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
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Eaton Vance Tax Advantaged Global Dividend Income Fund
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(Exact Name of Registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
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(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
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(Name and Address of Agent for Services)
(617) 482-8260
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(Registrant's Telephone Number)
December 31
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Date of Fiscal Year End
December 31, 2004
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Date of Reporting Period
ITEM 1. REPORTS TO STOCKHOLDERS
[EV LOGO]
[GRAPHIC IMAGE]
ANNUAL REPORT DECEMBER 31, 2004
[GRAPHIC IMAGE]
EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND INCOME FUND
[GRAPHIC IMAGE]
IMPORTANT NOTICES REGARDING PRIVACY,
DELIVERY OF SHAREHOLDER DOCUMENTS,
PORTFOLIO HOLDINGS, AND PROXY VOTING
Privacy. The Eaton Vance organization is committed to ensuring your financial
privacy. Each of the financial institutions identified below has in effect the
following policy ("Privacy Policy") with respect to nonpublic personal
information about its customers:
- Only such information received from you, through application forms or
otherwise, and information about your Eaton Vance fund transactions will be
collected. This may include information such as name, address, social
security number, tax status, account balances and transactions.
- None of such information about you (or former customers) will be disclosed
to anyone, except as permitted by law (which includes disclosure to
employees necessary to service your account). In the normal course of
servicing a customer's account, Eaton Vance may share information with
unaffiliated third parties that perform various required services such as
transfer agents, custodians and broker/dealers.
- Policies and procedures (including physical, electronic and procedural
safeguards) are in place that are designed to protect the confidentiality
of such information.
- We reserve the right to change our Privacy Policy at any time upon proper
notification to you. Customers may want to review our Policy periodically
for changes by accessing the link on our homepage: www.eatonvance.com.
Our pledge of privacy applies to the following entities within the Eaton Vance
organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton
Vance Investment Counsel, Boston Management and Research, and Eaton Vance
Distributors, Inc.
In addition, our Privacy Policy only applies to those Eaton Vance customers who
are individuals and who have a direct relationship with us. If a customer's
account (i.e., fund shares) is held in the name of a third-party financial
adviser/broker-dealer, it is likely that only such adviser's privacy policies
apply to the customer. This notice supersedes all previously issued privacy
disclosures.
For more information about Eaton Vance's Privacy Policy, please call
1-800-262-1122.
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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.
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Portfolio Holdings. Each Eaton Vance Fund and its underlying Portfolio (if
applicable) will file a schedule of its portfolio holdings on Form N-Q with the
Securities and Exchange Commission for the first and third quarters of each
fiscal year. The Form N-Q will be available on the Eaton Vance website
www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR
database on the Securities and Exchange Commision's website at www.sec.gov. Form
N-Q may also be reviewed and copied at the SEC's public reference room in
Washington, D.C. (call 1-800-732-0330 for information on the operation of the
public reference room).
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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 12 month
period ended June 30, without charge, upon request, by calling 1-800-262-1122.
This description is also available on the Securities and Exchange Commission's
website at www.sec.gov.
EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND INCOME FUND as of December 31, 2004
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
[PHOTO OF MICHAEL R. MACH]
Michael R. Mach, CFA
Co-Portfolio Manager
[PHOTO OF JUDITH A. SARYAN]
Judith A. Saryan, CFA
Co-Portfolio Manager
[PHOTO OF THOMAS H. LUSTER]
Thomas H. Luster, CFA
Co-Portfolio Manager
THE FUND
- Based on share price, Eaton Vance Tax-Advantaged Global Dividend Income
Fund (the Fund), a closed-end fund traded on the New York Stock Exchange,
had a total return of 10.11% for the period from inception on January 30,
2004, to December 31, 2004.(1) This return resulted from an increase in
share price from $19.10 (offering price, less all commissions and fees) on
January 30, 2004, to $19.79 on December 31, 2004, and the distribution of
$1.12 per share in dividend income. Based on the Fund's most recent
dividend and a closing share price of $19.79 on December 31, 2004, the Fund
had a market yield of 11.07%.(2)
- Based on net asset value (NAV) per share of $21.68 on December 31, 2004,
and the distribution of $1.12 per share in dividend income, the Fund had a
total return of 20.63% for the 11 months ended December 31, 2004.(1)
MANAGEMENT DISCUSSION
- During the 11-month period ending December 31, 2004, U.S. equity markets
extended their recent advance. Two continued drivers of equity market
strength during the period were the growing U.S. economy and the more
favorable investment tax environment created by The Jobs and Growth Tax
Relief Reconciliation Act of 2003. The new lower tax rates now being
applied to long-term capital gains and to qualified equity dividend income
are providing equity investors with a tax environment about as favorable as
any we have known since the federal income tax was instituted in 1913.
- Based on the Fund's objective of providing a high level of after-tax total
return, consisting primarily of tax-advantaged dividend income and capital
appreciation, the Fund was primarily invested in securities that generated
a relatively high level of qualifying dividend income (QDI) during the
period. At the end of the period, the Fund had approximately 79% of total
investments invested in common stocks, approximately 19% of total
investments invested in preferred stocks and 2% of total investments in
cash equivalents. Within the common stock portfolio, the Fund had 32% of
total investments invested in utility and telecommunication stocks. An
additional 37% of the Fund's total investments were invested in common
stocks diversified across the consumer, industrial and financial sectors.
- The utility stocks owned by the Fund generally outperformed the overall
markets throughout the 11-month period ending December 31, 2004. Utility
stocks rose during this period, as long-term interest rates declined.
Historically, utility and other higher-yielding stocks have tended to do
well during periods of declining long-term interest rates. Also throughout
this period, many of the utility companies owned by the Fund experienced
strong free cash flow generation. This allowed many of the Fund's utility
holdings to increase their regular quarterly, semi-annual, or annual
dividend payments. In a number of cases, companies held in the Fund's
portfolio also rewarded shareholders with special one-time dividend
payments.
- In addition to the utility stocks mentioned above, the Fund also benefited
from being invested in a broadly diversified basket of other
dividend-paying common stocks. Consumer-related stocks held by the Fund
generally moved higher during the period, as consumer spending benefited
from tax rebates and strong new job creation. Growing demand and increasing
commodity prices generally benefited the Fund's holdings in the energy and
material sectors. As improving corporate earnings and free cash flow began
to fuel a rebound in business spending, industrial stocks held by the Fund
also generally benefited.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. RETURNS ARE HISTORICAL
AND ARE CALCULATED BY DETERMINING THE PERCENTAGE CHANGE IN SHARE PRICE OR
NET ASSET VALUE WITH ALL DISTRIBUTIONS REINVESTED. THE RETURNS DO NOT
INCLUDE DIVIDENDS DECLARED IN DECEMBER 2004 AND PAYABLE IN 2005. 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 PERFORMANCE DURING CERTAIN PERIODS REFLECTS THE
STRONG STOCK MARKET PERFORMANCE AND/OR THE STRONG PERFORMANCE OF STOCKS HELD
DURING THOSE PERIODS. THIS PERFORMANCE IS NOT TYPICAL AND MAY NOT BE
REPEATED.
(1) PERFORMANCE RESULTS REFLECT THE EFFECT OF LEVERAGE RESULTING FROM THE
FUND'S ISSUANCE OF AUCTION PREFERRED SHARES. 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.
(2) THE FUND'S MARKET 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. THE MOST RECENT DIVIDEND INCLUDED AN EXTRA $0.07 PER SHARE.
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
- During the period, preferred stocks owned by the Fund generated
mid-single-digit returns. By comparison, preferred stock returns outpaced
fully taxable investment grade bonds by approximately 0.5%. The performance
of the Fund's preferred stock holdings generally followed fixed-income
benchmarks during the period, posting positive returns during periods of
stable or falling interest rates, and negative returns during periods when
yields moved higher. During the last 11 months, the volatility associated
with owning preferred stocks was greater than usual. The Fund's disciplined
and research-intensive approach to managing its preferred portfolio helped
allow it to navigate successfully through this period of unusual
volatility.
- Since the Fund initially issued its Auction Preferred Shares (APS) leverage
in April 2004, we have on a number of occasions moved to extend the
maturities of these issues. As of December 31, 2004, the Fund's $750
million in APS borrowings, which represented approximately 31% of the
Fund's total assets, maintained a weighted average reset period of 200
days. This compares against a weighted average reset of 105 days when the
leverage was first issued. By lengthening the maturity of the Fund's APS
borrowings in this manner, the Fund has sought to lower its sensitivity to
rising short-term interest rates. Use of financial leverage creates an
opportunity for increased income, but, at the same time, creates special
risks (including the likelihood of greater volatility of net asset value
and market price of the common shares).
- The Fund has invested in non-U.S. securities in both its common and
preferred portfolios. These investments have provided the Fund with
international diversification and dividend yields often more attractive
than the yields available on stocks issued by similar domestic
corporations. As of December 31, 2004, approximately 33% of the Fund's
total investments were invested in non-U.S. common stocks. In addition,
approximately 16% of the Fund's total investments were invested in "Yankee"
preferreds. Yankee preferreds are preferred stocks generally issued by
large, highly rated, European financial institutions, but denominated in
U.S. dollars.
- During the last 11 months, the Fund has twice announced increases in its
monthly dividend. The first announcement was on September 15, 2004, when
the Fund increased its monthly dividend from $0.1025 to $0.1075 per share,
and the second announcement was on December 9, 2004, when the Fund
increased its monthly dividend from $0.1075 to $0.1125 per share. Also, on
December 9, 2004 the Fund announced a special dividend of $0.0700 per
share. The amount of monthly dividend distributions may vary, depending on
a number of factors. As Portfolio and market conditions change, the rate of
dividends on common shares could change.
- The Fund estimates that virtually all of the income declared by the Fund in
calendar year 2004 will be considered QDI, subject to taxation at long-term
capital gains rates no greater than 15%.
- The increases in the monthly dividend and the special dividend reflect both
the effective implementation of the Fund's dividend capture strategy and
the significant number of dividend increases announced by companies
represented in the Fund's common stock portfolio.
- The Fund's dividend capture strategy is a trading strategy designed to
enhance the level of qualified, tax-advantaged dividend income earned by
the Fund. By implementing its dividend capture strategy, the Fund has been
able to collect a greater number of dividend payments over the last 11
months than it would have collected by simply adhering to a buy-and-hold
strategy.
- The Fund's investment approach is to buy a diversified portfolio of
dividend-paying stocks, whether common or preferred, of companies
characterized by strong business franchises and solid balance sheets. For
common stocks, we generally focus on companies that offer the potential for
growth of income and capital appreciation over time. For preferred stocks,
we take into consideration the interest rate sensitivity of the investment
and our interest rate expectations. We will also maintain our discipline of
buying shares in such companies only when we believe they are inexpensive
or undervalued relative to the overall market.
- Given the historically low tax rates now applied to qualifying equity
dividend income, more companies are paying dividends and many others are
growing their dividends at an accelerated rate. This is providing a new
concept of growth, a concept of dividend growth that we believe
conservative investors are coming to appreciate more and more fully.
THE VIEWS EXPRESSED THROUGHOUT 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 THE INVESTMENT ADVISER DISCLAIMS ANY RESPONSIBILITY TO
UPDATE SUCH VIEWS. THESE VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND,
BECAUSE INVESTMENT DECISIONS FOR A FUND ARE BASED ON MANY FACTORS, MAY NOT BE
RELIED ON AS AN INDICATION OF TRADING INTENT ON BEHALF OF ANY EATON VANCE FUND.
3
EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND INCOME FUND as of December 31, 2004
PERFORMANCE
FUND INFORMATION
as of December 31, 2004
PERFORMANCE*
Cumulative Total Returns (by share price, New York Stock Exchange)
Life of Fund (1/30/04) 10.11%
Cumulative Total Returns (at net asset value)
Life of Fund (1/30/04) 20.63%
* PERFORMANCE RESULTS REFLECT THE EFFECTS OF LEVERAGE RESULTING FROM THE
FUND'S ISSUANCE OF AUCTION PREFERRED SHARES IN APRIL 2004.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. RETURNS ARE HISTORICAL
AND ARE CALCULATED BY DETERMINING THE PERCENTAGE CHANGE IN SHARE PRICE OR
NET ASSET VALUE WITH ALL DISTRIBUTIONS REINVESTED. THE RETURNS DO NOT
INCLUDE DIVIDENDS DECLARED IN DECEMBER 2004 AND PAYABLE IN 2005. 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.
[CHART]
ASSET ALLOCATION**
By net assets
Common Stocks 79%
Preferred Stocks 19%
Commercial Paper 2%
**Asset Allocation subject to change due to active management.
4
EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND INCOME FUND as of December 31, 2004
PORTFOLIO OF INVESTMENTS
COMMON STOCKS -- 114.6%
SECURITY SHARES VALUE
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BEVERAGES -- 1.7%
Diageo PLC(1) 2,000,000 $ 28,565,946
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$ 28,565,946
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BUILDING MATERIALS -- 0.7%
Stanley Works 250,000 $ 12,247,500
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$ 12,247,500
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CHEMICALS -- 3.4%
Dow Chemical Co. (The) 700,000 $ 34,657,000
Lyondell Chemical Co. 750,000 21,690,000
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$ 56,347,000
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COAL -- 1.2%
Fording Canadian Coal Trust(1) 250,000 $ 19,287,500
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$ 19,287,500
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COMMERCIAL BANKS -- 16.9%
Bank of America Corp. 1,000,000 $ 46,990,000
Bank of Nova Scotia(1) 1,500,000 50,775,000
Barclays PLC(1) 4,500,000 50,754,790
Barclays PLC ADR 75,000 3,426,000
Canadian Imperial Bank of Commerce(1) 171,824 10,358,342
HSBC Holdings PLC(1) 1,000,000 16,847,908
National Bank of Canada(1) 350,000 14,477,319
North Fork Bancorporation, Inc. 500,000 14,425,000
TCF Financial Corp. 300,000 9,642,000
Wachovia Corp. 775,000 40,765,000
Wells Fargo & Co. 350,000 21,752,500
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$ 280,213,859
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DISTRIBUTORS -- 1.1%
Genuine Parts Co. 400,000 $ 17,624,000
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$ 17,624,000
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DIVERSIFIED TELECOMMUNICATION SERVICES -- 14.3%
BCE, Inc.(1) 1,200,000 $ 28,956,000
BellSouth Corp. 1,550,000 43,074,500
BT Group PLC(1) 4,000,000 15,619,892
Citizens Communications Co. 1,650,000 22,753,500
SBC Communications, Inc. 1,850,000 $ 47,674,500
Sprint Corp. (FON Group) 300,000 7,455,000
Telecom Corp. of New Zealand(1) 500,000 2,217,296
Telefonos de Mexico SA ADR(1) 200,000 7,664,000
Telstra Corp. Ltd.(1) 3,000,000 11,546,847
Verizon Communications, Inc. 1,200,000 48,612,000
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$ 235,573,535
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ELECTRICAL EQUIPMENT -- 1.5%
Emerson Electric Co. 350,000 $ 24,535,000
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$ 24,535,000
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ELECTRICAL / ELECTRONIC MANUFACTURER -- 0.9%
Cooper Industries Ltd., Class A(1) 225,000 $ 15,275,250
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$ 15,275,250
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ENGINEERING AND CONSTRUCTION -- 2.1%
Bouygues SA(1) 765,000 $ 35,340,358
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$ 35,340,358
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FINANCIAL SERVICES -- 1.5%
Citigroup, Inc. 500,000 $ 24,090,000
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$ 24,090,000
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FOOD PRODUCTS -- 1.5%
General Mills, Inc. 500,000 $ 24,855,000
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$ 24,855,000
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INDUSTRIAL CONGLOMERATES -- 0.9%
General Electric Co. 400,000 $ 14,600,000
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$ 14,600,000
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INSURANCE -- 1.5%
XL Capital Ltd., Class A(1) 325,000 $ 25,236,250
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$ 25,236,250
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LODGING AND GAMING -- 0.6%
Harrah's Entertainment, Inc. 150,000 $ 10,033,500
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$ 10,033,500
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See notes to financial statements
5
SECURITY SHARES VALUE
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MACHINERY -- 1.5%
Caterpillar, Inc. 250,000 $ 24,377,500
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$ 24,377,500
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MEDICAL PRODUCTS -- 2.6%
Baxter International, Inc. 1,250,000 $ 43,175,000
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$ 43,175,000
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OIL AND GAS -- 11.1%
BP PLC ADR 900,000 $ 52,560,000
Centrica PLC(1) 4,499,991 20,378,904
ChevronTexaco Corp. 450,000 23,629,500
Kerr-McGee Corp. 225,000 13,002,750
Statoil ASA(1) 1,000,000 15,789,967
Total SA ADR 525,000 57,666,000
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$ 183,027,121
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PAPER AND FOREST PRODUCTS -- 0.7%
MeadWestvaco Corp. 350,000 $ 11,861,500
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$ 11,861,500
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PHARMACEUTICALS -- 1.1%
GlaxoSmithKline PLC(1) 750,000 $ 17,608,841
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$ 17,608,841
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PRINTING AND BUSINESS PRODUCTS -- 1.1%
Donnelley (R.R.) & Sons Co. 500,000 $ 17,645,000
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$ 17,645,000
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REITS -- 8.8%
AvalonBay Communities, Inc. 250,000 $ 18,825,000
Boston Properties, Inc. 200,000 12,934,000
Developers Diversified Realty Corp. 375,000 16,638,750
General Growth Properties, Inc. 75,000 2,712,000
Liberty Property Trust, Inc. 250,000 10,800,000
Pan Pacific Retail Properties, Inc. 70,000 4,389,000
Public Storage, Inc. 300,000 16,725,000
Rayonier, Inc. 200,000 9,782,000
Shurgard Storage Centers, Inc. 75,000 3,300,750
Simon Property Group, Inc. 300,000 19,401,000
SL Green Realty Corp. 200,000 12,110,000
Sun Communities, Inc. 200,000 $ 8,050,000
Washington REIT 140,800 4,768,896
Weingarten Realty Investors 133,000 5,333,300
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$ 145,769,696
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RETAIL-GENERAL -- 1.8%
May Department Stores Co. (The) 1,000,000 $ 29,400,000
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$ 29,400,000
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RETAIL-SPECIALTY AND APPAREL -- 0.7%
Limited, Inc. (The) 500,000 $ 11,510,000
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$ 11,510,000
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TOBACCO -- 3.1%
Altria Group, Inc. 850,000 $ 51,935,000
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$ 51,935,000
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TRUCKS AND PARTS -- 0.7%
Paccar, Inc. 150,000 $ 12,072,000
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$ 12,072,000
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UTILITIES-ELECTRICAL AND GAS -- 27.4%
Ameren Corp. 268,000 $ 13,437,520
American Electric Power Co., Inc. 450,000 15,453,000
Dominion Resources, Inc. 650,000 44,031,000
DTE Energy Co. 645,800 27,853,354
E.ON AG(1) 500,000 45,448,888
Edison International 650,000 20,819,500
Enel SPA(1) 4,804,200 47,226,087
Entergy Corp. 600,000 40,554,000
Exelon Corp. 660,000 29,086,200
FPL Group, Inc. 350,000 26,162,500
National Grid Transco PLC(1) 5,000,000 47,612,224
RWE AG(1) 650,000 35,980,725
Scottish and Southern Energy PLC(1) 1,500,000 25,067,067
Scottish Power PLC(1) 2,300,000 17,785,101
Southern Co. (The) 500,000 16,760,000
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$ 453,277,166
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See notes to financial statements
6
SECURITY SHARES VALUE
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WATER UTILITIES -- 4.2%
Kelda Group PLC(1) 515,000 $ 6,246,553
Pennon Group PLC(1) 315,000 6,023,970
United Utilities PLC(1) 2,300,000 27,741,845
Veolia Environment(1) 813,234 29,444,451
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$ 69,456,819
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TOTAL COMMON STOCKS
(IDENTIFIED COST $1,640,754,462) $ 1,894,940,341
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PREFERRED STOCKS -- 26.7%
COMMERCIAL BANKS -- 15.6%
Abbey National Capital Trust I, 8.963%(1)(2)(3) 170,000 $ 23,765,337
Abbey National PLC, 7.375%(1) 395,000 10,684,750
ABN AMRO Capital Funding Trust VII, 6.08%(1) 505,000 12,670,450
Banco Santander, 6.41%(1)(4) 908,600 23,260,160
Barclays Bank PLC, 8.55%(1)(2)(3)(4) 218,600 26,734,758
BNP Paribas Capital Trust, 9.003%(1)(2)(3)(4) 150,000 18,505,890
CA Preferred Fund Trust II, 7.00%(1)(2) 50,000 5,295,795
CA Preferred Fund Trust, 7.00%(1)(2) 250,000 26,361,025
Den Norske Bank, 7.729%(1)(2)(4) 50,000 5,797,100
HSBC Capital Funding LP, 9.547%(1)(2)(3)(4) 210,000 26,191,977
Lloyds TSB Bank PLC, 6.90%(1)(2) 220,000 23,253,142
Nordbanken AB, 8.95%(1)(2)(3)(4) 15,700 1,880,471
Royal Bank of Scotland Group PLC, 9.118%(1)(2) 235,750 29,289,108
UBS Preferred Funding Trust I, 8.622%(1)(2) 150,000 18,374,565
UBS Preferred Funding Trust III, 7.25%(1) 253,500 6,664,515
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$ 258,729,043
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FINANCIAL SERVICES -- 3.3%
BBVA Preferred Capital Ltd., 7.75%(1) 372,500 $ 9,848,900
Lehman Brothers Holdings, Inc., 6.50% 801,800 21,760,852
Prudential PLC, 6.50%(1)(2) 230,000 23,176,042
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$ 54,785,794
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FOOD PRODUCTS -- 1.4%
Dairy Farmers of America, 7.875%(4) 222,480 $ 23,221,350
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$ 23,221,350
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INSURANCE -- 5.4%
Ace Ltd., 7.80%(1) 280,700 $ 7,489,076
AXA, 7.10%(1)(2) 225,000 23,777,280
ING Capital Funding Trust III, 8.439%(1)(2) 170,000 20,379,158
ING Groep NV, 7.05%(1) 222,300 5,979,870
ING Groep NV, 7.20%(1) 330,000 8,966,100
RenaissanceRe Holdings Ltd., 6.08%(1) 441,000 10,526,670
Zurich Regcaps Fund Trust VI(1)(3)(4) 12,500 11,812,500
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$ 88,930,654
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UTILITIES-ELECTRICAL AND GAS -- 1.0%
Duquesne Light, 6.50% 325,000 $ 17,062,500
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$ 17,062,500
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TOTAL PREFERRED STOCKS
(IDENTIFIED COST $438,761,612) $ 442,729,341
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COMMERCIAL PAPER -- 2.9%
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
--------------------------------------------------------------------------------------------------
Ranger Funding Co., LLC, 2.15%, 1/3/05 $ 22,982 $ 22,979,255
Societe Generale North America, 2.32%, 1/5/05 24,940 24,933,571
--------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(AT AMORTIZED COST, $47,912,826) $ 47,912,826
--------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 144.2%
(IDENTIFIED COST $2,127,428,900) $ 2,385,582,508
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OTHER ASSETS, LESS LIABILITIES -- 1.2% $ 18,234,493
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AUCTION PREFERRED SHARES PLUS
CUMULATIVE UNPAID
DIVIDENDS -- (45.4)% $ (750,002,462)
--------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 1,653,814,539
--------------------------------------------------------------------------------------------------
ADR - American Depositary Receipt
(1) Foreign security.
(2) Security valued at fair value using methods determined in good faith by or
at the direction of the Trustees.
(3) Variable rate security. The stated interest rate represents the interest
rate in effect at December 31, 2004.
(4) 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 December 31,
2004, the aggregate value of the securities is $137,404,206 or 8.3% Of the
Fund's net assets.
See notes to financial statements
7
COUNTRY CONCENTRATION OF PORTFOLIO
PERCENTAGE OF
COUNTRY TOTAL INVESTMENTS VALUE
-----------------------------------------------------------------------------------------------------
United States 49.9% $ 1,191,034,977
United Kingdom 19.8 473,142,179
France 9.3 221,324,369
Canada 5.2 123,854,161
Germany 3.4 81,429,613
Bermuda 2.5 58,527,246
Netherlands 2.0 47,995,578
Italy 2.0 47,226,087
Switzerland 1.5 36,851,580
Spain 1.4 33,109,060
Jersey, C.I 1.1 26,191,977
Norway 0.9 21,587,067
Australia 0.5 11,546,847
Mexico 0.3 7,664,000
New Zealand 0.1 2,217,296
Sweden 0.1 1,880,471
-----------------------------------------------------------------------------------------------------
100.0% $ 2,385,582,580
See notes to financial statements
8
EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND INCOME FUND as of December 31, 2004
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2004
ASSETS
Investments, at value (identified cost, $2,127,428,900) $ 2,385,582,508
Cash 223,775
Foreign currency, at value (cost $3,097,961) 3,117,870
Receivable for investments sold 19,677,895
Receivable from the Investment Adviser 7,500
Dividends receivable 12,431,235
Prepaid expenses 357,996
Tax reclaim receivable 353,500
-----------------------------------------------------------------------------------------
TOTAL ASSETS $ 2,421,752,279
-----------------------------------------------------------------------------------------
LIABILITIES
Dividends payable $ 17,159,743
Payable to affiliate for Trustees' fees 14,882
Accrued expenses 760,653
-----------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 17,935,278
-----------------------------------------------------------------------------------------
AUCTION PREFERRED SHARES (30,000 SHARES OUTSTANDING) AT
LIQUIDATION VALUE PLUS CUMULATIVE UNPAID DIVIDENDS $ 750,002,462
-----------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES $ 1,653,814,539
-----------------------------------------------------------------------------------------
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) (55,854,731)
Accumulated undistributed net investment income 3,589,134
Net unrealized appreciation (computed on the basis of identified cost) 258,372,618
-----------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES $ 1,653,814,539
-----------------------------------------------------------------------------------------
NET ASSET VALUE PER COMMON SHARE
($1,653,814,539 DIVIDED BY 76,265,527 COMMON SHARES ISSUED
AND OUTSTANDING) $ 21.68
-----------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED
DECEMBER 31, 2004(1)
INVESTMENT INCOME
Dividends (net of foreign taxes, $7,089,731) $ 129,575,723
Interest 1,413,493
-----------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 130,989,216
-----------------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 16,061,162
Trustees' fees and expenses 24,938
Preferred shares remarketing agent fee 1,232,582
Custodian fee 617,133
Legal and accounting services 126,375
Printing and postage 70,770
Transfer and dividend disbursing agent fees 56,275
Organization expenses 7,500
Miscellaneous 276,872
-----------------------------------------------------------------------------------------
TOTAL EXPENSES $ 18,473,607
-----------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 705
Expense reimbursement 7,500
Reduction of investment adviser fee 3,852,426
-----------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 3,860,631
-----------------------------------------------------------------------------------------
NET EXPENSES $ 14,612,976
-----------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 116,376,240
-----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss)--
Investment transactions (identified cost basis) $ (55,854,731)
Foreign currency and forward foreign currency
exchange contract transactions (1,036,069)
-----------------------------------------------------------------------------------------
NET REALIZED LOSS $ (56,890,800)
-----------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation)--
Investments (identified cost basis) $ 258,153,608
Foreign currency and forward foreign currency exchange contracts 219,010
-----------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 258,372,618
-----------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 201,481,818
-----------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM INCOME $ (9,177,442)
-----------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 308,680,616
(1) For the period from the start of business, January 30, 2004, to December
31, 2004.
See notes to financial statements
9
STATEMENT OF CHANGES IN NET ASSETS
PERIOD ENDED
DECEMBER 31, 2004(1)
-----------------------------------------------------------------------------------------------
INCREASE (DECREASE)
IN NET ASSETS
From operations --
Net investment income $ 116,376,240
Net realized loss from investments,
foreign currency and forward foreign currency
exchange contract transactions (56,890,800)
Net change in unrealized appreciation (depreciation) from investments,
foreign currency and forward foreign currency exchange contracts 258,372,618
Distributions to preferred shareholders from net investment income (9,177,442)
-----------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 308,680,616
-----------------------------------------------------------------------------------------------
Distributions to common shareholders --
From net investment income $ (102,573,595)
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (102,573,595)
-----------------------------------------------------------------------------------------------
Capital share transactions --
Proceeds from sale of common shares $ 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 $ 1,653,714,539
-----------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES
At beginning of period $ 100,000
-----------------------------------------------------------------------------------------------
AT END OF PERIOD $ 1,653,814,539
-----------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED NET
INVESTMENT INCOME INCLUDED IN NET
ASSETS APPLICABLE TO COMMON SHARES
-----------------------------------------------------------------------------------------------
AT END OF PERIOD $ 3,589,134
-----------------------------------------------------------------------------------------------
(1) For the period from the start of business, January 30, 2004, to December
31, 2004.
See notes to financial statements
10
FINANCIAL HIGHLIGHTS
Selected data for a common share outstanding during the periods stated
PERIOD ENDED
DECEMBER 31, 2004(1)(2)
-----------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period (Common shares)(3) $ 19.100
----------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 1.544
Net realized and unrealized gain 2.622
Distribution to preferred shareholders from net investment income (0.122)
----------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 4.044
----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income $ (1.345)
----------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (1.345)
----------------------------------------------------------------------------------------------------------
PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ (0.020)
----------------------------------------------------------------------------------------------------------
PREFERRED SHARES UNDERWRITING DISCOUNTS $ (0.099)
----------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $ 21.680
----------------------------------------------------------------------------------------------------------
MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 19.790
----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN ON NET ASSET VALUE(4) 20.63%
----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN ON MARKET VALUE(4) 10.11%
----------------------------------------------------------------------------------------------------------
See notes to financial statements
11
PERIOD ENDED
DECEMBER 31, 2004(1)(2)
-----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+ ++
Net assets applicable to common shares, end of period (000's omitted) $ 1,653,815
Ratios (As a percentage of average net assets applicable to common shares):
Net expenses(5) 1.08%(6)
Net expenses after custodian fee reduction(5) 1.08%(6)
Net investment income(5) 8.63%(6)
Portfolio Turnover 124%
-----------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund reflect reductions of the investment adviser
fee. Had such actions not been taken, the ratios and net investment income per
share would have been as follows:
Ratios (As a percentage of average net assets applicable to common shares):
Expenses(5) 1.37%(6)
Expenses after custodian fee reduction(5) 1.37%(6)
Net investment income(5) 8.34%(6)
Net investment income per share $ 1.492
-----------------------------------------------------------------------------------------------------------------
++ 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 0.77%(6)
Net investment income 6.16%(6)
-----------------------------------------------------------------------------------------------------------------
+++ The operating expenses of the Fund reflect reductions of the investment
adviser fee. Had such actions not been taken, the ratios would have been as
follows:
Ratios (As a percentage of average total net assets):
Expenses 0.98%(6)
Expenses after custodian fee reduction 0.98%(6)
Net investment income 5.95%(6)
-----------------------------------------------------------------------------------------------------------------
Senior Securities:
Total preferred shares outstanding 30,000
Asset coverage per preferred share(7) $ 80,127
Involuntary liquidation preference per preferred share(7) $ 25,000
Approximate market value per preferred share(8) $ 25,000
-----------------------------------------------------------------------------------------------------------------
(1) For the period from the start of business, January 30, 2004, to December
31, 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
asset 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. The returns
do not include dividends declared in December 2004 and payable in 2005.
(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
12
EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND INCOME FUND as of December 31, 2004
NOTES TO FINANCIAL STATEMENTS
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
consisting primarily of tax-advantaged dividend income and capital
appreciation. 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 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 or, in the case of
preferred equity securities that are not listed or traded in the
over-the-counter market, by an independent pricing service. The value of
preferred equity securities that are valued by a pricing service on a bond
basis will be adjusted by an income factor, to be determined by the
investment adviser, to reflect the next anticipated regular dividend.
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. 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. Foreign securities and currencies are valued
in U.S. dollars, based on foreign currency exchange rate quotations supplied
by an independent quotation 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. When
valuing foreign equity securities that meet certain criteria, the Trustees
have approved the use of a fair value service that values such securities to
reflect market trading that occurs after the close of the applicable foreign
markets of comparable securities or other instruments that have a strong
correlation to the securities held by the Fund. 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. At December 31, 2004, the Fund, for
federal income tax purposes, had a capital loss carryover of $55,381,517,
which will reduce the Fund's taxable income arising from future net realized
gain on investments, if any, to the extent permitted by the Code, and thus
will reduce the amount of the distributions to shareholders which would
otherwise be necessary to relieve the Fund of any liability for federal
income tax. Such capital loss carryover will expire on December 31, 2012.
D OFFERING COSTS -- Costs incurred by the Fund in connection with the
offering of the common shares and preferred 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
13
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.
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 on January
30, 2004 to December 31, 2004, $705 credit balances were used to reduce the
Fund's custodian fee.
14
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 and Series B, approximately
monthly for Series E, approximately semi-annually for Series F, and annually
for Series C, Series D, and Series G. The reset period for Series C and
Series D was changed after the initial public offering for each such series.
Dividends are generally paid on the day following the end of the dividend
period for Series A, Series B, and Series E. Series C, Series D, 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 December 31, 2004 are as indicated below:
SERIES DIVIDEND RATE RANGES
-----------------------------------------------------
Series A 1.08% - 2.50%
Series B 1.089% - 2.50%
Series C 1.10% - 2.37%
Series D 1.15% - 2.595%
Series E 1.15% - 2.54%
Series F 1.25% - 2.34%
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 1940 Act. 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 Fund intends to distribute net capital
gain, if any. Distributions are recorded on the ex-dividend date. The
applicable dividend rates for APS on December 31, 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:
APS DIVIDEND DIVIDENDS PAID TO AVERAGE APS
RATES AS OF PREFERRED SHAREHOLDERS DIVIDEND RATES
DECEMBER 31, FOR THE PERIOD ENDED FOR THE PERIOD ENDED
SERIES 2004 DECEMBER 31, 2004(1) DECEMBER 31, 2004(1)
-----------------------------------------------------------------------------------------------
Series A 2.500% $ 1,222,649 1.695%
Series B 2.450% $ 1,211,326 1.679%
Series C 2.370% $ 1,326,043 1.838%
Series D 2.595% $ 1,333,818 1.849%
Series E 2.540% $ 1,237,918 1.716%
Series F 2.340% $ 1,140,740 1.581%
Series G 1.550% $ 1,704,948 1.576%
(1) For the period from the commencement of offering, April 12, 2004, to
December 31, 2004.
The Fund distinguishes between distributions on a tax basis and a financial
reporting basis. Accounting principles generally accepted in the United
States of America require that only distributions in excess of tax basis
earnings and profits be reported in the financial statements as a return of
capital.
The tax character of the distributions declared for the year ended December
31, 2004 was as follows:
DISTRIBUTIONS DECLARED FROM:
-----------------------------------------------------------------
Ordinary income $ 111,751,037
During the year ended December 31, 2004, accumulated undistributed net
investment income was decreased by $1,036,069, and accumulated net realized
loss was
15
decreased by $1,036,069 primarily due to differences between book and tax
treatment of foreign currency gains and losses. This change had no effect on
the net assets or the net asset value per share.
As of December 31, 2004, the components of distributable earnings
(accumulated losses) on a tax basis were as follows:
Undistributed income $ 20,748,877
Capital loss carryforwards $ 55,381,517
Unrealized gain $ 257,899,404
Other temporary differences $ (17,159,743)
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 December 31,
2004, the advisory fee amounted to $16,061,162. EVM serves as the
administrator of the Fund, but currently receives no compensation for
providing administrative services to the Fund.
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 on January 30, 2004 to December 31,
2004 the Investment Adviser waived $3,780,567 of its advisory fee. The
Advisor has also agreed to reduce the investment adviser fee by an amount
equal to that portion of commissions paid to broker dealers in execution of
Fund portfolio transactions that is consideration for third-party research
services. For the period from May 1, 2004 to December 31, 2004, the
Investment Adviser waived $71,859 of its advisory fee.
EVM has agreed to reimburse the Fund for costs incurred in the Fund's
organization. For the period from the start of business, January 30, 2004, to
December 31, 2004, EVM reimbursed the Fund $7,500 in organization expenses.
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 December 31, 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 $4,498,945,413 and $2,363,577,188, respectively, for the period
from the start of business, January 30, 2004, to December 31, 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 December 31, 2004, as computed on a federal income tax
basis, were as follows:
AGGREGATE COST $ 2,127,902,114
-----------------------------------------------------------------
Gross unrealized appreciation $ 263,242,108
Gross unrealized depreciation (5,561,714)
-----------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 257,680,394
-----------------------------------------------------------------
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
DECEMBER 31, 2004(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 December
31, 2004.
8 RISKS ASSOCIATED WITH FOREIGN INVESTMENTS
Investing in securities issued by companies whose principal business
activities are outside the United States may involve significant risks not
present in domestic investments. For example, there is generally less
publicly available information about foreign companies, particularly those
not subject to the disclosure and reporting
16
requirements of the U.S. securities laws. Foreign issuers are generally not
bound by uniform accounting, auditing, and financial reporting requirements
and standards of practice comparable to those applicable to domestic issuers.
Investments in foreign securities also involve the risk of possible adverse
changes in investment or exchange control regulations, expropriation or
confiscatory taxation, limitation on the removal of funds or other assets of
the Fund, political or financial instability or diplomatic and other
developments which could affect such investments. Foreign stock markets,
while growing in volume and sophistication, are generally not as developed as
those in the United States, and securities of some foreign issuers
(particularly those in developing countries) may be less liquid and more
volatile than securities of comparable U.S. companies. In general, there is
less overall governmental supervision and regulation of foreign securities
markets, broker-dealers, and issuers than in the United States.
9 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 December 31, 2004.
10 ANNUAL MEETING OF SHAREHOLDERS (UNAUDITED)
The Fund held its Annual Meeting of Shareholders on October 29, 2004. The
following action was taken by the shareholders:
ITEM 1: The election of Lynn Stout and Samuel L. Hayes, III as Trustees of
the Fund for a three-year term expiring in 2007. Mr. Hayes was
designated the Nominee to be elected solely by APS shareholders:
NUMBER OF SHARES
NOMINEE FOR TUSTEE -------------------------------
ELECTED BY ALL SHAREHOLDERS FOR WITHHELD
-------------------------------------------------------------------
Lynn Stout 66,430,055 503,572
NUMBER OF SHARES
NOMINEE FOR TUSTEE -------------------------------
ELECTED BY APS SHAREHOLDERS FOR WITHHELD
-------------------------------------------------------------------
Samuel L. Hayes, III 22,587 82
17
EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND INCOME FUND as of December 31, 2004
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE TRUSTEES AND SHAREHOLDERS OF EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND
INCOME FUND:
We have audited the accompanying statement of assets and liabilities of Eaton
Vance Tax-Advantaged Global Dividend Income Fund (the "Fund") including the
portfolio of investments as of December 31, 2004, and the related statements of
operations, changes in net assets, and the financial highlights for the period
from January 30, 2004 (commencement of operations), to December 31, 2004. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of December 31, 2004, by correspondence with the
custodian and brokers; where replies were not received from brokers, we
performed other auditing procedures. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights present
fairly, in all material respects, the financial position of the Eaton Vance
Tax-Advantaged Global Dividend Income Fund at December 31, 2004, the results of
its operations, the changes in its net assets and the financial highlights from
the period January 30, 2004 (commencement of operations), to December 31, 2004,
in conformity with accounting principles generally accepted in the United States
of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 18, 2005
18
EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND INCOME FUND as of December 31, 2004
FEDERAL TAX INFORMATION (UNAUDITED)
The Form 1099-DIV you received in January 2005 will show the tax status of all
distributions paid to your account in calendar 2004. 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 regulations,
shareholders must be notified within 60 days of the Fund's fiscal year end
regarding the status of qualified dividend income for individuals and the
dividends received deduction for corporations.
QUALIFIED DIVIDEND INCOME. The Fund designates approximately $116,635,605, 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 2004 ordinary
income dividends, 45.0% qualifies for the corporate dividends received
deduction.
19
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 a 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 broker age
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 inquires regarding the Plan can be directed to the Plan Agent, PFPC, Inc.,
at 1-800-331-1710.
20
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 December 31, 2004, our records indicate that there are 64 registered
shareholders and approximately 62,800 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
21
EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND INCOME FUND
MANAGEMENT AND ORGANIZATION
FUND MANAGEMENT. The Trustees of Eaton Vance Tax-Advantaged Global Dividend
Income Fund (the Fund) are responsible for the overall management and
supervision of the Fund's affairs. The Trustees and officers of the Fund 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 Fund hold indefinite terms of office. The "noninterested Trustees"
consist of those Trustees who are not "interested persons" of the Fund, as that
term is defined under the 1940 Act. The business address of each Trustee and
officer is The Eaton Vance Building, 255 State Street, Boston, Massachusetts
02109. As used below, "EVC" refers to Eaton Vance Corp., "EV" refers to Eaton
Vance, Inc., "EVM" refers to Eaton Vance Management, "BMR" refers to Boston
Management and Research and "EVD" refers to Eaton Vance Distributors, Inc. EVC
and EV are the corporate parent and trustee, respectively, of EVM and BMR. EVD
is the Fund's principal underwriter and a wholly-owned subsidiary of EVM.
TERM OF NUMBER OF PORTFOLIOS
POSITION(S) OFFICE AND IN FUND COMPLEX OTHER
NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS
DATE OF BIRTH FUND SERVICE DURING PAST FIVE YEARS TRUSTEE(1) HELD
--------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE
James B. Hawkes Trustee and Until 2005. 3 Chairman, President and 195 Director of EVC
11/9/41 Vice President years. Trustee Chief Executive Officer
since 2003 of BMR, EVC, EVM and EV;
Director of EV; Vice
President and Director
of EVD. Trustee and/or
officer of 195
registered investment
companies in the Eaton
Vance Fund Complex.
Mr. Hawkes is an
interested person
because of his positions
with BMR, EVM, EVC and
EV, which are affiliates
of the Fund.
NONINTERESTED TRUSTEE(S)
Samuel L. Hayes, III Chairman of the Until 2007. 3 Jacob H. Schiff 195 Director of
2/23/35 Board and Trustee years. Professor of Investment Tiffany & Co.
Trustee since Banking (specialty
2003 and Emeritus, Harvard retailer)
Chairman of the University Graduate and Director of
Board since 2005 School of Business Telect, Inc.
Administration. telecommunication
(services company)
William H. Park Trustee Until 2005. 3 President and Chief 195 None
9/19/47 years. Executive Officer, Prizm
Trustee since Capital Management, LLC
2003 (investment management
firm) (since 2002).
Executive Vice President
and Chief Financial
Officer, United Asset
Management Corporation
(a holding company
owning institutional
investment management
firms) (1982-2001).
Ronald A. Pearlman Trustee Until 2006. 3 Professor of Law, 195 None
7/10/40 years. Georgetown University
Trustee since Law Center (since 1999).
2003 Tax Partner, Covington &
Burling, Washington, DC
(1991-2000).
Norton H. Reamer Trustee Until 2006. 3 President, Chief 195 None
9/21/35 years. Executive Officer and a
Trustee since Director of Asset
2003 Management Finance Corp.
(a specialty finance
company serving the
investment management
industry) (since
October 2003).
President, Unicorn
Corporation (an
investment and financial
advisory services
company) (since
September 2000).
Formerly, Chairman and
Chief Operating Officer,
Hellman, Jordan
Management Co., Inc. (an
investment management
company) (2000-2003).
Formerly, Advisory
Director of Berkshire
Capital Corporation
(investment banking
firm) (2002-2003).
Formerly, Chairman of
the Board, United Asset
Management Corporation
(a holding company
owning institutional
investment management
firms) and Chairman,
President and Director,
UAM Funds (mutual funds)
(1980-2000).
Lynn A. Stout Trustee Until 2007. 3 Professor of Law, 195 None
9/14/57 years. University of California
Trustee since at Los Angeles School of
2003 Law (since July 2001).
Formerly, Professor of
Law, Georgetown
University Law Center.
22
Principal Officers who are not Trustees
TERM OF
POSITION(S) OFFICE AND
NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S)
DATE OF BIRTH FUND SERVICE DURING PAST FIVE YEARS
---------------------------------------------------------------------------------------------------------------
Duncan W. Richardson President Since 2003 Senior Vice President and Chief
10/26/57 Equity Investment Officer of EVM and
BMR. Officer of 46 registered
investment companies managed by EVM
or BMR.
Thomas E. Faust Jr. Vice President Since 2003 Executive Vice President of EVM,
5/31/58 BMR, EVC and EV; Chief Investment
Officer of EVM and BMR and Director
of EVC. Chief Executive Officer of
Belair Capital Fund LLC, Belcrest
Capital Fund LLC, Belmar Capital
Fund LLC, Belport Capital Fund LLC
and Belrose Capital Fund LLC
(private investment companies
sponsored by EVM). Officer of 59
registered investment companies
managed by EVM or BMR.
Thomas H. Luster Vice President Since 2003 Vice President of EVM and BMR.
4/8/62 Officer of 16 registered investment
companies managed by EVM or BMR.
Michael R. Mach Vice President Since 2003 Vice President of EVM and BMR.
7/15/47 Officer of 29 registered investment
companies managed by EVM or BMR.
Judith A. Saryan Vice President Since 2003 Vice President of EVM and BMR.
8/21/54 Officer of 28 registered investment
companies managed by EVM or BMR.
Alan R. Dynner Secretary Since 2003 Vice President, Secretary and Chief
10/10/40 Legal Officer of BMR, EVM, EVD, EV
and EVC. Officer of 195 registered
investment companies managed by EVM
or BMR.
James L. O'Connor Treasurer Since 2003 Vice President of BMR, EVM and EVD.
4/1/45 Officer of 117 registered investment
companies managed by EVM or BMR.
Paul M. O'Neil Chief Since 2003 Vice President of EVM and BMR.
7/11/53 Compliance Officer Officer of 195 registered investment
companies managed by EVM or BMR.
(1) Includes both master and feeder funds in a master-feeder structure.
The SAI for the Fund includes additional information about the Trustees and
officers of the Fund and can be obtained without charge by calling
1-800-225-6265.
In accordance with Section 303A.12 (a) of the New York Stock Exchange Listed
Company Manual, the Fund's Annual CEO Certification certifying as to compliance
with NYSE's Corporate Governance Listing Standards was submitted to the Exchange
on October 29, 2004.
23
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 REGISTERED PUBLIC ACCOUNTING FIRM
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
2051-2/05 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 (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
(a)-(d)
The following table presents aggregate fees billed to the registrant for its
first fiscal year ended December 31, 2004 by the registrant's principal
accountant for professional services rendered for the audit of the registrant's
annual financial statements and fees billed for other services rendered by the
principal accountant during such period.
The Registrant commenced operations on January 30, 2004. The following table
presents the aggregate fees billed to the Registrant for the Registrant's first
fiscal year ended December 31, 2004 by the Registrant's principal accountant for
professional services rendered for the audit of the Registrant's annual
financial statements and fees billed for other services rendered by the
principal accountant during such period.
FISCAL YEARS ENDED 12/31/04*
---------------------------------------------------------
Audit Fees $ 70,762
Audit-Related Fees(1) $ 4,950
Tax Fees(2) $ 8,000
All Other Fees(3) $ 0
---------
Total $ 83,712
=========
(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 and specifically include fees for the performance of certain
agreed-upon procedures relating to the registrant's auction preferred shares.
(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.
(3) All other fees consist of the aggregate fees billed for products and
services provided by the registrant's principal accountant other than audit,
audit-related, and tax services.
* The Registrant commenced operations on January 30, 2004.
(e)(1) The registrant's audit committee has adopted policies and procedures
relating to the pre-approval of services provided by the registrant's principal
accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a
framework intended to assist the audit committee in the proper discharge of its
pre-approval responsibilities. As a general matter, the Pre-Approval Policies
(i) specify certain types of audit, audit-related, tax, and other services
determined to be pre-approved by the audit committee; and (ii) delineate
specific procedures governing the mechanics of the pre-approval process,
including the approval and monitoring of audit and non-audit service fees.
Unless a service is specifically pre-approved under the Pre-Approval Policies,
it must be separately pre-approved by the audit committee.
The Pre-Approval Policies and the types of audit and non-audit services
pre-approved therein must be reviewed and ratified by the registrant's audit
committee at least annually. The registrant's audit committee maintains full
responsibility for the appointment, compensation, and oversight of the work of
the registrant's principal accountant.
(e)(2) No services described in paragraphs (b)-(d) above were approved by the
registrant's audit committee pursuant to the "de minimis exception" set forth in
Rule 2-01 (c)(7)(i)(C) of Regulation S-X.
(f) Not applicable.
(g) The following table presents (i) the aggregate non-audit fees (i.e., fees
for audit-related, tax, and other services) billed to the registrant by the
registrant's principal accountant for the registrant's first fiscal year; and
(ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other
services) billed to the Eaton Vance organization by the registrant's principal
accountant for the same time period.
FISCAL YEAR ENDED 12/31/04*
---------------------------------------------------------
Registrant $ 12,950
Eaton Vance (1) $ 334,713
(1) Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the
registrant's investment adviser and administrator.
* The Registrant commenced operations on January 30, 2004.
(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
The registrant has a separately-designated standing audit committee established
in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of
1934, as amended. Norton H. Reamer (Chair), Samuel L. Hayes, III, William H.
Park and Lynn A. Stout are the members of the registrant's audit committee.
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
The Board of Trustees of the Trust has adopted a proxy voting policy and
procedure (the "Fund Policy"), pursuant to which the Trustees have delegated
proxy voting responsibility to the Fund'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 Fund'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
Fund's shareholders and the investment adviser, the administrator, or any of
their affiliates or any affiliate of the Fund, 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 of the Fund except as
contemplated under the Fund Policy. The Board's 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 Fund's shareholders and the investment adviser,
the administrator, or any of their affiliates or any affiliate of the Fund 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 Fund 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 Fund voted proxies relating to
portfolio securities during the 12 month period ended June 30, 2004 is 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.
No such purchases this period.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Effective February 7, 2005, the Governance Committee of the Board of Trustees
revised the procedures by which a Fund's shareholders may recommend nominees to
the registrant's Board of Trustees to add the following (highlighted):
The Governance Committee shall, when identifying candidates for the position of
Independent Trustee, consider any such candidate recommended by a shareholder of
a Fund if such recommendation contains (i)sufficient background information
concerning the candidate, INCLUDING EVIDENCE THE CANDIDATE IS WILLING TO SERVE
AS AN INDEPENDENT TRUSTEE IF SELECTED FOR THE POSITION; AND (ii) is received in
a sufficiently timely manner (and in any event no later than the date specified
for receipt of shareholder proposals in any applicable proxy statement with
respect to a Fund). Shareholders shall be directed to
address any such recommendations IN WRITING to the attention of the Governance
Committee, c/o the Secretary of the Fund. THE SECRETARY SHALL RETAIN COPIES OF
ANY SHAREHOLDER RECOMMENDATIONS WHICH MEET THE FOREGOING REQUIREMENTS FOR A
PERIOD OF NOT MORE THAN 12 MONTHS FOLLOWING RECEIPT. THE SECRETARY SHALL HAVE NO
OBLIGATION TO ACKNOWLEDGE RECEIPT OF ANY SHAREHOLDER RECOMMENDATIONS
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 second fiscal quarter of 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
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Duncan Richardson
President
Date: February 16, 2005
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: February 16, 2005
By: /S/ Duncan Richardson
----------------------------
Duncan Richardson
President
Date: February 16, 2005