Edgar Filing: Eaton Vance Enhanced Equity Income Fund

Eaton Vance Enhanced Equity Income Fund

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-21614

Investment Company Act File Number

Eaton Vance Enhanced Equity Income Fund

(Exact Name of Registrant as Specified in Charter)

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

Maureen A. Gemma

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

(617) 482-8260

(Registrant’s Telephone Number, Including Area Code)

September 30

Date of Fiscal Year End

June 30, 2017

Date of Reporting Period

Item 1. Schedule of Investments

Eaton Vance

Enhanced Equity Income Fund

June 30, 2017

PORTFOLIO OF INVESTMENTS (Unaudited)

Common Stocks — 99.6%⁽¹⁾


Security	Shares		Value
Air Freight & Logistics — 4.0%
C.H. Robinson Worldwide, Inc.		142,637	$	9,796,309
FedEx Corp.		57,228		12,437,361

			$	22,233,670

Auto Components — 1.6%
Delphi Automotive PLC		104,179	$	9,131,289

			$	9,131,289

Banks — 6.8%
JPMorgan Chase & Co.		211,947	$	19,371,956
PNC Financial Services Group, Inc. (The)		83,560		10,434,137
Wells Fargo & Co.		146,523		8,118,839

			$	37,924,932

Beverages — 1.4%
Constellation Brands, Inc., Class A		39,414	$	7,635,674

			$	7,635,674

Biotechnology — 2.4%
Celgene Corp.⁽²⁾		103,776	$	13,477,389

			$	13,477,389

Capital Markets — 3.3%
Charles Schwab Corp. (The)		212,726	$	9,138,709
Goldman Sachs Group, Inc. (The)		41,993		9,318,247

			$	18,456,956

Containers & Packaging — 2.6%
International Paper Co.		176,100	$	9,969,021
Sealed Air Corp.		101,416		4,539,380

			$	14,508,401

Diversified Telecommunication Services — 2.8%
AT&T, Inc.		241,004	$	9,093,081
Zayo Group Holdings, Inc.⁽²⁾		219,041		6,768,367

			$	15,861,448

Electric Utilities — 1.7%
NextEra Energy, Inc.		69,099	$	9,682,843

			$	9,682,843

Energy Equipment & Services — 0.8%
Oceaneering International, Inc.		184,354	$	4,210,645

			$	4,210,645

Equity Real Estate Investment Trusts (REITs) — 2.4%
Equity Residential		93,460	$	6,152,472
Simon Property Group, Inc.		43,225		6,992,076

			$	13,144,548


Security	Shares		Value
Food Products — 1.3%
Mondelez International, Inc., Class A		164,055	$	7,085,535

			$	7,085,535

Health Care Equipment & Supplies — 4.3%
Danaher Corp.		151,776	$	12,808,377
Zimmer Biomet Holdings, Inc.		88,055		11,306,262

			$	24,114,639

Household Durables — 2.5%
Newell Brands, Inc.		145,493	$	7,801,335
Whirlpool Corp.		32,952		6,314,262

			$	14,115,597

Household Products — 1.3%
Colgate-Palmolive Co.		98,587	$	7,308,254

			$	7,308,254

Industrial Conglomerates — 1.0%
General Electric Co.		200,098	$	5,404,647

			$	5,404,647

Insurance — 3.6%
American Financial Group, Inc.		91,769	$	9,119,086
Chubb, Ltd.		74,422		10,819,470

			$	19,938,556

Internet & Direct Marketing Retail — 2.9%
Amazon.com, Inc.⁽²⁾		16,796	$	16,258,528

			$	16,258,528

Internet Software & Services — 7.8%
Akamai Technologies, Inc.⁽²⁾		91,766	$	4,570,864
Alphabet, Inc., Class C⁽²⁾		24,804		22,540,139
eBay, Inc.⁽²⁾		187,212		6,537,443
GoDaddy, Inc., Class A⁽²⁾		230,806		9,790,791

			$	43,439,237

IT Services — 2.9%
Visa, Inc., Class A		175,905	$	16,496,371

			$	16,496,371

Machinery — 4.1%
Caterpillar, Inc.		98,145	$	10,546,662
Fortive Corp.		199,830		12,659,230

			$	23,205,892

Multi-Utilities — 1.7%
Sempra Energy		84,896	$	9,572,024

			$	9,572,024

Oil, Gas & Consumable Fuels — 5.2%
Chevron Corp.		103,514	$	10,799,616
ConocoPhillips		150,542		6,617,826
EOG Resources, Inc.		74,422		6,736,679
Phillips 66		58,064		4,801,312

			$	28,955,433


Security	Shares		Value
Personal Products — 3.1%
Estee Lauder Cos., Inc. (The), Class A		105,886	$	10,162,938
Unilever NV		125,206		6,911,591

			$	17,074,529

Pharmaceuticals — 7.1%
Eli Lilly & Co.		150,986	$	12,426,148
Johnson & Johnson		149,647		19,796,802
Zoetis, Inc.		118,054		7,364,208

			$	39,587,158

Road & Rail — 2.1%
CSX Corp.		217,339	$	11,858,016

			$	11,858,016

Semiconductors & Semiconductor Equipment — 3.0%
Intel Corp.		325,202	$	10,972,316
NXP Semiconductors NV⁽²⁾		54,236		5,936,130

			$	16,908,446

Software — 4.1%
Microsoft Corp.		332,838	$	22,942,523

			$	22,942,523

Specialty Retail — 2.9%
Home Depot, Inc. (The)		106,524	$	16,340,782

			$	16,340,782

Technology Hardware, Storage & Peripherals — 4.3%
Apple, Inc.		168,496	$	24,266,794

			$	24,266,794

Textiles, Apparel & Luxury Goods — 2.1%
Lululemon Athletica, Inc.⁽²⁾		51,210	$	3,055,701
NIKE, Inc., Class B		147,249		8,687,691

			$	11,743,392

Tobacco — 2.5%
Altria Group, Inc.		187,214	$	13,941,827

			$	13,941,827


Total Common Stocks (identified cost $429,556,749)			$	556,825,975


Short-Term Investments — 0.8%

Description	Units		Value
Eaton Vance Cash Reserves Fund, LLC, 1.20%⁽³⁾		4,384,069	$	4,384,946


Total Short-Term Investments (identified cost $4,384,946)			$	4,384,946


Total Investments — 100.4% (identified cost $433,941,695)			$	561,210,921


Covered Call Options Written — (0.4)%

Exchange-Traded Options — (0.4)%

Security	Number of Contracts		Strike Price		Expiration Date		Value
Akamai Technologies, Inc.		315	$	50.00		7/21/17	$	(33,862	)
Alphabet, Inc., Class C		120		975.00		8/4/17		(114,000	)
Altria Group, Inc.		940		79.50		7/21/17		(3,290	)
Amazon.com, Inc.		80		1,050.00		7/21/17		(8,960	)
American Financial Group, Inc.		460		100.00		7/21/17		(36,800	)
Apple, Inc.		845		160.00		7/21/17		(6,760	)
AT&T, Inc.		1,210		40.00		7/7/17		(605	)
C.H. Robinson Worldwide, Inc.		715		72.50		7/21/17		(39,325	)
Caterpillar, Inc.		490		110.00		7/7/17		(10,290	)
Celgene Corp.		515		140.00		8/18/17		(65,920	)
Charles Schwab Corp. (The)		1,070		44.00		7/21/17		(64,200	)
Chevron Corp.		515		109.00		7/28/17		(20,857	)
Chubb, Ltd.		375		150.00		8/18/17		(31,875	)
ConocoPhillips		755		46.00		7/21/17		(20,385	)
Constellation Brands, Inc., Class A		195		200.00		8/18/17		(58,988	)
CSX Corp.		1,095		57.50		7/21/17		(55,298	)
Danaher Corp.		735		85.00		7/21/17		(77,175	)
Delphi Automotive PLC		525		95.00		7/21/17		(6,562	)
eBay, Inc.		935		37.00		8/4/17		(44,880	)
Eli Lilly & Co.		750		87.50		8/18/17		(27,375	)
EOG Resources, Inc.		375		92.00		7/28/17		(58,125	)
Equity Residential		470		70.00		7/21/17		(1,175	)
Estee Lauder Cos., Inc. (The), Class A		525		97.50		7/21/17		(38,063	)
FedEx Corp.		285		222.50		7/28/17		(63,698	)
Fortive Corp.		1,005		65.00		7/21/17		(52,763	)
General Electric Co.		1,005		29.00		7/21/17		(3,517	)
GoDaddy, Inc., Class A		1,075		45.00		7/21/17		(18,812	)
Goldman Sachs Group, Inc. (The)		205		235.00		8/4/17		(34,953	)
Home Depot, Inc. (The)		530		155.00		7/28/17		(93,545	)
Intel Corp.		1,625		35.50		7/28/17		(38,188	)
International Paper Co.		885		56.00		7/14/17		(101,775	)
Johnson & Johnson		750		135.00		7/21/17		(64,125	)
JPMorgan Chase & Co.		1,055		95.00		8/18/17		(80,180	)
Lululemon Athletica, Inc.		255		62.50		8/18/17		(38,250	)
Microsoft Corp.		1,675		72.50		7/7/17		(1,675	)
Mondelez International, Inc., Class A		820		47.00		8/4/17		(27,060	)
Newell Brands, Inc.		730		57.50		9/15/17		(51,100	)
NextEra Energy, Inc.		345		145.00		8/18/17		(31,912	)
NIKE, Inc., Class B		740		60.00		8/18/17		(93,980	)
Oceaneering International, Inc.		770		30.00		7/21/17		(1,925	)
Phillips 66		290		83.50		7/21/17		(25,375	)
PNC Financial Services Group, Inc. (The)		420		130.00		8/18/17		(60,690	)
Sealed Air Corp.		510		47.00		7/21/17		(5,100	)
Sempra Energy		420		115.00		7/21/17		(15,750	)
Simon Property Group, Inc.		215		165.00		7/21/17		(31,390	)
Visa, Inc., Class A		885		100.00		7/21/17		(11,505	)



Security	Number of Contracts		Strike Price		Expiration Date		Value
Wells Fargo & Co.		735	$	56.00		7/28/17	$	(67,620	)
Whirlpool Corp.		165		195.00		7/7/17		(9,817	)
Zayo Group Holdings, Inc.		1,100		35.00		9/15/17		(41,250	)
Zimmer Biomet Holdings, Inc.		440		130.00		7/21/17		(70,400	)
Zoetis, Inc.		590		62.50		7/21/17		(45,725	)


Total Covered Call Options Written (premiums received $2,919,707)							$	(2,006,850	)


Other Assets, Less Liabilities — (0.0)%⁽⁴⁾							$	(154,301	)


Net Assets — 100.0%							$	559,049,770

The percentage shown for each investment category in the Portfolio of Investments is based on net assets.

(1)	A portion of each applicable common stock for which a written call option is outstanding at June 30, 2017 has been pledged as collateral for such written option.

(2)	Non-income producing security.

(3)

Affiliated investment company, available to Eaton Vance portfolios and funds, which invests in high quality, U.S. dollar denominated money market instruments. The rate shown is the annualized seven-day yield as of June 30, 2017. Net income from the investment in Eaton Vance Cash Reserves Fund, LLC for the fiscal year to date ended June 30, 2017 was $50,620.

(4)	Amount is less than (0.05)%.

Written options activity for the fiscal year to date ended June 30, 2017 was as follows:


	Number of Contracts			Premiums Received
Outstanding, beginning of period		30,711		$	2,334,250
Options written		276,855			20,806,360
Options terminated in closing purchase transactions		(132,061	)		(10,187,131	)
Options expired		(141,970	)		(10,033,772	)

Outstanding, end of period		33,535		$	2,919,707

At June 30, 2017, the Fund had sufficient cash and/or securities to cover commitments under open derivative contracts.

The Fund is subject to equity price risk in the normal course of pursuing its investment objectives. The Fund writes covered call options on individual stocks above the current value of the stock to generate premium income. In writing call options on individual stocks, the Fund in effect, sells potential appreciation in the value of the applicable stock above the exercise price in exchange for the option premium received. The Fund retains the risk of loss, minus the premium received, should the price of the underlying stock decline.

At June 30, 2017, the aggregate fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in a liability position and whose primary underlying risk exposure is equity price risk was $2,006,850.

The cost and unrealized appreciation (depreciation) of investments of the Fund at June 30, 2017, as determined on a federal income tax basis, were as follows:


Aggregate cost	$	435,243,483

Gross unrealized appreciation	$	128,956,346
Gross unrealized depreciation		(2,988,908	)

Net unrealized appreciation	$	125,967,438

Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

•

Level 1 — quoted prices in active markets for identical investments

•

Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

•

Level 3 — significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)

In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

At June 30, 2017, the hierarchy of inputs used in valuing the Fund’s investments and open derivative instruments, which are carried at value, were as follows:


Asset Description	Level 1			Level 2			Level 3		Total
Common Stocks
Consumer Discretionary	$	67,589,588		$	—		$	—	$	67,589,588
Consumer Staples		46,134,228			6,911,591			—		53,045,819
Energy		33,166,078			—			—		33,166,078
Financials		76,320,444			—			—		76,320,444
Health Care		77,179,186			—			—		77,179,186
Industrials		62,702,225			—			—		62,702,225
Information Technology		124,053,371			—			—		124,053,371
Materials		14,508,401			—			—		14,508,401
Real Estate		13,144,548			—			—		13,144,548
Telecommunication Services		15,861,448			—			—		15,861,448
Utilities		19,254,867			—			—		19,254,867
Total Common Stocks	$	549,914,384		$	6,911,591	*	$	—	$	556,825,975
Short-Term Investments	$	—		$	4,384,946		$	—	$	4,384,946
Total Investments	$	549,914,384		$	11,296,537		$	—	$	561,210,921

Liability Description
Covered Call Options Written	$	(2,006,850	)	$	—		$	—	$	(2,006,850	)
Total	$	(2,006,850	)	$	—		$	—	$	(2,006,850	)

*	Includes foreign equity securities whose values were adjusted to reflect market trading of comparable securities or other correlated instruments that occurred after the close of trading in their applicable foreign markets.

The Fund held no investments or other financial instruments as of September 30, 2016 whose fair value was determined using Level 3 inputs. At June 30, 2017, there were no investments transferred between Level 1 and Level 2 during the fiscal year to date then ended.

For information on the Fund’s policy regarding the valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements included in its semiannual or annual report to shareholders.

Item 2. 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 on this Form N-Q 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 on this Form N-Q 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 fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrant’s internal control over financial reporting.

Item 3. Exhibits

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act is attached hereto.

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 Enhanced Equity Income Fund



By:		/s/ Edward J. Perkin
		Edward J. Perkin
		President

Date:		August 24, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.



By:		/s/ Edward J. Perkin
		Edward J. Perkin
		President

Date:		August 24, 2017



By:		/s/ James F. Kirchner
		James F. Kirchner
		Treasurer

Date:		August 24, 2017