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: 811-10599
Tax-Managed Global Small-Cap 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
April 30, 2016
Date of Reporting Period
Item 1. Reports to Stockholders
Tax-Managed Global Small-Cap Portfolio
April 30, 2016
Portfolio of Investments (Unaudited)
Common Stocks — 97.5% | ||||||||
Security | Shares | Value | ||||||
Australia — 2.3% |
| |||||||
Ansell, Ltd. | 8,531 | $ | 128,760 | |||||
carsales.com, Ltd. | 12,018 | 107,046 | ||||||
Challenger, Ltd. | 14,067 | 95,155 | ||||||
Mirvac Group | 66,955 | 94,730 | ||||||
Regis Resources, Ltd. | 23,215 | 51,632 | ||||||
Super Retail Group, Ltd. | 11,934 | 76,335 | ||||||
$ | 553,658 | |||||||
Belgium — 0.6% |
| |||||||
Ackermans & van Haaren NV | 1,110 | $ | 144,695 | |||||
$ | 144,695 | |||||||
Canada — 4.0% |
| |||||||
CAE, Inc. | 17,101 | $ | 202,263 | |||||
Cogeco Communications, Inc. | 1,446 | 72,052 | ||||||
Dominion Diamond Corp. | 4,569 | 52,474 | ||||||
First Majestic Silver Corp.(1) | 5,700 | 60,693 | ||||||
Linamar Corp. | 1,400 | 60,622 | ||||||
North West Co., Inc. (The) | 3,987 | 88,625 | ||||||
OceanaGold Corp. | 28,910 | 103,456 | ||||||
Parkland Fuel Corp. | 4,428 | 84,452 | ||||||
PrairieSky Royalty, Ltd. | 3,735 | 78,647 | ||||||
Sandvine Corp. | 76,858 | 166,004 | ||||||
$ | 969,288 | |||||||
China — 0.8% |
| |||||||
TAL Education Group ADR(1) | 3,396 | $ | 196,493 | |||||
$ | 196,493 | |||||||
Denmark — 0.5% |
| |||||||
Royal Unibrew A/S | 2,460 | $ | 111,145 | |||||
$ | 111,145 | |||||||
Finland — 0.3% |
| |||||||
Amer Sports Oyj | 2,865 | $ | 84,815 | |||||
$ | 84,815 | |||||||
France — 2.0% |
| |||||||
Ipsen SA | 3,550 | $ | 214,629 | |||||
Metropole Television SA | 3,692 | 70,039 | ||||||
Nexity SA | 1,827 | 97,929 |
Security | Shares | Value | ||||||
France (continued) |
| |||||||
Rubis SCA | 1,236 | $ | 96,555 | |||||
$ | 479,152 | |||||||
Germany — 1.0% |
| |||||||
CTS Eventim AG & Co. KGaA | 2,219 | $ | 77,876 | |||||
Salzgitter AG | 2,149 | 72,844 | ||||||
Software AG | 2,578 | 98,692 | ||||||
$ | 249,412 | |||||||
Hong Kong — 0.9% |
| |||||||
Hysan Development Co., Ltd. | 28,633 | $ | 126,514 | |||||
Johnson Electric Holdings, Ltd. | 32,524 | 95,908 | ||||||
$ | 222,422 | |||||||
Ireland — 0.5% |
| |||||||
Kingspan Group PLC | 4,403 | $ | 116,036 | |||||
$ | 116,036 | |||||||
Israel — 0.5% |
| |||||||
Magic Software Enterprises, Ltd. | 17,917 | $ | 119,686 | |||||
$ | 119,686 | |||||||
Italy — 2.0% |
| |||||||
Banca Generali SpA | 6,984 | $ | 207,823 | |||||
Brembo SpA | 1,667 | 89,688 | ||||||
MARR SpA | 4,505 | 91,771 | ||||||
Moncler SpA | 5,965 | 96,954 | ||||||
$ | 486,236 | |||||||
Japan — 11.4% |
| |||||||
77 Bank, Ltd. (The) | 25,900 | $ | 90,866 | |||||
Ariake Japan Co., Ltd. | 2,400 | 132,966 | ||||||
Asahi Intecc Co., Ltd. | 2,700 | 129,893 | ||||||
Century Tokyo Leasing Corp. | 3,400 | 115,610 | ||||||
COLOPL, Inc. | 6,700 | 132,351 | ||||||
Daifuku Co., Ltd. | 7,500 | 134,136 | ||||||
Eiken Chemical Co., Ltd. | 7,900 | 144,640 | ||||||
FP Corp. | 5,000 | 221,157 | ||||||
GMO Internet, Inc. | 7,500 | 88,061 | ||||||
Hoshizaki Electric Co., Ltd. | 1,500 | 125,885 | ||||||
J. Front Retailing Co., Ltd. | 4,000 | 48,056 | ||||||
MISUMI Group, Inc. | 7,900 | 109,097 | ||||||
Morinaga & Co., Ltd. | 38,000 | 181,962 |
15 | See Notes to Financial Statements. |
Tax-Managed Global Small-Cap Portfolio
April 30, 2016
Portfolio of Investments (Unaudited) — continued
Security | Shares | Value | ||||||
Japan (continued) |
| |||||||
OYO Corp. | 10,400 | $ | 110,066 | |||||
Parco Co., Ltd. | 12,000 | 101,064 | ||||||
Penta-Ocean Construction Co., Ltd. | 25,300 | 113,934 | ||||||
Sac’s Bar Holdings, Inc. | 10,800 | 137,080 | ||||||
Sakata INX Corp. | 9,100 | 102,783 | ||||||
Sakata Seed Corp. | 8,300 | 209,737 | ||||||
Shinmaywa Industries, Ltd. | 14,200 | 97,314 | ||||||
Sun Frontier Fudousan Co., Ltd. | 10,700 | 98,937 | ||||||
Tosei Corp. | 23,000 | 161,050 | ||||||
$ | 2,786,645 | |||||||
Singapore — 0.6% |
| |||||||
Frasers Centrepoint Trust | 52,800 | $ | 76,500 | |||||
SIIC Environment Holdings, Ltd.(1) | 123,620 | 64,127 | ||||||
$ | 140,627 | |||||||
Spain — 0.5% |
| |||||||
Acciona SA | 1,048 | $ | 84,103 | |||||
Tecnicas Reunidas SA | 1,522 | 51,305 | ||||||
$ | 135,408 | |||||||
Sweden — 1.2% |
| |||||||
Boliden AB | 2,958 | $ | 51,737 | |||||
Indutrade AB | 4,120 | 231,171 | ||||||
$ | 282,908 | |||||||
Switzerland — 2.2% |
| |||||||
Belimo Holding AG | 35 | $ | 100,088 | |||||
Bucher Industries AG | 837 | 201,052 | ||||||
Temenos Group AG | 2,214 | 114,893 | ||||||
VZ Holding AG | 351 | 109,214 | ||||||
$ | 525,247 | |||||||
United Kingdom — 10.5% |
| |||||||
Beazley PLC | 24,365 | $ | 116,131 | |||||
Bellway PLC | 3,566 | 127,689 | ||||||
Bodycote PLC | 27,512 | 240,171 | ||||||
BTG PLC(1) | 14,008 | 121,447 | ||||||
DS Smith PLC | 30,106 | 167,910 | ||||||
Essentra PLC | 14,045 | 167,034 | ||||||
Halma PLC | 10,715 | 139,840 | ||||||
Hastings Group Holdings, Ltd.(2) | 39,889 | 102,450 | ||||||
Hikma Pharmaceuticals PLC | 8,526 | 274,884 | ||||||
Inchcape PLC | 6,078 | 60,288 | ||||||
John Wood Group PLC | 8,455 | 77,347 |
Security | Shares | Value | ||||||
United Kingdom (continued) |
| |||||||
Melrose Industries PLC | 7,887 | $ | 43,094 | |||||
Paysafe Group PLC(1) | 25,740 | 143,614 | ||||||
Regus PLC | 58,544 | 250,493 | ||||||
SIG PLC | 57,233 | 113,484 | ||||||
St. James’s Place PLC | 9,593 | 121,770 | ||||||
UNITE Group PLC (The) | 14,939 | 138,141 | ||||||
WH Smith PLC | 6,614 | 162,030 | ||||||
$ | 2,567,817 | |||||||
United States — 55.7% |
| |||||||
Acadia Realty Trust | 5,023 | $ | 169,275 | |||||
Ameris Bancorp | 5,329 | 167,331 | ||||||
AMERISAFE, Inc. | 3,334 | 179,636 | ||||||
AmSurg Corp.(1) | 3,123 | 252,901 | ||||||
Armstrong World Industries, Inc.(1) | 7,200 | 293,832 | ||||||
Balchem Corp. | 6,390 | 392,090 | ||||||
Bank of the Ozarks, Inc. | 4,295 | 177,383 | ||||||
BankUnited, Inc. | 3,792 | 130,824 | ||||||
Burlington Stores, Inc.(1) | 3,461 | 197,173 | ||||||
Cirrus Logic, Inc.(1) | 8,058 | 290,894 | ||||||
Compass Minerals International, Inc. | 1,489 | 111,615 | ||||||
CSG Systems International, Inc. | 4,629 | 205,435 | ||||||
CubeSmart | 5,455 | 161,523 | ||||||
Cypress Semiconductor Corp. | 33,464 | 302,180 | ||||||
DCT Industrial Trust, Inc. | 4,215 | 170,160 | ||||||
Diamondback Energy, Inc.(1) | 3,473 | 300,692 | ||||||
Douglas Emmett, Inc. | 5,337 | 173,186 | ||||||
Eagle Bancorp, Inc.(1) | 5,780 | 293,046 | ||||||
EastGroup Properties, Inc. | 2,779 | 166,045 | ||||||
Essex Property Trust, Inc. | 724 | 159,606 | ||||||
Federated National Holding Co. | 12,812 | 244,069 | ||||||
First American Financial Corp. | 1,728 | 62,243 | ||||||
First Republic Bank | 2,603 | 183,043 | ||||||
Grand Canyon Education, Inc.(1) | 3,979 | 174,002 | ||||||
Gulfport Energy Corp.(1) | 5,342 | 167,205 | ||||||
Helen of Troy, Ltd.(1) | 1,890 | 188,112 | ||||||
Hexcel Corp. | 6,698 | 303,218 | ||||||
Hill-Rom Holdings, Inc. | 2,855 | 138,039 | ||||||
ICU Medical, Inc.(1) | 1,480 | 147,023 | ||||||
Infinera Corp.(1) | 18,834 | 223,936 | ||||||
Infoblox, Inc.(1) | 12,012 | 200,961 | ||||||
Integra LifeSciences Holdings Corp.(1) | 5,295 | 374,992 | ||||||
Interface, Inc. | 17,009 | 289,493 | ||||||
James River Group Holdings, Ltd. | 3,390 | 104,954 | ||||||
Jazz Pharmaceuticals PLC(1) | 1,555 | 234,338 |
16 | See Notes to Financial Statements. |
Tax-Managed Global Small-Cap Portfolio
April 30, 2016
Portfolio of Investments (Unaudited) — continued
Security | Shares | Value | ||||||
United States (continued) |
| |||||||
Krispy Kreme Doughnuts, Inc.(1) | 12,894 | $ | 224,485 | |||||
Landstar System, Inc. | 3,108 | 203,729 | ||||||
LaSalle Hotel Properties | 5,484 | 131,068 | ||||||
Lazard, Ltd., Class A | 1,501 | 54,111 | ||||||
Mentor Graphics Corp. | 9,382 | 187,265 | ||||||
Meta Financial Group, Inc. | 3,827 | 189,896 | ||||||
Multi-Color Corp. | 4,469 | 267,380 | ||||||
NN, Inc. | 12,958 | 194,888 | ||||||
Nuvectra Corp.(1) | 1,555 | 13,070 | ||||||
NVR, Inc.(1) | 166 | 275,774 | ||||||
Paramount Group, Inc. | 9,725 | 162,408 | ||||||
PDC Energy, Inc.(1) | 4,528 | 284,313 | ||||||
Penske Automotive Group, Inc. | 6,794 | 265,849 | ||||||
Pinnacle Foods, Inc. | 4,680 | 199,321 | ||||||
Post Properties, Inc. | 3,181 | 182,462 | ||||||
PrivateBancorp, Inc. | 3,392 | 141,141 | ||||||
PS Business Parks, Inc. | 1,727 | 165,378 | ||||||
RBC Bearings, Inc.(1) | 2,969 | 217,628 | ||||||
Sabre Corp. | 9,110 | 263,734 | ||||||
Sally Beauty Holdings, Inc.(1) | 6,024 | 189,154 | ||||||
ServiceMaster Global Holdings, Inc.(1) | 3,698 | 141,707 | ||||||
Signature Bank(1) | 1,014 | 139,760 | ||||||
Sprouts Farmers Market, Inc.(1) | 7,364 | 206,707 | ||||||
Steven Madden, Ltd.(1) | 5,375 | 188,179 | ||||||
Team, Inc.(1) | 11,237 | 322,839 | ||||||
Teleflex, Inc. | 1,541 | 240,057 | ||||||
Vantiv, Inc., Class A(1) | 4,906 | 267,573 | ||||||
Verint Systems, Inc.(1) | 4,101 | 138,778 | ||||||
Vista Outdoor, Inc.(1) | 3,881 | 186,210 | ||||||
VWR Corp.(1) | 9,364 | 249,457 | ||||||
West Pharmaceutical Services, Inc. | 2,432 | 173,158 | ||||||
Western Alliance Bancorp(1) | 4,378 | 160,147 | ||||||
$ | 13,558,081 | |||||||
Total Common Stocks |
| $ | 23,729,771 | |||||
Short-Term Investments — 2.7% | ||||||||
Description | Interest (000’s omitted) | Value | ||||||
Eaton Vance Cash Reserves Fund, LLC, 0.53%(3) | $ | 658 | $ | 657,881 | ||||
Total Short-Term Investments |
| $ | 657,881 | |||||
Total Investments — 100.2% |
| $ | 24,387,652 | |||||
Other Assets, Less Liabilities — (0.2)% |
| $ | (47,974 | ) | ||||
Net Assets — 100.0% |
| $ | 24,339,678 | |||||
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 April 30, 2016, the aggregate value of these securities is $102,450 or 0.4% of the Portfolio’s net assets. |
(3) | 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 April 30, 2016. |
Sector Classification of Portfolio | ||||||||
Sector | Percentage of Net Assets | Value | ||||||
Financials | 23.7 | % | $ | 5,766,210 | ||||
Industrials | 18.0 | 4,377,199 | ||||||
Consumer Discretionary | 14.3 | 3,491,726 | ||||||
Information Technology | 13.1 | 3,190,943 | ||||||
Health Care | 11.7 | 2,837,288 | ||||||
Materials | 6.4 | 1,555,425 | ||||||
Consumer Staples | 5.0 | 1,222,234 | ||||||
Energy | 4.3 | 1,043,961 | ||||||
Utilities | 1.0 | 244,785 | ||||||
Short-Term Investments | 2.7 | 657,881 | ||||||
Total Investments | 100.2 | % | $ | 24,387,652 | ||||
Abbreviations:
ADR | – | American Depositary Receipt |
17 | See Notes to Financial Statements. |
Tax-Managed Global Small-Cap Portfolio
April 30, 2016
Statement of Assets and Liabilities (Unaudited)
Assets | April 30, 2016 | |||
Unaffiliated investments, at value (identified cost, $23,407,890) | $ | 23,729,771 | ||
Affiliated investment, at value (identified cost, $657,881) | 657,881 | |||
Foreign currency, at value (identified cost, $25,493) | 26,026 | |||
Dividends receivable | 56,436 | |||
Interest receivable from affiliated investment | 129 | |||
Receivable for investments sold | 447,268 | |||
Total assets | $ | 24,917,511 | ||
Liabilities | ||||
Payable for investments purchased | $ | 519,500 | ||
Payable to affiliates: | ||||
Investment adviser fee | 14,931 | |||
Trustees’ fees | 155 | |||
Accrued expenses | 43,247 | |||
Total liabilities | $ | 577,833 | ||
Net Assets applicable to investors’ interest in Portfolio | $ | 24,339,678 | ||
Sources of Net Assets | ||||
Investors’ capital | $ | 24,015,820 | ||
Net unrealized appreciation | 323,858 | |||
Total | $ | 24,339,678 |
18 | See Notes to Financial Statements. |
Tax-Managed Global Small-Cap Portfolio
April 30, 2016
Statement of Operations (Unaudited)
Investment Income | Six Months Ended April 30, 2016 | |||
Dividends (net of foreign taxes, $18,169) | $ | 405,098 | ||
Interest allocated from affiliated investment | 582 | |||
Expenses allocated from affiliated investment | (23 | ) | ||
Total investment income | $ | 405,657 | ||
Expenses | ||||
Investment adviser fee | $ | 98,092 | ||
Trustees’ fees and expenses | 855 | |||
Custodian fee | 42,259 | |||
Legal and accounting services | 17,839 | |||
Miscellaneous | 12,244 | |||
Total expenses | $ | 171,289 | ||
Net investment income | $ | 234,368 | ||
Realized and Unrealized Gain (Loss) | ||||
Net realized gain (loss) — | ||||
Investment transactions | $ | (1,070,148 | ) | |
Investment transactions allocated from affiliated investment | 2 | |||
Foreign currency transactions | 2,716 | |||
Net realized loss | $ | (1,067,430 | ) | |
Change in unrealized appreciation (depreciation) — | ||||
Investments | $ | 53,028 | ||
Foreign currency | 2,244 | |||
Net change in unrealized appreciation (depreciation) | $ | 55,272 | ||
Net realized and unrealized loss | $ | (1,012,158 | ) | |
Net decrease in net assets from operations | $ | (777,790 | ) |
19 | See Notes to Financial Statements. |
Tax-Managed Global Small-Cap Portfolio
April 30, 2016
Statements of Changes in Net Assets
Increase (Decrease) in Net Assets | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | ||||||
From operations — | ||||||||
Net investment income | $ | 234,368 | $ | 183,418 | ||||
Net realized gain (loss) from investment and foreign currency transactions | (1,067,430 | ) | 27,652,344 | (1) | ||||
Net change in unrealized appreciation (depreciation) from investments and foreign currency | 55,272 | (28,387,042 | ) | |||||
Net decrease in net assets from operations | $ | (777,790 | ) | $ | (551,280 | ) | ||
Capital transactions — | ||||||||
Contributions | $ | 1,176,996 | $ | 4,480,188 | ||||
Withdrawals | (11,729,209 | ) | (50,586,121 | )(2) | ||||
Net decrease in net assets from capital transactions | $ | (10,552,213 | ) | $ | (46,105,933 | ) | ||
Net decrease in net assets | $ | (11,330,003 | ) | $ | (46,657,213 | ) | ||
Net Assets | ||||||||
At beginning of period | $ | 35,669,681 | $ | 82,326,894 | ||||
At end of period | $ | 24,339,678 | $ | 35,669,681 |
(1) | Includes $10,721,827 of net realized gains from redemptions in-kind. |
(2) | Includes $41,935,538 of withdrawals by Eaton Vance Tax-Managed Equity Asset Allocation Fund, a fund that invested in the Portfolio during a portion of the year ended October 31, 2015. |
20 | See Notes to Financial Statements. |
Tax-Managed Global Small-Cap Portfolio
April 30, 2016
Supplementary Data
Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, | |||||||||||||||||||||||
Ratios/Supplemental Data | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Ratios (as a percentage of average daily net assets): | ||||||||||||||||||||||||
Expenses(1) | 1.31 | %(2) | 0.89 | % | 0.93 | % | 1.13 | % | 1.13 | % | 1.11 | % | ||||||||||||
Net investment income | 1.80 | %(2)(3) | 0.27 | % | 0.05 | % | 0.32 | % | 0.18 | % | 0.33 | %(3) | ||||||||||||
Portfolio Turnover | 41 | %(4) | 124 | % | 48 | % | 72 | % | 55 | % | 66 | % | ||||||||||||
Total Return | (2.22 | )%(4) | (4.08 | )% | 10.71 | % | 34.26 | % | 7.86 | % | 9.46 | % | ||||||||||||
Net assets, end of period (000’s omitted) | $ | 24,340 | $ | 35,670 | $ | 82,327 | $ | 80,045 | $ | 70,053 | $ | 73,673 |
(1) | Excludes the effect of custody fee credits, if any, of less than 0.005%. |
(2) | Annualized. |
(3) | Includes special dividends equal to 1.69% and 0.16% of average daily net assets for the six months ended April 30, 2016 and the year ended October 31, 2011, respectively. |
(4) | Not annualized. |
21 | See Notes to Financial Statements. |
Tax-Managed Global Small-Cap Portfolio
April 30, 2016
Notes to Financial Statements (Unaudited)
1 Significant Accounting Policies
Tax-Managed Global Small-Cap 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. The Declaration of Trust permits the Trustees to issue interests in the Portfolio. At April 30, 2016, Eaton Vance Tax-Managed Global Small-Cap Fund held an interest of 99.9% 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). The value of the Portfolio’s investment in Cash Reserves Fund reflects the Portfolio’s proportionate interest in its net assets. Cash Reserves Fund generally values its investment securities utilizing the amortized cost valuation technique in accordance with Rule 2a-7 under the 1940 Act. This technique involves initially valuing a portfolio security at its cost and thereafter assuming a constant amortization to maturity of any discount or premium. If amortized cost is determined not to approximate fair value, Cash Reserves Fund may value its investment securities based on available market quotations provided by a third party pricing service.
Fair Valuation. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the Portfolio in a manner that fairly reflects the security’s value, or the amount that the Portfolio might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies or entities, quotations or relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company’s or entity’s financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
B Investment Transactions — Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost.
C Income — Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Portfolio is informed of the ex-dividend date. Withholding taxes on foreign dividends and capital gains have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount.
D Federal Taxes — The Portfolio has elected to be treated as a partnership for federal tax purposes. No provision is made by the Portfolio for federal or state taxes on any taxable income of the Portfolio because each investor in the Portfolio is ultimately responsible for the payment of any taxes on its share of taxable income. Since at least one of the Portfolio’s investors is a regulated investment company that invests all or substantially all of its assets in the Portfolio, the Portfolio normally must satisfy the applicable source of income and diversification requirements (under the Internal Revenue Code) in order for its investors to satisfy them. The Portfolio will allocate, at least annually among its investors, each investor’s distributive share of the Portfolio’s net investment income, net realized capital gains and losses and any other items of income, gain, loss, deduction or credit.
As of April 30, 2016, 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.
22 |
Tax-Managed Global Small-Cap Portfolio
April 30, 2016
Notes to Financial Statements (Unaudited) — continued
E Expense Reduction — State Street Bank and Trust Company (SSBT) serves as custodian of the Portfolio. Pursuant to the custodian agreement, SSBT receives a fee that may be reduced by credits, which are determined based on the average daily cash balance the Portfolio maintains with SSBT. All credit balances, if any, used to reduce the Portfolio’s custodian fees are reported as a reduction of expenses in the Statement of Operations. Effective September 1, 2015, SSBT began imposing fees on certain uninvested cash balances and discontinued credits on cash deposit balances.
F Foreign Currency Translation — Investment valuations, other assets, and liabilities initially expressed in foreign currencies are translated each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investment securities and income and expenses denominated in foreign currencies are translated into U.S. dollars based upon currency exchange rates in effect on the respective dates of such transactions. Recognized gains or losses on investment transactions attributable to changes in foreign currency exchange rates are recorded for financial statement purposes as net realized gains and losses on investments. That portion of unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.
G Use of Estimates — The preparation of the financial statements in conformity with 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.
H Indemnifications — Under the Portfolio’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Portfolio. Under Massachusetts law, if certain conditions prevail, interestholders in the Portfolio could be deemed to have personal liability for the obligations of the Portfolio. However, the Portfolio’s Declaration of Trust contains an express disclaimer of liability on the part of Portfolio interestholders and the By-laws provide that the Portfolio shall assume the defense on behalf of any Portfolio interestholder. Moreover, the By-laws also provide for indemnification out of Portfolio property of any interestholder held personally liable solely by reason of being or having been an interestholder for all loss or expense arising from such liability. Additionally, in the normal course of business, the Portfolio enters into agreements with service providers that may contain indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred.
I Interim Financial Statements — The interim financial statements relating to April 30, 2016 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Portfolio’s management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.
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 management and investment advisory services rendered to the Portfolio. Pursuant to the investment advisory agreement and subsequent fee reduction agreement between the Portfolio and BMR, the fee is computed at an annual rate of 0.75% of the Portfolio’s average daily net assets up to $500 million, and is payable monthly. On net assets of $500 million and over, the annual fee is reduced. The fee reduction cannot be terminated or reduced without the approval of a majority vote of the Trustees of the Portfolio who are not interested persons of BMR or the Portfolio and by the vote of a majority of the holders of interest in the Portfolio. For the six months ended April 30, 2016, the Portfolio’s investment adviser fee amounted to $98,092, or 0.75% (annualized) of the Portfolio’s average daily net assets. Pursuant to a sub-advisory agreement effective November 16, 2015, BMR pays Eaton Vance Management (International) Limited (EVMI), an indirect, wholly-owned subsidiary of Eaton Vance Corp., a portion of its advisory 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.
During the six months ended April 30, 2016, BMR reimbursed the Portfolio $28,539 for a trading error. The effect of the loss incurred and the reimbursement by BMR of such amount had no impact on total return.
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 six months ended April 30, 2016, 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 $10,758,586 and $21,290,202, respectively, for the six months ended April 30, 2016.
23 |
Tax-Managed Global Small-Cap Portfolio
April 30, 2016
Notes to Financial Statements (Unaudited) — continued
4 Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of investments of the Portfolio at April 30, 2016, as determined on a federal income tax basis, were as follows:
Aggregate cost | $ | 24,130,464 | ||
Gross unrealized appreciation | $ | 1,967,689 | ||
Gross unrealized depreciation | (1,710,501 | ) | ||
Net unrealized appreciation | $ | 257,188 |
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 September 2, 2016. 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 0.10% 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 six months ended April 30, 2016.
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.
24 |
Tax-Managed Global Small-Cap Portfolio
April 30, 2016
Notes to Financial Statements (Unaudited) — continued
At April 30, 2016, 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 | $ | 196,493 | $ | 3,703,352 | $ | — | $ | 3,899,845 | ||||||||
Developed Europe | — | 5,182,871 | — | 5,182,871 | ||||||||||||
Developed Middle East | 119,686 | — | — | 119,686 | ||||||||||||
North America | 14,527,369 | — | — | 14,527,369 | ||||||||||||
Total Common Stocks | $ | 14,843,548 | $ | 8,886,223 | * | $ | — | $ | 23,729,771 | |||||||
Short-Term Investments | $ | — | $ | 657,881 | $ | — | $ | 657,881 | ||||||||
Total Investments | $ | 14,843,548 | $ | 9,544,104 | $ | — | $ | 24,387,652 |
* | Includes foreign equity securities whose values were adjusted to reflect market trading of comparable securities or other correlated instruments that occurred after the close of trading in their applicable foreign markets. |
The Portfolio held no investments or other financial instruments as of October 31, 2015 whose fair value was determined using Level 3 inputs. At April 30, 2016, there were no investments transferred between Level 1 and Level 2 during the six months then ended.
25 |
Eaton Vance
Tax-Managed Global Small-Cap Fund
April 30, 2016
Board of Trustees’ Contract Approval
Overview of the Contract Review Process
The Investment Company Act of 1940, as amended (the “1940 Act”), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuation is approved at least annually by the fund’s board of trustees, including by a vote of a majority of the trustees who are not “interested persons” of the fund (“Independent Trustees”), cast in person at a meeting called for the purpose of considering such approval.
At a meeting of the Boards of Trustees (each a “Board”) of the registered investment companies advised, administered and/or distributed by Eaton Vance Management or its affiliates (the “Eaton Vance Funds”) held on April 26, 2016, the Board, including a majority of the Independent Trustees, voted to approve continuation of existing investment advisory and sub-advisory agreements for the Eaton Vance Funds for an additional one-year period. In voting its approval, the Board relied upon the affirmative recommendation of its Contract Review Committee, which is a committee comprised exclusively of Independent Trustees. Prior to making its recommendation, the Contract Review Committee reviewed information furnished by each adviser to the Eaton Vance Funds (including information specifically requested by the Board) for a series of meetings of the Contract Review Committee held between February and April 2016. The Contract Review Committee also considered information received at prior meetings of the Board and its committees, as relevant to its annual evaluation of the investment advisory and sub-advisory agreements, including, with respect to the Sub-adviser (defined below), information provided in connection with the meeting of the Board held on November 16, 2015.
The information that the Board considered included, among other things, the following (for funds that invest through one or more underlying portfolio(s), references to “each fund” in this section may include information that was considered at the portfolio-level):
Information about Fees, Performance and Expenses
• | A report from an independent data provider comparing the advisory and related fees paid by each fund with fees paid by comparable funds as identified by the independent data provider (“comparable funds”); |
• | A report from an independent data provider comparing each fund’s total expense ratio and its components to comparable funds; |
• | A report from an independent data provider comparing the investment performance of each fund (including, where relevant, yield data, Sharpe ratios and information ratios) to the investment performance of comparable funds over various time periods; |
• | Data regarding investment performance in comparison to benchmark indices and customized groups of peer funds identified by the adviser in consultation with the Board; |
• | For each fund, comparative information concerning the fees charged and the services provided by each adviser in managing other accounts (including mutual funds, other collective investment funds and institutional accounts) using investment strategies and techniques similar to those used in managing such fund; |
• | Profitability analyses for each adviser with respect to each fund; |
Information about Portfolio Management and Trading
• | Descriptions of the investment management services provided to each fund, including the investment strategies and processes it employs; |
• | The procedures and processes used to determine the fair value of fund assets and actions taken to monitor and test the effectiveness of such procedures and processes; |
• | Information about each adviser’s policies and practices with respect to trading, including each adviser’s processes for monitoring best execution of portfolio transactions; |
• | Information about the allocation of brokerage transactions and the benefits received by each adviser as a result of brokerage allocation, including information concerning the acquisition of research through client commission arrangements and policies with respect to “soft dollars”; |
• | Data relating to portfolio turnover rates of each fund; |
Information about each Adviser
• | Reports detailing the financial results and condition of each adviser; |
• | Descriptions of the qualifications, education and experience of the individual investment professionals whose responsibilities include portfolio management and investment research for the funds, and information relating to their compensation and responsibilities with respect to managing other mutual funds and investment accounts; |
• | The Code of Ethics of each adviser and its affiliates, together with information relating to compliance with and the administration of such codes; |
• | Policies and procedures relating to proxy voting and the handling of corporate actions and class actions; |
• | Information concerning the resources devoted to compliance efforts undertaken by each adviser and its affiliates (including descriptions of various compliance programs) and their record of compliance; |
• | Information concerning the business continuity and disaster recovery plans of each adviser and its affiliates; |
• | A description of Eaton Vance Management’s procedures for overseeing third party advisers and sub-advisers, including with respect to regulatory and compliance issues, investment management and other matters; |
26 |
Eaton Vance
Tax-Managed Global Small-Cap Fund
April 30, 2016
Board of Trustees’ Contract Approval — continued
Other Relevant Information
• | Information concerning the nature, cost and character of the administrative and other non-investment advisory services provided by Eaton Vance Management and its affiliates; |
• | Information concerning management of the relationship with the custodian, subcustodians and fund accountants by each adviser or the funds’ administrator; and |
• | The terms of each investment advisory agreement. |
Over the course of the twelve-month period ended April 30, 2016, with respect to one or more funds, the Board met ten times and the Contract Review Committee, the Audit Committee, the Governance Committee, the Portfolio Management Committee and the Compliance Reports and Regulatory Matters Committee, each of which is a Committee comprised solely of Independent Trustees, met seven, sixteen, four, nine and eleven times, respectively. At such meetings, the Trustees participated in investment and performance reviews with the portfolio managers and other investment professionals of each investment adviser relating to each fund, and considered various investment and trading strategies used in pursuing each fund’s investment objective, such as the use of derivative instruments, as well as risk management techniques. The Board and its Committees also evaluated issues pertaining to industry and regulatory developments, compliance procedures, fund governance and other issues with respect to the funds, and received and participated in reports and presentations provided by Eaton Vance Management and other fund advisers with respect to such matters. In addition to the formal meetings of the Board and its Committees, the Independent Trustees hold regular teleconferences in between meetings to discuss, among other topics, matters relating to the continuation of investment advisory and sub-advisory agreements.
For funds that invest through one or more underlying portfolios, the Board considered similar information about the portfolio(s) when considering the approval of investment advisory agreements. In addition, in cases where the fund’s investment adviser has engaged a sub-adviser, the Board considered similar information about the sub-adviser when considering the approval of any sub-advisory agreement.
The Contract Review Committee was assisted throughout the contract review process by Goodwin Procter LLP, independent legal counsel for the Independent Trustees. The members of the Contract Review Committee relied upon the advice of such counsel and their own business judgment in determining the material factors to be considered in evaluating each investment advisory and sub-advisory agreement and the weight to be given to each such factor. The conclusions reached with respect to each investment advisory and sub-advisory agreement were based on a comprehensive evaluation of all the information provided and not any single factor. Moreover, each member of the Contract Review Committee may have placed varying emphasis on particular factors in reaching conclusions with respect to each investment advisory and sub-advisory agreement. In evaluating each investment advisory and sub-advisory agreement, including the specific fee structures and other terms of the agreements, the Contract Review Committee was informed by multiple years of analysis and discussion among the Independent Trustees and the Eaton Vance Funds’ advisers and sub-advisers.
Results of the Process
Based on its consideration of the foregoing, and such other information as it deemed relevant, including the factors and conclusions described below, the Contract Review Committee concluded that the continuation of the investment advisory agreement of Tax-Managed Global Small-Cap Portfolio (formerly Tax-Managed Small-Cap Value Portfolio) (the “Portfolio”), the portfolio in which Eaton Vance Tax-Managed Global Small-Cap Fund (formerly Eaton Vance Tax-Managed Small-Cap Value Fund) (the “Fund”) invests, with Boston Management and Research (the “Adviser”) and the sub-advisory agreement with Eaton Vance Management (International) Limited (the “Sub-adviser”), each an affiliate of Eaton Vance Management, including their fee structures, is in the interests of shareholders and, therefore, the Contract Review Committee recommended to the Board approval of each agreement. The Board accepted the recommendation of the Contract Review Committee based on the material factors considered and conclusions reached by the Contract Review Committee with respect to the agreements. Accordingly, the Board, including a majority of the Independent Trustees, voted to approve continuation of the investment advisory agreement and the sub-advisory agreement for the Portfolio.
Nature, Extent and Quality of Services
In considering whether to approve the investment advisory agreement and the sub-advisory agreement of the Portfolio, the Board evaluated the nature, extent and quality of services provided to the Portfolio by the Adviser and the Sub-adviser.
The Board considered the Adviser’s and the Sub-adviser’s management capabilities and investment process with respect to the types of investments held by the Portfolio, including the education, experience and number of its investment professionals and other personnel who provide portfolio management, investment research, and similar services to the Portfolio, including recent changes to such personnel. The Board considered the Adviser’s responsibilities supervising the Sub-adviser and coordinating activities in implementing the Portfolio’s investment strategy. The Board considered the Adviser’s in-house equity research capabilities and experience in managing funds that seek to maximize after-tax returns. The Board also considered the abilities and experience of the Sub-adviser’s personnel in investing in equity securities, including investing in both U.S. and foreign common stocks. In particular, the Board considered the abilities and experience of the Adviser’s and the Sub-adviser’s investment professionals in analyzing factors such as tax efficiency and special considerations relevant to investing in foreign markets. The Board considered the development of the international investment capabilities of the Sub-adviser, which is based in London, and the potential benefits to the Fund of having portfolio management services involving investments in international equities provided by investment professionals located abroad. The Board also took into account the resources dedicated to portfolio
27 |
Eaton Vance
Tax-Managed Global Small-Cap Fund
April 30, 2016
Board of Trustees’ Contract Approval — continued
management and other services, as well as the compensation methods of the Adviser and other factors, such as the reputation and resources of the Adviser to recruit and retain highly qualified research, advisory and supervisory investment professionals. In addition, the Board considered the time and attention devoted to the Eaton Vance Funds, including the Portfolio, by senior management, as well as the infrastructure, operational capabilities and support staff in place to assist in the portfolio management and operations of the Portfolio, including the provision of administrative services.
The Board considered the compliance programs of the Adviser and relevant affiliates thereof, including the Sub-adviser. Among other matters, the Board considered compliance and reporting matters relating to personal trading by investment professionals, selective disclosure of portfolio holdings, late trading, frequent trading, portfolio valuation, business continuity and the allocation of investment opportunities. The Board also considered the responses of the Adviser and its affiliates to requests in recent years from regulatory authorities such as the Securities and Exchange Commission and the Financial Industry Regulatory Authority.
The Board considered shareholder and other administrative services provided or managed by Eaton Vance Management and its affiliates, including transfer agency and accounting services. The Board evaluated the benefits to shareholders of investing in a fund that is a part of a large fund complex offering exposure to a variety of asset classes and investment disciplines, as well as the ability, in many cases, to exchange an investment among different funds without incurring additional sales charges.
After consideration of the foregoing factors, among others, the Board concluded that the nature, extent and quality of services provided by the Adviser and Sub-adviser, taken as a whole, are appropriate and consistent with the terms of the investment advisory agreement and the sub-advisory agreement.
Fund Performance
The Board compared the Fund’s investment performance to that of comparable funds and appropriate benchmark indices, as well as a customized peer group of similarly managed funds. The Board’s review included comparative performance data for the one-, three-, five- and ten-year periods ended September 30, 2015 for the Fund. The Board noted that actions are being taken by the Adviser to address Fund performance and concluded that additional time is required to evaluate the effectiveness of such actions.
Management Fees and Expenses
The Board considered contractual fee rates payable by the Portfolio and by the Fund for advisory and administrative services (referred to collectively as “management fees”). As part of its review, the Board considered the Fund’s management fees and total expense ratio for a one year period ended September 30, 2015, as compared to those of comparable funds, before and after giving effect to any undertaking to waive fees or reimburse expenses. The Board also considered factors that had an impact on Fund expense ratios, as identified by management in response to inquiries from the Contract Review Committee.
After considering the foregoing information, and in light of the nature, extent and quality of the services provided by the Adviser and the Sub-adviser, the Board concluded that the management fees charged for advisory and related services are reasonable.
Profitability and Other “Fall-Out” Benefits
The Board considered the level of profits realized by the Adviser and relevant affiliates thereof in providing investment advisory and administrative services to the Fund, to the Portfolio and to all Eaton Vance Funds as a group. The Board considered the level of profits realized without regard to marketing support or other payments by the Adviser and its affiliates to third parties in respect of distribution services. The Board also considered other direct or indirect fall-out benefits received by the Adviser and its affiliates, including the Sub-adviser, in connection with their relationships with the Fund and the Portfolio, including the benefits of research services that may be available to the Adviser or the Sub-adviser as a result of securities transactions effected for the Portfolio and other investment advisory clients.
The Board concluded that, in light of the foregoing factors and the nature, extent and quality of the services rendered, the profits realized by the Adviser and its affiliates, including the Sub-adviser, are deemed not to be excessive.
Economies of Scale
In reviewing management fees and profitability, the Board also considered the extent to which the Adviser and its affiliates, on the one hand, and the Fund and the Portfolio, on the other hand, can expect to realize benefits from economies of scale as the assets of the Fund and the Portfolio increase. The Board acknowledged the difficulty in accurately measuring the benefits resulting from economies of scale, if any, with respect to the management of any specific fund or group of funds. The Board reviewed data summarizing the increases and decreases in the assets of the Fund and of all Eaton Vance Funds as a group over various time periods, and evaluated the extent to which the total expense ratio of the Fund and the profitability of the Adviser and its affiliates may have been affected by such increases or decreases. Based upon the foregoing, the Board concluded that the Fund currently shares in any benefits from economies of scale. The Board also concluded that, assuming reasonably foreseeable increases in the assets of the Fund and the Portfolio, the structure of the advisory fee, which includes breakpoints at several asset levels, will allow the Fund and the Portfolio to continue to benefit from any economies of scale in the future.
28 |
Eaton Vance
Tax-Managed Global Small-Cap Fund
April 30, 2016
Officers and Trustees
Officers of Eaton Vance Tax-Managed Global Small-Cap Fund
Payson F. Swaffield
President
Maureen A. Gemma
Vice President, Secretary and
Chief Legal Officer
James F. Kirchner
Treasurer
Paul M. O’Neil
Chief Compliance Officer
Officers of Tax-Managed Global Small-Cap Portfolio
Thomas E. Faust Jr.
President
Maureen A. Gemma
Vice President, Secretary and
Chief Legal Officer
James F. Kirchner
Treasurer
Paul M. O’Neil
Chief Compliance Officer
Trustees of Eaton Vance Tax-Managed Global Small-Cap Fund and Tax-Managed Global Small-Cap Portfolio
Ralph F. Verni
Chairperson
William H. Park
Vice-Chairperson
Scott E. Eston
Thomas E. Faust Jr.*
Cynthia E. Frost
George J. Gorman
Valerie A. Mosley
Helen Frame Peters
Susan J. Sutherland
Harriett Tee Taggart
* | Interested Trustee |
29 |
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 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 1-800-262-1122, or contact your financial advisor. Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial advisor.
Portfolio Holdings. Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) will file a schedule of portfolio holdings on Form N-Q with the SEC for the first and third quarters of each fiscal year. The Form N-Q will be available on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 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 1-800-262-1122 and by accessing the SEC’s website at www.sec.gov.
30 |
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Investment Adviser of Tax-Managed Global Small-Cap Portfolio
Boston Management and Research
Two International Place
Boston, MA 02110
Administrator of Eaton Vance Tax-Managed Global Small-Cap Fund
Eaton Vance Management
Two International Place
Boston, MA 02110
Investment Sub-Adviser
Eaton Vance Management (International) Limited
125 Old Broad St.
London, EC2N 1AR
United Kingdom
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) 262-1122
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. |
7721 4.30.16 |
Item 2. Code of Ethics
Not required in this filing.
Item 3. Audit Committee Financial Expert
Not required in this filing.
Item 4. Principal Accountant Fees and Services
Not required in this filing.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
No material changes.
Item 11. Controls and Procedures
(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrant’s internal controls over financial reporting during the 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 Global Small-Cap Portfolio
By: | /s/ Thomas E. Faust Jr. | |
Thomas E. Faust Jr. | ||
President | ||
Date: | June 13, 2016 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ James F. Kirchner | |
James F. Kirchner | ||
Treasurer | ||
Date: | June 13, 2016 |
By: | /s/ Thomas E. Faust Jr. | |
Thomas E. Faust Jr. | ||
President | ||
Date: | June 13, 2016 |