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: 811-21470
Eaton Vance Tax-Advantaged Global Dividend Income Fund
------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(Registrant's Telephone Number)
December 31
-----------
Date of Fiscal Year End
June 30, 2004
-------------
Date of Reporting Period
ITEM 1. REPORTS TO STOCKHOLDERS
[EATON VANCE(R) MANAGED INVESTMENTS LOGO]
[GRAPHIC]
SEMIANNUAL REPORT JUNE 30, 2004
[GRAPHIC]
EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND INCOME FUND
[GRAPHIC]
EATON VANCE FUNDS
EATON VANCE MANAGEMENT
BOSTON MANAGEMENT AND RESEARCH
EATON VANCE DISTRIBUTORS, INC.
PRIVACY NOTICE
The Eaton Vance organization is committed to ensuring your financial privacy.
This notice is being sent to comply with privacy regulations of the Securities
and Exchange Commission. Each of the above financial institutions has in effect
the following policy with respect to nonpublic personal information about its
customers:
- Only such information received from you, through application forms or
otherwise, and information about your Eaton Vance fund transactions will be
collected.
- None of such information about you (or former customers) will be disclosed to
anyone, except as permitted by law (which includes disclosure to employees
necessary to service your account).
- Policies and procedures (including physical, electronic and procedural
safeguards) are in place that are designed to protect the confidentiality of
such information.
For more information about Eaton Vance's privacy policies, call:
1-800-262-1122.
IMPORTANT NOTICE
REGARDING DELIVERY OF
SHAREHOLDER DOCUMENTS
The Securities and Exchange Commission permits funds to deliver only one copy of
shareholder documents, including prospectuses, proxy statements and shareholder
reports, to fund investors with multiple accounts at the same residential or
post office box address. This practice is often called "householding" and it
helps eliminate duplicate mailings to shareholders.
EATON VANCE, OR YOUR FINANCIAL ADVISER, MAY HOUSEHOLD THE MAILING OF YOUR
DOCUMENTS INDEFINITELY UNLESS YOU INSTRUCT EATON VANCE, OR YOUR FINANCIAL
ADVISER, OTHERWISE.
If you would prefer that your Eaton Vance documents not be householded, please
contact Eaton Vance at 1-800-262-1122, or contact your financial adviser.
Your instructions that householding not apply to delivery of your Eaton Vance
documents will be effective within 30 days of receipt by Eaton Vance or your
financial adviser.
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 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 without charge, upon request, by calling 1-800-262-1122. This
description is also available on the Securities and Exchange Commission's
website at http://www.sec.gov.
EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND INCOME FUND as of June 30, 2004
INVESTMENT UPDATE
[PHOTO OF MICHAEL R. MACH, CFA]
Michael R. Mach, CFA
Co-Portfolio Manager
[PHOTO OF JUDITH A. SARYAN, CFA]
Judith A. Saryan, CFA
Co-Portfolio Manager
[PHOTO OF THOMAS H. LUSTER, CFA]
Thomas H. Luster, CFA
Co-Portfolio Manager
MANAGEMENT DISCUSSION
- We are pleased to welcome shareholders of Eaton Vance Tax-Advantaged Global
Dividend Income Fund (the "Fund"). The Fund's investment objective is to
provide a high level of after-tax total return, consisting primarily of
tax-advantaged dividend income and capital appreciation. The Fund pursues its
objective by investing its assets primarily in dividend-paying common and
preferred stocks of U.S. and foreign issuers.
- Legislation passed in May 2003 provides that qualified dividend income
received by individual shareholders will generally be taxed at the same rates
as long-term capital gains (maximum 15%) rather than as ordinary income.
Qualifying dividend income generally includes dividends from domestic
corporations and dividends from foreign corporations that meet specified
criteria. Certain other criteria also apply in order to receive favorable tax
treatment.
- Over the Fund's first five months of existence, its share price on the
New York Stock Exchange trended lower. In April, economic reports indicating
surprisingly strong retail sales and jobs growth triggered investor concerns
about future interest rate increases. These concerns precipitated a
correction in the share price of equities generally perceived to be interest
rate sensitive. In part, the drop in the Fund's share price is a reflection
of these developments, as a number of its preferred and common holdings came
under selling pressure with rising rate concerns. The drop in the Fund's
share price can also be partly attributed to its shares trading at a discount
to their underlying NAV as of June 30, 2004.
- During the period, the Fund was invested in a broadly diversified basket of
dividend-paying common stocks, including utility, energy, consumer,
financial, and industrial stocks. Within these sectors, the Fund benefited
from relatively strong stock selection. Consumer stocks held by the Fund
generally benefited from tax rebates, strong job creation, continued mortgage
refinancing activity, and improving consumer sentiment. Growing energy demand
and global unrest have kept oil and gas prices high and generally benefited
the energy stocks held by the Fund.
- The Fund was globally diversified throughout the period, with non-U.S.
investments generally focused in companies which, in the Portfolio Managers'
opinion, offer strong business franchises, good cash flow generation and
solid dividend prospects.
- During the period, the Fund's investments in preferred stocks did relatively
well, based on the Fund's ownership of higher-yielding preferred issues, many
of which generated qualifying dividend income.
- We believe that the Fund's current holdings are well-positioned to provide an
attractive level of dividend income, while allowing shareholders to
participate in equity markets.
THE FUND
- Based on share price (traded on the New York Stock Exchange) the Fund's
shares had a total return of -10.01% during the period from inception on
January 30, 2004, through June 30, 2004.(1) Based on the Fund's dividend of
$0.41 per share and a closing share price of $16.80 on June 30, 2004, the
Fund had a market yield of 7.32%.(2)
- Based on net asset value (NAV) per share of $18.76 on June 30, 2004, the Fund
had a total return of 0.49% during the period from inception on January 30,
2004, through June 30, 2004.(1)
THE VIEWS EXPRESSED IN THIS REPORT ARE THOSE OF THE PORTFOLIO MANAGERS AND
ARE CURRENT ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE
COVER. THESE VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR
OTHER CONDITIONS, AND EATON VANCE DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH
VIEWS. THESE VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR AN EATON VANCE FUND ARE BASED ON MANY FACTORS, MAY
NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON BEHALF OF ANY EATON
VANCE FUND.
FUND INFORMATION
as of June 30, 2004
PERFORMANCE(1)
Cumulative Total Returns (by share price, New York Stock Exchange)
Life of Fund (1/30/04) -10.01%
Cumulative Total Returns (at net asset value)
Life of Fund (1/30/04) 0.49%
(1) SHARE PRICE AND NET ASSET VALUE ON 1/30/04 ARE CALCULATED ASSUMING A
PURCHASE PRICE OF $20.00 LESS THE SALES LOAD OF $0.90 PER SHARE PAID BY THE
SHAREHOLDER. PERFORMANCE RESULTS REFLECT THE EFFECT OF LEVERAGE RESULTING FROM
THE FUND'S ISSUANCE OF AUCTION PREFERRED SHARES. (2) THE FUND'S YIELD IS
CALCULATED BY DIVIDING THE MOST RECENT DIVIDEND PER SHARE BY THE SHARE PRICE AT
THE END OF THE PERIOD AND ANNUALIZING THE RESULT.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. RETURNS ARE HISTORIC AND ARE
CALCULATED BY DETERMINING THE PERCENTAGE CHANGE IN SHARE PRICE OR NET ASSET
VALUE WITH ALL DISTRIBUTIONS REINVESTED. INVESTMENT RETURN AND MARKET PRICE 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, CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN QUOTED.
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.
2
EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND INCOME FUND as of June 30, 2004
PORTFOLIO OF INVESTMENTS (Unaudited)
COMMON STOCKS -- 115.2%
SECURITY SHARES VALUE
--------------------------------------------------------------------------------------------------
APPAREL -- 0.7%
Benetton Group SPA(1) 500,000 $ 5,718,255
VF Corp. 100,000 4,870,000
--------------------------------------------------------------------------------------------------
$ 10,588,255
--------------------------------------------------------------------------------------------------
BEVERAGES -- 0.9%
Diageo PLC(1) 900,000 $ 12,135,035
--------------------------------------------------------------------------------------------------
$ 12,135,035
--------------------------------------------------------------------------------------------------
BROADCASTING AND CABLE -- 0.2%
Capital Radio PLC(1) 300,000 $ 2,393,820
--------------------------------------------------------------------------------------------------
$ 2,393,820
--------------------------------------------------------------------------------------------------
BROADCASTING AND PUBLISHING -- 0.5%
Arnoldo Mondadori Editore SPA(1) 250,000 $ 2,366,384
Gruppo Editoriale L'Espresso SPA(1) 750,000 4,516,813
--------------------------------------------------------------------------------------------------
$ 6,883,197
--------------------------------------------------------------------------------------------------
BUILDING MATERIALS -- 1.6%
Hanson PLC(1) 1,500,000 $ 10,316,548
Snap-On, Inc. 150,000 5,032,500
Stanley Works 175,000 7,976,500
--------------------------------------------------------------------------------------------------
$ 23,325,548
--------------------------------------------------------------------------------------------------
CHEMICALS -- 4.9%
Akzo Nobel NV(1) 275,000 $ 10,114,316
Dow Chemical Co. (The) 700,000 28,490,000
DSM NV(1) 150,000 7,360,124
Eastman Chemical Co. 300,000 13,869,000
L'Air Liquide SA(1) 33,000 5,456,310
Lyondell Chemical Co. 250,000 4,347,500
--------------------------------------------------------------------------------------------------
$ 69,637,250
--------------------------------------------------------------------------------------------------
COAL -- 0.1%
Peabody Energy Corp. 15,000 $ 839,850
--------------------------------------------------------------------------------------------------
$ 839,850
--------------------------------------------------------------------------------------------------
COMMERCIAL BANKS -- 14.8%
ABN AMRO Holdings NV(1) 800,000 $ 17,500,294
Bank of America Corp. 400,000 33,848,000
Canadian Imperial Bank of Commerce(1) 350,000 $ 17,074,425
Dexia(1) 700,000 11,616,574
HSBC Holdings PLC(1) 77,000 1,145,044
Huntington Bancshares, Inc. 200,000 4,580,000
National Australia Bank Ltd.(1) 300,000 6,235,963
National City Corp. 350,000 12,253,500
Royal Bank of Scotland Group PLC(1) 500,000 14,399,190
Societe Generale(1) 150,000 12,747,450
TCF Financial Corp. 125,000 7,256,250
UniCredito Italiano SPA(1) 2,500,000 12,348,997
UnionBanCal Corp. 100,000 5,640,000
Wachovia Corp. 500,000 22,250,000
Washington Mutual, Inc. 400,000 15,456,000
Wells Fargo & Co. 300,000 17,169,000
--------------------------------------------------------------------------------------------------
$ 211,520,687
--------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES -- 0.4%
KeyCorp 175,000 $ 5,230,750
--------------------------------------------------------------------------------------------------
$ 5,230,750
--------------------------------------------------------------------------------------------------
COMPUTERS AND BUSINESS EQUIPMENT -- 0.6%
Pitney Bowes, Inc. 200,000 $ 8,850,000
--------------------------------------------------------------------------------------------------
$ 8,850,000
--------------------------------------------------------------------------------------------------
CONTAINERS AND PACKAGING -- 0.3%
Bemis Co., Inc. 150,000 $ 4,237,500
--------------------------------------------------------------------------------------------------
$ 4,237,500
--------------------------------------------------------------------------------------------------
DISTRIBUTORS -- 0.8%
Genuine Parts Co. 275,000 $ 10,912,000
--------------------------------------------------------------------------------------------------
$ 10,912,000
--------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES -- 15.5%
Alltel Corp. 100,000 $ 5,062,000
BCE, Inc.(1) 1,000,000 20,040,000
BellSouth Corp. 1,000,000 26,220,000
Portugal Telecom, SGPS, SA(1) 1,500,000 16,187,528
SBC Communications, Inc. 750,000 18,187,500
Telecom Italia Mobile SPA(1) 8,500,000 48,191,506
Telecom Italia SPA(1) 18,000,000 39,747,955
Telstra Corp. Ltd.(1) 1,500,000 5,255,847
See notes to financial statements
3
SECURITY SHARES VALUE
--------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (CONTINUED)
Verizon Communications, Inc. 1,200,000 $ 43,428,000
--------------------------------------------------------------------------------------------------
$ 222,320,336
--------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT -- 0.7%
Emerson Electric Co. 168,200 $ 10,689,110
--------------------------------------------------------------------------------------------------
$ 10,689,110
--------------------------------------------------------------------------------------------------
ELECTRICAL/ELECTRONIC MANUFACTURER -- 1.1%
Cooper Industries Ltd., Class A(1) 200,000 $ 11,882,000
Hubbell, Inc. 80,000 3,736,800
--------------------------------------------------------------------------------------------------
$ 15,618,800
--------------------------------------------------------------------------------------------------
ENGINEERING AND CONSTRUCTION -- 0.2%
Bouygues SA(1) 100,000 $ 3,348,221
--------------------------------------------------------------------------------------------------
$ 3,348,221
--------------------------------------------------------------------------------------------------
ENTERTAINMENT -- 0.3%
EMI Group PLC(1) 1,000,000 $ 4,420,406
--------------------------------------------------------------------------------------------------
$ 4,420,406
--------------------------------------------------------------------------------------------------
FINANCIAL SERVICES -- 1.1%
Citigroup, Inc. 350,000 $ 16,275,000
--------------------------------------------------------------------------------------------------
$ 16,275,000
--------------------------------------------------------------------------------------------------
FOOD PRODUCTS -- 2.6%
ConAgra Foods, Inc. 250,000 $ 6,770,000
Nestle SA(1) 70,000 18,668,157
Sara Lee Corp. 500,000 11,495,000
--------------------------------------------------------------------------------------------------
$ 36,933,157
--------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS -- 2.0%
Kimberly-Clark Corp. 150,000 $ 9,882,000
Newell Rubbermaid, Inc. 400,000 9,400,000
PPG Industries, Inc. 150,000 9,373,500
--------------------------------------------------------------------------------------------------
$ 28,655,500
--------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES -- 1.6%
ALLETE, Inc. 300,000 $ 9,990,000
General Electric Co. 400,000 12,960,000
--------------------------------------------------------------------------------------------------
$ 22,950,000
--------------------------------------------------------------------------------------------------
INSURANCE -- 2.0%
ING Groep NV ADR(1) 750,000 $ 17,702,258
XL Capital Ltd.(1) 150,000 11,319,000
--------------------------------------------------------------------------------------------------
$ 29,021,258
--------------------------------------------------------------------------------------------------
MACHINERY -- 0.5%
Sandvik AB(1) 225,000 $ 7,676,276
--------------------------------------------------------------------------------------------------
$ 7,676,276
METALS - INDUSTRIAL -- 0.7%
Arcelor(1) 600,000 $ 10,073,862
--------------------------------------------------------------------------------------------------
$ 10,073,862
--------------------------------------------------------------------------------------------------
OIL AND GAS -- 12.0%
BP PLC ADR(1) 500,000 $ 26,785,000
Centrica PLC(1) 4,999,990 20,356,497
ChevronTexaco Corp. 275,000 25,880,250
Eni SPA(1) 800,000 15,884,582
Marathon Oil Corp. 550,000 20,812,000
Statoil ASA(1) 1,387,200 17,611,426
Total Fina Elf SA(1) 200,000 38,129,811
Unocal Corp. 150,000 5,700,000
--------------------------------------------------------------------------------------------------
$ 171,159,566
--------------------------------------------------------------------------------------------------
PAPER AND FOREST PRODUCTS -- 0.7%
MeadWestvaco Corp. 350,000 $ 10,286,500
--------------------------------------------------------------------------------------------------
$ 10,286,500
--------------------------------------------------------------------------------------------------
PHARMACEUTICALS -- 2.0%
GlaxoSmithKline PLC(1) 500,000 $ 10,119,330
Merck & Co., Inc. 150,000 7,125,000
Wyeth Corp. 300,000 10,848,000
--------------------------------------------------------------------------------------------------
$ 28,092,330
--------------------------------------------------------------------------------------------------
PRINTING AND BUSINESS PRODUCTS -- 1.7%
Deluxe Corp. 250,000 $ 10,875,000
Donnelley (R.R.) & Sons Co. 400,000 13,208,000
--------------------------------------------------------------------------------------------------
$ 24,083,000
--------------------------------------------------------------------------------------------------
See notes to financial statements
4
SECURITY SHARES VALUE
--------------------------------------------------------------------------------------------------
REITS -- 11.0%
AMB Property Corp. 150,000 $ 5,194,500
AvalonBay Communities, Inc. 250,000 14,130,000
Boston Properties, Inc. 200,000 10,016,000
Chelsea Property Group, Inc. 150,000 9,783,000
Developers Diversified Realty Corp. 375,000 13,263,750
Kimco Realty Corp. 50,000 2,275,000
Liberty Property Trust, Inc. 250,000 10,052,500
New Plan Excel Realty Trust 100,000 2,336,000
Pan Pacific Retail Properties, Inc. 150,000 7,578,000
Public Storage, Inc. 300,000 13,803,000
Rayonier, Inc. 200,000 8,890,000
Rouse Co. (The) 150,000 7,125,000
Simon Property Group, Inc. 400,000 20,568,000
SL Green Realty Corp. 200,000 9,360,000
Sun Communities, Inc. 223,600 8,418,540
Washington REIT 275,000 8,079,500
Weingarten Realty Investors 200,000 6,256,000
--------------------------------------------------------------------------------------------------
$ 157,128,790
--------------------------------------------------------------------------------------------------
RETAIL - SPECIALTY AND APPAREL -- 0.5%
Limited, Inc. (The) 400,000 $ 7,480,000
--------------------------------------------------------------------------------------------------
$ 7,480,000
--------------------------------------------------------------------------------------------------
TOBACCO -- 0.9%
British American Tobacco PLC(1) 850,000 $ 13,171,904
--------------------------------------------------------------------------------------------------
$ 13,171,904
--------------------------------------------------------------------------------------------------
UTILITIES - ELECTRICAL AND GAS -- 28.8%
Ameren Corp. 268,000 $ 11,513,280
Dominion Resources, Inc. 450,000 28,386,000
DTE Energy Co. 645,800 26,180,732
E ON AG(1) 500,000 36,073,673
Edison International 450,000 11,506,500
Electrabel(1) 25,000 8,014,682
Enel SPA(1) 3,700,000 29,665,577
Entergy Corp. 380,000 21,283,800
Exelon Corp. 660,000 21,971,400
FirstEnergy Corp. 700,000 26,187,000
FPL Group, Inc. 350,000 22,382,500
National Grid Transco PLC(1) 5,000,000 38,582,213
NiSource, Inc. 750,000 $ 15,465,000
Public Service Enterprise Group, Inc. 487,290 19,506,219
RWE AG(1) 650,000 30,565,290
Scottish and Southern Energy PLC(1) 1,500,000 18,538,504
Scottish Power PLC(1) 2,200,000 15,908,929
Snam Rete Gas SPA(1) 7,000,000 30,063,422
--------------------------------------------------------------------------------------------------
$ 411,794,721
--------------------------------------------------------------------------------------------------
WATER UTILITIES -- 3.5%
United Utilities PLC(1) 2,300,000 $ 21,626,894
Veolia Environment(1) 1,000,000 28,214,113
--------------------------------------------------------------------------------------------------
$ 49,841,007
--------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $1,623,470,548) $ 1,647,573,636
--------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 29.6%
SECURITY SHARES VALUE
--------------------------------------------------------------------------------------------------
COMMERCIAL BANKS 17.3%
Abbey National Capital Trust I, 8.963%(1)(2) 170,000 $ 21,261,288
Abbey National PLC, 7.375%(1) 395,000 10,127,800
ABN AMRO Capital Funding Trust VII, 6.08% 505,000 11,251,400
Banco Santander, 6.41%(1)(3) 908,600 21,989,029
Barclays Bank PLC, 6.86%(1)(2) 50,000 5,198,580
Barclays Bank PLC, 8.55%(1) 218,600 26,035,610
BNP Paribas Capital Trust, 9.003%(2) 150,000 18,275,370
CA Preferred Fund Trust II, 7.00% 50,000 5,108,395
CA Preferred Fund Trust, 7.00% 250,000 25,499,675
HSBC Capital Funding LP, 9.547%(1)(2) 210,000 25,691,904
Lloyds TSB Bank PLC, 6.90%(1) 220,000 22,295,592
Nordbanken AB, 8.95%(1)(2)(3) 15,700 1,881,953
Royal Bank of Scotland Group PLC, 7.648%(1)(2) 100,000 11,451,910
Royal Bank of Scotland Group PLC, 9.118%(1) 135,000 16,599,343
UBS Preferred Funding Trust I, 8.622%(2) 150,000 18,148,470
UBS Preferred Funding Trust III, 7.25% 253,500 6,454,110
--------------------------------------------------------------------------------------------------
$ 247,270,429
--------------------------------------------------------------------------------------------------
See notes to financial statements
5
SECURITY SHARES VALUE
--------------------------------------------------------------------------------------------------
FINANCIAL SERVICES -- 3.6%
BBVA Preferred Capital Ltd., 7.75%(1) 372,500 $ 9,629,125
Lehman Brothers Holdings, Inc., 6.50% 801,800 20,461,936
Prudential PLC, 6.50%(1) 230,000 21,493,109
--------------------------------------------------------------------------------------------------
$ 51,584,170
--------------------------------------------------------------------------------------------------
FOOD PRODUCTS -- 1.6%
Dairy Farmers of America, 7.875%(3) 222,480 $ 23,207,445
--------------------------------------------------------------------------------------------------
$ 23,207,445
--------------------------------------------------------------------------------------------------
INSURANCE -- 6.0%
Ace Ltd., 7.80%(1) 280,700 $ 7,410,480
AXA, 7.10%(1) 225,000 22,896,405
ING Capital Funding Trust III, 8.439%(2) 170,000 19,770,099
ING Groep NV(1) 222,300 5,621,967
ING Groep NV, 7.20%(1) 330,000 8,411,700
RenaissanceRe Holdings Ltd., 6.08%(1) 441,000 9,613,800
Zurich Regcaps Fund Trust VI(2)(3) 12,500 12,031,250
--------------------------------------------------------------------------------------------------
$ 85,755,701
--------------------------------------------------------------------------------------------------
UTILITIES - ELECTRICAL AND GAS -- 1.1%
Duquesne Light, 6.50% 325,000 $ 16,168,750
--------------------------------------------------------------------------------------------------
$ 16,168,750
--------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $438,061,064) $ 423,986,495
--------------------------------------------------------------------------------------------------
COMMERCIAL PAPER -- 1.1%
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
--------------------------------------------------------------------------------------------------
Barton Capital Corp., 1.22%, 7/1/04 $ 16,200 $ 16,200,000
--------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(AT AMORTIZED COST, $16,200,000) $ 16,200,000
--------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 7.0%
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
--------------------------------------------------------------------------------------------------
Investors Bank & Trust Company Time Deposit, 1.44%, 7/1/04 $ 99,565 $ 99,565,000
--------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(AT AMORTIZED COST, $99,565,000) $ 99,565,000
--------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 152.9%
(IDENTIFIED COST $2,177,296,612) $ 2,187,325,131
--------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- (0.5)% $ (6,282,970)
--------------------------------------------------------------------------------------------------
AUCTION PREFERRED SHARES PLUS
CUMULATIVE UNPAID
DIVIDENDS -- (52.4)% $ (750,192,361)
--------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
COMMON SHARES -- 100.0% $ 1,430,849,800
--------------------------------------------------------------------------------------------------
ADR - American Depositary Receipt
(1) Foreign security.
(2) Variable rate security.
(3) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be sold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 2004
the aggregate value of the securities is $59,109,677 or 4.1% of the net
assets.
See notes to financial statements
6
STATEMENT OF ASSETS AND LIABILITIES
AS OF JUNE 30, 2004
ASSETS
Investments, at value
(identified cost, $2,177,296,612) $ 2,187,325,131
Cash 89,532
Foreign currency, at value (cost $12,273,089) 12,274,256
Receivable for investments sold 36,292,552
Receivable from the investment adviser 7,500
Dividends and interest receivable 15,701,333
Prepaid expenses 19,150
Tax reclaim receivable 2,095,735
-------------------------------------------------------------------------------
TOTAL ASSETS $ 2,253,805,189
-------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased $ 63,921,416
Dividends payable 7,817,216
Payable to affiliate for Trustees' fees 11,322
Accrued expenses 1,013,074
-------------------------------------------------------------------------------
TOTAL LIABILITIES $ 72,763,028
-------------------------------------------------------------------------------
Auction preferred shares (30,000 shares outstanding) at
liquidation value plus cumulative unpaid dividends 750,192,361
-------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES $ 1,430,849,800
-------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Common Shares, $0.01 par value, unlimited number of shares
authorized, 76,265,527 shares issued and outstanding $ 762,655
Additional paid-in capital 1,446,944,863
Accumulated net realized loss
(computed on the basis of identified cost) (53,423,660)
Accumulated undistributed net investment income 26,443,793
Net unrealized appreciation
(computed on the basis of identified cost) 10,122,149
-------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES $ 1,430,849,800
-------------------------------------------------------------------------------
NET ASSET VALUE PER COMMON SHARE
($1,430,849,800 DIVIDED BY 76,265,527
COMMON SHARES ISSUED AND OUTSTANDING) $ 18.76
-------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED
JUNE 30, 2004(1)
INVESTMENT INCOME
Dividends (net of foreign taxes, $5,460,973) $ 64,905,603
Interest 723,910
-------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 65,629,513
-------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 6,353,636
Trustees' fees and expenses 11,322
Preferred shares remarketing agent fee 404,713
Custodian fee 249,870
Legal and accounting services 57,375
Printing and postage 32,130
Transfer and dividend disbursing agent fees 26,099
Organization expenses 7,500
Miscellaneous 67,544
-------------------------------------------------------------------------------
TOTAL EXPENSES $ 7,210,189
-------------------------------------------------------------------------------
DEDUCT --
Reduction of custodian fee $ 634
Expense reimbursement 7,500
Reduction of investment adviser fee 1,496,443
-------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 1,504,577
-------------------------------------------------------------------------------
NET EXPENSES $ 5,705,612
-------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 59,923,901
-------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) --
Investment transactions (identified cost basis) $ (52,507,888)
Foreign currency transactions (915,772)
-------------------------------------------------------------------------------
NET REALIZED LOSS $ (53,423,660)
-------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 10,028,519
Foreign currency 93,630
-------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 10,122,149
-------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (43,301,511)
-------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS $ (2,214,781)
-------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 14,407,609
-------------------------------------------------------------------------------
(1) For the period from the start of business, January 30, 2004, to June 30,
2004.
See notes to financial statements
7
STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) PERIOD ENDED
IN NET ASSETS JUNE 30, 2004(1)
-------------------------------------------------------------------------------
From operations --
Net investment income $ 59,923,901
Net realized loss from investments and foreign currency
transactions (53,423,660)
Net change in unrealized
appreciation (depreciation) of investments and
foreign currency transactions 10,122,149
Distributions to preferred shareholders (2,214,781)
-------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 14,407,609
-------------------------------------------------------------------------------
Distributions to common shareholders--
From net investment income $ (31,265,327)
-------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (31,265,327)
-------------------------------------------------------------------------------
Capital share transactions--
Proceeds from sale of common shares(2) $ 1,455,916,600
Reinvestment of distributions to common shareholders 666,017
Offering costs and preferred shares underwriting discounts (8,975,099)
-------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS $ 1,447,607,518
-------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 1,430,749,800
-------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES
At beginning of period $ 100,000
-------------------------------------------------------------------------------
AT END OF PERIOD $ 1,430,849,800
-------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME INCLUDED IN
NET ASSETS APPLICABLE TO COMMON SHARES
AT END OF PERIOD $ 26,443,793
-------------------------------------------------------------------------------
(1) For the period from the start of business, January 30, 2004, to June 30,
2004.
(2) Proceeds from sales of shares net of sales load paid of $68,603,400.
See notes to financial statements
8
FINANCIAL HIGHLIGHTS
Selected data for a common share outstanding during the periods stated
PERIOD ENDED
JUNE 30, 2004(1)(2)
--------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period (Common shares)(3) $ 19.100
--------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.806
Net realized and unrealized loss (0.585)
Distribution to preferred shareholders (0.030)
--------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.191
--------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income $ (0.410)
--------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.410)
--------------------------------------------------------------------------------------------------
PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ (0.020)
--------------------------------------------------------------------------------------------------
PREFERRED SHARES UNDERWRITING DISCOUNTS $ (0.101)
--------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $ 18.760
--------------------------------------------------------------------------------------------------
MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 16.800
--------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN ON NET ASSET VALUE(4) 0.49%
--------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN ON MARKET VALUE(4) (10.01)%
--------------------------------------------------------------------------------------------------
See notes to financial statements
9
FINANCIAL HIGHLIGHTS
Selected data for a common share outstanding during the periods stated
PERIOD ENDED
JUNE 30, 2004(1)(2)
---------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+ ++
Net assets applicable to common shares, end of period (000's omitted) $ 1,430,850
Ratios (As a percentage of average net assets applicable to common shares):
Net expenses(5) 0.98%(6)
Net expenses after custodian fee reduction(5) 0.98%(6)
Net investment income(5) 10.27%(6)
Portfolio Turnover 73%
---------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee and a reimbursement of expenses by the Adviser. Had such
actions not been taken, the ratios and net investment income would have
been as follows:
Ratios (As a percentage of average net assets applicable to common shares):
Expenses(5) 1.24%(6)
Expenses after custodian fee reduction(5) 1.24%(6)
Net investment income(5) 10.01%(6)
Net investment income per share $ 0.786
---------------------------------------------------------------------------------------------------
++ The ratios reported are based on net assets applicable solely to common
shares. The ratios based on net assets, including amounts related to
preferred shares, are as follows:
Ratios (As a percentage of average total net assets):
Net expenses 0.76%(6)
Net expenses after custodian fee reduction 0.76%(6)
Net investment income 8.02%(6)
---------------------------------------------------------------------------------------------------
+++ The operating expenses of the Fund reflect a reduction of the investment
adviser fee and a reimbursement of expenses by the Adviser. Had such
actions not been taken, the ratios would have been as follows:
Ratios (As a percentage of average total net assets):
Expenses 0.96%(6)
Expenses after custodian fee reduction 0.96%(6)
Net investment income 7.82%(6)
---------------------------------------------------------------------------------------------------
Senior Securities:
Total preferred shares outstanding 30,000
Asset coverage per preferred share(7) $ 72,701
Involuntary liquidation preference per preferred share(8) $ 25,000
Approximate market value per preferred share(8) $ 25,000
---------------------------------------------------------------------------------------------------
(1) For the period from the start of business, January 30, 2004, to June 30,
2004.
(2) Computed using average common shares outstanding.
(3) Net asset value at beginning of period reflects the deduction of the sales
load of $0.90 per share paid by the shareholder from the $20.00 offering
price.
(4) Total investment return on net asset value is calculated assuming a
purchase price at the offering price of $20.00 less the sales load of $0.90
per share paid by the shareholder on the first day and a sale at the net
aset value on the last day of the period reported. Total investment return
on market value is calculated assuming a purchase at the offering of $20.00
less the sales load of $0.90 per share paid by the shareholder on the first
day and a sale at the current market price on the last day of the period
reported. Total investment return on net asset value and total investment
return on market value are not computed on an annualized basis.
(5) Ratios do not reflect the effect of dividend payments to preferred
shareholders. Ratios to average net assets applicable to common shares
reflect the Fund's leveraged capital structure.
(6) Annualized.
(7) Calculated by subtracting the Fund's total liabilities (not including the
preferred shares) from the Fund's total assets, and dividing this by the
number of preferred shares outstanding.
(8) Plus accumulated and unpaid dividends.
See notes to financial statements
10
EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND INCOME FUND as of June 30, 2004
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1 SIGNIFICANT ACCOUNTING POLICIES
Eaton Vance Tax-Advantaged Global Dividend Income Fund (the Fund) is
registered under the Investment Company Act of 1940 (the 1940 Act), as
amended, as a diversified, closed-end management investment company. The Fund
was organized under the laws of the Commonwealth of Massachusetts by an
Agreement and Declaration of Trust dated November 14, 2003. The Fund's
investment objective is to provide a high level of after-tax total return.
The Fund seeks to achieve its objective by investing primarily in
dividend-paying common and preferred stocks. The following is a summary of
significant accounting policies consistently followed by the Fund in the
preparation of its financial statements. The policies are in conformity with
accounting principles generally accepted in the United States of America.
A INVESTMENT VALUATION -- Securities listed on a U.S. securities exchange
generally are valued at the last sale price on the day of valuation or, if no
sales took place on such date, at the mean between the closing bid and asked
prices therefore on the exchange where such securities are principally
traded. Equity securities listed on NASDAQ National Market System generally
are valued at the official NASDAQ closing price. Unlisted or listed
securities for which closing sales prices or closing quotations are not
available are valued at the mean between the latest available bid and asked
prices. Exchange-traded options are valued at the last sale price for the day
of valuation as quoted on the principal exchange or board of trade on which
the options are traded or, in the absence of sales on such date, at the mean
between the latest bid and asked prices therefore. Futures positions on
securities and currencies generally are valued at closing settlement prices.
Short-term debt securities with a remaining maturity of 60 days or less are
valued at amortized cost. If short-term debt securities were acquired with a
remaining maturity of more than 60 days, their amortized cost value will be
based on their value on the sixty-first day prior to maturity. Other fixed
income and debt securities, including listed securities and securities for
which price quotations are available, will normally be valued on the basis of
valuations furnished by a pricing service. The daily valuation of foreign
securities generally is determined as of the close of trading on the
principal exchange on which such securities trade. Events occurring after the
close of trading on foreign exchanges may result in adjustments to the
valuation of foreign securities to more accurately reflect their fair value
as of the close of regular trading on the New York Stock Exchange. The Fund
may rely on an independent fair valuation service in adjusting the valuations
of foreign securities. Foreign securities and currencies are valued in U.S.
dollars, based on foreign currency exchange rate quotations supplied by an
independent quotation service. Investments held by the Fund for which
valuations or market quotations are unavailable are valued at fair value
using methods determined in good faith by or at the direction of the Trustees
of the Fund considering relevant factors, data and information including the
market value of freely tradable securities of the same class in the principal
market on which such securities are normally traded.
B 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 Fund is
informed of the ex-dividend date. Interest income is recorded on the accrual
basis.
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 all of its taxable income, including any
net realized gain on investments. Accordingly, no provision for federal
income or excise tax is necessary.
D OFFERING COSTS -- Costs incurred by the Fund in connection with the
offering of the common shares were recorded as a reduction of capital paid in
excess of par applicable to common shares.
E WRITTEN OPTIONS -- Upon the writing of a call or a put option, an amount
equal to the premium received by the Fund is included in the Statement of
Assets and Liabilities as a liability. The amount of the liability is
subsequently marked-to-market to reflect the current value of the option
written in accordance with the Fund's policies on investment valuations
discussed above. Premiums received from writing options which expire are
treated as realized gains. Premiums received from writing options which are
exercised or are closed are added to or offset against the proceeds or amount
paid on the transaction to determine the realized gain or loss. If a put
option is exercised, the premium reduces the cost basis of the securities
purchased by the Fund. The Fund, as writer of an option, may have no control
over whether the underlying securities may be sold (call) or purchased (put)
and, as a result, bears the market risk of an unfavorable change in the price
of the securities underlying the written option.
11
F PURCHASED OPTIONS -- Upon the purchase of a call or put option, the premium
paid by the Fund is included in the Statement of Assets and Liabilities as an
investment. The amount of the investment is subsequently marked-to-market to
reflect the current market value of the option purchased, in accordance with
the Fund's policies on investment valuations discussed above. If an option
which the Fund has purchased expires on the stipulated expiration date, the
Fund will realize a loss in the amount of the cost of the option. If the Fund
enters into a closing sale transaction, the Fund will realize a gain or loss,
depending on whether the sales proceeds from the closing sale transaction are
greater or less than the cost of the option. If a Fund exercises a put
option, it will realize a gain or loss from the sale of the underlying
security, and the proceeds from such sale will be decreased by the premium
originally paid. If the Fund exercises a call option, the cost of the
security which the Fund purchases upon exercise will be increased by the
premium originally paid.
G SWAP AGREEMENTS -- The Fund may enter into swap agreements to hedge against
fluctuations in securities prices, interest rates or market conditions, to
change the duration of the overall portfolio, to mitigate non-payment or
default risk, or to gain exposure to particular securities, baskets of
securities, indices or currencies. In a standard swap transaction, two
parties agree to exchange the returns (or differentials in rates of return)
to be exchanged or swapped between the parties, which returns are calculated
with respect to a notional amount (i.e., the return on or increase in value
of a particular dollar amount invested at a particular interest rate or in a
"basket" of securities representing a particular index). The Fund will enter
into swaps on a net basis. If the other party to a swap defaults, the Fund's
risk of loss consists of the net amount of payments that the Fund is
contractually entitled to receive. The Fund will not enter into any swap
unless the claims-paying ability of the other party thereto is considered to
be investment grade by the Adviser. These instruments are traded in the
over-the-counter market. If the Adviser is incorrect in its forecasts of
market values, interest rates and other applicable factors, the investment
performance of the Fund would be unfavorably affected.
H FOREIGN CURRENCY TRANSLATION -- Investment valuations, other assets, and
liabilities initially expressed in foreign currencies are converted each
business day into U.S. dollars based upon current exchange rates. Purchases
and sales of foreign investment securities and income and expenses are
converted into U.S. dollars based upon currency exchange rates prevailing on
the respective dates of such transactions. Recognized gains or losses on
investment transactions attributable to 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.
I USE OF ESTIMATES -- The preparation of the financial statements in
conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of income and expense during the
reporting period. Actual results could differ from those estimates.
J INDEMNIFICATIONS -- Under the Fund'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 and shareholders
are indemnified against personal liability for obligations of the Fund.
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.
K OTHER -- Investment transactions are accounted for on a trade date basis.
Realized gains and losses are computed on the specific identification of the
securities sold.
L EXPENSE REDUCTION -- Investors Bank & Trust Company (IBT) serves as
custodian of the Fund. Pursuant to the custodian agreement, IBT receives a
fee reduced by credits which are determined based on the average daily cash
balance the Fund maintains with IBT. All credit balances used to reduce the
Fund's custodian fees are reported as a reduction of total expenses in the
Statement of Operations. For the period from the start of business, January
30, 2004 to June 30, 2004, $634 credit balances were used to reduce the
Fund's custodian fee.
M INTERIM FINANCIAL STATEMENTS -- The interim financial statements relating
to June 30, 2004 and for the period then ended have not been audited by an
independent registered public accounting firm, but in the opinion of the
Fund's management reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
12
2 AUCTION PREFERRED SHARES
The Fund issued 4,000 shares of Auction Preferred Shares (APS) Series A,
4,000 shares of APS Series B, 4,000 shares of APS Series C, 4,000 shares of
APS Series D, 4,000 shares of APS Series E, 4,000 shares of APS Series F and
6,000 shares of APS Series G on April 12, 2004 in a public offering. The
underwriting discount and other offering costs were recorded as a reduction
of the capital of the common shares. Dividends of the APS, which accrue
daily, are cumulative at a rate which was established at the offering of the
APS and have been reset by an auction based on the dividend period of each
Series. Rates are reset weekly for Series A, Series B, and Series C,
approximately monthly for Series D and Series E, approximately semi-annually
for Series F, and annually for Series G. Dividends are generally paid on the
day following the end of the dividend period for Series A, Series B, Series
C, Series D, and Series E. Series F and Series G pay accumulated dividends on
the first business day of each month and on the day following the end of the
dividend period.
Dividend rate ranges for the period from the commencement of the offering,
April 12, 2004 to June 30, 2004 are as indicated below:
SERIES DIVIDEND RATE RANGES
-------------------------------------------------
Series A 1.08% - 1.50%
Series B 1.089% - 1.50%
Series C 1.10% - 1.60%
Series D 1.15% - 1.40%
Series E 1.15% - 1.45%
Series F 1.25%
Series G 1.55%
The APS are redeemable at the option of the Fund, at a redemption price equal
to $25,000 per share, plus accumulated and unpaid dividends on any dividend
payment date. The APS are also subject to mandatory redemption at a
redemption price equal to $25,000 per share, plus accumulated and unpaid
dividends, if the Fund is in default for an extended period on its asset
maintenance requirements with respect to the APS. If the dividends on the APS
shall remain unpaid in an amount equal to two full years' dividends, the
holders of the APS as a class have the right to elect a majority of the Board
of Trustees. In general, the holders of the APS and the common shares have
equal voting rights of one vote per share, except that the holders of the
APS, as a separate class, have the right to elect at least two members of the
Board of Trustees. The APS have a liquidation preference of $25,000 per
share, plus accumulated and unpaid dividends. The Fund is required to
maintain certain asset coverage with respect to the APS as defined in the
Fund's By-Laws and the Investment Company Act of 1940. The Fund pays an
annual fee equivalent to 0.25% of the preferred shares' liquidation value for
the remarketing efforts associated with the preferred auctions.
3 DISTRIBUTION TO SHAREHOLDERS
The Fund intends to make monthly distributions of net investment income,
after payment of any dividends on any outstanding Auction Preferred Shares.
In addition, at least annually, the Funds intends to distribute net capital
gain, if any. Distributions are recorded on the ex-dividend date. The
applicable dividend rates for APS on June 30, 2004 are listed below. For the
period from the commencement of the offering, the amount of dividends each
Series paid to Auction Preferred shareholders and average APS dividend rates
for such period were as follows:
DIVIDENDS PAID TO
APS PREFERRED AVERAGE APS
DIVIDEND RATES SHAREHOLDERS DIVIDEND RATES
AS OF FOR THE PERIOD ENDED FOR THE PERIOD ENDED
SERIES JUNE 30, 2004 JUNE 30, 2004(1) JUNE 30, 2004(1)
-----------------------------------------------------------------------
Series A 1.500% $ 282,480 1.278%
Series B 1.500% $ 285,440 1.301%
Series C 1.600% $ 284,653 1.315%
Series D 1.400% $ 282,516 1.283%
Series E 1.450% $ 285,272 1.317%
Series F 1.250% $ 277,760 1.250%
Series G 1.550% $ 516,660 1.550%
(1) For the period from the commencement of offering, April 12, 2004, to June
30, 2004.
4 INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser fee is earned by Eaton Vance Management (EVM), as
compensation for management and investment advisory services rendered to the
Fund. Under the advisory agreement, EVM receives a monthly advisory fee in
the amount equal to 0.85% annually of average daily gross assets of the Fund.
For the period from the start of business, January 30, 2004 to June 30, 2004,
the advisory fee amounted to $6,353,636. EVM serves as the administrator of
the Fund , but currently receives no compensation for providing
administrative services to the Fund.
13
In addition, the Adviser has contractually agreed to reimburse the Fund for
fees and other expenses in the amount of 0.20% of the average daily gross
assets for the first five years of the Fund's operations, 0.15% of average
daily gross assets in year six, 0.10% in year seven and 0.05% in year eight.
For the period from the start of business, January 30, 2004 to June 30, 2004
the Investment Adviser waived $1,496,443 of its advisory fee. In addition,
the Adviser has agreed to reimburse the Fund for all organizational costs,
estimated at $7,500, which is payable by the Adviser at June 30, 2004.
Trustees of the Fund who are not affiliated with EVM 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 period from the
start of business, January 30, 2004, to June 30, 2004, no significant amounts
have been deferred.
Certain officers and Trustees of the Fund are officers of the above
organization.
5 PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of investments, other than short-term obligations,
aggregated $3,275,145,638 and $1,161,102,103 respectively, for the period
from the start of business, January 30, 2004, to June 30, 2004.
6 FEDERAL INCOME TAX BASIS OF UNREALIZED APPRECIATION (DEPRECIATION)
The cost and unrealized appreciation (depreciation) in value of investments
owned by the Fund at June 30, 2004, as computed on a federal income tax
basis, were as follows:
AGGREGATE COST $ 2,177,296,612
----------------------------------------------------------------
Gross unrealized appreciation $ 46,056,913
Gross unrealized depreciation (36,028,394)
----------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 10,028,519
----------------------------------------------------------------
7 COMMON SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Fund to issue an unlimited
number of full and fractional $0.01 par value common shares of beneficial
interest. Transactions in common shares were as follows:
PERIOD ENDED
JUNE 30, 2004
(UNAUDITED)(1)
--------------------------------------------------------------
Sales 76,231,000
Issued to shareholders electing to
receive payments of distributions
in Fund shares 34,527
--------------------------------------------------------------
NET INCREASE 76,265,527
--------------------------------------------------------------
(1) For the period from the start of business, January 30, 2004 to June 30,
2004.
8 FINANCIAL INSTRUMENTS
The Fund may trade in financial instruments with off-balance sheet risk in
the normal course of its investing activities to assist in managing exposure
to various market risks. These financial instruments include written options,
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 Fund
has in particular classes of financial instruments and does 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. The Fund did not have any open
obligations under these financial instruments at June 30, 2004.
14
EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND INCOME FUND
DIVIDEND REINVESTMENT PLAN
The Fund offers a dividend reinvestment plan (the Plan) pursuant to which
shareholders may elect to have dividends and capital gains distributions
automatically reinvested in common shares (the Shares) of the Fund. You may
elect to participate in the Plan by completing the Dividend Reinvestment Plan
Application Form. If you do not participate, you will receive all distributions
in cash paid by check mailed directly to you by PFPC Inc. as dividend paying
agent. On the distribution payment date, if the net asset value per Share is
equal to or less than the market price per Share plus estimated brokerage
commissions then new Shares will be issued. The number of Shares shall be
determined by the greater of the net asset value per Share or 95% of the market
price. Otherwise, Shares generally will be purchased on the open market by the
Plan Agent. Distributions subject to income tax (if any) are taxable whether or
not shares are reinvested.
If your shares are in the name of a brokerage firm, bank, or other nominee, you
can ask the firm or nominee to participate in the Plan on your behalf. If the
nominee does not offer the Plan, you will need to request that your shares be
re-registered in your name with the Fund's transfer agent, PFPC Inc., or you
will not be able to participate.
The Plan Agent's service fee for handling distributions will be paid by the
Fund. Each participant will be charged their pro rata share of brokerage
commissions on all open-market purchases.
Plan participants may withdraw from the Plan at any time by writing to the Plan
Agent at the address noted on the following page. If you withdraw, you will
receive shares in your name for all Shares credited to your account under the
Plan. If a participant elects by written notice to the Plan Agent to have the
Plan Agent sell part or all of his or her Shares and remit the proceeds, the
Plan Agent is authorized to deduct a $5.00 fee plus brokerage commissions from
the proceeds.
If you wish to participate in the Plan and your shares are held in your own
name, you may complete the form on the following page and deliver it to the Plan
Agent.
Any inquiries regarding the Plan can be directed to the Plan Agent, PFPC Inc.,
at 1-800-331-1710.
15
EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND INCOME FUND
APPLICATION FOR PARTICIPATION IN DIVIDEND REINVESTMENT PLAN
This form is for shareholders who hold their common shares in their own names.
If your common shares are held in the name of a brokerage firm, bank, or other
nominee, you should contact your nominee to see if it will participate in the
Plan on your behalf. If you wish to participate in the Plan, but your brokerage
firm, bank, or nominee is unable to participate on your behalf, you should
request that your common shares be re-registered in your own name which will
enable your participation in the Plan.
The following authorization and appointment is given with the understanding that
I may terminate it at any time by terminating my participation in the Plan as
provided in the terms and conditions of the Plan.
-------------------------------------------------
Please print exact name on account:
-------------------------------------------------
Shareholder signature Date
-------------------------------------------------
Shareholder signature Date
Please sign exactly as your common shares are
registered. All persons whose names appear on the
share certificate must sign.
YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DIVIDENDS AND
DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.
THIS AUTHORIZATION FORM, WHEN SIGNED, SHOULD BE MAILED TO THE FOLLOWING ADDRESS:
Eaton Vance Tax-Advantaged Global Dividend Income Fund
c/o PFPC Inc.
P.O. Box 43027
Providence, RI 02940-3027
800-331-1710
NUMBER OF EMPLOYEES
The Fund is organized as a Massachusetts business trust and is registered under
the Investment Company Act of 1940, as amended, as a diversified closed-end
management investment company and has no employees.
NUMBER OF SHAREHOLDERS
As of June 30, 2004, our records indicate that there are 44 registered
shareholders and approximately 58,795 shareholders owning the Fund shares in
street name, such as through brokers, banks, and financial intermediaries.
If you are a street name shareholder and wish to receive our reports directly,
which contain important information about the Fund, please write or call:
Eaton Vance Distributors, Inc.
The Eaton Vance Building
255 State Street
Boston, MA 02109
1-800-225-6265
NEW YORK STOCK EXCHANGE SYMBOL
The New York Stock Exchange symbol is ETG.
16
EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND INCOME FUND
INVESTMENT MANAGEMENT
OFFICERS
Duncan W. Richardson
President
Thomas E. Faust Jr.
Vice President
James B. Hawkes
Vice President and Trustee
Thomas H. Luster
Vice President
Michael R. Mach
Vice President
Judith A. Saryan
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
TRUSTEES
Samuel L. Hayes, III
William H. Park
Ronald A. Pearlman
Norton H. Reamer
Lynn A. Stout
17
This Page Intentionally Left Blank
This Page Intentionally Left Blank
INVESTMENT ADVISER OF EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND INCOME FUND
EATON VANCE MANAGEMENT
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
ADMINISTRATOR OF EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND INCOME FUND
EATON VANCE MANAGEMENT
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
CUSTODIAN
INVESTORS BANK & TRUST COMPANY
200 CLARENDON STREET
BOSTON, MA 02116
TRANSFER AGENT
PFPC INC.
ATTN: EATON VANCE FUNDS
P.O. BOX 43027
PROVIDENCE, RI 02940-3027
(800) 262-1122
INDEPENDENT AUDITORS
DELOITTE & TOUCHE LLP
200 BERKELEY STREET
BOSTON, MA 02116-5022
EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND INCOME FUND
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
2051-8/04 CE-TAGDISRC
ITEM 2. CODE OF ETHICS
The registrant has adopted a code of ethics applicable to its Principal
Executive Officer, Principal Financial Officer and Principal Accounting Officer.
The registrant undertakes to provide a copy of such code of ethics to any person
upon request, without charge, by calling 1-800-262-1122.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The registrant's Board has designated William H. Park, Samuel L. Hayes, III and
Norton H. Reamer, each an independent trustee, as its audit committee financial
experts. Mr. Park is a certified public accountant who is the President and
Chief Executive Officer of Prizm Capital Management, LLC (a fixed income
investment management firm). Previously, he served as Executive Vice President
and Chief Financial Officer of United Asset Management Corporation ("UAM") (a
holding company owning institutional investment management firms). Mr. Hayes is
the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard
University Graduate School of Business Administration. Mr. Reamer is the
President, Chief Executive Officer and a Director of Asset Management Finance
Corp. (a specialty finance company serving the investment management industry)
and is President of Unicorn Corporation (an investment and financial advisory
services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan
Management Co., Inc. (an investment management company) and Advisory Director of
Berkshire Capital Corporation (an investment banking firm), Chairman of the
Board of UAM and Chairman, President and Director of the UAM Funds (mutual
funds).
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not required in this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not required in this filing.
ITEM 6. SCHEDULE OF INVESTMENTS
Not required in this filing.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
The registrant's Board has adopted a proxy voting policy and procedure (the
"Fund Policy"), pursuant to which the Trustees have delegated proxy voting
responsibility to the registrant's investment adviser and adopted the investment
adviser's proxy voting policies and procedures (the "Policies") which are
described below. The Trustees will review the registrant's proxy voting records
from time to time and
will annually consider approving the Policies for the upcoming year. In the
event that a conflict of interest arises between the registrant's shareholders
and the investment adviser, the administrator, or any of their affiliates or any
affiliate of the registrant, the investment adviser will generally refrain from
voting the proxies related to the companies giving rise to such conflict until
it consults with the Board's Special Committee except as contemplated under the
Fund Policy. The Special Committee will instruct the investment adviser on the
appropriate course of action.
The Policies are designed to promote accountability of a company's management to
its shareholders and to align the interests of management with those
shareholders. The investment adviser will generally support company management
on proposals relating to environmental and social policy issues and on matters
regarding the state of organization of the company. On all other matters, the
investment adviser will take management's proposals under advisement but will
consider each matter in light of the guidelines set forth in the Policies.
Except in the instance of routine matters related to corporate administration
which are not expected to have a significant economic impact on the company or
its shareholders (on which the investment adviser will routinely vote with
management), the investment adviser will review each matter on a case-by-case
basis and reserves the right to deviate from the Policies guidelines when it
believes the situation warrants such a deviation. The Policy includes voting
guidelines for matters relating to, among other things, the election of
directors, approval of independent auditors, executive compensation, corporate
structure and anti-takeover defenses. The investment adviser may abstain from
voting from time to time where it determines that the costs associated with
voting a proxy outweighs the benefits derived from exercising the right to vote.
In addition, the investment adviser will monitor situations that may result in a
conflict of interest between the registrant's shareholders and the investment
adviser, the administrator, or any of their affiliates or any affiliate of the
registrant by maintaining a list of significant existing and prospective
corporate clients. The investment adviser's personnel responsible for reviewing
and voting proxies on behalf of the registrant will report any proxy received or
expected to be received from a company included on that list to the investment
adviser's general counsel or chief equity investment officer. The general
counsel or chief equity investment officer will determine if a conflict exists.
If a conflict does exist, the proxy will either be voted strictly in accordance
with the Policy or the investment adviser will seek instruction on how to vote
from the Board.
Effective August 31, 2004, information on how the registrant voted proxies
relating to portfolio securities during the 12 month period ended June 30, 2004
will be available (1) without charge, upon request, by calling 1-800-262-1122,
and (2) on the Securities and Exchange Commission's website at
http://www.sec.gov.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not required in this filing.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable
ITEM 10. 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 that has materially affected, or is
reasonably likely to materially affect the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS
(a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2).
(a)(2)(i) Treasurer's Section 302 certification.
(a)(2)(ii) President's Section 302 certification.
(b) Combined Section 906 certification.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Eaton Vance Tax-advantaged Global Dividend Income Fund
------------------------------------------------------
By: /S/ Duncan Richardson
---------------------
Duncan Richardson
President
Date: August 13, 2004
---------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /S/ James L. O'connor
---------------------
James L. O'Connor
Treasurer
Date: August 13, 2004
---------------
By: /S/ Duncan Richardson
---------------------
Duncan Richardson
President
Date: August 13, 2004
---------------