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: 811-22982
Eaton Vance NextShares Trust
(Exact Name of Registrant as Specified in Charter)
Two International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
Deidre E. Walsh
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
(617) 482-8260
(Registrant’s Telephone Number)
October 31
Date of Fiscal Year End
October 31, 2021
Date of Reporting Period
Item 1. | Reports to Stockholders |
![LOGO](https://capedge.com/proxy/N-CSR/0001193125-21-367751/g255578g11o68.jpg)
Eaton Vance
Global Income Builder NextShares (EVGBC)
Listing Exchange: The NASDAQ Stock Market LLC
Annual Report
October 31, 2021
NextShares® is a registered trademark of NextShares Solutions LLC. All rights reserved.
Commodity Futures Trading Commission Registration. The Commodity Futures Trading Commission (“CFTC”) has adopted regulations that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a prescribed level of its assets in certain CFTC-regulated instruments (including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. The investment adviser has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act with respect to its management of the Fund. Accordingly, neither the Fund nor the adviser with respect to the operation of the Fund is subject to CFTC regulation. Because of its management of other strategies, the Fund’s adviser is registered with the CFTC as a commodity pool operator. The adviser is also registered as a commodity trading advisor.
Fund shares are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.
This report must be preceded or accompanied by a current summary prospectus or prospectus. Before investing in NextShares, investors should consider carefully the investment objective, risks, and charges and expenses. This and other important information is contained in the summary prospectus and prospectus, which can be obtained from a financial intermediary. Prospective investors should read the prospectus carefully before investing. For further information, please call 1-800-262-1122.
Annual Report October 31, 2021
Eaton Vance
Global Income Builder NextShares
Eaton Vance
Global Income Builder NextShares
October 31, 2021
Management’s Discussion of Fund Performance1
Economic and Market Conditions
The 12-month period starting November 1, 2020 was notable for a global equity rally that began in the opening month of the period and continued through period-end — except for a pause in January 2021 and a temporary retreat the following September. For the period as a whole, broad-market stock indexes generally posted strong double-digit returns as investors cheered the reopening of businesses that had been affected by the COVID-19 pandemic and the rollout of several highly effective vaccines.
The COVID-19 virus, however, continued to have a firm grip on the global economy. Disease rates advanced and declined with second and third waves of COVID-19 infections. Worker shortages led to global supply chain disruptions. From computer chips to shipping containers, scarcities of key items led to temporary factory shutdowns and empty store shelves. In the U.S., those shortages — combined with high demand from consumers eager to spend money they had saved earlier in the pandemic — led to higher year-over-year inflation than the economy had seen in years.
Still, investor optimism about a recovering economy drove stock prices up during most of the period. The only significant pullback occurred in September 2021, when stock indexes around the world reported negative returns. In the U.S., unexpectedly weak job creation in August and the U.S. Federal Reserve’s announcement that it might soon begin reducing its monthly bond purchases — which had stimulated the economy earlier — combined to drive U.S. stocks into negative territory. Across the globe, rising COVID-19 infections weighed on equity performance.
In the final month of the period, however, stock prices came roaring back. In the U.S., earnings season brought news that a large majority of companies had beaten analysts’ expectations. For October 2021, both the broad-market S&P 500® Index and the technology-laden Nasdaq Composite Index reported their best monthly performances since November 2020.
In China, the world’s second-largest economy, the Communist Party’s efforts to dial back capitalism and take more control of China’s surging technology sector were not applauded by global investors. The MSCI Golden Dragon Index, a measure of Chinese large-cap and mid-cap stocks, was one of the worst-performing major stock indexes for the one-year period, returning 3.84%.
Most other indexes fared significantly better. The MSCI World Index, a broad measure of global equities, returned 40.42% for the 12 months ended October 31, 2021; while the S&P 500® Index returned 42.91%; and the Nasdaq Composite Index rose 42.99%. The MSCI EAFE Index of developed-market international equities returned 34.18%, while the MSCI Emerging Markets Index returned 16.96% during the period.
Fund Performance
For the 12-month period ended October 31, 2021, Eaton Vance Global Income Builder NextShares (the Fund) returned 30.18% at net asset value (NAV), underperforming its primary benchmark, the MSCI World Index (the Index), which returned 40.42%; and outperforming its blended benchmark consisting of 65% MSCI World Index and 35% ICE BofA Developed Markets High Yield Ex-Subordinated Financial Index (the ICE BofA Index), which returned 29.16%.
The Fund’s out-of-Index allocations to high yield bonds, preferred securities, and bank loans detracted from performance versus the Index during the period.
The Fund’s high yield securities allocation underperformed the Index, but outperformed the broad high yield market, as measured by the ICE BofA Index. Within its high yield allocation, the Fund had an overweight exposure, relative to the ICE BofA Index, to sectors that were negatively affected by the COVID-19 downturn early in the pandemic — notably energy and travel & leisure. Fund performance benefited when the rollout of vaccines and the reopening of the global economy led those sectors to rally back during the period as demand and prices in both sectors increased significantly.
The Fund’s preferred securities allocation — preferred stocks, exchange-traded funds investing primarily in preferred stocks, and corporate bonds and other debt securities with preferred characteristics — also underperformed the Index, but outperformed the overall preferred market, as measured by the ICE BofA Fixed Rate Preferred Securities Index (the Preferred Index). An overweight exposure to energy company securities, relative to the Preferred Index, contributed to Fund performance versus the Index as those securities benefited from a rise in oil and gas prices. Some of the Fund’s preferred holdings in other industries that had been heavily impacted by COVID-19 — including real estate, agriculture, and aircraft leasing — experienced strong recoveries in price during the period and contributed to performance versus the Index as well.
The Fund’s small allocation to bank loans delivered positive performance, but underperformed the Index. During a period of strong equity market performance, the Fund’s small cash allocation also dragged on Fund performance versus the Index.
Within the Fund’s common stock allocation, selections in the consumer discretionary sector detracted from Fund performance versus the Index during the period.
In contrast, the Fund’s common stock allocation as a whole outperformed the Index and, thus, contributed to Fund performance versus the Index during the period. Within the common stock allocation, contributors to performance relative to the Index included stock selections in the information technology and health care sectors, as well as stock selections and an overweight position relative to the Index in the financials sector.
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, Fund performance may be lower or higher than the quoted return. The Fund’s performance at market price will differ from its results at net asset value (NAV). The market price used to calculate the Market Price return is the midpoint between the highest bid and the lowest offer on the exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. If you trade your shares at another time during the day, your return may differ. Returns are historical and are calculated by determining the percentage change in NAV or market price (as applicable) with all distributions reinvested at NAV or closing market price (as applicable) on the payment date of the distribution, and are net of management fees and other expenses. Performance for periods less than or equal to one year is cumulative. For performance as of the most recent month-end, including historical trading premiums/discounts relative to NAV, please refer to eatonvance.com.
Eaton Vance
Global Income Builder NextShares
October 31, 2021
Performance2,3,4
Portfolio Managers Christopher M. Dyer, CFA and Jeffrey D. Mueller, of Eaton Vance Advisers International Ltd.; John H. Croft, CFA and Derek J.V. DiGregorio, of Boston Management and Research
| | | | | | | | | | | | | | | | | | | | | | | | |
% Average Annual Total Returns | | Fund Inception Date | | | Performance Inception Date | | | One Year | | | Five Years | | | Ten Years | | | Since Fund Inception | |
| | | | | | |
Fund at NAV | | | 03/30/2016 | | | | 11/30/2005 | | | | 30.18 | % | | | 11.26 | % | | | 9.78 | % | | | 10.58 | |
Fund at Market Price | | | 03/30/2016 | | | | 03/30/2016 | | | | 30.29 | | | | 11.27 | | | | — | | | | 10.60 | |
|
| |
| | | | | | |
MSCI World Index | | | — | | | | — | | | | 40.42 | % | | | 15.44 | % | | | 12.18 | % | | | 14.43 | % |
ICE BofA Developed Markets High Yield Ex-Subordinated Financial Index | | | — | | | | — | | | | 10.06 | | | | 5.99 | | | | 6.13 | | | | 7.17 | |
Blended Index | | | — | | | | — | | | | 29.16 | | | | 12.17 | | | | 10.13 | | | | 11.94 | |
| | | | | | |
% Total Annual Operating Expense Ratios5 | | | | | | | | | | | | | | | | | | |
| | | | | | |
Gross | | | | | | | | | | | | | | | | | | | | | | | 2.93 | % |
Net | | | | | | | | | | | | | | | | | | | | | | | 0.85 | |
Growth of $10,000
This graph shows the change in value of a hypothetical investment of $10,000 in Global Income Builder NextShares for the period indicated. For comparison, the same investment is shown in the indicated index.
![LOGO](https://capedge.com/proxy/N-CSR/0001193125-21-367751/g255578g81o27.jpg)
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, Fund performance may be lower or higher than the quoted return. The Fund’s performance at market price will differ from its results at net asset value (NAV). The market price used to calculate the Market Price return is the midpoint between the highest bid and the lowest offer on the exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. If you trade your shares at another time during the day, your return may differ. Returns are historical and are calculated by determining the percentage change in NAV or market price (as applicable) with all distributions reinvested at NAV or closing market price (as applicable) on the payment date of the distribution, and are net of management fees and other expenses. Performance for periods less than or equal to one year is cumulative. For performance as of the most recent month-end, including historical trading premiums/discounts relative to NAV, please refer to eatonvance.com.
Eaton Vance
Global Income Builder NextShares
October 31, 2021
Fund Profile6
Country Allocation (% of net assets)
![LOGO](https://capedge.com/proxy/N-CSR/0001193125-21-367751/g255578g48j99.jpg)
Asset Allocation (% of net assets)8
![LOGO](https://capedge.com/proxy/N-CSR/0001193125-21-367751/g255578g27j48.jpg)
Top 10 Holdings (% of net assets)7
| | | | |
Alphabet, Inc., Class C | | | 3.1 | % |
| |
Microsoft Corp. | | | 2.8 | |
| |
Amazon.com, Inc. | | | 2.0 | |
| |
Apple, Inc. | | | 1.4 | |
| |
ASML Holding NV | | | 1.4 | |
| |
Nestle S.A. | | | 1.1 | |
| |
Bank of New York Mellon Corp. (The) | | | 1.1 | |
| |
Meta Platforms, Inc., Class A | | | 1.1 | |
| |
Walt Disney Co. (The) | | | 1.0 | |
| |
Novo Nordisk A/S, Class B | | | 1.0 | |
| |
Total | | | 16.0 | % |
See Endnotes and Additional Disclosures in this report.
Eaton Vance
Global Income Builder NextShares
October 31, 2021
Endnotes and Additional Disclosures
1 | The views expressed in this report are those of the portfolio manager(s) and are current only through the date stated at the top of this page. These views are subject to change at any time based upon market or other conditions, and Eaton Vance and the Fund(s) disclaim any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Eaton Vance fund. This commentary may contain statements that are not historical facts, referred to as “forward-looking statements.” The Fund’s actual future results may differ significantly from those stated in any forward-looking statement, depending on factors such as changes in securities or financial markets or general economic conditions, the volume of sales and purchases of Fund shares, the continuation of investment advisory, administrative and service contracts, and other risks discussed from time to time in the Fund’s filings with the Securities and Exchange Commission. |
2 | MSCI World Index is an unmanaged index of equity securities in the developed markets. MSCI indexes are net of foreign withholding taxes. Source: MSCI. MSCI data may not be reproduced or used for any other purpose. MSCI provides no warranties, has not prepared or approved this report, and has no liability hereunder. ICE BofA Developed Markets High Yield Ex-Subordinated Financial Index is an unmanaged index of global developed market, below investment grade corporate bonds. ICE® BofA® indices are not for redistribution or other uses; provided “as is”, without warranties, and with no liability. Eaton Vance has prepared this report and ICE Data Indices, LLC does not endorse it, or guarantee, review, or endorse Eaton Vance’s products. BofA® is a licensed registered trademark of Bank of America Corporation in the United States and other countries. The Blended Index consists of 65% MSCI World Index and 35% ICE BofA Developed Markets High Yield Ex-Subordinated Financial Index, rebalanced monthly. Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index. Performance since inception for an index, if presented, is the performance since the Fund’s or oldest share class’ inception, as applicable. |
3 | Shares of NextShares funds are normally bought and sold in the secondary market through a broker, and may not be individually purchased or redeemed from the fund. In the secondary market, buyers and sellers transact with each other, rather than with the fund. NextShares funds issue and redeem shares only in specified creation unit quantities in transactions by or through Authorized Participants. In such transactions, a fund issues and redeems shares in exchange for the basket of securities, other instruments and/or cash that the fund specifies each business day. By transacting in kind, a NextShares fund can lower its trading costs and enhance fund tax efficiency by avoiding forced sales of securities to meet redemptions. Redemptions may be effected partially or entirely in cash when in-kind delivery is not practicable or deemed not in the best interests of shareholders. A fund’s basket is not intended to be representative of the fund’s current portfolio positions and may vary significantly from current positions. As exchange-traded securities, NextShares can operate with low transfer agency expenses by utilizing the same highly efficient share processing system as used for exchange-listed stocks and exchange-traded funds. Market trading prices of NextShares are linked to the fund’s next-computed net asset value (NAV) and will vary from NAV by a market-determined premium or discount, which may be zero. Buyers and |
| sellers of NextShares will not know the value of their purchases and sales until after the fund’s NAV is determined at the end of the trading day. Market trading prices may vary significantly from anticipated levels. NextShares do not offer investors the opportunity to buy and sell intraday based on current (versus end-of-day) determinations of fund value. NextShares trade execution prices will fluctuate based on changes in NAV. Although limit orders may be used to control trading costs, they cannot be used to control or limit trade execution prices. As a new type of fund, NextShares have a limited operating history and may initially be available through a limited number of brokers. There can be no guarantee that an active trading market for NextShares will develop or be maintained, or that their listing will continue unchanged. Buying and selling NextShares may require payment of brokerage commissions and expose transacting shareholders to other trading costs. Frequent trading may detract from realized investment returns. The return on a shareholder’s NextShares investment will be reduced if the shareholder sells shares at a greater discount or narrower premium to NAV than he or she acquired the shares. |
4 | The Fund pursues its investment objective by investing in a separate investment fund (the Portfolio). The returns at NAV for periods before the date the Fund commenced operations are for a mutual fund that invests in the Portfolio (the Portfolio Investor). The performance during such period does not represent the performance of the Fund. The prior investment performance of the Portfolio Investor (rather than the Portfolio itself) is shown because it reflects the expenses typically borne by a retail fund investing in the Portfolio. The Portfolio Investor returns are not adjusted to reflect differences between the total net operating expenses of the Fund and the Portfolio Investor during the periods shown. If such an adjustment were made, the performance presented would be higher, because the Fund’s total net operating expenses are lower than those of the Portfolio Investor. Performance is for a share class of the Portfolio Investor offered at net asset value. Performance presented in the Financial Highlights included in the financial statements is not linked. |
Prior to December 7, 2015, the Portfolio Investor invested at least 80% of net assets in dividend-paying common and preferred stocks. Effective December 7, 2015, the Portfolio Investor changed its name and its principal investment strategies to invest in common stocks, preferred stocks and other hybrid securities and income instruments of U.S. and foreign issuers. As of such date, the Portfolio Investor was no longer required to invest at least 80% of its net assets in dividend-paying common and preferred stocks.
5 | Source: Fund prospectus. Net expense ratios reflect a contractual expense reimbursement that continues through 2/28/22. Without the reimbursement, performance would have been lower. The expense ratio for the current reporting period can be found in the Financial Highlights section of this report. |
6 | Fund primarily invests in an affiliated investment company (Portfolio) with substantially the same objective(s) and policies as the Fund and may also invest directly. Unless otherwise noted, references to investments are to the aggregate holdings of the Fund and the Portfolio. |
7 | Excludes cash and cash equivalents. |
8 | Other Net Assets represents other assets less liabilities and includes any investment type that represents less than 1% of net assets. |
Eaton Vance
Global Income Builder NextShares
October 31, 2021
Endnotes and Additional Disclosures — continued
Fund profile subject to change due to active management.
Additional Information
S&P 500® Index is an unmanaged index of large-cap stocks commonly used as a measure of U.S. stock market performance. S&P Dow Jones Indices are a product of S&P Dow Jones Indices LLC (“S&P DJI”) and have been licensed for use. S&P® and S&P 500® are registered trademarks of S&P DJI; Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); S&P DJI, Dow Jones and their respective affiliates do not sponsor, endorse, sell or promote the Fund, will not have any liability with respect thereto and do not have any liability for any errors, omissions, or interruptions of the S&P Dow Jones Indices. Nasdaq Composite Index is a market capitalization- weighted index of all domestic and international securities listed on Nasdaq. Source: Nasdaq, Inc. The information is provided by Nasdaq (with its affiliates, are referred to as the “Corporations”) and Nasdaq’s third party licensors on an “as is” basis and the Corporations make no guarantees and bear no liability of any kind with respect to the information or the Fund. MSCI Golden Dragon Index is an unmanaged index of common stocks traded in China, Hong Kong and Taiwan. MSCI EAFE Index is an unmanaged index of equities in the developed markets, excluding the U.S. and Canada. MSCI Emerging Markets Index is an unmanaged index of emerging markets common stocks.
Eaton Vance
Global Income Builder NextShares
October 31, 2021
Fund Expenses
Example: As a Fund shareholder, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of Fund investing and to compare these costs with the ongoing costs of investing in other funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2021 – October 31, 2021).
Actual Expenses: The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes: The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the actual Fund expense ratio and an assumed rate of return of 5% per year (before expenses), which is not the actual Fund return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions on purchases and sales of Fund shares. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would be higher.
| | | | | | | | | | | | | | | | |
| | Beginning Account Value (5/1/21) | | | Ending Account Value (10/31/21) | | | Expenses Paid During Period* (5/1/21 – 10/31/21) | | | Annualized Expense Ratio | |
| | | | |
Actual | | | | | | | | | | | | | | | | |
| | $ | 1,000.00 | | | $ | 1,060.50 | | | $ | 4.41 | ** | | | 0.85 | % |
| | | | |
Hypothetical | | | | | | | | | | | | | | | | |
(5% return per year before expenses) | | | | | | | | | | | | | | | | |
| | $ | 1,000.00 | | | $ | 1,020.92 | | | $ | 4.33 | ** | | | 0.85 | % |
* | Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on April 30, 2021. The Example reflects the expenses of both the Fund and the Portfolio. |
** | Absent an allocation of certain expenses to affiliates, expenses would be higher. |
Eaton Vance
Global Income Builder NextShares
October 31, 2021
Statement of Assets and Liabilities
| | | | |
Assets | | October 31, 2021 | |
| |
Investment in Global Income Builder Portfolio, at value (identified cost, $0) | | $ | 1,283,917 | |
| |
Receivable from affiliates | | | 9,675 | |
| |
Total assets | | $ | 1,293,592 | |
| |
Liabilities | | | | |
| |
Payable to affiliates: | | | | |
| |
Administration fee | | $ | 496 | |
| |
Operations agreement fee | | | 165 | |
| |
Trustees’ fees | | | 42 | |
| |
Accrued expenses | | | 63,579 | |
| |
Total liabilities | | $ | 64,282 | |
| |
Net Assets | | $ | 1,229,310 | |
| |
Sources of Net Assets | | | | |
| |
Paid-in capital | | $ | 4,753,541 | |
| |
Accumulated loss | | | (3,524,231 | ) |
| |
Total | | $ | 1,229,310 | |
| |
Net Asset Value Per Share | | | | |
| |
($1,229,310 ÷ 100,000 shares issued and outstanding) | | $ | 12.29 | |
| | | | |
| | 8 | | See Notes to Financial Statements. |
Eaton Vance
Global Income Builder NextShares
October 31, 2021
Statement of Operations
| | | | |
Investment Income | | Year Ended October 31, 2021 | |
| |
Interest allocated from Portfolio (net of foreign taxes, $208) | | $ | 137,021 | |
| |
Dividends allocated from Portfolio (net of foreign taxes, $10,398) | | | 114,411 | |
| |
Expenses allocated from Portfolio | | | (43,968 | ) |
| |
Total investment income from Portfolio | | $ | 207,464 | |
| |
Expenses | | | | |
| |
Administration fee | | $ | 10,031 | |
| |
Operations agreement fee | | | 3,344 | |
| |
Trustees’ fees and expenses | | | 500 | |
| |
Custodian fee | | | 18,049 | |
| |
Transfer and dividend disbursing agent fees | | | 13,770 | |
| |
Legal and accounting services | | | 23,161 | |
| |
Printing and postage | | | 8,214 | |
| |
Listing fee | | | 7,900 | |
| |
Intraday pricing fee | | | 12,000 | |
| |
Miscellaneous | | | 3,505 | |
| |
Total expenses | | $ | 100,474 | |
| |
Deduct — | | | | |
| |
Allocation of expenses to affiliates | | $ | 87,440 | |
| |
Total expense reductions | | $ | 87,440 | |
| |
Net expenses | | $ | 13,034 | |
| |
Net investment income | | $ | 194,430 | |
| |
Realized and Unrealized Gain (Loss) | | | | |
| |
Net realized gain (loss) — | | | | |
| |
Investment transactions — affiliated Portfolio | | $ | 226,126 | |
| |
Net realized gain (loss) allocated from affiliated Portfolio — | | | | |
| |
Investment transactions (net of foreign capital gains taxes of $76) | | | 290,339 | (1) |
| |
Financial futures contracts | | | 7,260 | |
| |
Foreign currency transactions | | | (2,614 | ) |
| |
Forward foreign currency exchange contracts | | | 99 | |
| |
Net realized gain | | $ | 521,210 | |
| |
Change in unrealized appreciation (depreciation) — | | | | |
| |
Investments — affiliated Portfolio | | $ | (226,126 | ) |
| |
Change in unrealized appreciation (depreciation) allocated from affiliated Portfolios — | | | | |
| |
Investments | | | 1,074,393 | |
| |
Financial futures contracts | | | (4,032 | ) |
| |
Foreign currency | | | 1,424 | |
| |
Forward foreign currency exchange contracts | | | 294 | |
| |
Net change in unrealized appreciation (depreciation) | | $ | 845,953 | |
| |
Net realized and unrealized gain | | $ | 1,367,163 | |
| |
Net increase in net assets from operations | | $ | 1,561,593 | |
(1) | Includes $65,181 of net realized gains from redemptions in-kind. |
| | | | |
| | 9 | | See Notes to Financial Statements. |
Eaton Vance
Global Income Builder NextShares
October 31, 2021
Statements of Changes in Net Assets
| | | | | | | | |
| |
| | Year Ended October 31, | |
Increase (Decrease) in Net Assets | | 2021 | | | 2020 | |
| | |
From operations — | | | | | | | | |
| | |
Net investment income | | $ | 194,430 | | | $ | 238,867 | |
| | |
Net realized gain (loss) | | | 521,210 | (1) | | | (48,415 | ) |
| | |
Net change in unrealized appreciation (depreciation) | | | 845,953 | | | | (76,412 | ) |
| | |
Net increase in net assets from operations | | $ | 1,561,593 | | | $ | 114,040 | |
| | |
Distributions to shareholders | | $ | (247,140 | ) | | $ | (212,708 | ) |
| | |
Transactions in Fund shares — | | | | | | | | |
| | |
Cost of shares redeemed | | $ | (5,959,180 | ) | | $ | (215,826 | ) |
| | |
Transaction fees | | | 659 | | | | 971 | |
| | |
Net decrease in net assets from Fund share transactions | | $ | (5,958,521 | ) | | $ | (214,855 | ) |
| | |
Other capital — | | | | | | | | |
| | |
Portfolio transaction fee contributed to Portfolio | | $ | (1,634 | ) | | $ | (1,994 | ) |
| | |
Portfolio transaction fee allocated from Portfolio | | | 3,446 | | | | 4,665 | |
| | |
Net increase in net assets from other capital | | $ | 1,812 | | | $ | 2,671 | |
| | |
Net decrease in net assets | | $ | (4,642,256 | ) | | $ | (310,852 | ) |
| | |
Net Assets | | | | | | | | |
| | |
At beginning of year | | $ | 5,871,566 | | | $ | 6,182,418 | |
| | |
At end of year | | $ | 1,229,310 | | | $ | 5,871,566 | |
| | |
Changes in shares outstanding | | | | | | | | |
| | |
Shares outstanding, beginning of year | | | 600,000 | | | | 625,000 | |
| | |
Shares redeemed | | | (500,000 | ) | | | (25,000 | ) |
| | |
Shares outstanding, end of year | | | 100,000 | | | | 600,000 | |
(1) | Includes $65,181 of net realized gains from redemptions in-kind. |
| | | | |
| | 10 | | See Notes to Financial Statements. |
Eaton Vance
Global Income Builder NextShares
October 31, 2021
Financial Highlights
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended October 31, | |
| | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| | | | | |
Net asset value — Beginning of year | | $ | 9.790 | | | $ | 9.890 | | | $ | 9.990 | | | $ | 11.200 | | | $ | 10.140 | |
| | | | | |
Income (Loss) From Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(2) | | $ | 0.338 | | | $ | 0.390 | | | $ | 0.469 | | | $ | 0.358 | | | $ | 0.502 | |
| | | | | |
Net realized and unrealized gain (loss) | | | 2.571 | | | | (0.147 | ) | | | 0.535 | | | | (0.435 | ) | | | 1.073 | |
| | | | | |
Total income (loss) from operations | | $ | 2.909 | | | $ | 0.243 | | | $ | 1.004 | | | $ | (0.077 | ) | | $ | 1.575 | |
| | | | | |
Less Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
From net investment income | | $ | (0.412 | ) | | $ | (0.347 | ) | | $ | (0.369 | ) | | $ | (1.083 | ) | | $ | (0.519 | ) |
| | | | | |
From net realized gain | | | — | | | | — | | | | (0.608 | ) | | | (0.051 | ) | | | — | |
| | | | | |
Tax return of capital | | | — | | | | — | | | | (0.130 | ) | | | — | | | | — | |
| | | | | |
Total distributions | | $ | (0.412 | ) | | $ | (0.347 | ) | | $ | (1.107 | ) | | $ | (1.134 | ) | | $ | (0.519 | ) |
| | | | | |
Portfolio transaction fee, net(2) | | $ | 0.003 | | | $ | 0.004 | | | $ | 0.003 | | | $ | 0.001 | | | $ | 0.004 | |
| | | | | |
Net asset value — End of year | | $ | 12.290 | | | $ | 9.790 | | | $ | 9.890 | | | $ | 9.990 | | | $ | 11.200 | |
| | | | | |
Total Return on Net Asset Value(3)(4) | | | 30.18 | % | | | 2.57 | % | | | 11.48 | % | | | (1.10 | )% | | | 15.89 | % |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of year (000’s omitted) | | $ | 1,229 | | | $ | 5,872 | | | $ | 6,182 | | | $ | 6,243 | | | $ | 6,720 | |
| | | | | |
Ratios (as a percentage of average daily net assets):(5) | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses(4) | | | 0.85 | % | | | 0.85 | % | | | 0.88 | % | | | 0.91 | %(6) | | | 0.91 | %(6) |
| | | | | |
Net investment income | | | 2.91 | % | | | 4.02 | % | | | 4.91 | % | | | 3.32 | % | | | 4.71 | % |
| | | | | |
Portfolio Turnover of the Portfolio | | | 60 | % | | | 118 | % | | | 86 | % | | | 102 | % | | | 143 | % |
(1) | Per share data reflect a 2-for-1 share split effective March 9, 2018. |
(2) | Computed using average shares outstanding. |
(3) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of a market-determined premium or discount. Investment returns assume that all distributions have been reinvested at net asset value. |
(4) | The administrator and sub-adviser reimbursed certain operating expenses (equal to 1.31%, 2.08%, 1.70%, 1.57% and 0.57% of average daily net assets for the years ended October 31, 2021, 2020, 2019, 2018 and 2017, respectively). Absent this reimbursement, total return would be lower. |
(5) | Includes the Fund’s share of the Portfolio’s allocated expenses. |
(6) | Includes interest expense, including allocated from the Portfolio of 0.01% and 0.01% for the years ended October 31, 2018 and October 31, 2017, respectively. |
| | | | |
| | 11 | | See Notes to Financial Statements. |
Eaton Vance
Global Income Builder NextShares
October 31, 2021
Notes to Financial Statements
1 Significant Accounting Policies
Eaton Vance Global Income Builder NextShares (the Fund) is a diversified series of Eaton Vance NextShares Trust (the Trust), a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act). The Fund is an exchange-traded managed fund operating pursuant to an order issued by the SEC granting an exemption from certain provisions of the 1940 Act. Individual shares of the Fund may be purchased and sold only on a national securities exchange or alternative trading system through a broker-dealer that offers NextShares, and may not be directly purchased or redeemed from the Fund. Market trading prices for the Fund are directly linked to the Fund’s next-computed net asset value per share (NAV) and will vary from NAV by a market-determined premium or discount, which may be zero. The Fund invests all of its investable assets in interests in Global Income Builder Portfolio (the Portfolio), a Massachusetts business trust having substantially the same investment objective and policies as the Fund. The value of the Fund’s investment in the Portfolio reflects the Fund’s proportionate interest in the net assets of the Portfolio (0.4% at October 31, 2021). The performance of the Fund is directly affected by the performance of the Portfolio. The financial statements of the Portfolio, including the portfolio of investments, are included elsewhere in this report and should be read in conjunction with the Fund’s financial statements.
The following is a summary of significant accounting policies of the Fund. The policies are in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The Fund 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 — Valuation of securities by the Portfolio is discussed in Note 1A of the Portfolio’s Notes to Financial Statements, which are included elsewhere in this report.
B Income — The Fund’s net investment income or loss consists of the Fund’s pro-rata share of the net investment income or loss of the Portfolio, less all actual and accrued expenses of the Fund.
C Federal Taxes — The Fund’s policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its net investment income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary.
As of October 31, 2021, the Fund had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. The Fund 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.
D Expenses — The majority of expenses of the Trust are directly identifiable to an individual fund. Expenses which are not readily identifiable to a specific fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the funds.
E 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.
F Indemnifications — Under the Trust’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 Fund. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as the Trust) could be deemed to have personal liability for the obligations of the Trust. However, the Trust’s Declaration of Trust contains an express disclaimer of liability on the part of Fund shareholders and the By-laws provide that the Trust shall assume, upon request by the shareholder, the defense on behalf of any Fund shareholders. Moreover, the By-laws also provide for indemnification out of Fund property of any shareholder held personally liable solely by reason of being or having been a shareholder for all loss or expense arising from such liability. Additionally, in the normal course of business, the Fund enters into agreements with service providers that may contain indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.
G Other — Investment transactions are accounted for on a trade date basis.
2 Distributions to Shareholders and Income Tax Information
It is the present policy of the Fund to make monthly distributions of all or substantially all of its net investment income and to distribute annually all or substantially all of its net realized capital gains. Distributions are paid in cash and cannot be automatically reinvested in additional shares of the Fund. Distributions to shareholders are recorded on the ex-dividend date. Distributions to shareholders are determined in accordance with income tax regulations, which may differ from U.S. GAAP. As required by U.S. GAAP, only distributions in excess of tax basis earnings and profits are reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.
Eaton Vance
Global Income Builder NextShares
October 31, 2021
Notes to Financial Statements — continued
The tax character of distributions declared for the years ended October 31, 2021 and October 31, 2020 was as follows:
| | | | | | | | |
| | Year Ended October 31, | |
| | 2021 | | | 2020 | |
| | |
Ordinary income | | $ | 247,140 | | | $ | 212,708 | |
During the year ended October 31, 2021, accumulated loss was increased by $2,765,287 and paid-in capital was increased by $2,765,287 due to the Fund’s use of equalization accounting, the Fund’s investment in the Portfolio and redemptions in-kind. Tax equalization accounting allows the Fund to treat as a distribution that portion of redemption proceeds representing a redeeming shareholder’s portion of undistributed taxable income and net capital gains. These reclassifications had no effect on the net assets or net asset value per share of the Fund.
As of October 31, 2021, the components of distributable earnings (accumulated loss) on a tax basis were as follows:
| | | | |
| |
Undistributed ordinary income | | $ | 1,530 | |
| |
Undistributed long-term capital gains | | | 24,972 | |
| |
Net unrealized depreciation | | | (3,550,733 | ) |
| |
Accumulated loss | | $ | (3,524,231 | ) |
3 Investment Adviser, Administration Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Eaton Vance Management (EVM) as compensation for investment advisory services rendered to the Fund. On March 1, 2021, Morgan Stanley acquired Eaton Vance Corp. (the “Transaction”) and EVM became an indirect, wholly-owned subsidiary of Morgan Stanley. In connection with the Transaction, the Fund entered into a new investment advisory and administrative agreement (the “New Agreement”) with EVM, which took effect on March 1, 2021. The Fund’s prior fee reduction agreement was incorporated into the New Agreement. Pursuant to the New Agreement (and the Fund’s investment advisory and administrative agreement and related fee reduction agreement with EVM in effect prior to March 1, 2021), the investment adviser fee is computed at an annual rate as a percentage of the Fund’s average daily net assets that are not invested in other investment companies for which EVM or its affiliates serve as investment adviser and receive an advisory fee as follows and is payable monthly:
| | | | |
Average Daily Net Assets | | Annual Fee Rate | |
| |
Up to $500 million | | | 0.550 | % |
| |
$500 million but less than $1 billion | | | 0.525 | % |
| |
$1 billion but less than $2.5 billion | | | 0.500 | % |
| |
$2.5 billion and over | | | 0.475 | % |
For the year ended October 31, 2021, the Fund incurred no investment adviser fee on such assets.
Pursuant to an investment sub-advisory agreement, EVM has delegated a portion of the investment management of the Fund to Eaton Vance Advisers International Ltd. (EVAIL), an affiliate of EVM and, effective March 1, 2021, an indirect, wholly-owned subsidiary of Morgan Stanley. In connection with the Transaction, EVM entered into a new sub-advisory agreement with EVAIL, which took effect on March 1, 2021. EVM pays EVAIL a portion of its investment adviser fee for sub-advisory services provided to the Fund. To the extent the Fund’s assets are invested in the Portfolio, the Fund is allocated its share of the Portfolio’s investment adviser fee. The Portfolio has engaged Boston Management and Research (BMR), a subsidiary of EVM, to render investment advisory services. See Note 2 of the Portfolio’s Notes to Financial Statements which are included elsewhere in this report. The administration fee is earned by EVM for administering the business affairs of the Fund. Pursuant to the New Agreement (and the Fund’s investment advisory and administrative agreement in effect prior to March 1, 2021), the administration fee is computed at an annual rate of 0.15% of the Fund’s average daily net assets. For the year ended October 31, 2021, the administration fee amounted to $10,031.
The Trust, on behalf of the Fund, has entered into an operations agreement with EVM pursuant to which EVM provides the Fund with services required for it to operate as a NextShares exchange-traded managed fund in accordance with the exemptive order obtained by EVM and the Trust. Pursuant to the agreement, the Fund pays EVM a monthly fee at an annual rate of 0.05% of the Fund’s average daily net assets provided the average net assets of NextShares funds sponsored by EVM (“Covered Assets”) are less than $10 billion. The annual rate is reduced if Covered Assets are $10 billion and above. For the year ended October 31, 2021, the operations agreement fee amounted to $3,344 or 0.05% of the Fund’s average daily net assets.
Eaton Vance
Global Income Builder NextShares
October 31, 2021
Notes to Financial Statements — continued
EVM and EVAIL have agreed to reimburse the Fund’s expenses to the extent that total annual operating expenses (relating to ordinary operating expenses only and excluding such expenses as borrowing costs, taxes or litigation expenses) exceed 0.85% of the Fund’s average daily net assets through February 28, 2022. Thereafter, the reimbursement may be changed or terminated at any time. Pursuant to this agreement, EVM and EVAIL were allocated $87,440 in total of the Fund’s operating expenses for the year ended October 31, 2021.
Trustees and officers of the Fund who are members of EVM’s or BMR’s organizations receive remuneration for their services to the Fund out of the investment adviser fee. Certain officers and Trustees of the Fund and the Portfolio are officers of the above organizations.
4 Investment Transactions
For the year ended October 31, 2021, increases and decreases in the Fund’s investment in the Portfolio aggregated $188,852 and $6,383,155, respectively. In addition, a Portfolio transaction fee is imposed by the Portfolio on the combined daily inflows or outflows of the Fund and the Portfolio’s other investors as more fully described at Note 1L of the Portfolio’s financial statements included herein. Such fee is allocated to the Fund based on its pro-rata interest in the Portfolio. The amount of the Portfolio transaction fee imposed on the Fund, if any, and the allocation of such fee are presented as Other capital on the Statements of Changes in Net Assets.
5 Capital Share Transactions
The Trust may issue an unlimited number of shares of capital stock (no par value per share) in one or more series (such as the Fund). The Fund issues and redeems shares only in blocks of 25,000 shares or multiples thereof (“Creation Units”). The Fund issues and redeems Creation Units in return for the securities, other instruments and/or cash (the “Basket”) that the Fund specifies each business day. Creation Units may be purchased or redeemed only by or through Authorized Participants, which are broker-dealers or institutional investors that have entered into agreements with the Fund’s distributor for this purpose. The Fund imposes a transaction fee on Creation Units issued and redeemed to offset the estimated cost to the Fund of processing the transaction, which is paid by the Authorized Participants directly to a third-party administrator. In addition, Authorized Participants pay the Fund a variable charge for converting the Basket to or from the desired portfolio composition. Such variable charges are reflected as Transaction fees on the Statements of Changes in Net Assets.
At October 31, 2021, EVM owned approximately 81% of the outstanding shares of the Fund.
Eaton Vance
Global Income Builder NextShares
October 31, 2021
Report of Independent Registered Public Accounting Firm
To the Trustees of Eaton Vance NextShares Trust and Shareholders of Eaton Vance Global Income Builder NextShares:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Eaton Vance Global Income Builder NextShares (the “Fund”) (one of the funds constituting Eaton Vance NextShares Trust), as of October 31, 2021, 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of October 31, 2021, and 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.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
December 21, 2021
We have served as the auditor of one or more Eaton Vance investment companies since 1959.
Eaton Vance
Global Income Builder NextShares
October 31, 2021
Federal Tax Information (Unaudited)
The Form 1099-DIV you receive in February 2022 will show the tax status of all distributions paid to your account in calendar year 2021. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their investment in the Fund. As required by the Internal Revenue Code and/or regulations, shareholders must be notified regarding the status of qualified business income, qualified dividend income for individuals, the dividends received deduction for corporations, 163(j) interest dividends and capital gains dividends.
Qualified Business Income. For the fiscal year ended October 31, 2021, the Fund designates $1,309, or up to the maximum amount of such dividends allowable pursuant to the Internal Revenue Code, as qualified business income.
Qualified Dividend Income. For the fiscal year ended October 31, 2021, the Fund designates approximately $122,643, or up to the maximum amount of such dividends allowable pursuant to the Internal Revenue Code, as qualified dividend income eligible for the reduced tax rate of 15%.
Dividends Received Deduction. Corporate shareholders are generally entitled to take the dividends received deduction on the portion of the Fund’s dividend distribution that qualifies under tax law. For the Fund’s fiscal 2021 ordinary income dividends, 13.32% qualifies for the corporate dividends received deduction.
163(j) Interest Dividends. For the fiscal year ended October 31, 2021, the Fund designates 43.08% of distributions from net investment income as a 163(j) interest dividend.
Capital Gains Dividends. The Fund hereby designates as a capital gain dividend with respect to the taxable year ended October 31, 2021, $64,769 or, if subsequently determined to be different, the net capital gain of such year.
Global Income Builder Portfolio
October 31, 2021
Portfolio of Investments
| | | | | | | | | | |
Common Stocks — 61.1% | |
Security | | | | Shares | | | Value | |
|
Aerospace & Defense — 0.4% | |
| | | |
Safran S.A. | | | | | 9,060 | | | $ | 1,219,383 | |
| |
| | | $ | 1,219,383 | |
|
Air Freight & Logistics — 0.3% | |
| | | |
GXO Logistics, Inc.(1) | | | | | 11,861 | | | $ | 1,053,257 | |
| |
| | | $ | 1,053,257 | |
|
Automobiles — 0.4% | |
| | | |
Stellantis NV | | | | | 67,807 | | | $ | 1,353,729 | |
| |
| | | $ | 1,353,729 | |
|
Banks — 3.9% | |
| | | |
Bank of New York Mellon Corp. (The) | | | | | 55,322 | | | $ | 3,275,063 | |
| | | |
Citigroup, Inc. | | | | | 31,658 | | | | 2,189,467 | |
| | | |
HDFC Bank, Ltd. | | | | | 57,776 | | | | 1,227,822 | |
| | | |
ING Groep NV | | | | | 136,623 | | | | 2,072,421 | |
| | | |
M&T Bank Corp. | | | | | 3,026 | | | | 445,185 | |
| | | |
Mitsubishi UFJ Financial Group, Inc.(2) | | | | | 268,285 | | | | 1,471,139 | |
| | | |
Svenska Handelsbanken AB, Class A | | | | | 117,230 | | | | 1,343,730 | |
| | | |
Wells Fargo & Co. | | | | | 7 | | | | 358 | |
| |
| | | $ | 12,025,185 | |
|
Beverages — 1.9% | |
| | | |
Coca-Cola Co. (The) | | | | | 52,606 | | | $ | 2,965,400 | |
| | | |
Diageo PLC | | | | | 55,570 | | | | 2,764,701 | |
| |
| | | $ | 5,730,101 | |
|
Biotechnology — 0.6% | |
| | | |
CSL, Ltd. | | | | | 8,140 | | | $ | 1,852,178 | |
| |
| | | $ | 1,852,178 | |
|
Building Products — 1.0% | |
| | | |
Assa Abloy AB, Class B | | | | | 52,807 | | | $ | 1,549,497 | |
| | | |
Kingspan Group PLC | | | | | 12,199 | | | | 1,404,410 | |
| |
| | | $ | 2,953,907 | |
|
Chemicals — 0.5% | |
| | | |
Sika AG | | | | | 4,143 | | | $ | 1,403,564 | |
| |
| | | $ | 1,403,564 | |
| | | | | | | | | | |
Security | | | | Shares | | | Value | |
|
Construction Materials — 0.6% | |
| | | |
CRH PLC | | | | | 37,741 | | | $ | 1,806,051 | |
| |
| | | $ | 1,806,051 | |
|
Consumer Finance — 0.0%(3) | |
| | | |
Capital One Financial Corp. | | | | | 4 | | | $ | 604 | |
| |
| | | $ | 604 | |
|
Diversified Financial Services — 1.5% | |
| | | |
Berkshire Hathaway, Inc., Class B(1) | | | | | 10,704 | | | $ | 3,072,155 | |
| | | |
Industrivarden AB, Class A | | | | | 1,803 | | | | 59,478 | |
| | | |
ORIX Corp. | | | | | 71,345 | | | | 1,418,074 | |
| |
| | | $ | 4,549,707 | |
|
Electric Utilities — 1.0% | |
| | | |
Iberdrola S.A. | | | | | 132,847 | | | $ | 1,570,142 | |
| | | |
NextEra Energy, Inc. | | | | | 18,310 | | | | 1,562,393 | |
| |
| | | $ | 3,132,535 | |
|
Electrical Equipment — 1.6% | |
| | | |
AMETEK, Inc. | | | | | 19,923 | | | $ | 2,637,805 | |
| | | |
Schneider Electric SE | | | | | 13,399 | | | | 2,310,230 | |
| |
| | | $ | 4,948,035 | |
|
Electronic Equipment, Instruments & Components — 2.5% | |
| | | |
CDW Corp. | | | | | 10,639 | | | $ | 1,985,769 | |
| | | |
Halma PLC | | | | | 31,661 | | | | 1,283,958 | |
| | | |
Keyence Corp. | | | | | 2,633 | | | | 1,589,317 | |
| | | |
Murata Manufacturing Co., Ltd. | | | | | 12,079 | | | | 896,003 | |
| | | |
TE Connectivity, Ltd. | | | | | 13,020 | | | | 1,900,920 | |
| | | |
Zebra Technologies Corp., Class A(1) | | | | | 8 | | | | 4,272 | |
| |
| | | $ | 7,660,239 | |
|
Entertainment — 1.3% | |
| | | |
Nintendo Co., Ltd. | | | | | 1,662 | | | $ | 734,034 | |
| | | |
Walt Disney Co. (The)(1) | | | | | 18,911 | | | | 3,197,283 | |
| |
| | | $ | 3,931,317 | |
|
Equity Real Estate Investment Trusts (REITs) — 0.5% | |
| | | |
American Tower Corp. | | | | | 3,987 | | | $ | 1,124,214 | |
| | | |
Equity Residential | | | | | 5,370 | | | | 463,968 | |
| |
| | | $ | 1,588,182 | |
| | | | |
| | 17 | | See Notes to Financial Statements. |
Global Income Builder Portfolio
October 31, 2021
Portfolio of Investments — continued
| | | | | | | | | | |
Security | | | | Shares | | | Value | |
|
Food Products — 1.9% | |
| | | |
Mondelez International, Inc., Class A | | | | | 40,179 | | | $ | 2,440,472 | |
| | | |
Nestle S.A. | | | | | 26,676 | | | | 3,518,756 | |
| |
| | | $ | 5,959,228 | |
|
Health Care Equipment & Supplies — 3.0% | |
| | | |
Alcon, Inc. | | | | | 23,498 | | | $ | 1,948,419 | |
| | | |
Boston Scientific Corp.(1) | | | | | 64,967 | | | | 2,802,027 | |
| | | |
Intuitive Surgical, Inc.(1) | | | | | 6,540 | | | | 2,361,790 | |
| | | |
Straumann Holding AG | | | | | 971 | | | | 2,021,328 | |
| |
| | | $ | 9,133,564 | |
|
Health Care Providers & Services — 0.6% | |
| | | |
Anthem, Inc. | | | | | 4,192 | | | $ | 1,824,065 | |
| |
| | | $ | 1,824,065 | |
|
Hotels, Restaurants & Leisure — 0.8% | |
| | | |
Compass Group PLC(1) | | | | | 65,010 | | | $ | 1,379,554 | |
| | | |
InterContinental Hotels Group PLC(1) | | | | | 13,920 | | | | 975,056 | |
| |
| | | $ | 2,354,610 | |
|
Industrial Conglomerates — 0.3% | |
| | | |
DCC PLC | | | | | 10,942 | | | $ | 913,004 | |
| |
| | | $ | 913,004 | |
|
Insurance — 1.0% | |
| | | |
Allstate Corp. (The) | | | | | 9,355 | | | $ | 1,156,933 | |
| | | |
Aviva PLC | | | | | 71,847 | | | | 387,680 | |
| | | |
AXA S.A. | | | | | 51,955 | | | | 1,511,526 | |
| |
| | | $ | 3,056,139 | |
|
Interactive Media & Services — 4.4% | |
| | | |
Alphabet, Inc., Class C(1) | | | | | 3,250 | | | $ | 9,637,582 | |
| | | |
Meta Platforms, Inc., Class A(1) | | | | | 10,056 | | | | 3,253,820 | |
| | | |
Tencent Holdings, Ltd. | | | | | 8,157 | | | | 496,189 | |
| |
| | | $ | 13,387,591 | |
|
Internet & Direct Marketing Retail — 2.0% | |
| | | |
Amazon.com, Inc.(1) | | | | | 1,861 | | | $ | 6,276,092 | |
| |
| | | $ | 6,276,092 | |
|
IT Services — 1.9% | |
| | | |
Amadeus IT Group S.A.(1) | | | | | 23,996 | | | $ | 1,605,281 | |
| | | |
Fidelity National Information Services, Inc. | | | | | 10,166 | | | | 1,125,783 | |
| | | | | | | | | | |
Security | | | | Shares | | | Value | |
|
IT Services (continued) | |
| | | |
Global Payments, Inc. | | | | | 6,453 | | | $ | 922,715 | |
| | | |
Visa, Inc., Class A | | | | | 10,446 | | | | 2,212,149 | |
| |
| | | $ | 5,865,928 | |
|
Leisure Products — 0.6% | |
| | | |
Yamaha Corp. | | | | | 31,555 | | | $ | 1,993,584 | |
| |
| | | $ | 1,993,584 | |
|
Life Sciences Tools & Services — 0.6% | |
| | | |
Lonza Group AG | | | | | 2,291 | | | $ | 1,882,745 | |
| |
| | | $ | 1,882,745 | |
|
Machinery — 2.1% | |
| | | |
Graco, Inc. | | | | | 12,271 | | | $ | 922,534 | |
| | | |
Ingersoll Rand, Inc.(1) | | | | | 24,552 | | | | 1,319,916 | |
| | | |
Sandvik AB | | | | | 57,663 | | | | 1,462,259 | |
| | | |
SMC Corp. | | | | | 2,204 | | | | 1,315,270 | |
| | | |
Stanley Black & Decker, Inc. | | | | | 8,085 | | | | 1,453,117 | |
| |
| | | $ | 6,473,096 | |
|
Metals & Mining — 0.5% | |
| | | |
Rio Tinto, Ltd. | | | | | 21,801 | | | $ | 1,493,646 | |
| |
| | | $ | 1,493,646 | |
|
Mortgage Real Estate Investment Trusts (REITs) — 0.2% | |
| | | |
AGNC Investment Corp. | | | | | 45,811 | | | $ | 729,311 | |
| |
| | | $ | 729,311 | |
|
Multi-Utilities — 0.2% | |
| | | |
CMS Energy Corp. | | | | | 10,882 | | | $ | 656,729 | |
| |
| | | $ | 656,729 | |
|
Oil, Gas & Consumable Fuels — 2.0% | |
| | | |
Chevron Corp. | | | | | 14,063 | | | $ | 1,610,073 | |
| | | |
EOG Resources, Inc. | | | | | 30,347 | | | | 2,805,884 | |
| | | |
Phillips 66 | | | | | 15,200 | | | | 1,136,656 | |
| | | |
Pioneer Natural Resources Co. | | | | | 2,523 | | | | 471,750 | |
| |
| | | $ | 6,024,363 | |
|
Pharmaceuticals — 5.6% | |
| | | |
AstraZeneca PLC | | | | | 20,980 | | | $ | 2,624,626 | |
| | | |
Eli Lilly & Co. | | | | | 12,153 | | | | 3,096,098 | |
| | | |
Novo Nordisk A/S, Class B | | | | | 28,525 | | | | 3,127,905 | |
| | | | |
| | 18 | | See Notes to Financial Statements. |
Global Income Builder Portfolio
October 31, 2021
Portfolio of Investments — continued
| | | | | | | | | | |
Security | | | | Shares | | | Value | |
|
Pharmaceuticals (continued) | |
| | | |
Roche Holding AG PC | | | | | 7,359 | | | $ | 2,850,832 | |
| | | |
Sanofi | | | | | 26,868 | | | | 2,698,732 | |
| | | |
Zoetis, Inc. | | | | | 12,775 | | | | 2,761,955 | |
| |
| | | $ | 17,160,148 | |
|
Professional Services — 2.6% | |
| | | |
Recruit Holdings Co., Ltd. | | | | | 36,171 | | | $ | 2,406,059 | |
| | | |
RELX PLC | | | | | 96,447 | | | | 2,990,569 | |
| | | |
Verisk Analytics, Inc. | | | | | 11,594 | | | | 2,437,870 | |
| |
| | | $ | 7,834,498 | |
|
Semiconductors & Semiconductor Equipment — 3.5% | |
| | | |
ASML Holding NV | | | | | 5,128 | | | $ | 4,168,549 | |
| | | |
Infineon Technologies AG | | | | | 51,652 | | | | 2,418,932 | |
| | | |
Micron Technology, Inc. | | | | | 26,684 | | | | 1,843,864 | |
| | | |
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | | | | | 19,867 | | | | 2,258,878 | |
| |
| | | $ | 10,690,223 | |
|
Software — 4.5% | |
| | | |
Adobe, Inc.(1) | | | | | 2,509 | | | $ | 1,631,753 | |
| | | |
Dassault Systemes SE | | | | | 31,575 | | | | 1,843,897 | |
| | | |
Intuit, Inc. | | | | | 3,022 | | | | 1,891,742 | |
| | | |
Microsoft Corp. | | | | | 25,735 | | | | 8,534,241 | |
| |
| | | $ | 13,901,633 | |
|
Specialty Retail — 1.4% | |
| | | |
Lowe’s Cos., Inc. | | | | | 10,022 | | | $ | 2,343,344 | |
| | | |
TJX Cos., Inc. (The) | | | | | 31,461 | | | | 2,060,381 | |
| |
| | | $ | 4,403,725 | |
|
Technology Hardware, Storage & Peripherals — 1.4% | |
| | | |
Apple, Inc. | | | | | 28,477 | | | $ | 4,265,855 | |
| |
| | | $ | 4,265,855 | |
|
Textiles, Apparel & Luxury Goods — 1.9% | |
| | | |
adidas AG | | | | | 9,160 | | | $ | 2,998,079 | |
| | | |
LVMH Moet Hennessy Louis Vuitton SE | | | | | 3,511 | | | | 2,753,051 | |
| |
| | | $ | 5,751,130 | |
| |
Total Common Stocks (identified cost $116,252,388) | | | $ | 187,238,881 | |
| | | | | | | | | | |
Convertible Bonds — 0.0%(3) | |
Security | | | | Principal Amount (000’s omitted) | | | Value | |
|
Air Transportation — 0.0%(3) | |
| | | |
Air Transport Services Group, Inc., 1.125%, 10/15/24 | | | | $ | 63 | | | $ | 66,937 | |
| |
Total Convertible Bonds (identified cost $58,601) | | | $ | 66,937 | |
|
Corporate Bonds — 33.9% | |
Security | | | | Principal Amount* (000’s omitted) | | | Value | |
|
Aerospace & Defense — 0.7% | |
| | | |
Moog, Inc., 4.25%, 12/15/27(4) | | | | | 170 | | | $ | 175,216 | |
| | | |
Rolls-Royce PLC: | | | | | | | | |
| | | |
5.75%, 10/15/27(4) | | | | | 492 | | | | 545,038 | |
| | | |
5.75%, 10/15/27(5) | | GBP | | | 161 | | | | 245,440 | |
| | | |
TransDigm UK Holdings PLC, 6.875%, 5/15/26 | | | | | 200 | | | | 210,894 | |
|
TransDigm, Inc.: | |
| | | |
4.625%, 1/15/29 | | | | | 185 | | | | 184,075 | |
| | | |
5.50%, 11/15/27 | | | | | 106 | | | | 108,650 | |
| | | |
6.25%, 3/15/26(4) | | | | | 419 | | | | 437,855 | |
| | | |
7.50%, 3/15/27 | | | | | 327 | | | | 343,350 | |
| |
| | | $ | 2,250,518 | |
|
Airlines — 0.5% | |
|
Air Canada: | |
| | | |
3.875%, 8/15/26(4) | | | | | 101 | | | $ | 102,389 | |
| | | |
4.625%, 8/15/29(4) | | CAD | | | 93 | | | | 75,146 | |
| | | |
Air France-KLM, 3.875%, 7/1/26(5) | | EUR | | | 400 | | | | 453,644 | |
|
American Airlines, Inc./AAdvantage Loyalty IP, Ltd.: | |
| | | |
5.50%, 4/20/26(4) | | | | | 314 | | | | 329,779 | |
| | | |
5.75%, 4/20/29(4) | | | | | 314 | | | | 338,335 | |
| | | |
United Airlines, Inc., 4.625%, 4/15/29(4) | | | | | 193 | | | | 199,220 | |
| |
| | | $ | 1,498,513 | |
|
Auto Components — 0.5% | |
|
Clarios Global, L.P./Clarios US Finance Co.: | |
| | | |
4.375%, 5/15/26(5) | | EUR | | | 181 | | | $ | 214,492 | |
| | | |
8.50%, 5/15/27(4) | | | | | 192 | | | | 204,196 | |
|
Goodyear Tire & Rubber Co. (The): | |
| | | |
5.00%, 7/15/29(4) | | | | | 336 | | | | 354,900 | |
| | | |
5.25%, 7/15/31(4) | | | | | 270 | | | | 287,690 | |
| | | |
TI Automotive Finance PLC, 3.75%, 4/15/29(5) | | EUR | | | 200 | | | | 232,026 | |
| | | |
Wheel Pros, Inc., 6.50%, 5/15/29(4) | | | | | 213 | | | | 207,768 | |
| |
| | | $ | 1,501,072 | |
| | | | |
| | 19 | | See Notes to Financial Statements. |
Global Income Builder Portfolio
October 31, 2021
Portfolio of Investments — continued
| | | | | | | | | | |
Security | | | | Principal Amount* (000’s omitted) | | | Value | |
|
Automobiles — 0.9% | |
|
Ford Motor Co.: | |
| | | |
4.75%, 1/15/43 | | | | | 197 | | | $ | 215,445 | |
| | | |
8.50%, 4/21/23 | | | | | 202 | | | | 221,746 | |
| | | |
9.625%, 4/22/30 | | | | | 208 | | | | 299,911 | |
|
Ford Motor Credit Co., LLC: | |
| | | |
3.087%, 1/9/23 | | | | | 231 | | | | 235,262 | |
| | | |
3.37%, 11/17/23 | | | | | 200 | | | | 205,500 | |
| | | |
3.815%, 11/2/27 | | | | | 327 | | | | 339,701 | |
| | | |
4.00%, 11/13/30 | | | | | 268 | | | | 280,060 | |
| | | |
4.125%, 8/17/27 | | | | | 555 | | | | 589,687 | |
| | | |
5.125%, 6/16/25 | | | | | 200 | | | | 217,250 | |
| | | |
General Motors Financial Co., Inc., Series C, 5.70% to 9/30/30(6)(7) | | | | | 85 | | | | 98,281 | |
| | | |
Jaguar Land Rover Automotive PLC, 6.875%, 11/15/26(5) | | EUR | | | 100 | | | | 129,090 | |
| |
| | | $ | 2,831,933 | |
|
Banks — 1.5% | |
| | | |
Banco Mercantil del Norte S.A./Grand Cayman, 7.625% to 1/10/28(4)(6)(7) | | | | | 200 | | | $ | 219,802 | |
| | | |
Citigroup, Inc., Series M, 6.30% to 5/15/24(6)(7) | | | | | 200 | | | | 213,460 | |
| | | |
Comerica, Inc., 5.625% to 7/1/25(6)(7) | | | | | 125 | | | | 138,650 | |
| | | |
Credit Suisse Group AG, 7.50% to 7/17/23(4)(6)(7) | | | | | 208 | | | | 221,624 | |
| | | |
Deutsche Bank AG, 7.125% to 4/30/26(5)(6)(7) | | GBP | | | 100 | | | | 148,488 | |
| | | |
Farm Credit Bank of Texas, Series 3, 6.20% to 6/15/28(4)(6)(7) | | | | | 220 | | | | 242,000 | |
| | | |
HSBC Holdings PLC, 4.60% to 12/17/30(6)(7) | | | | | 200 | | | | 199,226 | |
| | | |
Huntington Bancshares, Inc., Series F, 5.625% to 7/15/30(6)(7) | | | | | 125 | | | | 145,469 | |
|
JPMorgan Chase & Co.: | |
| | | |
Series HH, 4.60% to 2/1/25(6)(7) | | | | | 298 | | | | 305,187 | |
| | | |
Series KK, 3.65% to 6/1/26(6)(7) | | | | | 251 | | | | 250,372 | |
| | | |
Series S, 6.75% to 2/1/24(6)(7) | | | | | 215 | | | | 235,138 | |
| | | |
Series X, 6.10% to 10/1/24(6)(7) | | | | | 165 | | | | 177,478 | |
| | | |
Lloyds Banking Group PLC, 7.50% to 9/27/25(6)(7) | | | | | 200 | | | | 229,625 | |
| | | |
Natwest Group PLC, 4.60% to 6/28/31(6)(7) | | | | | 200 | | | | 197,500 | |
| | | |
Societe Generale S.A., 5.375% to 11/18/30(4)(6)(7) | | | | | 200 | | | | 213,000 | |
| | | |
Standard Chartered PLC, 4.75% to 1/14/31(4)(6)(7) | | | | | 229 | | | | 225,136 | |
| | | |
SVB Financial Group., Series C, 4.00% to 5/15/26(6)(7) | | | | | 58 | | | | 58,218 | |
| | | |
Truist Financial Corp., Series Q, 5.10% to 3/1/30(6)(7) | | | | | 77 | | | | 86,340 | |
| | | |
Vivion Investments S.a.r.l., 3.00%, 8/8/24(5) | | EUR | | | 800 | | | | 893,042 | |
| | | |
Zions Bancorp NA, 5.80% to 6/15/23(6)(7) | | | | | 268 | | | | 276,252 | |
| |
| | | $ | 4,676,007 | |
| | | | | | | | | | |
Security | | | | Principal Amount* (000’s omitted) | | | Value | |
|
Biotechnology — 0.5% | |
| | | |
Emergent BioSolutions, Inc., 3.875%, 8/15/28(4) | | | | | 254 | | | $ | 244,157 | |
|
Grifols Escrow Issuer S.A.: | |
| | | |
3.875%, 10/15/28(5) | | EUR | | | 925 | | | | 1,072,695 | |
| | | |
4.75%, 10/15/28(4) | | | | | 231 | | | | 234,754 | |
| |
| | | $ | 1,551,606 | |
|
Building Products — 1.1% | |
| | | |
Boise Cascade Co., 4.875%, 7/1/30(4) | | | | | 116 | | | $ | 121,945 | |
|
Builders FirstSource, Inc.: | |
| | | |
4.25%, 2/1/32(4) | | | | | 204 | | | | 205,913 | |
| | | |
5.00%, 3/1/30(4) | | | | | 90 | | | | 95,176 | |
| | | |
Empire Communities Corp., 7.00%, 12/15/25(4) | | | | | 259 | | | | 268,389 | |
| | | |
HT Troplast GmbH, 9.25%, 7/15/25(5) | | EUR | | | 360 | | | | 449,557 | |
| | | |
Masonite International Corp., 5.375%, 2/1/28(4) | | | | | 105 | | | | 110,381 | |
| | | |
PCF GmbH, 4.75%, 4/15/26(5) | | EUR | | | 175 | | | | 206,235 | |
| | | |
PGT Innovations, Inc., 4.375%, 10/1/29(4) | | | | | 176 | | | | 174,680 | |
|
Standard Industries, Inc.: | |
| | | |
2.25%, 11/21/26(5) | | EUR | | | 100 | | | | 112,225 | |
| | | |
4.375%, 7/15/30(4) | | | | | 192 | | | | 192,240 | |
| | | |
5.00%, 2/15/27(4) | | | | | 78 | | | | 80,145 | |
|
Taylor Morrison Communities, Inc.: | |
| | | |
5.75%, 1/15/28(4) | | | | | 196 | | | | 216,043 | |
| | | |
5.875%, 6/15/27(4) | | | | | 146 | | | | 163,529 | |
| | | |
Victoria PLC, 3.625%, 8/24/26(5) | | EUR | | | 806 | | | | 942,314 | |
| |
| | | $ | 3,338,772 | |
|
Capital Markets — 0.2% | |
| | | |
AerCap Holdings NV, 5.875% to 10/10/24, 10/10/79(6) | | | | | 150 | | | $ | 156,711 | |
| | | |
Charles Schwab Corp. (The), Series I, 4.00% to 6/1/26(6)(7) | | | | | 259 | | | | 266,874 | |
| | | |
UBS Group AG, 4.375% to 2/10/31(4)(6)(7) | | | | | 200 | | | | 199,150 | |
| |
| | | $ | 622,735 | |
|
Casino & Gaming — 0.2% | |
|
Cinemark USA, Inc.: | |
| | | |
5.875%, 3/15/26(4) | | | | | 67 | | | $ | 67,251 | |
| | | |
8.75%, 5/1/25(4) | | | | | 48 | | | | 51,420 | |
| | | |
Peninsula Pacific Entertainment, LLC/Peninsula Pacific Entertainment Finance, Inc., 8.50%, 11/15/27(4) | | | | | 370 | | | | 395,347 | |
| | | |
Speedway Motorsports, LLC/Speedway Funding II, Inc., 4.875%, 11/1/27(4) | | | | | 215 | | | | 219,984 | |
| |
| | | $ | 734,002 | |
| | | | |
| | 20 | | See Notes to Financial Statements. |
Global Income Builder Portfolio
October 31, 2021
Portfolio of Investments — continued
| | | | | | | | | | |
Security | | | | Principal Amount* (000’s omitted) | | | Value | |
|
Chemicals — 0.5% | |
| | | |
Herens Holdco S.a.r.l., 4.75%, 5/15/28(4) | | | | | 201 | | | $ | 199,653 | |
| | | |
Herens Midco S.a.r.l., 5.25%, 5/15/29(5) | | EUR | | | 271 | | | | 293,088 | |
| | | |
INEOS Quattro Finance 2 PLC, 2.50%, 1/15/26(5) | | EUR | | | 232 | | | | 268,075 | |
| | | |
NOVA Chemicals Corp., 4.25%, 5/15/29(4) | | | | | 203 | | | | 200,615 | |
| | | |
Nufarm Australia, Ltd./Nufarm Americas, Inc., 5.75%, 4/30/26(4) | | | | | 310 | | | | 317,169 | |
|
Valvoline, Inc.: | |
| | | |
3.625%, 6/15/31(4) | | | | | 128 | | | | 124,960 | |
| | | |
4.25%, 2/15/30(4) | | | | | 140 | | | | 142,294 | |
| |
| | | $ | 1,545,854 | |
|
Commercial Services & Supplies — 1.5% | |
| | | |
Adtalem Global Education, Inc., 5.50%, 3/1/28(4) | | | | | 293 | | | $ | 296,296 | |
| | | |
APi Escrow Corp., 4.75%, 10/15/29(4) | | | | | 87 | | | | 88,631 | |
|
Avis Budget Car Rental, LLC/Avis Budget Finance, Inc.: | |
| | | |
5.375%, 3/1/29(4) | | | | | 127 | | | | 133,826 | |
| | | |
5.75%, 7/15/27(4) | | | | | 89 | | | | 93,116 | |
| | | |
5.75%, 7/15/27(4) | | | | | 110 | | | | 115,328 | |
|
Clean Harbors, Inc.: | |
| | | |
4.875%, 7/15/27(4) | | | | | 101 | | | | 105,293 | |
| | | |
5.125%, 7/15/29(4) | | | | | 61 | | | | 66,109 | |
| | | |
EC Finance PLC, 3.00%, 10/15/26(5) | | EUR | | | 274 | | | | 320,597 | |
|
Gartner, Inc.: | |
| | | |
3.625%, 6/15/29(4) | | | | | 57 | | | | 57,356 | |
| | | |
3.75%, 10/1/30(4) | | | | | 107 | | | | 108,605 | |
| | | |
4.50%, 7/1/28(4) | | | | | 151 | | | | 157,410 | |
|
GFL Environmental, Inc.: | |
| | | |
3.50%, 9/1/28(4) | | | | | 240 | | | | 239,100 | |
| | | |
3.75%, 8/1/25(4) | | | | | 130 | | | | 133,926 | |
| | | |
4.75%, 6/15/29(4) | | | | | 343 | | | | 346,430 | |
| | | |
HealthEquity, Inc., 4.50%, 10/1/29(4) | | | | | 158 | | | | 159,975 | |
| | | |
Korn Ferry, 4.625%, 12/15/27(4) | | | | | 233 | | | | 240,572 | |
| | | |
Madison IAQ, LLC, 4.125%, 6/30/28(4) | | | | | 128 | | | | 127,497 | |
| | | |
MoneyGram International, Inc., 5.375%, 8/1/26(4) | | | | | 149 | | | | 149,559 | |
| | | |
NESCO Holdings II, Inc., 5.50%, 4/15/29(4) | | | | | 206 | | | | 208,833 | |
| | | |
Paprec Holding S.A., 3.50%, 7/1/28(5) | | EUR | | | 352 | | | | 407,665 | |
| | | |
Team Health Holdings, Inc., 6.375%, 2/1/25(4) | | | | | 235 | | | | 208,365 | |
| | | |
Terminix Co., LLC (The), 7.45%, 8/15/27 | | | | | 550 | | | | 661,375 | |
| | | |
Tervita Corp., 11.00%, 12/1/25(4) | | | | | 123 | | | | 141,610 | |
| |
| | | $ | 4,567,474 | |
|
Construction & Engineering — 0.1% | |
| | | |
TopBuild Corp., 4.125%, 2/15/32(4) | | | | | 158 | | | $ | 159,580 | |
| |
| | | $ | 159,580 | |
| | | | | | | | | | |
Security | | | | Principal Amount* (000’s omitted) | | | Value | |
|
Construction Materials — 0.2% | |
| | | |
SRM Escrow Issuer, LLC, 6.00%, 11/1/28(4) | | | | | 644 | | | $ | 670,565 | |
| |
| | | $ | 670,565 | |
|
Consumer Finance — 0.3% | |
| | | |
CPUK Finance, Ltd., 4.875%, 2/28/47(5) | | GBP | | | 278 | | | $ | 381,877 | |
|
PRA Group, Inc.: | |
| | | |
5.00%, 10/1/29(4) | | | | | 115 | | | | 113,786 | |
| | | |
7.375%, 9/1/25(4) | | | | | 261 | | | | 278,617 | |
| |
| | | $ | 774,280 | |
|
Containers & Packaging — 0.3% | |
|
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc.: | |
| | | |
2.125%, 8/15/26(5) | | EUR | | | 410 | | | $ | 468,332 | |
| | | |
4.125%, 8/15/26(4) | | | | | 253 | | | | 258,384 | |
| | | |
Kleopatra Finco S.a.r.l., 4.25%, 3/1/26(5) | | EUR | | | 243 | | | | 270,204 | |
| |
| | | $ | 996,920 | |
|
Cosmetics / Personal Care — 0.1% | |
| | | |
Edgewell Personal Care Co., 5.50%, 6/1/28(4) | | | | | 180 | | | $ | 188,533 | |
| |
| | | $ | 188,533 | |
|
Distributors — 0.4% | |
| | | |
BCPE Empire Holdings, Inc., 7.625%, 5/1/27(4) | | | | | 475 | | | $ | 471,031 | |
| | | |
Parts Europe S.A., 3.454%, (3 mo. EURIBOR + 4.00%), 7/20/27(5)(8) | | EUR | | | 350 | | | | 405,432 | |
|
Performance Food Group, Inc.: | |
| | | |
4.25%, 8/1/29(4) | | | | | 315 | | | | 315,394 | |
| | | |
5.50%, 10/15/27(4) | | | | | 169 | | | | 176,394 | |
| |
| | | $ | 1,368,251 | |
|
Diversified Consumer Services — 0.3% | |
| | | |
GEMS MENASA Cayman, Ltd./GEMS Education Delaware, LLC, 7.125%, 7/31/26(5) | | | | | 750 | | | $ | 777,188 | |
| |
| | | $ | 777,188 | |
|
Diversified Financial Services — 1.5% | |
| | | |
Alliance Data Systems Corp., 4.75%, 12/15/24(4) | | | | | 194 | | | $ | 198,703 | |
| | | |
Allied Universal Holdco, LLC, 6.625%, 7/15/26(4) | | | | | 497 | | | | 522,784 | |
| | | |
Allied Universal Holdco, LLC/Allied Universal Finance Corp., 9.75%, 7/15/27(4) | | | | | 203 | | | | 218,479 | |
| | | |
Allied Universal Holdco, LLC/Allied Universal Finance Corp./Atlas Luxco 4 S.a.r.l., 4.625%, 6/1/28(4) | | | | | 316 | | | | 313,842 | |
| | | |
Ally Financial, Inc., Series B, 4.70% to 5/15/26(6)(7) | | | | | 237 | | | | 246,332 | |
| | | |
Alpha Holding S.A. de CV, 9.00%, 2/10/25(4)(13) | | | | | 200 | | | | 28,424 | |
| | | | |
| | 21 | | See Notes to Financial Statements. |
Global Income Builder Portfolio
October 31, 2021
Portfolio of Investments — continued
| | | | | | | | | | |
Security | | | | Principal Amount* (000’s omitted) | | | Value | |
|
Diversified Financial Services (continued) | |
| | | |
American AgCredit Corp., Series QIB, 5.25% to 6/15/26(4)(6)(7) | | | | | 250 | | | $ | 255,625 | |
|
Coinbase Global, Inc.: | |
| | | |
3.375%, 10/1/28(4) | | | | | 181 | | | | 174,891 | |
| | | |
3.625%, 10/1/31(4) | | | | | 151 | | | | 144,016 | |
|
Encore Capital Group, Inc.: | |
| | | |
4.25%, (3 mo. EURIBOR + 4.25%), 1/15/28(5)(8) | | EUR | | | 479 | | | | 558,721 | |
| | | |
5.375%, 2/15/26(5) | | GBP | | | 180 | | | | 254,838 | |
|
Icahn Enterprises, L.P./Icahn Enterprises Finance Corp.: | |
| | | |
6.25%, 5/15/26 | | | | | 146 | | | | 153,118 | |
| | | |
6.375%, 12/15/25 | | | | | 120 | | | | 122,550 | |
| | | |
Jefferson Capital Holdings, LLC, 6.00%, 8/15/26(4) | | | | | 343 | | | | 347,769 | |
| | | |
Louvre Bidco S.A.S., 6.50%, 9/30/24(5) | | EUR | | | 310 | | | | 370,052 | |
| | | |
Sherwood Financing PLC, 6.00%, 11/15/26(5)(9) | | GBP | | | 420 | | | | 574,791 | |
| |
| | | $ | 4,484,935 | |
|
Diversified Telecommunication Services — 0.1% | |
|
Level 3 Financing, Inc.: | |
| | | |
4.25%, 7/1/28(4) | | | | | 324 | | | $ | 320,749 | |
| | | |
5.25%, 3/15/26 | | | | | 90 | | | | 92,875 | |
| |
| | | $ | 413,624 | |
|
Electric Utilities — 1.1% | |
| | | |
Enviva Partners, L.P./Enviva Partners Finance Corp., 6.50%, 1/15/26(4) | | | | | 353 | | | $ | 365,535 | |
| | | |
FirstEnergy Corp., Series B, 4.40%, 7/15/27 | | | | | 257 | | | | 278,967 | |
| | | |
Imola Merger Corp., 4.75%, 5/15/29(4) | | | | | 306 | | | | 314,782 | |
| | | |
Leeward Renewable Energy Operations, LLC, 4.25%, 7/1/29(4) | | | | | 113 | | | | 113,709 | |
| | | |
NextEra Energy Capital Holdings, Inc., 5.65% to 5/1/29, 5/1/79(6) | | | | | 155 | | | | 180,148 | |
|
NextEra Energy Operating Partners, L.P.: | |
| | | |
4.25%, 9/15/24(4) | | | | | 9 | | | | 9,506 | |
| | | |
4.50%, 9/15/27(4) | | | | | 142 | | | | 152,089 | |
|
NRG Energy, Inc.: | |
| | | |
3.375%, 2/15/29(4) | | | | | 106 | | | | 103,482 | |
| | | |
3.625%, 2/15/31(4) | | | | | 177 | | | | 172,486 | |
| | | |
3.875%, 2/15/32(4) | | | | | 195 | | | | 191,344 | |
| | | |
5.25%, 6/15/29(4) | | | | | 122 | | | | 130,082 | |
| | | |
Pattern Energy Operations, L.P./Pattern Energy Operations, Inc., 4.50%, 8/15/28(4) | | | | | 199 | | | | 206,214 | |
| | | |
Southern California Edison Co., Series E, 6.25% to 2/1/22(6)(7) | | | | | 101 | | | | 101,657 | |
|
Southern Co. (The): | |
| | | |
Series 21-A, 3.75% to 6/15/26, 9/15/51(6) | | | | | 120 | | | | 122,016 | |
| | | | | | | | | | |
Security | | | | Principal Amount* (000’s omitted) | | | Value | |
|
Electric Utilities (continued) | |
|
Southern Co. (The): (continued) | |
| | | |
Series B, 4.00% to 10/15/25, 1/15/51(6) | | | | | 56 | | | $ | 58,531 | |
| | | |
Series B, 5.50% to 3/15/22, 3/15/57(6) | | | | | 192 | | | | 194,334 | |
|
TerraForm Power Operating, LLC: | |
| | | |
4.25%, 1/31/23(4) | | | | | 95 | | | | 97,019 | |
| | | |
5.00%, 1/31/28(4) | | | | | 237 | | | | 252,704 | |
|
Vistra Operations Co., LLC: | |
| | | |
4.375%, 5/1/29(4) | | | | | 235 | | | | 232,944 | |
| | | |
5.00%, 7/31/27(4) | | | | | 232 | | | | 238,090 | |
| |
| | | $ | 3,515,639 | |
|
Electronic Equipment, Instruments & Components — 0.1% | |
| | | |
WESCO Distribution, Inc., 7.25%, 6/15/28(4) | | | | | 153 | | | $ | 168,937 | |
| |
| | | $ | 168,937 | |
|
Entertainment — 1.1% | |
|
AMC Entertainment Holdings, Inc.: | |
| | | |
10.50%, 4/15/25(4) | | | | | 94 | | | $ | 101,050 | |
| | | |
12.00%, (10.00% cash or 12.00% PIK), 6/15/26(4)(10) | | | | | 209 | | | | 208,277 | |
|
Caesars Entertainment, Inc.: | |
| | | |
6.25%, 7/1/25(4) | | | | | 417 | | | | 439,143 | |
| | | |
8.125%, 7/1/27(4) | | | | | 56 | | | | 62,793 | |
| | | |
Cinemark USA, Inc., 5.25%, 7/15/28(4) | | | | | 206 | | | | 201,236 | |
| | | |
Gamma Bidco SpA, 6.25%, 7/15/25(5) | | EUR | | | 200 | | | | 239,038 | |
| | | |
LHMC Finco 2 S.a.r.l., 7.25%, (7.25% cash or 8.00% PIK), 10/2/25(5)(10) | | EUR | | | 686 | | | | 802,216 | |
|
Netflix, Inc.: | |
| | | |
3.00%, 6/15/25(5) | | EUR | | | 370 | | | | 465,600 | |
| | | |
4.875%, 6/15/30(4) | | | | | 300 | | | | 352,881 | |
| | | |
5.875%, 11/15/28 | | | | | 300 | | | | 365,544 | |
| | | |
Powdr Corp., 6.00%, 8/1/25(4) | | | | | 227 | | | | 237,839 | |
| |
| | | $ | 3,475,617 | |
|
Equity Real Estate Investment Trusts (REITs) — 0.2% | |
| | | |
Brookfield Property REIT, Inc./BPR Cumulus, LLC/BPR Nimbus, LLC/GGSI Sellco, LLC, 4.50%, 4/1/27(4) | | | | | 260 | | | $ | 253,825 | |
| | | |
MGM Growth Properties Operating Partnership, L.P./MGP Finance Co-Issuer, Inc.: | | | | | | | | |
| | | |
4.50%, 9/1/26 | | | | | 100 | | | | 108,600 | |
| | | |
5.625%, 5/1/24 | | | | | 200 | | | | 217,220 | |
| |
| | | $ | 579,645 | |
| | | | |
| | 22 | | See Notes to Financial Statements. |
Global Income Builder Portfolio
October 31, 2021
Portfolio of Investments — continued
| | | | | | | | | | |
Security | | | | Principal Amount* (000’s omitted) | | | Value | |
|
Food Products — 1.0% | |
| | | |
Albertsons Cos., Inc./Safeway, Inc./New Albertsons, L.P./Albertsons, LLC, 5.875%, 2/15/28(4) | | | | | 181 | | | $ | 192,539 | |
| | | |
Casino Guichard Perrachon S.A., 5.25%, 4/15/27(5) | | EUR | | | 125 | | | | 137,523 | |
| | | |
Chobani, LLC/Chobani Finance Corp., Inc., 4.625%, 11/15/28(4) | | | | | 70 | | | | 71,662 | |
| | | |
JBS USA LUX S.A./JBS USA Food Co./JBS USA Finance, Inc., 5.50%, 1/15/30(4) | | | | | 386 | | | | 423,152 | |
|
Kraft Heinz Foods Co.: | |
| | | |
3.875%, 5/15/27 | | | | | 166 | | | | 180,086 | |
| | | |
4.25%, 3/1/31 | | | | | 371 | | | | 419,265 | |
| | | |
4.375%, 6/1/46 | | | | | 242 | | | | 282,907 | |
| | | |
4.625%, 10/1/39 | | | | | 56 | | | | 65,298 | |
| | | |
4.875%, 10/1/49 | | | | | 82 | | | | 101,680 | |
| | | |
5.50%, 6/1/50 | | | | | 166 | | | | 222,675 | |
| | | |
Land O’ Lakes, Inc., 8.00%(4)(7) | | | | | 330 | | | | 358,090 | |
| | | |
Nomad Foods Bondco PLC, 2.50%, 6/24/28(5) | | EUR | | | 371 | | | | 426,916 | |
| | | |
Pilgrim’s Pride Corp., 3.50%, 3/1/32(4) | | | | | 288 | | | | 289,080 | |
| |
| | | $ | 3,170,873 | |
|
Gas Utilities — 0.1% | |
| | | |
NiSource, Inc., 5.65% to 6/15/23(6)(7) | | | | | 280 | | | $ | 296,800 | |
| |
| | | $ | 296,800 | |
|
Health Care Equipment & Supplies — 1.0% | |
|
Centene Corp.: | |
| | | |
2.50%, 3/1/31 | | | | | 311 | | | $ | 303,620 | |
| | | |
3.00%, 10/15/30 | | | | | 377 | | | | 383,669 | |
| | | |
3.375%, 2/15/30 | | | | | 308 | | | | 316,487 | |
| | | |
4.625%, 12/15/29 | | | | | 319 | | | | 344,520 | |
| | | |
Compass Minerals International, Inc., 6.75%, 12/1/27(4) | | | | | 182 | | | | 192,920 | |
| | | |
ModivCare Escrow Issuer, Inc., 5.00%, 10/1/29(4) | | | | | 101 | | | | 102,861 | |
| | | |
Molina Healthcare, Inc., 3.875%, 11/15/30(4) | | | | | 245 | | | | 252,982 | |
| | | |
Mozart Debt Merger Sub, Inc., 5.25%, 10/1/29(4) | | | | | 492 | | | | 499,995 | |
| | | |
US Acute Care Solutions, LLC, 6.375%, 3/1/26(4) | | | | | 331 | | | | 343,826 | |
| | | |
Varex Imaging Corp., 7.875%, 10/15/27(4) | | | | | 243 | | | | 270,690 | |
| |
| | | $ | 3,011,570 | |
|
Health Care Providers & Services — 0.6% | |
|
Encompass Health Corp.: | |
| | | |
4.50%, 2/1/28 | | | | | 8 | | | $ | 8,155 | |
| | | |
4.625%, 4/1/31 | | | | | 127 | | | | 129,402 | |
| | | |
4.75%, 2/1/30 | | | | | 191 | | | | 196,022 | |
|
HCA, Inc.: | |
| | | |
5.375%, 9/1/26 | | | | | 270 | | | | 307,827 | |
| | | |
5.625%, 9/1/28 | | | | | 245 | | | | 287,441 | |
| | | | | | | | | | |
Security | | | | Principal Amount* (000’s omitted) | | | Value | |
|
Health Care Providers & Services (continued) | |
| | | |
Legacy LifePoint Health, LLC, 4.375%, 2/15/27(4) | | | | | 131 | | | $ | 129,854 | |
| | | |
ModivCare, Inc., 5.875%, 11/15/25(4) | | | | | 182 | | | | 191,327 | |
| | | |
Molina Healthcare, Inc., 4.375%, 6/15/28(4) | | | | | 103 | | | | 106,734 | |
|
Tenet Healthcare Corp.: | |
| | | |
4.625%, 9/1/24(4) | | | | | 49 | | | | 50,103 | |
| | | |
4.875%, 1/1/26(4) | | | | | 290 | | | | 297,612 | |
| | | |
5.125%, 11/1/27(4) | | | | | 138 | | | | 144,382 | |
| |
| | | $ | 1,848,859 | |
|
Home Builders — 0.1% | |
| | | |
WASH Multifamily Acquisition, Inc., 5.75%, 4/15/26(4) | | | | | 201 | | | $ | 208,035 | |
| |
| | | $ | 208,035 | |
|
Hotels, Restaurants & Leisure — 0.9% | |
|
1011778 B.C. Unlimited Liability Company/New Red Finance, Inc.: | |
| | | |
3.875%, 1/15/28(4) | | | | | 286 | | | $ | 285,666 | |
| | | |
4.375%, 1/15/28(4) | | | | | 182 | | | | 183,183 | |
| | | |
5.75%, 4/15/25(4) | | | | | 66 | | | | 68,640 | |
| | | |
Gateway Casinos & Entertainment, Ltd., 8.25%, 3/1/24(4) | | | | | 583 | | | | 601,032 | |
|
Lithia Motors, Inc.: | |
| | | |
4.375%, 1/15/31(4) | | | | | 131 | | | | 139,673 | |
| | | |
4.625%, 12/15/27(4) | | | | | 91 | | | | 96,323 | |
| | | |
MGM Resorts International, 4.75%, 10/15/28 | | | | | 264 | | | | 274,747 | |
| | | |
NH Hotel Group S.A., 4.00%, 7/2/26(5) | | EUR | | | 136 | | | | 157,874 | |
| | | |
Viking Cruises, Ltd., 5.875%, 9/15/27(4) | | | | | 974 | | | | 942,895 | |
| |
| | | $ | 2,750,033 | |
|
Household Products — 0.0%(3) | |
| | | |
Tempur Sealy International, Inc., 3.875%, 10/15/31(4) | | | | | 84 | | | $ | 83,345 | |
| |
| | | $ | 83,345 | |
|
Independent Power and Renewable Electricity Producers — 0.2% | |
|
Calpine Corp.: | |
| | | |
5.125%, 3/15/28(4) | | | | | 273 | | | $ | 271,976 | |
| | | |
5.25%, 6/1/26(4) | | | | | 101 | | | | 104,050 | |
| | | |
NRG Energy, Inc., 5.75%, 1/15/28 | | | | | 210 | | | | 222,863 | |
| |
| | | $ | 598,889 | |
|
Industrial Conglomerates — 0.2% | |
| | | |
Brundage-Bone Concrete Pumping Holdings, Inc., 6.00%, 2/1/26(4) | | | | | 165 | | | $ | 172,961 | |
| | | |
Dycom Industries, Inc., 4.50%, 4/15/29(4) | | | | | 156 | | | | 158,535 | |
| | | | |
| | 23 | | See Notes to Financial Statements. |
Global Income Builder Portfolio
October 31, 2021
Portfolio of Investments — continued
| | | | | | | | | | |
Security | | | | Principal Amount* (000’s omitted) | | | Value | |
|
Industrial Conglomerates (continued) | |
| | | |
Gatwick Airport Finance PLC, 4.375%, 4/7/26(5) | | GBP | | | 145 | | | $ | 201,164 | |
| |
| | | $ | 532,660 | |
|
Insurance — 0.5% | |
| | | |
Alliant Holdings Intermediate, LLC/Alliant Holdings Co-Issuer, 6.75%, 10/15/27(4) | | | | | 386 | | | $ | 399,028 | |
| | | |
Galaxy Finco, Ltd., 9.25%, 7/31/27(5) | | GBP | | | 525 | | | | 752,096 | |
| | | |
Liberty Mutual Group, Inc., 4.125%, 12/15/51(4) | | | | | 115 | | | | 118,023 | |
| | | |
QBE Insurance Group, Ltd., 5.875% to 5/12/25(4)(6)(7) | | | | | 222 | | | | 243,090 | |
| |
| | | $ | 1,512,237 | |
|
Internet — 0.0%(3) | |
| | | |
United Group B.V., 4.00%, 11/15/27(5) | | EUR | | | 125 | | | $ | 141,703 | |
| |
| | | $ | 141,703 | |
|
Internet & Direct Marketing Retail — 0.1% | |
| | | |
Cars.com, Inc., 6.375%, 11/1/28(4) | | | | | 185 | | | $ | 193,852 | |
| |
| | | $ | 193,852 | |
|
Leisure Products — 0.9% | |
|
Carnival Corp.: | |
| | | |
5.75%, 3/1/27(4) | | | | | 207 | | | $ | 210,881 | |
| | | |
6.00%, 5/1/29(4)(9) | | | | | 216 | | | | 216,270 | |
| | | |
7.625%, 3/1/26(4) | | | | | 87 | | | | 91,771 | |
| | | |
7.625%, 3/1/26(5) | | EUR | | | 390 | | | | 486,028 | |
| | | |
Carnival PLC, 1.00%, 10/28/29 | | EUR | | | 350 | | | | 317,285 | |
| | | |
Dometic Group AB, 2.00%, 9/29/28(5) | | EUR | | | 389 | | | | 441,834 | |
|
Life Time, Inc.: | |
| | | |
5.75%, 1/15/26(4) | | | | | 199 | | | | 204,546 | |
| | | |
8.00%, 4/15/26(4) | | | | | 208 | | | | 218,743 | |
|
NCL Corp., Ltd.: | |
| | | |
3.625%, 12/15/24(4) | | | | | 111 | | | | 104,618 | |
| | | |
5.875%, 3/15/26(4) | | | | | 106 | | | | 106,397 | |
| | | |
NCL Finance, Ltd., 6.125%, 3/15/28(4) | | | | | 55 | | | | 55,550 | |
|
Royal Caribbean Cruises, Ltd.: | |
| | | |
3.70%, 3/15/28 | | | | | 111 | | | | 105,311 | |
| | | |
4.25%, 6/15/23 | | | | | 29 | | | | 39,261 | |
| | | |
Sabre GLBL, Inc., 9.25%, 4/15/25(4) | | | | | 86 | | | | 99,502 | |
| | | |
Viking Cruises, Ltd., 7.00%, 2/15/29(4) | | | | | 104 | | | | 104,690 | |
| | | |
Viking Ocean Cruises Ship VII, Ltd., 5.625%, 2/15/29(4) | | | | | 66 | | | | 65,588 | |
| |
| | | $ | 2,868,275 | |
| | | | | | | | | | |
Security | | | | Principal Amount* (000’s omitted) | | | Value | |
|
Life Sciences Tools & Services — 0.1% | |
| | | |
Chemours Co. (The), 4.625%, 11/15/29(4) | | | | | 148 | | | $ | 142,635 | |
| | | |
WR Grace Holdings, LLC, 4.875%, 6/15/27(4) | | | | | 245 | | | | 249,165 | |
| |
| | | $ | 391,800 | |
|
Machinery — 0.3% | |
| | | |
Frigoglass Finance B.V., 6.875%, 2/12/25(5) | | EUR | | | 475 | | | $ | 470,167 | |
| | | |
IMA Industria Macchine Automatiche SpA, 3.75%, 1/15/28(5) | | EUR | | | 381 | | | | 438,360 | |
| |
| | | $ | 908,527 | |
|
Media — 2.3% | |
| | | |
Altice France S.A., 8.125%, 2/1/27(4) | | | | | 458 | | | $ | 492,922 | |
| | | |
Beasley Mezzanine Holdings, LLC, 8.625%, 2/1/26(4) | | | | | 308 | | | | 310,292 | |
|
CCO Holdings, LLC/CCO Holdings Capital Corp.: | |
| | | |
4.25%, 2/1/31(4) | | | | | 286 | | | | 285,108 | |
| | | |
4.50%, 8/15/30(4) | | | | | 290 | | | | 295,548 | |
| | | |
4.75%, 3/1/30(4) | | | | | 322 | | | | 332,867 | |
| | | |
5.375%, 6/1/29(4) | | | | | 110 | | | | 118,332 | |
|
Clear Channel Outdoor Holdings, Inc.: | |
| | | |
7.50%, 6/1/29(4) | | | | | 91 | | | | 93,219 | |
| | | |
7.75%, 4/15/28(4) | | | | | 240 | | | | 248,868 | |
|
CSC Holdings, LLC: | |
| | | |
3.375%, 2/15/31(4) | | | | | 200 | | | | 182,400 | |
| | | |
5.75%, 1/15/30(4) | | | | | 416 | | | | 410,987 | |
| | | |
7.50%, 4/1/28(4) | | | | | 200 | | | | 213,000 | |
| | | |
Diamond Sports Group, LLC/Diamond Sports Finance Co., 5.375%, 8/15/26(4) | | | | | 369 | | | | 209,225 | |
| | | |
Entercom Media Corp., 6.75%, 3/31/29(4) | | | | | 261 | | | | 259,112 | |
| | | |
LCPR Senior Secured Financing DAC, 5.125%, 7/15/29(4) | | | | | 205 | | | | 206,814 | |
| | | |
Mav Acquisition Corp., 8.00%, 8/1/29(4) | | | | | 201 | | | | 195,822 | |
|
National CineMedia, LLC: | |
| | | |
5.75%, 8/15/26 | | | | | 189 | | | | 152,027 | |
| | | |
5.875%, 4/15/28(4) | | | | | 245 | | | | 226,482 | |
| | | |
Outfront Media Capital, LLC/Outfront Media Capital Corp., 6.25%, 6/15/25(4) | | | | | 137 | | | | 143,507 | |
|
Sirius XM Radio, Inc.: | |
| | | |
3.125%, 9/1/26(4) | | | | | 125 | | | | 125,312 | |
| | | |
3.875%, 9/1/31(4) | | | | | 126 | | | | 121,197 | |
| | | |
5.00%, 8/1/27(4) | | | | | 218 | | | | 227,810 | |
| | | |
Summer (BC) Holdco A S.a.r.l., 9.25%, 10/31/27(5) | | EUR | | | 264 | | | | 331,181 | |
| | | |
Summer (BC) Holdco B S.a.r.l., 5.75%, 10/31/26(5) | | EUR | | | 400 | | | | 483,613 | |
| | | |
Terrier Media Buyer, Inc., 8.875%, 12/15/27(4) | | | | | 178 | | | | 188,516 | |
| | | |
Townsquare Media, Inc., 6.875%, 2/1/26(4) | | | | | 141 | | | | 147,521 | |
| | | | |
| | 24 | | See Notes to Financial Statements. |
Global Income Builder Portfolio
October 31, 2021
Portfolio of Investments — continued
| | | | | | | | | | |
Security | | | | Principal Amount* (000’s omitted) | | | Value | |
|
Media (continued) | |
| | | |
Univision Communications, Inc., 4.50%, 5/1/29(4) | | | | | 186 | | | $ | 188,409 | |
| | | |
UPCB Finance VII, Ltd., 3.625%, 6/15/29(5) | | EUR | | | 116 | | | | 136,786 | |
| | | |
Urban One, Inc., 7.375%, 2/1/28(4) | | | | | 148 | | | | 155,554 | |
| | | |
Virgin Media Finance PLC, 3.75%, 7/15/30(5) | | EUR | | | 250 | | | | 287,602 | |
| | | |
Virgin Media Vendor Financing Notes III DAC, 4.875%, 7/15/28(5) | | GBP | | | 100 | | | | 137,591 | |
| |
| | | $ | 6,907,624 | |
|
Metals & Mining — 1.6% | |
| | | |
Allegheny Ludlum, LLC, 6.95%, 12/15/25 | | | | | 598 | | | $ | 654,062 | |
| | | |
Arconic Corp., 6.125%, 2/15/28(4) | | | | | 101 | | | | 106,555 | |
|
Bombardier, Inc.: | |
| | | |
7.50%, 12/1/24(4) | | | | | 53 | | | | 55,253 | |
| | | |
7.875%, 4/15/27(4) | | | | | 90 | | | | 93,683 | |
|
BWX Technologies, Inc.: | |
| | | |
4.125%, 6/30/28(4) | | | | | 159 | | | | 161,193 | |
| | | |
4.125%, 4/15/29(4) | | | | | 118 | | | | 119,897 | |
| | | |
Centennial Resource Production, LLC, 5.375%, 1/15/26(4) | | | | | 237 | | | | 236,639 | |
|
Cleveland-Cliffs, Inc.: | |
| | | |
6.75%, 3/15/26(4) | | | | | 360 | | | | 383,850 | |
| | | |
9.875%, 10/17/25(4) | | | | | 52 | | | | 59,605 | |
| | | |
Eldorado Gold Corp., 6.25%, 9/1/29(4) | | | | | 176 | | | | 178,913 | |
| | | |
Freeport-McMoRan, Inc., 5.45%, 3/15/43 | | | | | 297 | | | | 373,997 | |
|
Hudbay Minerals, Inc.: | |
| | | |
4.50%, 4/1/26(4) | | | | | 174 | | | | 173,783 | |
| | | |
6.125%, 4/1/29(4) | | | | | 151 | | | | 159,116 | |
| | | |
Infrabuild Australia Pty, Ltd., 12.00%, 10/1/24(4) | | | | | 1,024 | | | | 1,086,234 | |
| | | |
Joseph T. Ryerson & Son, Inc., 8.50%, 8/1/28(4) | | | | | 127 | | | | 141,446 | |
|
New Gold, Inc.: | |
| | | |
6.375%, 5/15/25(4) | | | | | 38 | | | | 39,168 | |
| | | |
7.50%, 7/15/27(4) | | | | | 491 | | | | 530,894 | |
| | | |
Novelis Corp., 3.25%, 11/15/26(4) | | | | | 89 | | | | 88,889 | |
| | | |
Roller Bearing Co. of America, Inc., 4.375%, 10/15/29(4) | | | | | 153 | | | | 156,060 | |
| | | |
TMS International Corp., 6.25%, 4/15/29(4) | | | | | 101 | | | | 104,409 | |
| |
| | | $ | 4,903,646 | |
|
Multi-Utilities — 0.1% | |
| | | |
Centerpoint Energy, Inc., Series A, 6.125% to 9/1/23(6)(7) | | | | | 345 | | | $ | 364,725 | |
| |
| | | $ | 364,725 | |
| | | | | | | | | | |
Security | | | | Principal Amount* (000’s omitted) | | | Value | |
|
Oil and Gas — 0.0%(3) | |
| | | |
TechnipFMC PLC, 6.50%, 2/1/26(4) | | | | | 14 | | | $ | 14,934 | |
| |
| | | $ | 14,934 | |
|
Oil, Gas & Consumable Fuels — 2.6% | |
| | | |
Aethon United BR, L.P./Aethon United Finance Corp., 8.25%, 2/15/26(4) | | | | | 350 | | | $ | 376,411 | |
| | | |
Archrock Partners, L.P./Archrock Partners Finance Corp., 6.25%, 4/1/28(4) | | | | | 135 | | | | 139,894 | |
| | | |
Callon Petroleum Co., 8.00%, 8/1/28(4) | | | | | 172 | | | | 173,574 | |
|
Colgate Energy Partners III, LLC: | |
| | | |
5.875%, 7/1/29(4) | | | | | 227 | | | | 232,675 | |
| | | |
7.75%, 2/15/26(4) | | | | | 190 | | | | 203,062 | |
|
Continental Resources, Inc.: | |
| | | |
4.375%, 1/15/28 | | | | | 144 | | | | 157,320 | |
| | | |
4.90%, 6/1/44 | | | | | 8 | | | | 9,089 | |
| | | |
5.75%, 1/15/31(4) | | | | | 233 | | | | 279,309 | |
|
CrownRock, L.P./CrownRock Finance, Inc.: | |
| | | |
5.00%, 5/1/29(4) | | | | | 221 | | | | 227,906 | |
| | | |
5.625%, 10/15/25(4) | | | | | 259 | | | | 265,151 | |
| | | |
CVR Energy, Inc., 5.75%, 2/15/28(4) | | | | | 439 | | | | 432,964 | |
| | | |
DCP Midstream, L.P., Series A, 7.375% to 12/15/22(6)(7) | | | | | 160 | | | | 160,800 | |
| | | |
EnLink Midstream Partners, L.P., Series C, 6.00% to 12/15/22(6)(7) | | | | | 193 | | | | 154,734 | |
|
EQT Corp.: | |
| | | |
5.00%, 1/15/29 | | | | | 53 | | | | 58,946 | |
| | | |
6.625%, 2/1/25 | | | | | 69 | | | | 77,711 | |
| | | |
7.50%, 2/1/30 | | | | | 102 | | | | 130,708 | |
| | | |
Great Western Petroleum, LLC/Great Western Finance Corp., 12.00%, 9/1/25(4) | | | | | 248 | | | | 252,256 | |
|
Laredo Petroleum, Inc.: | |
| | | |
9.50%, 1/15/25 | | | | | 74 | | | | 76,196 | |
| | | |
10.125%, 1/15/28 | | | | | 112 | | | | 119,840 | |
|
Nabors Industries, Ltd.: | |
| | | |
7.25%, 1/15/26(4) | | | | | 110 | | | | 106,886 | |
| | | |
7.50%, 1/15/28(4) | | | | | 118 | | | | 112,301 | |
| | | |
9.00%, 2/1/25(4) | | | | | 95 | | | | 98,480 | |
|
Occidental Petroleum Corp.: | |
| | | |
3.40%, 4/15/26 | | | | | 76 | | | | 77,641 | |
| | | |
3.45%, 7/15/24 | | | | | 42 | | | | 43,098 | |
| | | |
3.50%, 8/15/29 | | | | | 101 | | | | 102,641 | |
| | | |
4.20%, 3/15/48 | | | | | 156 | | | | 152,257 | |
| | | |
4.40%, 8/15/49 | | | | | 125 | | | | 125,129 | |
| | | |
4.625%, 6/15/45 | | | | | 84 | | | | 87,051 | |
| | | |
6.125%, 1/1/31 | | | | | 193 | | | | 231,359 | |
| | | |
6.20%, 3/15/40 | | | | | 81 | | | | 98,253 | |
| | | | |
| | 25 | | See Notes to Financial Statements. |
Global Income Builder Portfolio
October 31, 2021
Portfolio of Investments — continued
| | | | | | | | | | |
Security | | | | Principal Amount* (000’s omitted) | | | Value | |
|
Oil, Gas & Consumable Fuels (continued) | |
|
Occidental Petroleum Corp.: (continued) | |
| | | |
6.375%, 9/1/28 | | | | | 93 | | | $ | 109,124 | |
| | | |
6.45%, 9/15/36 | | | | | 93 | | | | 118,477 | |
| | | |
6.625%, 9/1/30 | | | | | 254 | | | | 311,125 | |
| | | |
Odebrecht Oil & Gas Finance, Ltd., 0.0%(4)(7) | | | | | 862 | | | | 11,850 | |
|
Ovintiv, Inc.: | |
| | | |
6.50%, 2/1/38 | | | | | 34 | | | | 46,159 | |
| | | |
6.625%, 8/15/37 | | | | | 18 | | | | 24,487 | |
| | | |
8.125%, 9/15/30 | | | | | 40 | | | | 54,918 | |
| | | |
PBF Holding Co., LLC/PBF Finance Corp., 9.25%, 5/15/25(4) | | | | | 205 | | | | 199,298 | |
| | | |
Plains All American Pipeline, L.P., Series B, 6.125% to 11/15/22(6)(7) | | | | | 747 | | | | 677,902 | |
|
Precision Drilling Corp.: | |
| | | |
6.875%, 1/15/29(4) | | | | | 152 | | | | 157,210 | |
| | | |
7.125%, 1/15/26(4) | | | | | 99 | | | | 101,948 | |
| | | |
Shelf Drilling Holdings, Ltd.: | | | | | | | | |
| | | |
8.25%, 2/15/25(4) | | | | | 245 | | | | 189,569 | |
| | | |
8.875%, 11/15/24(4) | | | | | 71 | | | | 73,592 | |
| | | |
Sunoco, L.P./Sunoco Finance Corp., 4.50%, 4/30/30(4) | | | | | 226 | | | | 228,276 | |
| | | |
Tap Rock Resources, LLC, 7.00%, 10/1/26(4) | | | | | 250 | | | | 257,730 | |
| | | |
Targa Resources Partners, L.P./Targa Resources Partners Finance Corp.: | | | | | | | | |
| | | |
4.00%, 1/15/32(4) | | | | | 169 | | | | 174,614 | |
| | | |
4.875%, 2/1/31 | | | | | 37 | | | | 39,941 | |
| | | |
5.50%, 3/1/30 | | | | | 36 | | | | 39,610 | |
| | | |
5.875%, 4/15/26 | | | | | 155 | | | | 162,025 | |
| | | |
Transocean Pontus, Ltd., 6.125%, 8/1/25(4) | | | | | 80 | | | | 80,714 | |
| | | |
Transocean Poseidon, Ltd., 6.875%, 2/1/27(4) | | | | | 181 | | | | 180,821 | |
| |
| | | $ | 8,003,032 | |
|
Packaging & Containers — 0.1% | |
|
LABL, Inc.: | |
| | | |
5.875%, 11/1/28(4) | | | | | 66 | | | $ | 66,516 | |
| | | |
8.25%, 11/1/29(4) | | | | | 132 | | | | 129,967 | |
| |
| | | $ | 196,483 | |
|
Pharmaceuticals — 1.0% | |
| | | |
180 Medical, Inc., 3.875%, 10/15/29(4) | | | | | 103 | | | $ | 103,709 | |
|
AdaptHealth, LLC: | |
| | | |
4.625%, 8/1/29(4) | | | | | 65 | | | | 64,350 | |
| | | |
5.125%, 3/1/30(4) | | | | | 71 | | | | 71,444 | |
| | | |
6.125%, 8/1/28(4) | | | | | 310 | | | | 328,600 | |
|
Bausch Health Americas, Inc.: | |
| | | |
8.50%, 1/31/27(4) | | | | | 448 | | | | 476,000 | |
| | | |
9.25%, 4/1/26(4) | | | | | 105 | | | | 111,694 | |
| | | | | | | | | | |
Security | | | | Principal Amount* (000’s omitted) | | | Value | |
|
Pharmaceuticals (continued) | |
|
Bausch Health Cos., Inc.: | |
| | | |
5.25%, 1/30/30(4) | | | | | 71 | | | $ | 64,213 | |
| | | |
5.25%, 2/15/31(4) | | | | | 71 | | | | 63,945 | |
| | | |
5.50%, 11/1/25(4) | | | | | 129 | | | | 131,234 | |
| | | |
7.25%, 5/30/29(4) | | | | | 98 | | | | 99,499 | |
| | | |
9.00%, 12/15/25(4) | | | | | 245 | | | | 257,328 | |
| | | |
Endo Luxembourg Finance Co. I S.a.r.l./Endo US, Inc., 6.125%, 4/1/29(4) | | | | | 218 | | | | 215,051 | |
| | | |
Herbalife Nutrition, Ltd./HLF Financing, Inc., 7.875%, 9/1/25(4) | | | | | 392 | | | | 421,384 | |
| | | |
HLF Financing S.a.r.l., LLC/Herbalife International, Inc., 4.875%, 6/1/29(4) | | | | | 276 | | | | 278,341 | |
| | | |
Jazz Securities DAC, 4.375%, 1/15/29(4) | | | | | 224 | | | | 230,440 | |
| | | |
Option Care Health, Inc., 4.375%, 10/31/29(4) | | | | | 97 | | | | 98,070 | |
| | | |
Owens & Minor, Inc., 4.50%, 3/31/29(4) | | | | | 180 | | | | 180,900 | |
| |
| | | $ | 3,196,202 | |
|
Pipelines — 1.0% | |
|
Antero Midstream Partners, L.P./Antero Midstream Finance Corp.: | |
| | | |
5.75%, 3/1/27(4) | | | | | 102 | | | $ | 105,443 | |
| | | |
7.875%, 5/15/26(4) | | | | | 109 | | | | 119,355 | |
|
Cheniere Energy Partners, L.P.: | |
| | | |
4.00%, 3/1/31(4) | | | | | 519 | | | | 540,417 | |
| | | |
4.50%, 10/1/29 | | | | | 199 | | | | 212,717 | |
| | | |
Cheniere Energy, Inc., 4.625%, 10/15/28 | | | | | 183 | | | | 192,141 | |
| | | |
DT Midstream, Inc., 4.125%, 6/15/29(4) | | | | | 172 | | | | 173,445 | |
| | | |
Energy Transfer, L.P., Series B, 6.625% to 2/15/28(6)(7) | | | | | 147 | | | | 142,958 | |
|
EQM Midstream Partners, L.P.: | |
| | | |
4.50%, 1/15/29(4) | | | | | 137 | | | | 141,111 | |
| | | |
6.00%, 7/1/25(4) | | | | | 116 | | | | 126,005 | |
| | | |
6.50%, 7/1/27(4) | | | | | 116 | | | | 129,202 | |
| | | |
Genesis Energy, L.P./Genesis Energy Finance Corp., 8.00%, 1/15/27 | | | | | 123 | | | | 123,771 | |
| | | |
New Fortress Energy, Inc., 6.50%, 9/30/26(4) | | | | | 382 | | | | 371,846 | |
|
Venture Global Calcasieu Pass, LLC: | |
| | | |
3.875%, 8/15/29(4) | | | | | 146 | | | | 148,737 | |
| | | |
4.125%, 8/15/31(4) | | | | | 130 | | | | 134,706 | |
|
Western Midstream Operating, L.P.: | |
| | | |
4.50%, 3/1/28 | | | | | 27 | | | | 29,261 | |
| | | |
4.75%, 8/15/28 | | | | | 24 | | | | 26,435 | |
| | | |
5.30%, 2/1/30 | | | | | 207 | | | | 227,182 | |
| |
| | | $ | 2,944,732 | |
| | | | |
| | 26 | | See Notes to Financial Statements. |
Global Income Builder Portfolio
October 31, 2021
Portfolio of Investments — continued
| | | | | | | | | | |
Security | | | | Principal Amount* (000’s omitted) | | | Value | |
|
Real Estate Investment Trusts (REITs) — 0.9% | |
|
ADLER Group S.A.: | |
| | | |
2.75%, 11/13/26(5) | | EUR | | | 200 | | | $ | 207,801 | |
| | | |
3.25%, 8/5/25(5) | | EUR | | | 100 | | | | 107,335 | |
| | | |
Aedas Homes Opco SLU, 4.00%, 8/15/26(5) | | EUR | | | 287 | | | | 338,399 | |
|
HAT Holdings I, LLC/HAT Holdings II, LLC: | |
| | | |
3.75%, 9/15/30(4) | | | | | 151 | | | | 150,257 | |
| | | |
6.00%, 4/15/25(4) | | | | | 127 | | | | 132,423 | |
| | | |
Heimstaden Bostad AB, 3.00% to 10/29/27(5)(6)(7) | | EUR | | | 415 | | | | 459,298 | |
|
Service Properties Trust: | |
| | | |
3.95%, 1/15/28 | | | | | 310 | | | | 288,688 | |
| | | |
4.95%, 10/1/29 | | | | | 23 | | | | 22,166 | |
| | | |
5.50%, 12/15/27 | | | | | 49 | | | | 51,284 | |
| | | |
7.50%, 9/15/25 | | | | | 167 | | | | 184,887 | |
| | | |
Signa Development Finance SCS, 5.50%, 7/23/26(5) | | EUR | | | 300 | | | | 304,750 | |
|
VICI Properties, L.P./VICI Note Co., Inc.: | |
| | | |
3.75%, 2/15/27(4) | | | | | 27 | | | | 27,776 | |
| | | |
4.125%, 8/15/30(4) | | | | | 198 | | | | 208,148 | |
| | | |
4.25%, 12/1/26(4) | | | | | 300 | | | | 311,124 | |
| | | |
4.625%, 12/1/29(4) | | | | | 66 | | | | 70,496 | |
| |
| | | $ | 2,864,832 | |
|
Semiconductors & Semiconductor Equipment — 0.1% | |
| | | |
ON Semiconductor Corp., 3.875%, 9/1/28(4) | | | | | 258 | | | $ | 261,225 | |
| |
| | | $ | 261,225 | |
|
Software — 0.2% | |
| | | |
Black Knight InfoServ, LLC, 3.625%, 9/1/28(4) | | | | | 216 | | | $ | 215,190 | |
| | | |
Playtika Holding Corp., 4.25%, 3/15/29(4) | | | | | 222 | | | | 222,899 | |
| | | |
SS&C Technologies, Inc., 5.50%, 9/30/27(4) | | | | | 95 | | | | 100,106 | |
| |
| | | $ | 538,195 | |
|
Specialty Retail — 1.9% | |
| | | |
Arko Corp., 5.125%, 11/15/29(4) | | | | | 172 | | | $ | 168,104 | |
| | | |
Carrols Restaurant Group, Inc., 5.875%, 7/1/29(4) | | | | | 95 | | | | 87,083 | |
| | | |
Dave & Buster’s, Inc., 7.625%, 11/1/25(4) | | | | | 387 | | | | 416,068 | |
| | | |
Dufry One B.V., 3.375%, 4/15/28(5) | | EUR | | | 379 | | | | 431,552 | |
| | | |
eG Global Finance PLC, 6.25%, 10/30/25(5) | | EUR | | | 450 | | | | 528,562 | |
| | | |
Entegris, Inc., 4.375%, 4/15/28(4) | | | | | 33 | | | | 34,238 | |
|
Gap, Inc. (The): | |
| | | |
3.625%, 10/1/29(4) | | | | | 110 | | | | 107,938 | |
| | | |
3.875%, 10/1/31(4) | | | | | 65 | | | | 63,781 | |
| | | |
Group 1 Automotive, Inc., 4.00%, 8/15/28(4) | | | | | 203 | | | | 203,294 | |
| | | |
IRB Holding Corp., 7.00%, 6/15/25(4) | | | | | 77 | | | | 81,428 | |
| | | |
Ken Garff Automotive, LLC, 4.875%, 9/15/28(4) | | | | | 155 | | | | 157,131 | |
| | | | | | | | | | |
Security | | | | Principal Amount* (000’s omitted) | | | Value | |
|
Specialty Retail (continued) | |
|
L Brands, Inc.: | |
| | | |
6.625%, 10/1/30(4) | | | | | 144 | | | $ | 161,290 | |
| | | |
6.75%, 7/1/36 | | | | | 80 | | | | 96,150 | |
| | | |
6.875%, 11/1/35 | | | | | 205 | | | | 249,325 | |
| | | |
6.95%, 3/1/33 | | | | | 151 | | | | 170,914 | |
| | | |
7.60%, 7/15/37 | | | | | 45 | | | | 53,494 | |
| | | |
9.375%, 7/1/25(4) | | | | | 31 | | | | 38,479 | |
| | | |
LCM Investments Holdings II, LLC, 4.875%, 5/1/29(4) | | | | | 257 | | | | 264,214 | |
| | | |
Lithia Motors, Inc., 3.875%, 6/1/29(4) | | | | | 86 | | | | 89,226 | |
| | | |
Midco GB SASU, 7.75% (PIK), 11/1/27(5)(9)(10) | | EUR | | | 344 | | | | 403,907 | |
|
PetSmart, Inc./PetSmart Finance Corp.: | |
| | | |
4.75%, 2/15/28(4) | | | | | 264 | | | | 271,590 | |
| | | |
7.75%, 2/15/29(4) | | | | | 250 | | | | 270,492 | |
| | | |
Punch Finance PLC, 6.125%, 6/30/26(5) | | GBP | | | 340 | | | | 467,381 | |
|
Sonic Automotive, Inc.: | |
| | | |
4.625%, 11/15/29(4) | | | | | 172 | | | | 172,714 | |
| | | |
4.875%, 11/15/31(4) | | | | | 143 | | | | 143,179 | |
| | | |
Suburban Propane Partners, L.P./Suburban Energy Finance Corp., 5.00%, 6/1/31(4) | | | | | 135 | | | | 138,544 | |
| | | |
Superior Plus, L.P./Superior General Partner, Inc., 4.50%, 3/15/29(4) | | | | | 207 | | | | 211,958 | |
| | | |
Victoria’s Secret & Co., 4.625%, 7/15/29(4) | | | | | 193 | | | | 194,090 | |
| | | |
White Cap Parent, LLC, 8.25%, (8.25% cash or 9.00% PIK), 3/15/26(4)(10) | | | | | 108 | | | | 109,351 | |
| | | |
Yum! Brands, Inc., 3.625%, 3/15/31 | | | | | 182 | | | | 180,107 | |
| |
| | | $ | 5,965,584 | |
|
Technology Hardware, Storage & Peripherals — 0.3% | |
| | | |
Almaviva-The Italian Innovation Co. SpA, 4.875%, 10/30/26(5)(9) | | EUR | | | 200 | | | $ | 230,795 | |
|
Booz Allen Hamilton, Inc.: | |
| | | |
3.875%, 9/1/28(4) | | | | | 223 | | | | 226,479 | |
| | | |
4.00%, 7/1/29(4) | | | | | 97 | | | | 98,334 | |
| | | |
Science Applications International Corp., 4.875%, 4/1/28(4) | | | | | 260 | | | | 268,125 | |
| | | |
Seagate HDD Cayman, 3.125%, 7/15/29(4) | | | | | 139 | | | | 133,509 | |
| |
| | | $ | 957,242 | |
|
Telecommunications — 1.1% | |
| | | |
Altice France Holding S.A., 10.50%, 5/15/27(4) | | | | | 200 | | | $ | 217,000 | |
| | | |
Connect Finco S.a.r.l./Connect US Finco, LLC, 6.75%, 10/1/26(4) | | | | | 421 | | | | 437,314 | |
| | | |
LogMeIn, Inc., 5.50%, 9/1/27(4) | | | | | 211 | | | | 211,452 | |
| | | |
Sprint Capital Corp., 6.875%, 11/15/28 | | | | | 250 | | | | 316,422 | |
| | | |
Sprint Corp., 7.875%, 9/15/23 | | | | | 375 | | | | 416,250 | |
| | | | |
| | 27 | | See Notes to Financial Statements. |
Global Income Builder Portfolio
October 31, 2021
Portfolio of Investments — continued
| | | | | | | | | | |
Security | | | | Principal Amount* (000’s omitted) | | | Value | |
|
Telecommunications (continued) | |
|
T-Mobile USA, Inc.: | |
| | | |
2.25%, 2/15/26 | | | | | 132 | | | $ | 132,825 | |
| | | |
2.625%, 2/15/29 | | | | | 165 | | | | 163,762 | |
| | | |
2.875%, 2/15/31 | | | | | 99 | | | | 98,505 | |
| | | |
4.75%, 2/1/28 | | | | | 170 | | | | 179,562 | |
| | | |
Telecom Italia Capital S.A., 6.00%, 9/30/34 | | | | | 215 | | | | 239,492 | |
| | | |
Telecom Italia Finance S.A., 7.75%, 1/24/33 | | EUR | | | 26 | | | | 42,687 | |
| | | |
Telecom Italia SpA, 2.75%, 4/15/25(5) | | EUR | | | 140 | | | | 168,512 | |
| | | |
Vmed O2 UK Financing I PLC, 3.25%, 1/31/31(5) | | EUR | | | 100 | | | | 116,092 | |
|
Vodafone Group PLC: | |
| | | |
2.625% to 5/27/26, 8/27/80(5)(6) | | EUR | | | 220 | | | | 260,599 | |
| | | |
4.875% to 7/3/25, 10/3/78(5)(6) | | GBP | | | 215 | | | | 311,547 | |
| |
| | | $ | 3,312,021 | |
|
Transportation — 0.2% | |
| | | |
Cargo Aircraft Management, Inc., 4.75%, 2/1/28(4) | | | | | 247 | | | $ | 251,940 | |
| | | |
Seaspan Corp., 5.50%, 8/1/29(4) | | | | | 213 | | | | 215,377 | |
| |
| | | $ | 467,317 | |
|
Wireless Telecommunication Services — 0.6% | |
| | | |
Altice France S.A., 5.50%, 10/15/29(4) | | | | | 200 | | | $ | 196,294 | |
|
Iliad Holding SAS: | |
| | | |
5.125%, 10/15/26(5) | | EUR | | | 191 | | | | 227,268 | |
| | | |
6.50%, 10/15/26(4) | | | | | 258 | | | | 266,171 | |
| | | |
Lorca Telecom Bondco S.A.U., 4.00%, 9/18/27(5) | | EUR | | | 650 | | | | 757,674 | |
| | | |
Sprint Corp., 7.625%, 3/1/26 | | | | | 157 | | | | 188,424 | |
| | | |
Viavi Solutions, Inc., 3.75%, 10/1/29(4) | | | | | 118 | | | | 117,298 | |
| |
| | | $ | 1,753,129 | |
| |
Total Corporate Bonds (identified cost $101,875,482) | | | $ | 103,860,581 | |
|
Exchange-Traded Funds — 0.1% | |
Security | | | | Shares | | | Value | |
|
Equity Funds — 0.1% | |
| | | |
Global X U.S. Preferred ETF | | | | | 7,235 | | | $ | 187,893 | |
| | | |
iShares Preferred & Income Securities ETF | | | | | 4,902 | | | | 192,992 | |
| |
Total Exchange-Traded Funds (identified cost $366,793) | | | $ | 380,885 | |
| | | | | | | | | | |
Preferred Stocks — 1.4% | |
Security | | | | Shares | | | Value | |
|
Banks — 0.3% | |
| | | |
Farm Credit Bank of Texas, 6.75% to 9/15/23(4)(6) | | | | | 1,115 | | | $ | 120,977 | |
| | | |
First Republic Bank, Series M, 4.00% | | | | | 4,600 | | | | 112,148 | |
| | | |
JPMorgan Chase & Co., Series LL, 4.625% | | | | | 2,350 | | | | 61,429 | |
| | | |
Signature Bank, Series A, 5.00% | | | | | 5,000 | | | | 129,500 | |
|
Wells Fargo & Co.: | |
| | | |
Series DD, 4.25% | | | | | 2,380 | | | | 59,405 | |
| | | |
Series L, 7.50% (Convertible) | | | | | 103 | | | | 156,557 | |
| | | |
Series Z, 4.75% | | | | | 4,762 | | | | 123,336 | |
| |
| | | $ | 763,352 | |
|
Capital Markets — 0.1% | |
| | | |
Affiliated Managers Group, Inc., 4.75% | | | | | 2,250 | | | $ | 58,298 | |
| | | |
KKR Group Finance Co. IX, LLC, 4.625% | | | | | 7,000 | | | | 183,925 | |
| | | |
Stifel Financial Corp., Series D, 4.50% | | | | | 4,600 | | | | 117,300 | |
| |
| | | $ | 359,523 | |
|
Electric Utilities — 0.1% | |
| | | |
Brookfield BRP Holdings Canada, Inc., 4.625% | | | | | 7,000 | | | $ | 174,860 | |
| | | |
SCE Trust III, Series H, 5.75% to 3/15/24(6) | | | | | 5,331 | | | | 137,380 | |
| | | |
SCE Trust IV, Series J, 5.375% to 9/15/25(6) | | | | | 1,911 | | | | 47,889 | |
| | | |
SCE Trust V, Series K, 5.45% to 3/15/26(6) | | | | | 3,551 | | | | 91,900 | |
| |
| | | $ | 452,029 | |
|
Equity Real Estate Investment Trusts (REITs) — 0.0%(3) | |
| | | |
SITE Centers Corp., Series A, 6.375%(1) | | | | | 4,730 | | | $ | 124,304 | |
| |
| | | $ | 124,304 | |
|
Food Products — 0.1% | |
| | | |
Dairy Farmers of America, Inc., 7.875%(4) | | | | | 2,550 | | | $ | 256,275 | |
| | | |
Ocean Spray Cranberries, Inc., Series A, 6.25%(4) | | | | | 540 | | | | 50,490 | |
| |
| | | $ | 306,765 | |
|
Health Care Equipment & Supplies — 0.1% | |
| | | |
Becton Dickinson and Co., Series B, 6.00% | | | | | 3,268 | | | $ | 171,897 | |
| |
| | | $ | 171,897 | |
|
Independent Power and Renewable Electricity Producers — 0.0%(3) | |
| | | |
Algonquin Power & Utilities Corp., Series 19-A, 6.20% to 7/1/24(6) | | | | | 2,867 | | | $ | 80,455 | |
| |
| | | $ | 80,455 | |
| | | | |
| | 28 | | See Notes to Financial Statements. |
Global Income Builder Portfolio
October 31, 2021
Portfolio of Investments — continued
| | | | | | | | | | |
Security | | | | Shares | | | Value | |
|
Insurance — 0.2% | |
| | | |
American Equity Investment Life Holding Co., Series B, 6.625% to 9/1/25(6) | | | | | 7,517 | | | $ | 215,212 | |
| | | |
Arch Capital Group, Ltd., Series G, 4.55% | | | | | 7,000 | | | | 181,650 | |
| | | |
Athene Holding, Ltd., Series C, 6.375% to 6/30/25(6) | | | | | 4,920 | | | | 142,089 | |
| |
| | | $ | 538,951 | |
|
Oil, Gas & Consumable Fuels — 0.1% | |
| | | |
NuStar Energy, L.P., Series B, 7.625% to 6/15/22(6) | | | | | 15,478 | | | $ | 350,577 | |
| |
| | | $ | 350,577 | |
|
Pipelines — 0.1% | |
|
Energy Transfer Operating, L.P.: | |
| | | |
Series C, 7.375% to 5/15/23(6) | | | | | 3,000 | | | $ | 75,720 | |
| | | |
Series E, 7.60% to 5/15/24(6) | | | | | 4,970 | | | | 126,834 | |
| |
| | | $ | 202,554 | |
|
Real Estate Management & Development — 0.1% | |
|
Brookfield Property Partners, L.P.: | |
| | | |
Series A, 5.75% | | | | | 6,545 | | | $ | 159,763 | |
| | | |
Series A2, 6.375% | | | | | 8,191 | | | | 212,475 | |
| |
| | | $ | 372,238 | |
|
Trading Companies & Distributors — 0.1% | |
| | | |
WESCO International, Inc., Series A, 10.625% | | | | | 12,788 | | | $ | 401,543 | |
| |
| | | $ | 401,543 | |
|
Wireless Telecommunication Services — 0.1% | |
| | | |
United States Cellular Corp., 5.50% | | | | | 11,460 | | | $ | 304,951 | |
| |
| | | $ | 304,951 | |
| |
Total Preferred Stocks (identified cost $4,294,195) | | | $ | 4,429,139 | |
|
Senior Floating-Rate Loans — 1.9%(11) | |
Borrower/Description | | | | Principal Amount (000’s omitted) | | | Value | |
|
Air Transport — 0.2% | |
| | | |
Air Canada, Term Loan, 4.25%, (6 mo. USD LIBOR + 3.50%, Floor 0.75%), 8/11/28 | | | | $ | 204 | | | $ | 206,380 | |
| | | |
Mileage Plus Holdings, LLC, Term Loan, 6.25%, (3 mo. USD LIBOR + 5.25%, Floor 1.00%), 6/21/27 | | | | | 426 | | | | 454,363 | |
| |
| | | $ | 660,743 | |
| | | | | | | | | | |
Borrower/Description | | | | Principal Amount (000’s omitted) | | | Value | |
|
Automotive — 0.1% | |
| | | |
Truck Hero, Inc., Term Loan, 4.00%, (1 mo. USD LIBOR + 3.25%, Floor 0.75%), 1/31/28 | | | | $ | 235 | | | $ | 234,130 | |
| | | |
Wheel Pros, LLC, Term Loan, 5.25%, (1 mo. USD LIBOR + 4.50%, Floor 0.75%), 5/11/28 | | | | | 198 | | | | 197,492 | |
| |
| | | $ | 431,622 | |
|
Building and Development — 0.1% | |
| | | |
SRS Distribution, Inc., Term Loan, 4.25%, (6 mo. USD LIBOR + 3.75%, Floor 0.50%), 6/2/28 | | | | $ | 208 | | | $ | 208,712 | |
| |
| | | $ | 208,712 | |
|
Business Equipment and Services — 0.2% | |
| | | |
AlixPartners, LLP, Term Loan, 3.25%, (1 mo. USD LIBOR + 2.75%, Floor 0.50%), 2/4/28 | | | | $ | 210 | | | $ | 209,595 | |
| | | |
Spin Holdco, Inc., Term Loan, 4.75%, (3 mo. USD LIBOR + 4.00%, Floor 0.75%), 3/4/28 | | | | | 138 | | | | 138,451 | |
| | | |
Travelport Finance (Luxembourg) S.a.r.l., Term Loan, 2/28/25(12) | | | | | 208 | | | | 216,109 | |
| |
| | | $ | 564,155 | |
|
Cable and Satellite Television — 0.1% | |
| | | |
DIRECTV Financing, LLC, Term Loan, 5.75%, (3 mo. USD LIBOR + 5.00%, Floor 0.75%), 7/22/27 | | | | $ | 132 | | | $ | 132,248 | |
| |
| | | $ | 132,248 | |
|
Drugs — 0.2% | |
| | | |
Jazz Financing Lux S.a.r.l., Term Loan, 4.00%, (1 mo. USD LIBOR + 3.50%, Floor 0.50%), 4/21/28 | | | | $ | 569 | | | $ | 569,997 | |
| |
| | | $ | 569,997 | |
|
Electronics / Electrical — 0.3% | |
| | | |
LogMeIn, Inc., Term Loan, 4.834%, (1 mo. USD LIBOR + 4.75%), 8/31/27 | | | | $ | 445 | | | $ | 445,098 | |
| | | |
RealPage, Inc., Term Loan, 3.75%, (1 mo. USD LIBOR + 3.25%, Floor 0.50%), 4/24/28 | | | | | 223 | | | | 222,744 | |
|
Riverbed Technology, Inc.: | |
| | | |
Term Loan, 7.00%, (1 mo. USD LIBOR + 6.00%, Floor 1.00%), 12/31/25 | | | | | 169 | | | | 154,911 | |
| | | |
Term Loan - Second Lien, 12.00%, (3 mo. USD LIBOR + 11.00%, Floor 1.00%), 7.50% cash, 4.50% PIK, 12/31/26 | | | | | 286 | | | | 91,799 | |
| |
| | | $ | 914,552 | |
| | | | |
| | 29 | | See Notes to Financial Statements. |
Global Income Builder Portfolio
October 31, 2021
Portfolio of Investments — continued
| | | | | | | | | | |
Borrower/Description | | | | Principal Amount (000’s omitted) | | | Value | |
|
Financial Intermediaries — 0.1% | |
|
Spectacle Gary Holdings, LLC: | |
| | | |
Term Loan, 11.00%, (3 mo. USD LIBOR + 9.00%, Floor 2.00%), 12/23/25 | | | | $ | 162 | | | $ | 176,808 | |
| | | |
Term Loan, 11.00%, (3 mo. USD LIBOR + 9.00%, Floor 2.00%), 12/23/25 | | | | | 12 | | | | 12,812 | |
| |
| | | $ | 189,620 | |
|
Food Products — 0.0%(3) | |
| | | |
Post Holdings, Inc., Term Loan, 4.75%, (1 mo. USD LIBOR + 4.00%, Floor 0.75%), 10/21/24 | | | | $ | 87 | | | $ | 87,908 | |
| |
| | | $ | 87,908 | |
|
Food Service — 0.1% | |
| | | |
IRB Holding Corp., Term Loan, 4.25%, (3 mo. USD LIBOR + 3.25%, Floor 1.00%), 12/15/27 | | | | $ | 240 | | | $ | 240,510 | |
| |
| | | $ | 240,510 | |
|
Health Care — 0.1% | |
| | | |
Verscend Holding Corp., Term Loan, 4.087%, (1 mo. USD LIBOR + 4.00%), 8/27/25 | | | | $ | 249 | | | $ | 250,123 | |
| |
| | | $ | 250,123 | |
|
Insurance — 0.1% | |
|
Asurion, LLC: | |
| | | |
Term Loan - Second Lien, 5.337%, (1 mo. USD LIBOR + 5.25%), 1/31/28 | | | | $ | 240 | | | $ | 239,425 | |
| | | |
Term Loan - Second Lien, 5.337%, (1 mo. USD LIBOR + 5.25%), 1/20/29 | | | | | 174 | | | | 173,492 | |
| |
| | | $ | 412,917 | |
|
Leisure Goods / Activities / Movies — 0.1% | |
| | | |
Playtika Holding Corp., Term Loan, 2.837%, (1 mo. USD LIBOR + 2.75%), 3/13/28 | | | | $ | 315 | | | $ | 314,708 | |
| |
| | | $ | 314,708 | |
|
Lodging and Casinos — 0.1% | |
| | | |
Gateway Casinos & Entertainment Limited, Term Loan, 12/1/23(12) | | | | $ | 62 | | | $ | 62,314 | |
| | | |
Playa Resorts Holding B.V., Term Loan, 3.75%, (1 mo. USD LIBOR + 2.75%, Floor 1.00%), 4/29/24 | | | | | 306 | | | | 299,341 | |
| |
| | | $ | 361,655 | |
| | | | | | | | | | |
Borrower/Description | | | | Principal Amount (000’s omitted) | | | Value | |
|
Retailers (Except Food and Drug) — 0.1% | |
| | | |
PetSmart, Inc., Term Loan, 4.50%, (6 mo. USD LIBOR + 3.75%, Floor 0.75%), 2/11/28 | | | | $ | 386 | | | $ | 387,032 | |
| |
| | | $ | 387,032 | |
| |
Total Senior Floating-Rate Loans (identified cost $5,932,958) | | | $ | 5,726,502 | |
|
Miscellaneous — 0.0%(3) | |
Security | | | | Principal Amount | | | Value | |
|
Surface Transport — 0.0%(3) | |
| | | |
Hertz Corp., Escrow Certificates(1) | | | | $ | 110,000 | | | $ | 3,575 | |
| | | |
Hertz Corp., Escrow Certificates(1) | | | | | 58,000 | | | | 4,060 | |
| | | |
Hertz Corp., Escrow Certificates(1) | | | | | 167,000 | | | | 5,010 | |
| |
| | | $ | 12,645 | |
| |
Total Miscellaneous (identified cost $0) | | | $ | 12,645 | |
|
Short-Term Investments — 0.5% | |
Description | | | | Units | | | Value | |
| | | |
Eaton Vance Cash Reserves Fund, LLC, 0.09%(14) | | | | | 1,432,849 | | | $ | 1,432,849 | |
| |
Total Short-Term Investments (identified cost $1,432,849) | | | $ | 1,432,849 | |
| |
Total Investments — 98.9% (identified cost $230,213,266) | | | $ | 303,148,419 | |
| |
Other Assets, Less Liabilities — 1.1% | | | $ | 3,396,780 | |
| |
Net Assets — 100.0% | | | $ | 306,545,199 | |
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
| * | In U.S. dollars unless otherwise indicated. |
| (1) | Non-income producing security. |
| (2) | Represents an investment in an issuer that may be deemed to be an affiliate effective March 1, 2021 (see Note7). |
| (3) | Amount is less than 0.05%. |
| (4) | Security exempt from registration under Rule 144A of 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, 2021, the aggregate value of these securities is $58,763,790 or 19.2% of the Portfolio’s net assets. |
| | | | |
| | 30 | | See Notes to Financial Statements. |
Global Income Builder Portfolio
October 31, 2021
Portfolio of Investments — continued
| (5) | Security exempt from registration under Regulation S of the Securities Act of 1933, as amended, which exempts from registration securities offered and sold outside the United States. Security may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933, as amended. At October 31, 2021, the aggregate value of these securities is $22,308,872 or 7.3% of the Portfolio’s net assets. |
| (6) | Security converts to variable rate after the indicated fixed-rate coupon period. |
| (7) | Perpetual security with no stated maturity date but may be subject to calls by the issuer. |
| (8) | Variable rate security. The stated interest rate represents the rate in effect at October 31, 2021. |
| (9) | When-issued security. |
(10) | Represents a payment-in-kind security which may pay interest in additional principal at the issuer’s discretion. |
(11) | Senior floating-rate loans (Senior Loans) often require prepayments from excess cash flows or permit the borrowers to repay at their election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, Senior Loans will typically have an expected average life of approximately two to four years. Senior Loans typically have rates of interest which are redetermined periodically by reference to a base lending rate, plus a spread. These base lending rates are primarily the London Interbank Offered Rate (“LIBOR”) and secondarily, the prime rate offered by one or more major United States banks (the “Prime Rate”). Base lending rates may be subject to a floor, or minimum rate. Senior Loans are generally subject to contractual restrictions that must be satisfied before they can be bought or sold. |
(12) | This Senior Loan will settle after October 31, 2021, at which time the interest rate will be determined. |
(13) | Issuer is in default with respect to interest and/or principal payments. |
(14) | 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, 2021. |
| | | | | | | | |
Country Concentration of Portfolio | |
Country | | Percentage of Total Investments | | | Value | |
| | |
United States | | | 61.6 | % | | $ | 186,658,881 | |
| | |
United Kingdom | | | 7.1 | | | | 21,519,655 | |
| | |
France | | | 5.3 | | | | 15,910,697 | |
| | |
Switzerland | | | 4.6 | | | | 14,046,418 | |
| | |
Japan | | | 3.9 | | | | 11,823,480 | |
| | |
Netherlands | | | 2.4 | | | | 7,421,178 | |
| | |
Germany | | | 2.2 | | | | 6,536,427 | |
| | |
Spain | | | 1.9 | | | | 5,736,819 | |
| | |
Sweden | | | 1.8 | | | | 5,316,096 | |
| | |
Australia | | | 1.6 | | | | 4,992,317 | |
| | |
Luxembourg | | | 1.5 | | | | 4,580,853 | |
| | |
Canada | | | 1.4 | | | | 4,360,249 | |
| | |
Ireland | | | 1.1 | | | | 3,367,172 | |
| | |
Denmark | | | 1.0 | | | | 3,127,905 | |
| | |
Taiwan | | | 0.7 | | | | 2,258,878 | |
| | |
Italy | | | 0.5 | | | | 1,358,884 | |
| | |
India | | | 0.4 | | | | 1,227,822 | |
| | |
United Arab Emirates | | | 0.3 | | | | 1,040,349 | |
| | |
China | | | 0.2 | | | | 496,189 | |
| | |
Peru | | | 0.1 | | | | 332,899 | |
| | |
Mexico | | | 0.1 | | | | 248,226 | |
| | |
Hong Kong | | | 0.1 | | | | 215,377 | |
| | |
Turkey | | | 0.1 | | | | 178,913 | |
| | |
Brazil | | | 0.0 | (1) | | | 11,850 | |
| | |
Exchange-Traded Funds | | | 0.1 | | | | 380,885 | |
| | |
Total Investments | | | 100.0 | % | | $ | 303,148,419 | |
(1) | Amount is less than 0.05%. |
| | | | | | | | | | | | | | | | | | | | | | | | |
Forward Foreign Currency Exchange Contracts | |
| | | | | |
Currency Purchased | | | Currency Sold | | | Counterparty | | Settlement Date | | | Unrealized Appreciation | | | Unrealized (Depreciation) | |
| | | | | | | |
USD | | | 150,234 | | | GBP | | | 109,117 | | | State Street Bank and Trust Company | | | 11/30/21 | | | $ | 899 | | | $ | — | |
| | | | | | | |
USD | | | 76,121 | | | CAD | | | 94,000 | | | State Street Bank and Trust Company | | | 1/31/22 | | | | 160 | | | | — | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | $ | 1,059 | | | $ | — | |
Abbreviations:
| | | | |
| | |
ADR | | – | | American Depositary Receipt |
| | |
EURIBOR | | – | | Euro Interbank Offered Rate |
| | |
LIBOR | | – | | London Interbank Offered Rate |
| | |
PC | | – | | Participation Certificate |
| | |
PIK | | – | | Payment In Kind |
Currency Abbreviations:
| | | | |
| | |
CAD | | – | | Canadian Dollar |
| | |
EUR | | – | | Euro |
| | |
GBP | | – | | British Pound Sterling |
| | |
USD | | – | | United States Dollar |
| | | | |
| | 31 | | See Notes to Financial Statements. |
Global Income Builder Portfolio
October 31, 2021
Statement of Assets and Liabilities
| | | | |
Assets | | October 31, 2021 | |
| |
Unaffiliated investments, at value (identified cost, $227,508,112) | | $ | 300,244,431 | |
| |
Affiliated investments, at value (identified cost, $2,705,154) | | | 2,903,988 | |
| |
Cash | | | 27,315 | |
| |
Foreign currency, at value (identified cost, $575,809) | | | 573,547 | |
| |
Interest and dividends receivable | | | 1,478,554 | |
| |
Dividends receivable from affiliated investments | | | 27,529 | |
| |
Receivable for investments sold | | | 1,792,650 | |
| |
Receivable for open forward foreign currency exchange contracts | | | 1,059 | |
| |
Tax reclaims receivable | | | 1,546,134 | |
| |
Total assets | | $ | 308,595,207 | |
| |
Liabilities | | | | |
| |
Payable for investments purchased | | $ | 302,891 | |
| |
Payable for when-issued securities | | | 1,422,222 | |
| |
Payable to affiliates: | | | | |
| |
Investment adviser fee | | | 142,716 | |
| |
Trustees’ fees | | | 1,262 | |
| |
Accrued expenses | | | 180,917 | |
| |
Total liabilities | | $ | 2,050,008 | |
| |
Net Assets applicable to investors’ interest in Portfolio | | $ | 306,545,199 | |
| | | | |
| | 32 | | See Notes to Financial Statements. |
Global Income Builder Portfolio
October 31, 2021
Statement of Operations
| | | | |
Investment Income | | Year Ended
October 31, 2021 | |
| |
Interest (net of foreign taxes, $8,708) | | $ | 6,068,967 | |
| |
Dividends (net of foreign taxes, $430,915) | | | 4,906,712 | |
| |
Dividends from affiliated investments (net of foreign taxes, $9,613) | | | 55,746 | |
| |
Total investment income | | $ | 11,031,425 | |
| |
Expenses | | | | |
| |
Investment adviser fee | | $ | 1,657,937 | |
| |
Trustees’ fees and expenses | | | 15,023 | |
| |
Custodian fee | | | 159,880 | |
| |
Legal and accounting services | | | 64,567 | |
| |
Miscellaneous | | | 56,166 | |
| |
Total expenses | | $ | 1,953,573 | |
| |
Net investment income | | $ | 9,077,852 | |
| |
Realized and Unrealized Gain (Loss) | | | | |
| |
Net realized gain (loss) — | | | | |
| |
Investment transactions (net of foreign capital gains taxes of $3,277) | | $ | 14,765,848 | (1) |
| |
Investment transactions — affiliated investments | | | 30 | |
| |
Financial futures contracts | | | 314,187 | |
| |
Foreign currency transactions | | | (138,553 | ) |
| |
Forward foreign currency exchange contracts | | | 23,658 | |
| |
Net realized gain | | $ | 14,965,170 | |
| |
Change in unrealized appreciation (depreciation) — | | | | |
| |
Investments | | $ | 51,363,789 | |
| |
Investments — affiliated investments | | | 60,042 | |
| |
Financial futures contracts | | | (176,165 | ) |
| |
Foreign currency | | | 71,721 | |
| |
Forward foreign currency exchange contracts | | | 13,986 | |
| |
Net change in unrealized appreciation (depreciation) | | $ | 51,333,373 | |
| |
Net realized and unrealized gain | | $ | 66,298,543 | |
| |
Net increase in net assets from operations | | $ | 75,376,395 | |
(1) | Includes $2,723,051 of net realized gains from redemptions in-kind. |
| | | | |
| | 33 | | See Notes to Financial Statements. |
Global Income Builder Portfolio
October 31, 2021
Statements of Changes in Net Assets
| | | | | | | | |
| | Year Ended October 31, | |
Increase (Decrease) in Net Assets | | 2021 | | | 2020 | |
| | |
From operations — | | | | | | | | |
| | |
Net investment income | | $ | 9,077,852 | | | $ | 11,579,367 | |
| | |
Net realized gain (loss) | | | 14,965,170 | (1) | | | (2,169,739 | ) |
| | |
Net change in unrealized appreciation (depreciation) | | | 51,333,373 | | | | (4,171,298 | ) |
| | |
Net increase in net assets from operations | | $ | 75,376,395 | | | $ | 5,238,330 | |
| | |
Capital transactions — | | | | | | | | |
| | |
Contributions | | $ | 13,442,582 | | | $ | 9,268,119 | |
| | |
Withdrawals | | | (45,523,591 | ) | | | (53,647,355 | ) |
| | |
Portfolio transaction fee | | | 154,785 | | | | 216,038 | |
| | |
Net decrease in net assets from capital transactions | | $ | (31,926,224 | ) | | $ | (44,163,198 | ) |
| | |
Net increase (decrease) in net assets | | $ | 43,450,171 | | | $ | (38,924,868 | ) |
|
Net Assets | |
| | |
At beginning of year | | $ | 263,095,028 | | | $ | 302,019,896 | |
| | |
At end of year | | $ | 306,545,199 | | | $ | 263,095,028 | |
(1) | Includes $2,723,051 of net realized gains from redemptions in-kind. |
| | | | |
| | 34 | | See Notes to Financial Statements. |
Global Income Builder Portfolio
October 31, 2021
Financial Highlights
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended October 31, | |
Ratios/Supplemental Data | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| | | | | |
Ratios (as a percentage of average daily net assets): | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses | | | 0.65 | % | | | 0.66 | % | | | 0.70 | % | | | 0.75 | % | | | 0.75 | % |
| | | | | |
Net investment income | | | 3.01 | % | | | 4.12 | % | | | 4.72 | % | | | 3.47 | % | | | 4.56 | % |
| | | | | |
Portfolio Turnover | | | 60 | % | | | 118 | % | | | 86 | % | | | 102 | % | | | 143 | % |
| | | | | |
Total Return | | | 29.74 | % | | | 2.64 | % | | | 11.57 | % | | | (1.00 | )% | | | 15.99 | % |
| | | | | |
Net assets, end of period (000’s omitted) | | $ | 306,545 | | | $ | 263,095 | | | $ | 302,020 | | | $ | 323,437 | | | $ | 364,476 | |
| | | | |
| | 35 | | See Notes to Financial Statements. |
Global Income Builder Portfolio
October 31, 2021
Notes to Financial Statements
1 Significant Accounting Policies
Global Income Builder 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 total return. The Declaration of Trust permits the Trustees to issue interests in the Portfolio. At October 31, 2021, Eaton Vance Global Income Builder Fund and Eaton Vance Global Income Builder NextShares held an interest of 99.6% and 0.4%, 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 ask prices on the exchange where such securities are principally traded. Equity securities listed on the NASDAQ National Market System 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 ask prices or, in the case of preferred equity securities that are not listed or traded in the over-the-counter market, by a third party pricing service that uses various techniques that consider factors including, but not limited to, prices or yields of securities with similar characteristics, benchmark yields, broker/dealer quotes, quotes of underlying common stock, issuer spreads, as well as industry and economic events.
Debt Obligations. Debt obligations are generally valued on the basis of valuations provided by third party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and ask prices, broker/dealer quotations, prices or yields of securities with similar characteristics, interest rates, anticipated prepayments, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Short-term debt obligations purchased with a remaining maturity of sixty days or less for which a valuation from a third party pricing service is not readily available may be valued at amortized cost, which approximates fair value.
Senior Floating-Rate Loans. Interests in senior floating-rate loans (Senior Loans) for which reliable market quotations are readily available are valued generally at the average mean of bid and ask quotations obtained from a third party pricing service.
Derivatives. Financial futures contracts are valued at the closing settlement price established by the board of trade or exchange on which they are traded, with adjustments for fair valuation for certain foreign financial futures contracts as described below. Forward foreign currency exchange contracts are generally valued at the mean of the average bid and average ask prices that are reported by currency dealers to a third party pricing service at the valuation time. Such third party pricing service valuations are supplied for specific settlement periods and the Portfolio’s forward foreign currency exchange contracts are valued at an interpolated rate between the closest preceding and subsequent settlement period reported by the third party pricing service.
Foreign Securities, Financial Futures Contracts and Currencies. Foreign securities, financial futures contracts 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 and certain exchange-traded foreign financial futures contracts generally is determined as of the close of trading on the principal exchange on which such securities and contracts trade. Events occurring after the close of trading on foreign exchanges may result in adjustments to the valuation of foreign securities and certain foreign financial futures contracts 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 and foreign financial futures contracts that meet certain criteria, the Portfolio’s Trustees have approved the use of a fair value service that values such securities and foreign financial futures contracts 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 and foreign financial futures contracts.
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 most fairly reflects the security’s “fair value”, which is 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 statements, 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.
Global Income Builder Portfolio
October 31, 2021
Notes to Financial Statements — continued
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, interest 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. Distributions from investment companies are recorded as dividend income, capital gains or return of capital based on the nature of the distribution.
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 October 31, 2021, 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 Unfunded Loan Commitments — The Portfolio may enter into certain loan agreements all or a portion of which may be unfunded. The Portfolio is obligated to fund these commitments at the borrower’s discretion. These commitments, if any, are disclosed in the accompanying Portfolio of Investments.
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. 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 Financial Futures Contracts — Upon entering into a financial futures contract, the Portfolio is required to deposit with the broker, either in cash or securities, an amount equal to a certain percentage of the contract amount (initial margin). Subsequent payments, known as variation margin, are made or received by the Portfolio each business day, depending on the daily fluctuations in the value of the underlying security or index, and are recorded as unrealized gains or losses by the Portfolio. Gains (losses) are realized upon the expiration or closing of the financial futures contracts. Should market conditions change unexpectedly, the Portfolio may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. Futures contracts have minimal counterparty risk as they are exchange traded and the clearinghouse for the exchange is substituted as the counterparty, guaranteeing counterparty performance.
J Forward Foreign Currency Exchange Contracts — The Portfolio may enter into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date. The forward foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded as unrealized until such time as the contracts have been closed. Risks may arise upon entering these contracts from the potential inability of counterparties to meet the terms of their contracts and from movements in the value of a foreign currency relative to the U.S. dollar.
K When-Issued Securities and Delayed Delivery Transactions — The Portfolio may purchase securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. At the time the transaction is negotiated, the price of the security that will be delivered is fixed. The Portfolio maintains cash and/or security positions for these commitments such that sufficient liquid assets will be available to make payments upon settlement. Securities purchased on a delayed delivery or when-issued basis are marked-to-market daily and begin
Global Income Builder Portfolio
October 31, 2021
Notes to Financial Statements — continued
earning interest on settlement date. Such security purchases are subject to the risk that when delivered they will be worth less than the agreed upon payment price. Losses may also arise if the counterparty does not perform under the contract.
L Capital Transactions — To seek to protect the Portfolio (and, indirectly, other investors in the Portfolio) against the costs of accommodating investor inflows and outflows, the Portfolio imposes a fee (“Portfolio transaction fee”) on inflows and outflows by Portfolio investors. The Portfolio transaction fee is sized to cover the estimated cost to the Portfolio of, in connection with issuing interests, converting the cash and/or other instruments it receives to the desired composition and, in connection with redeeming its interests, converting Portfolio holdings to cash and/or other instruments to be distributed. Such fee, which may vary over time, is limited to amounts that have been authorized by the Board of Trustees and determined by EVM to be appropriate. The maximum Portfolio transaction fee is 2% of the amount of net contributions or withdrawals. The Portfolio transaction fee is recorded as a component of capital transactions on the Statements of Changes in Net Assets.
2 Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Boston Management and Research (BMR) as compensation for investment advisory services rendered to the Portfolio. On March 1, 2021, Morgan Stanley acquired Eaton Vance Corp. (the “Transaction”) and BMR became an indirect, wholly-owned subsidiary of Morgan Stanley. In connection with the Transaction, the Portfolio entered into a new investment advisory agreement (the “New Agreement”) with BMR, which took effect on March 1, 2021. The Portfolio’s prior fee reduction agreement was incorporated into the New Agreement. Pursuant to the New Agreement (and the Portfolio’s investment advisory agreement and related fee reduction agreement with BMR in effect prior to March 1, 2021), the fee is computed at an annual rate as a percentage of average daily net assets as follows and is payable monthly:
| | | | |
Average Daily Net Assets | | Annual Fee Rate | |
| |
Up to $500 million | | | 0.550 | % |
| |
$500 million but less than $1 billion | | | 0.525 | % |
| |
$1 billion but less than $2.5 billion | | | 0.500 | % |
| |
$2.5 billion and over | | | 0.475 | % |
For the year ended October 31, 2021, the Portfolio’s investment adviser fee amounted to $1,657,937 or 0.55% of the Portfolio’s average daily net assets.
Pursuant to an investment sub-advisory agreement, BMR has delegated a portion of the investment management of the Portfolio to Eaton Vance Advisers International Ltd. (EVAIL), an affiliate of BMR and, effective March 1, 2021, an indirect, wholly-owned subsidiary of Morgan Stanley. In connection with the Transaction, BMR entered into a new sub-advisory agreement with EVAIL, which took effect on March 1, 2021. BMR pays EVAIL a portion of its investment adviser fee for sub-advisory services provided to the Portfolio. The Portfolio may invest 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, 2021, 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 and in-kind transactions, and including maturities and principal repayments on Senior Loans, aggregated $174,993,789 and $191,341,831, respectively, for the year ended October 31, 2021. In-kind contributions and withdrawals for the year ended October 31, 2021 aggregated none and $5,695,643, respectively.
4 Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of investments, including open derivative contracts, of the Portfolio at October 31, 2021, as determined on a federal income tax basis, were as follows:
| | | | |
| |
Aggregate cost | | $ | 232,932,097 | |
| |
Gross unrealized appreciation | | $ | 73,203,025 | |
| |
Gross unrealized depreciation | | | (2,982,054 | ) |
| |
Net unrealized appreciation | | $ | 70,220,971 | |
Global Income Builder Portfolio
October 31, 2021
Notes to Financial Statements — continued
5 Financial Instruments
The Portfolio may trade in financial instruments with off-balance sheet risk in the normal course of its investing activities. These financial instruments may include forward foreign currency exchange contracts and financial futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment the Portfolio has in particular classes of financial instruments and do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. A summary of obligations under these financial instruments at October 31, 2021 is included in the Portfolio of Investments. At October 31, 2021, the Portfolio had sufficient cash and/or securities to cover commitments under these contracts.
In the normal course of pursuing its investment objectives, the Portfolio is subject to the following risks:
Equity Price Risk: The Portfolio enters into equity futures contracts on securities indices to gain or limit exposure to certain markets, particularly in connection with engaging in the dividend capture trading strategy.
Foreign Exchange Risk: Because the Portfolio holds foreign currency denominated investments, the value of these investments and related receivables and payables may change due to future changes in foreign currency exchange rates. To hedge against this risk, the Portfolio enters into forward foreign currency exchange contracts.
The Portfolio enters into forward foreign currency exchange contracts that may contain provisions whereby the counterparty may terminate the contract under certain conditions, including but not limited to a decline in the Portfolio’s net assets below a certain level over a certain period of time, which would trigger a payment by the Portfolio for those derivatives in a liability position. At October 31, 2021, the Portfolio had no open derivatives with credit-related contingent features in a net liability position.
The over-the-counter (OTC) derivatives in which the Portfolio invests are subject to the risk that the counterparty to the contract fails to perform its obligations under the contract. To mitigate this risk, the Portfolio has entered into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with substantially all its derivative counterparties. An ISDA Master Agreement is a bilateral agreement between the Portfolio and a counterparty that governs certain OTC derivatives and typically contains, among other things, set-off provisions in the event of a default and/or termination event as defined under the relevant ISDA Master Agreement. Under an ISDA Master Agreement, the Portfolio may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy or insolvency. Certain ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event the Portfolio’s net assets decline by a stated percentage or the Portfolio fails to meet the terms of its ISDA Master Agreements, which would cause the counterparty to accelerate payment by the Portfolio of any net liability owed to it.
The collateral requirements for derivatives traded under an ISDA Master Agreement are governed by a Credit Support Annex to the ISDA Master Agreement. Collateral requirements are determined at the close of business each day and are typically based on changes in market values for each transaction under an ISDA Master Agreement and netted into one amount for such agreement. Generally, the amount of collateral due from or to a counterparty is subject to a minimum transfer threshold amount before a transfer is required, which may vary by counterparty. Collateral pledged for the benefit of the Portfolio and/or counterparty is held in segregated accounts by the Portfolio’s custodian and cannot be sold, re-pledged, assigned or otherwise used while pledged. The portion of such collateral representing cash, if any, is reflected as deposits for derivatives collateral and, in the case of cash pledged by a counterparty for the benefit of the Portfolio, a corresponding liability on the Statement of Assets and Liabilities. Securities pledged by the Portfolio as collateral, if any, are identified as such in the Portfolio of Investments.
The fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) and whose primary underlying risk exposure is foreign exchange risk at October 31, 2021 was as follows:
| | | | | | | | |
| | Fair Value | |
Derivative | | Asset Derivative | | | Liability Derivative | |
| | |
Forward foreign currency exchange contracts | | $ | 1,059 | (1) | | | — | |
(1) | Statement of Assets and Liabilities location: Receivable for open forward foreign currency exchange contracts. |
Global Income Builder Portfolio
October 31, 2021
Notes to Financial Statements — continued
The Portfolio’s derivative assets and liabilities at fair value by risk, which are reported gross in the Statement of Assets and Liabilities, are presented in the table above. The following table presents the Portfolio’s derivative assets by counterparty, net of amounts available for offset under a master netting agreement and net of the related collateral received by the Portfolio for such assets as of October 31, 2021.
| | | | | | | | | | | | | | | | | | | | |
Counterparty | | Derivative Assets Subject to Master Netting Agreement | | | Derivatives Available for Offset | | | Non-cash Collateral Received(a) | | | Cash Collateral Received(a) | | | Net Amount of Derivative Assets(b) | |
| | | | | |
State Street Bank and Trust Company | | $ | 1,059 | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,059 | |
(a) | In some instances, the total collateral received and/or pledged may be more than the amount shown due to overcollateralization. |
(b) | Net amount represents the net amount due from the counterparty in the event of default. |
The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations by risk exposure for the year ended October 31, 2021 was as follows:
| | | | | | | | | | |
Risk | | Derivative | | Realized Gain (Loss)
on Derivatives Recognized
in Income(1) | | | Change in Unrealized
Appreciation (Depreciation) on
Derivatives Recognized in Income(2) | |
| | | |
Equity Price | | Futures contracts | | $ | 314,187 | | | $ | (176,165 | ) |
| | | |
Foreign Exchange | | Forward foreign currency exchange contracts | | | 23,658 | | | | 13,986 | |
| | | |
Total | | | | $ | 337,845 | | | $ | (162,179 | ) |
(1) | Statement of Operations location: Net realized gain (loss) – Financial futures contracts and Forward foreign currency exchange contracts, respectively. |
(2) | Statement of Operations location: Change in unrealized appreciation (depreciation) – Financial futures contracts and Forward foreign currency exchange contracts, respectively. |
The average notional cost of futures contracts and average notional amounts of other derivative contracts outstanding during the year ended October 31, 2021, which are indicative of the volume of these derivative types, were approximately as follows:
| | | | | | | | | | |
Futures Contracts — Long | | | Futures Contracts — Short | | | Forward Foreign Currency Exchange Contracts* | |
| | |
| $3,807,000 | | | | $3,856,000 | | | $ | 427,000 | |
* | The average notional amount for forward foreign currency exchange contracts is based on the absolute value of notional amounts of currency purchased and currency sold. |
6 Line of Credit
The Portfolio participates with other portfolios and funds managed by EVM and its affiliates in an $800 million unsecured line of credit agreement with a group of banks, which is in effect through October 25, 2022. Borrowings are made by the Portfolio solely for temporary purposes related to redemptions and other short-term cash needs. Interest is charged to the Portfolio based on its borrowings at an amount above either the Secured Overnight Financing Rate (SOFR) 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. In connection with the renewal of the agreement in October 2021, an arrangement fee totaling $150,000 was incurred that was allocated to the participating portfolios and funds. 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, 2021.
Global Income Builder Portfolio
October 31, 2021
Notes to Financial Statements — continued
7 Investments in Affiliated Issuers and Funds
The Portfolio invested in issuers that may be deemed to be affiliated with Morgan Stanley. At October 31, 2021, the value of the Portfolio’s investment in affiliated issuers and funds was $2,903,988, which represents 0.9% of the Portfolio’s net assets. Transactions in affiliated issuers and funds by the Portfolio for the year ended October 31, 2021 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Name | | Value, beginning of period | | | Purchases | | | Sales proceeds | | | Net realized gain (loss) | | | Change in unrealized appreciation (depreciation) | | | Value, end of period | | | Dividend income | | | Shares/
Units, end
of period | |
|
Common Stocks | |
| | | | | | | | |
Mitsubishi UFJ Financial Group, Inc.(1) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 60,042 | | | $ | 1,471,139 | | | $ | 53,154 | | | | 268,285 | |
|
Short-Term Investments | |
| | | | | | | | |
Eaton Vance Cash Reserves Fund, LLC | | | 1,027,196 | | | | 78,153,291 | | | | (77,747,668 | ) | | | 30 | | | | — | | | | 1,432,849 | | | | 2,592 | | | | 1,432,849 | |
| | | | | | | |
Totals | | | | | | | | | | $ | 30 | | | $ | 60,042 | | | $ | 2,903,988 | | | $ | 55,746 | | | | | |
(1) | May be deemed to be an affiliated issuer as of March 1, 2021 (see Note 2). |
8 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, 2021, the hierarchy of inputs used in valuing the Portfolio’s investments and open derivative instruments, which are carried at value, were as follows:
| | | | | | | | | | | | | | | | |
Asset Description | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| | | | |
Common Stocks | | | | | | | | | | | | | | | | |
| | | | |
Communication Services | | $ | 16,088,685 | | | $ | 1,230,223 | | | $ | — | | | $ | 17,318,908 | |
| | | | |
Consumer Discretionary | | | 10,679,817 | | | | 11,453,053 | | | | — | | | | 22,132,870 | |
| | | | |
Consumer Staples | | | 5,405,872 | | | | 6,283,457 | | | | — | | | | 11,689,329 | |
| | | | |
Energy | | | 6,024,363 | | | | — | | | | — | | | | 6,024,363 | |
| | | | |
Financials | | | 10,869,076 | | | | 9,491,870 | | | | — | | | | 20,360,946 | |
| | | | |
Health Care | | | 12,845,935 | | | | 19,006,765 | | | | — | | | | 31,852,700 | |
| | | | |
Industrials | | | 9,824,499 | | | | 15,570,681 | | | | — | | | | 25,395,180 | |
| | | | |
Information Technology | | | 28,577,941 | | | | 13,805,937 | | | | — | | | | 42,383,878 | |
| | | | |
Materials | | | — | | | | 4,703,261 | | | | — | | | | 4,703,261 | |
| | | | |
Real Estate | | | 1,588,182 | | | | — | | | | — | | | | 1,588,182 | |
| | | | |
Utilities | | | 2,219,122 | | | | 1,570,142 | | | | — | | | | 3,789,264 | |
| | | | |
Total Common Stocks | | $ | 104,123,492 | | | $ | 83,115,389 | * | | $ | — | | | $ | 187,238,881 | |
Global Income Builder Portfolio
October 31, 2021
Notes to Financial Statements — continued
| | | | | | | | | | | | | | | | |
Asset Description | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
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Convertible Bonds | | $ | — | | | $ | 66,937 | | | $ | — | | | $ | 66,937 | |
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Corporate Bonds | | | — | | | | 103,860,581 | | | | — | | | | 103,860,581 | |
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Exchange-Traded Funds | | | 380,885 | | | | — | | | | — | | | | 380,885 | |
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Preferred Stocks | | | | | | | | | | | | | | | | |
| | | | |
Communication Services | | | 304,951 | | | | — | | | | — | | | | 304,951 | |
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Consumer Staples | | | — | | | | 306,765 | | | | — | | | | 306,765 | |
| | | | |
Energy | | | 553,131 | | | | — | | | | — | | | | 553,131 | |
| | | | |
Financials | | | 1,356,924 | | | | 304,902 | | | | — | | | | 1,661,826 | |
| | | | |
Health Care | | | 171,897 | | | | — | | | | — | | | | 171,897 | |
| | | | |
Industrials | | | 401,543 | | | | — | | | | — | | | | 401,543 | |
| | | | |
Real Estate | | | 496,542 | | | | — | | | | — | | | | 496,542 | |
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Utilities | | | 452,029 | | | | 80,455 | | | | — | | | | 532,484 | |
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Total Preferred Stocks | | $ | 3,737,017 | | | $ | 692,122 | | | $ | — | | | $ | 4,429,139 | |
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Senior Floating-Rate Loans | | $ | — | | | $ | 5,726,502 | | | $ | — | | | $ | 5,726,502 | |
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Miscellaneous | | | — | | | | 12,645 | | | | — | | | | 12,645 | |
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Short-Term Investments | | | — | | | | 1,432,849 | | | | — | | | | 1,432,849 | |
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Total Investments | | $ | 108,241,394 | | | $ | 194,907,025 | | | $ | — | | | $ | 303,148,419 | |
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Forward Foreign Currency Exchange Contracts | | $ | — | | | $ | 1,059 | | | $ | — | | | $ | 1,059 | |
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Total | | $ | 108,241,394 | | | $ | 194,908,084 | | | $ | — | | | $ | 303,149,478 | |
* | 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, 2021 is not presented.
9 Risks and Uncertainties
Risks Associated with Foreign Investments
Foreign investments can be adversely affected by political, economic and market developments abroad, including the imposition of economic and other sanctions by the United States or another country. There may be less publicly available information about foreign issuers because they may not be subject to reporting practices, requirements or regulations comparable to those to which United States companies are subject. Foreign markets may be smaller, less liquid and more volatile than the major markets in the United States. Trading in foreign markets typically involves higher expense than trading in the United States. The Portfolio may have difficulties enforcing its legal or contractual rights in a foreign country. Securities that trade or are denominated in currencies other than the U.S. dollar may be adversely affected by fluctuations in currency exchange rates.
Pandemic Risk
An outbreak of respiratory disease caused by a novel coronavirus was first detected in China in late 2019 and subsequently spread internationally. This coronavirus has resulted in closing borders, enhanced health screenings, changes to healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. Health crises caused by outbreaks, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and economic risks and disrupt normal market conditions and operations. The impact of this outbreak has negatively affected the worldwide economy, the economies of individual countries, individual companies, and the market in general, and may continue to do so in significant and unforeseen ways, as may other epidemics and pandemics that may arise in the future. Any such impact could adversely affect the Portfolio’s performance, or the performance of the securities in which the Portfolio invests.
Eaton Vance
Global Income Builder Portfolio
October 31, 2021
Report of Independent Registered Public Accounting Firm
To the Trustees and Investors of Global Income Builder Portfolio:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Global Income Builder Portfolio (the “Portfolio”), including the portfolio of investments, as of October 31, 2021, 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Portfolio as of October 31, 2021, and 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 each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities and senior loans owned as of October 31, 2021, by correspondence with the custodian, brokers and selling or agent banks; when replies were not received from brokers and selling or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
December 21, 2021
We have served as the auditor of one or more Eaton Vance investment companies since 1959.
Eaton Vance
Global Income Builder NextShares
October 31, 2021
Liquidity Risk Management Program
The Fund has implemented a written liquidity risk management program (Program) and related procedures to manage its liquidity in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (Liquidity Rule). The Liquidity Rule defines “liquidity risk” as the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of the remaining investors’ interests in the fund. The Fund’s Board of Trustees/Directors has designated the investment adviser to serve as the administrator of the Program and the related procedures. The administrator has established a Liquidity Risk Management Oversight Committee (Committee) to perform the functions necessary to administer the Program. As part of the Program, the administrator is responsible for identifying illiquid investments and categorizing the relative liquidity of the Fund’s investments in accordance with the Liquidity Rule. Under the Program, the administrator assesses, manages, and periodically reviews the Fund’s liquidity risk, and is responsible for making certain reports to the Fund’s Board of Trustees/Directors and the Securities and Exchange Commission (SEC) regarding the liquidity of the Fund’s investments, and to notify the Board of Trustees/Directors and the SEC of certain liquidity events specified in the Liquidity Rule. The liquidity of the Fund’s portfolio investments is determined based on a number of factors including, but not limited to, relevant market, trading and investment-specific considerations under the Program.
At a meeting of the Fund’s Board of Trustees/Directors on June 8, 2021, the Committee provided a written report to the Fund’s Board of Trustees/Directors pertaining to the operation, adequacy, and effectiveness of implementation of the Program, as well as the operation of the highly liquid investment minimum (if applicable) for the period January 1, 2020 through December 31, 2020 (Review Period). The Program operated effectively during the Review Period, supporting the administrator’s ability to assess, manage and monitor Fund liquidity risk, including during periods of market volatility and net redemptions. During the Review Period, the Fund met redemption requests on a timely basis.
There can be no assurance that the Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.
Eaton Vance
Global Income Builder NextShares
October 31, 2021
Management and Organization
Fund Management. The Trustees of Eaton Vance NextShares Trust (the Trust) and Global Income Builder 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 EV LLC, “EVM” refers to Eaton Vance Management, “BMR” refers to Boston Management and Research and “EVD” refers to Eaton Vance Distributors, Inc. EV is the trustee of each of EVM and BMR. Effective March 1, 2021, each of EVM, BMR, EVD and EV are indirect, wholly owned subsidiaries of Morgan Stanley. Each officer affiliated with EVM may hold a position with other EVM affiliates that is comparable to his or her position with EVM listed below. Each Trustee oversees 138 portfolios (with the exception of Messrs. Faust and Wennerholm and Ms. Frost who oversee 137 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.
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Name and Year of Birth | | Trust/Portfolio Position(s) | | Trustee Since(1) | | Principal Occupation(s) and Other Directorships During Past Five Years and Other Relevant Experience |
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Interested Trustee |
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Thomas E. Faust Jr. 1958 | | Trustee | | 2007 | | Chairman of Morgan Stanley Investment Management, Inc. (MSIM), member of the Board of Managers and President of EV, Chief Executive Officer of EVM and BMR, and Director of EVD. Formerly, Chairman, Chief Executive Officer and President of EVC. Trustee and/or officer of 137 registered investment companies. Mr. Faust is an interested person because of his positions with MSIM, BMR, EVM, EVD, and EV, which are affiliates of the Trust and Portfolio, and his former position with EVC, which was an affiliate of the Trust and Portfolio prior to March 1, 2021. Other Directorships in the Last Five Years. Formerly, Director of EVC (2007-2021) and Hexavest Inc. (investment management firm) (2012-2021). |
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Noninterested Trustees |
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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). Other Directorships in the Last Five Years. None. |
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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). Other Directorships in the Last Five Years. None. |
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George J. Gorman 1952 | | Chairperson of the Board and Trustee | | 2021 (Chairperson) and 2014 (Trustee) | | Principal at George J. Gorman LLC (consulting firm). Formerly, Senior Partner at Ernst & Young LLP (a registered public accounting firm) (1974-2009). Other Directorships in the Last Five Years. None. |
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Valerie A. Mosley 1960 | | Trustee | | 2014 | | Chairwoman and Chief Executive Officer of Valmo Ventures (a consulting and investment firm). Founder of Upward Wealth, Inc., dba BrightUP, a fintech platform. Formerly, Partner and Senior Vice President, Portfolio Manager and Investment Strategist at Wellington Management Company, LLP (investment management firm) (1992-2012). Formerly, Chief Investment Officer, PG Corbin Asset Management (1990-1992). Formerly worked in institutional corporate bond sales at Kidder Peabody (1986-1990). Other Directorships in the Last Five Years. Director of DraftKings, Inc. (digital sports entertainment and gaming company) (since September 2020). Director of Groupon, Inc. (e-commerce provider) (since April 2020). Director of Envestnet, Inc. (provider of intelligent systems for wealth management and financial wellness) (since 2018). Formerly, Director of Dynex Capital, Inc. (mortgage REIT) (2013-2020). |
Eaton Vance
Global Income Builder NextShares
October 31, 2021
Management and Organization — continued
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Name and Year of Birth | | Trust/Portfolio Position(s) | | Trustee Since(1) | | Principal Occupation(s) and Other Directorships During Past Five Years and Other Relevant Experience |
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Noninterested Trustees (continued) |
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William H. Park 1947 | | Trustee | | 2003 | | 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). Other Directorships in the Last Five Years. None. |
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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). Other Directorships in the Last Five Years. None. |
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Keith Quinton 1958 | | Trustee | | 2018 | | Private investor, researcher and lecturer. Formerly, Independent Investment Committee Member at New Hampshire Retirement System (2017-2021). Formerly, Portfolio Manager and Senior Quantitative Analyst at Fidelity Investments (investment management firm) (2001-2014). Other Directorships in the Last Five Years. Formerly, Director (2016-2021) and Chairman (2019-2021) of New Hampshire Municipal Bond Bank. |
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Marcus L. Smith 1966 | | Trustee | | 2018 | | Private investor. Formerly, Portfolio Manager at MFS Investment Management (investment management firm) (1994-2017). Other Directorships in the Last Five Years. Director of First Industrial Realty Trust, Inc. (an industrial REIT) (since 2021). Director of MSCI Inc. (global provider of investment decision support tools) (since 2017). Formerly, Director of DCT Industrial Trust Inc. (logistics real estate company) (2017-2018). |
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Susan J. Sutherland 1957 | | Trustee | | 2015 | | Private investor. Director of Ascot Group Limited and certain of its subsidiaries (insurance and reinsurance) (since 2017). Formerly, Director of Hagerty Holding Corp. (insurance) (2015-2018) and Montpelier Re Holdings Ltd. (insurance and reinsurance) (2013-2015). Formerly, Associate, Counsel and Partner at Skadden, Arps, Slate, Meagher & Flom LLP (law firm) (1982-2013). Other Directorships in the Last Five Years. Director of Kairos Acquisition Corp. (insurance/InsurTech acquisition company) (since 2021). |
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Scott E. Wennerholm 1959 | | Trustee | | 2016 | | Private investor. Formerly, Trustee at Wheelock College (postsecondary institution) (2012-2018). 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). Other Directorships in the Last Five Years. None. |
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Name and Year of Birth | | Trust/Portfolio Position(s) | | Officer Since(2) | | Principal Occupation(s) During Past Five Years |
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Principal Officers who are not Trustees |
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Edward J. Perkin 1972 | | President | | 2014 | | Vice President and Chief Equity Investment Officer of EVM and BMR. Also Vice President of Calvert Research and Management (“CRM”) since 2016. |
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Deidre E. Walsh 1971 | | Vice President and Chief Legal Officer | | 2009 | | Vice President of EVM and BMR. Also Vice President of CRM. |
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James F. Kirchner 1967 | | Treasurer | | 2007 | | Vice President of EVM and BMR. Also Vice President of CRM. |
Eaton Vance
Global Income Builder NextShares
October 31, 2021
Management and Organization — continued
| | | | | | |
Name and Year of Birth | | Trust/Portfolio Position(s) | | Officer Since(2) | | Principal Occupation(s) During Past Five Years |
|
Principal Officers who are not Trustees (continued) |
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Kimberly M. Roessiger 1985 | | Secretary | | 2021 | | Vice President of EVM and BMR. |
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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) | 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 1-800-262-1122.
Eaton Vance Funds
| | |
Privacy Notice | | April 2021 |
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FACTS | | WHAT DOES EATON VANCE DO WITH YOUR PERSONAL INFORMATION? |
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Why? | | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
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What? | | The types of personal information we collect and share depend on the product or service you have with us. This information can include: ∎ Social Security number and income ∎ investment experience and risk tolerance ∎ checking account number and wire transfer instructions |
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How? | | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Eaton Vance chooses to share; and whether you can limit this sharing. |
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Reasons we can share your personal information | | Does Eaton Vance share? | | Can you limit this sharing? |
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | | Yes | | No |
For our marketing purposes — to offer our products and services to you | | Yes | | No |
For joint marketing with other financial companies | | No | | We don’t share |
For our investment management affiliates’ everyday business purposes — information about your transactions, experiences, and creditworthiness | | Yes | | Yes |
For our affiliates’ everyday business purposes — information about your transactions and experiences | | Yes | | No |
For our affiliates’ everyday business purposes — information about your creditworthiness | | No | | We don’t share |
For our investment management affiliates to market to you | | Yes | | Yes |
For our affiliates to market to you | | No | | We don’t share |
For nonaffiliates to market to you | | No | | We don’t share |
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To limit our sharing | | Call toll-free 1-800-262-1122 or email: EVPrivacy@eatonvance.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing. |
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Questions? | | Call toll-free 1-800-262-1122 or email: EVPrivacy@eatonvance.com |
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Eaton Vance Funds
| | |
Privacy Notice — continued | | April 2021 |
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Who we are |
Who is providing this notice? | | Eaton Vance Management, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management (International) Limited, Eaton Vance Advisers International Ltd., Eaton Vance Global Advisors Limited, Eaton Vance Management’s Real Estate Investment Group, Boston Management and Research, Calvert Research and Management, Eaton Vance and Calvert Fund Families and our investment advisory affiliates (“Eaton Vance”) (see Investment Management Affiliates definition below) |
What we do |
How does Eaton Vance protect my personal information? | | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information. |
How does Eaton Vance collect my personal information? | | We collect your personal information, for example, when you ∎ open an account or make deposits or withdrawals from your account ∎ buy securities from us or make a wire transfer ∎ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies. |
Why can’t I limit all sharing? | | Federal law gives you the right to limit only ∎ sharing for affiliates’ everyday business purposes — information about your creditworthiness ∎ affiliates from using your information to market to you ∎ sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |
Definitions |
Investment Management Affiliates | | Eaton Vance Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
Affiliates | | Companies related by common ownership or control. They can be financial and nonfinancial companies. ∎ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
Nonaffiliates | | Companies not related by common ownership or control. They can be financial and nonfinancial companies. ∎ Eaton Vance does not share with nonaffiliates so they can market to you. |
Joint marketing | | A formal agreement between nonaffiliated financial companies that together market financial products or services to you. ∎ Eaton Vance doesn’t jointly market. |
Other important information |
Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Nonaffiliates unless you provide us with your written consent to share such information. California: Except as permitted by law, we will not share personal information we collect about California residents with Nonaffiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us. |
Eaton Vance Funds
IMPORTANT NOTICES
Delivery of Shareholder Documents. The Securities and Exchange Commission (SEC) permits delivery of only one copy of fund 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. Your broker may household the mailing of your documents indefinitely unless you instruct your broker otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact your broker. Your instructions that householding not apply to delivery of your Eaton Vance documents will typically be effective within 30 days of receipt by your broker.
Portfolio Holdings. Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) files a schedule of portfolio holdings on Part F to Form N-PORT with the SEC. Certain information filed on Form N-PORT may be viewed 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.
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.
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Investment Adviser of Global Income Builder Portfolio
Boston Management and Research
Two International Place
Boston, MA 02110
Investment Sub-Adviser of Eaton Vance Global Income Builder NextShares and Global Income Builder Portfolio
Eaton Vance Advisers International Ltd.
125 Old Broad Street
London, EC2N 1AR
United Kingdom
Investment Adviser and Administrator of Eaton Vance Global Income Builder NextShares
Eaton Vance Management
Two International Place
Boston, MA 02110
Distributor*
Foreside Fund Services, LLC
Three Canal Plaza, Suite 100
Portland, ME 04101
Custodian
State Street Bank and Trust Company
State Street Financial Center, One Lincoln Street
Boston, MA 02111
Transfer and Dividend Disbursing Agent
State Street Bank and Trust Company
State Street Financial Center, One Lincoln Street
Boston, MA 02111
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. |
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23214 10.31.21
The registrant (sometimes referred to as the “Fund”) 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 not amended the code of ethics as described in Form N-CSR during the period covered by this report. 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 of Trustees (the “Board”) has designated George J. Gorman, William H. Park and Scott E. Wennerholm, each an independent trustee, as audit committee financial experts. Mr. Gorman is a certified public accountant who is the Principal at George J. Gorman LLC (a consulting firm). Previously, Mr. Gorman served in various capacities at Ernst & Young LLP (a registered public accounting firm), including as Senior
Partner. Mr. Gorman also has experience serving as an independent trustee and audit committee financial expert of other mutual fund complexes. 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) (a registered public accounting firm). Mr. Wennerholm is a private investor. Previously, Mr. Wennerholm served as a Trustee at Wheelock College (postsecondary institution), as a Consultant at GF Parish Group (executive recruiting firm), Chief Operating Officer and Executive Vice President at BNY Mellon Asset Management (investment management firm), Chief Operating Officer and Chief Financial Officer at Natixis Global Asset Management (investment management firm), and Vice President at Fidelity Investments Institutional Services (investment management firm).
Item 4. | Principal Accountant Fees and Services |
Eaton Vance Global Income Builder NextShares (the “Fund”) is a series of Eaton Vance NextShares Trust (the “Trust”), a Massachusetts business trust, which, including the Fund, contains a total of 2 series (the “Series”). The Trust is registered under the Investment Company Act of 1940 as an open-end management investment company. This Form N-CSR relates to the Fund’s annual report.
(a)-(d)
The following table presents the aggregate fees billed to the Fund for the Fund’s fiscal years ended October 31, 2020 and October 31, 2021 by the registrant’s principal accountant, Deloitte & Touche LLP (“D&T”), for professional services rendered for the audit of the Fund’s annual financial statements and fees billed for other services rendered by D&T during such periods.
Eaton Vance Global Income Builder NextShares
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Fiscal Years Ended | | 10/31/20 | | | 10/31/21 | |
Audit Fees | | $ | 14,150 | | | $ | 14,150 | |
Audit-Related Fees(1) | | $ | 0 | | | $ | 0 | |
Tax Fees(2) | | $ | 7,192 | | | $ | 7,542 | |
All Other Fees(3) | | $ | 0 | | | $ | 0 | |
| | | | | | | | |
Total | | $ | 21,342 | | | $ | 21,692 | |
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(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. |
The various Series comprising the Trust have differing fiscal year ends (October 31 and December 31). The following table presents the aggregate audit, audit-related, tax, and other fees billed to all of the Series in the Trust by D&T for the last two fiscal periods of each Series.
| | | | | | | | | | | | | | | | |
Fiscal Years Ended | | 12/31/19 | | | 10/31/20 | | | 12/31/20 | | | 10/31/21 | |
Audit Fees | | $ | 12,150 | | | $ | 14,150 | | | $ | 12,150 | | | $ | 14,150 | |
Audit-Related Fees(1) | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
Tax Fees(2) | | $ | 9,266 | | | $ | 7,192 | | | $ | 6,656 | | | $ | 7,542 | |
All Other Fees(3) | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 21,416 | | | $ | 21,342 | | | $ | 18,806 | | | $ | 21,692 | |
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(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 Fund (the only series of the Trust) by D&T for the last two fiscal years of the Fund; 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 last two fiscal years of each Series.
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Fiscal Years Ended | | 12/31/19 | | | 10/31/20 | | | 12/31/20 | | | 10/31/21 | |
Registrant(1) | | $ | 9,266 | | | $ | 7,192 | | | $ | 6,656 | | | $ | 7,542 | |
Eaton Vance(2) | | $ | 59,903 | | | $ | 51,800 | | | $ | 150,300 | | | $ | 51,800 | |
(1) | Includes all of the Series of the Trust. During the fiscal years reported above, certain of the Funds were “feeder” funds in a “master-feeder” fund structure or funds of funds. |
(2) | Various subsidiaries of Morgan Stanley act in either an investment advisory and/or service provider capacity with respect to the Series and/or their respective “master” funds (if applicable). |
(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 period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies |
Not applicable.
Item 13. Exhibits
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.
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Eaton Vance NextShares Trust |
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By: | | /s/ Edward J. Perkin |
| | Edward J. Perkin |
| | President |
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.
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By: | | /s/ James F. Kirchner |
| | James F. Kirchner |
| | Treasurer |
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By: | | /s/ Edward J. Perkin |
| | Edward J. Perkin |
| | President |