Semiannual Report March 31, 2012
Eaton Vance
Enhanced Equity Income Fund
Table of Contents
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2 |
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2 |
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3 |
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Financial Statements
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4 |
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Officers and Trustees
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17 |
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Important Notices
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18 |
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Eaton Vance
Enhanced Equity Income Fund
March 31, 2012
Portfolio Managers Walter A. Row III, CFA, CMT and Michael A. Allison, CFA
Performance1
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Since |
% Average Annual Total Returns |
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Inception Date |
Six Months |
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One Year |
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Five Years |
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Inception |
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Fund at NAV
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10/29/2004
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21.46 |
% |
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4.35 |
% |
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1.55 |
% |
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4.57 |
% |
Fund at Market Price
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19.00 |
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-0.95 |
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-1.99 |
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2.46 |
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S&P 500 Index
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10/29/2004
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25.89 |
% |
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8.54 |
% |
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2.01 |
% |
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5.16 |
% |
CBOE S&P 500 BuyWrite Index
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10/29/2004
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21.94 |
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9.38 |
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2.21 |
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4.30 |
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% Premium/Discount to NAV |
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-14.06 |
% |
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Distributions2 |
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Total Distributions per share for the period
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$ |
0.546 |
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Distribution Rate at NAV
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8.06 |
% |
Distribution Rate at Market Price
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9.37 |
% |
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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4.2 |
% |
Exxon Mobil Corp. |
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3.6 |
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QUALCOMM, Inc. |
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3.2 |
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Coca-Cola Co. (The) |
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2.8 |
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International Business Machines Corp. |
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2.7 |
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NIKE, Inc., Class B |
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2.5 |
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Google, Inc., Class A |
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2.5 |
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Wells Fargo & Co. |
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2.4 |
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Philip Morris International, Inc. |
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2.4 |
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JPMorgan Chase & Co. |
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2.2 |
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Total |
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28.5 |
% |
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See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value
(NAV) 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
March 31, 2012
Endnotes and Additional Disclosures
1 |
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. Unless otherwise stated, index returns do not
reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as
applicable. It is not possible to invest directly in an index. |
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2 |
The Distribution Rate is based on the Funds last regular distribution per share in the
period (annualized) divided by the Funds NAV or market price at the end of the period. The Funds
distributions may be composed of ordinary income, tax-exempt income, net realized capital gains and
return of capital. In recent years, a significant portion of the Funds distributions has been
characterized as a return of capital. |
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3 |
Depictions do not reflect the Funds option positions. Excludes cash and cash
equivalents. |
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Fund profile subject to change due to active management. |
3
Eaton Vance
Enhanced
Equity Income Fund
March 31, 2012
Portfolio
of Investments (Unaudited)
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Common Stocks
100.2%(1)
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Security
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Shares
|
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Value
|
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Aerospace &
Defense 2.1%
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Boeing Co. (The)
|
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72,492
|
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$
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5,391,230
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United Technologies Corp.
|
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62,084
|
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5,149,247
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$
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10,540,477
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Automobiles 0.4%
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Bayerische Motoren Werke AG
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21,843
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$
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1,964,917
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$
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1,964,917
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Beverages 3.4%
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Beam, Inc.
|
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46,337
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$
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2,713,958
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Coca-Cola
Co. (The)
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196,464
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14,540,301
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$
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17,254,259
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Biotechnology 3.1%
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Celgene
Corp.(2)
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98,645
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$
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7,646,960
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Gilead Sciences,
Inc.(2)
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167,229
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8,169,137
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$
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15,816,097
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Capital
Markets 0.8%
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Goldman Sachs Group, Inc. (The)
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32,134
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$
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3,996,506
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$
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3,996,506
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Chemicals 2.2%
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Celanese Corp., Series A
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53,670
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$
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2,478,481
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Monsanto Co.
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110,206
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8,790,030
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$
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11,268,511
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Commercial
Banks 4.3%
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KeyCorp
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504,487
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$
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4,288,139
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PNC Financial Services Group, Inc.
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77,725
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5,012,485
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Wells Fargo & Co.
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368,604
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12,584,141
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$
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21,884,765
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Communications
Equipment 3.2%
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QUALCOMM, Inc.
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244,723
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$
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16,646,058
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$
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16,646,058
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Computers &
Peripherals 4.7%
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Apple,
Inc.(2)
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35,964
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$
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21,559,339
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EMC
Corp.(2)
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89,030
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2,660,216
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$
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24,219,555
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Construction &
Engineering 1.8%
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Fluor Corp.
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157,979
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$
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9,485,059
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$
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9,485,059
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Consumer
Finance 1.0%
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American Express Co.
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84,975
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$
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4,916,654
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$
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4,916,654
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Diversified Financial
Services 3.5%
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Citigroup, Inc.
|
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188,326
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$
|
6,883,315
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JPMorgan Chase & Co.
|
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246,795
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|
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11,347,634
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$
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18,230,949
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Diversified Telecommunication
Services 3.2%
|
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AT&T, Inc.
|
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|
276,692
|
|
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$
|
8,641,091
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CenturyLink, Inc.
|
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201,859
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|
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7,801,851
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$
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16,442,942
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Electric
Utilities 2.7%
|
|
American Electric Power Co., Inc.
|
|
|
75,093
|
|
|
$
|
2,897,088
|
|
|
|
Duke Energy Corp.
|
|
|
122,555
|
|
|
|
2,574,881
|
|
|
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Edison International
|
|
|
61,046
|
|
|
|
2,595,065
|
|
|
|
PPL Corp.
|
|
|
105,792
|
|
|
|
2,989,682
|
|
|
|
Southern Co. (The)
|
|
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58,119
|
|
|
|
2,611,287
|
|
|
|
|
|
|
|
|
|
|
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$
|
13,668,003
|
|
|
|
|
|
|
|
Electrical
Equipment 0.5%
|
|
Emerson Electric Co.
|
|
|
50,207
|
|
|
$
|
2,619,801
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,619,801
|
|
|
|
|
|
|
|
Energy Equipment &
Services 2.3%
|
|
Halliburton Co.
|
|
|
177,957
|
|
|
$
|
5,906,393
|
|
|
|
Schlumberger, Ltd.
|
|
|
82,882
|
|
|
|
5,795,938
|
|
|
|
|
|
|
|
|
|
|
|
$
|
11,702,331
|
|
|
|
|
|
|
|
Food & Staples
Retailing 1.7%
|
|
Costco Wholesale Corp.
|
|
|
98,308
|
|
|
$
|
8,926,366
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,926,366
|
|
|
|
|
|
|
|
Health Care Equipment &
Supplies 2.5%
|
|
Covidien PLC
|
|
|
48,406
|
|
|
$
|
2,646,840
|
|
|
|
St. Jude Medical, Inc.
|
|
|
124,018
|
|
|
|
5,495,237
|
|
|
|
Varian Medical Systems,
Inc.(2)
|
|
|
69,933
|
|
|
|
4,822,580
|
|
|
|
|
|
|
|
|
|
|
|
$
|
12,964,657
|
|
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|
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|
|
See Notes to
Financial Statements.
4
Eaton Vance
Enhanced
Equity Income Fund
March 31, 2012
Portfolio
of Investments (Unaudited) continued
|
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Security
|
|
Shares
|
|
|
Value
|
|
|
|
|
|
Health Care Providers &
Services 1.6%
|
|
DaVita,
Inc.(2)
|
|
|
73
|
|
|
$
|
6,582
|
|
|
|
UnitedHealth Group, Inc.
|
|
|
140,217
|
|
|
|
8,264,390
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,270,972
|
|
|
|
|
|
|
|
Hotels, Restaurants &
Leisure 1.2%
|
|
McDonalds Corp.
|
|
|
64,941
|
|
|
$
|
6,370,712
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,370,712
|
|
|
|
|
|
|
|
Household
Products 2.6%
|
|
Colgate-Palmolive Co.
|
|
|
55,469
|
|
|
$
|
5,423,759
|
|
|
|
Procter & Gamble Co.
|
|
|
119,787
|
|
|
|
8,050,884
|
|
|
|
|
|
|
|
|
|
|
|
$
|
13,474,643
|
|
|
|
|
|
|
|
Industrial
Conglomerates 3.4%
|
|
Danaher Corp.
|
|
|
202,200
|
|
|
$
|
11,323,200
|
|
|
|
General Electric Co.
|
|
|
301,520
|
|
|
|
6,051,506
|
|
|
|
|
|
|
|
|
|
|
|
$
|
17,374,706
|
|
|
|
|
|
|
|
Insurance 1.5%
|
|
Aflac, Inc.
|
|
|
79,368
|
|
|
$
|
3,650,135
|
|
|
|
MetLife, Inc.
|
|
|
112,652
|
|
|
|
4,207,552
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7,857,687
|
|
|
|
|
|
|
|
Internet & Catalog
Retail 1.7%
|
|
Amazon.com,
Inc.(2)
|
|
|
43,392
|
|
|
$
|
8,787,314
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,787,314
|
|
|
|
|
|
|
|
Internet Software &
Services 4.7%
|
|
eBay,
Inc.(2)
|
|
|
292,591
|
|
|
$
|
10,793,682
|
|
|
|
Google, Inc.,
Class A(2)
|
|
|
20,465
|
|
|
|
13,122,977
|
|
|
|
|
|
|
|
|
|
|
|
$
|
23,916,659
|
|
|
|
|
|
|
|
IT Services 5.6%
|
|
Accenture PLC, Class A
|
|
|
170,930
|
|
|
$
|
11,024,985
|
|
|
|
International Business Machines Corp.
|
|
|
67,277
|
|
|
|
14,037,346
|
|
|
|
Visa, Inc., Class A
|
|
|
32,732
|
|
|
|
3,862,376
|
|
|
|
|
|
|
|
|
|
|
|
$
|
28,924,707
|
|
|
|
|
|
|
|
Machinery 1.0%
|
|
Deere & Co.
|
|
|
64,524
|
|
|
$
|
5,219,992
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,219,992
|
|
|
|
|
|
|
|
Media 1.7%
|
|
Comcast Corp., Class A
|
|
|
21,126
|
|
|
$
|
633,991
|
|
|
|
Walt Disney Co. (The)
|
|
|
186,040
|
|
|
|
8,144,831
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,778,822
|
|
|
|
|
|
|
|
Metals &
Mining 2.1%
|
|
Cliffs Natural Resources, Inc.
|
|
|
48,819
|
|
|
$
|
3,381,204
|
|
|
|
Freeport-McMoRan Copper & Gold, Inc.
|
|
|
39,423
|
|
|
|
1,499,651
|
|
|
|
Goldcorp, Inc.
|
|
|
129,942
|
|
|
|
5,855,186
|
|
|
|
|
|
|
|
|
|
|
|
$
|
10,736,041
|
|
|
|
|
|
|
|
Multi-Utilities 0.5%
|
|
Sempra Energy
|
|
|
44,598
|
|
|
$
|
2,674,096
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,674,096
|
|
|
|
|
|
|
|
Multiline
Retail 1.3%
|
|
Macys, Inc.
|
|
|
162,883
|
|
|
$
|
6,471,342
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,471,342
|
|
|
|
|
|
|
|
Oil, Gas & Consumable
Fuels 9.7%
|
|
Anadarko Petroleum Corp.
|
|
|
76,106
|
|
|
$
|
5,962,144
|
|
|
|
Apache Corp.
|
|
|
61,589
|
|
|
|
6,185,999
|
|
|
|
Chevron Corp.
|
|
|
23,671
|
|
|
|
2,538,478
|
|
|
|
ConocoPhillips
|
|
|
144,937
|
|
|
|
11,016,661
|
|
|
|
Exxon Mobil Corp.
|
|
|
211,889
|
|
|
|
18,377,133
|
|
|
|
Occidental Petroleum Corp.
|
|
|
62,446
|
|
|
|
5,946,733
|
|
|
|
|
|
|
|
|
|
|
|
$
|
50,027,148
|
|
|
|
|
|
|
|
Personal
Products 1.0%
|
|
Estee Lauder Cos., Inc. (The), Class A
|
|
|
85,701
|
|
|
$
|
5,308,320
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,308,320
|
|
|
|
|
|
|
|
Pharmaceuticals 5.1%
|
|
Allergan, Inc.
|
|
|
69,485
|
|
|
$
|
6,630,953
|
|
|
|
Johnson & Johnson
|
|
|
142,951
|
|
|
|
9,429,048
|
|
|
|
Pfizer, Inc.
|
|
|
451,389
|
|
|
|
10,228,475
|
|
|
|
|
|
|
|
|
|
|
|
$
|
26,288,476
|
|
|
|
|
|
|
|
Real Estate Investment Trusts
(REITs) 1.4%
|
|
AvalonBay Communities, Inc.
|
|
|
26,090
|
|
|
$
|
3,687,822
|
|
|
|
Boston Properties, Inc.
|
|
|
34,888
|
|
|
|
3,662,891
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7,350,713
|
|
|
|
|
|
|
|
Road &
Rail 0.9%
|
|
Union Pacific Corp.
|
|
|
43,641
|
|
|
$
|
4,690,535
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,690,535
|
|
|
|
|
|
|
See Notes to
Financial Statements.
5
Eaton Vance
Enhanced
Equity Income Fund
March 31, 2012
Portfolio
of Investments (Unaudited) continued
|
|
|
|
|
|
|
|
|
|
|
Security
|
|
Shares
|
|
|
Value
|
|
|
|
|
|
Software 3.7%
|
|
Microsoft Corp.
|
|
|
276,240
|
|
|
$
|
8,908,740
|
|
|
|
Oracle Corp.
|
|
|
351,686
|
|
|
|
10,255,164
|
|
|
|
|
|
|
|
|
|
|
|
$
|
19,163,904
|
|
|
|
|
|
|
|
Specialty
Retail 1.1%
|
|
Home Depot, Inc. (The)
|
|
|
109,073
|
|
|
$
|
5,487,463
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,487,463
|
|
|
|
|
|
|
|
Textiles, Apparel & Luxury
Goods 2.6%
|
|
NIKE, Inc., Class B
|
|
|
121,315
|
|
|
$
|
13,155,399
|
|
|
|
|
|
|
|
|
|
|
|
$
|
13,155,399
|
|
|
|
|
|
|
|
Tobacco 2.4%
|
|
Philip Morris International, Inc.
|
|
|
141,826
|
|
|
$
|
12,567,202
|
|
|
|
|
|
|
|
|
|
|
|
$
|
12,567,202
|
|
|
|
|
|
|
|
|
Total Common Stocks
|
|
|
(identified cost $415,337,911)
|
|
$
|
515,444,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Investments 0.2%
|
|
|
|
Interest
|
|
|
|
|
|
|
Description
|
|
(000s omitted)
|
|
|
Value
|
|
|
|
|
|
Eaton Vance Cash Reserves Fund, LLC,
0.09%(3)
|
|
|
$1,126
|
|
|
$
|
1,125,937
|
|
|
|
|
|
|
|
|
Total Short-Term Investments
|
|
|
(identified cost $1,125,937)
|
|
$
|
1,125,937
|
|
|
|
|
|
|
|
|
Total Investments 100.4%
|
|
|
(identified cost $416,463,848)
|
|
$
|
516,570,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covered Call Options Written (1.7)%
|
|
|
|
Number of
|
|
|
Strike
|
|
|
Expiration
|
|
|
|
|
|
|
Security
|
|
Contracts
|
|
|
Price
|
|
|
Date
|
|
|
Value
|
|
|
|
|
|
Accenture PLC, Class A
|
|
|
870
|
|
|
$
|
65.00
|
|
|
|
5/19/12
|
|
|
$
|
(106,575
|
)
|
|
|
Aflac, Inc.
|
|
|
150
|
|
|
|
48.00
|
|
|
|
5/19/12
|
|
|
|
(13,350
|
)
|
|
|
Allergan, Inc.
|
|
|
220
|
|
|
|
90.00
|
|
|
|
4/21/12
|
|
|
|
(124,300
|
)
|
|
|
Amazon.com, Inc.
|
|
|
220
|
|
|
|
185.00
|
|
|
|
4/21/12
|
|
|
|
(413,600
|
)
|
|
|
American Electric Power Co., Inc.
|
|
|
375
|
|
|
|
39.00
|
|
|
|
5/19/12
|
|
|
|
(15,937
|
)
|
|
|
American Express Co.
|
|
|
425
|
|
|
|
55.00
|
|
|
|
4/21/12
|
|
|
|
(133,875
|
)
|
|
|
Anadarko Petroleum Corp.
|
|
|
385
|
|
|
|
85.00
|
|
|
|
5/19/12
|
|
|
|
(44,275
|
)
|
|
|
Apache Corp.
|
|
|
310
|
|
|
|
100.00
|
|
|
|
4/21/12
|
|
|
|
(84,630
|
)
|
|
|
Apple, Inc.
|
|
|
220
|
|
|
|
510.00
|
|
|
|
4/21/12
|
|
|
|
(2,000,900
|
)
|
|
|
AT&T, Inc.
|
|
|
1,385
|
|
|
|
32.00
|
|
|
|
5/19/12
|
|
|
|
(24,237
|
)
|
|
|
AvalonBay Communities, Inc.
|
|
|
130
|
|
|
|
140.00
|
|
|
|
5/19/12
|
|
|
|
(61,750
|
)
|
|
|
Beam, Inc.
|
|
|
235
|
|
|
|
60.00
|
|
|
|
6/16/12
|
|
|
|
(48,763
|
)
|
|
|
Boeing Co. (The)
|
|
|
365
|
|
|
|
77.50
|
|
|
|
5/19/12
|
|
|
|
(22,630
|
)
|
|
|
Boston Properties, Inc.
|
|
|
125
|
|
|
|
110.00
|
|
|
|
4/21/12
|
|
|
|
(1,875
|
)
|
|
|
Celanese Corp., Series A
|
|
|
270
|
|
|
|
47.50
|
|
|
|
5/19/12
|
|
|
|
(46,575
|
)
|
|
|
Celgene Corp.
|
|
|
495
|
|
|
|
77.50
|
|
|
|
4/21/12
|
|
|
|
(72,023
|
)
|
|
|
CenturyLink, Inc.
|
|
|
1,010
|
|
|
|
40.00
|
|
|
|
4/21/12
|
|
|
|
(2,525
|
)
|
|
|
Chevron Corp.
|
|
|
120
|
|
|
|
110.00
|
|
|
|
4/21/12
|
|
|
|
(7,680
|
)
|
|
|
Citigroup, Inc.
|
|
|
880
|
|
|
|
34.00
|
|
|
|
4/21/12
|
|
|
|
(253,440
|
)
|
|
|
Cliffs Natural Resources, Inc.
|
|
|
245
|
|
|
|
75.00
|
|
|
|
5/19/12
|
|
|
|
(43,978
|
)
|
|
|
Coca-Cola
Co. (The)
|
|
|
985
|
|
|
|
72.50
|
|
|
|
5/19/12
|
|
|
|
(220,640
|
)
|
|
|
Colgate-Palmolive Co.
|
|
|
280
|
|
|
|
95.00
|
|
|
|
5/19/12
|
|
|
|
(95,200
|
)
|
|
|
Comcast Corp., Class A
|
|
|
17
|
|
|
|
28.00
|
|
|
|
4/21/12
|
|
|
|
(3,417
|
)
|
|
|
ConocoPhillips
|
|
|
725
|
|
|
|
80.00
|
|
|
|
5/19/12
|
|
|
|
(34,437
|
)
|
|
|
Costco Wholesale Corp.
|
|
|
495
|
|
|
|
90.00
|
|
|
|
4/21/12
|
|
|
|
(81,675
|
)
|
|
|
Covidien PLC
|
|
|
5
|
|
|
|
50.00
|
|
|
|
4/21/12
|
|
|
|
(2,350
|
)
|
|
|
Danaher Corp.
|
|
|
1,015
|
|
|
|
55.00
|
|
|
|
4/21/12
|
|
|
|
(157,325
|
)
|
|
|
Deere & Co.
|
|
|
325
|
|
|
|
85.00
|
|
|
|
5/19/12
|
|
|
|
(38,350
|
)
|
|
|
Duke Energy Corp.
|
|
|
295
|
|
|
|
21.00
|
|
|
|
4/21/12
|
|
|
|
(5,900
|
)
|
|
|
eBay, Inc.
|
|
|
1,465
|
|
|
|
36.00
|
|
|
|
4/21/12
|
|
|
|
(236,598
|
)
|
|
|
EMC Corp.
|
|
|
445
|
|
|
|
29.00
|
|
|
|
5/19/12
|
|
|
|
(69,198
|
)
|
|
|
Emerson Electric Co.
|
|
|
255
|
|
|
|
52.50
|
|
|
|
5/19/12
|
|
|
|
(34,425
|
)
|
|
|
Estee Lauder Cos., Inc. (The), Class A
|
|
|
430
|
|
|
|
57.50
|
|
|
|
4/21/12
|
|
|
|
(197,800
|
)
|
|
|
Exxon Mobil Corp.
|
|
|
1,060
|
|
|
|
87.50
|
|
|
|
4/21/12
|
|
|
|
(78,440
|
)
|
|
|
Fluor Corp.
|
|
|
790
|
|
|
|
62.50
|
|
|
|
4/21/12
|
|
|
|
(45,425
|
)
|
|
|
Freeport-McMoRan Copper & Gold, Inc.
|
|
|
200
|
|
|
|
40.00
|
|
|
|
5/19/12
|
|
|
|
(22,200
|
)
|
|
|
General Electric Co.
|
|
|
1,510
|
|
|
|
21.00
|
|
|
|
5/19/12
|
|
|
|
(34,730
|
)
|
|
|
Gilead Sciences, Inc.
|
|
|
840
|
|
|
|
48.00
|
|
|
|
5/19/12
|
|
|
|
(252,420
|
)
|
|
|
Goldcorp, Inc.
|
|
|
650
|
|
|
|
50.00
|
|
|
|
4/21/12
|
|
|
|
(7,150
|
)
|
|
|
Goldman Sachs Group, Inc. (The)
|
|
|
140
|
|
|
|
115.00
|
|
|
|
4/21/12
|
|
|
|
(144,200
|
)
|
|
|
Google, Inc., Class A
|
|
|
105
|
|
|
|
600.00
|
|
|
|
5/19/12
|
|
|
|
(554,925
|
)
|
|
|
Halliburton Co.
|
|
|
1,175
|
|
|
|
38.00
|
|
|
|
4/21/12
|
|
|
|
(8,812
|
)
|
|
|
Home Depot, Inc. (The)
|
|
|
545
|
|
|
|
48.00
|
|
|
|
5/19/12
|
|
|
|
(156,143
|
)
|
|
|
International Business Machines Corp.
|
|
|
340
|
|
|
|
200.00
|
|
|
|
4/21/12
|
|
|
|
(330,650
|
)
|
|
|
Johnson & Johnson
|
|
|
715
|
|
|
|
65.00
|
|
|
|
4/21/12
|
|
|
|
(93,665
|
)
|
|
|
JPMorgan Chase & Co.
|
|
|
1,040
|
|
|
|
47.00
|
|
|
|
5/19/12
|
|
|
|
(110,760
|
)
|
|
|
Macys, Inc.
|
|
|
815
|
|
|
|
40.00
|
|
|
|
5/19/12
|
|
|
|
(116,138
|
)
|
|
|
McDonalds Corp.
|
|
|
325
|
|
|
|
100.00
|
|
|
|
5/19/12
|
|
|
|
(38,025
|
)
|
|
|
MetLife, Inc.
|
|
|
565
|
|
|
|
39.00
|
|
|
|
4/21/12
|
|
|
|
(15,820
|
)
|
|
|
Microsoft Corp.
|
|
|
1,385
|
|
|
|
31.00
|
|
|
|
4/21/12
|
|
|
|
(202,210
|
)
|
|
|
Microsoft Corp.
|
|
|
1,235
|
|
|
|
32.00
|
|
|
|
4/21/12
|
|
|
|
(95,095
|
)
|
|
|
Monsanto Co.
|
|
|
555
|
|
|
|
85.00
|
|
|
|
4/21/12
|
|
|
|
(21,367
|
)
|
|
|
NIKE, Inc., Class B
|
|
|
610
|
|
|
|
110.00
|
|
|
|
4/21/12
|
|
|
|
(71,065
|
)
|
|
|
Occidental Petroleum Corp.
|
|
|
315
|
|
|
|
105.00
|
|
|
|
5/19/12
|
|
|
|
(20,317
|
)
|
|
|
Oracle Corp.
|
|
|
1,760
|
|
|
|
29.00
|
|
|
|
4/21/12
|
|
|
|
(107,360
|
)
|
|
|
Pfizer, Inc.
|
|
|
4,512
|
|
|
|
22.00
|
|
|
|
4/21/12
|
|
|
|
(336,144
|
)
|
|
|
Philip Morris International, Inc.
|
|
|
710
|
|
|
|
90.00
|
|
|
|
5/19/12
|
|
|
|
(98,690
|
)
|
|
|
See Notes to
Financial Statements.
6
Eaton Vance
Enhanced
Equity Income Fund
March 31, 2012
Portfolio
of Investments (Unaudited) continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
|
Strike
|
|
|
Expiration
|
|
|
|
|
|
|
Security
|
|
Contracts
|
|
|
Price
|
|
|
Date
|
|
|
Value
|
|
|
|
|
|
PNC Financial Services Group, Inc.
|
|
|
285
|
|
|
$
|
62.50
|
|
|
|
4/21/12
|
|
|
$
|
(72,533
|
)
|
|
|
PPL Corp.
|
|
|
530
|
|
|
|
29.00
|
|
|
|
4/21/12
|
|
|
|
(1,325
|
)
|
|
|
Procter & Gamble Co.
|
|
|
665
|
|
|
|
67.50
|
|
|
|
4/21/12
|
|
|
|
(32,252
|
)
|
|
|
QUALCOMM, Inc.
|
|
|
1,225
|
|
|
|
67.50
|
|
|
|
4/21/12
|
|
|
|
(248,675
|
)
|
|
|
Schlumberger, Ltd.
|
|
|
460
|
|
|
|
80.00
|
|
|
|
4/21/12
|
|
|
|
(3,220
|
)
|
|
|
Sempra Energy
|
|
|
115
|
|
|
|
60.00
|
|
|
|
4/21/12
|
|
|
|
(7,187
|
)
|
|
|
Southern Co. (The)
|
|
|
140
|
|
|
|
44.00
|
|
|
|
4/21/12
|
|
|
|
(14,630
|
)
|
|
|
St. Jude Medical, Inc.
|
|
|
620
|
|
|
|
45.00
|
|
|
|
5/19/12
|
|
|
|
(86,800
|
)
|
|
|
Union Pacific Corp.
|
|
|
220
|
|
|
|
115.00
|
|
|
|
5/19/12
|
|
|
|
(27,390
|
)
|
|
|
United Technologies Corp.
|
|
|
310
|
|
|
|
87.50
|
|
|
|
5/19/12
|
|
|
|
(15,965
|
)
|
|
|
UnitedHealth Group, Inc.
|
|
|
705
|
|
|
|
57.50
|
|
|
|
4/21/12
|
|
|
|
(161,445
|
)
|
|
|
Varian Medical Systems, Inc.
|
|
|
350
|
|
|
|
70.00
|
|
|
|
5/19/12
|
|
|
|
(65,625
|
)
|
|
|
Visa, Inc., Class A
|
|
|
125
|
|
|
|
120.00
|
|
|
|
4/21/12
|
|
|
|
(19,250
|
)
|
|
|
Walt Disney Co. (The)
|
|
|
720
|
|
|
|
42.00
|
|
|
|
4/21/12
|
|
|
|
(144,360
|
)
|
|
|
Wells Fargo & Co.
|
|
|
1,845
|
|
|
|
35.00
|
|
|
|
5/19/12
|
|
|
|
(142,065
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total Covered Call Options Written
|
|
|
|
|
|
|
(premiums received $6,213,531)
|
|
$
|
(8,704,706
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Other Assets, Less
Liabilities 1.3%
|
|
$
|
6,448,233
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets 100.0%
|
|
$
|
514,314,224
|
|
|
|
|
|
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets.
|
|
|
(1) |
|
A portion of each applicable common stock for which a written
call option is outstanding at March 31, 2012 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 March 31, 2012. |
See Notes to
Financial Statements.
7
Eaton Vance
Enhanced
Equity Income Fund
March 31, 2012
Statement
of Assets and Liabilities (Unaudited)
|
|
|
|
|
|
|
Assets
|
|
March 31, 2012
|
|
|
|
Unaffiliated investments, at value (identified cost,
$415,337,911)
|
|
$
|
515,444,760
|
|
|
|
Affiliated investment, at value (identified cost, $1,125,937)
|
|
|
1,125,937
|
|
|
|
Dividends receivable
|
|
|
639,680
|
|
|
|
Interest receivable from affiliated investment
|
|
|
620
|
|
|
|
Receivable for investments sold
|
|
|
6,897,695
|
|
|
|
Tax reclaims receivable
|
|
|
43,727
|
|
|
|
|
|
Total assets
|
|
$
|
524,152,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
Written options outstanding, at value (premiums received,
$6,213,531)
|
|
$
|
8,704,706
|
|
|
|
Payable for investments purchased
|
|
|
161,462
|
|
|
|
Due to custodian
|
|
|
331,817
|
|
|
|
Payable to affiliate:
|
|
|
|
|
|
|
Investment adviser fee
|
|
|
432,197
|
|
|
|
Accrued expenses and other liabilities
|
|
|
208,013
|
|
|
|
|
|
Total liabilities
|
|
$
|
9,838,195
|
|
|
|
|
|
Net Assets
|
|
$
|
514,314,224
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
(140,393,127
|
)
|
|
|
Accumulated distributions in excess of net investment income
|
|
|
(19,938,353
|
)
|
|
|
Net unrealized appreciation
|
|
|
97,615,674
|
|
|
|
|
|
Net Assets
|
|
$
|
514,314,224
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value
|
|
($514,314,224
¸
39,970,049 common shares issued and outstanding)
|
|
$
|
12.87
|
|
|
|
|
|
See Notes to
Financial Statements.
8
Eaton Vance
Enhanced
Equity Income Fund
March 31, 2012
Statement
of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
Investment Income
|
|
March 31, 2012
|
|
|
|
Dividends (net of foreign taxes, $4,834)
|
|
$
|
4,664,717
|
|
|
|
Interest income allocated from affiliated investment
|
|
|
7,238
|
|
|
|
Expenses allocated from affiliated investment
|
|
|
(1,115
|
)
|
|
|
|
|
Total investment income
|
|
$
|
4,670,840
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
Investment adviser fee
|
|
$
|
2,433,427
|
|
|
|
Trustees fees and expenses
|
|
|
9,935
|
|
|
|
Custodian fee
|
|
|
122,123
|
|
|
|
Transfer and dividend disbursing agent fees
|
|
|
9,441
|
|
|
|
Legal and accounting services
|
|
|
33,421
|
|
|
|
Printing and postage
|
|
|
160,864
|
|
|
|
Miscellaneous
|
|
|
46,732
|
|
|
|
|
|
Total expenses
|
|
$
|
2,815,943
|
|
|
|
|
|
Deduct
|
|
|
|
|
|
|
Reduction of custodian fee
|
|
$
|
1
|
|
|
|
|
|
Total expense reductions
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
Net expenses
|
|
$
|
2,815,942
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
1,854,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized and Unrealized Gain (Loss)
|
|
Net realized gain (loss)
|
|
|
|
|
|
|
Investment transactions
|
|
$
|
(576,787
|
)
|
|
|
Investment transactions allocated from affiliated investment
|
|
|
207
|
|
|
|
Written options
|
|
|
(6,558,083
|
)
|
|
|
Foreign currency transactions
|
|
|
8,323
|
|
|
|
|
|
Net realized loss
|
|
$
|
(7,126,340
|
)
|
|
|
|
|
Change in unrealized appreciation (depreciation)
|
|
|
|
|
|
|
Investments
|
|
$
|
100,973,388
|
|
|
|
Written options
|
|
|
(5,374,646
|
)
|
|
|
Foreign currency
|
|
|
(7,358
|
)
|
|
|
|
|
Net change in unrealized appreciation (depreciation)
|
|
$
|
95,591,384
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized and unrealized gain
|
|
$
|
88,465,044
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
90,319,942
|
|
|
|
|
|
See Notes to
Financial Statements.
9
Eaton Vance
Enhanced
Equity Income Fund
March 31, 2012
Statements
of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
March 31, 2012
|
|
Year Ended
|
|
|
Increase (Decrease)
in Net Assets
|
|
(Unaudited)
|
|
September 30, 2011
|
|
|
|
From operations
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
1,854,898
|
|
|
$
|
2,711,768
|
|
|
|
Net realized gain (loss) from investment transactions, written
options and foreign currency transactions
|
|
|
(7,126,340
|
)
|
|
|
12,154,473
|
|
|
|
Net change in unrealized appreciation (depreciation) from
investments, written options and foreign currency
|
|
|
95,591,384
|
|
|
|
(37,370,000
|
)
|
|
|
|
|
Net increase (decrease) in net assets from operations
|
|
$
|
90,319,942
|
|
|
$
|
(22,503,759
|
)
|
|
|
|
|
Distributions to shareholders
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
$
|
(21,819,650
|
)*
|
|
$
|
(2,713,519
|
)
|
|
|
Tax return of capital
|
|
|
|
|
|
|
(43,318,670
|
)
|
|
|
|
|
Total distributions
|
|
$
|
(21,819,650
|
)
|
|
$
|
(46,032,189
|
)
|
|
|
|
|
Capital share transactions
|
|
|
|
|
|
|
|
|
|
|
Reinvestment of distributions
|
|
$
|
|
|
|
$
|
396,783
|
|
|
|
|
|
Net increase in net assets from capital share transactions
|
|
$
|
|
|
|
$
|
396,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets
|
|
$
|
68,500,292
|
|
|
$
|
(68,139,165
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets
|
|
At beginning of period
|
|
$
|
445,813,932
|
|
|
$
|
513,953,097
|
|
|
|
|
|
At end of period
|
|
$
|
514,314,224
|
|
|
$
|
445,813,932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated undistributed
(distributions in excess of) net investment income
included in net assets
|
|
At end of period
|
|
$
|
(19,938,353
|
)
|
|
$
|
26,399
|
|
|
|
|
|
|
|
|
* |
|
A portion of the distributions may be deemed a tax return of
capital at year-end. See Note 2. |
See Notes to
Financial Statements.
10
Eaton Vance
Enhanced
Equity Income Fund
March 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
Year Ended September 30,
|
|
|
|
|
March 31, 2012
|
|
|
|
|
(Unaudited)
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
|
2007
|
|
|
|
Net asset value Beginning of period
|
|
$
|
11.150
|
|
|
$
|
12.870
|
|
|
$
|
13.450
|
|
|
$
|
16.490
|
|
|
$
|
21.110
|
|
|
$
|
19.900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) From Operations
|
|
Net investment
income(1)
|
|
$
|
0.046
|
|
|
$
|
0.068
|
|
|
$
|
0.092
|
|
|
$
|
0.147
|
|
|
$
|
0.152
|
|
|
$
|
0.080
|
|
|
|
Net realized and unrealized gain (loss)
|
|
|
2.220
|
|
|
|
(0.636
|
)
|
|
|
0.787
|
|
|
|
(1.543
|
)
|
|
|
(3.013
|
)
|
|
|
2.774
|
|
|
|
|
|
Total income (loss) from operations
|
|
$
|
2.266
|
|
|
$
|
(0.568
|
)
|
|
$
|
0.879
|
|
|
$
|
(1.396
|
)
|
|
$
|
(2.861
|
)
|
|
$
|
2.854
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less Distributions
|
|
From net investment income
|
|
$
|
(0.546
|
)*
|
|
$
|
(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
|
|
$
|
(0.546
|
)
|
|
$
|
(1.152
|
)
|
|
$
|
(1.459
|
)
|
|
$
|
(1.644
|
)
|
|
$
|
(1.759
|
)
|
|
$
|
(1.644
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value End of period
|
|
$
|
12.870
|
|
|
$
|
11.150
|
|
|
$
|
12.870
|
|
|
$
|
13.450
|
|
|
$
|
16.490
|
|
|
$
|
21.110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value End of period
|
|
$
|
11.060
|
|
|
$
|
9.780
|
|
|
$
|
12.990
|
|
|
$
|
13.680
|
|
|
$
|
13.310
|
|
|
$
|
19.440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Net Asset
Value(2)
|
|
|
21.46
|
%(3)
|
|
|
(4.63
|
)%
|
|
|
6.87
|
%
|
|
|
(6.20
|
)%
|
|
|
(13.54
|
)%
|
|
|
15.04
|
%(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Market
Value(2)
|
|
|
19.00
|
%(3)
|
|
|
(17.12
|
)%
|
|
|
6.02
|
%
|
|
|
18.23
|
%
|
|
|
(24.23
|
)%
|
|
|
5.04
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data
|
|
Net assets, end of period (000s omitted)
|
|
$
|
514,314
|
|
|
$
|
445,814
|
|
|
$
|
513,953
|
|
|
$
|
534,948
|
|
|
$
|
654,528
|
|
|
$
|
837,584
|
|
|
|
Ratios (as a percentage of average daily net assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses(5)
|
|
|
1.16
|
%(6)
|
|
|
1.15
|
%
|
|
|
1.12
|
%
|
|
|
1.17
|
%
|
|
|
1.10
|
%
|
|
|
1.08
|
%
|
|
|
Net investment income
|
|
|
0.76
|
%(6)
|
|
|
0.52
|
%
|
|
|
0.69
|
%
|
|
|
1.17
|
%
|
|
|
0.79
|
%
|
|
|
0.39
|
%
|
|
|
Portfolio Turnover
|
|
|
26
|
%(3)
|
|
|
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) |
|
Not annualized. |
(4) |
|
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. |
(5) |
|
Excludes the effect of custody fee credits, if any, of less than
0.005%. |
(6) |
|
Annualized. |
* |
|
A portion of the distributions may be deemed a tax return of
capital at year-end. See Note 2. |
See Notes to
Financial Statements.
11
Eaton Vance
Enhanced
Equity Income Fund
March 31, 2012
Notes
to Financial Statements (Unaudited)
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 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
12
Eaton Vance
Enhanced
Equity Income Fund
March 31, 2012
Notes
to Financial Statements (Unaudited) 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 March 31, 2012, the Fund had no uncertain tax
positions that would require financial statement recognition,
de-recognition, or disclosure. The Fund files a U.S. federal
income tax return annually after its fiscal year-end, which is
subject to examination by the Internal Revenue Service for a
period of three years from the date of filing.
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.
J Interim Financial
Statements The interim financial statements
relating to March 31, 2012 and for the six months then
ended have not been audited by an independent registered public
accounting firm, but in the opinion of the Funds
management, reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of
the financial statements.
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. For the
six months ended March 31, 2012, the amount of
distributions estimated to be a tax return of capital was
approximately $20,130,300. The final determination of tax
characteristics of the Funds distributions will occur at
the end of the year, at which time it will be reported to the
shareholders.
13
Eaton Vance
Enhanced
Equity Income Fund
March 31, 2012
Notes
to Financial Statements (Unaudited) continued
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 six months ended March 31, 2012, the
Funds investment adviser fee amounted to $2,433,427. EVM
also serves as administrator of the Fund, but receives no
compensation.
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 six months
ended March 31, 2012, 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 $122,056,154 and $147,202,779,
respectively, for the six months ended March 31, 2012.
5 Common
Shares of Beneficial Interest
The Fund may issue common shares pursuant to its dividend
reinvestment plan. There were no transactions in common shares
for the six months ended March 31, 2012. Common shares
issued pursuant to the Funds dividend reinvestment plan
for the year ended September 30, 2011 were 30,532.
6 Federal
Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of
investments of the Fund at March 31, 2012, as determined on
a federal income tax basis, were as follows:
|
|
|
|
|
|
|
Aggregate cost
|
|
$
|
417,305,953
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross unrealized appreciation
|
|
$
|
104,881,554
|
|
|
|
Gross unrealized depreciation
|
|
|
(5,616,810
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized appreciation
|
|
$
|
99,264,744
|
|
|
|
|
|
|
|
|
|
|
|
|
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 March 31, 2012 is included in the
Portfolio of Investments.
Written call options activity for the six months ended
March 31, 2012 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
Premiums
|
|
|
|
|
Contracts
|
|
Received
|
|
|
|
|
Outstanding, beginning of period
|
|
|
51,196
|
|
|
$
|
8,279,787
|
|
|
|
Options written
|
|
|
145,790
|
|
|
|
21,280,185
|
|
|
|
Options terminated in closing purchase transactions
|
|
|
(98,497
|
)
|
|
|
(14,963,804
|
)
|
|
|
Options exercised
|
|
|
(7,757
|
)
|
|
|
(631,705
|
)
|
|
|
Options expired
|
|
|
(45,348
|
)
|
|
|
(7,750,932
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding, end of period
|
|
|
45,384
|
|
|
$
|
6,213,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At March 31, 2012, the Fund had sufficient cash
and/or
securities to cover commitments under these contracts.
14
Eaton Vance
Enhanced
Equity Income Fund
March 31, 2012
Notes
to Financial Statements (Unaudited) continued
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
March 31, 2012 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value
|
|
|
|
|
|
|
|
Asset Derivative
|
|
Liability Derivative
|
|
|
|
|
Written options
|
|
$
|
|
|
|
$
|
(8,704,706
|
)(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Statement of Assets and Liabilities location: Written options
outstanding, at value. |
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 six months ended
March 31, 2012 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized Gain (Loss)
|
|
Change in Unrealized
|
|
|
|
|
on Derivatives Recognized
|
|
Appreciation (Depreciation) on
|
|
|
|
|
in Income
|
|
Derivatives Recognized in Income
|
|
|
|
|
Written options
|
|
$
|
(6,558,083
|
)(1)
|
|
$
|
(5,374,646
|
)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Statement of Operations location: Net realized gain
(loss) Written options. |
(2) |
|
Statement of Operations location: Change in unrealized
appreciation (depreciation) Written options. |
8 Overdraft
Advances
Pursuant to the custodian agreement, SSBT may, in its
discretion, advance funds to the Fund to make properly
authorized payments. When such payments result in an overdraft,
the Fund is obligated to repay SSBT at the current rate of
interest charged by SSBT for secured loans (currently, a rate
above the Federal Funds rate). This obligation is payable on
demand to SSBT. SSBT has a lien on the Funds assets to the
extent of any overdraft. At March 31, 2012, the Fund had a
payment due to SSBT pursuant to the foregoing arrangement of
$331,817.
9 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.
15
Eaton Vance
Enhanced
Equity Income Fund
March 31, 2012
Notes
to Financial Statements (Unaudited) continued
At March 31, 2012, 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Discretionary
|
|
$
|
49,051,051
|
|
|
$
|
1,964,917
|
|
|
$
|
|
|
|
$
|
51,015,968
|
|
|
|
Consumer Staples
|
|
|
57,530,790
|
|
|
|
|
|
|
|
|
|
|
|
57,530,790
|
|
|
|
Energy
|
|
|
61,729,479
|
|
|
|
|
|
|
|
|
|
|
|
61,729,479
|
|
|
|
Financials
|
|
|
64,237,274
|
|
|
|
|
|
|
|
|
|
|
|
64,237,274
|
|
|
|
Health Care
|
|
|
63,340,202
|
|
|
|
|
|
|
|
|
|
|
|
63,340,202
|
|
|
|
Industrials
|
|
|
49,930,570
|
|
|
|
|
|
|
|
|
|
|
|
49,930,570
|
|
|
|
Information Technology
|
|
|
112,870,883
|
|
|
|
|
|
|
|
|
|
|
|
112,870,883
|
|
|
|
Materials
|
|
|
22,004,553
|
|
|
|
|
|
|
|
|
|
|
|
22,004,553
|
|
|
|
Telecommunication Services
|
|
|
16,442,942
|
|
|
|
|
|
|
|
|
|
|
|
16,442,942
|
|
|
|
Utilities
|
|
|
16,342,099
|
|
|
|
|
|
|
|
|
|
|
|
16,342,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Common Stocks
|
|
$
|
513,479,843
|
|
|
$
|
1,964,917
|
*
|
|
$
|
|
|
|
$
|
515,444,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Investments
|
|
$
|
|
|
|
$
|
1,125,937
|
|
|
$
|
|
|
|
$
|
1,125,937
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments
|
|
$
|
513,479,843
|
|
|
$
|
3,090,854
|
|
|
$
|
|
|
|
$
|
516,570,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covered Call Options Written
|
|
$
|
(8,704,706
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(8,704,706
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
(8,704,706
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(8,704,706
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Includes foreign equity securities whose values were adjusted to
reflect market trading of comparable securities or other
correlated instruments that occurred after the close of trading
in their applicable foreign markets.
|
The Fund held no investments or other financial instruments as
of September 30, 2011 whose fair value was determined using
Level 3 inputs. At March 31, 2012, the value of
investments transferred between Level 1 and Level 2,
if any, during the six months then ended was not significant.
16
Eaton Vance
Enhanced
Equity Income Fund
March 31, 2012
|
|
|
Officers of Eaton Vance Enhanced
Equity Income Fund
|
|
|
Walter A. Row, III President
Duncan W. Richardson Vice President
Barbara E. Campbell Treasurer
|
|
Maureen A. Gemma Vice President, Secretary and Chief Legal Officer
Paul M. ONeil Chief Compliance Officer
|
|
|
|
Trustees of Eaton Vance Enhanced
Equity Income Fund
|
|
|
Ralph F. Verni Chairman
Scott E. Eston
Benjamin C. Esty
Thomas E. Faust Jr.*
Allen R. Freedman
|
|
William H. Park
Ronald A. Pearlman
Helen Frame Peters
Lynn A. Stout
Harriett Tee Taggart
|
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 March 31, 2012, Fund records indicate that there are
106 registered shareholders and approximately 29,939
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.
17
Eaton Vance
Enhanced
Equity Income Fund
March 31, 2012
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 Privacy 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.
18
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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
Fund
Offices
Two International Place
Boston, MA 02110
Item 2. Code of Ethics
Not required in this filing.
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
Not required in this filing.
Item 5. Audit Committee of Listed Registrants
Not required in this filing.
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
Not required in this filing.
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: May 8, 2012
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: May 8, 2012
|
|
|
|
|
By: |
/s/ Walter A. Row, III
|
|
|
Walter A. Row, III |
|
|
President |
|
Date: May 8, 2012