3,200 | 68,819 | ||||||
Yaskawa Electric Corp. | 4,000 | 51,803 | ||||||
Yokogawa Electric Corp. | 5,100 | 66,651 | ||||||
Yokohama Rubber Co., Ltd. (The) | 5,000 | 48,908 | ||||||
$ | 14,544,363 | |||||||
Netherlands — 4.9% | ||||||||
Aegon NV | 9,795 | $ | 77,938 | |||||
Akzo Nobel NV | 8,949 | 649,647 | ||||||
ASML Holding NV | 14,163 | 1,341,061 | ||||||
Delta Lloyd NV | 3,195 | 67,739 | ||||||
European Aeronautic Defence and Space Co. NV | 3,366 | 230,654 | ||||||
Gemalto NV | 562 | 63,079 | ||||||
Heineken Holding NV | 3,202 | 203,375 | ||||||
Heineken NV | 7,054 | 486,071 | ||||||
ING Groep NV(1) | 6,256 | 79,499 | ||||||
Koninklijke Ahold NV | 46,093 | 876,068 | ||||||
Koninklijke DSM NV | 9,532 | 720,548 | ||||||
Koninklijke KPN NV(1) | 16,902 | 53,813 | ||||||
Koninklijke Vopak NV | 1,918 | 117,963 | ||||||
QIAGEN NV(1) | 13,623 | 312,661 | ||||||
Randstad Holding NV | 887 | 54,629 | ||||||
Reed Elsevier NV | 11,930 | 239,848 | ||||||
STMicroelectronics NV | 5,561 | 42,775 | ||||||
$ | 5,617,368 | |||||||
New Zealand — 0.5% | ||||||||
Auckland International Airport, Ltd. | 79,283 | $ | 224,437 | |||||
Contact Energy, Ltd. | 23,324 | 101,143 | ||||||
Fletcher Building, Ltd. | 17,648 | 145,641 | ||||||
Telecom Corporation of New Zealand, Ltd. | 52,744 | 102,347 | ||||||
$ | 573,568 | |||||||
Norway — 2.7% | ||||||||
Aker Solutions ASA | 18,065 | $ | 249,579 | |||||
Gjensidige Forsikring ASA | 6,519 | 121,679 |
Security | Shares | Value | ||||||
Norway (continued) |
| |||||||
Norsk Hydro ASA | 58,621 | $ | 261,612 | |||||
Orkla ASA | 20,563 | 166,687 | ||||||
Seadrill, Ltd. | 8,001 | 370,080 | ||||||
Statoil ASA | 35,612 | 842,623 | ||||||
Telenor ASA | 42,114 | 1,011,899 | ||||||
Yara International ASA | 1,858 | 80,019 | ||||||
$ | 3,104,178 | |||||||
Portugal — 0.6% | ||||||||
Banco Espirito Santo SA(1) | 39,242 | $ | 51,563 | |||||
EDP-Energias de Portugal SA | 73,323 | 269,903 | ||||||
Galp Energia SGPS SA, Class B | 7,743 | 131,116 | ||||||
Jeronimo Martins SGPS SA | 9,657 | 177,849 | ||||||
Portugal Telecom SGPS SA | 20,164 | 90,889 | ||||||
$ | 721,320 | |||||||
Singapore — 4.1% | ||||||||
Ascendas Real Estate Investment Trust | 60,000 | $ | 114,080 | |||||
CapitaMall Trust | 33,000 | 53,598 | ||||||
ComfortDelGro Corp., Ltd. | 45,000 | 69,488 | ||||||
DBS Group Holdings, Ltd. | 90,300 | 1,217,377 | ||||||
Jardine Cycle & Carriage, Ltd. | 2,000 | 58,942 | ||||||
Olam International, Ltd. | 66,000 | 81,652 | ||||||
Oversea-Chinese Banking Corp., Ltd. | 102,000 | 853,280 | ||||||
Singapore Airlines, Ltd. | 37,000 | 310,370 | ||||||
Singapore Press Holdings, Ltd. | 33,000 | 112,883 | ||||||
Singapore Technologies Engineering, Ltd. | 38,000 | 128,850 | ||||||
Singapore Telecommunications, Ltd. | 209,000 | 634,687 | ||||||
StarHub, Ltd. | 33,000 | 118,000 | ||||||
United Overseas Bank, Ltd. | 33,000 | 552,638 | ||||||
UOL Group, Ltd. | 51,000 | 269,936 | ||||||
Yangzijiang Shipbuilding Holdings, Ltd. | 83,000 | 78,737 | ||||||
$ | 4,654,518 | |||||||
Spain — 4.6% | ||||||||
Abertis Infraestructuras SA | 14,497 | $ | 310,598 | |||||
Acciona SA | 828 | 52,489 | ||||||
Acerinox SA | 8,757 | 115,431 | ||||||
ACS Actividades de Construccion y Servicios SA | 3,559 | 116,753 | ||||||
Amadeus IT Holding SA, Class A | 12,461 | 462,332 | ||||||
CaixaBank SA | 50,803 | 263,320 | ||||||
Distribuidora Internacional de Alimentacion SA | 10,918 | 99,539 | ||||||
Enagas | 17,193 | 459,054 | ||||||
Ferrovial SA | 28,385 | 541,068 | ||||||
Grifols SA | 5,094 | 208,785 |
23 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2013
Portfolio of Investments — continued
Security | Shares | Value | ||||||
Spain (continued) |
| |||||||
Iberdrola SA | 18,069 | $ | 113,416 | |||||
Indra Sistemas SA | 7,412 | 122,230 | ||||||
Industria de Diseno Textil SA | 4,511 | 740,882 | ||||||
International Consolidated Airlines Group SA(1) | 17,117 | 95,060 | ||||||
Red Electrica Corp. SA | 5,529 | 344,261 | ||||||
Repsol SA | 14,951 | 400,849 | ||||||
Telefonica SA(1) | 40,287 | 709,023 | ||||||
Zardoya Otis SA | 6,587 | 114,591 | ||||||
$ | 5,269,681 | |||||||
Sweden — 5.1% | ||||||||
Atlas Copco AB, Class A | 1,766 | $ | 48,931 | |||||
Elekta AB, Class B | 3,308 | 48,856 | ||||||
Getinge AB, Class B | 3,273 | 103,689 | ||||||
Hennes & Mauritz AB, Class B | 18,506 | 799,678 | ||||||
Holmen AB, Class B | 6,671 | 221,591 | ||||||
Investor AB, Class B | 14,100 | 452,077 | ||||||
Lundin Petroleum AB(1) | 2,108 | 43,442 | ||||||
Millicom International Cellular SA SDR | 2,789 | 257,303 | ||||||
Nordea Bank AB | 68,825 | 880,376 | ||||||
Scania AB, Class B | 5,767 | 115,590 | ||||||
Skandinaviska Enskilda Banken AB, Class A | 37,448 | 452,936 | ||||||
Skanska AB, Class B | 17,255 | 332,233 | ||||||
SKF AB, Class B | 5,595 | 148,040 | ||||||
Svenska Cellulosa AB SCA, Class B | 3,122 | 88,513 | ||||||
Swedbank AB, Class A | 17,314 | 450,620 | ||||||
Tele2 AB, Class B | 17,326 | 208,837 | ||||||
Telefonaktiebolaget LM Ericsson, Class B | 11,670 | 139,587 | ||||||
TeliaSonera AB | 135,801 | 1,122,937 | ||||||
$ | 5,915,236 | |||||||
Switzerland — 7.1% |
| |||||||
Actelion, Ltd.(1) | 5,582 | $ | 431,882 | |||||
Adecco SA(1) | 4,988 | 367,834 | ||||||
ARYZTA AG(1) | 788 | 58,787 | ||||||
Baloise Holding AG | 1,367 | 158,810 | ||||||
Coca-Cola HBC AG(1) | 8,092 | 232,730 | ||||||
Credit Suisse Group AG(1) | 2,430 | 75,592 | ||||||
Geberit AG | 236 | 70,509 | ||||||
Givaudan SA(1) | 157 | 222,656 | ||||||
Lonza Group AG(1) | 774 | 69,090 | ||||||
Nestle SA | 21,922 | 1,582,416 | ||||||
Novartis AG | 13,636 | 1,058,461 | ||||||
Roche Holding AG PC | 3,945 | 1,090,932 | ||||||
Schindler Holding AG | 2,365 | 336,570 |
Security | Shares | Value | ||||||
Switzerland (continued) |
| |||||||
Sonova Holding AG(1) | 2,191 | $ | 285,139 | |||||
Sulzer AG | 795 | 124,370 | ||||||
Swatch Group, Ltd. (The) | 458 | 50,958 | ||||||
Swatch Group, Ltd. (The), Bearer Shares | 638 | 407,485 | ||||||
Swiss Life Holding AG(1) | 399 | 79,114 | ||||||
Swiss Reinsurance Co., Ltd. | 7,299 | 640,725 | ||||||
Swisscom AG | 1,047 | 534,028 | ||||||
Transocean, Ltd. | 1,218 | 57,524 | ||||||
Zurich Insurance Group AG(1) | 830 | 229,348 | ||||||
$ | 8,164,960 | |||||||
United Kingdom — 12.9% | ||||||||
Aberdeen Asset Management PLC | 14,295 | $ | 101,449 | |||||
Anglo American PLC | 9,686 | 230,300 | ||||||
Associated British Foods PLC | 8,893 | 323,305 | ||||||
AstraZeneca PLC | 6,335 | 335,376 | ||||||
Aviva PLC | 83,894 | 602,267 | ||||||
BAE Systems PLC | 30,618 | 223,343 | ||||||
Barclays PLC | 129,770 | 546,002 | ||||||
BHP Billiton PLC | 4,062 | 125,347 | ||||||
BP PLC | 105,443 | 818,512 | ||||||
Bunzl PLC | 2,862 | 63,133 | ||||||
Burberry Group PLC | 18,459 | 453,602 | ||||||
Capita PLC | 9,433 | 149,118 | ||||||
Centrica PLC | 140,577 | 795,066 | ||||||
Cobham PLC | 38,227 | 176,544 | ||||||
Compass Group PLC | 7,989 | 114,891 | ||||||
Croda International PLC | 1,406 | 54,943 | ||||||
Diageo PLC | 27,272 | 869,362 | ||||||
easyJet PLC | 2,461 | 51,551 | ||||||
Experian PLC | 4,935 | 100,470 | ||||||
Fresnillo PLC | 4,696 | 73,411 | ||||||
GKN PLC | 13,143 | 77,422 | ||||||
GlaxoSmithKline PLC | 3,480 | 91,741 | ||||||
HSBC Holdings PLC | 40,207 | 440,723 | ||||||
Kingfisher PLC | 10,578 | 63,991 | ||||||
Lloyds Banking Group PLC(1) | 451,225 | 558,073 | ||||||
Marks & Spencer Group PLC | 23,568 | 190,056 | ||||||
Melrose Industries PLC | 45,525 | 233,393 | ||||||
National Grid PLC | 9,123 | 114,646 | ||||||
Next PLC | 1,363 | 119,027 | ||||||
Old Mutual PLC | 157,158 | 512,184 | ||||||
Prudential PLC | 6,666 | 136,325 | ||||||
Randgold Resources, Ltd. | 2,371 | 175,838 | ||||||
Reed Elsevier PLC | 7,665 | 107,374 | ||||||
Rexam PLC | 14,205 | 118,286 |
24 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2013
Portfolio of Investments — continued
Security | Shares | Value | ||||||
United Kingdom (continued) |
| |||||||
Rio Tinto PLC | 4,728 | $ | 239,237 | |||||
Rolls-Royce Holdings PLC(1) | 6,194 | 114,112 | ||||||
Rolls-Royce Holdings PLC, PFC | 3,054,770 | 4,898 | ||||||
Royal Dutch Shell PLC, Class A | 29,315 | 976,330 | ||||||
Sage Group PLC (The) | 21,582 | 116,429 | ||||||
Schroders PLC | 2,674 | 110,362 | ||||||
Serco Group PLC | 28,822 | 257,550 | ||||||
Severn Trent PLC | 1,894 | 56,535 | ||||||
Shire PLC | 2,773 | 122,956 | ||||||
Smiths Group PLC | 5,909 | 135,998 | ||||||
SSE PLC | 2,331 | 52,879 | ||||||
Standard Chartered PLC | 21,102 | 506,659 | ||||||
Subsea 7 SA | 10,099 | 213,571 | ||||||
Tesco PLC | 91,836 | 535,692 | ||||||
Travis Perkins PLC | 7,798 | 231,893 | ||||||
TUI Travel PLC | 8,349 | 51,471 | ||||||
Tullow Oil PLC | 14,362 | 217,085 | ||||||
Unilever PLC | 4,839 | 196,226 | ||||||
United Utilities Group PLC | 4,978 | 56,301 | ||||||
Vodafone Group PLC | 242,402 | 887,860 | ||||||
Whitbread PLC | 4,692 | 258,018 | ||||||
WM Morrison Supermarkets PLC | 24,517 | 110,621 | ||||||
Wolseley PLC | 4,264 | 229,535 | ||||||
$ | 14,829,289 | |||||||
Total Common Stocks |
| $ | 113,385,749 | |||||
Short-Term Investments — 0.6% | ||||||||
Description | Interest (000’s omitted) | Value | ||||||
Eaton Vance Cash Reserves Fund, LLC, 0.14%(2) | $ | 747 | $ | 747,388 | ||||
Total Short-Term Investments |
| $ | 747,388 | |||||
Total Investments — 99.2% |
| $ | 114,133,137 | |||||
Other Assets, Less Liabilities — 0.8% |
| $ | 902,633 | |||||
Net Assets — 100.0% |
| $ | 115,035,770 | |||||
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
ADR | – | American Depositary Receipt | ||
CDI | – | CHESS Depositary Interest | ||
PC | – | Participation Certificate | ||
PFC Shares | – | Preference Shares | ||
SDR | – | Swedish Depositary 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 October 31, 2013. |
Currency Concentration of Portfolio | ||||||||
Currency | Percentage of Net Assets | Value | ||||||
Euro | 36.8 | % | $ | 42,293,405 | ||||
British Pound Sterling | 12.9 | 14,848,448 | ||||||
Japanese Yen | 12.7 | 14,544,363 | ||||||
Swiss Franc | 6.9 | 7,932,230 | ||||||
Australian Dollar | 5.9 | 6,791,590 | ||||||
Swedish Krona | 5.1 | 5,915,236 | ||||||
Hong Kong Dollar | 4.9 | 5,593,925 | ||||||
Singapore Dollar | 4.1 | 4,735,487 | ||||||
Danish Krone | 3.9 | 4,534,169 | ||||||
Norwegian Krone | 2.9 | 3,317,749 | ||||||
Israeli Shekel | 1.4 | 1,622,455 | ||||||
United States Dollar | 1.2 | 1,430,512 | ||||||
New Zealand Dollar | 0.5 | 573,568 | ||||||
Total Investments | 99.2 | % | $ | 114,133,137 | ||||
Sector Classification of Portfolio | ||||||||
Sector | Percentage of Net Assets | Value | ||||||
Financials | 17.3 | % | $ | 19,961,878 | ||||
Industrials | 12.2 | 13,998,489 | ||||||
Consumer Discretionary | 11.2 | 12,834,073 | ||||||
Consumer Staples | 10.8 | 12,392,580 | ||||||
Health Care | 9.8 | 11,261,229 | ||||||
Materials | 9.4 | 10,865,829 | ||||||
Telecommunication Services | 7.9 | 9,100,189 | ||||||
Energy | 7.1 | 8,214,116 | ||||||
Utilities | 6.8 | 7,790,604 | ||||||
Information Technology | 6.1 | 6,966,762 | ||||||
Short-Term Investments | 0.6 | 747,388 | ||||||
Total Investments | 99.2 | % | $ | 114,133,137 | ||||
25 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2013
Statement of Assets and Liabilities
Assets | October 31, 2013 | |||
Unaffiliated investments, at value (identified cost, $94,294,434) | $ | 113,385,749 | ||
Affiliated investment, at value (identified cost, $747,388) | 747,388 | |||
Foreign currency, at value (identified cost, $143,408) | 141,556 | |||
Dividends receivable | 140,170 | |||
Interest receivable from affiliated investment | 38 | |||
Tax reclaims receivable | 751,234 | |||
Total assets | $ | 115,166,135 | ||
Liabilities | ||||
Payable for investments purchased | $ | 854 | ||
Payable to affiliates: | ||||
Investment adviser fee | 72,374 | |||
Trustees’ fees | 384 | |||
Accrued expenses | 56,753 | |||
Total liabilities | $ | 130,365 | ||
Net Assets applicable to investors’ interest in Portfolio | $ | 115,035,770 | ||
Sources of Net Assets | ||||
Investors’ capital | $ | 95,868,481 | ||
Net unrealized appreciation | 19,167,289 | |||
Total | $ | 115,035,770 |
26 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2013
Statement of Operations
Investment Income | Year Ended October 31, 2013 | |||
Dividends (net of foreign taxes, $309,055) | $ | 3,492,190 | ||
Interest allocated from affiliated investment | 502 | |||
Expenses allocated from affiliated investment | (59 | ) | ||
Total investment income | $ | 3,492,633 | ||
Expenses | ||||
Investment adviser fee | $ | 811,992 | ||
Trustees’ fees and expenses | 4,597 | |||
Custodian fee | 128,106 | |||
Legal and accounting services | 36,904 | |||
Miscellaneous | 40,413 | |||
Total expenses | $ | 1,022,012 | ||
Net investment income | $ | 2,470,621 | ||
Realized and Unrealized Gain (Loss) | ||||
Net realized gain (loss) — | ||||
Investment transactions | $ | 3,685,424 | ||
Investment transactions allocated from affiliated investment | 21 | |||
Foreign currency transactions | (9,490 | ) | ||
Net realized gain | $ | 3,675,955 | ||
Change in unrealized appreciation (depreciation) — | ||||
Investments | $ | 14,813,718 | ||
Foreign currency | 23,467 | |||
Net change in unrealized appreciation (depreciation) | $ | 14,837,185 | ||
Net realized and unrealized gain | $ | 18,513,140 | ||
Net increase in net assets from operations | $ | 20,983,761 |
27 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2013
Statements of Changes in Net Assets
Year Ended October 31, | ||||||||
Increase (Decrease) in Net Assets | 2013 | 2012 | ||||||
From operations — | ||||||||
Net investment income | $ | 2,470,621 | $ | 2,679,955 | ||||
Net realized gain from investment and foreign currency transactions | 3,675,955 | 2,592,699 | ||||||
Net change in unrealized appreciation (depreciation) from investments and foreign currency | 14,837,185 | 4,557,510 | ||||||
Net increase in net assets from operations | $ | 20,983,761 | $ | 9,830,164 | ||||
Capital transactions — | ||||||||
Contributions | $ | 4,862,027 | $ | 1,889,335 | ||||
Withdrawals | (14,101,255 | ) | (17,282,938 | ) | ||||
Net decrease in net assets from capital transactions | $ | (9,239,228 | ) | $ | (15,393,603 | ) | ||
Net increase (decrease) in net assets | $ | 11,744,533 | $ | (5,563,439 | ) | |||
Net Assets | ||||||||
At beginning of year | $ | 103,291,237 | $ | 108,854,676 | ||||
At end of year | $ | 115,035,770 | $ | 103,291,237 |
28 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2013
Supplementary Data
Year Ended October 31, | ||||||||||||||||||||
Ratios/Supplemental Data | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
Ratios (as a percentage of average daily net assets): | ||||||||||||||||||||
Expenses(1) | 0.94 | % | 1.03 | % | 1.13 | % | 1.13 | % | 1.12 | %(2) | ||||||||||
Net investment income | 2.28 | % | 2.60 | % | 1.67 | % | 1.30 | % | 2.30 | % | ||||||||||
Portfolio Turnover | 30 | % | 117 | % | 41 | % | 72 | % | 57 | % | ||||||||||
Total Return | 21.20 | % | 10.24 | % | (9.16 | )% | 5.48 | % | 16.92 | % | ||||||||||
Net assets, end of year (000’s omitted) | $ | 115,036 | $ | 103,291 | $ | 108,855 | $ | 174,638 | $ | 193,608 |
(1) | Excludes the effect of custody fee credits, if any, of less than 0.005%. |
(2) | The investment adviser waived a portion of its investment adviser fee (equal to less than 0.005% of average daily net assets for the year ended October 31, 2009). All of the waiver was borne by the sub-adviser. |
29 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2013
Notes to Financial Statements
1 Significant Accounting Policies
Tax-Managed International Equity Portfolio (the Portfolio) is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a diversified, open-end management investment company. The Portfolio’s investment objective is to achieve long-term, after-tax returns by investing in a diversified portfolio of foreign equity securities. The Declaration of Trust permits the Trustees to issue interests in the Portfolio. At October 31, 2013, Parametric Tax-Managed International Equity Fund (formerly, Eaton Vance Tax-Managed International Equity Fund) and Eaton Vance Tax-Managed Equity Asset Allocation Fund held an interest of 39.0% and 61.0%, respectively, in the Portfolio.
The following is a summary of significant accounting policies of the Portfolio. The policies are in conformity with accounting principles generally accepted in the United States of America.
A Investment Valuation — The following methodologies are used to determine the market value or fair value of investments.
Equity Securities. Equity securities (including common shares of closed-end investment companies) 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 asked prices therefore 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 asked prices.
Debt Obligations. Short-term obligations purchased with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates market value.
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 Portfolio’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 Portfolio may invest in Eaton Vance Cash Reserves Fund, LLC (Cash Reserves Fund), an affiliated investment company managed by Eaton Vance Management (EVM). The value of the Portfolio’s investment in Cash Reserves Fund reflects the Portfolio’s proportionate interest in its net assets. Cash Reserves Fund generally values its investment securities utilizing the amortized cost valuation technique in accordance with Rule 2a-7 under the 1940 Act. This technique involves initially valuing a portfolio security at its cost and thereafter assuming a constant amortization to maturity of any discount or premium. If amortized cost is determined not to approximate fair value, Cash Reserves Fund may value 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 Portfolio in a manner that fairly reflects the security’s value, or the amount that the Portfolio 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 condition, 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 Portfolio is informed of the ex-dividend date. Withholding taxes on foreign dividends and capital gains have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount.
D Federal Taxes — The Portfolio has elected to be treated as a partnership for federal tax purposes. No provision is made by the Portfolio for federal or state taxes on any taxable income of the Portfolio because each investor in the Portfolio is ultimately responsible for the payment of any taxes on its share of taxable income. Since at least one of the Portfolio’s investors is a regulated investment company that invests all or substantially all of its assets in the Portfolio, the Portfolio normally must satisfy the applicable source of income and diversification requirements (under the Internal Revenue Code) in order for its investors to satisfy them. The Portfolio will allocate, at least annually among its investors, each investor’s distributive share of the Portfolio’s net investment income, net realized capital gains and any other items of income, gain, loss, deduction or credit.
30 |
Tax-Managed International Equity Portfolio
October 31, 2013
Notes to Financial Statements — continued
As of October 31, 2013, the Portfolio had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. The Portfolio files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.
E Expense Reduction — State Street Bank and Trust Company (SSBT) serves as custodian of the Portfolio. Pursuant to the custodian agreement, SSBT receives a fee reduced by credits, which are determined based on the average daily cash balance the Portfolio maintains with SSBT. All credit balances, if any, used to reduce the Portfolio’s custodian fees are reported as a reduction of expenses in the Statement of Operations.
F 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.
G Use of Estimates — The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America 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.
H Indemnifications — Under the Portfolio’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 Portfolio. Under Massachusetts law, if certain conditions prevail, interestholders in the Portfolio could be deemed to have personal liability for the obligations of the Portfolio. However, the Portfolio’s Declaration of Trust contains an express disclaimer of liability on the part of Portfolio interestholders and the By-laws provide that the Portfolio shall assume the defense on behalf of any Portfolio interestholder. Moreover, the By-laws also provide for indemnification out of Portfolio property of any interestholder held personally liable solely by reason of being or having been an interestholder for all loss or expense arising from such liability. Additionally, in the normal course of business, the Portfolio enters into agreements with service providers that may contain indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred.
2 Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Boston Management and Research (BMR), a subsidiary of EVM, as compensation for investment advisory services rendered to the Portfolio. Pursuant to the investment advisory agreement and subsequent fee reduction agreement between the Portfolio and BMR, the fee is computed at an annual rate of 0.75% of the Portfolio’s average daily net assets up to $500 million and is payable monthly. On net assets of $500 million or over, the annual fee is reduced. This fee reduction cannot be terminated or reduced without the approval of a majority vote of the Trustees of the Portfolio who are not interested persons of BMR or the Portfolio and by the vote of a majority of the holders of interests in the Portfolio. For the year ended October 31, 2013, the Portfolio’s investment adviser fee amounted to $811,992 or 0.75% of the Portfolio’s average daily net assets. Pursuant to a sub-advisory agreement, BMR pays Parametric Portfolio Associates LLC (Parametric), a majority-owned subsidiary of Eaton Vance Corp., a portion of its adviser fee for sub-advisory services provided to the Portfolio. The Portfolio invests its cash in Cash Reserves Fund. EVM does not currently receive a fee for advisory services provided to Cash Reserves Fund.
Trustees and officers of the Portfolio who are members of EVM’s or BMR’s organizations receive remuneration for their services to the Portfolio out of the investment adviser fee. Trustees of the Portfolio who are not affiliated with the investment adviser 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 year ended October 31, 2013, no significant amounts have been deferred. Certain officers and Trustees of the Portfolio are officers of the above organizations.
3 Purchases and Sales of Investments
Purchases and sales of investments, other than short-term obligations, aggregated $32,437,658 and $39,763,627, respectively, for the year ended October 31, 2013.
31 |
Tax-Managed International Equity Portfolio
October 31, 2013
Notes to Financial Statements — continued
4 Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of investments of the Portfolio at October 31, 2013, as determined on a federal income tax basis, were as follows:
Aggregate cost | $ | 95,583,272 | ||
Gross unrealized appreciation | $ | 19,828,259 | ||
Gross unrealized depreciation | (1,278,394 | ) | ||
Net unrealized appreciation | $ | 18,549,865 |
The net unrealized appreciation on foreign currency transactions at October 31, 2013 on a federal income tax basis was $75,974.
5 Line of Credit
The Portfolio participates with other portfolios and funds managed by EVM and its affiliates in a $750 million unsecured line of credit agreement with a group of banks. Borrowings are made by the Portfolio solely to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Interest is charged to the Portfolio based on its borrowings at an amount above either the Eurodollar rate or Federal Funds rate. In addition, a fee computed at an annual rate of 0.08% on the daily unused portion of the line of credit is allocated among the participating portfolios and funds at the end of each quarter. Because the line of credit is not available exclusively to the Portfolio, it may be unable to borrow some or all of its requested amounts at any particular time. The Portfolio did not have any significant borrowings or allocated fees during the year ended October 31, 2013.
6 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 Portfolio, 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.
7 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.
Ÿ | Level 1 – quoted prices in active markets for identical investments |
Ÿ | Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
Ÿ | 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.
32 |
Tax-Managed International Equity Portfolio
October 31, 2013
Notes to Financial Statements — continued
At October 31, 2013, the hierarchy of inputs used in valuing the Portfolio’s investments, which are carried at value, were as follows:
Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | ||||||||||||||||
Asia/Pacific | $ | — | $ | 32,238,933 | $ | — | $ | 32,238,933 | ||||||||
Developed Europe | — | 78,841,237 | — | 78,841,237 | ||||||||||||
Developed Middle East | 683,124 | 1,622,455 | — | 2,305,579 | ||||||||||||
Total Common Stocks | $ | 683,124 | $ | 112,702,625 | * | $ | — | $ | 113,385,749 | |||||||
Short-Term Investments | $ | — | $ | 747,388 | $ | — | $ | 747,388 | ||||||||
Total Investments | $ | 683,124 | $ | 113,450,013 | $ | — | $ | 114,133,137 |
* | 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. |
The Portfolio held no investments or other financial instruments as of October 31, 2012 whose fair value was determined using Level 3 inputs. At October 31, 2013, there were no investments transferred between Level 1 and Level 2 during the year then ended.
33 |
Tax-Managed International Equity Portfolio
October 31, 2013
Report of Independent Registered Public Accounting Firm
To the Trustees and Investors of Tax-Managed International Equity Portfolio:
We have audited the accompanying statement of assets and liabilities of Tax-Managed International Equity Portfolio (the “Portfolio”), including the portfolio of investments, as of October 31, 2013, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the supplementary data for each of the five years in the period then ended. These financial statements and supplementary data are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on these financial statements and supplementary data based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and supplementary data are free of material misstatement. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2013, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and supplementary data referred to above present fairly, in all material respects, the financial position of Tax-Managed International Equity Portfolio as of October 31, 2013, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the supplementary data for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 11, 2013
34 |
Parametric Tax-Managed International Equity Fund
October 31, 2013
Management and Organization
Fund Management. The Trustees of Eaton Vance Mutual Funds Trust (the Trust) and Tax-Managed International Equity Portfolio (the Portfolio) are responsible for the overall management and supervision of the Trust’s and Portfolio’s affairs. The Trustees and officers of the Trust and the Portfolio are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. Trustees and officers of the Trust and the Portfolio hold indefinite terms of office. The “Noninterested Trustees” consist of those Trustees who are not “interested persons” of the Trust and the Portfolio, as that term is defined under the 1940 Act. The business address of each Trustee and officer is Two International Place, Boston, Massachusetts 02110. As used below, “EVC” refers to Eaton Vance Corp., “EV” refers to Eaton Vance, Inc., “EVM” refers to Eaton Vance Management, “BMR” refers to Boston Management and Research and “EVD” refers to Eaton Vance Distributors, Inc. EVC and EV are the corporate parent and trustee, respectively, of EVM and BMR. EVD is the Fund’s principal underwriter, the Portfolio’s placement agent and a wholly-owned subsidiary of EVC. Each officer affiliated with Eaton Vance may hold a position with other Eaton Vance affiliates that is comparable to his or her position with EVM listed below. Each Trustee oversees 190 portfolios in the Eaton Vance Complex (including all master and feeder funds in a master feeder structure). Each officer serves as an officer of certain other Eaton Vance funds. Each Trustee and officer serves until his or her successor is elected.
Name and Year of Birth | Position(s) with the Trust and the Portfolio | Length of Service | Principal Occupation(s) and Directorships During Past Five Years and Other Relevant Experience | |||
Interested Trustee | ||||||
Thomas E. Faust Jr. 1958 | Trustee of the Trust and Portfolio and President of the Portfolio | Trustee of the Trust and Portfolio since 2007 and President of the Portfolio since 2013 | Chairman, Chief Executive Officer and President of EVC, Director and President of EV, Chief Executive Officer and President of EVM and BMR, and Director of EVD. Trustee and/or officer of 190 registered investment companies. Mr. Faust is an interested person because of his positions with EVM, BMR, EVD, EVC and EV, which are affiliates of the Trust and the Portfolio. Directorships in the Last Five Years.(1) Director of EVC and Hexavest Inc. | |||
Noninterested Trustees | ||||||
Scott E. Eston 1956 | Trustee | Since 2011 | Private investor. Formerly held various positions at Grantham, Mayo, Van Otterloo and Co., L.L.C. (investment management firm) (1997-2009), including Chief Operating Officer (2002-2009), Chief Financial Officer (1997-2009) and Chairman of the Executive Committee (2002-2008); President and Principal Executive Officer, GMO Trust (open-end registered investment company) (2006-2009). Former Partner, Coopers and Lybrand L.L.P. (now PricewaterhouseCoopers) (public accounting firm) (1987-1997). Directorships in the Last Five Years. None. | |||
Benjamin C. Esty 1963 | Trustee | Since 2005 | Roy and Elizabeth Simmons Professor of Business Administration and Finance Unit Head, Harvard University Graduate School of Business Administration. Directorships in the Last Five Years.(1) None. | |||
Allen R. Freedman 1940 | Trustee | Since 2007 | Private Investor. Former Chairman (2002-2004) and a Director (1983-2004) of Systems & Computer Technology Corp. (provider of software to higher education). Formerly, a Director of Loring Ward International (fund distributor) (2005-2007). Former Chairman and a Director of Indus International, Inc. (provider of enterprise management software to the power generating industry) (2005-2007). Former Chief Executive Officer of Assurant, Inc. (insurance provider) (1979-2000). Directorships in the Last Five Years.(1) Director of Stonemor Partners, L.P. (owner and operator of cemeteries). Formerly, Director of Assurant, Inc. (insurance provider) (1979-2011). | |||
William H. Park 1947 | Trustee | Since 2003 | Consultant and private investor. Formerly, Chief Financial Officer, Aveon Group L.P. (investment management firm) (2010-2011). Formerly, Vice Chairman, Commercial Industrial Finance Corp. (specialty finance company) (2006-2010). Formerly, President and Chief Executive Officer, Prizm Capital Management, LLC (investment management firm) (2002-2005). Formerly, Executive Vice President and Chief Financial Officer, United Asset Management Corporation (investment management firm) (1982-2001). Formerly, Senior Manager, Price Waterhouse (now PricewaterhouseCoopers) (an independent registered public accounting firm) (1972-1981). Directorships in the Last Five Years.(1) None. | |||
Ronald A. Pearlman 1940 | Trustee | Since 2003 | Professor of Law, Georgetown University Law Center. Formerly, Deputy Assistant Secretary (Tax Policy) and Assistant Secretary (Tax Policy), U.S. Department of the Treasury (1983-1985). Formerly, Chief of Staff, Joint Committee on Taxation, U.S. Congress (1988-1990). Directorships in the Last Five Years.(1) None. |
35 |
Parametric Tax-Managed International Equity Fund
October 31, 2013
Management and Organization — continued
Name and Year of Birth | Position(s) with the Trust and the Portfolio | Length of Service | Principal Occupation(s) and Directorships During Past Five Years and Other Relevant Experience | |||
Noninterested Trustees (continued) | ||||||
Helen Frame Peters 1948 | Trustee | Since 2008 | Professor of Finance, Carroll School of Management, Boston College. Formerly, Dean, Carroll School of Management, Boston College (2000-2002). Formerly, Chief Investment Officer, Fixed Income, Scudder Kemper Investments (investment management firm) (1998-1999). Formerly, Chief Investment Officer, Equity and Fixed Income, Colonial Management Associates (investment management firm) (1991-1998). Directorships in the Last Five Years.(1) Formerly, Director of BJ’s Wholesale Club, Inc. (wholesale club retailer) (2004-2011). Formerly, Trustee of SPDR Index Shares Funds and SPDR Series Trust (exchange traded funds) (2000-2009). Formerly, Director of Federal Home Loan Bank of Boston (a bank for banks) (2007-2009). | |||
Lynn A. Stout 1957 | Trustee | Since 1998 | Distinguished Professor of Corporate and Business Law, Jack G. Clarke Business Law Institute, Cornell University Law School. Formerly, the Paul Hastings Professor of Corporate and Securities Law (2006-2012) and Professor of Law (2001-2006), University of California at Los Angeles School of Law. Directorships in the Last Five Years.(1) None. | |||
Harriett Tee Taggart 1948 | Trustee | Since 2011 | Managing Director, Taggart Associates (a professional practice firm). Formerly, Partner and Senior Vice President, Wellington Management Company, LLP (investment management firm) (1983-2006). Directorships in the Last Five Years. Director of Albemarle Corporation (chemicals manufacturer) (since 2007) and The Hanover Group (specialty property and casualty insurance company) (since 2009). Formerly, Director of Lubrizol Corporation (specialty chemicals) (2007-2011). | |||
Ralph F. Verni 1943 | Chairman of the Board and Trustee | Chairman of the Board since 2007 and Trustee since 2005 | Consultant and private investor. Formerly, Chief Investment Officer (1982-1992), Chief Financial Officer (1988-1990) and Director (1982-1992), New England Life. Formerly, Chairperson, New England Mutual Funds (1982-1992). Formerly, President and Chief Executive Officer, State Street Management & Research (1992-2000). Formerly, Chairperson, State Street Research Mutual Funds (1992-2000). Formerly, Director, W.P. Carey, LLC (1998-2004) and First Pioneer Farm Credit Corp. (2002-2006). Directorships in the Last Five Years.(1) None. | |||
Principal Officers who are not Trustees | ||||||
Name and Year of Birth | Position(s) with the Trust and the Portfolio | Length of Service | Principal Occupation(s) During Past Five Years | |||
Payson F. Swaffield(2) 1956 | President of the Trust | Since 2013 | Vice President and Chief Income Investment Officer of EVM and BMR. | |||
Maureen A. Gemma 1960 | Vice President, Secretary and Chief Legal Officer | Vice President since 2011, Secretary since 2007 and Chief Legal Officer since 2008 | Vice President of EVM and BMR. | |||
James F. Kirchner(3) 1967 | Treasurer | Since 2013 | Vice President of EVM and BMR. | |||
Paul M. O’Neil 1953 | Chief Compliance Officer | Since 2004 | Vice President of EVM and BMR. |
(1) | During their respective tenures, the Trustees (except Mr. Eston and Ms. Taggart) also served as Board members of one or more of the following Eaton Vance funds (which operated in the years noted): Eaton Vance Credit Opportunities Fund (launched in 2005 and terminated in 2010); Eaton Vance Insured Florida Plus Municipal Bond Fund (launched in 2002 and terminated in 2009); and Eaton Vance National Municipal Income Trust (launched in 1998 and terminated in 2009). |
(2) | Prior to October 1, 2013, Mr. Swaffield was Vice President of the Trust since 2011. |
(3) | Prior to 2013, Mr. Kirchner served as Assistant Treasurer of the Trust and of the Portfolio since 2007. |
The SAI for the Fund includes additional information about the Trustees and officers of the Fund and the Portfolio and can be obtained without charge on Eaton Vance’s website at www.eatonvance.com or by calling 1-800-260-0761.
36 |
Eaton Vance Funds
IMPORTANT NOTICES
Privacy. The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy (“Privacy Policy”) with respect to nonpublic personal information about its customers:
Ÿ | Only such information received from you, through application forms or otherwise, and information about your Eaton Vance fund transactions will be collected. This may include information such as name, address, social security number, tax status, account balances and transactions. |
Ÿ | None of such information about you (or former customers) will be disclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to service your account). In the normal course of servicing a customer’s account, Eaton Vance may share information with unaffiliated third parties that perform various required services such as transfer agents, custodians and broker-dealers. |
Ÿ | Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information. |
Ÿ | We reserve the right to change our Privacy Policy at any time upon proper notification to you. Customers may want to review our Privacy Policy periodically for changes by accessing the link on our homepage: www.eatonvance.com. |
Our pledge of privacy applies to the following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance Investment Counsel, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management’s Real Estate Investment Group and Boston Management and Research. In addition, our Privacy Policy applies only to those Eaton Vance customers who are individuals and who have a direct relationship with us. If a customer’s account (i.e., fund shares) is held in the name of a third-party financial advisor/broker-dealer, it is likely that only such advisor’s privacy policies apply to the customer. This notice supersedes all previously issued privacy disclosures. For more information about Eaton Vance’s Privacy Policy, please call 1-800-262-1122.
Delivery of Shareholder Documents. The Securities and Exchange Commission (SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called “householding” and it helps eliminate duplicate mailings to shareholders. Eaton Vance, or your financial advisor, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial advisor, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-260-0761, or contact your financial advisor. Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial advisor.
Portfolio Holdings. Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) will file a schedule of portfolio holdings on Form N-Q with the SEC for the first and third quarters of each fiscal year. The Form N-Q will be available on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-260-0761 or in the EDGAR database on the SEC’s website at www.sec.gov. Form N-Q may also be reviewed and copied at the SEC’s public reference room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the public reference room).
Proxy Voting. From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds’ and Portfolios’ Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge, upon request, by calling 1-800-260-0761 and by accessing the SEC’s website at www.sec.gov.
37 |
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Investment Adviser of Tax-Managed International Equity Portfolio
Boston Management and Research
Two International Place
Boston, MA 02110
Sub-Adviser of Tax-Managed International Equity Portfolio
Parametric Portfolio Associates LLC
1918 Eighth Avenue, Suite 3100
Seattle, WA 98101
Administrator of Parametric Tax-Managed International Equity Fund
Eaton Vance Management
Two International Place
Boston, MA 02110
Principal Underwriter*
Eaton Vance Distributors, Inc.
Two International Place
Boston, MA 02110
(617) 482-8260
Custodian
State Street Bank and Trust Company
200 Clarendon Street
Boston, MA 02116
Transfer Agent
BNY Mellon Investment Servicing (US) Inc.
Attn: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02940-9653
(800) 260-0761
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116-5022
Fund Offices
Two International Place
Boston, MA 02110
* | FINRA BrokerCheck. Investors may check the background of their Investment Professional by contacting the Financial Industry Regulatory Authority (FINRA). FINRA BrokerCheck is a free tool to help investors check the professional background of current and former FINRA-registered securities firms and brokers. FINRA BrokerCheck is available by calling 1-800-289-9999 and at www.FINRA.org. The FINRA BrokerCheck brochure describing this program is available to investors at www.FINRA.org. |
038-12/13 | IGSRC |
Item 2. Code of Ethics
The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122.
Item 3. Audit Committee Financial Expert
The registrant’s Board has designated William H. Park, an independent trustee, as its audit committee financial expert. Mr. Park is a certified public accountant who is a consultant and private investor. Previously, he served as the Chief Financial Officer of Aveon Group, L.P. (an investment management firm), as the Vice Chairman of Commercial Industrial Finance Corp. (specialty finance company), as President and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm), as Executive Vice President and Chief Financial Officer of United Asset Management Corporation (an institutional investment management firm) and as a Senior Manager at Price Waterhouse (now PricewaterhouseCoopers) (an independent registered public accounting firm).
Item 4. Principal Accountant Fees and Services
(a)-(d)
The following table presents the aggregate fees billed to the registrant for the registrant’s fiscal years ended October 31, 2012 and October 31, 2013 by the registrant’s principal accountant, Deloitte & Touche LLP (“D&T”), for professional services rendered for the audit of the registrant’s annual financial statements and fees billed for other services rendered by D&T during such periods.
Fiscal Years Ended | 10/31/12 | 10/31/13 | ||||||
Audit Fees | $ | 28,090 | $ | 28,390 | ||||
Audit-Related Fees(1) | $ | 0 | $ | 0 | ||||
Tax Fees(2) | $ | 6,860 | $ | 7,890 | ||||
All Other Fees(3) | $ | 930 | $ | 0 | ||||
|
|
|
| |||||
Total | $ | 35,880 | $ | 36,280 | ||||
|
|
|
|
(1) | Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under the category of audit fees. |
(2) | Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning and specifically include fees for tax return preparation and other related tax compliance/planning matters. |
(3) | All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. |
(e)(1) The registrant’s audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant’s principal accountant (the “Pre-Approval Policies”). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the Audit Committee.
The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant’s audit committee at least annually. The registrant’s audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant’s principal accountant.
(e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant’s audit committee pursuant to the “de minimis exception” set forth in Rule 2-01 (c)(7)(i)(C) of Regulation S-X.
(f) Not applicable.
(g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed to the registrant by D&T for the registrant’s fiscal years ended October 31, 2012 and October 31, 2013; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed to the Eaton Vance organization by D&T for the same time periods.
Fiscal Years Ended | 10/31/12 | 10/31/13 | ||||||
Registrant | $ | 7,790 | $ | 7,890 | ||||
Eaton Vance(1) | $ | 566,619 | $ | 526,385 |
(1) | Certain entities that provide ongoing services to the registrant are subsidiaries of Eaton Vance Corp. |
(h) The registrant’s audit committee has considered whether the provision by the registrant’s principal accountant of non-audit services to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant’s independence.
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 second fiscal quarter of 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. 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 International Equity Portfolio | ||
By: | /s/ Thomas E. Faust Jr. | |
Thomas E. Faust Jr. | ||
President | ||
Date: | December 6, 2013 |
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: | December 6, 2013 |
By: | /s/ Thomas E. Faust Jr. | |
Thomas E. Faust Jr. | ||
President | ||
Date: | December 6, 2013 |