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, 2017
Date of Reporting Period
Item 1. Reports to Stockholders
Tax-Managed International Equity Portfolio
October 31, 2017
Portfolio of Investments
Common Stocks — 98.5% | ||||||||
Security | Shares | Value | ||||||
Australia — 7.7% |
| |||||||
AGL Energy, Ltd. | 16,349 | $ | 316,539 | |||||
Altium, Ltd. | 6,000 | 55,093 | ||||||
Alumina, Ltd. | 20,000 | 35,890 | ||||||
Amcor, Ltd. | 2,750 | 33,375 | ||||||
ARB Corp., Ltd. | 2,741 | 38,253 | ||||||
Aristocrat Leisure, Ltd. | 3,572 | 64,575 | ||||||
Asaleo Care, Ltd. | 27,800 | 31,528 | ||||||
Atlassian Corp. PLC, Class A(1) | 2,000 | 96,740 | ||||||
Aurizon Holdings, Ltd. | 7,700 | 30,559 | ||||||
AusNet Services | 86,700 | 117,569 | ||||||
Australian Pharmaceutical Industries, Ltd. | 30,804 | 35,558 | ||||||
Beach Energy, Ltd. | 43,095 | 32,239 | ||||||
Blackmores, Ltd. | 519 | 63,476 | ||||||
BlueScope Steel, Ltd. | 3,500 | 34,458 | ||||||
Boral, Ltd. | 11,300 | 62,007 | ||||||
Brambles, Ltd. | 20,697 | 150,079 | ||||||
Caltex Australia, Ltd. | 4,560 | 119,729 | ||||||
carsales.com, Ltd. | 7,072 | 74,266 | ||||||
Class, Ltd. | 12,536 | 27,643 | ||||||
Cleanaway Waste Management, Ltd. | 36,318 | 41,796 | ||||||
Coca-Cola Amatil, Ltd. | 14,900 | 93,023 | ||||||
Cochlear, Ltd. | 850 | 114,499 | ||||||
Commonwealth Bank of Australia | 3,589 | 213,492 | ||||||
CSL, Ltd. | 3,419 | 363,990 | ||||||
Dexus | 10,420 | 78,025 | ||||||
DuluxGroup, Ltd. | 5,657 | 31,949 | ||||||
Goodman Group | 6,746 | 43,254 | ||||||
GPT Group (The) | 11,738 | 45,835 | ||||||
GrainCorp, Ltd., Class A | 7,142 | 46,517 | ||||||
GWA Group, Ltd. | 11,241 | 21,947 | ||||||
Hansen Technologies, Ltd. | 14,633 | 37,998 | ||||||
Harvey Norman Holdings, Ltd. | 17,000 | 49,243 | ||||||
Incitec Pivot, Ltd. | 11,120 | 32,618 | ||||||
Integrated Research, Ltd. | 9,777 | 28,735 | ||||||
Investa Office Fund | 13,624 | 46,789 | ||||||
James Hardie Industries PLC CDI | 4,004 | 61,134 | ||||||
JB Hi-Fi, Ltd. | 3,464 | 60,812 | ||||||
Link Administration Holdings, Ltd. | 13,718 | 86,623 | ||||||
Macquarie Atlas Roads Group | 10,339 | 47,218 | ||||||
Metcash, Ltd. | 29,937 | 61,844 | ||||||
Mirvac Group | 41,842 | 77,339 | ||||||
Monash IVF Group, Ltd. | 20,105 | 24,014 | ||||||
National Australia Bank, Ltd. | 4,515 | 113,129 | ||||||
Navitas, Ltd. | 9,965 | 36,445 |
Security | Shares | Value | ||||||
Australia (continued) |
| |||||||
Newcrest Mining, Ltd. | 2,354 | $ | 40,248 | |||||
Oil Search, Ltd. | 13,639 | 77,311 | ||||||
Orica, Ltd. | 4,147 | 66,423 | ||||||
Qantas Airways, Ltd. | 11,500 | 54,276 | ||||||
REA Group, Ltd. | 730 | 40,475 | ||||||
Rio Tinto, Ltd. | 2,553 | 136,040 | ||||||
Scentre Group | 37,835 | 116,662 | ||||||
South32, Ltd. | 16,000 | 41,793 | ||||||
Southern Cross Media Group, Ltd. | 63,616 | 54,663 | ||||||
Spark Infrastructure Group | 66,000 | 128,483 | ||||||
Star Entertainment Group, Ltd. (The) | 9,459 | 41,710 | ||||||
Stockland | 22,834 | 79,141 | ||||||
Suncorp Group, Ltd. | 2,484 | 25,855 | ||||||
Super Retail Group, Ltd. | 4,935 | 29,380 | ||||||
Sydney Airport | 7,656 | 41,712 | ||||||
Tabcorp Holdings, Ltd. | 17,246 | 59,339 | ||||||
Tatts Group, Ltd. | 19,917 | 63,667 | ||||||
Technology One, Ltd. | 10,774 | 41,619 | ||||||
Telstra Corp., Ltd. | 108,271 | 293,846 | ||||||
Tox Free Solutions, Ltd. | 9,194 | 17,263 | ||||||
Transurban Group | 15,294 | 142,170 | ||||||
Vicinity Centres | 33,285 | 67,656 | ||||||
Washington H. Soul Pattinson & Co., Ltd. | 4,310 | 55,137 | ||||||
Wesfarmers, Ltd. | 9,028 | 289,174 | ||||||
Westpac Banking Corp. | 8,556 | 216,719 | ||||||
WiseTech Global, Ltd. | 4,806 | 42,971 | ||||||
Woodside Petroleum, Ltd. | 12,096 | 285,139 | ||||||
$ | 5,826,716 | |||||||
Austria — 1.0% |
| |||||||
ams AG | 868 | $ | 79,193 | |||||
ANDRITZ AG | 758 | 42,862 | ||||||
BUWOG AG | 1,234 | 35,570 | ||||||
CA Immobilien Anlagen AG | 1,563 | 44,567 | ||||||
Erste Group Bank AG | 1,664 | 71,427 | ||||||
EVN AG | 2,151 | 33,954 | ||||||
Lenzing AG | 182 | 24,637 | ||||||
Oesterreichische Post AG | 1,473 | 65,410 | ||||||
OMV AG | 1,960 | 117,626 | ||||||
Rhi Magnesita NV(1) | 859 | 38,114 | ||||||
S&T AG | 1,550 | 29,994 | ||||||
Telekom Austria AG | 4,400 | 41,193 | ||||||
Verbund AG | 4,533 | 110,080 | ||||||
Wienerberger AG | 1,390 | 35,664 | ||||||
$ | 770,291 | |||||||
19 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2017
Portfolio of Investments — continued
Security | Shares | Value | ||||||
Belgium — 2.0% |
| |||||||
Aedifica SA | 624 | $ | 59,475 | |||||
Ageas | 1,164 | 56,448 | ||||||
Anheuser-Busch InBev SA/NV | 1,477 | 181,111 | ||||||
Barco NV | 428 | 43,850 | ||||||
Bekaert SA | 1,080 | 51,086 | ||||||
bpost SA | 2,643 | 74,517 | ||||||
Cofinimmo | 400 | 50,747 | ||||||
Colruyt SA | 478 | 24,447 | ||||||
Econocom Group SA/NV | 5,752 | 44,269 | ||||||
Elia System Operator SA/NV | 500 | 29,003 | ||||||
Euronav SA | 2,460 | 20,387 | ||||||
Groupe Bruxelles Lambert SA | 721 | 77,440 | ||||||
KBC Group NV | 1,043 | 86,641 | ||||||
Proximus SA | 4,820 | 160,055 | ||||||
Retail Estates NV | 566 | 45,375 | ||||||
Solvay SA | 549 | 81,559 | ||||||
Telenet Group Holding NV(1) | 2,650 | 183,273 | ||||||
UCB SA | 2,340 | 170,342 | ||||||
Umicore SA | 1,431 | 63,952 | ||||||
$ | 1,503,977 | |||||||
Denmark — 1.9% |
| |||||||
Carlsberg A/S, Class B | 1,706 | $ | 194,896 | |||||
Chr. Hansen Holding A/S | 850 | 74,383 | ||||||
Coloplast A/S, Class B | 493 | 43,393 | ||||||
Danske Bank A/S | 4,227 | 161,317 | ||||||
DSV A/S | 504 | 38,972 | ||||||
ISS A/S | 813 | 34,429 | ||||||
Nets A/S(1)(2) | 2,166 | 55,291 | ||||||
Novo Nordisk A/S, Class B | 3,312 | 164,901 | ||||||
Novozymes A/S, Class B | 1,970 | 108,848 | ||||||
Orsted A/S(2) | 3,312 | 185,594 | ||||||
Pandora A/S | 1,843 | 174,028 | ||||||
Royal Unibrew A/S | 730 | 42,027 | ||||||
TDC A/S | 20,226 | 119,580 | ||||||
Vestas Wind Systems A/S | 658 | 58,091 | ||||||
$ | 1,455,750 | |||||||
Finland — 1.9% |
| |||||||
Amer Sports Oyj | 3,072 | $ | 76,433 | |||||
Citycon Oyj | 12,000 | 29,302 | ||||||
Elisa Oyj | 3,299 | 132,841 | ||||||
Fortum Oyj | 8,212 | 174,295 | ||||||
Huhtamaki Oyj | 736 | 31,350 | ||||||
Kemira Oyj | 2,727 | 38,423 |
Security | Shares | Value | ||||||
Finland (continued) |
| |||||||
Kesko Oyj, Class B | 1,695 | $ | 86,561 | |||||
Kone Oyj, Class B | 1,663 | 90,008 | ||||||
Neste Oyj | 3,648 | 203,089 | ||||||
Nokia Oyj | 21,840 | 107,407 | ||||||
Nokian Renkaat Oyj | 1,252 | 57,401 | ||||||
Orion Oyj, Class B | 2,195 | 89,962 | ||||||
Raisio Oyj, Class V | 7,000 | 28,935 | ||||||
Sampo Oyj, Class A | 2,829 | 148,041 | ||||||
Technopolis Oyj | 12,850 | 57,905 | ||||||
UPM-Kymmene Oyj | 1,915 | 57,512 | ||||||
Uponor Oyj | 1,630 | 32,813 | ||||||
Valmet Oyj | 1,377 | 26,698 | ||||||
$ | 1,468,976 | |||||||
France — 7.8% |
| |||||||
Air Liquide SA | 4,757 | $ | 605,680 | |||||
Airbus SE | 1,021 | 104,770 | ||||||
Alten SA | 634 | 55,485 | ||||||
Altran Technologies SA | 1,910 | 35,325 | ||||||
Atos SE | 567 | 88,064 | ||||||
AXA SA | 4,600 | 138,867 | ||||||
BNP Paribas SA | 3,858 | 301,115 | ||||||
Bouygues SA | 672 | 32,252 | ||||||
CNP Assurances | 2,759 | 64,181 | ||||||
Danone SA | 4,217 | 344,660 | ||||||
Dassault Systemes SE | 1,096 | 116,347 | ||||||
Engie SA | 24,589 | 415,605 | ||||||
Essilor International SA | 871 | 110,271 | ||||||
Eutelsat Communications SA | 985 | 24,672 | ||||||
Gecina SA | 539 | 87,546 | ||||||
Groupe Eurotunnel SE | 2,197 | 27,609 | ||||||
Hermes International | 176 | 91,363 | ||||||
ICADE | 757 | 66,155 | ||||||
Iliad SA | 301 | 75,135 | ||||||
Ingenico Group SA | 754 | 73,220 | ||||||
L’Oreal SA | 875 | 194,743 | ||||||
Lagardere SCA | 1,361 | 44,819 | ||||||
Legrand SA | 560 | 41,558 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 690 | 205,802 | �� | |||||
Mercialys SA | 2,000 | 38,955 | ||||||
Nexity SA | 1,000 | 61,462 | ||||||
Orange SA | 26,441 | 434,364 | ||||||
Orpea | 620 | 74,281 | ||||||
Rubis SCA | 846 | 53,089 | ||||||
Safran SA | 474 | 49,923 | ||||||
Sanofi | 3,558 | 336,895 |
20 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2017
Portfolio of Investments — continued
Security | Shares | Value | ||||||
France (continued) |
| |||||||
SCOR SE | 1,284 | $ | 53,303 | |||||
Societe BIC SA | 422 | 44,559 | ||||||
Sodexo SA | 251 | 31,933 | ||||||
Sopra Steria Group | 268 | 50,275 | ||||||
Suez | 5,207 | 91,573 | ||||||
Thales SA | 600 | 62,528 | ||||||
Total SA | 9,410 | 524,495 | ||||||
Ubisoft Entertainment SA(1) | 1,067 | 81,412 | ||||||
Unibail-Rodamco SE | 949 | 237,504 | ||||||
Vinci SA | 1,776 | 174,008 | ||||||
Vivendi SA | 5,190 | 128,877 | ||||||
Wendel SA | 200 | 33,732 | ||||||
$ | 5,908,412 | |||||||
Germany — 7.8% |
| |||||||
adidas AG | 218 | $ | 48,523 | |||||
Allianz SE | 1,913 | 446,607 | ||||||
alstria office REIT AG | 5,110 | 72,643 | ||||||
Aurubis AG | 569 | 46,627 | ||||||
BASF SE | 3,330 | 364,147 | ||||||
Bayer AG | 2,283 | 296,970 | ||||||
Bechtle AG | 400 | 32,014 | ||||||
Beiersdorf AG | 1,213 | 136,451 | ||||||
Brenntag AG | 492 | 27,914 | ||||||
Continental AG | 340 | 86,528 | ||||||
Daimler AG | 2,800 | 233,761 | ||||||
Deutsche Boerse AG | 570 | 59,032 | ||||||
Deutsche Lufthansa AG | 975 | 31,325 | ||||||
Deutsche Post AG | 2,500 | 114,600 | ||||||
Deutsche Telekom AG | 28,838 | 522,179 | ||||||
Deutsche Wohnen AG, Bearer Shares | 4,814 | 206,041 | ||||||
E.ON SE | 35,060 | 415,266 | ||||||
Freenet AG | 1,200 | 40,185 | ||||||
Fresenius Medical Care AG & Co. KGaA | 705 | 68,259 | ||||||
Fresenius SE & Co. KGaA | 1,209 | 101,213 | ||||||
GEA Group AG | 1,196 | 57,776 | ||||||
Grand City Properties SA | 4,854 | 104,484 | ||||||
Henkel AG & Co. KGaA | 523 | 65,962 | ||||||
Henkel AG & Co. KGaA, PFC Shares | 2,602 | 365,363 | ||||||
Innogy SE(2) | 2,800 | 130,217 | ||||||
KWS Saat SE | 85 | 35,812 | ||||||
LEG Immobilien AG | 1,088 | 110,829 | ||||||
Linde AG | 1,079 | 233,038 | ||||||
MAN SE | 432 | 47,836 | ||||||
Merck KGaA | 412 | 44,205 | ||||||
MTU Aero Engines AG | 316 | 53,474 |
Security | Shares | Value | ||||||
Germany (continued) |
| |||||||
Muenchener Rueckversicherungs-Gesellschaft AG | 660 | $ | 148,171 | |||||
ProSiebenSat.1 Media SE | 1,000 | 35,224 | ||||||
SAP SE | 2,683 | 306,566 | ||||||
Scout24 AG(2) | 1,500 | 60,130 | ||||||
Siemens AG | 1,922 | 276,062 | ||||||
Software AG | 800 | 40,664 | ||||||
TLG Immobilien AG | 2,100 | 48,711 | ||||||
TUI AG | 2,680 | 48,404 | ||||||
Uniper SE | 2,844 | 79,912 | ||||||
United Internet AG | 1,400 | 88,788 | ||||||
Volkswagen AG | 330 | 61,627 | ||||||
Wirecard AG | 366 | 36,362 | ||||||
Zalando SE(1)(2) | 820 | 41,280 | ||||||
$ | 5,871,182 | |||||||
Hong Kong — 3.8% |
| |||||||
ASM Pacific Technology, Ltd. | 5,000 | $ | 72,952 | |||||
China Cord Blood Corp.(1) | 5,000 | 60,650 | ||||||
China Regenerative Medicine International, Ltd.(1) | 1,025,000 | 30,759 | ||||||
Chow Sang Sang Holdings International, Ltd. | 13,000 | 28,352 | ||||||
CK Asset Holdings, Ltd. | 5,500 | 45,264 | ||||||
CK Infrastructure Holdings, Ltd. | 13,000 | 113,192 | ||||||
CLP Holdings, Ltd. | 23,500 | 239,182 | ||||||
Esprit Holdings, Ltd.(1) | 27,800 | 16,821 | ||||||
First Pacific Co., Ltd. | 106,000 | 80,768 | ||||||
G-Resources Group, Ltd.(1) | 1,212,000 | 16,003 | ||||||
Hang Lung Group, Ltd. | 6,000 | 21,082 | ||||||
Hang Seng Bank, Ltd. | 6,800 | 161,180 | ||||||
HC International, Inc. | 31,000 | 24,456 | ||||||
Henderson Land Development Co., Ltd. | 6,000 | 39,155 | ||||||
HK Electric Investments & HK Electric Investments, Ltd.(2) | 34,000 | 31,337 | ||||||
HKT Trust and HKT, Ltd. | 116,000 | 141,552 | ||||||
Hong Kong & China Gas Co., Ltd. | 41,000 | 77,721 | ||||||
Hong Kong Exchanges and Clearing, Ltd. | 6,400 | 178,331 | ||||||
Hongkong Land Holdings, Ltd. | 13,000 | 94,287 | ||||||
Hysan Development Co., Ltd. | 7,000 | 33,821 | ||||||
I-CABLE Communications, Ltd.(1) | 3,065 | 96 | ||||||
Jardine Matheson Holdings, Ltd. | 2,400 | 153,748 | ||||||
Jardine Strategic Holdings, Ltd. | 3,000 | 125,835 | ||||||
Johnson Electric Holdings, Ltd. | 7,875 | 31,773 | ||||||
Kerry Properties, Ltd. | 10,000 | 45,003 | ||||||
KuangChi Science, Ltd.(1) | 120,000 | 45,545 | ||||||
Landing International Development, Ltd.(1) | 1,920,000 | 53,206 | ||||||
Li & Fung, Ltd. | 80,000 | 40,319 | ||||||
Link REIT | 11,500 | 96,684 | ||||||
MGM China Holdings, Ltd. | 31,200 | 70,384 |
21 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2017
Portfolio of Investments — continued
Security | Shares | Value | ||||||
Hong Kong (continued) |
| |||||||
MTR Corp., Ltd. | 11,500 | $ | 66,671 | |||||
NWS Holdings, Ltd. | 17,000 | 34,408 | ||||||
RM Group Holdings, Ltd.(1) | 32,000 | 27,438 | ||||||
Shangri-La Asia, Ltd. | 22,000 | 43,803 | ||||||
Sino Land Co., Ltd. | 22,000 | 37,918 | ||||||
SJM Holdings, Ltd. | 60,000 | 51,582 | ||||||
Swire Pacific, Ltd., Class A | 4,000 | 39,528 | ||||||
Techtronic Industries Co., Ltd. | 19,000 | 111,534 | ||||||
Television Broadcasts, Ltd. | 14,600 | 55,216 | ||||||
Town Health International Medical Group, Ltd. | 266,000 | 25,558 | ||||||
Vitasoy International Holdings, Ltd. | 28,000 | 64,743 | ||||||
VTech Holdings, Ltd. | 7,100 | 100,938 | ||||||
Yue Yuen Industrial Holdings, Ltd. | 10,500 | 40,220 | ||||||
$ | 2,869,015 | |||||||
Ireland — 2.0% |
| |||||||
Bank of Ireland Group PLC(1) | 25,434 | $ | 199,281 | |||||
C&C Group PLC | 10,000 | 34,233 | ||||||
Cairn Homes PLC(1) | 18,600 | 38,622 | ||||||
CRH PLC | 4,400 | 165,581 | ||||||
DCC PLC | 1,740 | 165,010 | ||||||
Grafton Group PLC | 3,790 | 41,408 | ||||||
Hibernia REIT PLC | 44,450 | 76,336 | ||||||
ICON PLC(1) | 1,512 | 179,716 | ||||||
Irish Residential Properties REIT PLC | 42,500 | 73,081 | ||||||
Kerry Group PLC, Class A | 1,947 | 196,071 | ||||||
Paddy Power Betfair PLC | 1,739 | 178,087 | ||||||
Smurfit Kappa Group PLC | 1,300 | 38,780 | ||||||
UDG Healthcare PLC | 8,000 | 98,229 | ||||||
$ | 1,484,435 | |||||||
Israel — 1.9% |
| |||||||
Amot Investments, Ltd. | 5,499 | $ | 32,455 | |||||
Azrieli Group, Ltd. | 1,066 | 60,224 | ||||||
Bank Hapoalim B.M. | 15,152 | 107,279 | ||||||
Bezeq The Israeli Telecommunication Corp., Ltd. | 112,262 | 167,729 | ||||||
Check Point Software Technologies, Ltd.(1) | 525 | 61,798 | ||||||
Delek Automotive Systems, Ltd. | 4,964 | 37,299 | ||||||
Delta-Galil Industries, Ltd. | 2,301 | 75,257 | ||||||
Elbit Systems, Ltd. | 1,014 | 150,492 | ||||||
Frutarom Industries, Ltd. | 2,095 | 172,530 | ||||||
Israel Discount Bank, Ltd., Series A(1) | 10,120 | 26,883 | ||||||
Jerusalem Oil Exploration(1) | 620 | 33,182 | ||||||
Kenon Holdings, Ltd.(1) | 672 | 11,552 | ||||||
Melisron, Ltd. | 729 | 38,142 |
Security | Shares | Value | ||||||
Israel (continued) |
| |||||||
Mizrahi Tefahot Bank, Ltd. | 1,469 | $ | 26,520 | |||||
Nice, Ltd. | 490 | 40,782 | ||||||
Oil Refineries, Ltd. | 139,185 | 71,602 | ||||||
Orbotech, Ltd.(1) | 716 | 32,019 | ||||||
Paz Oil Co., Ltd. | 464 | 75,772 | ||||||
Reit 1, Ltd. | 7,407 | 29,701 | ||||||
Shufersal, Ltd. | 14,250 | 90,560 | ||||||
Teva Pharmaceutical Industries, Ltd. ADR | 9,267 | 127,885 | ||||||
$ | 1,469,663 | |||||||
Italy — 4.3% |
| |||||||
Amplifon SpA | 6,312 | $ | 95,881 | |||||
Ansaldo STS SpA(1) | 2,606 | 35,964 | ||||||
Assicurazioni Generali SpA | 4,184 | 76,148 | ||||||
Atlantia SpA | 3,094 | 100,866 | ||||||
Beni Stabili SpA SIIQ | 54,219 | 47,970 | ||||||
Brembo SpA | 2,325 | 38,381 | ||||||
Buzzi Unicem SpA | 2,282 | 63,530 | ||||||
Cementir Holding SpA | 5,300 | 44,976 | ||||||
CIR SpA | 19,905 | 29,920 | ||||||
Datalogic SpA | 845 | 33,529 | ||||||
Davide Campari-Milano SpA | 18,866 | 151,055 | ||||||
De’Longhi SpA | 1,200 | 39,332 | ||||||
Ei Towers SpA | 2,683 | 156,843 | ||||||
Enel SpA | 48,562 | 301,165 | ||||||
ENI SpA | 15,950 | 260,751 | ||||||
EXOR NV | 1,016 | 65,132 | ||||||
Ferrari NV | 574 | 68,730 | ||||||
Infrastrutture Wireless Italiane SpA(2) | 33,089 | 226,144 | ||||||
International Game Technology PLC | 2,116 | 49,726 | ||||||
Interpump Group SpA | 778 | 26,187 | ||||||
Intesa Sanpaolo SpA | 51,117 | 171,850 | ||||||
Italmobiliare SpA | 1,360 | 36,598 | ||||||
Leonardo SpA | 4,673 | 80,665 | ||||||
Luxottica Group SpA | 1,065 | 61,059 | ||||||
Moncler SpA | 1,030 | 29,240 | ||||||
Parmalat SpA | 9,525 | 36,059 | ||||||
Poste Italiane SpA(2) | 5,564 | 40,653 | ||||||
Prada SpA | 6,900 | 23,799 | ||||||
Prysmian SpA | 1,409 | 48,483 | ||||||
Recordati SpA | 4,110 | 191,003 | ||||||
Reply SpA | 996 | 52,934 | ||||||
Salvatore Ferragamo SpA | 941 | 24,696 | ||||||
Snam SpA | 16,776 | 85,656 | ||||||
STMicroelectronics NV | 12,434 | 292,873 | ||||||
Terna Rete Elettrica Nazionale SpA | 12,961 | 78,180 |
22 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2017
Portfolio of Investments — continued
Security | Shares | Value | ||||||
Italy (continued) |
| |||||||
UnipolSai Assicurazioni SpA | 20,058 | $ | 45,641 | |||||
Yoox Net-A-Porter Group SpA(1) | 800 | 29,883 | ||||||
$ | 3,241,502 | |||||||
Japan — 15.8% |
| |||||||
Activia Properties, Inc. | 12 | $ | 46,958 | |||||
Advance Residence Investment Corp. | 12 | 28,209 | ||||||
Aeon Mall Co., Ltd. | 3,500 | 62,586 | ||||||
Air Water, Inc. | 2,000 | 38,383 | ||||||
Aisin Seiki Co., Ltd. | 1,000 | 51,802 | ||||||
Ajinomoto Co., Inc. | 2,100 | 42,245 | ||||||
ANA Holdings, Inc. | 1,100 | 42,279 | ||||||
Anritsu Corp. | 3,000 | 28,248 | ||||||
Asahi Group Holdings, Ltd. | 1,500 | 68,488 | ||||||
Asahi Intecc Co., Ltd. | 500 | 28,848 | ||||||
Asahi Kasei Corp. | 6,000 | 72,658 | ||||||
Astellas Pharma, Inc. | 8,900 | 118,449 | ||||||
Bandai Namco Holdings, Inc. | 1,300 | 44,548 | ||||||
Bridgestone Corp. | 900 | 42,993 | ||||||
Canon, Inc. | 3,800 | 142,755 | ||||||
Central Japan Railway Co. | 500 | 90,823 | ||||||
Chiba Bank, Ltd. (The) | 4,000 | 30,662 | ||||||
Chugai Pharmaceutical Co., Ltd. | 1,500 | 71,515 | ||||||
Chugoku Electric Power Co., Inc. (The) | 4,500 | 50,176 | ||||||
Citizen Watch Co., Ltd. | 7,100 | 52,199 | ||||||
Concordia Financial Group, Ltd. | 11,700 | 61,964 | ||||||
Credit Saison Co., Ltd. | 1,400 | 28,189 | ||||||
Daicel Corp. | 3,400 | 42,451 | ||||||
Daido Steel Co., Ltd. | 700 | 44,352 | ||||||
Daikin Industries, Ltd. | 500 | 55,255 | ||||||
Daishi Bank, Ltd. (The) | 900 | 44,072 | ||||||
Daito Trust Construction Co., Ltd. | 600 | 104,901 | ||||||
Daiwa House Industry Co., Ltd. | 3,900 | 142,946 | ||||||
Daiwa House REIT Investment Corp. | 23 | 53,747 | ||||||
Daiwa Securities Group, Inc. | 7,000 | 43,888 | ||||||
Denso Corp. | 1,000 | 55,074 | ||||||
Dentsu, Inc. | 1,000 | 42,774 | ||||||
East Japan Railway Co. | 600 | 58,188 | ||||||
Eisai Co., Ltd. | 1,500 | 83,485 | ||||||
FamilyMart UNY Holdings Co., Ltd. | 1,400 | 79,572 | ||||||
Fancl Corp. | 3,600 | 94,979 | ||||||
FANUC Corp. | 400 | 93,530 | ||||||
Fast Retailing Co., Ltd. | 200 | 66,915 | ||||||
Frontier Real Estate Investment Corp. | 8 | 31,325 | ||||||
FUJIFILM Holdings Corp. | 1,000 | 40,908 | ||||||
Fukuoka Financial Group, Inc. | 7,000 | 36,128 |
Security | Shares | Value | ||||||
Japan (continued) |
| |||||||
GLP J-Reit | 50 | $ | 50,121 | |||||
Gunma Bank, Ltd. (The) | 5,000 | 32,189 | ||||||
Hankyu Hanshin Holdings, Inc. | 1,000 | 38,987 | ||||||
Hirose Electric Co., Ltd. | 300 | 45,131 | ||||||
Hiroshima Bank, Ltd. (The) | 3,000 | 25,400 | ||||||
Hisamitsu Pharmaceutical Co., Inc. | 900 | 49,553 | ||||||
Hokuhoku Financial Group, Inc. | 1,500 | 24,725 | ||||||
Hulic Co., Ltd. | 4,000 | 41,264 | ||||||
Idemitsu Kosan Co., Ltd. | 2,600 | 75,998 | ||||||
Ito En, Ltd. | 1,400 | 49,019 | ||||||
ITOCHU Corp. | 3,300 | 57,805 | ||||||
Iyo Bank, Ltd. (The) | 4,600 | 39,710 | ||||||
Japan Airlines Co., Ltd. | 1,400 | 47,918 | ||||||
Japan Exchange Group, Inc. | 2,100 | 37,860 | ||||||
Japan Hotel REIT Investment Corp. | 63 | 41,712 | ||||||
Japan Prime Realty Investment Corp. | 11 | 35,379 | ||||||
Japan Real Estate Investment Corp. | 13 | 60,946 | ||||||
Japan Retail Fund Investment Corp. | 31 | 55,014 | ||||||
Japan Tobacco, Inc. | 3,200 | 105,921 | ||||||
JXTG Holdings, Inc. | 52,800 | 272,648 | ||||||
Kajima Corp. | 4,000 | 41,486 | ||||||
Kakaku.com, Inc. | 4,000 | 54,924 | ||||||
Kamigumi Co., Ltd. | 1,500 | 35,908 | ||||||
Kansai Electric Power Co., Inc. (The) | 8,600 | 117,769 | ||||||
Kansai Paint Co., Ltd. | 2,300 | 59,117 | ||||||
Kao Corp. | 2,100 | 126,914 | ||||||
KDDI Corp. | 22,300 | 594,131 | ||||||
Kenedix Office Investment Corp. | 6 | 32,144 | ||||||
Keyence Corp. | 200 | 111,045 | ||||||
Kikkoman Corp. | 1,700 | 58,345 | ||||||
Kintetsu Group Holdings Co., Ltd. | 800 | 30,762 | ||||||
Kirin Holdings Co., Ltd. | 3,200 | 76,812 | ||||||
Kuraray Co., Ltd. | 2,500 | 49,236 | ||||||
Kyocera Corp. | 1,100 | 73,576 | ||||||
KYORIN Holdings, Inc. | 2,800 | 57,506 | ||||||
Kyowa Hakko Kirin Co., Ltd. | 2,000 | 36,918 | ||||||
Kyushu Electric Power Co., Inc. | 4,800 | 54,749 | ||||||
Lawson, Inc. | 300 | 19,590 | ||||||
Leopalace21 Corp. | 4,200 | 31,362 | ||||||
Lion Corp. | 2,100 | 40,409 | ||||||
LIXIL Group Corp. | 1,500 | 41,312 | ||||||
M3, Inc. | 1,200 | 35,792 | ||||||
Makita Corp. | 1,000 | 41,909 | ||||||
Marubeni Corp. | 7,000 | 46,935 | ||||||
Maruichi Steel Tube, Ltd. | 1,200 | 36,662 | ||||||
Megmilk Snow Brand Co., Ltd. | 1,400 | 39,189 |
23 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2017
Portfolio of Investments — continued
Security | Shares | Value | ||||||
Japan (continued) |
| |||||||
MEIJI Holdings Co., Ltd. | 500 | $ | 40,875 | |||||
Miraca Holdings, Inc. | 1,300 | 60,485 | ||||||
Mitsubishi Motors Corp. | 6,600 | 52,852 | ||||||
Mitsui & Co., Ltd. | 3,900 | 58,244 | ||||||
Mizuho Financial Group, Inc. | 75,500 | 137,174 | ||||||
Mori Hills REIT Investment Corp. | 25 | 29,170 | ||||||
MS&AD Insurance Group Holdings, Inc. | 1,800 | 61,150 | ||||||
NEC Corp. | 1,500 | 41,159 | ||||||
NH Foods, Ltd. | 2,000 | 57,530 | ||||||
Nikon Corp. | 4,100 | 77,863 | ||||||
Nintendo Co., Ltd. | 400 | 155,185 | ||||||
Nippon Accommodations Fund, Inc. | 8 | 30,836 | ||||||
Nippon Building Fund, Inc. | 14 | 67,594 | ||||||
Nippon Electric Glass Co., Ltd. | 1,000 | 40,829 | ||||||
Nippon Kayaku Co., Ltd. | 2,000 | 31,753 | ||||||
Nippon Prologis REIT, Inc. | 26 | 54,668 | ||||||
Nippon Shinyaku Co., Ltd. | 600 | 42,521 | ||||||
Nippon Shokubai Co., Ltd. | 600 | 45,259 | ||||||
Nippon Steel & Sumitomo Metal Corp. | 3,000 | 71,926 | ||||||
Nippon Telegraph & Telephone Corp. | 3,400 | 164,382 | ||||||
Nissan Chemical Industries, Ltd. | 1,700 | 63,409 | ||||||
Nissan Motor Co., Ltd. | 4,100 | 39,874 | ||||||
Nisshin Seifun Group, Inc. | 2,400 | 42,179 | ||||||
Nissin Foods Holdings Co., Ltd. | 1,200 | 75,560 | ||||||
Nitori Holdings Co., Ltd. | 400 | 58,133 | ||||||
Nomura Real Estate Master Fund, Inc. | 43 | 53,782 | ||||||
Nomura Research Institute, Ltd. | 1,200 | 50,874 | ||||||
NTT Data Corp. | 5,500 | 64,057 | ||||||
NTT DoCoMo, Inc. | 17,500 | 423,828 | ||||||
Okinawa Electric Power Co., Inc. (The) | 2,090 | 47,751 | ||||||
Omron Corp. | 700 | 39,225 | ||||||
Ono Pharmaceutical Co., Ltd. | 2,500 | 57,298 | ||||||
Oriental Land Co., Ltd. | 700 | 55,988 | ||||||
ORIX Corp. | 3,900 | 67,055 | ||||||
Orix JREIT, Inc. | 34 | 46,715 | ||||||
Osaka Gas Co., Ltd. | 7,600 | 147,205 | ||||||
Otsuka Holdings Co., Ltd. | 3,100 | 129,501 | ||||||
Rakuten, Inc. | 3,000 | 32,102 | ||||||
Recruit Holdings Co., Ltd. | 3,200 | 78,456 | ||||||
Relo Group, Inc. | 1,200 | 29,709 | ||||||
Resona Holdings, Inc. | 14,200 | 76,756 | ||||||
Ricoh Co., Ltd. | 4,000 | 37,119 | ||||||
Rinnai Corp. | 600 | 51,409 | ||||||
San-Ai Oil Co., Ltd. | 4,000 | 47,774 | ||||||
SECOM Co., Ltd. | 500 | 38,071 | ||||||
Sekisui House, Ltd. | 4,000 | 74,794 |
Security | Shares | Value | ||||||
Japan (continued) |
| |||||||
Shimano, Inc. | 300 | $ | 41,052 | |||||
Shin-Etsu Chemical Co., Ltd. | 1,400 | 147,646 | ||||||
Shionogi & Co., Ltd. | 1,100 | 59,221 | ||||||
Shizuoka Bank, Ltd. (The) | 5,000 | 48,658 | ||||||
Showa Shell Sekiyu K.K. | 7,000 | 82,581 | ||||||
Sompo Holdings, Inc. | 1,600 | 64,312 | ||||||
Sumitomo Corp. | 4,900 | 70,874 | ||||||
Sumitomo Electric Industries, Ltd. | 1,900 | 32,348 | ||||||
Sumitomo Metal Mining Co., Ltd. | 2,000 | 78,903 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 4,100 | 164,257 | ||||||
Suntory Beverage & Food, Ltd. | 900 | 41,411 | ||||||
Suzuki Motor Corp. | 1,000 | 54,773 | ||||||
T&D Holdings, Inc. | 2,400 | 37,442 | ||||||
Taiheiyo Cement Corp. | 1,500 | 59,953 | ||||||
Taisho Pharmaceutical Holdings Co., Ltd. | 600 | 45,694 | ||||||
Takeda Pharmaceutical Co., Ltd. | 3,600 | 202,986 | ||||||
TEIJIN, Ltd. | 2,400 | 50,797 | ||||||
Terumo Corp. | 2,500 | 104,176 | ||||||
Toho Gas Co., Ltd. | 800 | 22,367 | ||||||
Tohoku Electric Power Co., Inc. | 6,300 | 82,649 | ||||||
Tokio Marine Holdings, Inc. | 2,700 | 116,390 | ||||||
Tokyo Electron, Ltd. | 400 | 70,432 | ||||||
Tokyo Gas Co., Ltd. | 9,200 | 229,500 | ||||||
Tokyu Corp. | 2,000 | 30,254 | ||||||
Toppan Printing Co., Ltd. | 4,000 | 40,695 | ||||||
Toray Industries, Inc. | 9,000 | 91,095 | ||||||
Toshiba Corp.(1) | 18,000 | 52,039 | ||||||
Tosoh Corp. | 2,500 | 53,952 | ||||||
Toyo Ink SC Holdings Co., Ltd. | 7,000 | 41,224 | ||||||
Toyo Suisan Kaisha, Ltd. | 1,000 | 38,470 | ||||||
Toyobo Co., Ltd. | 1,800 | 34,672 | ||||||
Toyota Motor Corp. | 5,100 | 316,333 | ||||||
Trend Micro, Inc. | 1,000 | 53,624 | ||||||
Ube Industries, Ltd. | 1,700 | 52,224 | ||||||
United Urban Investment Corp. | 36 | 51,790 | ||||||
West Japan Railway Co. | 800 | 56,413 | ||||||
Yahoo! Japan Corp. | 11,200 | 50,074 | ||||||
Yakult Honsha Co., Ltd. | 600 | 49,607 | ||||||
Yamato Holdings Co., Ltd. | 2,000 | 40,892 | ||||||
Yamato Kogyo Co., Ltd. | 1,000 | 26,749 | ||||||
Yamazaki Baking Co., Ltd. | 2,000 | 36,000 | ||||||
Yaskawa Electric Corp. | 1,000 | 35,831 | ||||||
Zeon Corp. | 3,000 | 39,941 | ||||||
$ | 11,941,649 | |||||||
24 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2017
Portfolio of Investments — continued
Security | Shares | Value | ||||||
Netherlands — 3.9% |
| |||||||
Aalberts Industries NV | 1,153 | $ | 56,855 | |||||
ABN AMRO Group NV(2) | 1,800 | 55,592 | ||||||
Accell Group | 1,483 | 45,291 | ||||||
Akzo Nobel NV | 1,981 | 178,846 | ||||||
Altice NV, Class B(1) | 2,034 | 38,349 | ||||||
AMG Advanced Metallurgical Group NV | 637 | 30,487 | ||||||
ASM International NV | 820 | 54,952 | ||||||
ASML Holding NV | 1,793 | 323,510 | ||||||
ASR Nederland NV | 1,620 | 66,411 | ||||||
Cimpress NV(1) | 600 | 65,484 | ||||||
Corbion NV | 1,009 | 33,714 | ||||||
Eurocommercial Properties NV | 1,255 | 52,257 | ||||||
Gemalto NV | 831 | 32,887 | ||||||
GrandVision NV(2) | 1,280 | 31,946 | ||||||
IMCD Group NV | 840 | 52,831 | ||||||
ING Groep NV | 16,339 | 301,936 | ||||||
InterXion Holding NV(1) | 1,208 | 64,495 | ||||||
Koninklijke Ahold Delhaize NV | 4,518 | 85,007 | ||||||
Koninklijke KPN NV | 47,300 | 162,753 | ||||||
Koninklijke Philips NV | 3,713 | 151,316 | ||||||
Koninklijke Vopak NV | 1,452 | 62,847 | ||||||
NN Group NV | 1,302 | 54,525 | ||||||
Philips Lighting NV(2) | 1,400 | 53,061 | ||||||
PostNL NV | 8,000 | 34,096 | ||||||
QIAGEN NV(1) | 2,618 | 88,820 | ||||||
RELX NV | 4,504 | 101,686 | ||||||
TKH Group NV | 800 | 53,872 | ||||||
TomTom NV(1) | 3,382 | 38,530 | ||||||
Unilever NV | 7,925 | 460,363 | ||||||
Wolters Kluwer NV | 2,003 | 98,172 | ||||||
$ | 2,930,891 | |||||||
New Zealand — 1.0% |
| |||||||
A2 Milk Co., Ltd.(1) | 11,400 | $ | 67,682 | |||||
Air New Zealand, Ltd. | 10,500 | 23,721 | ||||||
Auckland International Airport, Ltd. | 12,240 | 52,169 | ||||||
Contact Energy, Ltd. | 17,100 | 67,301 | ||||||
Fisher & Paykel Healthcare Corp., Ltd. | 3,630 | 32,925 | ||||||
Fletcher Building, Ltd. | 12,248 | 61,782 | ||||||
Goodman Property Trust | 27,739 | 24,876 | ||||||
Heartland Bank, Ltd. | 35,752 | 46,480 | ||||||
Kiwi Property Group, Ltd. | 28,800 | 26,122 | ||||||
Precinct Properties New Zealand, Ltd. | 27,851 | 24,687 | ||||||
Ryman Healthcare, Ltd. | 3,670 | 23,364 | ||||||
SKYCITY Entertainment Group, Ltd. | 14,241 | 37,911 | ||||||
Spark New Zealand, Ltd. | 27,540 | 69,387 |
Security | Shares | Value | ||||||
New Zealand (continued) |
| |||||||
Summerset Group Holdings, Ltd. | 7,300 | $ | 24,330 | |||||
Trade Me, Ltd. | 8,490 | 26,219 | ||||||
Xero, Ltd.(1) | 4,010 | 94,446 | ||||||
Z Energy, Ltd. | 13,924 | 70,229 | ||||||
$ | 773,631 | |||||||
Norway — 1.9% |
| |||||||
Atea ASA | 6,274 | $ | 79,149 | |||||
Austevoll Seafood ASA | 4,763 | 47,675 | ||||||
Borregaard ASA | 1,881 | 18,129 | ||||||
DNB ASA | 8,378 | 161,690 | ||||||
Entra ASA(2) | 6,540 | 90,010 | ||||||
Europris ASA(2) | 9,810 | 44,650 | ||||||
Gjensidige Forsikring ASA | 1,701 | 32,011 | ||||||
Golar LNG, Ltd. | 1,000 | 21,130 | ||||||
Kongsberg Gruppen ASA | 3,498 | 63,850 | ||||||
Marine Harvest ASA | 3,300 | 64,447 | ||||||
Nordic Nanovector ASA(1) | 2,000 | 20,484 | ||||||
Nordic Semiconductor ASA(1) | 6,600 | 33,092 | ||||||
Salmar ASA | 646 | 19,260 | ||||||
Schibsted ASA, Class B | 3,350 | 78,615 | ||||||
SpareBank 1 SMN | 3,485 | 36,197 | ||||||
Statoil ASA | 7,438 | 151,122 | ||||||
Telenor ASA | 8,446 | 179,340 | ||||||
Tomra Systems ASA | 5,900 | 82,366 | ||||||
XXL ASA(2) | 3,700 | 39,901 | ||||||
Yara International ASA | 3,528 | 167,554 | ||||||
$ | 1,430,672 | |||||||
Portugal — 0.9% |
| |||||||
CTT-Correios de Portugal SA | 11,700 | $ | 68,886 | |||||
EDP-Energias de Portugal SA | 23,100 | 82,380 | ||||||
Galp Energia SGPS SA, Class B | 9,466 | 175,992 | ||||||
Jeronimo Martins SGPS SA | 7,890 | 143,354 | ||||||
Navigator Co. SA (The) | 19,411 | 98,996 | ||||||
NOS SGPS SA | 22,214 | 133,096 | ||||||
Pharol SGPS SA(1) | 43,046 | 21,354 | ||||||
$ | 724,058 | |||||||
Singapore — 1.9% |
| |||||||
Ascendas Real Estate Investment Trust | 23,500 | $ | 47,250 | |||||
CapitaLand Commercial Trust, Ltd. | 20,500 | 26,112 | ||||||
CapitaLand Mall Trust | 15,800 | 23,423 | ||||||
ComfortDelGro Corp., Ltd. | 14,100 | 20,903 | ||||||
DBS Group Holdings, Ltd. | 6,700 | 111,880 |
25 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2017
Portfolio of Investments — continued
Security | Shares | Value | ||||||
Singapore (continued) |
| |||||||
Ezion Holdings, Ltd.(1)(3) | 160,000 | $ | 18,499 | |||||
Flex, Ltd.(1) | 7,457 | 132,735 | ||||||
Genting Singapore PLC | 118,500 | 106,066 | ||||||
Global Logistic Properties, Ltd. | 10,300 | 25,090 | ||||||
Hutchison Port Holdings Trust | 44,000 | 18,920 | ||||||
IGG, Inc. | 20,000 | 26,852 | ||||||
Keppel Infrastructure Trust | 95,400 | 38,840 | ||||||
Mapletree Commercial Trust | 29,000 | 33,076 | ||||||
Raffles Medical Group, Ltd. | 38,400 | 31,828 | ||||||
Singapore Airlines, Ltd. | 4,000 | 30,145 | ||||||
Singapore Airport Terminal Services, Ltd. | 7,300 | 25,180 | ||||||
Singapore Exchange, Ltd. | 7,000 | 39,394 | ||||||
Singapore Post, Ltd. | 26,100 | 24,604 | ||||||
Singapore Press Holdings, Ltd. | 41,000 | 81,192 | ||||||
Singapore Technologies Engineering, Ltd. | 29,000 | 74,036 | ||||||
Singapore Telecommunications, Ltd. | 66,900 | 184,106 | ||||||
Suntec Real Estate Investment Trust | 27,000 | 38,653 | ||||||
United Overseas Bank, Ltd. | 4,500 | 81,296 | ||||||
Venture Corp., Ltd. | 3,600 | 51,461 | ||||||
Wilmar International, Ltd. | 75,000 | 186,634 | ||||||
$ | 1,478,175 | |||||||
Spain — 3.9% |
| |||||||
Abertis Infraestructuras SA | 3,252 | $ | 70,337 | |||||
Acerinox SA | 2,900 | 41,664 | ||||||
Aena SA(2) | 425 | 77,976 | ||||||
Almirall SA | 2,800 | 27,101 | ||||||
Amadeus IT Group SA | 3,750 | 254,433 | ||||||
Axiare Patrimonio SOCIMI SA | 2,208 | 41,409 | ||||||
Banco Bilbao Vizcaya Argentaria SA | 14,580 | 127,494 | ||||||
Banco de Sabadell SA | 23,300 | 46,652 | ||||||
Bankia SA | 3,739 | 17,843 | ||||||
Bankinter SA | 3,250 | 30,669 | ||||||
CaixaBank SA | 12,618 | 59,032 | ||||||
Cellnex Telecom SA(2) | 1,600 | 39,715 | ||||||
Cia de Distribucion Integral Logista Holdings SA | 1,300 | 30,456 | ||||||
Coca-Cola European Partners PLC | 4,800 | 196,128 | ||||||
Ebro Foods SA | 3,470 | 83,466 | ||||||
Enagas SA | 2,600 | 74,890 | ||||||
Endesa SA | 1,800 | 41,199 | ||||||
Ercros SA | 10,000 | 32,366 | ||||||
Gestamp Automocion SA(1)(2) | 4,749 | 31,551 | ||||||
Grifols SA | 4,678 | 146,398 | ||||||
Grifols SA ADR | 5,800 | 137,170 | ||||||
Hispania Activos Inmobiliarios SOCIMI SA | 2,750 | 47,452 | ||||||
Iberdrola SA | 23,859 | 192,805 |
Security | Shares | Value | ||||||
Spain (continued) |
| |||||||
Industria de Diseno Textil SA | 6,502 | $ | 243,032 | |||||
Inmobiliaria Colonial Socimi SA | 12,069 | 114,903 | ||||||
Lar Espana Real Estate Socimi SA | 5,104 | 50,042 | ||||||
Neinor Homes SA(1)(2) | 1,425 | 29,333 | ||||||
Prosegur Cash SA(1)(2) | 10,000 | 32,605 | ||||||
Prosegur Cia de Seguridad SA | 4,500 | 34,341 | ||||||
Red Electrica Corp. SA | 1,572 | 34,808 | ||||||
Repsol SA | 12,635 | 236,772 | ||||||
Siemens Gamesa Renewable Energy SA | 3,710 | 53,794 | ||||||
Telefonica SA | 24,977 | 261,895 | ||||||
Tubacex SA(1) | 12,500 | 44,416 | ||||||
$ | 2,984,147 | |||||||
Sweden — 3.9% |
| |||||||
Alfa Laval AB | 2,000 | $ | 50,650 | |||||
Assa Abloy AB, Class B | 2,883 | 60,782 | ||||||
Attendo AB(2) | 2,648 | 31,138 | ||||||
Axfood AB | 2,772 | 50,123 | ||||||
BillerudKorsnas AB | 5,767 | 99,256 | ||||||
Bonava AB, Class B | 2,000 | 29,126 | ||||||
Capio AB(2) | 6,000 | 30,536 | ||||||
Castellum AB | 6,400 | 102,696 | ||||||
Catena Media PLC(1) | 3,525 | 32,732 | ||||||
Elekta AB, Class B | 17,600 | 169,244 | ||||||
Essity Aktiebolag, Class B(1) | 7,154 | 213,829 | ||||||
Fabege AB | 2,133 | 45,039 | ||||||
Getinge AB, Class B | 4,020 | 79,128 | ||||||
Hennes & Mauritz AB, Class B | 8,337 | 209,218 | ||||||
Hexpol AB | 9,658 | 97,684 | ||||||
Holmen AB, Class B | 649 | 31,898 | ||||||
Hufvudstaden AB, Class A | 4,938 | 81,256 | ||||||
Industrivarden AB, Class C | 2,456 | 63,111 | ||||||
Kindred Group PLC SDR | 3,604 | 46,024 | ||||||
Kungsleden AB | 6,500 | 46,383 | ||||||
Lundin Petroleum AB(1) | 6,164 | 145,009 | ||||||
Mycronic AB | 2,681 | 31,840 | ||||||
NetEnt AB | 2,500 | 19,813 | ||||||
Nordea Bank AB | 3,100 | 37,463 | ||||||
Securitas AB, Class B | 1,900 | 33,337 | ||||||
Skanska AB, Class B | 1,238 | 27,148 | ||||||
SKF AB, Class B | 2,244 | 52,148 | ||||||
Starbreeze AB(1) | 16,600 | 17,248 | ||||||
Svenska Cellulosa AB SCA, Class B | 9,048 | 84,960 | ||||||
Svenska Handelsbanken AB, Class A | 5,337 | 76,492 | ||||||
Swedbank AB, Class A | 4,442 | 110,240 | ||||||
Swedish Match AB | 1,540 | 58,013 |
26 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2017
Portfolio of Investments — continued
Security | Shares | Value | ||||||
Sweden (continued) |
| |||||||
Telefonaktiebolaget LM Ericsson, Class B | 32,761 | $ | 206,168 | |||||
Telia Co. AB | 67,805 | 313,833 | ||||||
Trelleborg AB, Class B | 1,700 | 42,098 | ||||||
Volvo AB | 3,350 | 66,351 | ||||||
Wihlborgs Fastigheter AB | 1,547 | 36,729 | ||||||
$ | 2,928,743 | |||||||
Switzerland — 7.6% |
| |||||||
Allreal Holding AG | 417 | $ | 69,697 | |||||
ALSO Holding AG | 375 | 50,762 | ||||||
Ascom Holding AG | 1,636 | 37,451 | ||||||
Baloise Holding AG | 509 | 80,248 | ||||||
Burckhardt Compression Holdings AG | 140 | 41,708 | ||||||
Cembra Money Bank AG | 670 | 60,021 | ||||||
Clariant AG | 4,400 | 110,704 | ||||||
Compagnie Financiere Richemont SA, Class A | 6,227 | 574,044 | ||||||
Daetwyler Holding AG | 260 | 43,600 | ||||||
DKSH Holding AG | 352 | 29,530 | ||||||
dormakaba Holding AG | 30 | 29,693 | ||||||
Ems-Chemie Holding AG | 178 | 116,692 | ||||||
Flughafen Zurich AG | 187 | 40,668 | ||||||
Geberit AG | 233 | 105,491 | ||||||
Georg Fischer AG | 32 | 39,426 | ||||||
Givaudan SA | 143 | 319,360 | ||||||
Helvetia Holding AG | 85 | 45,695 | ||||||
Inficon Holding AG | 86 | 53,415 | ||||||
Julius Baer Group, Ltd. | 800 | 47,318 | ||||||
Komax Holding AG | 194 | 55,533 | ||||||
Kuehne & Nagel International AG | 665 | 116,186 | ||||||
Landis+Gyr Group AG(1) | 700 | 47,641 | ||||||
Mobimo Holding AG | 139 | 35,124 | ||||||
Nestle SA | 9,540 | 802,681 | ||||||
Novartis AG | 4,450 | 367,033 | ||||||
Panalpina Welttransport Holding AG | 330 | 45,350 | ||||||
Pargesa Holding SA | 850 | 71,180 | ||||||
Partners Group Holding AG | 59 | 39,683 | ||||||
Roche Holding AG PC | 1,904 | 440,073 | ||||||
Schindler Holding AG PC | 257 | 58,238 | ||||||
SGS SA | 46 | 113,599 | ||||||
Sika AG, Bearer Shares | 35 | 259,051 | ||||||
Sulzer AG | 480 | 61,492 | ||||||
Swatch Group AG (The) | 1,112 | 83,819 | ||||||
Swatch Group AG (The), Bearer Shares | 442 | 173,239 | ||||||
Swiss Life Holding AG | 109 | 37,885 | ||||||
Swiss Prime Site AG | 1,391 | 118,777 | ||||||
Swiss Re AG | 2,119 | 199,420 |
Security | Shares | Value | ||||||
Switzerland (continued) |
| |||||||
Swisscom AG | 516 | $ | 260,696 | |||||
Temenos Group AG | 1,500 | 173,207 | ||||||
Valiant Holding AG | 270 | 27,794 | ||||||
Valora Holding AG | 105 | 33,650 | ||||||
Zehnder Group AG | 691 | 25,352 | ||||||
Zurich Insurance Group AG | 620 | 189,202 | ||||||
$ | 5,731,428 | |||||||
United Kingdom — 15.6% |
| |||||||
Antofagasta PLC | 7,900 | $ | 100,122 | |||||
AstraZeneca PLC | 4,636 | 313,676 | ||||||
Aveva Group PLC | 2,545 | 85,264 | ||||||
Aviva PLC | 15,804 | 106,020 | ||||||
Babcock International Group PLC | 3,446 | 37,157 | ||||||
BAE Systems PLC | 15,161 | 119,428 | ||||||
Bellway PLC | 1,375 | 66,668 | ||||||
Berkeley Group Holdings PLC | 1,125 | 55,902 | ||||||
BHP Billiton PLC | 10,660 | 193,006 | ||||||
Big Yellow Group PLC | 7,156 | 73,938 | ||||||
British American Tobacco PLC | 5,825 | 376,352 | ||||||
Bunzl PLC | 1,400 | 43,611 | ||||||
Cairn Energy PLC(1) | 15,590 | 43,779 | ||||||
Carnival PLC | 1,559 | 102,782 | ||||||
Cineworld Group PLC | 5,166 | 45,579 | ||||||
Close Brothers Group PLC | 1,265 | 23,331 | ||||||
Cobham PLC(1) | 11,321 | 20,894 | ||||||
Compass Group PLC | 5,483 | 120,376 | ||||||
Cranswick PLC | 994 | 40,661 | ||||||
Croda International PLC | 1,357 | 75,415 | ||||||
Daily Mail & General Trust PLC, Class A | 2,268 | 20,888 | ||||||
Dignity PLC | 1,253 | 40,338 | ||||||
Direct Line Insurance Group PLC | 12,400 | 61,201 | ||||||
easyJet PLC | 2,278 | 40,514 | ||||||
Elementis PLC | 6,330 | 23,904 | ||||||
Essentra PLC | 5,799 | 40,998 | ||||||
Experian PLC | 8,507 | 179,228 | ||||||
Ferguson PLC | 1,410 | 98,601 | ||||||
Fidessa Group PLC | 1,027 | 31,053 | ||||||
FirstGroup PLC(1) | 13,353 | 19,507 | ||||||
Fresnillo PLC | 2,137 | 36,958 | ||||||
G4S PLC | 13,501 | 50,378 | ||||||
GlaxoSmithKline PLC | 37,061 | 665,146 | ||||||
Grainger PLC | 21,884 | 80,934 | ||||||
Great Portland Estates PLC | 10,225 | 84,466 | ||||||
Greene King PLC | 2,038 | 14,644 | ||||||
Halma PLC | 4,457 | 69,934 |
27 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2017
Portfolio of Investments — continued
Security | Shares | Value | ||||||
United Kingdom (continued) |
| |||||||
Hammerson PLC | 17,653 | $ | 122,886 | |||||
Howden Joinery Group PLC | 5,263 | 28,662 | ||||||
HSBC Holdings PLC | 44,206 | 431,677 | ||||||
Imperial Brands PLC | 3,489 | 142,252 | ||||||
Informa PLC | 7,317 | 67,727 | ||||||
Inmarsat PLC | 15,165 | 125,089 | ||||||
Intertek Group PLC | 1,447 | 104,243 | ||||||
John Wood Group PLC | 5,609 | 53,038 | ||||||
Johnson Matthey PLC | 1,560 | 70,037 | ||||||
Just Eat PLC(1) | 8,400 | 87,024 | ||||||
Kcom Group PLC | 18,722 | 26,723 | ||||||
Keller Group PLC | 1,779 | 22,131 | ||||||
Kingfisher PLC | 14,750 | 61,325 | ||||||
Land Securities Group PLC | 14,128 | 181,457 | ||||||
Legal & General Group PLC | 20,937 | 74,234 | ||||||
Lloyds Banking Group PLC | 141,652 | 128,398 | ||||||
LondonMetric Property PLC | 32,609 | 76,350 | ||||||
Marston’s PLC | 12,099 | 17,130 | ||||||
Merlin Entertainments PLC(2) | 8,625 | 43,386 | ||||||
Micro Focus International PLC | 5,281 | 185,492 | ||||||
Mimecast, Ltd.(1) | 1,100 | 34,969 | ||||||
Mitie Group PLC | 5,571 | 17,530 | ||||||
Moneysupermarket.com Group PLC | 16,319 | 70,410 | ||||||
National Grid PLC | 49,757 | 598,948 | ||||||
NCC Group PLC | 10,809 | 33,010 | ||||||
NEPI Rockcastle PLC | 1,887 | 26,269 | ||||||
Next PLC | 1,135 | 74,191 | ||||||
Paragon Banking Group PLC | 4,937 | 31,157 | ||||||
Pearson PLC | 6,802 | 63,515 | ||||||
Pennon Group PLC | 12,493 | 131,758 | ||||||
Phoenix Group Holdings | 2,631 | 26,445 | ||||||
Playtech PLC | 4,633 | 60,538 | ||||||
Provident Financial PLC | 887 | 10,978 | ||||||
QinetiQ Group PLC | 8,311 | 26,940 | ||||||
Randgold Resources, Ltd. | 1,173 | 115,268 | ||||||
Reckitt Benckiser Group PLC | 2,232 | 199,690 | ||||||
RELX PLC | 3,873 | 89,121 | ||||||
Rentokil Initial PLC | 15,781 | 70,373 | ||||||
Rightmove PLC | 1,155 | 63,720 | ||||||
Rio Tinto PLC | 4,969 | 234,838 | ||||||
Rolls-Royce Holdings PLC | 6,692 | 86,481 | ||||||
Rolls-Royce Holdings PLC, Class C | 307,832 | 409 | ||||||
Royal Dutch Shell PLC, Class A | 19,351 | 609,165 | ||||||
Royal Dutch Shell PLC, Class B | 11,298 | 363,765 | ||||||
Royal Mail PLC | 6,900 | 34,287 | ||||||
RPC Group PLC | 7,000 | 87,602 |
Security | Shares | Value | ||||||
United Kingdom (continued) |
| |||||||
RSA Insurance Group PLC | 7,955 | $ | 66,427 | |||||
Sage Group PLC (The) | 21,278 | 210,622 | ||||||
Segro PLC | 20,124 | 145,277 | ||||||
Severn Trent PLC | 5,571 | 156,207 | ||||||
Shaftesbury PLC | 7,730 | 101,709 | ||||||
Sky PLC(1) | 7,199 | 90,162 | ||||||
St. James’s Place PLC | 4,626 | 72,304 | ||||||
Standard Life Aberdeen PLC | 14,339 | 81,822 | ||||||
Stobart Group, Ltd. | 10,700 | 40,162 | ||||||
TalkTalk Telecom Group PLC | 36,853 | 104,508 | ||||||
Tate & Lyle PLC | 7,007 | 60,192 | ||||||
Tritax Big Box REIT PLC | 37,589 | 73,542 | ||||||
UBM PLC | 2,425 | 22,655 | ||||||
Ultra Electronics Holdings PLC | 1,034 | 25,038 | ||||||
Unilever PLC | 4,757 | 269,598 | ||||||
UNITE Group PLC (The) | 9,181 | 85,768 | ||||||
United Utilities Group PLC | 14,877 | 164,593 | ||||||
Victrex PLC | 2,610 | 83,105 | ||||||
Vodafone Group PLC | 285,723 | 817,264 | ||||||
WH Smith PLC | 2,282 | 62,042 | ||||||
William Hill PLC | 6,621 | 22,720 | ||||||
Worldpay Group PLC(2) | 24,084 | 129,827 | ||||||
WPP PLC | 4,460 | 78,849 | ||||||
$ | 11,777,684 | |||||||
Total Common Stocks |
| $ | 74,570,997 | |||||
Rights(1) — 0.0%(4) | ||||||||
Security | Shares | Value | ||||||
Macquarie Atlas Roads Group | 1,561 | $ | 1,003 | |||||
Total Rights |
| $ | 1,003 | |||||
28 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2017
Portfolio of Investments — continued
Short-Term Investments — 0.3% | ||||||||
Description | Units | Value | ||||||
Eaton Vance Cash Reserves Fund, LLC, | 220,076 | $ | 220,098 | |||||
Total Short-Term Investments |
| $ | 220,098 | |||||
Total Investments — 98.8% |
| $ | 74,792,098 | |||||
Other Assets, Less Liabilities — 1.2% |
| $ | 888,314 | |||||
Net Assets — 100.0% |
| $ | 75,680,412 | |||||
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
(1) | Non-income producing security. |
(2) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be sold in certain transactions in reliance on an exemption from registration (normally to qualified institutional buyers). At October 31, 2017, the aggregate value of these securities is $1,531,873 or 2.0% of the Portfolio’s net assets. |
(3) | For fair value measurement disclosure purposes, security is categorized as Level 3 (see Note 7). |
(4) | Amount is less than 0.05%. |
(5) | 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, 2017. |
Currency Concentration of Portfolio | ||||||||
Currency | Percentage of Net Assets | Value | ||||||
Euro | 34.0 | % | $ | 25,739,109 | ||||
British Pound Sterling | 15.9 | 12,069,497 | ||||||
Japanese Yen | 15.8 | 11,941,649 | ||||||
Swiss Franc | 7.7 | 5,810,621 | ||||||
Australian Dollar | 7.6 | 5,730,979 | ||||||
Swedish Krona | 3.9 | 2,928,743 | ||||||
Hong Kong Dollar | 3.3 | 2,485,146 | ||||||
United States Dollar | 2.5 | 1,873,533 | ||||||
Danish Krone | 1.9 | 1,455,750 | ||||||
Norwegian Krone | 1.9 | 1,409,542 | ||||||
Singapore Dollar | 1.7 | 1,299,668 | ||||||
Israeli Shekel | 1.6 | 1,247,961 | ||||||
New Zealand Dollar | 1.0 | 773,631 | ||||||
South African Rand | 0.0 | (1) | 26,269 | |||||
Total Investments | 98.8 | % | $ | 74,792,098 | ||||
(1) | Amount is less than 0.05%. |
Sector Classification of Portfolio | ||||||||
Sector | Percentage of Net Assets | Value | ||||||
Financials | 10.9 | % | $ | 8,258,015 | ||||
Industrials | 10.6 | 8,008,400 | ||||||
Consumer Discretionary | 10.1 | 7,641,781 | ||||||
Consumer Staples | 10.1 | 7,637,211 | ||||||
Materials | 9.3 | 7,037,526 | ||||||
Information Technology | 9.1 | 6,855,137 | ||||||
Health Care | 9.0 | 6,812,092 | ||||||
Telecommunication Services | 8.3 | 6,260,650 | ||||||
Real Estate | 8.1 | 6,159,160 | ||||||
Utilities | 7.1 | 5,394,513 | ||||||
Energy | 5.9 | 4,507,515 | ||||||
Short-Term Investments | 0.3 | 220,098 | ||||||
Total Investments | 98.8 | % | $ | 74,792,098 | ||||
Abbreviations:
ADR | – | American Depositary Receipt | ||
CDI | – | CHESS Depositary Interest | ||
PC | – | Participation Certificate | ||
PFC Shares | – | Preference Shares | ||
SDR | – | Swedish Depositary Receipt |
29 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2017
Statement of Assets and Liabilities
Assets | October 31, 2017 | |||
Unaffiliated investments, at value (identified cost, $67,401,928) | $ | 74,572,000 | ||
Affiliated investment, at value (identified cost, $220,098) | 220,098 | |||
Foreign currency, at value (identified cost, $33,234) | 33,273 | |||
Dividends receivable | 118,454 | |||
Dividends receivable from affiliated investment | 185 | |||
Receivable for investments sold | 2,368,182 | |||
Tax reclaims receivable | 781,534 | |||
Total assets | $ | 78,093,726 | ||
Liabilities | ||||
Payable for investments purchased | $ | 2,317,150 | ||
Payable to affiliates: | ||||
Investment adviser fee | 31,983 | |||
Trustees’ fees | 374 | |||
Accrued expenses | 63,807 | |||
Total liabilities | $ | 2,413,314 | ||
Net Assets applicable to investors’ interest in Portfolio | $ | 75,680,412 | ||
Sources of Net Assets | ||||
Investors’ capital | $ | 68,527,551 | ||
Net unrealized appreciation | 7,152,861 | |||
Total | $ | 75,680,412 |
30 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2017
Statement of Operations
Investment Income | Year Ended October 31, 2017 | |||
Dividends (net of foreign taxes, $242,066) | $ | 2,063,387 | ||
Dividends from affiliated investment | 2,729 | |||
Total investment income | $ | 2,066,116 | ||
Expenses | ||||
Investment adviser fee | $ | 345,887 | ||
Trustees’ fees and expenses | 4,381 | |||
Custodian fee | 66,911 | |||
Legal and accounting services | 52,845 | |||
Miscellaneous | 2,904 | |||
Total expenses | $ | 472,928 | ||
Net investment income | $ | 1,593,188 | ||
Realized and Unrealized Gain (Loss) | ||||
Net realized gain (loss) — | ||||
Investment transactions | $ | 4,655,488 | ||
Investment transactions — affiliated investment | 4 | |||
Foreign currency transactions | 16,122 | |||
Net realized gain | $ | 4,671,614 | ||
Change in unrealized appreciation (depreciation) — | ||||
Investments | $ | 7,550,185 | ||
Investments — affiliated investment | (48 | ) | ||
Foreign currency | 9,441 | |||
Net change in unrealized appreciation (depreciation) | $ | 7,559,578 | ||
Net realized and unrealized gain | $ | 12,231,192 | ||
Net increase in net assets from operations | $ | 13,824,380 |
31 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2017
Statements of Changes in Net Assets
Year Ended October 31, | ||||||||
Increase (Decrease) in Net Assets | 2017 | 2016 | ||||||
From operations — | ||||||||
Net investment income | $ | 1,593,188 | $ | 1,479,903 | ||||
Net realized gain (loss) | 4,671,614 | (921,323 | ) | |||||
Net change in unrealized appreciation (depreciation) | 7,559,578 | (249,947 | ) | |||||
Net increase in net assets from operations | $ | 13,824,380 | $ | 308,633 | ||||
Capital transactions — | ||||||||
Contributions | $ | 4,732,173 | $ | 2,951,124 | ||||
Withdrawals | (8,271,174 | ) | (9,782,962 | ) | ||||
Net decrease in net assets from capital transactions | $ | (3,539,001 | ) | $ | (6,831,838 | ) | ||
Net increase (decrease) in net assets | $ | 10,285,379 | $ | (6,523,205 | ) | |||
Net Assets | ||||||||
At beginning of year | $ | 65,395,033 | $ | 71,918,238 | ||||
At end of year | $ | 75,680,412 | $ | 65,395,033 |
32 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2017
Financial Highlights
Year Ended October 31, | ||||||||||||||||||||
Ratios/Supplemental Data | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Ratios (as a percentage of average daily net assets): | ||||||||||||||||||||
Expenses(1) | 0.68 | % | 0.97 | % | 0.92 | % | 0.92 | % | 0.94 | % | ||||||||||
Net investment income | 2.30 | % | 2.19 | % | 2.06 | % | 2.55 | %(2) | 2.28 | % | ||||||||||
Portfolio Turnover | 26 | % | 14 | % | 11 | % | 53 | % | 30 | % | ||||||||||
Total Return | 22.05 | % | 0.74 | % | 0.31 | % | 1.30 | % | 21.20 | % | ||||||||||
Net assets, end of year (000’s omitted) | $ | 75,680 | $ | 65,395 | $ | 71,918 | $ | 111,032 | $ | 115,036 |
(1) | Excludes the effect of custody fee credits, if any, of less than 0.005%. Effective September 1, 2015, custody fee credits, which were earned on cash deposit balances, were discontinued by the custodian. |
(2) | Includes special dividends equal to 0.41% of average daily net assets. |
33 | See Notes to Financial Statements. |
Tax-Managed International Equity Portfolio
October 31, 2017
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, 2017, Parametric Tax-Managed International Equity Fund and Eaton Vance Tax-Managed Equity Asset Allocation Fund held an interest of 53.2% and 46.8%, 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 (U.S. GAAP). The Portfolio is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946.
A Investment Valuation — The following methodologies are used to determine the market value or fair value of investments.
Equity Securities. Equity securities listed on a U.S. securities exchange generally are valued at the last sale or closing price on the day of valuation or, if no sales took place on such date, at the mean between the closing bid and 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.
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). While Cash Reserves Fund is not a registered money market mutual fund, it conducts all of its investment activities in accordance with the requirements of Rule 2a-7 under the 1940 Act. Investments in Cash Reserves Fund are valued at the closing net asset value per unit on the valuation day. Cash Reserves Fund generally values its investment securities based on available market quotations provided by a third party pricing service.
Fair Valuation. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the 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. In consideration of recent decisions rendered by European courts, the Portfolio has filed additional tax reclaims for previously withheld taxes on dividends earned in certain European Union countries. These filings are subject to various administrative and judicial proceedings within these countries. Due to the uncertainty as to the ultimate resolution of these proceedings, the likelihood of receipt of these reclaims, and the potential timing of payment, no amounts are reflected in the financial statements for such outstanding reclaims. 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 losses and any other items of income, gain, loss, deduction or credit.
34 |
Tax-Managed International Equity Portfolio
October 31, 2017
Notes to Financial Statements — continued
As of October 31, 2017, 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 Foreign Currency Translation — Investment valuations, other assets, and liabilities initially expressed in foreign currencies are translated each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investment securities and income and expenses denominated in foreign currencies are translated into U.S. dollars based upon currency exchange rates in effect on the respective dates of such transactions. Recognized gains or losses on investment transactions attributable to changes in foreign currency exchange rates are recorded for financial statement purposes as net realized gains and losses on investments. That portion of unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.
F Use of Estimates — The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.
G Indemnifications — Under the 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 agreements between the Portfolio and BMR, the fee is computed at an annual rate of 0.50% of the Portfolio’s average daily net assets up to $1 billion and is payable monthly. On net assets of $1 billion or over, the annual fee is reduced. The fee reductions 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 vote of a majority of the holders of interest in the Portfolio. For the year ended October 31, 2017, the Portfolio’s investment adviser fee amounted to $345,887 or 0.50% 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 investment 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, 2017, 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 $17,693,687 and $19,291,431, respectively, for the year ended October 31, 2017.
4 Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of investments of the Portfolio at October 31, 2017, as determined on a federal income tax basis, were as follows:
Aggregate cost | $ | 68,012,906 | ||
Gross unrealized appreciation | $ | 11,421,914 | ||
Gross unrealized depreciation | (4,642,722 | ) | ||
Net unrealized appreciation | $ | 6,779,192 |
35 |
Tax-Managed International Equity Portfolio
October 31, 2017
Notes to Financial Statements — continued
5 Line of Credit
The Portfolio participates with other portfolios and funds managed by EVM and its affiliates in a $625 million unsecured line of credit agreement with a group of banks, which is in effect through October 30, 2018. 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 0.15% 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, 2017.
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.
• | Level 1 – quoted prices in active markets for identical investments |
• | Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments) |
In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
At October 31, 2017, 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 | $ | 290,125 | $ | 22,690,141 | $ | 18,499 | $ | 22,998,765 | ||||||||
Developed Europe | 986,322 | 49,116,247 | — | 50,102,569 | ||||||||||||
Developed Middle East | 221,702 | 1,247,961 | — | 1,469,663 | ||||||||||||
Total Common Stocks | $ | 1,498,149 | $ | 73,054,349 | ** | $ | 18,499 | $ | 74,570,997 | |||||||
Rights | $ | — | $ | 1,003 | $ | — | $ | 1,003 | ||||||||
Short-Term Investments | — | 220,098 | — | 220,098 | ||||||||||||
Total Investments | $ | 1,498,149 | $ | 73,275,450 | $ | 18,499 | $ | 74,792,098 |
* | None of the unobservable inputs for Level 3 assets, individually or collectively, had a material impact on the Portfolio. |
** | 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. |
Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended October 31, 2017 is not presented. At October 31, 2017, the value of investments transferred between Level 1 and Level 2 during the year then ended was not significant.
36 |
Tax-Managed International Equity Portfolio
October 31, 2017
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, 2017, 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 financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on these financial statements and financial highlights 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 financial highlights 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, 2017, 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 financial highlights referred to above present fairly, in all material respects, the financial position of Tax-Managed International Equity Portfolio as of October 31, 2017, 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 financial highlights 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 19, 2017
37 |
Parametric Tax-Managed International Equity Fund
October 31, 2017
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 176 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 | Trustee Since(1) | Principal Occupation(s) and Directorships During Past Five Years and Other Relevant Experience | |||
Interested Trustee | ||||||
Thomas E. Faust Jr. 1958 | Trustee | 2007 | 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 176 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.(2) Director of EVC and Hexavest Inc. (investment management firm). | |||
Noninterested Trustees | ||||||
Mark R. Fetting 1954 | Trustee | 2016 | Private investor. Formerly held various positions at Legg Mason, Inc. (investment management firm) (2000-2012), including President, Chief Executive Officer, Director and Chairman (2008-2012), Senior Executive Vice President (2004-2008) and Executive Vice President (2001-2004). Formerly, President of Legg Mason family of funds (2001-2008). Formerly, Division President and Senior Officer of Prudential Financial Group, Inc. and related companies (investment management firm) (1991-2000). Directorships in the Last Five Years. Formerly, Director and Chairman of Legg Mason, Inc. (2008-2012); Director/Trustee and Chairman of Legg Mason family of funds (14 funds) (2008-2012); and Director/Trustee of the Royce family of funds (35 funds) (2001-2012). | |||
Cynthia E. Frost 1961 | Trustee | 2014 | Private investor. Formerly, Chief Investment Officer of Brown University (university endowment) (2000-2012); Formerly, Portfolio Strategist for Duke Management Company (university endowment manager) (1995-2000); Formerly, Managing Director, Cambridge Associates (investment consulting company) (1989-1995); Formerly, Consultant, Bain and Company (management consulting firm) (1987-1989); Formerly, Senior Equity Analyst, BA Investment Management Company (1983-1985). Directorships in the Last Five Years. None. | |||
George J. Gorman 1952 | Trustee | 2014 | Principal at George J. Gorman LLC (consulting firm). Formerly, Senior Partner at Ernst & Young LLP (a registered public accounting firm) (1974-2009). Directorships in the Last Five Years. Formerly, Trustee of the BofA Funds Series Trust (11 funds) (2011-2014) and of the Ashmore Funds (9 funds) (2010-2014). | |||
Valerie A. Mosley 1960 | Trustee | 2014 | Chairwoman and Chief Executive Officer of Valmo Ventures (a consulting and investment firm). Former Partner and Senior Vice President, Portfolio Manager and Investment Strategist at Wellington Management Company, LLP (investment management firm) (1992-2012). Former Chief Investment Officer, PG Corbin Asset Management (1990-1992). Formerly worked in institutional corporate bond sales at Kidder Peabody (1986-1990). Directorships in the Last Five Years.(2) Director of Dynex Capital, Inc. (mortgage REIT) (since 2013). |
38 |
Parametric Tax-Managed International Equity Fund
October 31, 2017
Management and Organization — continued
Name and Year of Birth | Position(s) with the Trust and the Portfolio | Trustee Since(1) | Principal Occupation(s) and Directorships During Past Five Years and Other Relevant Experience | |||
Noninterested Trustees (continued) | ||||||
William H. Park 1947 | Chairperson of the Board and Trustee | 2016 (Chairperson); 2003 (Trustee) | Private investor. Formerly, Consultant (management and transactional) (2012-2014). 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) (a registered public accounting firm) (1972-1981). Directorships in the Last Five Years.(2) None. | |||
Helen Frame Peters 1948 | Trustee | 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.(2) 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). | |||
Susan J. Sutherland 1957 | Trustee | 2015 | Private investor. Formerly, Associate, Counsel and Partner at Skadden, Arps, Slate, Meagher & Flom LLP (law firm) (1982-2013). Directorships in the Last Five Years. Formerly, Director of Montpelier Re Holdings Ltd. (global provider of customized insurance and reinsurance products) (2013-2015). | |||
Harriett Tee Taggart 1948 | Trustee | 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.(2) 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). | |||
Scott E. Wennerholm 1959 | Trustee | 2016 | Trustee at Wheelock College (postsecondary institution) (since 2012). Formerly, Consultant at GF Parish Group (executive recruiting firm) (2016-2017). Formerly, Chief Operating Officer and Executive Vice President at BNY Mellon Asset Management (investment management firm) (2005-2011). Formerly, Chief Operating Officer and Chief Financial Officer at Natixis Global Asset Management (investment management firm) (1997-2004). Formerly, Vice President at Fidelity Investments Institutional Services (investment management firm) (1994-1997). Directorships in the Last Five Years. None. | |||
Principal Officers who are not Trustees | ||||||
Name and Year of Birth | Position(s) with the Trust and the Portfolio | Officer Since(3) | Principal Occupation(s) During Past Five Years | |||
Payson F. Swaffield 1956 | President of the Trust | 2003 | Vice President and Chief Income Investment Officer of EVM and BMR. Also Vice President of Calvert Research and Management (“CRM”). | |||
Edward J. Perkin 1972 | President of the Portfolio | 2014 | Chief Equity Investment Officer and Vice President of EVM and BMR since 2014. Formerly, Chief Investment Officer, International and Emerging Markets Equity, and Managing Director, Portfolio Manager, Europe, EAFE and Global at Goldman Sachs Asset Management (2002-2014). Also Vice President of CRM. | |||
Maureen A. Gemma 1960 | Vice President, Secretary and Chief Legal Officer | 2005 | Vice President of EVM and BMR. Also Vice President of CRM. |
39 |
Parametric Tax-Managed International Equity Fund
October 31, 2017
Management and Organization — continued
Name and Year of Birth | Position(s) with the Trust and the Portfolio | Officer Since(3) | Principal Occupation(s) During Past Five Years | |||
Principal Officers who are not Trustees (continued) | ||||||
James F. Kirchner 1967 | Treasurer | 2007 | Vice President of EVM and BMR. Also Vice President of CRM. | |||
Richard F. Froio 1968 | Chief Compliance Officer | 2017 | Vice President of EVM and BMR since 2017. Formerly Deputy Chief Compliance Officer (Adviser/Funds) and Chief Compliance Officer (Distribution) at PIMCO (2012-2017) and Managing Director at BlackRock/Barclays Global Investors (2009-2012). |
(1) | Year first appointed to serve as Trustee for a fund in the Eaton Vance family of funds. Each Trustee has served continuously since appointment unless indicated otherwise. |
(2) | During their respective tenures, the Trustees (except for Mmes. Frost and Sutherland and Messrs. Fetting, Gorman and Wennerholm) also served as Board members of one or more of the following funds (which operated in the years noted): eUnitsTM 2 Year U.S. Market Participation Trust: Upside to Cap / Buffered Downside (launched in 2012 and terminated in 2014); eUnitsTM 2 Year U.S. Market Participation Trust II: Upside to Cap / Buffered Downside (launched in 2012 and terminated in 2014); and Eaton Vance National Municipal Income Trust (launched in 1998 and terminated in 2009). However, Ms. Mosley did not serve as a Board member of eUnitsTM 2 Year U.S. Market Participation Trust: Upside to Cap / Buffered Downside (launched in 2012 and terminated in 2014). |
(3) | Year first elected to serve as officer of a fund in the Eaton Vance family of funds when the officer has served continuously. Otherwise, year of most recent election as an officer of a fund in the Eaton Vance family of funds. Titles may have changed since initial election. |
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.
40 |
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:
• | 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. |
• | 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. |
• | Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information. |
• | 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 (International) Limited, Eaton Vance Advisers International Ltd., 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 typically be effective within 30 days of receipt by Eaton Vance or your financial advisor. Separate statements will be generated for each separate account and will be householded as described above.
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.
41 |
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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
State Street Financial Center, One Lincoln Street
Boston, MA 02111
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. |
38 10.31.17
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. The registrant has amended the code of ethics as described in Form N-CSR during the period covered by this report to make clarifying changes consistent with Rule 21F-17 of the Securities Exchange Act of 1934, as amended. The registrant has not granted any waiver, including an implicit waiver, from a provision of the code of ethics as described in Form N-CSR during the period covered by this report.
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 private investor. Previously, he served as a consultant, 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
Rule 2-01(c)(1)(ii)(A) of Regulation S-X (the “Loan Rule”) prohibits an accounting firm, such as the Portfolio’s principal accountant, Deloitte & Touche LLP (“D&T”), from having certain financial relationships with their audit clients and affiliated entities. Specifically, the Loan Rule provides, in relevant part, that an accounting firm generally would not be independent if it or a “covered person” of the accounting firm (within the meaning of applicable SEC rules relating to auditor independence) receives a loan from a lender that is a “record or beneficial owner of more than ten percent of the audit client’s equity securities.” Based on information provided to the Audit Committee of the Board of Trustees (the “Audit Committee”) of the Eaton Vance family of funds by D&T, certain relationships between D&T and its affiliates (“Deloitte Entities”) and one or more lenders who are record owners of shares of one or more funds within the Eaton Vance family of funds (the “Funds”) implicate the Loan Rule, calling into question D&T’s independence with respect to the Funds. The Funds are providing this disclosure to explain the facts and circumstances as well as D&T’s conclusions concerning D&T’s objectivity and impartiality with respect to the audits of the Funds notwithstanding the existence of one or more breaches of the Loan Rule.
On June 20, 2016, the U.S. Securities and Exchange Commission (the “SEC”) issued no-action relief to another mutual fund complex (see Fidelity Management & Research Company et al., No-Action Letter (June 20, 2016) (the “No-Action Letter”)) related to an auditor independence issue arising under the Loan Rule. In the No-Action Letter, the SEC indicated that it would not recommend enforcement action against the fund group if the auditor is not in compliance with the Loan Rule provided that: (1) the auditor has complied with PCAOB Rule 3526(b)(1) and 3526(b)(2); (2) the auditor’s non-compliance under the Loan Rule is with respect to certain lending relationships; and (3) notwithstanding such non-compliance, the auditor has concluded that it is objective and impartial with respect to the issues encompassed within its engagement as auditor of the funds. The SEC has indicated that the no-action relief will expire 18 months from its issuance.
Based on information provided by D&T to the Audit Committee, the requirements of the No-Action Letter appear to be met with respect to D&T’s lending relationships described above. Among other things, D&T has advised the Audit Committee of its conclusion that the consequences of the breach of the Loan Rule have been satisfactorily addressed, that D&T’s objectivity and impartiality in the planning and conduct of the audits of the Fund’s financial statements has not been compromised and that, notwithstanding the breach, D&T is in a
position to continue as the auditor for the Funds and D&T does not believe any actions need to be taken with respect to previously issued reports by D&T. D&T has advised the Audit Committee that these conclusions were based in part on its consideration of the No-Action Letter and other relevant information communicated to the Audit Committee.
(a)-(d)
The following table presents the aggregate fees billed to the registrant for the registrant’s fiscal years ended October 31, 2016 and October 31, 2017 by 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 | 10/31/16 | 10/31/17 | ||||||
Audit Fees | $ | 30,590 | $ | 35,590 | ||||
Audit-Related Fees(1) | $ | 0 | $ | 0 | ||||
Tax Fees(2) | $ | 16,195 | $ | 16,438 | ||||
All Other Fees(3) | $ | 0 | $ | 0 | ||||
|
|
|
| |||||
Total | $ | 46,785 | $ | 52,028 | ||||
|
|
|
|
(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, 2016 and October 31, 2017; 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 | 10/31/16 | 10/31/17 | ||||||
Registrant | $ | 16,195 | $ | 16,438 | ||||
Eaton Vance(1) | $ | 56,434 | $ | 148,018 |
(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/ Edward J. Perkin | |
Edward J. Perkin | ||
President | ||
Date: | December 22, 2017 |
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 22, 2017 | |
By: | /s/ Edward J. Perkin | |
Edward J. Perkin | ||
President | ||
Date: | December 22, 2017 |