Eaton Vance Enhanced Equity Income Fund
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: 811-21614
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
(Registrants Telephone Number)
September 30
Date of Fiscal Year End
September 30, 2011
Date of Reporting Period
Item 1. Reports to Stockholders
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Eaton Vance
Enhanced Equity
Income Fund (EOI)
Annual Report
September 30, 2011
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Managed Distribution
Plan. On March 10, 2009, the Fund received
authorization from the Securities and Exchange Commission to
distribute long-term capital gains to shareholders more
frequently than once per year. In this connection, the Board of
Trustees formally approved the implementation of a Managed
Distribution Plan (MDP) to make monthly cash distributions to
common shareholders, stated in terms of a fixed amount per
common share.
The Fund intends to pay monthly cash distributions equal to
$0.0919 per share. You should not draw any conclusions about the
Funds investment performance from the amount of these
distributions or from the terms of the MDP. The MDP will be
subject to regular periodic review by the Funds Board to
Trustees.
With each distribution, the Fund will issue a notice to
shareholders and an accompanying press which will provide
detailed information required by the Funds exemptive
order. The Funds Board of Trustees may amend or terminate
the MDP at any time without prior notice to Fund shareholders.
However, at this time there are no reasonably foreseeable
circumstances that might cause the termination of the MDP.
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.
Annual Report September 30, 2011
Eaton Vance
Enhanced Equity Income Fund
Table of Contents
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Managements Discussion of Fund Performance |
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2 |
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Performance |
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3 |
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Fund Profile |
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4 |
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Endnotes and Additional Disclosures |
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5 |
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Financial Statements |
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6 |
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Report of Independent Registered Public Accounting Firm |
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19 |
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Federal Tax Information |
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20 |
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Annual Meeting of Shareholders |
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21 |
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Dividend Reinvestment Plan |
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22 |
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Board of Trustees Contract Approval |
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24 |
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Management and Organization |
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27 |
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Important Notices |
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29 |
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Eaton Vance
Enhanced Equity Income Fund
September 30, 2011
Managements Discussion of Fund Performance
Portfolio Managers
Walter A. Row, III, CFA, CMT; Michael A. Allison, CFA
The Fund is a closed-end fund and trades on the New York Stock Exchange (NYSE) under the symbol
EOI. For the 12-month period ending September 30, 2011, the Funds return at net asset value
(NAV) was -4.63%, underperforming the 1.14% performance of the S&P 500 Index1, the
Funds primary benchmark, and the -3.37% return of the CBOE S&P 500 BuyWrite Index1, its
option benchmark. The Funds return at market price was -17.12%. At period end, the Fund was
trading at a 12.29% discount to NAV.
Economic and Market Conditions
U.S. equity markets were especially volatile during the period.
Encouraged early in the period by what appeared to be a quickening pace of economic recovery,
investors drove equities to solid gains. But that momentum began to sputter during the late spring
and summer of 2011, backsliding on ongoing news of the sovereign debt crisis in Europe, stubbornly
high unemployment at home, and rising fiscal and political uncertainty in Washington, D.C.
Pessimism continued through September 2011, with the S&P 500 returning -7.03% in that month alone.
The slowdown prompted the financial markets to shift from a decidedly risk-on to a decidedly
risk-off stance by the close of the period, with risk-associated assets such as stocks, corporate
bonds and commodities selling off, while Treasury bonds and other safe-haven assets rallied.
The volatility was evident in equity market returns during the fiscal year, which were positive,
but in the low single digits. The blue-chip Dow Jones Industrial Average1 rose 3.83% for
the period. The technology-laden NASDAQ Composite Index1 gained 2.96% for the period.
In terms of market capitalization, large-cap stocks had the best performance, as they were less
affected by the volatility than small- and mid-caps. As measured by the Russell 1000
Index1, large-caps returned 0.91% for the fiscal year. Mid-and small-cap stocks were in
negative territory, with the S&P MidCap 400 Index1 posting an annual return of -1.28%
and the Russell 2000 Index1 returning -3.53% for the 12-month period. Growth stocks
outperformed value stocks across all market capitalizations during the year.
Management Discussion
The Fund at NAV underperformed its primary benchmark during the period primarily as a result of
security selection. Energy was the largest detractor, with stocks in the oil and gas industry
underperforming. The materials sector followed, with metals and mining stocks responsible for most
of the sectors decline within the Fund. In the information technology sector, Internet software,
communications equipment and electronics equipment stocks were the primary detractors from the
Funds relative performance. Fund holdings in the consumer discretionary and health care sectors
also lagged similar holdings in the S&P 500 Index.
In contrast, Fund holdings in the financials sector contributed to relative performance because of
the Funds underweighted position in this struggling group. In particular, the Funds relative
performance was helped by a significant underweight in capital markets companies, which suffered
steep losses during the year. Outperformance among the Funds real estate investment trust holdings
also proved beneficial. In the telecommunication services sector, Fund holdings in wireless telecom
stocks outperformed, adding positively to relative returns.
As of September 30, 2011, the Fund had written call options on approximately 50% of its equity
holdings. The Fund seeks to generate current earnings from options premiums by selling covered call
options on a substantial portion of its portfolio securities. Option premiums can vary with
investors expectations of the future volatility (implied volatility) of the portfolios
underlying assets. From the beginning of October 2010 through July 2011, the market was relatively
stable; as a result, the Fund collected premiums on the options, which was generally beneficial.
When the market became highly volatile in August and September 2011, the options acted as a hedge
against the volatility, which contributed positively to the Funds relative performance.
See Endnotes and Additional Disclosures on page 5.
Past performance is no guarantee of future results. Returns are historical and are calculated by
determining the percentage change in net asset value or market price (as applicable) with all
distributions reinvested. Fund performance at market price will differ from its results at NAV due
to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply
and demand for Fund shares, or changes in Fund distributions. Investment return and principal
value will fluctuate so that shares, when sold, may be worth more or less than their original
cost. Performance less than one year is cumulative. Performance is for the stated time period
only; due to market volatility, current Fund performance may be lower or higher than the quoted
return. For performance as of the most recent month end, please refer to
www.eatonvance.com.
2
Eaton Vance
Enhanced Equity Income Fund
September 30, 2011
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NYSE Symbol |
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EOI |
Inception Date |
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10/29/04 |
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% Average Annual Total Returns at NAV |
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One Year |
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-4.63 |
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Five Years |
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-1.00 |
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Since Inception |
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2.00 |
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% Average Annual Total Returns at market price, NYSE |
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One Year |
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-17.12 |
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Five Years |
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-3.73 |
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Since Inception |
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0.09 |
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% Premium/Discount to NAV (9/30/11) |
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-12.29 |
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Distributions2 |
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Total Distributions per share for the period |
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$ |
1.152 |
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Distribution Rate at NAV |
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9.89 |
% |
Distribution Rate at market price |
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11.28 |
% |
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Since Inception |
% Comparative Performance1 |
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One Year |
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Five Years |
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10/29/04 |
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S&P 500 Index |
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1.14 |
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-1.18 |
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2.09 |
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CBOE S&P 500 BuyWrite Index |
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-3.37 |
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-0.83 |
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1.72 |
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See Endnotes and Additional Disclosures on page 5.
Past performance is no guarantee of future results. Returns are historical and are
calculated by determining the percentage change in net asset value or market price (as
applicable) with all distributions reinvested. Fund performance at market price will differ
from its results at NAV due to factors such as changing perceptions about the Fund, market
conditions, fluctuations in supply and demand for Fund shares, or changes in Fund
distributions. Investment return and principal value will fluctuate so that shares, when
sold, may be worth more or less than their original cost. Performance less than one year is
cumulative. Performance is for the stated time period only; due to market volatility,
current Fund performance may be lower or higher than the quoted return. For performance as
of the most recent month end, please refer to www.eatonvance.com.
3
Eaton Vance
Enhanced Equity Income Fund
September 30, 2011
Fund Profile
Sector Allocation (% of total investments)3
Top 10 Holdings (% of total investments)3
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Apple, Inc. |
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5.2 |
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Exxon Mobil Corp. |
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3.1 |
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QUALCOMM, Inc. |
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3.0 |
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Coca-Cola Co. (The) |
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2.9 |
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International Business Machines Corp. |
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2.6 |
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AT&T, Inc. |
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2.3 |
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UnitedHealth Group, Inc. |
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2.3 |
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Google, Inc., Class A |
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2.3 |
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Oracle Corp. |
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2.2 |
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JPMorgan Chase & Co. |
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2.1 |
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Total |
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28.0 |
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See Endnotes and Additional Disclosures on page 5.
4
Eaton Vance
Enhanced Equity Income Fund
September 30, 2011
Endnotes and Additional Disclosures
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1. |
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S&P 500 Index is an unmanaged
index of large-cap stocks commonly used as
a measure of U.S. stock market
performance. CBOE S&P 500 BuyWrite Index
measures the performance of a hypothetical
buy-write strategy on the S&P 500 Index.
Dow Jones Industrial Average is a
price-weighted average of 30 blue-chip
stocks that are generally the leaders in
their industry. NASDAQ Composite Index is
a market capitalization-weighted index of
all domestic and international securities
listed on NASDAQ. Russell 1000 Index is an
unmanaged index of 1,000 U.S. large-cap
stocks. S&P MidCap 400 Index is an
unmanaged index of 400 U.S. mid-cap
stocks. Russell 2000 Index is an unmanaged
index of 2,000 U.S. small-cap stocks.
Unless otherwise stated, indices do not
reflect any applicable sales charges,
commissions, leverage, taxes or other
expenses of investing. It is not possible
to invest directly in an index. |
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2. |
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Fund distribution rate represents
actual distributions paid to shareholders
and is calculated by dividing the last
regular distribution per share in the
period (annualized) by the NAV or market
price at the end of the period.
Distributions may be composed of ordinary
income, net realized capital gains and
return of capital. |
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3. |
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Depictions do not reflect the
Funds options positions. Excludes cash
and cash equivalents. |
Fund profile subject to change due to active management. |
The views expressed in this report are those of portfolio manager(s) and are current only through
the date stated at the top of this page. These views are subject to change at any time based upon
market or other conditions, and Eaton Vance and the Fund(s) disclaim any responsibility to update
such views. These views may not be relied upon as investment advice and, because investment
decisions are based on many factors, may not be relied upon as an indication of trading intent on
behalf of any Eaton Vance fund. The commentary may contain statements that are not historical
facts, referred to as forward looking statements. The Funds actual future results may differ
significantly from those stated in any forward looking statement, depending on factors such as
changes in securities or financial markets or general economic conditions, the volume of sales and
purchases of Fund shares, the continuation of investment advisory, administrative and service
contracts, and other risks discussed from time to time in the
Funds filings with the Securities
and Exchange Commission.
5
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
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Common Stocks
98.7%(1)
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Security
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Shares
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Value
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Aerospace &
Defense 1.5%
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United Technologies Corp.
|
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92,989
|
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$
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6,542,706
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|
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$
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6,542,706
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Automobiles 0.6%
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Ford Motor
Co.(2)
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293,050
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$
|
2,833,794
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|
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|
|
|
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$
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2,833,794
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|
|
|
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Beverages 3.2%
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Coca-Cola
Co. (The)
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196,464
|
|
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$
|
13,273,108
|
|
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PepsiCo, Inc.
|
|
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19,397
|
|
|
|
1,200,674
|
|
|
|
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|
|
|
|
|
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$
|
14,473,782
|
|
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|
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Biotechnology 1.1%
|
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Celgene
Corp.(2)
|
|
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80,341
|
|
|
$
|
4,974,715
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|
|
|
|
|
|
|
|
|
|
|
$
|
4,974,715
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|
|
|
|
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Capital
Markets 0.7%
|
|
Goldman Sachs Group, Inc. (The)
|
|
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33,334
|
|
|
$
|
3,151,730
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,151,730
|
|
|
|
|
|
|
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Chemicals 1.5%
|
|
Monsanto Co.
|
|
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110,206
|
|
|
$
|
6,616,768
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,616,768
|
|
|
|
|
|
|
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Commercial
Banks 3.3%
|
|
KeyCorp
|
|
|
504,487
|
|
|
$
|
2,991,608
|
|
|
|
PNC Financial Services Group, Inc.
|
|
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56,634
|
|
|
|
2,729,192
|
|
|
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Wells Fargo & Co.
|
|
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368,604
|
|
|
|
8,890,729
|
|
|
|
|
|
|
|
|
|
|
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$
|
14,611,529
|
|
|
|
|
|
|
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Communications
Equipment 4.3%
|
|
Harris Corp.
|
|
|
63,123
|
|
|
$
|
2,156,913
|
|
|
|
JDS Uniphase
Corp.(2)
|
|
|
304,789
|
|
|
|
3,038,746
|
|
|
|
QUALCOMM, Inc.
|
|
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284,114
|
|
|
|
13,816,464
|
|
|
|
|
|
|
|
|
|
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$
|
19,012,123
|
|
|
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|
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Computers &
Peripherals 5.3%
|
|
Apple,
Inc.(2)
|
|
|
62,113
|
|
|
$
|
23,676,233
|
|
|
|
|
|
|
|
|
|
|
|
$
|
23,676,233
|
|
|
|
|
|
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Construction &
Engineering 1.6%
|
|
Fluor Corp.
|
|
|
157,979
|
|
|
$
|
7,353,922
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7,353,922
|
|
|
|
|
|
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Consumer
Finance 0.9%
|
|
American Express Co.
|
|
|
84,975
|
|
|
$
|
3,815,378
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,815,378
|
|
|
|
|
|
|
|
Diversified Financial
Services 4.2%
|
|
Citigroup, Inc.
|
|
|
176,031
|
|
|
$
|
4,509,914
|
|
|
|
JPMorgan Chase & Co.
|
|
|
317,029
|
|
|
|
9,548,914
|
|
|
|
Moodys Corp.
|
|
|
154,502
|
|
|
|
4,704,586
|
|
|
|
|
|
|
|
|
|
|
|
$
|
18,763,414
|
|
|
|
|
|
|
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Diversified Telecommunication
Services 3.8%
|
|
AT&T, Inc.
|
|
|
374,992
|
|
|
$
|
10,694,772
|
|
|
|
CenturyLink, Inc.
|
|
|
99,120
|
|
|
|
3,282,854
|
|
|
|
Verizon Communications, Inc.
|
|
|
82,797
|
|
|
|
3,046,930
|
|
|
|
|
|
|
|
|
|
|
|
$
|
17,024,556
|
|
|
|
|
|
|
|
Electric
Utilities 1.0%
|
|
American Electric Power Co., Inc.
|
|
|
75,093
|
|
|
$
|
2,855,036
|
|
|
|
PPL Corp.
|
|
|
60,186
|
|
|
|
1,717,708
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,572,744
|
|
|
|
|
|
|
|
Electrical
Equipment 0.5%
|
|
Emerson Electric Co.
|
|
|
50,207
|
|
|
$
|
2,074,051
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,074,051
|
|
|
|
|
|
|
|
Electronic Equipment, Instruments
& Components 1.1%
|
|
Corning, Inc.
|
|
|
406,248
|
|
|
$
|
5,021,225
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,021,225
|
|
|
|
|
|
|
|
Energy Equipment &
Services 1.6%
|
|
Halliburton Co.
|
|
|
110,042
|
|
|
$
|
3,358,482
|
|
|
|
Schlumberger, Ltd.
|
|
|
66,385
|
|
|
|
3,965,176
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7,323,658
|
|
|
|
|
|
|
|
Food & Staples
Retailing 1.8%
|
|
Costco Wholesale Corp.
|
|
|
98,308
|
|
|
$
|
8,073,053
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,073,053
|
|
|
|
|
|
|
See Notes to
Financial Statements.
6
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
Portfolio
of Investments continued
|
|
|
|
|
|
|
|
|
|
|
Security
|
|
Shares
|
|
|
Value
|
|
|
|
|
|
Health Care Equipment &
Supplies 3.3%
|
|
Covidien PLC
|
|
|
74,584
|
|
|
$
|
3,289,154
|
|
|
|
St. Jude Medical, Inc.
|
|
|
214,456
|
|
|
|
7,761,163
|
|
|
|
Varian Medical Systems,
Inc.(2)
|
|
|
69,933
|
|
|
|
3,647,705
|
|
|
|
|
|
|
|
|
|
|
|
$
|
14,698,022
|
|
|
|
|
|
|
|
Health Care Providers &
Services 5.8%
|
|
AmerisourceBergen Corp.
|
|
|
207,008
|
|
|
$
|
7,715,188
|
|
|
|
DaVita,
Inc.(2)
|
|
|
36,673
|
|
|
|
2,298,297
|
|
|
|
Fresenius Medical Care AG & Co. KGaA ADR
|
|
|
80,680
|
|
|
|
5,448,320
|
|
|
|
UnitedHealth Group, Inc.
|
|
|
230,148
|
|
|
|
10,614,426
|
|
|
|
|
|
|
|
|
|
|
|
$
|
26,076,231
|
|
|
|
|
|
|
|
Hotels, Restaurants &
Leisure 1.5%
|
|
McDonalds Corp.
|
|
|
73,841
|
|
|
$
|
6,484,717
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,484,717
|
|
|
|
|
|
|
|
Household
Products 2.4%
|
|
Colgate-Palmolive Co.
|
|
|
25,872
|
|
|
$
|
2,294,329
|
|
|
|
Procter & Gamble Co.
|
|
|
132,541
|
|
|
|
8,373,940
|
|
|
|
|
|
|
|
|
|
|
|
$
|
10,668,269
|
|
|
|
|
|
|
|
Industrial
Conglomerates 3.8%
|
|
Danaher Corp.
|
|
|
202,200
|
|
|
$
|
8,480,268
|
|
|
|
General Electric Co.
|
|
|
548,560
|
|
|
|
8,360,054
|
|
|
|
|
|
|
|
|
|
|
|
$
|
16,840,322
|
|
|
|
|
|
|
|
Insurance 1.5%
|
|
Aflac, Inc.
|
|
|
58,053
|
|
|
$
|
2,028,952
|
|
|
|
Lincoln National Corp.
|
|
|
109,404
|
|
|
|
1,709,985
|
|
|
|
MetLife, Inc.
|
|
|
112,652
|
|
|
|
3,155,382
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,894,319
|
|
|
|
|
|
|
|
Internet & Catalog
Retail 2.9%
|
|
Amazon.com,
Inc.(2)
|
|
|
37,648
|
|
|
$
|
8,140,627
|
|
|
|
priceline.com,
Inc.(2)
|
|
|
10,668
|
|
|
|
4,794,839
|
|
|
|
|
|
|
|
|
|
|
|
$
|
12,935,466
|
|
|
|
|
|
|
|
Internet Software &
Services 4.3%
|
|
eBay,
Inc.(2)
|
|
|
292,591
|
|
|
$
|
8,628,508
|
|
|
|
Google, Inc.,
Class A(2)
|
|
|
20,465
|
|
|
|
10,526,787
|
|
|
|
|
|
|
|
|
|
|
|
$
|
19,155,295
|
|
|
|
|
|
|
|
IT Services 3.7%
|
|
Accenture PLC, Class A
|
|
|
87,778
|
|
|
$
|
4,624,145
|
|
|
|
International Business Machines Corp.
|
|
|
67,277
|
|
|
|
11,775,493
|
|
|
|
|
|
|
|
|
|
|
|
$
|
16,399,638
|
|
|
|
|
|
|
|
Life Sciences Tools &
Services 0.5%
|
|
Thermo Fisher Scientific,
Inc.(2)
|
|
|
41,607
|
|
|
$
|
2,106,979
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,106,979
|
|
|
|
|
|
|
|
Machinery 2.0%
|
|
Illinois Tool Works, Inc.
|
|
|
215,126
|
|
|
$
|
8,949,242
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,949,242
|
|
|
|
|
|
|
|
Media 1.9%
|
|
Comcast Corp., Class A
|
|
|
314,293
|
|
|
$
|
6,568,724
|
|
|
|
Walt Disney Co. (The)
|
|
|
66,704
|
|
|
|
2,011,792
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,580,516
|
|
|
|
|
|
|
|
Metals &
Mining 2.2%
|
|
Cliffs Natural Resources, Inc.
|
|
|
48,819
|
|
|
$
|
2,498,068
|
|
|
|
Freeport-McMoRan Copper & Gold, Inc.
|
|
|
39,423
|
|
|
|
1,200,431
|
|
|
|
Goldcorp, Inc.
|
|
|
129,942
|
|
|
|
5,930,553
|
|
|
|
|
|
|
|
|
|
|
|
$
|
9,629,052
|
|
|
|
|
|
|
|
Multi-Utilities 1.1%
|
|
PG&E Corp.
|
|
|
114,874
|
|
|
$
|
4,860,319
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,860,319
|
|
|
|
|
|
|
|
Multiline
Retail 0.9%
|
|
Macys, Inc.
|
|
|
150,719
|
|
|
$
|
3,966,924
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,966,924
|
|
|
|
|
|
|
|
Oil, Gas & Consumable
Fuels 8.4%
|
|
Alpha Natural Resources,
Inc.(2)
|
|
|
91,978
|
|
|
$
|
1,627,091
|
|
|
|
Apache Corp.
|
|
|
46,582
|
|
|
|
3,737,740
|
|
|
|
ConocoPhillips
|
|
|
144,937
|
|
|
|
9,177,411
|
|
|
|
Exxon Mobil Corp.
|
|
|
197,344
|
|
|
|
14,333,095
|
|
|
|
Hess Corp.
|
|
|
30,622
|
|
|
|
1,606,430
|
|
|
|
Occidental Petroleum Corp.
|
|
|
41,836
|
|
|
|
2,991,274
|
|
|
|
Peabody Energy Corp.
|
|
|
119,762
|
|
|
|
4,057,536
|
|
|
|
|
|
|
|
|
|
|
|
$
|
37,530,577
|
|
|
|
|
|
|
See Notes to
Financial Statements.
7
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
Portfolio
of Investments continued
|
|
|
|
|
|
|
|
|
|
|
Security
|
|
Shares
|
|
|
Value
|
|
|
|
|
|
Personal
Products 1.7%
|
|
Estee Lauder Cos., Inc. (The), Class A
|
|
|
85,165
|
|
|
$
|
7,480,894
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7,480,894
|
|
|
|
|
|
|
|
Pharmaceuticals 2.4%
|
|
Johnson & Johnson
|
|
|
45,559
|
|
|
$
|
2,902,564
|
|
|
|
Pfizer, Inc.
|
|
|
437,518
|
|
|
|
7,735,318
|
|
|
|
|
|
|
|
|
|
|
|
$
|
10,637,882
|
|
|
|
|
|
|
|
Real Estate Investment Trusts
(REITs) 1.1%
|
|
AvalonBay Communities, Inc.
|
|
|
26,090
|
|
|
$
|
2,975,564
|
|
|
|
Boston Properties, Inc.
|
|
|
24,157
|
|
|
|
2,152,389
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,127,953
|
|
|
|
|
|
|
|
Software 3.5%
|
|
Microsoft Corp.
|
|
|
212,084
|
|
|
$
|
5,278,771
|
|
|
|
Oracle Corp.
|
|
|
351,686
|
|
|
|
10,107,455
|
|
|
|
|
|
|
|
|
|
|
|
$
|
15,386,226
|
|
|
|
|
|
|
|
Specialty
Retail 0.8%
|
|
Home Depot, Inc.
|
|
|
109,073
|
|
|
$
|
3,585,230
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,585,230
|
|
|
|
|
|
|
|
Textiles, Apparel & Luxury
Goods 2.1%
|
|
NIKE, Inc., Class B
|
|
|
109,096
|
|
|
$
|
9,328,799
|
|
|
|
|
|
|
|
|
|
|
|
$
|
9,328,799
|
|
|
|
|
|
|
|
Tobacco 2.0%
|
|
Philip Morris International, Inc.
|
|
|
141,826
|
|
|
$
|
8,847,106
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,847,106
|
|
|
|
|
|
|
|
Wireless Telecommunication
Services 0.9%
|
|
American Tower Corp.,
Class A(2)
|
|
|
77,140
|
|
|
$
|
4,150,132
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,150,132
|
|
|
|
|
|
|
|
|
Total Common Stocks
|
|
|
(identified cost $441,102,030)
|
|
$
|
440,235,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Investments 3.9%
|
|
|
|
Interest
|
|
|
|
|
|
|
Description
|
|
(000s omitted)
|
|
|
Value
|
|
|
|
|
|
Eaton Vance Cash Reserves Fund, LLC,
0.08%(3)
|
|
$
|
17,243
|
|
|
$
|
17,243,220
|
|
|
|
|
|
|
|
|
Total Short-Term Investments
|
|
|
(identified cost $17,243,220)
|
|
$
|
17,243,220
|
|
|
|
|
|
|
|
|
Total Investments 102.6%
|
|
|
(identified cost $458,345,250)
|
|
$
|
457,478,711
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covered Call Options Written (1.2)%
|
|
|
|
Number of
|
|
|
Strike
|
|
|
Expiration
|
|
|
|
|
|
|
Security
|
|
Contracts
|
|
|
Price
|
|
|
Date
|
|
|
Value
|
|
|
|
|
|
Accenture PLC, Class A
|
|
|
440
|
|
|
$
|
52.50
|
|
|
|
10/22/11
|
|
|
$
|
(88,000
|
)
|
|
|
Aflac, Inc.
|
|
|
285
|
|
|
|
38.00
|
|
|
|
11/19/11
|
|
|
|
(43,463
|
)
|
|
|
Alpha Natural Resources, Inc.
|
|
|
460
|
|
|
|
35.00
|
|
|
|
10/22/11
|
|
|
|
(920
|
)
|
|
|
Amazon.com, Inc.
|
|
|
305
|
|
|
|
200.00
|
|
|
|
10/22/11
|
|
|
|
(674,813
|
)
|
|
|
American Electric Power Co., Inc.
|
|
|
375
|
|
|
|
39.00
|
|
|
|
10/22/11
|
|
|
|
(16,875
|
)
|
|
|
American Express Co.
|
|
|
425
|
|
|
|
47.00
|
|
|
|
10/22/11
|
|
|
|
(50,788
|
)
|
|
|
American Tower Corp., Class A
|
|
|
390
|
|
|
|
55.00
|
|
|
|
10/22/11
|
|
|
|
(50,700
|
)
|
|
|
AmerisourceBergen Corp.
|
|
|
1,660
|
|
|
|
40.00
|
|
|
|
10/22/11
|
|
|
|
(53,950
|
)
|
|
|
Apache Corp.
|
|
|
235
|
|
|
|
110.00
|
|
|
|
10/22/11
|
|
|
|
(587
|
)
|
|
|
Apple, Inc.
|
|
|
315
|
|
|
|
375.00
|
|
|
|
10/22/11
|
|
|
|
(684,338
|
)
|
|
|
AT&T, Inc.
|
|
|
1,320
|
|
|
|
29.00
|
|
|
|
11/19/11
|
|
|
|
(91,080
|
)
|
|
|
AvalonBay Communities, Inc.
|
|
|
130
|
|
|
|
135.00
|
|
|
|
10/22/11
|
|
|
|
(1,625
|
)
|
|
|
Boston Properties, Inc.
|
|
|
125
|
|
|
|
105.00
|
|
|
|
10/22/11
|
|
|
|
(2,500
|
)
|
|
|
Celgene Corp.
|
|
|
405
|
|
|
|
60.00
|
|
|
|
10/22/11
|
|
|
|
(140,738
|
)
|
|
|
CenturyLink, Inc.
|
|
|
490
|
|
|
|
35.00
|
|
|
|
10/22/11
|
|
|
|
(14,700
|
)
|
|
|
Citigroup, Inc.
|
|
|
880
|
|
|
|
33.00
|
|
|
|
11/19/11
|
|
|
|
(29,920
|
)
|
|
|
Cliffs Natural Resources, Inc.
|
|
|
245
|
|
|
|
85.00
|
|
|
|
10/22/11
|
|
|
|
(857
|
)
|
|
|
Coca-Cola
Co. (The)
|
|
|
985
|
|
|
|
70.00
|
|
|
|
10/22/11
|
|
|
|
(88,650
|
)
|
|
|
Comcast Corp., Class A
|
|
|
1,575
|
|
|
|
25.00
|
|
|
|
10/22/11
|
|
|
|
(3,150
|
)
|
|
|
ConocoPhillips
|
|
|
725
|
|
|
|
67.50
|
|
|
|
10/22/11
|
|
|
|
(52,925
|
)
|
|
|
Corning, Inc.
|
|
|
2,025
|
|
|
|
15.00
|
|
|
|
11/19/11
|
|
|
|
(36,450
|
)
|
|
|
Costco Wholesale Corp.
|
|
|
495
|
|
|
|
80.00
|
|
|
|
10/22/11
|
|
|
|
(209,138
|
)
|
|
|
Covidien PLC
|
|
|
375
|
|
|
|
52.50
|
|
|
|
10/22/11
|
|
|
|
(2,812
|
)
|
|
|
Danaher Corp.
|
|
|
1,015
|
|
|
|
46.00
|
|
|
|
10/22/11
|
|
|
|
(45,675
|
)
|
|
|
DaVita, Inc.
|
|
|
185
|
|
|
|
75.00
|
|
|
|
10/22/11
|
|
|
|
(2,775
|
)
|
|
|
eBay, Inc.
|
|
|
790
|
|
|
|
30.00
|
|
|
|
10/22/11
|
|
|
|
(120,080
|
)
|
|
|
Emerson Electric Co.
|
|
|
255
|
|
|
|
47.00
|
|
|
|
10/22/11
|
|
|
|
(5,737
|
)
|
|
|
Estee Lauder Cos., Inc. (The), Class A
|
|
|
430
|
|
|
|
95.00
|
|
|
|
10/22/11
|
|
|
|
(63,425
|
)
|
|
|
Exxon Mobil Corp.
|
|
|
990
|
|
|
|
75.00
|
|
|
|
10/22/11
|
|
|
|
(148,005
|
)
|
|
|
Fluor Corp.
|
|
|
790
|
|
|
|
65.00
|
|
|
|
10/22/11
|
|
|
|
(1,975
|
)
|
|
|
Ford Motor Co.
|
|
|
1,465
|
|
|
|
11.00
|
|
|
|
10/22/11
|
|
|
|
(15,382
|
)
|
|
|
Freeport-McMoRan Copper & Gold, Inc.
|
|
|
394
|
|
|
|
50.00
|
|
|
|
11/19/11
|
|
|
|
(3,546
|
)
|
|
|
See Notes to
Financial Statements.
8
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
Portfolio
of Investments continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
|
Strike
|
|
|
Expiration
|
|
|
|
|
|
|
Security
|
|
Contracts
|
|
|
Price
|
|
|
Date
|
|
|
Value
|
|
|
|
|
|
Fresenius Medical Care AG & Co. KGaA ADR
|
|
|
405
|
|
|
$
|
70.00
|
|
|
|
10/22/11
|
|
|
$
|
(101,250
|
)
|
|
|
General Electric Co.
|
|
|
2,745
|
|
|
|
16.00
|
|
|
|
10/22/11
|
|
|
|
(100,193
|
)
|
|
|
Goldcorp, Inc.
|
|
|
195
|
|
|
|
57.50
|
|
|
|
10/22/11
|
|
|
|
(2,242
|
)
|
|
|
Goldman Sachs Group, Inc. (The)
|
|
|
160
|
|
|
|
115.00
|
|
|
|
11/19/11
|
|
|
|
(23,920
|
)
|
|
|
Google, Inc., Class A
|
|
|
105
|
|
|
|
550.00
|
|
|
|
10/22/11
|
|
|
|
(122,325
|
)
|
|
|
Halliburton Co.
|
|
|
550
|
|
|
|
46.00
|
|
|
|
10/22/11
|
|
|
|
(825
|
)
|
|
|
Hess Corp.
|
|
|
155
|
|
|
|
62.50
|
|
|
|
11/19/11
|
|
|
|
(19,607
|
)
|
|
|
Home Depot, Inc.
|
|
|
545
|
|
|
|
34.00
|
|
|
|
10/22/11
|
|
|
|
(38,423
|
)
|
|
|
Illinois Tool Works, Inc.
|
|
|
1,070
|
|
|
|
45.00
|
|
|
|
10/22/11
|
|
|
|
(66,875
|
)
|
|
|
Internatinal Business Machines Corp.
|
|
|
340
|
|
|
|
170.00
|
|
|
|
10/22/11
|
|
|
|
(332,350
|
)
|
|
|
JDS Uniphase Corp.
|
|
|
1,525
|
|
|
|
15.00
|
|
|
|
10/22/11
|
|
|
|
(4,575
|
)
|
|
|
Johnson & Johnson
|
|
|
230
|
|
|
|
65.00
|
|
|
|
10/22/11
|
|
|
|
(23,690
|
)
|
|
|
JPMorgan Chase & Co.
|
|
|
1,585
|
|
|
|
37.00
|
|
|
|
11/19/11
|
|
|
|
(42,795
|
)
|
|
|
Lincoln National Corp.
|
|
|
550
|
|
|
|
28.00
|
|
|
|
10/22/11
|
|
|
|
(2,750
|
)
|
|
|
Macys, Inc.
|
|
|
755
|
|
|
|
26.00
|
|
|
|
10/22/11
|
|
|
|
(118,158
|
)
|
|
|
McDonalds Corp.
|
|
|
368
|
|
|
|
90.00
|
|
|
|
10/22/11
|
|
|
|
(50,416
|
)
|
|
|
McDonalds Corp.
|
|
|
370
|
|
|
|
90.00
|
|
|
|
12/17/11
|
|
|
|
(112,850
|
)
|
|
|
MetLife, Inc.
|
|
|
560
|
|
|
|
32.00
|
|
|
|
10/22/11
|
|
|
|
(18,760
|
)
|
|
|
Microsoft Corp.
|
|
|
1,060
|
|
|
|
26.00
|
|
|
|
10/22/11
|
|
|
|
(50,350
|
)
|
|
|
Monsanto Co.
|
|
|
555
|
|
|
|
70.00
|
|
|
|
10/22/11
|
|
|
|
(14,707
|
)
|
|
|
Moodys Corp.
|
|
|
770
|
|
|
|
33.00
|
|
|
|
11/19/11
|
|
|
|
(112,805
|
)
|
|
|
NIKE, Inc., Class B
|
|
|
545
|
|
|
|
85.00
|
|
|
|
10/22/11
|
|
|
|
(211,188
|
)
|
|
|
NIKE, Inc., Class B
|
|
|
435
|
|
|
|
92.50
|
|
|
|
11/19/11
|
|
|
|
(99,398
|
)
|
|
|
Occidental Petroleum Corp.
|
|
|
210
|
|
|
|
92.50
|
|
|
|
11/19/11
|
|
|
|
(9,870
|
)
|
|
|
Oracle Corp.
|
|
|
1,970
|
|
|
|
29.00
|
|
|
|
10/22/11
|
|
|
|
(241,325
|
)
|
|
|
Peabody Energy Corp.
|
|
|
600
|
|
|
|
50.00
|
|
|
|
10/22/11
|
|
|
|
(1,800
|
)
|
|
|
PepsiCo, Inc.
|
|
|
193
|
|
|
|
70.00
|
|
|
|
10/22/11
|
|
|
|
(868
|
)
|
|
|
Pfizer, Inc.
|
|
|
2,190
|
|
|
|
19.00
|
|
|
|
11/19/11
|
|
|
|
(65,700
|
)
|
|
|
PG&E Corp.
|
|
|
151
|
|
|
|
45.00
|
|
|
|
10/22/11
|
|
|
|
(3,020
|
)
|
|
|
Philip Morris International, Inc.
|
|
|
710
|
|
|
|
67.50
|
|
|
|
10/22/11
|
|
|
|
(19,525
|
)
|
|
|
PPL Corp.
|
|
|
305
|
|
|
|
28.00
|
|
|
|
10/22/11
|
|
|
|
(32,787
|
)
|
|
|
priceline.com, Inc.
|
|
|
55
|
|
|
|
530.00
|
|
|
|
10/22/11
|
|
|
|
(11,550
|
)
|
|
|
Procter & Gamble Co.
|
|
|
665
|
|
|
|
65.00
|
|
|
|
10/22/11
|
|
|
|
(39,900
|
)
|
|
|
QUALCOMM, Inc.
|
|
|
1,425
|
|
|
|
55.00
|
|
|
|
10/22/11
|
|
|
|
(34,200
|
)
|
|
|
Schlumberger, Ltd.
|
|
|
335
|
|
|
|
82.50
|
|
|
|
11/19/11
|
|
|
|
(4,355
|
)
|
|
|
St. Jude Medical, Inc.
|
|
|
1,065
|
|
|
|
45.00
|
|
|
|
10/22/11
|
|
|
|
(5,325
|
)
|
|
|
Thermo Fisher Scientific, Inc.
|
|
|
205
|
|
|
|
55.00
|
|
|
|
10/22/11
|
|
|
|
(10,762
|
)
|
|
|
UnitedHealth Group, Inc.
|
|
|
1,155
|
|
|
|
47.00
|
|
|
|
10/22/11
|
|
|
|
(194,040
|
)
|
|
|
United Technologies Corp.
|
|
|
465
|
|
|
|
77.50
|
|
|
|
11/19/11
|
|
|
|
(66,495
|
)
|
|
|
Varian Medical Systems, Inc.
|
|
|
350
|
|
|
|
60.00
|
|
|
|
11/19/11
|
|
|
|
(25,375
|
)
|
|
|
Verizon Communications, Inc.
|
|
|
415
|
|
|
|
37.00
|
|
|
|
10/22/11
|
|
|
|
(23,240
|
)
|
|
|
Walt Disney Co. (The)
|
|
|
330
|
|
|
|
33.00
|
|
|
|
10/22/11
|
|
|
|
(8,415
|
)
|
|
|
Wells Fargo & Co.
|
|
|
1,845
|
|
|
|
25.00
|
|
|
|
10/22/11
|
|
|
|
(181,733
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total Covered Call Options Written
|
|
|
|
|
|
|
(premiums received $8,279,787)
|
|
$
|
(5,396,316
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Other Assets, Less
Liabilities (1.4)%
|
|
$
|
(6,268,463
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets 100.0%
|
|
$
|
445,813,932
|
|
|
|
|
|
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets.
|
|
|
ADR
|
|
- American Depositary Receipt
|
|
|
|
(1) |
|
A portion of each applicable common stock for which a written
call option is outstanding at September 30, 2011 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 September 30, 2011. |
See Notes to
Financial Statements.
9
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
Statement
of Assets and Liabilities
|
|
|
|
|
|
|
Assets
|
|
September 30, 2011
|
|
|
|
Unaffiliated investments, at value (identified cost,
$441,102,030)
|
|
$
|
440,235,491
|
|
|
|
Affiliated investment, at value (identified cost, $17,243,220)
|
|
|
17,243,220
|
|
|
|
Dividends receivable
|
|
|
624,541
|
|
|
|
Interest receivable from affiliated investment
|
|
|
1,024
|
|
|
|
Receivable for investments sold
|
|
|
24,754,770
|
|
|
|
Tax reclaims receivable
|
|
|
102,702
|
|
|
|
|
|
Total assets
|
|
$
|
482,961,748
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
Written options outstanding, at value (premiums received,
$8,279,787)
|
|
$
|
5,396,316
|
|
|
|
Payable for investments purchased
|
|
|
31,148,625
|
|
|
|
Payable to affiliate:
|
|
|
|
|
|
|
Investment adviser fee
|
|
|
385,676
|
|
|
|
Accrued expenses
|
|
|
217,199
|
|
|
|
|
|
Total liabilities
|
|
$
|
37,147,816
|
|
|
|
|
|
Net Assets
|
|
$
|
445,813,932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sources of Net Assets
|
|
Common shares, $0.01 par value, unlimited number of shares
authorized, 39,970,049 shares issued and outstanding
|
|
$
|
399,700
|
|
|
|
Additional paid-in capital
|
|
|
576,630,330
|
|
|
|
Accumulated net realized loss
|
|
|
(133,266,787
|
)
|
|
|
Accumulated undistributed net investment income
|
|
|
26,399
|
|
|
|
Net unrealized appreciation
|
|
|
2,024,290
|
|
|
|
|
|
Net Assets
|
|
$
|
445,813,932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value
|
|
($445,813,932
¸
39,970,049 common shares issued and outstanding)
|
|
$
|
11.15
|
|
|
|
|
|
See Notes to
Financial Statements.
10
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
Investment Income
|
|
September 30, 2011
|
|
|
|
Dividends (net of foreign taxes, $4,260)
|
|
$
|
8,707,938
|
|
|
|
Interest income allocated from affiliated investment
|
|
|
21,319
|
|
|
|
Expenses allocated from affiliated investment
|
|
|
(2,246
|
)
|
|
|
|
|
Total investment income
|
|
$
|
8,727,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
Investment adviser fee
|
|
$
|
5,242,666
|
|
|
|
Trustees fees and expenses
|
|
|
17,771
|
|
|
|
Custodian fee
|
|
|
268,241
|
|
|
|
Transfer and dividend disbursing agent fees
|
|
|
19,587
|
|
|
|
Legal and accounting services
|
|
|
68,753
|
|
|
|
Printing and postage
|
|
|
329,113
|
|
|
|
Miscellaneous
|
|
|
69,139
|
|
|
|
|
|
Total expenses
|
|
$
|
6,015,270
|
|
|
|
|
|
Deduct
|
|
|
|
|
|
|
Reduction of custodian fee
|
|
$
|
27
|
|
|
|
|
|
Total expense reductions
|
|
$
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
Net expenses
|
|
$
|
6,015,243
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
2,711,768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized and Unrealized Gain (Loss)
|
|
Net realized gain (loss)
|
|
|
|
|
|
|
Investment transactions
|
|
$
|
25,963,463
|
|
|
|
Investment transactions allocated from affiliated investment
|
|
|
777
|
|
|
|
Written options
|
|
|
(13,830,949
|
)
|
|
|
Foreign currency transactions
|
|
|
21,182
|
|
|
|
|
|
Net realized gain
|
|
$
|
12,154,473
|
|
|
|
|
|
Change in unrealized appreciation (depreciation)
|
|
|
|
|
|
|
Investments
|
|
$
|
(47,131,236
|
)
|
|
|
Written options
|
|
|
9,757,236
|
|
|
|
Foreign currency
|
|
|
4,000
|
|
|
|
|
|
Net change in unrealized appreciation (depreciation)
|
|
$
|
(37,370,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net realized and unrealized loss
|
|
$
|
(25,215,527
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in net assets from operations
|
|
$
|
(22,503,759
|
)
|
|
|
|
|
See Notes to
Financial Statements.
11
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
Statements
of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
Increase (Decrease)
in Net Assets
|
|
September 30, 2011
|
|
September 30, 2010
|
|
|
|
From operations
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
2,711,768
|
|
|
$
|
3,664,253
|
|
|
|
Net realized gain (loss) from investment transactions, written
options and foreign currency transactions
|
|
|
12,154,473
|
|
|
|
(6,138,583
|
)
|
|
|
Net change in unrealized appreciation (depreciation) from
investments, written options and foreign currency
|
|
|
(37,370,000
|
)
|
|
|
37,430,716
|
|
|
|
|
|
Net increase (decrease) in net assets from operations
|
|
$
|
(22,503,759
|
)
|
|
$
|
34,956,386
|
|
|
|
|
|
Distributions to shareholders
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
$
|
(2,713,519
|
)
|
|
$
|
(3,679,239
|
)
|
|
|
Tax return of capital
|
|
|
(43,318,670
|
)
|
|
|
(54,445,644
|
)
|
|
|
|
|
Total distributions
|
|
$
|
(46,032,189
|
)
|
|
$
|
(58,124,883
|
)
|
|
|
|
|
Capital share transactions
|
|
|
|
|
|
|
|
|
|
|
Reinvestment of distributions
|
|
$
|
396,783
|
|
|
$
|
2,173,771
|
|
|
|
|
|
Net increase in net assets from capital share transactions
|
|
$
|
396,783
|
|
|
$
|
2,173,771
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in net assets
|
|
$
|
(68,139,165
|
)
|
|
$
|
(20,994,726
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets
|
|
At beginning of year
|
|
$
|
513,953,097
|
|
|
$
|
534,947,823
|
|
|
|
|
|
At end of year
|
|
$
|
445,813,932
|
|
|
$
|
513,953,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated undistributed net
investment income
included in net assets
|
|
At end of year
|
|
$
|
26,399
|
|
|
$
|
16,543
|
|
|
|
|
|
See Notes to
Financial Statements.
12
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended September 30,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
|
2007
|
|
|
|
Net asset value Beginning of year
|
|
$
|
12.870
|
|
|
$
|
13.450
|
|
|
$
|
16.490
|
|
|
$
|
21.110
|
|
|
$
|
19.900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) From Operations
|
|
Net investment
income(1)
|
|
$
|
0.068
|
|
|
$
|
0.092
|
|
|
$
|
0.147
|
|
|
$
|
0.152
|
|
|
$
|
0.080
|
|
|
|
Net realized and unrealized gain (loss)
|
|
|
(0.636
|
)
|
|
|
0.787
|
|
|
|
(1.543
|
)
|
|
|
(3.013
|
)
|
|
|
2.774
|
|
|
|
|
|
Total income (loss) from operations
|
|
$
|
(0.568
|
)
|
|
$
|
0.879
|
|
|
$
|
(1.396
|
)
|
|
$
|
(2.861
|
)
|
|
$
|
2.854
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less Distributions
|
|
From net investment income
|
|
$
|
(0.068
|
)
|
|
$
|
(0.092
|
)
|
|
$
|
(0.176
|
)
|
|
$
|
(0.154
|
)
|
|
$
|
(0.038
|
)
|
|
|
From net realized gain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.891
|
)
|
|
|
(1.606
|
)
|
|
|
Tax return of capital
|
|
|
(1.084
|
)
|
|
|
(1.367
|
)
|
|
|
(1.468
|
)
|
|
|
(0.714
|
)
|
|
|
|
|
|
|
|
|
Total distributions
|
|
$
|
(1.152
|
)
|
|
$
|
(1.459
|
)
|
|
$
|
(1.644
|
)
|
|
$
|
(1.759
|
)
|
|
$
|
(1.644
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value End of year
|
|
$
|
11.150
|
|
|
$
|
12.870
|
|
|
$
|
13.450
|
|
|
$
|
16.490
|
|
|
$
|
21.110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value End of year
|
|
$
|
9.780
|
|
|
$
|
12.990
|
|
|
$
|
13.680
|
|
|
$
|
13.310
|
|
|
$
|
19.440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Net Asset
Value(2)
|
|
|
(4.63
|
)%
|
|
|
6.87
|
%
|
|
|
(6.20
|
)%
|
|
|
(13.54
|
)%
|
|
|
15.04
|
%(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Market
Value(2)
|
|
|
(17.12
|
)%
|
|
|
6.02
|
%
|
|
|
18.23
|
%
|
|
|
(24.23
|
)%
|
|
|
5.04
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data
|
|
Net assets, end of year (000s omitted)
|
|
$
|
445,814
|
|
|
$
|
513,953
|
|
|
$
|
534,948
|
|
|
$
|
654,528
|
|
|
$
|
837,584
|
|
|
|
Ratios (as a percentage of average daily net assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses(4)
|
|
|
1.15
|
%
|
|
|
1.12
|
%
|
|
|
1.17
|
%
|
|
|
1.10
|
%
|
|
|
1.08
|
%
|
|
|
Net investment income
|
|
|
0.52
|
%
|
|
|
0.69
|
%
|
|
|
1.17
|
%
|
|
|
0.79
|
%
|
|
|
0.39
|
%
|
|
|
Portfolio Turnover
|
|
|
78
|
%
|
|
|
27
|
%
|
|
|
65
|
%
|
|
|
117
|
%
|
|
|
195
|
%
|
|
|
|
|
|
|
|
(1) |
|
Computed using average shares outstanding. |
(2) |
|
Returns are historical and are calculated by determining the
percentage change in net asset value or market value with all
distributions reinvested. |
(3) |
|
During the year ended September 30, 2007, the Fund realized
a gain on the closing out of a written options position that did
not meet investment guidelines. The gain was less than $0.01 per
share and had no effect on total return for the year ended
September 30, 2007. |
(4) |
|
Excludes the effect of custody fee credits, if any, of less than
0.005%. |
See Notes to
Financial Statements.
13
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
Notes
to Financial Statements
1 Significant
Accounting
Policies
Eaton Vance Enhanced Equity Income Fund (the Fund) is a
Massachusetts business trust registered under the Investment
Company Act of 1940, as amended (the 1940 Act), as a
diversified, closed-end management investment company. The
Funds primary investment objective is to provide current
income, with a secondary objective of capital appreciation.
The following is a summary of significant accounting policies of
the Fund. The policies are in conformity with accounting
principles generally accepted in the United States of America.
A Investment
Valuation Equity securities (including common
shares of closed-end investment companies) listed on a U.S.
securities exchange generally are valued at the last sale or
closing price on the day of valuation or, if no sales took place
on such date, at the mean between the closing bid and asked
prices therefore on the exchange where such securities are
principally traded. Equity securities listed on the NASDAQ
Global or Global Select Market generally are valued at the
NASDAQ official closing price. Unlisted or listed securities for
which closing sales prices or closing quotations are not
available are valued at the mean between the latest available
bid and asked prices or, in the case of preferred equity
securities that are not listed or traded in the over-the-counter
market, by a third party pricing service that will use various
techniques that consider factors including, but not limited to,
prices or yields of securities with similar characteristics,
benchmark yields, broker/dealer quotes, quotes of underlying
common stock, issuer spreads, as well as industry and economic
events. Exchange-traded options are valued at the mean between
the bid and asked prices at valuation time as reported by the
Options Price Reporting Authority for U.S. listed options or by
the relevant exchange or board of trade for
non-U.S.
listed options.
Over-the-counter
options are valued by a third party pricing service using
techniques that consider factors including the value of the
underlying instrument, the volatility of the underlying
instrument and the period of time until option expiration.
Short-term debt obligations purchased with a remaining maturity
of sixty days or less are generally valued at amortized cost,
which approximates market value. Foreign securities and
currencies are valued in U.S. dollars, based on foreign currency
exchange rate quotations supplied by a third party pricing
service. The pricing service uses a proprietary model to
determine the exchange rate. Inputs to the model include
reported trades and implied bid/ask spreads. The daily valuation
of exchange-traded foreign securities generally is determined as
of the close of trading on the principal exchange on which such
securities trade. Events occurring after the close of trading on
foreign exchanges may result in adjustments to the valuation of
foreign securities to more accurately reflect their fair value
as of the close of regular trading on the New York Stock
Exchange. When valuing foreign equity securities that meet
certain criteria, the Funds Trustees have approved the use
of a fair value service that values such securities to reflect
market trading that occurs after the close of the applicable
foreign markets of comparable securities or other instruments
that have a strong correlation to the fair-valued securities.
Investments for which valuations or market quotations are not
readily available or are deemed unreliable are valued at fair
value using methods determined in good faith by or at the
direction of the Trustees of the Fund in a manner that fairly
reflects the securitys value, or the amount that the Fund
might reasonably expect to receive for the security upon its
current sale in the ordinary course. Each such determination is
based on a consideration of relevant factors, which are likely
to vary from one pricing context to another. These factors may
include, but are not limited to, the type of security, the
existence of any contractual restrictions on the securitys
disposition, the price and extent of public trading in similar
securities of the issuer or of comparable companies or entities,
quotations or relevant information obtained from broker/dealers
or other market participants, information obtained from the
issuer, analysts,
and/or the
appropriate stock exchange (for exchange-traded securities), an
analysis of the companys or entitys financial
condition, and an evaluation of the forces that influence the
issuer and the market(s) in which the security is purchased and
sold.
The Fund may invest in Eaton Vance Cash Reserves Fund, LLC (Cash
Reserves Fund), an affiliated investment company managed by
Eaton Vance Management (EVM). Cash Reserves Fund generally
values its investment securities utilizing the amortized cost
valuation technique in accordance with
Rule 2a-7
under the 1940 Act. This technique involves initially valuing a
portfolio security at its cost and thereafter assuming a
constant amortization to maturity of any discount or premium. If
amortized cost is determined not to approximate fair value, Cash
Reserves Fund may value its investment securities based on
available market quotations provided by a third party pricing
service.
B Investment
Transactions Investment transactions for
financial statement purposes are accounted for on a trade date
basis. Realized gains and losses on investments sold are
determined on the basis of identified cost.
C Income
Dividend income is recorded on the ex-dividend date for
dividends received in cash
and/or
securities. However, if the ex-dividend date has passed, certain
dividends from foreign securities are recorded as the Fund is
informed of the ex-dividend date. Withholding taxes on foreign
dividends and capital gains have been provided for in accordance
with the Funds understanding of the applicable
countries tax rules and rates. Interest income is recorded
on the basis of interest accrued, adjusted for amortization of
premium or accretion of discount.
D Federal
Taxes The Funds policy is to comply
with the provisions of the Internal Revenue Code applicable to
regulated investment companies and to distribute to shareholders
each year substantially all of its net investment income, and
all or substantially all of its net realized capital gains.
Accordingly, no provision for federal income or excise tax is
necessary.
At September 30, 2011, the Fund, for federal income tax
purposes, had a capital loss carryforward of $132,398,283 which
will reduce its taxable income arising from future net realized
gains on investment transactions, if any, to the extent
permitted by the Internal Revenue Code, and thus will reduce the
amount of distributions to shareholders, which would otherwise
be necessary to relieve the Fund of any liability for federal
income or excise tax. Such
14
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
Notes
to Financial Statements continued
capital loss carryforward will expire on September 30, 2017
($9,096,930), September 30, 2018 ($122,475,830) and
September 30, 2019 ($825,523). In addition, such capital
loss carryforward cannot be utilized prior to the utilization of
new capital losses, if any, created after September 30,
2011.
As of September 30, 2011, the Fund had no uncertain tax
positions that would require financial statement recognition,
de-recognition, or disclosure. Each of the Funds federal
tax returns filed in the
3-year
period ended September 30, 2011 remains subject to
examination by the Internal Revenue Service.
E Expense
Reduction State Street Bank and
Trust Company (SSBT) serves as custodian of the Fund.
Pursuant to the custodian agreement, SSBT receives a fee reduced
by credits, which are determined based on the average daily cash
balance the Fund maintains with SSBT. All credit balances, if
any, used to reduce the Funds custodian fees are reported
as a reduction of expenses in the Statement of Operations.
F Foreign Currency
Translation Investment valuations, other
assets, and liabilities initially expressed in foreign
currencies are translated each business day into U.S. dollars
based upon current exchange rates. Purchases and sales of
foreign investment securities and income and expenses
denominated in foreign currencies are translated into U.S.
dollars based upon currency exchange rates in effect on the
respective dates of such transactions. Recognized gains or
losses on investment transactions attributable to changes in
foreign currency exchange rates are recorded for financial
statement purposes as net realized gains and losses on
investments. That portion of unrealized gains and losses on
investments that results from fluctuations in foreign currency
exchange rates is not separately disclosed.
G Use of
Estimates The preparation of the financial
statements in conformity with 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.
H Indemnifications
Under the Funds organizational documents, its officers and
Trustees may be indemnified against certain liabilities and
expenses arising out of the performance of their duties to the
Fund. Under Massachusetts law, if certain conditions prevail,
shareholders of a Massachusetts business trust (such as the
Fund) could be deemed to have personal liability for the
obligations of the Fund. However, the Funds Declaration of
Trust contains an express disclaimer of liability on the part of
Fund shareholders and the By-laws provide that the Fund shall
assume the defense on behalf of any Fund shareholders. Moreover,
the By-laws also provide for indemnification out of Fund
property of any shareholder held personally liable solely by
reason of being or having been a shareholder for all loss or
expense arising from such liability. Additionally, in the normal
course of business, the Fund enters into agreements with service
providers that may contain indemnification clauses. The
Funds 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.
I Written
Options Upon the writing of a call or a put
option, 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 market value of the option written, in
accordance with the Funds 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. When an
index option is exercised, the Fund is required to deliver an
amount of cash determined by the excess of the strike price of
the option over the value of the index (in the case of a put) or
the excess of the value of the index over the strike price of
the option (in the case of a call) at contract termination. If a
put option on a security is exercised, the premium reduces the
cost basis of the securities purchased by the Fund. The Fund, as
a writer of an option, may have no control over whether the
underlying securities or other assets 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 or other
assets underlying the written option. The Fund may also bear the
risk of not being able to enter into a closing transaction if a
liquid secondary market does not exist.
2 Distributions
to Shareholders
Subject to its Managed Distribution Plan, the Fund intends to
make monthly distributions from its cash available for
distribution, which consists of the Funds dividends and
interest income after payment of Fund expenses, net option
premiums and net realized and unrealized gains on stock
investments. The Fund intends to distribute all or substantially
all of its net realized capital gains (reduced by available
capital loss carryforwards from prior years, if any).
Distributions are recorded on the ex-dividend date. 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.
Permanent differences between book and tax accounting relating
to distributions are reclassified to paid-in capital. For tax
purposes, distributions from short-term capital gains are
considered to be from ordinary income. Distributions in any year
may include a substantial return of capital component.
15
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
Notes
to Financial Statements continued
The tax character of distributions declared for the years ended
September 30, 2011 and September 30, 2010 was as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended September 30,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
Distributions declared from:
|
|
|
|
|
|
|
|
|
|
|
Ordinary income
|
|
$
|
2,713,519
|
|
|
$
|
3,679,239
|
|
|
|
Tax return of capital
|
|
|
43,318,670
|
|
|
|
54,445,644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the year ended September 30, 2011, accumulated net
realized loss was increased by $11,607 and accumulated
undistributed net investment income was increased by $11,607 due
to differences between book and tax accounting, primarily for
distributions from real estate investment trusts (REITs) and
foreign currency gain (loss). These reclassifications had no
effect on the net assets or net asset value per share of the
Fund.
As of September 30, 2011, the components of distributable
earnings (accumulated losses) and unrealized appreciation
(depreciation) on a tax basis were as follows:
|
|
|
|
|
|
|
|
|
Capital loss carryforward
|
|
$
|
(132,398,283
|
)
|
|
|
Net unrealized appreciation
|
|
$
|
1,182,185
|
|
|
|
|
|
|
|
|
|
|
|
|
The differences between components of distributable earnings
(accumulated losses) on a tax basis and the amounts reflected in
the Statement of Assets and Liabilities are primarily due to
distributions from REITs, wash sales and investments in
partnerships.
3 Investment
Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by EVM as compensation for
management and investment advisory services rendered to the
Fund. The fee is computed at an annual rate of 1.00% of the
Funds average daily gross assets and is payable monthly.
Gross assets as referred to herein represent net assets plus
obligations attributable to investment leverage, if any. The
Fund invests its cash in Cash Reserves Fund. EVM does not
currently receive a fee for advisory services provided to Cash
Reserves Fund. For the year ended September 30, 2011, the
Funds investment adviser fee amounted to $5,242,666. EVM
also serves as administrator of the Fund, but receives no
compensation.
During the year ended September 30, 2011, EVM reimbursed
the fund $13,565 for a trading error. The effect of the loss
incurred and the reimbursement by EVM of such amount had no
impact on total return.
Except for Trustees of the Fund who are not members of
EVMs organization, officers and Trustees receive
remuneration for their services to the Fund out of the
investment adviser fee. 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 year ended
September 30, 2011, no significant amounts have been
deferred. Certain officers and Trustees of the Fund are officers
of EVM.
4 Purchases
and Sales of Investments
Purchases and sales of investments, other than short-term
obligations, aggregated $404,519,809 and $471,488,386,
respectively, for the year ended September 30, 2011.
5 Common
Shares of Beneficial Interest
Common shares issued pursuant to the Funds dividend
reinvestment plan for the years ended September 30, 2011
and September 30, 2010 were 30,532 and 164,524,
respectively.
16
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
Notes
to Financial Statements continued
6 Federal
Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of
investments of the Fund at September 30, 2011, as
determined on a federal income tax basis, were as follows:
|
|
|
|
|
|
|
Aggregate cost
|
|
$
|
459,187,355
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross unrealized appreciation
|
|
$
|
44,254,420
|
|
|
|
Gross unrealized depreciation
|
|
|
(45,963,064
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized depreciation
|
|
$
|
(1,708,644
|
)
|
|
|
|
|
|
|
|
|
|
|
|
7 Financial
Instruments
The Fund may trade in financial instruments with off-balance
sheet risk in the normal course of its investing activities.
These financial instruments may include written options 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 do not necessarily represent the amounts
potentially subject to risk. The measurement of the risks
associated with these instruments is meaningful only when all
related and offsetting transactions are considered. A summary of
written call options at September 30, 2011 is included in
the Portfolio of Investments.
Written call options activity for the year ended
September 30, 2011 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
Premiums
|
|
|
|
|
Contracts
|
|
Received
|
|
|
|
|
Outstanding, beginning of year
|
|
|
89,697
|
|
|
$
|
13,017,697
|
|
|
|
Options written
|
|
|
342,901
|
|
|
|
44,817,631
|
|
|
|
Options terminated in closing purchase transactions
|
|
|
(222,313
|
)
|
|
|
(29,613,360
|
)
|
|
|
Options exercised
|
|
|
(7,142
|
)
|
|
|
(1,241,590
|
)
|
|
|
Options expired
|
|
|
(151,947
|
)
|
|
|
(18,700,591
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding, end of year
|
|
|
51,196
|
|
|
$
|
8,279,787
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September 30, 2011, the Fund had sufficient cash
and/or
securities to cover commitments under these 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. The Fund is not subject to counterparty credit risk
with respect to its written options as the Fund, not the
counterparty, is obligated to perform under such derivatives.
The fair value of open derivative instruments (not considered to
be hedging instruments for accounting disclosure purposes) and
whose primary underlying risk exposure is equity price risk at
September 30, 2011 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value
|
|
|
|
|
|
Derivative
|
|
Asset Derivatives
|
|
Liability
Derivatives(1)
|
|
|
|
|
Written options
|
|
$
|
|
|
|
$
|
(5,396,316
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Statement of Assets and Liabilities location: Written options
outstanding, at value. |
17
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
Notes
to Financial Statements continued
The effect of derivative instruments (not considered to be
hedging instruments for accounting disclosure purposes) on the
Statement of Operations and whose primary underlying risk
exposure is equity price risk for the year ended
September 30, 2011 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized Gain (Loss)
|
|
Change in Unrealized
|
|
|
|
|
on Derivatives Recognized
|
|
Appreciation (Depreciation) on
|
|
|
Derivative
|
|
in
Income(1)
|
|
Derivatives Recognized in
Income(2)
|
|
|
|
|
Written options
|
|
$
|
(13,830,949
|
)
|
|
$
|
9,757,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Statement of Operations location: Net realized gain
(loss) Written options. |
(2) |
|
Statement of Operations location: Change in unrealized
appreciation (depreciation) Written options. |
8 Fair
Value Measurements
Under generally accepted accounting principles for fair value
measurements, a three-tier hierarchy to prioritize the
assumptions, referred to as inputs, is used in valuation
techniques to measure fair value. The three-tier hierarchy of
inputs is summarized in the three broad levels listed below.
|
|
|
Level 1 quoted prices in active markets for
identical investments
|
|
|
Level 2 other significant observable inputs
(including quoted prices for similar investments, interest
rates, prepayment speeds, credit risk, etc.)
|
|
|
Level 3 significant unobservable inputs
(including a funds 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 September 30, 2011, the hierarchy of inputs used in
valuing the Funds investments and open derivative
instruments, which are carried at value, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Description
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
|
|
|
Common Stocks*
|
|
$
|
440,235,491
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
440,235,491
|
|
|
|
Short-Term Investments
|
|
|
|
|
|
|
17,243,220
|
|
|
|
|
|
|
|
17,243,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments
|
|
$
|
440,235,491
|
|
|
$
|
17,243,220
|
|
|
$
|
|
|
|
$
|
457,478,711
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covered Call Options Written
|
|
$
|
(5,396,316
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(5,396,316
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
(5,396,316
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(5,396,316
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
The level classification by major category of investments is the
same as the category presentation in the Portfolio of
Investments.
|
The Fund held no investments or other financial instruments as
of September 30, 2010 whose fair value was determined using
Level 3 inputs. At September 30, 2011, the value of
investments transferred between Level 1 and Level 2,
if any, during the year then ended was not significant.
18
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
Report
of Independent Registered Public Accounting Firm
To the Trustees and
Shareholders of Eaton Vance Enhanced Equity Income Fund:
We have audited the accompanying statement of assets and
liabilities of Eaton Vance Enhanced Equity Income Fund (the
Fund), including the portfolio of investments, as of
September 30, 2011, and the related statement of operations
for the year then ended, the statements of changes in net assets
for each of the two years in the period then ended, and the
financial highlights for each of the five years in the period
then ended. These financial statements and financial highlights
are the responsibility of the Funds management. Our
responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits 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 and
financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an
audit of its internal control over financial reporting. Our
audits included 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 Funds
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
September 30, 2011, by correspondence with the custodian
and brokers; where replies were not received from brokers, we
performed other auditing procedures. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial
highlights referred to above present fairly, in all material
respects, the financial position of Eaton Vance Enhanced Equity
Income Fund as of September 30, 2011, the results of its
operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and
the financial highlights for each of the five years in the
period then ended, in conformity with accounting principles
generally accepted in the United States of America.
DELOITTE &
TOUCHE LLP
Boston, Massachusetts
November 16, 2011
19
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
Federal
Tax Information (Unaudited)
The
Form 1099-DIV
you receive in January 2012 will show the tax status of all
distributions paid to your account in calendar year 2011.
Shareholders are advised to consult their own tax adviser with
respect to the tax consequences of their investment in the Fund.
As required by the Internal Revenue Code
and/or
regulations, shareholders must be notified within 60 days
of the Funds 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
$8,431,889 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 Funds dividend distribution that
qualifies under tax law. For the Funds fiscal 2011
ordinary income dividends, 100% qualifies for the corporate
dividends received deduction.
20
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
Annual
Meeting of Shareholders (Unaudited)
The Fund held its Annual Meeting of Shareholders on
July 22, 2011. The following action was taken by the
shareholders:
Item 1: The election of Benjamin C. Esty,
Thomas E. Faust Jr. and Allen R. Freedman as Class I
Trustees of the Fund for a three-year term expiring in 2014.
|
|
|
|
|
|
|
|
|
|
|
Nominee for Trustee
|
|
Number of Shares
|
|
|
|
Elected by All Shareholders
|
|
For
|
|
|
Withheld
|
|
|
|
|
|
Benjamin C. Esty
|
|
|
36,073,044
|
|
|
|
1,111,456
|
|
|
|
Thomas E. Faust Jr.
|
|
|
36,068,058
|
|
|
|
1,116,442
|
|
|
|
Allen R. Freedman
|
|
|
36,013,594
|
|
|
|
1,170,906
|
|
|
|
21
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
Dividend
Reinvestment Plan
The Fund offers a dividend reinvestment plan (Plan) pursuant to
which shareholders may elect to have distributions automatically
reinvested in common shares (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 American Stock Transfer &
Trust Company (AST) as dividend paying agent. On the
distribution payment date, if the NAV 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 NAV per Share
or 95% of the market price. Otherwise, Shares generally will be
purchased on the open market by AST, the Plan agent (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 the Funds transfer agent
re-register your Shares in your name or you will not be able to
participate.
The Agents service fee for handling distributions will be
paid by the Fund. Plan participants will be charged their pro
rata share of brokerage commissions on all open-market purchases.
Plan participants may withdraw from the Plan at any time by
writing to the 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 Agent to sell part or all of his
or her Shares and remit the proceeds, the 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 Agent. Any inquiries regarding the
Plan can be directed to the Agent at 1-866-439-6787.
22
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
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 DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.
This authorization form, when signed, should be mailed to the
following address:
Eaton Vance Enhanced Equity Income Fund
c/o American Stock Transfer & Trust Company
P.O. Box 922
Wall Street Station
New York, NY
10269-0560
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 closed-end management investment company and has no
employees.
Number of
Shareholders
As of September 30, 2011, Fund records indicate that there
are 106 registered shareholders and approximately 30,250
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 Fund
reports directly, which contain important information about the
Fund, please write or call:
Eaton Vance Distributors, Inc.
Two International Place
Boston, MA 02110
1-800-262-1122
New York Stock
Exchange symbol
The New York Stock Exchange symbol is EOI.
23
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
Board
of Trustees Contract Approval
Overview
of the Contract Review Process
The Investment Company Act of 1940, as amended (the 1940
Act), provides, in substance, that each investment
advisory agreement between a fund and its investment adviser
will continue in effect from year to year only if its
continuance is approved at least annually by the funds
board of trustees, including by a vote of a majority of the
trustees who are not interested persons of the fund
(Independent Trustees), cast in person at a meeting
called for the purpose of considering such approval.
At a meeting of the Boards of Trustees (each a
Board) of the Eaton Vance group of mutual funds (the
Eaton Vance Funds) held on April 25, 2011, the
Board, including a majority of the Independent Trustees, voted
to approve continuation of existing advisory and
sub-advisory
agreements for the Eaton Vance Funds for an additional one-year
period. In voting its approval, the Board relied upon the
affirmative recommendation of the Contract Review Committee of
the Board, which is a committee comprised exclusively of
Independent Trustees. Prior to making its recommendation, the
Contract Review Committee reviewed information furnished for a
series of meetings of the Contract Review Committee held between
February and April 2011. Such information included, among
other things, the following:
Information about
Fees, Performance and Expenses
|
|
|
|
|
An independent report comparing the advisory and related fees
paid by each fund with fees paid by comparable funds;
|
|
|
An independent report comparing each funds total expense
ratio and its components to comparable funds;
|
|
|
An independent report comparing the investment performance of
each fund (including yield data and Sharpe and information
ratios where relevant) to the investment performance of
comparable funds over various time periods;
|
|
|
Data regarding investment performance in comparison to relevant
peer groups of similarly managed funds and appropriate indices;
|
|
|
For each fund, comparative information concerning the fees
charged and the services provided by each adviser in managing
other mutual funds and institutional accounts using investment
strategies and techniques similar to those used in managing such
fund;
|
|
|
Profitability analyses for each adviser with respect to each
fund;
|
Information about
Portfolio Management
|
|
|
|
|
Descriptions of the investment management services provided to
each fund, including the investment strategies and processes
employed, and any changes in portfolio management processes and
personnel;
|
|
|
Information about the allocation of brokerage and the benefits
received by each adviser as a result of brokerage allocation,
including information concerning the acquisition of research
through client commission arrangements
and/or the
funds policies with respect to soft dollar
arrangements;
|
|
|
Data relating to portfolio turnover rates of each fund;
|
|
|
The procedures and processes used to determine the fair value of
fund assets and actions taken to monitor and test the
effectiveness of such procedures and processes;
|
Information about
each Adviser
|
|
|
|
|
Reports detailing the financial results and condition of each
adviser;
|
|
|
Descriptions of the qualifications, education and experience of
the individual investment professionals whose responsibilities
include portfolio management and investment research for the
funds, and information relating to their compensation and
responsibilities with respect to managing other mutual funds and
investment accounts;
|
|
|
Copies of the Codes of Ethics of each adviser and its
affiliates, together with information relating to compliance
with and the administration of such codes;
|
|
|
Copies of or descriptions of each advisers policies and
procedures relating to proxy voting, the handling of corporate
actions and class actions;
|
|
|
Information concerning the resources devoted to compliance
efforts undertaken by each adviser and its affiliates on behalf
of the funds (including descriptions of various compliance
programs) and their record of compliance with investment
policies and restrictions, including policies with respect to
market-timing, late trading and selective portfolio disclosure,
and with policies on personal securities transactions;
|
|
|
Descriptions of the business continuity and disaster recovery
plans of each adviser and its affiliates;
|
|
|
A description of Eaton Vance Managements procedures for
overseeing third party advisers and
sub-advisers;
|
Other Relevant
Information
|
|
|
|
|
Information concerning the nature, cost and character of the
administrative and other non-investment management services
provided by Eaton Vance Management and its affiliates;
|
|
|
Information concerning management of the relationship with the
custodian, subcustodians and fund accountants by each adviser or
the funds administrator; and
|
|
|
The terms of each advisory agreement.
|
In addition to the information identified above, the Contract
Review Committee considered information provided from time to
time by each adviser throughout the year at meetings of the
Board and its committees. Over the course of the twelve-month
period ended April 30, 2011, with respect to one
24
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
Board
of Trustees Contract Approval continued
or more funds, the Board met nine times and the Contract Review
Committee, the Audit Committee, the Governance Committee, the
Portfolio Management Committee and the Compliance Reports and
Regulatory Matters Committee, each of which is a Committee
comprised solely of Independent Trustees, met nine, fifteen,
seven, eight and twelve times, respectively. At such meetings,
the Trustees received, among other things, presentations by the
portfolio managers and other investment professionals of each
adviser relating to the investment performance of each fund and
the investment strategies used in pursuing the funds
investment objective including, where relevant, the use of
derivative instruments, as well as trading policies and
procedures and risk management techniques.
For funds that invest through one or more underlying portfolios,
the Board considered similar information about the portfolio(s)
when considering the approval of advisory agreements. In
addition, in cases where the funds investment adviser has
engaged a
sub-adviser,
the Board considered similar information about the
sub-adviser
when considering the approval of any
sub-advisory
agreement.
The Contract Review Committee was assisted throughout the
contract review process by Goodwin Procter LLP, legal counsel
for the Independent Trustees. The members of the Contract Review
Committee relied upon the advice of such counsel and their own
business judgment in determining the material factors to be
considered in evaluating each advisory and
sub-advisory
agreement and the weight to be given to each such factor. The
conclusions reached with respect to each advisory and
sub-advisory
agreement were based on a comprehensive evaluation of all the
information provided and not any single factor. Moreover, each
member of the Contract Review Committee may have placed varying
emphasis on particular factors in reaching conclusions with
respect to each advisory and
sub-advisory
agreement.
Results
of the Process
Based on its consideration of the foregoing, and such other
information as it deemed relevant, including the factors and
conclusions described below, the Contract Review Committee
concluded that the continuance of the investment advisory
agreement of Eaton Vance Enhanced Equity Income Fund (the
Fund) with Eaton Vance Management (the
Adviser), including its fee structure, is in the
interests of shareholders and, therefore, the Contract Review
Committee recommended to the Board approval of the agreement.
The Board accepted the recommendation of the Contract Review
Committee as well as the factors considered and conclusions
reached by the Contract Review Committee with respect to the
agreement. Accordingly, the Board, including a majority of the
Independent Trustees, voted to approve continuation of the
investment advisory agreement for the Fund.
Nature,
Extent and Quality of Services
In considering whether to approve the investment advisory
agreement of the Fund, the Board evaluated the nature, extent
and quality of services provided to the Fund by the Adviser.
The Board considered the Advisers management capabilities
and investment process with respect to the types of investments
held by the Fund, including the education, experience and number
of its investment professionals and other personnel who provide
portfolio management, investment research, and similar services
to the Fund. In particular, the Board evaluated, where relevant,
the abilities and experience of such investment personnel in
analyzing factors such as credit risk, and special
considerations relevant to investing in particular markets or
industries and implementing the Funds options strategy.
The Board considered the Advisers in-house research
capabilities as well as other resources available to personnel
of the Adviser. The Board also took into account the resources
dedicated to portfolio management and other services, including
the compensation methods of the Adviser to recruit and retain
investment personnel, and the time and attention devoted to the
Fund by senior management.
The Board also reviewed the compliance programs of the Adviser
and relevant affiliates thereof. Among other matters, the Board
considered compliance and reporting matters relating to personal
trading by investment personnel, selective disclosure of
portfolio holdings, late trading, frequent trading, portfolio
valuation, business continuity and the allocation of investment
opportunities. The Board also evaluated the responses of the
Adviser and its affiliates to requests in recent years from
regulatory authorities such as the Securities and Exchange
Commission and the Financial Industry Regulatory Authority.
The Board considered shareholder and other administrative
services provided or managed by Eaton Vance Management and its
affiliates, including transfer agency and accounting services.
The Board evaluated the benefits to shareholders of investing in
a fund that is a part of a large family of funds.
After consideration of the foregoing factors, among others, the
Board concluded that the nature, extent and quality of services
provided by the Adviser, taken as a whole, are appropriate and
consistent with the terms of the investment advisory agreement.
Fund Performance
The Board compared the Funds investment performance to a
relevant universe of comparable funds identified by an
independent data provider as well as a peer group of similarly
managed funds and appropriate benchmark indices. The Board
reviewed comparative performance data for the one-, three-, and
five-year periods ended September 30, 2010 for the Fund. On
the basis of the foregoing and other relevant information
provided by the Adviser in response to inquiries from the
Contract Review Committee, the Board concluded that the
performance of the Fund was satisfactory.
25
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
Board
of Trustees Contract Approval continued
Management
Fees and Expenses
The Board reviewed contractual investment advisory fee rates
payable by the Fund (referred to as management
fees). As part of its review, the Board considered the
management fees and the Funds total expense ratio for the
year ended September 30, 2010, as compared to a group of
similarly managed funds selected by an independent data
provider. The Board also considered factors that had an impact
on Fund expense ratios, as identified by management in response
to inquiries from the Contract Review Committee, as well as
actions being taken to reduce expenses at the Eaton Vance fund
complex level, including the negotiation of reduced fees for
transfer agency and custody services.
After reviewing the foregoing information, and in light of the
nature, extent and quality of the services provided by the
Adviser, the Board concluded that the management fees charged
for advisory and related services are reasonable.
Profitability
The Board reviewed the level of profits realized by the Adviser
and relevant affiliates thereof in providing investment advisory
and administrative services to the Fund and to all Eaton Vance
Funds as a group. The Board considered the level of profits
realized with and without regard to revenue sharing or other
payments by the Adviser and its affiliates to third parties in
respect of distribution services. The Board also considered
other direct or indirect benefits received by the Adviser and
its affiliates in connection with their relationship with the
Fund, including the benefits of research services that may be
available to the Adviser as a result of securities transactions
effected for the Fund and other investment advisory clients.
The Board concluded that, in light of the foregoing factors and
the nature, extent and quality of the services rendered, the
profits realized by the Adviser and its affiliates are
reasonable.
Economies
of Scale
In reviewing management fees and profitability, the Board also
considered the extent to which the Adviser and its affiliates,
on the one hand, and the Fund, on the other hand, can expect to
realize benefits from economies of scale as the assets of the
Fund increase. The Board acknowledged the difficulty in
accurately measuring the benefits resulting from the economies
of scale with respect to the management of any specific fund or
group of funds. The Board reviewed data summarizing the
increases and decreases in the assets of the Fund and of all
Eaton Vance Funds as a group over various time periods, and
evaluated the extent to which the total expense ratio of the
Fund and the profitability of the Adviser and its affiliates may
have been affected by such increases or decreases. Based upon
the foregoing, the Board concluded that the Fund currently
shares in the benefits from economies of scale. The Board also
considered the fact that the Fund is not continuously offered
and concluded that, in light of the level of the Advisers
profits with respect to the Fund, the implementation of
breakpoints in the advisory fee schedule is not appropriate at
this time.
26
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
Management
and Organization
Fund Management. The Trustees of Eaton Vance
Enhanced Equity Income Fund (the Fund) are responsible for the
overall management and supervision of the Funds 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. 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 Two International Place, Boston,
Massachusetts 02110. 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 a wholly-owned subsidiary of EVC. Each officer
affiliated with Eaton Vance may hold a position with other Eaton
Vance affiliates that is comparable to his or her position with
EVM listed below. Each Trustee oversees 179 portfolios in the
Eaton Vance Complex (including all master and feeder funds in a
master feeder structure). Each officer serves as an officer of
certain other Eaton Vance funds. Each Trustee serves for a three
year term. Each officer serves until his or her successor is
elected.
|
|
|
|
|
|
|
|
|
Position(s)
|
|
Term of Office;
|
|
|
|
|
with the
|
|
Length of
|
|
Principal Occupation(s) and Directorships
|
Name and Year of Birth
|
|
Fund
|
|
Service
|
|
During Past Five Years and Other Relevant Experience
|
|
|
|
Interested Trustee
|
Thomas E. Faust Jr.
1958
|
|
Class I Trustee
|
|
Until 2014. 3 years.
Trustee
since 2007.
|
|
Chairman, Chief Executive Officer and President of EVC, Director
and President of EV, Chief Executive Officer and President of
EVM and BMR, and Director of EVD. Trustee
and/or
officer of 179 registered investment companies and 1 private
investment company managed by EVM or BMR. Mr. Faust is an
interested person because of his positions with EVM, BMR, EVD,
EVC and EV, which are affiliates of the Fund.
Directorships in the Last Five
Years.(1)
Director of EVC.
|
|
Noninterested
Trustees
|
Scott E. Eston
1956
|
|
Class I Trustee
|
|
Until 2014. 3 years.
Trustee
since 2011.
|
|
Private investor; formerly held various positions at Grantham,
Mayo, Van Otterloo and Co., L.L.C. (investment management firm)
(1997-2009),
including Chief Operating Officer
(2002-2009),
Chief Financial Officer
(1997-2009)
and Chairman of the Executive Committee
(2002-2008);
President and Principal Executive Officer, GMO Trust
(2006-2009)
(open-end registered investment company); Partner, Coopers and
Lybrand L.L.P. (public accounting firm)
(1987-1997).
Directorships in the Last Five Years. None.
|
Benjamin C. Esty
1963
|
|
Class I Trustee
|
|
Until 2014. 3 years.
Trustee
since 2005.
|
|
Roy and Elizabeth Simmons Professor of Business Administration
and Finance Unit Head, Harvard University Graduate School of
Business Administration.
Directorships in the Last Five
Years.(1)
None.
|
Allen R. Freedman
1940
|
|
Class I Trustee
|
|
Until 2014. 3 years.
Trustee
since 2007.
|
|
Private Investor. Former Chairman
(2002-2004)
and a Director
(1983-2004)
of Systems & Computer Technology Corp. (provider of
software to higher education). Formerly, a Director of Loring
Ward International (fund distributor)
(2005-2007).
Former Chairman and a Director of Indus International, Inc.
(provider of enterprise management software to the power
generating industry)
(2005-2007).
Former Chief Executive Officer of Assurant, Inc. (insurance
provider)
(1979-2000).
Directorships in the Last Five
Years.(1)
Director of Stonemor Partners, L.P. (owner and operator
of cemeteries). Formerly, Director of Assurant, Inc. (insurance
provider)
(1979-2011).
|
William H. Park
1947
|
|
Class II Trustee
|
|
Until 2012. 3 years.
Trustee
since 2004.
|
|
Consultant and private investor. Formerly, Chief Financial
Officer, Aveon Group L.P. (investment management firm)
(2010-2011).
Formerly Vice Chairman, Commercial Industrial Finance Corp.
(specialty finance company)
(2006-2010).
Formerly, President and Chief Executive Officer, Prizm Capital
Management, LLC (investment management firm)
(2002-2005).
Formerly, Executive Vice President and Chief Financial Officer,
United Asset Management Corporation (investment management firm)
(1982-2001).
Formerly, Senior Manager, Price Waterhouse (now
PricewaterhouseCoopers) (an independent registered public
accounting firm)
(1972-1981).
Directorships in the Last Five
Years.(1)
None.
|
Ronald A. Pearlman
1940
|
|
Class II Trustee
|
|
Until 2012. 3 years.
Trustee
since 2004.
|
|
Professor of Law, Georgetown University Law Center. Formerly,
Deputy Assistant Secretary (Tax Policy) and Assistant Secretary
(Tax Policy), U.S. Department of the Treasury
(1983-1985).
Formerly, Chief of Staff, Joint Committee on Taxation, U.S.
Congress
(1988-1990).
Directorships in the Last Five
Years.(1)
None.
|
27
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
Management
and Organization continued
|
|
|
|
|
|
|
|
|
Position(s)
|
|
Term of Office;
|
|
|
|
|
with the
|
|
Length of
|
|
Principal Occupation(s) and Directorships
|
Name and Year of Birth
|
|
Fund
|
|
Service
|
|
During Past Five Years and Other Relevant Experience
|
|
|
Noninterested
Trustees (continued)
|
Helen Frame Peters
1948
|
|
Class III Trustee
|
|
Until 2013. 3 years.
Trustee
since 2008.
|
|
Professor of Finance, Carroll School of Management, Boston
College. Formerly, Dean, Carroll School of Management, Boston
College
(2000-2002).
Formerly, Chief Investment Officer, Fixed Income, Scudder Kemper
Investments (investment management firm)
(1998-1999).
Formerly, Chief Investment Officer, Equity and Fixed Income,
Colonial Management Associates (investment management firm)
(1991-1998).
Directorships in the Last Five
Years.(1)
Formerly, Director of BJs Wholesale Club, Inc. (wholesale
club retailer)
(2004-2011).
Formerly, Trustee of SPDR Index Shares Funds and SPDR
Series Trust (exchange traded funds)
(2000-2009).
Formerly, Director of Federal Home Loan Bank of Boston (a bank
for banks)
(2007-2009).
|
Lynn A. Stout
1957
|
|
Class III Trustee
|
|
Until 2013. 3 years.
Trustee
since 2004.
|
|
Paul Hastings Professor of Corporate and Securities Law (since
2006) and Professor of Law
(2001-2006),
University of California at Los Angeles School of Law.
Directorships in the Last Five
Years.(1)
None.
|
Harriett Tee Taggart
1948
|
|
Class II Trustee
|
|
Until 2012.
1 year.
Trustee
since 2011.
|
|
Managing Director, Taggart Associates (a professional practice
firm); formerly, Partner and Senior Vice President, Wellington
Management Company, LLP (investment management firm)
(1983-2006).
Directorships in the Last Five Years. Director of
Albemarle Corporation (chemicals manufacturer) (since
2007) and The Hanover Group (specialty property and
casualty insurance company) (since 2009). Formerly, Director of
Lubrizol Corporation (specialty chemicals)
(2007-2011).
|
Ralph F. Verni
1943
|
|
Chairman of the Board and Class III Trustee
|
|
Until 2013. 3 years. Chairman of the Board since 2007 and
Trustee
since 2005.
|
|
Consultant and private investor. Formerly, Chief Investment
Officer
(1982-1992),
Chief Financial Officer
(1988-1990)
and Director
(1982-1992),
New England Life. Formerly, Chairperson, New England Mutual
Funds
(1982-1992).
Formerly, President and Chief Executive Officer, State Street
Management & Research
(1992-2000).
Formerly, Chairperson, State Street Research Mutual Funds
(1992-2000).
Formerly, Director, W.P. Carey, LLC
(1998-2004)
and First Pioneer Farm Credit Corp.
(2002-2006).
Directorships in the Last Five
Years.(1)
None.
|
|
Principal Officers
who are not Trustees
|
|
|
Position(s)
|
|
|
|
|
|
|
with the
|
|
Length of
|
|
Principal Occupation(s)
|
Name and Year of Birth
|
|
Fund
|
|
Service
|
|
During Past Five Years
|
|
|
Walter A. Row, III
1957
|
|
President
|
|
Since
2011.(2)
|
|
Vice President of EVM and BMR.
|
Duncan W. Richardson
1957
|
|
Vice President
|
|
Since
2011.(2)
|
|
Director of EVC and Executive Vice President and Chief Equity
Investment Officer of EVC, EVM and BMR.
|
Barbara E. Campbell
1957
|
|
Treasurer
|
|
Since 2005.
|
|
Vice President of EVM and BMR.
|
Maureen A. Gemma
1960
|
|
Vice President, Secretary and Chief Legal Officer
|
|
Vice President since 2011, Secretary since 2007 and Chief Legal
Officer since 2008.
|
|
Vice President of EVM and BMR.
|
Paul M. ONeil
1953
|
|
Chief Compliance Officer
|
|
Since 2004.
|
|
Vice President of EVM and BMR.
|
|
|
|
(1) |
|
During their respective tenures, the Trustees (except Eston and
Taggart) also served as trustees of one or more of the following
Eaton Vance funds (which operated in the years noted): Eaton
Vance Credit Opportunities Fund (launched in 2005 and terminated
in 2010); Eaton Vance Insured Florida Plus Municipal Bond Fund
(launched in 2002 and terminated in 2009); and Eaton Vance
National Municipal Income Trust (launched in 1998 and terminated
in 2009). |
(2) |
|
Prior to 2011, Mr. Row was Vice President of the Fund since
2004 and Mr. Richardson was President of the Fund since
2004. |
28
Eaton Vance
Enhanced
Equity Income Fund
September 30, 2011
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 customers 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, Eaton
Vance Distributors, Inc., Eaton Vance Trust Company, Eaton
Vance Managements Real Estate Investment Group and Boston
Management and Research. In addition, our Privacy Policy applies
only to those Eaton Vance customers who are individuals and who
have a direct relationship with us. If a customers account
(i.e., fund shares) is held in the name of a third-party
financial advisor/broker-dealer, it is likely that only such
advisors privacy policies apply to the customer. This
notice supersedes all previously issued privacy disclosures. For
more information about Eaton Vances Privacy Policy, please
call
1-800-262-1122.
Delivery of Shareholder
Documents. The Securities and Exchange
Commission (SEC) permits funds to deliver only one copy of
shareholder documents, including prospectuses, proxy statements
and shareholder reports, to fund investors with multiple
accounts at the same residential or post office box address.
This practice is often called householding and it
helps eliminate duplicate mailings to shareholders. Eaton
Vance, or your financial advisor, may household the mailing of
your documents indefinitely unless you instruct Eaton Vance, or
your financial advisor, otherwise. If you would prefer that
your Eaton Vance documents not be householded, please contact
Eaton Vance at
1-800-262-1122,
or contact your financial advisor. Your instructions that
householding not apply to delivery of your Eaton Vance documents
will be effective within 30 days of receipt by Eaton Vance
or your financial advisor.
Portfolio
Holdings. Each Eaton Vance Fund and its
underlying Portfolio(s) (if applicable) will file a schedule of
portfolio holdings on
Form N-Q
with the SEC for the first and third quarters of each fiscal
year. The
Form N-Q
will be available on the Eaton Vance website at
www.eatonvance.com, by calling Eaton Vance at
1-800-262-1122
or in the EDGAR database on the SECs website at
www.sec.gov.
Form N-Q
may also be reviewed and copied at the SECs public
reference room in Washington, D.C. (call
1-800-732-0330
for information on the operation of the public reference room).
Proxy
Voting. From time to time, funds are required to
vote proxies related to the securities held by the funds. The
Eaton Vance Funds or their underlying Portfolios (if applicable)
vote proxies according to a set of policies and procedures
approved by the Funds and Portfolios Boards. You may
obtain a description of these policies and procedures and
information on how the Funds or Portfolios voted proxies
relating to portfolio securities during the most recent 12-month
period ended June 30, without charge, upon request, by
calling
1-800-262-1122
and by accessing the SECs website at www.sec.gov.
Additional Notice to
Shareholders. The Fund may purchase shares of
its common stock in the open market when they trade at a
discount to net asset value or at other times if the Fund
determines such purchases are advisable. There can be no
assurance that the Fund will take such action or that such
purchases would reduce the discount.
Closed-End
Fund Information. The Eaton Vance
closed-end funds make certain quarterly fund performance data
and information about portfolio characteristics (such as top
holdings and asset allocation) available on the Eaton Vance
website after the end of each calendar quarter-end. Certain
month end fund performance data for the funds, including total
returns, are posted to the website shortly after the end of each
calendar month. Portfolio holdings for the most recent calendar
quarter-end are also posted to the website approximately
30 days following the end of the quarter. This information
is available at www.eatonvance.com on the fund information pages
under Individual Investors Closed-End
Funds.
29
This Page Intentionally Left Blank
This Page Intentionally Left Blank
This Page Intentionally Left Blank
Investment
Adviser and Administrator
Eaton
Vance Management
Two International Place
Boston, MA 02110
Custodian
State
Street Bank and Trust Company
200 Clarendon Street
Boston, MA 02116
Transfer
Agent
American
Stock Transfer & Trust Company
59 Maiden Lane
Plaza Level
New York, NY 10038
Independent
Registered Public Accounting Firm
Deloitte &
Touche LLP
200 Berkeley Street
Boston, MA
02116-5022
Fund
Offices
Two International Place
Boston, MA 02110
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 registrants Board has designated William H. Park, an independent trustee, as its audit
committee financial expert. Mr. Park is a certified public accountant who is a consultant and
private investor. Previously, he served as the Chief Financial Officer of Aveon Group, L.P. (an
investment management firm), as the Vice Chairman of Commercial Industrial Finance Corp. (specialty
finance company), as President and Chief Executive Officer of Prizm Capital Management, LLC
(investment management firm), as Executive Vice President and Chief Financial Officer of United
Asset Management
Corporation (an institutional investment management firm) and as a Senior Manager
at Price Waterhouse (now PricewaterhouseCoopers) (an independent registered public accounting
firm).
Item 4. Principal Accountant Fees and Services (a) (d)
The following table presents the aggregate fees billed to the registrant for the registrants
fiscal years ended September 30, 2010 and September 30, 2011 by the registrants principal
accountant, Deloitte & Touche LLP (D&T), for professional services rendered for the audit of the
registrants annual financial statements and fees billed for other services rendered by D&T during
such periods.
|
|
|
|
|
|
|
|
|
Fiscal Years Ended |
|
9/30/10 |
|
|
9/30/11 |
|
|
Audit Fees |
|
$ |
42,510 |
|
|
$ |
42,940 |
|
Audit-Related Fees(1) |
|
$ |
0 |
|
|
$ |
0 |
|
Tax Fees(2) |
|
$ |
18,620 |
|
|
$ |
18,810 |
|
All Other Fees(3) |
|
$ |
1,400 |
|
|
$ |
1,200 |
|
|
|
|
Total |
|
$ |
62,530 |
|
|
$ |
62,950 |
|
|
|
|
|
|
|
|
|
|
(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 financial statements
and are not reported under the category of audit fees. |
|
(2) |
|
Tax fees consist of the aggregate fees billed for professional services rendered by
the principal accountant relating to tax compliance, tax advice, and tax planning and
specifically include fees for tax return preparation and other related tax compliance/planning
matters. |
|
(3) |
|
All other fees consist of the aggregate fees billed for products and services
provided by the principal accountant other than audit, audit-related, and tax services. |
|
(e)(1) The registrants audit committee has adopted policies and procedures relating to the
pre-approval of services provided by the registrants 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 registrants audit committee at least annually. The registrants
audit committee maintains full responsibility for the appointment, compensation, and oversight of
the work of the registrants principal accountant.
(e)(2) No services described in paragraphs (b)-(d) above were approved by the registrants 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 D&T for the registrants fiscal years ended
September 30, 2010 and September 30, 2011; and (ii) the aggregate non-audit fees (i.e., fees for
audit-related, tax, and other services) billed to the Eaton Vance organization by D&T for the same
time periods.
|
|
|
|
|
|
|
|
|
Fiscal Years Ended |
|
9/30/10 |
|
|
9/30/11 |
|
|
Registrant |
|
$ |
20,020 |
|
|
$ |
20,010 |
|
|
|
|
Eaton Vance(1) |
|
$ |
278,901 |
|
|
$ |
226,431 |
|
|
|
|
|
|
|
(1) |
|
The investment adviser to the registrant, as well as any of its affiliates that provide
ongoing services to the registrant, are subsidiaries of Eaton Vance Corp. |
(h) The registrants audit committee has considered whether the provision by the registrants
principal accountant of non-audit services to the registrants 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 accountants 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. William H. Park
(Chair), Scott E. Eston, Helen Frame Peters, Lynn A. Stout and Ralph F. Verni are the members of
the registrants 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 Funds
investment adviser and adopted the investment advisers proxy voting policies and procedures (the
Policies) which are described below. The Trustees will review the Funds 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 Funds 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 Boards Special Committee except as contemplated under the Fund
Policy. The Boards Special Committee will instruct the investment adviser on the appropriate
course of action.
The Policies are designed to promote accountability of a companys management to its shareholders
and to align the interests of management with those shareholders. An independent proxy
voting service (Agent), currently Institutional Shareholder Services, Inc., has been retained to
assist in the voting of proxies through the provision of vote analysis, implementation and
recordkeeping and disclosure services. The investment adviser will generally vote proxies through
the Agent. The Agent is required
to vote all proxies and/or refer them back to the investment
adviser pursuant to the Policies. It is
generally the policy of the investment adviser to vote in accordance with the recommendation of the
Agent. The Agent shall refer to the investment adviser proxies relating to mergers and
restructurings, and the disposition of assets, termination, liquidation and mergers contained in
mutual fund proxies. The investment adviser will normally vote against anti-takeover measures and
other proposals designed to limit the ability of shareholders to act on possible transactions,
except in the case of closed-end management investment companies. The investment adviser generally
supports management on social and environmental proposals. 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 or the economic effect on
shareholders interests or the value of the portfolio holding is indeterminable or insignificant.
In addition, the investment adviser will monitor situations that may result in a conflict of
interest between the Funds 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 advisers 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 personnel of the investment adviser identified in the
Policies. If such personnel expects to instruct the Agent to vote such proxies in a manner
inconsistent with the guidelines of the Policies or the recommendation of the Agent, the personnel
will consult with members of senior management of the investment adviser to determine if a material
conflict of interests exists. If it is determined that a material conflict does exist, the
investment adviser will seek instruction on how to vote from the Special Committee.
Information on how the Fund voted proxies relating to portfolio securities during the most recent
12 month period ended June 30 is available (1) without charge, upon request, by calling
1-800-262-1122, and (2) on the Securities and Exchange
Commissions website at http://www.sec.gov.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Walter A. Row, Michael A. Allison and other Eaton Vance Management (EVM) investment professionals
comprise the investment team responsible for the overall and day-to-day management of the Funds
investments. Mr. Row is a Vice President and the Director of Equity Research at EVM and Boston
Management and Research (BMR). He is a member of EVMs Equity Strategy Committee, manages other
Eaton Vance registered investment companies and has been an equity analyst and member of EVMs
equity research team since 1996. Mr. Allison is a Vice President of EVM and BMR and co-manages
other Eaton Vance registered investment companies. He joined Eaton Vance in 2000.
The following tables show, as of the Funds most recent fiscal year end, the number of accounts
each portfolio manager managed in each of the listed categories and the total assets (in millions
of dollars) in the accounts managed within each category. The table also shows the number of
accounts with respect to which the advisory fee is based on the performance of the account, if any,
and the total assets (in millions of dollars) in those accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Accounts |
|
Total Assets of |
|
|
Number of All |
|
Total Assets of |
|
Paying a |
|
Accounts Paying a |
|
|
Accounts |
|
All Accounts |
|
Performance Fee |
|
Performance Fee |
Michael A. Allison |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Registered Investment
Companies |
|
|
7 |
|
|
$ |
13,922.3 |
|
|
|
0 |
|
|
$ |
0 |
|
Other Pooled
Investment
Vehicles |
|
|
15 |
|
|
$ |
11,556.4 |
|
|
|
0 |
|
|
$ |
0 |
|
Other Accounts |
|
|
1 |
|
|
$ |
2.1 |
|
|
|
0 |
|
|
$ |
0 |
|
Walter A. Row, III
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Registered Investment
Companies |
|
|
9 |
|
|
$ |
8,698.8 |
|
|
|
0 |
|
|
$ |
0 |
|
Other Pooled
Investment
Vehicles |
|
|
0 |
|
|
$ |
0 |
|
|
|
0 |
|
|
$ |
0 |
|
Other Accounts |
|
|
0 |
|
|
$ |
0 |
|
|
|
0 |
|
|
$ |
0 |
|
The following table shows the dollar range of Fund shares beneficially owned by each portfolio
manager as of the Funds most recent fiscal year end.
|
|
|
|
|
Portfolio Manager |
|
Dollar
Range of Equity Securities Owned in the Fund |
Walter A. Row |
|
$ |
10,001-$50,000 |
|
Michael A. Allison |
|
None |
Potential for Conflicts of Interest. It is possible that conflicts of interest may arise in
connection with a portfolio managers management of the Funds investments on the one hand and
investments of other accounts for which a portfolio manager is responsible on the other. For
example, a portfolio manager may have conflicts of interest in allocating management time,
resources and investment opportunities among the Fund and other accounts he or she advises. In
addition, due to differences in the investment strategies or restrictions between the Fund and the
other accounts, a portfolio manager may take action with respect to another account that differs
from the action taken with respect to the Fund. In some cases, another account managed by a
portfolio manager may compensate the investment adviser based on the performance of the securities
held by that account. The existence of such a performance based fee may create additional conflicts
of interest for a portfolio manager in the allocation of management time, resources and investment
opportunities. Whenever conflicts of interest arise, a portfolio manager will endeavor to exercise
his or her discretion in a manner that he or she believes is equitable to all interested persons.
EVM has adopted several policies and procedures designed to address these potential conflicts
including a code of ethics and policies which govern the investment advisers trading practices,
including among other things the aggregation and allocation of trades among clients, brokerage
allocation, cross trades and best execution.
Compensation Structure for EVM
Compensation of EVMs portfolio managers and other investment professionals has three primary
components: (1) a base salary, (2) an annual cash bonus, and (3) annual stock-based compensation
consisting of options to purchase shares of EVCs nonvoting common stock and/or restricted shares
of EVCs nonvoting common stock. EVMs investment professionals also receive certain retirement,
insurance and other benefits that are broadly available to EVMs employees. Compensation of EVMs
investment professionals is reviewed primarily on an annual basis. Cash bonuses, stock-based
compensation awards, and adjustments in base salary are typically paid or put into effect at or
shortly after the October 31st fiscal year end of EVC.
Method to Determine Compensation. EVM compensates its portfolio managers based primarily on the
scale and complexity of their portfolio responsibilities and the total return performance of
managed funds and accounts versus the benchmark(s) stated in the prospectus, as well as an
appropriate peer group (as described below). In addition to rankings within peer groups of funds
on the basis of absolute performance, consideration may also be given to relative risk-adjusted
performance. Risk-adjusted performance measures include, but are not limited to, the Sharpe Ratio.
Performance is normally based on periods ending on the September 30th preceding fiscal year end.
Fund performance is normally evaluated primarily versus peer groups of funds as determined by
Lipper Inc. and/or Morningstar, Inc. When a funds peer group as determined by Lipper or
Morningstar is deemed by EVMs management not to provide a fair comparison, performance may instead
be evaluated primarily against a custom peer group. In evaluating the performance of a fund and
its manager, primary emphasis is normally placed on three-year performance, with secondary
consideration of performance over longer and shorter periods. For funds that are tax-managed or
otherwise have an objective of after-tax returns, performance is measured net of taxes. For other
funds, performance is evaluated on a pre-tax basis. For funds with an investment objective other
than total return (such as current income), consideration will also be given to the funds success
in achieving its objective. For managers responsible for multiple funds and accounts, investment
performance is evaluated on an aggregate basis, based on averages or weighted averages among
managed funds and accounts. Funds and accounts that have performance-based advisory fees are not
accorded disproportionate weightings in measuring aggregate portfolio manager performance.
The compensation of portfolio managers with other job responsibilities (such as heading an
investment group or providing analytical support to other portfolios) will include consideration of
the scope of such responsibilities and the managers performance in meeting them.
EVM seeks to compensate portfolio managers commensurate with their responsibilities and
performance, and competitive with other firms within the investment management industry. EVM
participates in investment-industry compensation surveys and utilizes survey data as a factor in
determining salary, bonus and stock-based compensation levels for portfolio managers and other
investment professionals. Salaries, bonuses and stock-based compensation are also influenced by
the operating performance of EVM and its parent company. The overall annual cash bonus pool is
based on a substantially fixed percentage of pre-bonus operating income. While the salaries of
EVMs portfolio managers are comparatively fixed, cash bonuses and stock-based compensation may
fluctuate significantly from year to year, based on changes in manager performance and other
factors as described herein. For a high performing portfolio manager, cash bonuses and stock-based
compensation may represent a substantial portion of total compensation.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated
Purchasers
No such purchases this period.
Item 10. Submission of Matters to a Vote of Security Holders
No Material Changes.
Item 11. Controls and Procedures
(a) It is the conclusion of the registrants principal executive officer and principal
financial officer that the effectiveness of the registrants 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 Commissions rules and forms and that the information required to be disclosed by
the registrant has been accumulated and communicated to the registrants principal executive
officer and principal financial officer in order to allow timely decisions regarding required
disclosure.
(b) There have been no changes in the registrants internal controls over financial reporting
during the second fiscal quarter of the period covered by this report that has materially affected,
or is reasonably likely to materially affect, the registrants internal control over financial
reporting.
Item 12. Exhibits
|
|
|
(a)(1)
|
|
Registrants Code of Ethics Not applicable (please see Item 2). |
|
(a)(2)(i)
|
|
Treasurers Section 302 certification. |
|
(a)(2)(ii)
|
|
Presidents Section 302 certification. |
|
(b)
|
|
Combined Section 906 certification. |
|
(c)
|
|
Registrants notices to shareholders pursuant to Registrants exemptive order granting an
exemption from Section 19(b) of the 1940 Act and Rule 19b-1 thereunder regarding distributions
paid pursuant to the Registrants Managed Distribution Plan. |
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/ Walter A. Row, III
Walter A. Row, III
|
|
|
|
|
President |
|
|
Date: November 16, 2011
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/ Barbara E. Campbell
Barbara E. Campbell
Treasurer
|
|
|
|
|
|
|
|
Date: November 16, 2011 |
|
|
|
|
|
|
|
By:
|
|
/s/ Walter A. Row, III
Walter A. Row, III
President
|
|
|
|
|
|
|
|
Date: November 16, 2011 |
|
|