UNITED STATES SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
811-21832
Investment Company Act File Number
Eaton Vance Tax-Managed Diversified 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, Including Area Code)
October 31
Date of Fiscal Year End
July 31, 2013
Date of Reporting Period
Item 1. Schedule of Investments
Eaton Vance
Tax-Managed Diversified Equity Income Fund
July 31, 2013
PORTFOLIO OF INVESTMENTS (Unaudited)
Common Stocks 98.5%
|
|
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|
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Security
|
|
Shares
|
|
|
Value
|
|
Aerospace & Defense 2.5%
|
|
|
|
|
|
|
|
|
Boeing Co. (The)
|
|
|
253,623
|
|
|
$
|
26,655,777
|
|
United Technologies Corp.
|
|
|
163,440
|
|
|
|
17,254,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
43,910,138
|
|
|
|
|
|
|
|
|
|
|
Automobiles 0.6%
|
|
|
|
|
|
|
|
|
Honda Motor Co., Ltd.
|
|
|
299,436
|
|
|
$
|
11,091,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
11,091,425
|
|
|
|
|
|
|
|
|
|
|
Beverages 2.4%
|
|
|
|
|
|
|
|
|
Anheuser-Busch InBev NV
|
|
|
56,918
|
|
|
$
|
5,473,309
|
|
Beam, Inc.
|
|
|
123,546
|
|
|
|
8,029,254
|
|
Coca-Cola Co. (The)
|
|
|
540,759
|
|
|
|
21,673,621
|
|
Diageo PLC
|
|
|
222,800
|
|
|
|
6,982,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
42,158,472
|
|
|
|
|
|
|
|
|
|
|
Biotechnology 4.5%
|
|
|
|
|
|
|
|
|
Celgene Corp.
(1)
|
|
|
248,863
|
|
|
$
|
36,548,020
|
|
Gilead Sciences, Inc.
(1)
|
|
|
669,834
|
|
|
|
41,161,299
|
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|
|
|
|
|
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|
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|
|
|
|
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|
$
|
77,709,319
|
|
|
|
|
|
|
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|
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|
Capital Markets 2.0%
|
|
|
|
|
|
|
|
|
Charles Schwab Corp. (The)
|
|
|
444,126
|
|
|
$
|
9,810,743
|
|
Credit Suisse Group AG
(1)
|
|
|
178,275
|
|
|
|
5,236,610
|
|
Goldman Sachs Group, Inc. (The)
|
|
|
93,418
|
|
|
|
15,323,355
|
|
UBS AG
(1)
|
|
|
186,902
|
|
|
|
3,680,291
|
|
|
|
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|
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|
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|
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|
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|
$
|
34,050,999
|
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|
|
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|
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|
Chemicals 3.1%
|
|
|
|
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|
|
BASF SE
|
|
|
66,221
|
|
|
$
|
5,869,064
|
|
Linde AG
|
|
|
13,547
|
|
|
|
2,609,595
|
|
LyondellBasell Industries NV, Class A
|
|
|
203,597
|
|
|
|
13,989,150
|
|
Monsanto Co.
|
|
|
188,296
|
|
|
|
18,599,879
|
|
PPG Industries, Inc.
|
|
|
77,420
|
|
|
|
12,421,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
$
|
53,488,953
|
|
|
|
|
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|
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|
Commercial Banks 7.0%
|
|
|
|
|
|
|
|
|
Barclays PLC
|
|
|
1,308,215
|
|
|
$
|
5,715,570
|
|
HSBC Holdings PLC
|
|
|
1,289,229
|
|
|
|
14,637,201
|
|
Natixis
|
|
|
5,000,000
|
|
|
|
25,549,734
|
|
PNC Financial Services Group, Inc. (The)
|
|
|
243,381
|
|
|
|
18,509,125
|
|
Regions Financial Corp.
|
|
|
1,484,242
|
|
|
|
14,857,263
|
|
Standard Chartered PLC
|
|
|
192,588
|
|
|
|
4,466,830
|
|
Wells Fargo & Co.
|
|
|
867,073
|
|
|
|
37,717,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
121,453,399
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
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Security
|
|
Shares
|
|
|
Value
|
|
Communications Equipment 0.8%
|
|
|
|
|
|
|
|
|
QUALCOMM, Inc.
|
|
|
216,370
|
|
|
$
|
13,966,683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
13,966,683
|
|
|
|
|
|
|
|
|
|
|
Computers & Peripherals 1.9%
|
|
|
|
|
|
|
|
|
Apple, Inc.
|
|
|
74,024
|
|
|
$
|
33,495,860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
33,495,860
|
|
|
|
|
|
|
|
|
|
|
Consumer Finance 1.3%
|
|
|
|
|
|
|
|
|
American Express Co.
|
|
|
317,838
|
|
|
$
|
23,446,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
23,446,909
|
|
|
|
|
|
|
|
|
|
|
Diversified Financial Services 5.0%
|
|
|
|
|
|
|
|
|
Bank of America Corp.
|
|
|
2,079,183
|
|
|
$
|
30,356,072
|
|
Citigroup, Inc.
|
|
|
609,493
|
|
|
|
31,778,965
|
|
JPMorgan Chase & Co.
|
|
|
428,138
|
|
|
|
23,860,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
$
|
85,995,168
|
|
|
|
|
|
|
|
|
|
|
Diversified Telecommunication Services 2.1%
|
|
|
|
|
|
|
|
|
AT&T, Inc.
|
|
|
234,075
|
|
|
$
|
8,255,825
|
|
Verizon Communications, Inc.
|
|
|
579,409
|
|
|
|
28,669,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
36,924,983
|
|
|
|
|
|
|
|
|
|
|
Electric Utilities 2.5%
|
|
|
|
|
|
|
|
|
American Electric Power Co., Inc.
|
|
|
257,104
|
|
|
$
|
11,916,770
|
|
Duke Energy Corp.
|
|
|
108,156
|
|
|
|
7,679,076
|
|
Edison International
|
|
|
161,770
|
|
|
|
8,064,234
|
|
PPL Corp.
|
|
|
277,219
|
|
|
|
8,807,248
|
|
SSE PLC
|
|
|
319,852
|
|
|
|
7,657,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
44,124,439
|
|
|
|
|
|
|
|
|
|
|
Electrical Equipment 1.5%
|
|
|
|
|
|
|
|
|
Emerson Electric Co.
|
|
|
379,580
|
|
|
$
|
23,294,825
|
|
Schneider Electric SA
|
|
|
44,819
|
|
|
|
3,570,319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
26,865,144
|
|
|
|
|
|
|
|
|
|
|
Electronic Equipment, Instruments & Components 0.4%
|
|
|
|
|
|
|
|
|
Corning, Inc.
|
|
|
405,565
|
|
|
$
|
6,160,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,160,532
|
|
|
|
|
|
|
|
|
|
|
Energy Equipment & Services 1.5%
|
|
|
|
|
|
|
|
|
Cameron International Corp.
(1)
|
|
|
78,820
|
|
|
$
|
4,674,026
|
|
Halliburton Co.
|
|
|
460,123
|
|
|
|
20,792,958
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
25,466,984
|
|
|
|
|
|
|
|
|
|
|
Food & Staples Retailing 1.1%
|
|
|
|
|
|
|
|
|
Costco Wholesale Corp.
|
|
|
167,065
|
|
|
$
|
19,595,054
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
19,595,054
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
Security
|
|
Shares
|
|
|
Value
|
|
Food Products 3.8%
|
|
|
|
|
|
|
|
|
Danone SA
|
|
|
45,394
|
|
|
$
|
3,595,002
|
|
Hershey Co. (The)
|
|
|
113,358
|
|
|
|
10,754,273
|
|
Kraft Foods Group, Inc.
|
|
|
144,357
|
|
|
|
8,167,719
|
|
Mondelez International, Inc., Class A
|
|
|
400,724
|
|
|
|
12,530,640
|
|
Nestle SA
|
|
|
291,091
|
|
|
|
19,701,795
|
|
Unilever NV
|
|
|
286,140
|
|
|
|
11,480,348
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
66,229,777
|
|
|
|
|
|
|
|
|
|
|
Health Care Equipment & Supplies 1.8%
|
|
|
|
|
|
|
|
|
Abbott Laboratories
|
|
|
399,732
|
|
|
$
|
14,642,183
|
|
Covidien PLC
|
|
|
266,799
|
|
|
|
16,442,823
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
31,085,006
|
|
|
|
|
|
|
|
|
|
|
Health Care Providers & Services 0.8%
|
|
|
|
|
|
|
|
|
Express Scripts Holding Co.
(1)
|
|
|
215,675
|
|
|
$
|
14,137,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
14,137,496
|
|
|
|
|
|
|
|
|
|
|
Hotels, Restaurants & Leisure 0.8%
|
|
|
|
|
|
|
|
|
McDonalds Corp.
|
|
|
138,196
|
|
|
$
|
13,554,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
13,554,264
|
|
|
|
|
|
|
|
|
|
|
Household Products 3.2%
|
|
|
|
|
|
|
|
|
Colgate-Palmolive Co.
|
|
|
407,224
|
|
|
$
|
24,380,501
|
|
Procter & Gamble Co.
|
|
|
314,015
|
|
|
|
25,215,405
|
|
Svenska Cellulosa AB, Class B
|
|
|
206,913
|
|
|
|
5,473,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
55,069,315
|
|
|
|
|
|
|
|
|
|
|
Industrial Conglomerates 3.3%
|
|
|
|
|
|
|
|
|
Danaher Corp.
|
|
|
366,447
|
|
|
$
|
24,676,541
|
|
General Electric Co.
|
|
|
1,153,817
|
|
|
|
28,118,520
|
|
Siemens AG
|
|
|
41,917
|
|
|
|
4,603,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
57,398,857
|
|
|
|
|
|
|
|
|
|
|
Insurance 1.5%
|
|
|
|
|
|
|
|
|
ACE, Ltd.
|
|
|
133,630
|
|
|
$
|
12,211,109
|
|
Allianz SE
|
|
|
31,696
|
|
|
|
4,939,232
|
|
Old Mutual PLC
|
|
|
814,041
|
|
|
|
2,404,120
|
|
Prudential PLC
|
|
|
340,666
|
|
|
|
6,050,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
25,604,624
|
|
|
|
|
|
|
|
|
|
|
Internet & Catalog Retail 2.2%
|
|
|
|
|
|
|
|
|
Amazon.com, Inc.
(1)
|
|
|
100,581
|
|
|
$
|
30,297,009
|
|
Netflix, Inc.
(1)
|
|
|
29,334
|
|
|
|
7,163,949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
37,460,958
|
|
|
|
|
|
|
|
|
|
|
Internet Software & Services 3.4%
|
|
|
|
|
|
|
|
|
eBay, Inc.
(1)
|
|
|
323,504
|
|
|
$
|
16,721,922
|
|
Google, Inc., Class A
(1)
|
|
|
47,602
|
|
|
|
42,251,535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
58,973,457
|
|
|
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
Security
|
|
Shares
|
|
|
Value
|
|
IT Services 4.0%
|
|
|
|
|
|
|
|
|
Accenture PLC, Class A
|
|
|
291,081
|
|
|
$
|
21,484,689
|
|
International Business Machines Corp.
|
|
|
168,839
|
|
|
|
32,930,358
|
|
Visa, Inc., Class A
|
|
|
83,328
|
|
|
|
14,749,889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
69,164,936
|
|
|
|
|
|
|
|
|
|
|
Machinery 0.8%
|
|
|
|
|
|
|
|
|
Deere & Co.
|
|
|
170,980
|
|
|
$
|
14,203,309
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
14,203,309
|
|
|
|
|
|
|
|
|
|
|
Media 3.2%
|
|
|
|
|
|
|
|
|
Comcast Corp., Class A
|
|
|
553,182
|
|
|
$
|
24,937,445
|
|
Walt Disney Co. (The)
|
|
|
468,328
|
|
|
|
30,277,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
55,214,850
|
|
|
|
|
|
|
|
|
|
|
Metals & Mining 0.5%
|
|
|
|
|
|
|
|
|
BHP Billiton, Ltd. ADR
|
|
|
88,062
|
|
|
$
|
5,524,129
|
|
Freeport-McMoRan Copper & Gold, Inc.
|
|
|
104,202
|
|
|
|
2,946,833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,470,962
|
|
|
|
|
|
|
|
|
|
|
Multi-Utilities 0.9%
|
|
|
|
|
|
|
|
|
National Grid PLC
|
|
|
403,800
|
|
|
$
|
4,825,946
|
|
Sempra Energy
|
|
|
119,017
|
|
|
|
10,429,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
15,255,406
|
|
|
|
|
|
|
|
|
|
|
Multiline Retail 2.3%
|
|
|
|
|
|
|
|
|
Dollar General Corp.
(1)
|
|
|
490,001
|
|
|
$
|
26,788,355
|
|
Macys, Inc.
|
|
|
274,001
|
|
|
|
13,245,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
40,033,563
|
|
|
|
|
|
|
|
|
|
|
Oil, Gas & Consumable Fuels 8.6%
|
|
|
|
|
|
|
|
|
Anadarko Petroleum Corp.
|
|
|
149,499
|
|
|
$
|
13,233,651
|
|
Chevron Corp.
|
|
|
130,085
|
|
|
|
16,376,401
|
|
ConocoPhillips
|
|
|
358,500
|
|
|
|
23,252,310
|
|
ENI SpA
|
|
|
203,631
|
|
|
|
4,497,623
|
|
EOG Resources, Inc.
|
|
|
81,800
|
|
|
|
11,901,082
|
|
Exxon Mobil Corp.
|
|
|
163,920
|
|
|
|
15,367,500
|
|
HollyFrontier Corp.
|
|
|
94,314
|
|
|
|
4,296,003
|
|
Occidental Petroleum Corp.
|
|
|
231,814
|
|
|
|
20,643,037
|
|
Phillips 66
|
|
|
283,058
|
|
|
|
17,408,067
|
|
Royal Dutch Shell PLC, Class B
|
|
|
494,662
|
|
|
|
17,496,394
|
|
Statoil ASA
|
|
|
189,469
|
|
|
|
4,112,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
148,584,802
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals 7.0%
|
|
|
|
|
|
|
|
|
AstraZeneca PLC
|
|
|
172,680
|
|
|
$
|
8,759,320
|
|
Bayer AG
|
|
|
115,622
|
|
|
|
13,439,309
|
|
GlaxoSmithKline PLC
|
|
|
189,684
|
|
|
|
4,852,805
|
|
Johnson & Johnson
|
|
|
185,461
|
|
|
|
17,340,603
|
|
Mallinckrodt PLC
(1)
|
|
|
1
|
|
|
|
40
|
|
4
|
|
|
|
|
|
|
|
|
Security
|
|
Shares
|
|
|
Value
|
|
Novo Nordisk A/S, Class B
|
|
|
58,342
|
|
|
$
|
9,898,653
|
|
Pfizer, Inc.
|
|
|
1,075,613
|
|
|
|
31,440,168
|
|
Roche Holding AG PC
|
|
|
69,467
|
|
|
|
17,095,063
|
|
Sanofi
|
|
|
141,378
|
|
|
|
14,799,973
|
|
Shire PLC ADR
|
|
|
35,005
|
|
|
|
3,827,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
121,453,731
|
|
|
|
|
|
|
|
|
|
|
Real Estate Investment Trusts (REITs) 1.2%
|
|
|
|
|
|
|
|
|
AvalonBay Communities, Inc.
|
|
|
67,827
|
|
|
$
|
9,179,706
|
|
Boston Properties, Inc.
|
|
|
107,429
|
|
|
|
11,489,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
20,669,238
|
|
|
|
|
|
|
|
|
|
|
Road & Rail 1.5%
|
|
|
|
|
|
|
|
|
Union Pacific Corp.
|
|
|
165,349
|
|
|
$
|
26,222,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
26,222,698
|
|
|
|
|
|
|
|
|
|
|
Software 2.2%
|
|
|
|
|
|
|
|
|
Microsoft Corp.
|
|
|
587,164
|
|
|
$
|
18,689,430
|
|
Oracle Corp.
|
|
|
391,526
|
|
|
|
12,665,866
|
|
SAP AG
|
|
|
83,684
|
|
|
|
6,131,645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
37,486,941
|
|
|
|
|
|
|
|
|
|
|
Specialty Retail 1.3%
|
|
|
|
|
|
|
|
|
Home Depot, Inc. (The)
|
|
|
149,833
|
|
|
$
|
11,841,302
|
|
Industria de Diseno Textil SA
|
|
|
43,482
|
|
|
|
5,804,178
|
|
Kingfisher PLC
|
|
|
725,941
|
|
|
|
4,391,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
22,037,413
|
|
|
|
|
|
|
|
|
|
|
Textiles, Apparel & Luxury Goods 1.6%
|
|
|
|
|
|
|
|
|
Adidas AG
|
|
|
38,724
|
|
|
$
|
4,316,367
|
|
Compagnie Financiere Richemont SA, Class A
|
|
|
42,000
|
|
|
|
4,108,547
|
|
LVMH Moet Hennessy Louis Vuitton SA
|
|
|
32,049
|
|
|
|
5,833,859
|
|
NIKE, Inc., Class B
|
|
|
221,135
|
|
|
|
13,913,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
28,172,587
|
|
|
|
|
|
|
|
|
|
|
Tobacco 1.5%
|
|
|
|
|
|
|
|
|
British American Tobacco PLC
|
|
|
120,651
|
|
|
$
|
6,436,341
|
|
Philip Morris International, Inc.
|
|
|
217,659
|
|
|
|
19,410,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
25,847,171
|
|
|
|
|
|
|
|
|
|
|
Wireless Telecommunication Services 0.9%
|
|
|
|
|
|
|
|
|
Vodafone Group PLC
|
|
|
4,962,479
|
|
|
$
|
14,862,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
14,862,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Common Stocks
(identified cost $1,198,375,880)
|
|
|
|
|
|
$
|
1,707,098,815
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covered Put Options Purchased 0.0%
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security
|
|
Number of
Contracts
|
|
|
Strike
Price
|
|
|
Expiration
Date
|
|
|
Value
|
|
Netflix, Inc.
|
|
|
293
|
|
|
$
|
250.00
|
|
|
|
8/17/13
|
|
|
$
|
335,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Covered Put Options Purchased
(identified cost $427,021)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
335,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments 98.5%
(identified cost $1,198,802,901)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,707,434,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Call Options Written (0.2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Number of
Contracts
|
|
|
Strike
Price
|
|
|
Expiration
Date
|
|
|
Value
|
|
S&P 500 Index
|
|
|
4,825
|
|
|
$
|
1,775.00
|
|
|
|
10/19/13
|
|
|
$
|
(2,798,500
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Call Options Written
(premiums received $2,598,659)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(2,798,500
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covered Call Options Written (0.0)%
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security
|
|
Number of
Contracts
|
|
|
Strike
Price
|
|
|
Expiration
Date
|
|
|
Value
|
|
Netflix, Inc.
|
|
|
293
|
|
|
$
|
300.00
|
|
|
|
8/17/13
|
|
|
$
|
(6,299
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Covered Call Options Written
(premiums received $308,359)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(6,299
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covered Put Options Written (0.0)%
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security
|
|
Number of
Contracts
|
|
|
Strike
Price
|
|
|
Expiration
Date
|
|
|
Value
|
|
Netflix, Inc.
|
|
|
293
|
|
|
$
|
215.00
|
|
|
|
8/17/13
|
|
|
$
|
(25,638
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Covered Put Options Written
(premiums received $129,275)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(25,638
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Assets, Less Liabilities 1.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
28,999,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets 100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,733,603,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
During the fiscal year to date ended July 31, 2013, the Fund held interests in Eaton Vance Cash Reserves Fund, LLC, an affiliated investment
company, available to Eaton Vance portfolios and funds, which invests in high quality, U.S. dollar denominated money market instruments. Net income allocated from the investment in Eaton Vance Cash Reserves Fund, LLC for the fiscal year to date
ended July 31, 2013 was $13,515.
|
|
|
|
|
|
|
ADR
|
|
-
|
|
|
|
American Depositary Receipt
|
|
|
|
|
PC
|
|
-
|
|
|
|
Participation Certificate
|
(1)
|
Non-income producing security.
|
(2)
|
Amount is less than 0.05%.
|
6
|
|
|
|
|
|
|
|
|
|
|
|
Country Concentration of Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
Country
|
|
Percentage of
Net Assets
|
|
|
Value
|
|
United States
|
|
|
76.2
|
%
|
|
$
|
1,321,503,668
|
|
United Kingdom
|
|
|
6.5
|
|
|
|
113,366,812
|
|
Switzerland
|
|
|
3.6
|
|
|
|
62,033,415
|
|
France
|
|
|
3.1
|
|
|
|
53,348,887
|
|
Germany
|
|
|
2.4
|
|
|
|
41,909,008
|
|
Ireland
|
|
|
2.2
|
|
|
|
37,927,552
|
|
Netherlands
|
|
|
1.5
|
|
|
|
25,469,498
|
|
Japan
|
|
|
0.7
|
|
|
|
11,091,425
|
|
Denmark
|
|
|
0.6
|
|
|
|
9,898,653
|
|
Spain
|
|
|
0.3
|
|
|
|
5,804,178
|
|
Australia
|
|
|
0.3
|
|
|
|
5,524,129
|
|
Sweden
|
|
|
0.3
|
|
|
|
5,473,409
|
|
Belgium
|
|
|
0.3
|
|
|
|
5,473,309
|
|
Italy
|
|
|
0.3
|
|
|
|
4,497,623
|
|
Norway
|
|
|
0.2
|
|
|
|
4,112,734
|
|
|
|
|
|
|
|
|
|
|
Total Investments
|
|
|
98.5
|
%
|
|
$
|
1,707,434,300
|
|
|
|
|
|
|
|
|
|
|
The cost and unrealized appreciation (depreciation) of investments of the Fund at July 31, 2013, as determined on a
federal income tax basis, were as follows:
|
|
|
|
|
Aggregate cost
|
|
$
|
1,199,385,348
|
|
|
|
|
|
|
Gross unrealized appreciation
|
|
$
|
511,655,453
|
|
Gross unrealized depreciation
|
|
|
(3,606,501
|
)
|
|
|
|
|
|
Net unrealized appreciation
|
|
$
|
508,048,952
|
|
|
|
|
|
|
A summary of open financial instruments at July 31, 2013 is as follows:
Forward Foreign Currency Exchange Contracts
Sales
|
|
|
|
|
|
|
|
|
|
|
Settlement
Date
|
|
Deliver
|
|
In Exchange For
|
|
Counterparty
|
|
Net Unrealized
Depreciation
|
|
8/30/13
|
|
Japanese Yen
1,099,083,000
|
|
United States Dollar
11,218,395
|
|
Credit Suisse International
|
|
|
$ (8,662)
|
|
7
Written options activity for the fiscal year to date ended July 31, 2013 was as follows:
|
|
|
|
|
|
|
|
|
|
|
Number of
Contracts
|
|
|
Premiums
Received
|
|
Outstanding, beginning of period
|
|
|
5,900
|
|
|
$
|
6,140,573
|
|
Options written
|
|
|
54,281
|
|
|
|
87,681,745
|
|
Options terminated in closing purchase transactions
|
|
|
(48,045
|
)
|
|
|
(80,355,832
|
)
|
Options expired
|
|
|
(6,725
|
)
|
|
|
(10,430,193
|
)
|
|
|
|
|
|
|
|
|
|
Outstanding, end of period
|
|
|
5,411
|
|
|
$
|
3,036,293
|
|
|
|
|
|
|
|
|
|
|
All of the assets of the Fund are subject to segregation to satisfy the requirements of the escrow agent. At
July 31, 2013, the Fund had sufficient cash and/or securities to cover commitments under these contracts.
In the normal course of
pursuing its investment objectives, the Fund is subject to the following risks:
Equity Price Risk: The Fund writes index call options above
the current value of the index to generate premium income. In writing index call options, the Fund in effect, sells potential appreciation in the value of the applicable index 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 index decline. During the fiscal year to date ended July 31, 2013, the Fund also entered into a combination of option transactions on an individual
security to seek return and/or to seek to reduce the Funds exposure to a decline in the stock price.
Foreign Exchange Risk: Because the
Fund holds foreign currency denominated investments, the value of these investments and related receivables and payables may change due to future changes in foreign currency exchange rates. To hedge against this risk, the Fund enters into forward
foreign currency exchange contracts.
The fair value of open derivative instruments (not considered to be hedging instruments for accounting
disclosure purposes) by risk exposure at July 31, 2013 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value
|
|
Risk
|
|
Derivative
|
|
Asset
Derivative
|
|
|
Liability
Derivative
|
|
Equity Price
|
|
Options Purchased
|
|
$
|
335,485
|
|
|
$
|
|
|
Equity Price
|
|
Options Written
|
|
|
|
|
|
|
(2,830,437
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
335,485
|
|
|
$
|
(2,830,437
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Exchange
|
|
Forward Foreign Currency Exchange Contracts
|
|
$
|
|
|
|
$
|
(8,662
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
|
$
|
(8,662
|
)
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
8
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 July 31, 2013, 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
|
|
$
|
172,018,751
|
|
|
$
|
35,546,309
|
|
|
$
|
|
|
|
$
|
207,565,060
|
|
Consumer Staples
|
|
|
149,757,297
|
|
|
|
59,142,492
|
|
|
|
|
|
|
|
208,899,789
|
|
Energy
|
|
|
147,945,035
|
|
|
|
26,106,751
|
|
|
|
|
|
|
|
174,051,786
|
|
Financials
|
|
|
264,090,320
|
|
|
|
47,130,017
|
|
|
|
|
|
|
|
311,220,337
|
|
Health Care
|
|
|
175,540,429
|
|
|
|
68,845,123
|
|
|
|
|
|
|
|
244,385,552
|
|
Industrials
|
|
|
160,426,031
|
|
|
|
8,174,115
|
|
|
|
|
|
|
|
168,600,146
|
|
Information Technology
|
|
|
213,116,764
|
|
|
|
6,131,645
|
|
|
|
|
|
|
|
219,248,409
|
|
Materials
|
|
|
53,481,256
|
|
|
|
8,478,659
|
|
|
|
|
|
|
|
61,959,915
|
|
Telecommunication Services
|
|
|
36,924,983
|
|
|
|
14,862,993
|
|
|
|
|
|
|
|
51,787,976
|
|
Utilities
|
|
|
46,896,788
|
|
|
|
12,483,057
|
|
|
|
|
|
|
|
59,379,845
|
|
Total Common Stocks
|
|
$
|
1,420,197,654
|
|
|
$
|
286,901,161
|
*
|
|
$
|
|
|
|
$
|
1,707,098,815
|
|
Covered Put Options Purchased
|
|
$
|
335,485
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
335,485
|
|
Total Investments
|
|
$
|
1,420,533,139
|
|
|
$
|
286,901,161
|
|
|
$
|
|
|
|
$
|
1,707,434,300
|
|
|
|
|
|
|
Liability Description
|
|
|
|
|
|
|
|
|
|
|
|
|
Call Options Written
|
|
$
|
(2,798,500
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(2,798,500
|
)
|
Covered Call Options Written
|
|
|
(6,299
|
)
|
|
|
|
|
|
|
|
|
|
|
(6,299
|
)
|
Covered Put Options Written
|
|
|
(25,638
|
)
|
|
|
|
|
|
|
|
|
|
|
(25,638
|
)
|
Forward Foreign Currency Exchange Contracts
|
|
|
|
|
|
|
(8,662
|
)
|
|
|
|
|
|
|
(8,662
|
)
|
Total
|
|
$
|
(2,830,437
|
)
|
|
$
|
(8,662
|
)
|
|
$
|
|
|
|
$
|
(2,839,099
|
)
|
*
|
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
October 31, 2012 whose fair value was determined using Level 3 inputs. At July 31, 2013, there were no investments transferred between Level 1 and Level 2 during the fiscal year to date then ended.
For information on the Funds policy regarding the valuation of investments and other significant accounting policies, please refer to the
Funds most recent financial statements included in its semiannual or annual report to shareholders.
9
Item 2. 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 on this Form N-Q 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 on this Form N-Q 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 fiscal quarter for which the report is being filed that have materially affected, or are
reasonably likely to materially affect the registrants internal control over financial reporting.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Eaton Vance Tax-Managed Diversified Equity Income Fund
|
|
|
|
|
By:
|
|
/s/ Walter A. Row, III
|
|
|
Walter A. Row, III
|
|
|
President
|
|
|
Date:
|
|
September 23, 2013
|
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/ Walter A. Row, III
|
|
|
Walter A. Row, III
|
|
|
President
|
|
|
Date:
|
|
September 23, 2013
|
|
|
|
|
|
By:
|
|
/s/ James F. Kirchner
|
|
|
James F. Kirchner
|
|
|
Treasurer
|
|
|
Date:
|
|
September 23, 2013
|
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