Item 1. Reports to Stockholders
Eaton Vance
Enhanced Equity
Income Fund II (EOS)
Annual Report
December 31, 2021
Commodity Futures Trading Commission Registration. The Commodity Futures
Trading Commission (CFTC) has adopted regulations that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a prescribed level of its assets in certain CFTC-regulated instruments
(including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. The investment adviser has claimed an exclusion from the definition of commodity pool operator under the
Commodity Exchange Act with respect to its management of the Fund. Accordingly, neither the Fund nor the adviser with respect to the operation of the Fund is subject to CFTC regulation. Because of its management of other strategies, the Funds
adviser is registered with the CFTC as a commodity pool operator. The adviser is also registered as a commodity trading advisor.
Managed Distribution Plan. Pursuant to an exemptive order issued by the Securities and Exchange Commission (Order), the Fund is authorized to distribute
long-term capital gains to shareholders more frequently than once per year. Pursuant to the Order, the Funds Board of Trustees approved a Managed Distribution Plan (MDP) pursuant to which the Fund makes monthly cash distributions to common
shareholders, stated in terms of a fixed amount per common share.
The Fund currently distributes monthly cash distributions equal to $0.1373 per share in
accordance with the MDP. You should not draw any conclusions about the Funds investment performance from the amount of these distributions or from the terms of the MDP. The MDP will be subject to regular periodic review by the Funds
Board of Trustees and the Board may amend or terminate the MDP at any time without prior notice to Fund shareholders. However, at this time there are no reasonably foreseeable circumstances that might cause the termination of the MDP.
The Fund may distribute more than its net investment income and net realized capital gains and, therefore, a distribution may include a return of capital. A return of
capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income. With each distribution, the Fund will issue a notice to shareholders and a press
release containing information about the amount and sources of the distribution and other related information. The amounts and sources of distributions contained in the notice and press release are only estimates and are not provided for tax
purposes. The amounts and sources of the Funds distributions for tax purposes will be reported to shareholders on Form 1099-DIV for each calendar year.
Fund shares are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.
Annual Report December 31, 2021
Eaton Vance
Enhanced Equity Income Fund II
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Managements Discussion of Fund
Performance1
Economic and Market Conditions
The 12-month period starting January 1, 2021, was notable for a U.S. equity rally that lasted for most of the period and resulted in U.S. stocks outperforming most
other stock markets in developed economies. Except for temporary retreats in September and November, broad-market indexes generally posted strong returns during the period. Investors cheered the reopening of businesses that had been affected by the
pandemic and the rollout of several highly effective COVID-19 vaccines.
COVID-19, however, continued to have a firm grip on the U.S. economy. Disease rates advanced
and declined with second, third, and fourth waves of infections. Worker shortages led to global supply-chain disruptions. From computer chips to shipping containers, scarcities of key items led to temporary factory shutdowns and empty store shelves.
Those shortages combined with high demand from consumers eager to spend money saved earlier in the pandemic led to higher year-over-year inflation than the U.S. had seen in decades.
Still, investor optimism about a recovering economy drove stock prices up during most of the period. A significant pullback, however, occurred in September 2021 when
virtually every major U.S. stock index reported negative returns. Unexpectedly weak job creation in August and the U.S. Federal Reserves (the Feds) announcement that it might soon begin tapering its monthly bond purchases which
had stimulated the economy earlier combined to drive stocks into negative territory. Rising COVID-19 infections also weighed on equity performance in September.
In the final quarter of 2021, however, stock prices came roaring back. Even the late-November news of a new and more transmissible COVID-19 variant Omicron
caused only a temporary market retreat. The Feds actions to tamp down inflation were applauded by investors, with stocks gaining ground after the central bank announced that tapering would be accelerated and that three possible interest rate
hikes were forecast for 2022. Just two trading days before year-end, the S&P 500® Index closed at its 70th new all-time high for the period, and the Dow Jones Industrial Average® (DJIA) closed at an all-time high as well.
For the period as a whole, the broad-market S&P 500® Index returned 28.71%; the blue-chip DJIA was up 20.95%; and the technology-laden Nasdaq Composite Index rose 22.18%. Large-cap U.S. stocks, as measured by the Russell 1000® Index, outperformed their small-cap counterparts, as measured by the Russell 2000® Index. In the large-cap space, growth stocks modestly
outperformed value stocks, but in the small-cap space, value stocks strongly outperformed growth stocks during the period.
Fund Performance
For the 12-month period ended December 31, 2021, Eaton Vance Enhanced Equity Income Fund II (the Fund) returned 18.82% at net asset value of its common
shares (NAV), underperforming its equity benchmark, the Russell 1000® Growth Index (the Index), which returned 27.60%. The Fund underperformed one of its two options benchmarks, the Cboe
S&P 500 BuyWrite IndexSM, which returned 20.47%; but outperformed its other options benchmark, the Cboe NASDAQ-100 BuyWrite IndexSM, which
returned 10.56% during the period. The Funds underlying common stock portfolio underperformed the Index.
The Funds options overlay strategy (the options
strategy) detracted from Fund performance versus the Index during the period. The options strategy, which is designed to help limit the Funds exposure to market volatility and contribute to current income, may be beneficial during times of
market weakness, but it may also detract from performance during periods of market strength.
Particularly in the information technology (IT) sector, the options
strategy weighed on the Funds relative return during the period. Call options sold on Microsoft Corp., Intuit, Inc., and Alphabet, Inc. had the largest negative impact on Fund performance. Meanwhile, call options sold on Visa, Inc., Meta
Platforms, Inc., and Amazon.com, Inc. were the most profitable during the period.
In the Funds common stock portfolio, stock selections in the IT and consumer
discretionary sectors, along with stock selections and an overweight position relative to the Index in the health care sector, detracted from Fund performance versus the Index during the period.
In the IT sector, the Funds underweight position in NVIDIA Corp. (NVIDIA), a maker of computer graphics processing units used in gaming, data center, and
self-driving vehicle applications, hurt relative returns. Long-term tailwinds growth in the gaming, artificial intelligence, and autonomous vehicle industries combined with a sharp increase in gaming and data center demand during the
pandemic helped NVIDIAs stock price more than double during the period. By period-end, the stock was sold from the Fund.
In the consumer discretionary sector,
underweighting electric car maker Tesla, Inc. (Tesla) due to inconsistency of earnings and the companys high valuation hurt relative performance as vehicle deliveries and profits rose and Teslas stock performed strongly
during the period. By period-end, Tesla was sold from the Fund.
In contrast, stock selections in the communication services, financials, and industrials sectors
contributed to Fund performance versus the Index. In the communication services sector, the Funds overweight position in Alphabet, Inc. (Alphabet), parent company of search engine Google, performed strongly as positive e-commerce trends drove
increased demand for search engine advertising and engagement during the period. In addition, growth in viewership and ad sales on video sharing platform YouTube, an Alphabet subsidiary, exceeded analyst expectations during the period and provided
an additional tailwind for Alphabets stock price.
Fund Distributions
Pursuant to an exemptive order issued by the Securities and Exchange Commission (the Order), the Fund is authorized to distribute long-term capital gains to shareholders
more frequently than once per year. Pursuant to the Order, the Funds Board of Trustees approved a Managed Distribution Plan (MDP) pursuant to which the Fund makes monthly cash distributions to common shareholders. The Funds MDP had no
effect on the Funds investment strategy during the most recent fiscal year and is not expected to have an effect in future periods, but distributions in excess of Fund returns will cause its per share NAV to erode. Investors should not draw
any conclusions about the Funds investment performance from the amount of its distribution or from the terms of its MDP.
For the period from January 1,
2021 to July 31, 2021, the Fund made monthly distributions of $0.0988 per share and, for the period from August 1, 2021 to December 31, 2021, the Fund made monthly distributions of $0.1373 per share. The Funds distributions may
be comprised of amounts characterized for federal income tax purposes as qualified and non-qualified ordinary dividends, capital gains and non-dividend distributions, also known as return of capital distributions. The federal income tax character of
distributions is determined after the end of the calendar year and reported to shareholders on the Internal Revenue Services form 1099-DIV. For additional information, see Note 2 in the Notes to Financial Statements herein.
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated net of management fees and other expenses by determining the percentage
change in net asset value (NAV) or market price (as applicable) with all distributions reinvested in accordance with the Funds Dividend Reinvestment Plan. Performance at market price will differ from performance at NAV due to variations in the
Funds market price versus NAV, which may reflect factors such as fluctuations in supply and demand for Fund shares, changes in Fund distributions, shifting market expectations for the Funds future returns and distribution rates, and
other considerations affecting the trading prices of closed-end funds. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost.Performance for periods less than or equal to
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
eatonvance.com.
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Performance2
Portfolio Manager(s) Lewis R. Piantedosi and Douglas R. Rogers, CFA, CMT
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% Average Annual Total Returns |
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Inception Date |
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One Year |
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Five Years |
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Ten Years |
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Fund at NAV |
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01/31/2005 |
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18.82 |
% |
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19.37 |
% |
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15.67 |
% |
Fund at Market Price |
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20.40 |
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21.81 |
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17.73 |
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Russell 1000® Growth Index |
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27.60 |
% |
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25.30 |
% |
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19.77 |
% |
Cboe S&P 500 BuyWrite IndexSM |
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20.47 |
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7.84 |
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7.53 |
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Cboe NASDAQ100 BuyWrite IndexSM |
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10.56 |
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10.50 |
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8.84 |
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% Premium/Discount to NAV3 |
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3.67 |
% |
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Distributions4 |
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Total Distributions per share for the period |
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$ |
1.378 |
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Distribution Rate at NAV |
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6.95 |
% |
Distribution Rate at Market Price |
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6.70 |
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Growth of $10,000
This graph shows the change in value of a hypothetical
investment of $10,000 in the Fund for the period indicated. For comparison, the same investment is shown in the indicated index.
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated net of management fees and other expenses by determining the percentage
change in net asset value (NAV) or market price (as applicable) with all distributions reinvested in accordance with the Funds Dividend Reinvestment Plan. Performance at market price will differ from performance at NAV due to variations in the
Funds market price versus NAV, which may reflect factors such as fluctuations in supply and demand for Fund shares, changes in Fund distributions, shifting market expectations for the Funds future returns and distribution rates, and
other considerations affecting the trading prices of closed-end funds. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance for periods less than or equal to
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
eatonvance.com.
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Fund Profile
Sector Allocation (% of total investments)5
Top 10 Holdings (% of total investments)5
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Amazon.com, Inc. |
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8.1 |
% |
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Microsoft Corp. |
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7.7 |
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Alphabet, Inc., Class C |
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7.6 |
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Apple, Inc. |
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5.8 |
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Visa, Inc., Class A |
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4.3 |
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Adobe, Inc. |
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3.7 |
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Meta Platforms, Inc., Class A |
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3.2 |
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Intuit, Inc. |
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3.0 |
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QUALCOMM, Inc. |
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2.8 |
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PayPal Holdings, Inc. |
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2.7 |
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Total |
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48.9 |
% |
See Endnotes and Additional Disclosures in this
report.
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
The Funds Investment Objectives,
Principal Strategies and Principal Risks6
Investment Objectives. The
Funds investment objective is to provide current income, with a secondary objective of capital appreciation.
Principal Strategies. The Fund pursues its investment objectives by investing primarily in a portfolio of mid-and large-capitalization common stocks. Under
normal market conditions, the Fund seeks to generate current earnings from option premiums by selling covered call options on a substantial portion of its portfolio securities.
Under normal market conditions, the Fund invests at least 80% of its total assets in common stocks. The Fund generally invests in common stocks on which exchange traded
call options are currently available. The Fund invests primarily in common stocks of U.S. issuers, although the Fund may invest up to 25% of its total assets in securities of foreign issuers, including American Depositary Receipts
(ADRs), Global Depositary Receipts (GDRs) and European Depositary Receipts (EDRs).
Under
normal market conditions, the Fund pursues its primary investment objective principally by employing an options strategy of writing (selling) covered call options on a substantial portion of its portfolio securities, although on up to 5% of the
Funds net assets, the Fund may sell the stock underlying a call option prior to purchasing back the call option. Such sales shall occur no more than three days before the option buy back. The extent of option writing activity will depend upon
market conditions and the Advisers ongoing assessment of the attractiveness of writing call options on the Funds stock holdings. Writing call options involves a tradeoff between the option premiums received and reduced participation in
potential future stock price appreciation. Depending on the Advisers evaluation, the Fund may write call options on varying percentages of the Funds common stock holdings. The Fund seeks to generate current earnings from option writing
premiums and, to a lesser extent, from dividends on stocks held.
In addition to the strategy of selling covered call options, the Fund may invest up to 20% of its
total assets in other derivative instruments acquired for hedging, risk management and investment purposes, provided that no more than 10% of the Funds total assets may be invested in such derivative instruments acquired for non-hedging
purposes. Among other derivative strategies, the Fund may purchase put options on the S&P 500® and other broad-based securities indices deemed suitable for this purpose, and/or on
individual stocks held in its portfolio or use other derivative instruments in order to help protect against a decline in the value of its portfolio securities. Derivative instruments may be used by the Fund to enhance returns or as a substitute for
the purchase or sale of securities.
Principal Risks
Market Discount Risk. As with any security, the market value of the common shares may increase or decrease from the amount initially paid for the common shares.
The Funds common shares have traded both at a premium and at a discount relative to NAV. The shares of closed-end management investment companies frequently trade at a discount from their NAV. This is a risk separate and distinct from the risk
that the Funds NAV may decrease.
Market Risk. The value of investments held by the Fund may increase or decrease in response to economic, political,
financial, public health crises (such as epidemics or pandemics) or other disruptive events (whether real, expected or perceived) in the U.S. and global markets. These events may negatively impact broad segments of businesses and populations and may
exacerbate pre-existing risks to the Fund. The frequency and magnitude of
resulting changes in the value of the Funds investments cannot be predicted. Certain securities and other investments held by the Fund may experience increased volatility, illiquidity, or
other potentially adverse effects in reaction to changing market conditions. Monetary and/or fiscal actions taken by U.S. or foreign governments to stimulate or stabilize the global economy may not be effective and could lead to high market
volatility. No active trading market may exist for certain investments held by the Fund, which may impair the ability of the Fund to sell or to realize the current valuation of such investments in the event of the need to liquidate such assets.
Equity Securities Risk. The value of equity securities and related instruments may decline in response to adverse changes in the economy or the economic outlook;
deterioration in investor sentiment; interest rate, currency, and commodity price fluctuations; adverse geopolitical, social or environmental developments; issuer and sector-specific considerations; unexpected trading activity among retail
investors; or other factors. Market conditions may affect certain types of stocks to a greater extent than other types of stocks. If the stock market declines in value, the value of the Funds equity securities will also likely decline.
Although prices can rebound, there is no assurance that values will return to previous levels.
Option Strategy Risk. As the writer of a call option, the Fund
forgoes, during the options life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the option premium received and the exercise price of the call, but has retained the risk
of loss, minus the option premium received, should the price of the underlying security decline. The writer of an option has no control over when during the exercise period of the option it may be required to fulfill its obligation as a writer of
the option. Once an option writer has received an exercise notice, it cannot effect a closing purchase transaction in order to terminate its obligation under the option and must deliver the underlying security at the exercise price. Thus, the use of
options may require the Fund to sell portfolio securities at inopportune times or for prices other than current market values, will limit the amount of appreciation the Fund can realize on an investment, or may cause the Fund to hold a security that
it might otherwise sell. The value of options may also be adversely affected if the market for such options becomes less liquid or smaller.
Derivatives Risk.
The Funds exposure to derivatives involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other investments. The use of derivatives can lead to losses because of adverse movements
in the price or value of the security, instrument, index, currency, commodity, economic indicator or event underlying a derivative (reference instrument), due to failure of a counterparty or due to tax or regulatory constraints.
Derivatives may create leverage in the Fund, which represents a non-cash exposure to the underlying reference instrument. Leverage can increase both the risk and return potential of the Fund. Derivatives risk may be more significant when derivatives
are used to enhance return or as a substitute for a cash investment position, rather than solely to hedge the risk of a position held by the Fund. Use of derivatives involves the exercise of specialized skill and judgment, and a transaction may be
unsuccessful in whole or in part because of market behavior or unexpected events. Changes in the value of a derivative (including one used for hedging) may not correlate perfectly with the underlying reference instrument. Derivative instruments
traded in over-the-counter markets may be difficult to value, may be illiquid, and may be subject to wide swings in valuation caused by changes in the value of the underlying reference instrument. If a derivatives counterparty is unable
See Endnotes and Additional Disclosures in this
report.
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
The Funds Investment Objectives, Principal Strategies and
Principal Risks6 continued
to honor its commitments, the value of Fund shares may decline and the Fund could experience delays in the return of
collateral or other assets held by the counterparty. The loss on derivative transactions may substantially exceed the initial investment, particularly when there is no stated limit on the Funds use of derivatives. A derivative investment also
involves the risks relating to the reference instrument underlying the investment.
Risks of Investing in Smaller and Mid-Sized Companies. The Fund may make
investments in stocks of companies whose market capitalization is considered middle sized or mid-cap. Smaller and mid-sized companies often are newer or less established companies than larger companies. Investments in smaller and
mid-sized companies carry additional risks because earnings of these companies tend to be less predictable; they often have limited product lines, markets, distribution channels or financial resources; and the management of such companies may be
dependent upon one or a few key people. The market movements of equity securities of smaller and mid-sized companies may be more abrupt or erratic than the market movements of equity securities of larger, more established companies or the stock
market in general. Historically, smaller and mid-sized companies have sometimes gone through extended periods when they did not perform as well as larger companies. In addition, equity securities of smaller and mid-sized companies generally are less
liquid than those of larger companies.
Foreign Investment Risk. Foreign investments can be adversely affected by political, economic and market developments
abroad, including the imposition of economic and other sanctions by the United States or another country. There may be less publicly available information about foreign issuers because they may not be subject to reporting practices, requirements or
regulations comparable to those to which U.S. companies are subject. Foreign markets may be smaller, less liquid and more volatile than the major markets in the United States, and as a result, Fund share values may be more volatile. Trading in
foreign markets typically involves higher expense than trading in the United States. The Fund may have difficulties enforcing its legal or contractual rights in a foreign country.
Emerging Markets Investment Risk. Investment markets within emerging market countries are typically smaller, less liquid, less developed and more volatile than
those in more developed markets like the United States, and may be focused in certain sectors. Emerging market securities often involve greater risks than developed market securities. The information available about an emerging market issuer may be
less reliable than for comparable issuers in more developed capital markets.
Currency Risk. Exchange rates for currencies fluctuate daily. The value of
foreign investments may be affected favorably or unfavorably by changes in currency exchange rates in relation to the U.S. dollar. Currency markets generally are not as regulated as securities markets and currency transactions are subject to
settlement, custodial and other operational risks.
LIBOR Transition and Associated Risk. The London Interbank Offered Rate or LIBOR is used throughout global
banking and financial industries to determine interest rates for a variety of financial instruments (such as debt instruments and derivatives) and borrowing arrangements. The ICE Benchmark Administration Limited, the administrator of LIBOR, ceased
publishing certain LIBOR settings on December 31, 2021, and is expected to cease publishing the remaining LIBOR settings on June 30, 2023. The Fund has exposure to LIBOR-based instruments. Although the transition process away from LIBOR has become
increasingly well-defined, the impact on certain debt securities, derivatives and other financial
instruments that utilize LIBOR remains uncertain. The transition process may involve, among other things, increased volatility or illiquidity in markets for instruments that currently rely on
LIBOR, such as floating-rate debt obligations. Any effects of the transition away from LIBOR and the adoption of alternative reference rates, as well as other unforeseen effects, could result in losses to the Fund. Such effects may occur prior to
the anticipated discontinuation of the remaining LIBOR settings in 2023. Furthermore, the risks associated with the discontinuation of LIBOR and transition to replacement rates may be exacerbated if an orderly transition to an alternative reference
rate is not completed in a timely manner.
Interest Rate Risk. The level of premiums from call options writing and the amounts available for distribution from
the Funds options activity may decrease in declining interest rate environments. Any preferred stocks paying fixed dividend rates in which the Fund invests, will likely change in value as market interest rates change. When interest rates rise,
the market value of such securities generally will fall. To the extent that the Fund invests in preferred stocks, the net asset value and price of the Common Shares may decline if market interest rates rise. Interest rates are currently low relative
to historic levels. During periods of declining interest rates, an issuer of preferred stock may exercise its option to redeem securities prior to maturity, forcing the Fund to reinvest in lower yielding securities. This is known as call risk.
During periods of rising interest rates, the average life of certain types of securities may be extended because of slower than expected payments. This may lock in a below market yield, increase the securitys duration, and reduce the value of
the security. This is known as extension risk. The value of the Funds common stock investments may also be influenced by changes in interest rates.
Sector
Risk. Because the Fund may, under certain market conditions, invest a significant portion of its assets in the utilities and/or financial services sectors, the value of Fund shares may be affected by events that adversely affect those sectors
and may fluctuate more than that of a more broadly diversified fund.
Liquidity Risk. The Fund is exposed to liquidity risk when trading volume, lack of a
market maker or trading partner, large position size, market conditions, or legal restrictions impair its ability to sell particular investments or to sell them at advantageous market prices. Consequently, the Fund may have to accept a lower price
to sell an investment or continue to hold it or keep the position open, sell other investments to raise cash or abandon an investment opportunity, any of which could have a negative effect on the Funds performance. These effects may be
exacerbated during times of financial or political stress.
Risks Associated with Active Management. The success of the Funds investment strategy depends
on portfolio managements successful application of analytical skills and investment judgment. Active management involves subjective decisions.
Recent Market
Conditions. An outbreak of respiratory disease caused by a novel coronavirus was first detected in China in late 2019 and subsequently spread internationally. This coronavirus has resulted in closing borders, enhanced health screenings,
changes to healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this coronavirus has resulted in a substantial economic
downturn, which may continue for an extended period of time. Health crises caused by outbreaks of disease, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and economic risks and
See Endnotes and Additional Disclosures in this
report.
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
The Funds Investment Objectives, Principal Strategies and
Principal Risks6 continued
disrupt normal market conditions and operations. The impact of this outbreak has negatively affected the worldwide economy,
as well as the economies of individual countries and industries, and could continue to affect the market in significant and unforeseen ways. Other epidemics and pandemics that may arise in the future may have similar effects. For example, a global
pandemic or other widespread health crisis could cause substantial market volatility and exchange trading suspensions and closures. In addition, the increasing interconnectedness of markets around the world may result in many markets being affected
by events or conditions in a single country or region or events affecting a single or small number of issuers. The coronavirus outbreak and public and private sector responses thereto have led to large portions of the populations of many countries
working from home for indefinite periods of time, temporary or permanent layoffs, disruptions in supply chains, and lack of availability of certain goods. The impact of such responses could adversely affect the information technology and operational
systems upon which the Fund and the Funds service providers rely, and could otherwise disrupt the ability of the employees of the Funds service providers to perform critical tasks relating to the Fund. Any such impact could adversely
affect the Funds performance, or the performance of the securities in which the Fund invests and may lead to losses on your investment in the Fund.
Cybersecurity Risk. With the increased use of technologies by Fund service providers to conduct business, such as the Internet, the Fund is susceptible to
operational, information security and related risks. In general, cyber incidents can result from deliberate attacks or unintentional events. Cybersecurity failures by or breaches of the Funds investment adviser or administrator and other
service providers (including, but not limited to, the custodian or transfer agent), and the issuers of securities in which the Fund invests, may disrupt and otherwise adversely affect their business operations. This may result in financial losses to
the Fund, impede Fund trading, interfere with the Funds ability to calculate its NAV, interfere with Fund shareholders ability to transact business or cause violations of applicable privacy and other laws, regulatory fines, penalties,
reputational damage, reimbursement or other compensation costs, or additional compliance costs.
General Fund Investing Risks. The Fund is not a complete
investment program and there is no guarantee that the Fund will achieve its investment objective. It is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency.
Potential Conflicts of Interest
As a diversified global financial services firm, Morgan Stanley, the parent company of the investment adviser, engages in a broad spectrum of activities where Morgan
Stanleys interests or the interests of its clients may conflict with the interests of the Fund. Morgan Stanley advises clients and sponsors, manages or advises other investment funds and investment programs, accounts and businesses
(collectively, together with any new or successor Morgan Stanley funds, programs, accounts or businesses, (other than funds, programs, accounts or businesses sponsored, managed, or advised by former direct or indirect subsidiaries of Eaton Vance
Corp. (Eaton Vance Investment Accounts)), the MS Investment Accounts, and, together with the Eaton Vance Investment Accounts, the Affiliated Investment Accounts) with a wide variety of investment
objectives that in some instances may overlap or conflict with a Funds investment objectives
and present conflicts of interest. There is no assurance that conflicts of interest will be resolved in favor of Fund shareholders and, in fact, they may not be. Conflicts of interest not
described below may also exist.
Material Non-public Information. It is expected that confidential or material non-public information regarding an investment
or potential investment opportunity may become available to the investment adviser. If such information becomes available, the investment adviser may be precluded (including by applicable law or internal policies or procedures) from pursuing an
investment or disposition opportunity with respect to such investment or investment opportunity. Morgan Stanley has established certain information barriers and other policies to address the sharing of information between different businesses within
Morgan Stanley.
Investments by Morgan Stanley and its Affiliated Investment Accounts. In serving in multiple capacities to Affiliated Investment Accounts,
Morgan Stanley, including the investment adviser and its investment teams, may have obligations to other clients or investors in Affiliated Investment Accounts, the fulfillment of which may not be in the best interests of a Fund or its shareholders.
A Funds investment objectives may overlap with the investment objectives of certain Affiliated Investment Accounts. As a result, the members of an investment team may face conflicts in the allocation of investment opportunities among a Fund
and other investment funds, programs, accounts and businesses advised by or affiliated with the investment adviser. Certain Affiliated Investment Accounts may provide for higher management or incentive fees or greater expense reimbursements or
overhead allocations, all of which may contribute to this conflict of interest and create an incentive for the investment adviser to favor such other accounts. To seek to reduce potential conflicts of interest and to attempt to allocate investment
opportunities in a fair and equitable manner, the investment adviser has implemented allocation policies and procedures. These policies and procedures are intended to give all clients of the investment adviser, including the Fund(s), fair access to
investment opportunities, consistent with the requirements of organizational documents, investment strategies, applicable laws and regulations, and the fiduciary duties of the investment adviser.
Investments by Separate Investment Departments. The entities and individuals that provide investment-related services for the Fund and certain other Eaton Vance
Investment Accounts (the Eaton Vance Investment Department) may be different from the entities and individuals that provide investment-related services to MS Investment Accounts (the MS Investment Department and, together
with the Eaton Vance Investment Department, the Investment Departments). Although Morgan Stanley has implemented information barriers between the Investment Departments in accordance with internal policies and procedures, each Investment
Department may engage in discussions and share information and resources with the other Investment Department on certain investment-related matters. A MS Investment Account could trade in advance of a Fund (and vice versa), might complete trades
more quickly and efficiently than a Fund, and/or achieve different execution than a Fund on the same or similar investments made contemporaneously.
Morgan Stanley
Trading and Principal Investing Activities. Notwithstanding anything to the contrary herein, Morgan Stanley will generally conduct its sales and trading businesses, publish research and analysis, and render investment advice without regard for a
Funds holdings, although these activities could have an adverse impact on the value of one or more of the Funds investments, or could cause Morgan
See Endnotes and Additional Disclosures in this
report.
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
The Funds Investment Objectives, Principal Strategies and
Principal Risks6 continued
Stanley to have an interest in one or more portfolio investments that is different from, and potentially adverse to, that
of a Fund.
Morgan Stanleys Investment Banking and Other Commercial Activities. Morgan Stanley advises clients on a variety of mergers, acquisitions,
restructuring, bankruptcy and financing transactions. Morgan Stanley may act as an advisor to clients, including other investment funds that may compete with a Fund and with respect to investments that a Fund may hold. Morgan Stanley may give advice
and take action with respect to any of its clients or proprietary accounts that may differ from the advice given, or may involve an action of a different timing or nature than the action taken, by a Fund.
General Process for Potential Conflicts. All of the transactions described above involve the potential for conflicts of interest between the investment adviser,
related persons of the investment adviser and/or their clients. The Investment Advisers Act of 1940, as amended (the Advisers Act), the Investment Company Act of 1940, as amended (the 1940 Act), and the Employee Retirement
Income Security Act, as amended (ERISA) impose certain requirements designed to decrease the possibility of conflicts of interest between an investment adviser and its clients. In some cases, transactions may be permitted subject to
fulfillment of certain conditions. Certain other transactions may be prohibited. In addition, the investment adviser has instituted policies and procedures designed to prevent conflicts of interest from arising and, when they do arise, to ensure
that it effects transactions for clients in a manner that is consistent with its fiduciary duty to its clients and in accordance with applicable law.
See Endnotes and Additional Disclosures in this
report.
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Endnotes and Additional Disclosures
1 |
The views expressed in this report are those of the portfolio manager(s) and are current only through the date stated at
the top of this page. These views are subject to change at any time based upon market or other conditions, and Eaton Vance and the Fund(s) disclaim any responsibility to update such views. These views may not be relied upon as investment advice and,
because investment decisions are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Eaton Vance fund. This commentary may contain statements that are not historical facts, referred to as
forward-looking statements. The Funds actual future results may differ significantly from those stated in any forward-looking statement, depending on factors such as changes in securities or financial markets or general economic
conditions, the volume of sales and purchases of Fund shares, the continuation of investment advisory, administrative and service contracts, and other risks discussed from time to time in the Funds filings with the Securities and Exchange
Commission. |
2 |
Russell 1000® Growth Index is an unmanaged index of U.S. large-cap growth stocks. Cboe S&P 500 BuyWrite IndexSM measures the performance of a hypothetical buy-write strategy on the S&P 500® Index. Cboe NASDAQ100 BuyWrite IndexSM measures the performance of a theoretical portfolio that owns stocks included in the
NASDAQ100® Index and writes (sells) NASDAQ100® Index covered call options. 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. |
3 |
The shares of the Fund often trade at a discount or premium to their net asset value. The discount or premium may
vary over time and may be higher or lower than what is quoted in this report. For up-to-date premium/discount information, please refer to https://funds.eatonvance.com/closed-end-fund-prices.php.
|
4 |
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 comprised of amounts characterized for federal income tax purposes as qualified and non-qualified ordinary dividends, capital gains and nondividend
distributions, also known as return of capital. For additional information about nondividend distributions, please refer to Eaton Vance Closed-End Fund Distribution Notices (19a) posted on our website, eatonvance.com. The Fund will determine
the federal income tax character of distributions paid to a shareholder after the end of the calendar year. This is reported on the IRS form 1099-DIV and provided to the shareholder shortly after each year-end. For information about the tax
character of distributions made in prior calendar years, please refer to Performance-Tax Character of Distributions on the Funds webpage available at eatonvance.com. In recent years, a significant portion of the Funds distributions has
been characterized as a return of capital. The Funds distributions are determined by the investment adviser based on its current assessment of the Funds long-term return potential. Fund distributions may be affected by numerous factors
including changes in Fund performance, the cost of financing for leverage, portfolio holdings, realized and projected returns, and other factors. As portfolio and market conditions change, the rate of distributions paid by the Fund could change.
|
5 |
Depictions do not reflect the Funds option positions. Excludes cash and cash equivalents. |
6 |
The information contained herein is provided for informational purposes only and does not constitute a solicitation of an
offer to buy or sell Fund shares. Common shares of the Fund are available for purchase and sale only at current market prices in secondary market trading. |
Fund profile subject to change due to active management
Additional Information
S&P 500® Index is an unmanaged index of large-cap stocks commonly used as a measure of U.S.
stock market performance. Dow Jones Industrial Average® is a price-weighted average of 30 blue-chip stocks that are generally the leaders in their industry. S&P Dow Jones Indices are a
product of S&P Dow Jones Indices LLC (S&P DJI) and have been licensed for use. S&P® and S&P 500® are
registered trademarks of S&P DJI; Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); S&P DJI, Dow Jones and their respective affiliates
do not sponsor, endorse, sell or promote the Fund, will not have any liability with respect thereto and do not have any liability for any errors, omissions, or interruptions of the S&P Dow Jones Indices. Nasdaq Composite Index is a market
capitalization-weighted index of all domestic and international securities listed on Nasdaq. Source: Nasdaq, Inc. The information is provided by Nasdaq (with its affiliates, are referred to as the Corporations) and Nasdaqs third
party licensors on an as is basis and the Corporations make no guarantees and bear no liability of any kind with respect to the information or the Fund. Russell 1000® Index is an
unmanaged index of 1,000 U.S. large-cap stocks. Russell 2000® Index is an unmanaged index of 2,000 U.S. small-cap stocks.
Important Notice to Shareholders
Lewis R. Piantedosi will retire from the Eaton Vance organization effective June 30, 2022.
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Portfolio of Investments
|
|
|
|
|
|
|
|
|
Common Stocks 100.2%(1) |
|
Security |
|
Shares |
|
|
Value |
|
|
Aerospace & Defense 1.1% |
|
|
|
|
Hexcel Corp.(2) |
|
|
147,137 |
|
|
$ |
7,621,697 |
|
|
|
|
Raytheon Technologies Corp. |
|
|
66,119 |
|
|
|
5,690,201 |
|
|
|
|
|
|
|
|
|
|
$ |
13,311,898 |
|
|
Auto Components 1.3% |
|
|
|
|
Aptiv
PLC(2) |
|
|
93,535 |
|
|
$ |
15,428,598 |
|
|
|
|
|
|
|
|
|
|
$ |
15,428,598 |
|
|
Banks 0.8% |
|
|
|
|
JPMorgan Chase & Co. |
|
|
60,877 |
|
|
$ |
9,639,873 |
|
|
|
|
|
|
|
|
|
|
$ |
9,639,873 |
|
|
Beverages 1.9% |
|
|
|
|
Coca-Cola Co. (The) |
|
|
318,591 |
|
|
$ |
18,863,773 |
|
|
|
|
Constellation Brands, Inc., Class A |
|
|
16,284 |
|
|
|
4,086,796 |
|
|
|
|
|
|
|
|
|
|
$ |
22,950,569 |
|
|
Biotechnology 2.8% |
|
|
|
|
AbbVie, Inc. |
|
|
191,373 |
|
|
$ |
25,911,904 |
|
|
|
|
Argenx SE
ADR(2) |
|
|
23,328 |
|
|
|
8,169,233 |
|
|
|
|
|
|
|
|
|
|
$ |
34,081,137 |
|
|
Building Products 0.9% |
|
|
|
|
Trane Technologies PLC |
|
|
56,633 |
|
|
$ |
11,441,565 |
|
|
|
|
|
|
|
|
|
|
$ |
11,441,565 |
|
|
Capital Markets 3.4% |
|
|
|
|
Charles Schwab Corp. (The) |
|
|
243,056 |
|
|
$ |
20,441,010 |
|
|
|
|
Goldman Sachs Group, Inc. (The) |
|
|
52,988 |
|
|
|
20,270,559 |
|
|
|
|
|
|
|
|
|
|
$ |
40,711,569 |
|
|
Chemicals 0.2% |
|
|
|
|
Ecolab, Inc. |
|
|
9,744 |
|
|
$ |
2,285,845 |
|
|
|
|
|
|
|
|
|
|
$ |
2,285,845 |
|
|
Commercial Services & Supplies 0.7% |
|
|
|
|
Waste Connections, Inc. |
|
|
59,343 |
|
|
$ |
8,086,671 |
|
|
|
|
|
|
|
|
|
|
$ |
8,086,671 |
|
|
Electrical Equipment 1.2% |
|
|
|
|
AMETEK, Inc. |
|
|
100,757 |
|
|
$ |
14,815,309 |
|
|
|
|
|
|
|
|
|
|
$ |
14,815,309 |
|
|
|
|
|
|
|
|
|
|
Security |
|
Shares |
|
|
Value |
|
|
Electronic Equipment, Instruments & Components 1.8% |
|
|
|
|
Zebra Technologies Corp., Class A(2) |
|
|
36,989 |
|
|
$ |
22,015,853 |
|
|
|
|
|
|
|
|
|
|
$ |
22,015,853 |
|
|
Entertainment 2.3% |
|
|
|
|
Netflix, Inc.(2) |
|
|
30,833 |
|
|
$ |
18,575,032 |
|
|
|
|
Walt Disney Co.
(The)(2) |
|
|
63,847 |
|
|
|
9,889,262 |
|
|
|
|
|
|
|
|
|
|
$ |
28,464,294 |
|
|
Food & Staples Retailing 1.0% |
|
|
|
|
Sysco Corp. |
|
|
150,615 |
|
|
$ |
11,830,808 |
|
|
|
|
|
|
|
|
|
|
$ |
11,830,808 |
|
|
Food Products 0.8% |
|
|
|
|
Mondelez International, Inc., Class A |
|
|
153,625 |
|
|
$ |
10,186,874 |
|
|
|
|
|
|
|
|
|
|
$ |
10,186,874 |
|
|
Health Care Equipment & Supplies 4.2% |
|
|
|
|
Abbott Laboratories |
|
|
102,141 |
|
|
$ |
14,375,324 |
|
|
|
|
Inari Medical, Inc.(2) |
|
|
76,620 |
|
|
|
6,993,108 |
|
|
|
|
Intuitive Surgical, Inc.(2) |
|
|
58,020 |
|
|
|
20,846,586 |
|
|
|
|
Tandem Diabetes Care, Inc.(2) |
|
|
53,892 |
|
|
|
8,111,824 |
|
|
|
|
|
|
|
|
|
|
$ |
50,326,842 |
|
|
Health Care Providers & Services 1.9% |
|
|
|
|
UnitedHealth Group, Inc. |
|
|
46,952 |
|
|
$ |
23,576,477 |
|
|
|
|
|
|
|
|
|
|
$ |
23,576,477 |
|
|
Health Care Technology 0.5% |
|
|
|
|
Veeva Systems, Inc., Class A(2) |
|
|
22,801 |
|
|
$ |
5,825,200 |
|
|
|
|
|
|
|
|
|
|
$ |
5,825,200 |
|
|
Hotels, Restaurants & Leisure 1.3% |
|
|
|
|
Starbucks Corp. |
|
|
132,809 |
|
|
$ |
15,534,669 |
|
|
|
|
|
|
|
|
|
|
$ |
15,534,669 |
|
|
Household Products 0.3% |
|
|
|
|
Church & Dwight Co., Inc. |
|
|
39,028 |
|
|
$ |
4,000,370 |
|
|
|
|
|
|
|
|
|
|
$ |
4,000,370 |
|
|
Interactive Media & Services 11.6% |
|
|
|
|
Alphabet, Inc., Class C(2) |
|
|
32,153 |
|
|
$ |
93,037,599 |
|
|
|
|
Meta Platforms, Inc., Class A(2) |
|
|
117,108 |
|
|
|
39,389,276 |
|
|
|
|
|
|
|
|
10 |
|
See Notes to Financial Statements. |
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Portfolio of Investments continued
|
|
|
|
|
|
|
|
|
Security |
|
Shares |
|
|
Value |
|
|
Interactive Media & Services (continued) |
|
|
|
|
Snap, Inc., Class A(2) |
|
|
103,032 |
|
|
$
|
4,845,595 |
|
|
|
|
Twitter,
Inc.(2) |
|
|
75,248 |
|
|
|
3,252,219 |
|
|
|
|
|
|
|
|
|
|
$ |
140,524,689 |
|
|
Internet & Direct Marketing Retail 8.2% |
|
|
|
|
Amazon.com,
Inc.(2) |
|
|
29,704 |
|
|
$ |
99,043,235 |
|
|
|
|
|
|
|
|
|
|
$ |
99,043,235 |
|
|
IT Services 7.0% |
|
|
|
|
PayPal Holdings, Inc.(2) |
|
|
173,979 |
|
|
$ |
32,808,960 |
|
|
|
|
Visa, Inc., Class A |
|
|
238,921 |
|
|
|
51,776,570 |
|
|
|
|
|
|
|
|
|
|
$ |
84,585,530 |
|
|
Life Sciences Tools & Services 2.1% |
|
|
|
|
10X Genomics, Inc., Class A(2) |
|
|
60,825 |
|
|
$ |
9,060,492 |
|
|
|
|
Illumina, Inc.(2) |
|
|
16,561 |
|
|
|
6,300,467 |
|
|
|
|
Thermo Fisher Scientific, Inc. |
|
|
15,588 |
|
|
|
10,400,937 |
|
|
|
|
|
|
|
|
|
|
$ |
25,761,896 |
|
|
Oil, Gas & Consumable Fuels 0.5% |
|
|
|
|
EOG Resources, Inc. |
|
|
71,787 |
|
|
$ |
6,376,839 |
|
|
|
|
|
|
|
|
|
|
$ |
6,376,839 |
|
|
Pharmaceuticals 1.0% |
|
|
|
|
Eli Lilly & Co. |
|
|
43,106 |
|
|
$ |
11,906,739 |
|
|
|
|
|
|
|
|
|
|
$ |
11,906,739 |
|
|
Road & Rail 1.6% |
|
|
|
|
CSX Corp. |
|
|
313,764 |
|
|
$ |
11,797,526 |
|
|
|
|
Uber Technologies, Inc.(2) |
|
|
176,578 |
|
|
|
7,403,916 |
|
|
|
|
|
|
|
|
|
|
$ |
19,201,442 |
|
|
Semiconductors & Semiconductor Equipment 8.6% |
|
|
|
|
Ambarella, Inc.(2) |
|
|
40,965 |
|
|
$ |
8,311,389 |
|
|
|
|
Intel Corp. |
|
|
247,469 |
|
|
|
12,744,653 |
|
|
|
|
Micron Technology, Inc. |
|
|
293,859 |
|
|
|
27,372,966 |
|
|
|
|
QUALCOMM, Inc. |
|
|
188,600 |
|
|
|
34,489,282 |
|
|
|
|
Texas Instruments, Inc. |
|
|
115,404 |
|
|
|
21,750,192 |
|
|
|
|
|
|
|
|
|
|
$ |
104,668,482 |
|
|
Software 19.2% |
|
|
|
|
Adobe, Inc.(2) |
|
|
80,327 |
|
|
$ |
45,550,229 |
|
|
|
|
Altair Engineering, Inc., Class A(2) |
|
|
80,916 |
|
|
|
6,256,425 |
|
|
|
|
|
|
|
|
|
|
Security |
|
Shares |
|
|
Value |
|
|
Software (continued) |
|
|
|
|
Intuit, Inc. |
|
|
56,776 |
|
|
$
|
36,519,459 |
|
|
|
|
Microsoft Corp. |
|
|
280,404 |
|
|
|
94,305,473 |
|
|
|
|
Palantir Technologies, Inc., Class A(2) |
|
|
619,954 |
|
|
|
11,289,362 |
|
|
|
|
Paycom Software, Inc.(2) |
|
|
14,009 |
|
|
|
5,816,397 |
|
|
|
|
salesforce.com, inc.(2) |
|
|
70,758 |
|
|
|
17,981,730 |
|
|
|
|
Zscaler,
Inc.(2) |
|
|
47,927 |
|
|
|
15,400,383 |
|
|
|
|
|
|
|
|
|
|
$ |
233,119,458 |
|
|
Specialty Retail 3.7% |
|
|
|
|
Home Depot, Inc. (The) |
|
|
46,129 |
|
|
$ |
19,143,996 |
|
|
|
|
TJX Cos., Inc. (The) |
|
|
343,289 |
|
|
|
26,062,501 |
|
|
|
|
|
|
|
|
|
|
$ |
45,206,497 |
|
|
Technology Hardware, Storage & Peripherals 6.7% |
|
|
|
|
Apple, Inc. |
|
|
398,426 |
|
|
$ |
70,748,505 |
|
|
|
|
Logitech International S.A. |
|
|
123,818 |
|
|
|
10,212,508 |
|
|
|
|
|
|
|
|
|
|
$ |
80,961,013 |
|
|
Textiles, Apparel & Luxury Goods 1.6% |
|
|
|
|
NIKE, Inc., Class B |
|
|
114,972 |
|
|
$ |
19,162,383 |
|
|
|
|
|
|
|
|
|
|
$ |
19,162,383 |
|
|
|
Total Common
Stocks (identified cost $488,229,026) |
|
|
$ |
1,215,032,624 |
|
|
Short-Term Investments 0.3% |
|
Description |
|
Units |
|
|
Value |
|
|
|
|
Eaton Vance Cash Reserves Fund, LLC, 0.08%(3) |
|
|
3,051,128 |
|
|
$ |
3,050,823 |
|
|
|
Total Short-Term
Investments (identified cost $3,050,823) |
|
|
$ |
3,050,823 |
|
|
|
Total Investments
100.5% (identified cost $491,279,849) |
|
|
$ |
1,218,083,447 |
|
|
|
Total Written Covered Call
Options (0.5)% (premiums received $8,649,699) |
|
|
$ |
(5,943,143 |
) |
|
|
Other Assets, Less Liabilities
(0.0)%(4) |
|
|
$ |
(115,944 |
) |
|
|
Net Assets
100.0% |
|
|
$ |
1,212,024,360 |
|
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
|
|
|
|
|
|
|
11 |
|
See Notes to Financial Statements. |
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Portfolio of Investments continued
(1) |
All or a portion of each applicable common stock for which a written call option is outstanding at December 31,
2021 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 December 31, 2021. |
(4) |
Amount is less than (0.05%).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Written Covered Call Options (0.5)% |
|
|
Exchange-Traded Options (0.5)% |
|
|
|
|
|
|
|
Description |
|
Number of Contracts |
|
|
Notional Amount |
|
Exercise Price |
|
|
Expiration Date |
|
Value |
|
|
|
|
|
|
|
10X Genomics, Inc., Class A |
|
|
300 |
|
|
$ 4,468,800 |
|
$ |
155 |
|
|
1/21/22 |
|
$ |
(180,000 |
) |
|
|
|
|
|
|
Abbott Laboratories |
|
|
510 |
|
|
7,177,740 |
|
|
145 |
|
|
1/28/22 |
|
|
(84,150 |
) |
|
|
|
|
|
|
AbbVie, Inc. |
|
|
955 |
|
|
12,930,700 |
|
|
139 |
|
|
1/28/22 |
|
|
(131,790 |
) |
|
|
|
|
|
|
Adobe, Inc. |
|
|
400 |
|
|
22,682,400 |
|
|
590 |
|
|
1/21/22 |
|
|
(230,000 |
) |
|
|
|
|
|
|
Alphabet, Inc., Class C |
|
|
160 |
|
|
46,297,440 |
|
|
3,050 |
|
|
1/28/22 |
|
|
(228,000 |
) |
|
|
|
|
|
|
Amazon.com, Inc. |
|
|
145 |
|
|
48,347,930 |
|
|
3,550 |
|
|
1/14/22 |
|
|
(123,250 |
) |
|
|
|
|
|
|
Ambarella, Inc. |
|
|
200 |
|
|
4,057,800 |
|
|
225 |
|
|
2/4/22 |
|
|
(115,000 |
) |
|
|
|
|
|
|
AMETEK, Inc. |
|
|
500 |
|
|
7,352,000 |
|
|
150 |
|
|
1/21/22 |
|
|
(70,000 |
) |
|
|
|
|
|
|
Apple, Inc. |
|
|
1,990 |
|
|
35,336,430 |
|
|
185 |
|
|
1/14/22 |
|
|
(209,945 |
) |
|
|
|
|
|
|
Aptiv PLC |
|
|
465 |
|
|
7,670,175 |
|
|
170 |
|
|
1/21/22 |
|
|
(101,138 |
) |
|
|
|
|
|
|
Charles Schwab Corp. (The) |
|
|
1,215 |
|
|
10,218,150 |
|
|
84 |
|
|
1/14/22 |
|
|
(212,018 |
) |
|
|
|
|
|
|
Church & Dwight Co., Inc. |
|
|
195 |
|
|
1,998,750 |
|
|
100 |
|
|
1/21/22 |
|
|
(69,225 |
) |
|
|
|
|
|
|
Coca-Cola Co. (The) |
|
|
1,590 |
|
|
9,414,390 |
|
|
59 |
|
|
1/14/22 |
|
|
(115,275 |
) |
|
|
|
|
|
|
Constellation Brands, Inc., Class A |
|
|
80 |
|
|
2,007,760 |
|
|
250 |
|
|
1/21/22 |
|
|
(52,400 |
) |
|
|
|
|
|
|
CSX Corp. |
|
|
1,565 |
|
|
5,884,400 |
|
|
38 |
|
|
1/7/22 |
|
|
(39,125 |
) |
|
|
|
|
|
|
Ecolab, Inc. |
|
|
45 |
|
|
1,055,655 |
|
|
240 |
|
|
1/21/22 |
|
|
(4,725 |
) |
|
|
|
|
|
|
EOG Resources, Inc. |
|
|
355 |
|
|
3,153,465 |
|
|
93 |
|
|
1/28/22 |
|
|
(61,770 |
) |
|
|
|
|
|
|
Goldman Sachs Group, Inc. (The) |
|
|
260 |
|
|
9,946,300 |
|
|
400 |
|
|
1/21/22 |
|
|
(79,950 |
) |
|
|
|
|
|
|
Hexcel Corp. |
|
|
735 |
|
|
3,807,300 |
|
|
55 |
|
|
1/21/22 |
|
|
(181,913 |
) |
|
|
|
|
|
|
Home Depot, Inc. (The) |
|
|
230 |
|
|
9,545,230 |
|
|
430 |
|
|
1/14/22 |
|
|
(30,935 |
) |
|
|
|
|
|
|
Illumina, Inc. |
|
|
80 |
|
|
3,043,520 |
|
|
415 |
|
|
2/4/22 |
|
|
(51,848 |
) |
|
|
|
|
|
|
Inari Medical, Inc. |
|
|
380 |
|
|
3,468,260 |
|
|
90 |
|
|
1/21/22 |
|
|
(209,000 |
) |
|
|
|
|
|
|
Intel Corp. |
|
|
1,235 |
|
|
6,360,250 |
|
|
55 |
|
|
2/4/22 |
|
|
(95,095 |
) |
|
|
|
|
|
|
Intuit, Inc. |
|
|
280 |
|
|
18,010,160 |
|
|
660 |
|
|
1/21/22 |
|
|
(239,400 |
) |
|
|
|
|
|
|
Intuitive Surgical, Inc. |
|
|
290 |
|
|
10,419,700 |
|
|
390 |
|
|
1/28/22 |
|
|
(152,975 |
) |
|
|
|
|
|
|
JPMorgan Chase & Co. |
|
|
300 |
|
|
4,750,500 |
|
|
165 |
|
|
1/28/22 |
|
|
(33,000 |
) |
|
|
|
|
|
|
Logitech International S.A. |
|
|
615 |
|
|
5,072,520 |
|
|
90 |
|
|
1/21/22 |
|
|
(35,362 |
) |
|
|
|
|
|
|
Meta Platforms, Inc., Class A |
|
|
585 |
|
|
19,676,475 |
|
|
350 |
|
|
1/14/22 |
|
|
(150,053 |
) |
|
|
|
|
|
|
Micron Technology, Inc. |
|
|
1,465 |
|
|
13,646,475 |
|
|
100 |
|
|
1/28/22 |
|
|
(202,170 |
) |
|
|
|
|
|
|
Microsoft Corp. |
|
|
1,400 |
|
|
47,084,800 |
|
|
340 |
|
|
1/14/22 |
|
|
(504,000 |
) |
|
|
|
|
|
|
Mondelez International, Inc., Class A |
|
|
765 |
|
|
5,072,715 |
|
|
68 |
|
|
1/21/22 |
|
|
(26,775 |
) |
|
|
|
|
|
|
Netflix, Inc. |
|
|
150 |
|
|
9,036,600 |
|
|
650 |
|
|
1/7/22 |
|
|
(7,500 |
) |
|
|
|
|
|
|
NIKE, Inc., Class B |
|
|
570 |
|
|
9,500,190 |
|
|
175 |
|
|
1/28/22 |
|
|
(59,565 |
) |
|
|
|
|
|
|
Palantir Technologies, Inc., Class A |
|
|
3,095 |
|
|
5,635,995 |
|
|
21 |
|
|
1/28/22 |
|
|
(71,185 |
) |
|
|
|
|
|
|
Paycom Software, Inc. |
|
|
70 |
|
|
2,906,330 |
|
|
460 |
|
|
1/21/22 |
|
|
(12,950 |
) |
|
|
|
|
|
|
PayPal Holdings, Inc. |
|
|
865 |
|
|
16,312,170 |
|
|
200 |
|
|
1/28/22 |
|
|
(276,800 |
) |
|
|
|
|
|
|
QUALCOMM, Inc. |
|
|
940 |
|
|
17,189,780 |
|
|
190 |
|
|
1/21/22 |
|
|
(208,210 |
) |
|
|
|
|
|
|
|
12 |
|
See Notes to Financial Statements. |
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Portfolio of Investments continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Written Covered Call Options (0.5)% (continued) |
|
|
Exchange-Traded Options (0.5)% (continued) |
|
|
|
|
|
|
|
Description |
|
Number of Contracts |
|
|
Notional Amount |
|
Exercise Price |
|
|
Expiration Date |
|
Value |
|
|
|
|
|
|
|
Raytheon Technologies Corp. |
|
|
330 |
|
|
$ 2,839,980 |
|
$
|
89 |
|
|
2/4/22 |
|
$
|
(34,980 |
) |
|
|
|
|
|
|
salesforce.com, inc. |
|
|
350 |
|
|
8,894,550 |
|
|
265 |
|
|
1/28/22 |
|
|
(105,700 |
) |
|
|
|
|
|
|
Snap, Inc., Class A |
|
|
515 |
|
|
2,422,045 |
|
|
49 |
|
|
1/21/22 |
|
|
(66,692 |
) |
|
|
|
|
|
|
Starbucks Corp. |
|
|
660 |
|
|
7,720,020 |
|
|
121 |
|
|
1/14/22 |
|
|
(30,360 |
) |
|
|
|
|
|
|
Sysco Corp. |
|
|
750 |
|
|
5,891,250 |
|
|
80 |
|
|
1/28/22 |
|
|
(67,500 |
) |
|
|
|
|
|
|
Tandem Diabetes Care, Inc. |
|
|
265 |
|
|
3,988,780 |
|
|
150 |
|
|
1/7/22 |
|
|
(82,812 |
) |
|
|
|
|
|
|
Texas Instruments, Inc. |
|
|
575 |
|
|
10,837,025 |
|
|
205 |
|
|
1/7/22 |
|
|
(4,025 |
) |
|
|
|
|
|
|
Thermo Fisher Scientific, Inc. |
|
|
75 |
|
|
5,004,300 |
|
|
690 |
|
|
1/21/22 |
|
|
(47,250 |
) |
|
|
|
|
|
|
TJX Cos., Inc. (The) |
|
|
1,715 |
|
|
13,020,280 |
|
|
78 |
|
|
1/7/22 |
|
|
(35,157 |
) |
|
|
|
|
|
|
Trane Technologies PLC |
|
|
280 |
|
|
5,656,840 |
|
|
210 |
|
|
1/21/22 |
|
|
(47,600 |
) |
|
|
|
|
|
|
Twitter, Inc. |
|
|
375 |
|
|
1,620,750 |
|
|
47 |
|
|
1/21/22 |
|
|
(17,250 |
) |
|
|
|
|
|
|
Uber Technologies, Inc. |
|
|
880 |
|
|
3,689,840 |
|
|
47 |
|
|
1/28/22 |
|
|
(50,160 |
) |
|
|
|
|
|
|
UnitedHealth Group, Inc. |
|
|
230 |
|
|
11,549,220 |
|
|
525 |
|
|
2/4/22 |
|
|
(119,025 |
) |
|
|
|
|
|
|
Veeva Systems, Inc., Class A |
|
|
110 |
|
|
2,810,280 |
|
|
280 |
|
|
1/21/22 |
|
|
(14,025 |
) |
|
|
|
|
|
|
Visa, Inc., Class A |
|
|
1,190 |
|
|
25,788,490 |
|
|
220 |
|
|
1/14/22 |
|
|
(251,090 |
) |
|
|
|
|
|
|
Walt Disney Co. (The) |
|
|
315 |
|
|
4,879,035 |
|
|
160 |
|
|
1/7/22 |
|
|
(13,545 |
) |
|
|
|
|
|
|
Waste Connections, Inc. |
|
|
295 |
|
|
4,019,965 |
|
|
135 |
|
|
1/21/22 |
|
|
(91,450 |
) |
|
|
|
|
|
|
Zebra Technologies Corp., Class A |
|
|
180 |
|
|
10,713,600 |
|
|
630 |
|
|
1/21/22 |
|
|
(72,900 |
) |
|
|
|
|
|
|
Zscaler, Inc. |
|
|
235 |
|
|
7,551,255 |
|
|
325 |
|
|
1/7/22 |
|
|
(135,125 |
) |
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(5,943,143 |
) |
Abbreviations:
|
|
|
|
|
|
|
|
ADR |
|
|
|
American Depositary Receipt |
|
|
|
|
|
|
|
13 |
|
See Notes to Financial Statements. |
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Statement of Assets and Liabilities
|
|
|
|
|
Assets |
|
December 31, 2021 |
|
|
|
Unaffiliated investments, at value (identified cost, $488,229,026) |
|
$ |
1,215,032,624 |
|
|
|
Affiliated investment, at value (identified cost, $3,050,823) |
|
|
3,050,823 |
|
|
|
Cash |
|
|
33,413 |
|
|
|
Dividends receivable |
|
|
92,177 |
|
|
|
Dividends receivable from affiliated investment |
|
|
335 |
|
|
|
Receivable for premiums on written options |
|
|
296,229 |
|
|
|
Receivable for Fund shares sold |
|
|
364,243 |
|
|
|
Receivable from the transfer agent |
|
|
341,781 |
|
|
|
Tax reclaims receivable |
|
|
57,263 |
|
|
|
Total assets |
|
$ |
1,219,268,888 |
|
|
Liabilities |
|
|
|
Written options outstanding, at value (premiums received, $8,649,699) |
|
$ |
5,943,143 |
|
|
|
Payable for closed written options |
|
|
14,588 |
|
|
|
Payable to affiliates: |
|
|
|
|
|
|
Investment adviser fee |
|
|
1,018,101 |
|
|
|
Trustees fees |
|
|
13,943 |
|
|
|
Accrued expenses |
|
|
254,753 |
|
|
|
Total liabilities |
|
$ |
7,244,528 |
|
|
|
Net Assets |
|
$ |
1,212,024,360 |
|
|
Sources of Net Assets |
|
|
|
Common shares, $0.01 par value, unlimited number of shares authorized, 51,102,915 shares issued and
outstanding |
|
$ |
511,029 |
|
|
|
Additional paid-in capital |
|
|
482,524,034 |
|
|
|
Distributable earnings |
|
|
728,989,297 |
|
|
|
Net Assets |
|
$ |
1,212,024,360 |
|
|
|
Net Asset Value |
|
|
|
|
|
|
($1,212,024,360 ÷ 51,102,915 common shares issued and
outstanding) |
|
$ |
23.72 |
|
|
|
|
|
|
|
|
14 |
|
See Notes to Financial Statements. |
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Statement of Operations
|
|
|
|
|
Investment Income |
|
Year Ended December 31, 2021 |
|
|
|
Dividends (net of foreign taxes, $25,061) |
|
$ |
8,237,858 |
|
|
|
Dividends from affiliated investment |
|
|
3,173 |
|
|
|
Total investment income |
|
$ |
8,241,031 |
|
|
|
Expenses |
|
|
|
|
|
|
Investment adviser fee |
|
$ |
11,427,327 |
|
|
|
Trustees fees and expenses |
|
|
56,275 |
|
|
|
Custodian fee |
|
|
332,365 |
|
|
|
Transfer and dividend disbursing agent fees |
|
|
18,784 |
|
|
|
Legal and accounting services |
|
|
100,688 |
|
|
|
Printing and postage |
|
|
344,951 |
|
|
|
Miscellaneous |
|
|
79,813 |
|
|
|
Total expenses |
|
$ |
12,360,203 |
|
|
|
Net investment loss |
|
$ |
(4,119,172 |
) |
|
|
Realized and Unrealized Gain (Loss) |
|
|
|
|
|
|
Net realized gain (loss) |
|
|
|
|
|
|
Investment transactions |
|
$ |
80,407,801 |
|
|
|
Investment transactions affiliated investment |
|
|
(62 |
) |
|
|
Written options |
|
|
(10,545,709 |
) |
|
|
Foreign currency transactions |
|
|
(38,652 |
) |
|
|
Net realized gain |
|
$ |
69,823,378 |
|
|
|
Change in unrealized appreciation (depreciation) |
|
|
|
|
|
|
Investments |
|
$ |
127,744,484 |
|
|
|
Written options |
|
|
984,154 |
|
|
|
Net change in unrealized appreciation (depreciation) |
|
$ |
128,728,638 |
|
|
|
Net realized and unrealized gain |
|
$ |
198,552,016 |
|
|
|
Net increase in net assets from operations |
|
$ |
194,432,844 |
|
|
|
|
|
|
|
|
15 |
|
See Notes to Financial Statements. |
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
Increase (Decrease) in Net Assets |
|
2021 |
|
|
2020 |
|
|
|
|
From operations |
|
|
|
|
|
|
|
|
|
|
|
Net investment loss |
|
$ |
(4,119,172 |
) |
|
$ |
(3,117,711 |
) |
|
|
|
Net realized gain (loss) |
|
|
69,823,378 |
|
|
|
(585,044 |
) |
|
|
|
Net change in unrealized appreciation (depreciation) |
|
|
128,728,638 |
|
|
|
240,065,961 |
|
|
|
|
Net increase in net assets from operations |
|
$ |
194,432,844 |
|
|
$ |
236,363,206 |
|
|
|
|
Distributions to shareholders |
|
$ |
(64,519,572 |
) |
|
$ |
(1,811,802 |
) |
|
|
|
Tax return of capital to shareholders |
|
$ |
(4,726,785 |
) |
|
$ |
(52,079,822 |
) |
|
|
|
Capital share transactions |
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shelf offering, net of offering costs (see Note 5) |
|
$ |
28,448,067 |
|
|
$ |
12,051,025 |
|
|
|
|
Reinvestment of distributions |
|
|
2,823,214 |
|
|
|
1,728,984 |
|
|
|
|
Net increase in net assets from capital share
transactions |
|
$ |
31,271,281 |
|
|
$ |
13,780,009 |
|
|
|
|
Net increase in net assets |
|
$ |
156,457,768 |
|
|
$ |
196,251,591 |
|
|
Net Assets |
|
|
|
|
At beginning of year |
|
$ |
1,055,566,592 |
|
|
$ |
859,315,001 |
|
|
|
|
At end of year |
|
$ |
1,212,024,360 |
|
|
$ |
1,055,566,592 |
|
|
|
|
|
|
|
|
16 |
|
See Notes to Financial Statements. |
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
Net asset value Beginning of year |
|
$ |
21.200 |
|
|
$ |
17.530 |
|
|
$ |
14.820 |
|
|
$ |
15.770 |
|
|
$ |
13.660 |
|
|
|
|
|
|
|
Income (Loss) From Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment loss(1) |
|
$ |
(0.082 |
) |
|
$ |
(0.063 |
) |
|
$ |
(0.026 |
) |
|
$ |
(0.027 |
) |
|
$ |
(0.023 |
) |
|
|
|
|
|
|
Net realized and unrealized gain |
|
|
3.971 |
|
|
|
4.819 |
|
|
|
4.015 |
|
|
|
0.127 |
|
|
|
3.183 |
|
|
|
|
|
|
|
Total income from operations |
|
$ |
3.889 |
|
|
$ |
4.756 |
|
|
$ |
3.989 |
|
|
$ |
0.100 |
|
|
$ |
3.160 |
|
|
Less Distributions |
|
|
|
|
|
|
|
From net realized gain |
|
$ |
(1.284 |
) |
|
$ |
(0.037 |
) |
|
$ |
(1.284 |
)(2) |
|
$ |
(1.050 |
) |
|
$ |
(0.423 |
) |
|
|
|
|
|
|
Tax return of capital |
|
|
(0.094 |
) |
|
|
(1.050 |
) |
|
|
|
|
|
|
|
|
|
|
(0.627 |
) |
|
|
|
|
|
|
Total distributions |
|
$ |
(1.378 |
) |
|
$ |
(1.087 |
) |
|
$ |
(1.284 |
) |
|
$ |
(1.050 |
) |
|
$ |
(1.050 |
) |
|
|
|
|
|
|
Premium from common shares sold through shelf offering
(see Note 5)(1) |
|
$ |
0.009 |
|
|
$ |
0.001 |
|
|
$ |
0.005 |
|
|
$ |
|
|
|
$ |
|
|
|
|
|
|
|
|
Net asset value End of year |
|
$ |
23.720 |
|
|
$ |
21.200 |
|
|
$ |
17.530 |
|
|
$ |
14.820 |
|
|
$ |
15.770 |
|
|
|
|
|
|
|
Market value End of year |
|
$ |
24.590 |
|
|
$ |
21.690 |
|
|
$ |
17.830 |
|
|
$ |
14.670 |
|
|
$ |
15.220 |
|
|
|
|
|
|
|
Total Investment Return on Net Asset Value(3) |
|
|
18.82 |
% |
|
|
28.55 |
% |
|
|
27.71 |
% |
|
|
0.21 |
% |
|
|
24.04 |
%(4) |
|
|
|
|
|
|
Total Investment Return on Market Value(3) |
|
|
20.40 |
% |
|
|
29.31 |
% |
|
|
31.22 |
% |
|
|
2.78 |
% |
|
|
27.76 |
% |
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of year (000s omitted) |
|
$ |
1,212,024 |
|
|
$ |
1,055,567 |
|
|
$ |
859,315 |
|
|
$ |
707,577 |
|
|
$ |
751,565 |
|
|
|
|
|
|
|
Ratios (as a percentage of average daily net assets): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
1.08 |
% |
|
|
1.09 |
% |
|
|
1.09 |
% |
|
|
1.10 |
% |
|
|
1.10 |
% |
|
|
|
|
|
|
Net investment loss |
|
|
(0.36 |
)% |
|
|
(0.35 |
)% |
|
|
(0.16 |
)% |
|
|
(0.17 |
)% |
|
|
(0.15 |
)% |
|
|
|
|
|
|
Portfolio Turnover |
|
|
18 |
% |
|
|
38 |
% |
|
|
40 |
% |
|
|
44 |
% |
|
|
48 |
% |
(1) |
Computed using average shares outstanding. |
(2) |
The tax character of a portion of the distribution ($0.069 per share) was based on managements estimate and was
subsequently determined to be $0.063 per share of tax return of capital and $0.006 per share from net realized gain. |
(3) |
Returns are historical and are calculated by determining the percentage change in net asset value or market value with
all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Funds dividend reinvestment plan. |
(4) |
During the year ended December 31, 2017, the Fund received a payment from an affiliate as reimbursement for certain
losses. Excluding this payment, total return at net asset value would have been 23.72%. |
|
|
|
|
|
|
|
17 |
|
See Notes to Financial Statements. |
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Notes to Financial Statements
1 Significant Accounting Policies
Eaton Vance
Enhanced Equity Income Fund II (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 (U.S. GAAP). The Fund is an investment company and follows accounting and reporting guidance in the Financial Accounting
Standards Board (FASB) Accounting Standards Codification Topic 946.
A Investment
Valuation The following methodologies are used to determine the market value or fair value of investments.
Equity Securities. Equity securities 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 ask prices on the exchange where such securities are principally traded. Equity securities listed on the NASDAQ National Market System 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 ask prices.
Derivatives. U.S. exchange-traded options are valued at the mean between the bid and ask prices at valuation time as reported by the Options Price Reporting
Authority. Non-U.S. exchange-traded options and 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.
Foreign Securities and Currencies. 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.
Affiliated Fund. The Fund may invest in Eaton Vance Cash Reserves Fund, LLC (Cash Reserves Fund), an affiliated investment company
managed by Eaton Vance Management (EVM). While Cash Reserves Fund is not a registered money market mutual fund, it conducts all of its investment activities in accordance with the requirements of Rule 2a-7 under the 1940 Act. Investments in Cash
Reserves Fund are valued at the closing net asset value per unit on the valuation day. Cash Reserves Fund generally values its investment securities based on available market quotations provided by a third party pricing service.
Fair Valuation. 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 most fairly reflects the securitys fair value, which is 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 statements, and an
evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
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.
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.
As of December 31, 2021, 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 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
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Notes to Financial Statements continued
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.
F Use of Estimates
The preparation of the financial statements in conformity with U.S. GAAP 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.
G 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, upon request by the shareholder, 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.
H 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 exercise 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 exercise price of the option (in the case of a call) at contract termination. If a put option on a security is exercised, the premium reduces the
cost basis of the securities purchased by the Fund. The Fund, as a writer of an option, may have no control over whether the underlying securities or other assets may be sold (call) or purchased (put) and, as a result, bears the market risk of an
unfavorable change in the price of the securities or other assets underlying the written option. The Fund may also bear the risk of not being able to enter into a closing transaction if a liquid secondary market does not exist.
2 Distributions to Shareholders and Income Tax Information
Subject to its Managed Distribution Plan, the Fund makes 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. Distributions are recorded on
the ex-dividend date. Distributions to shareholders are determined in accordance with income tax regulations, which may differ from U.S. GAAP. As required by U.S. GAAP, only distributions in excess of tax basis earnings and profits are 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.
The tax character of distributions declared for the years
ended December 31, 2021 and December 31, 2020 was as follows:
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
Long-term capital gains |
|
$ |
64,519,572 |
|
|
$ |
1,811,802 |
|
|
|
|
Tax return of capital |
|
$ |
4,726,785 |
|
|
$ |
52,079,822 |
|
During the year ended December 31, 2021, distributable earnings was increased by $4,157,913 and paid-in capital was decreased by
$4,157,913 due to differences between book and tax accounting for net operating losses. These reclassifications had no effect on the net assets or net asset value per share of the Fund.
As of December 31, 2021, the components of distributable earnings (accumulated loss) on a tax basis were as follows:
|
|
|
|
|
|
|
Net unrealized appreciation |
|
$ |
728,989,297 |
|
|
|
Distributable earnings |
|
$ |
728,989,297 |
|
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Notes to Financial Statements continued
The cost and unrealized appreciation (depreciation) of investments, including open derivative contracts, of the Fund at December 31, 2021, as determined on a federal
income tax basis, were as follows:
|
|
|
|
|
|
|
Aggregate cost |
|
$ |
483,151,007 |
|
|
|
Gross unrealized appreciation |
|
$ |
737,010,369 |
|
|
|
Gross unrealized depreciation |
|
|
(8,021,072 |
) |
|
|
Net unrealized appreciation |
|
$ |
728,989,297 |
|
3 Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by EVM as compensation for investment advisory services rendered to the Fund. On March 1, 2021, Morgan Stanley acquired Eaton
Vance Corp. (the Transaction) and EVM became an indirect, wholly-owned subsidiary of Morgan Stanley. In connection with the Transaction, the Fund entered into a new investment advisory agreement (the New Agreement) with EVM,
which took effect on March 1, 2021. Pursuant to the New Agreement (and the Funds investment advisory agreement with EVM in effect prior to March 1, 2021), the fee is computed at an annual rate of 1.00% of the Funds average
daily gross assets, as defined in the New Agreement (and the Funds investment advisory agreement with EVM in effect prior to March 1, 2021), and is payable monthly. For purposes of this calculation, gross assets represent net assets plus
obligations attributable to investment leverage. During the year ended December 31, 2021, the Fund had no obligations attributable to investment leverage. For the year ended December 31, 2021, the investment adviser fee amounted to
$11,427,327. The Fund may invest its cash in Cash Reserves Fund. EVM does not currently receive a fee for advisory services provided to Cash Reserves Fund. EVM also serves as administrator of the Fund, but receives no compensation.
Trustees and officers of the Fund who are members of EVMs organization receive remuneration for their services to the Fund out of the investment adviser fee.
Trustees of the Fund who are not affiliated with EVM may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the year ended December 31, 2021, 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 $205,017,393 and $264,085,026, respectively, for the year ended
December 31, 2021.
5 Common Shares of Beneficial Interest and Shelf Offering
Common shares issued by the Fund pursuant to its dividend reinvestment plan for the years ended December 31, 2021 and December 31, 2020 were 122,942 and 93,428,
respectively.
In August 2012, the Board of Trustees initially approved a share repurchase program for the Fund. Pursuant to the reauthorization of the share
repurchase program by the Board of Trustees in March 2019, the Fund is authorized to repurchase up to 10% of its common shares outstanding as of the last day of the prior calendar year at market prices when shares are trading at a discount to net
asset value. The share repurchase program does not obligate the Fund to purchase a specific amount of shares. There were no repurchases of common shares by the Fund for the years ended December 31, 2021 and December 31, 2020.
Pursuant to a registration statement filed with and declared effective on April 11, 2019 by the SEC, the Fund is authorized to issue up to an additional 3,584,261
common shares through an equity shelf offering program (the shelf offering). Under the shelf offering, the Fund, subject to market conditions, may raise additional capital from time to time and in varying amounts and offering methods at
a net price at or above the Funds net asset value per common share.
During the years ended December 31, 2021 and December 31, 2020, the Fund sold
1,194,582 and 668,511 common shares, respectively, and received proceeds (net of offering costs) of $28,448,067 and $12,051,025, respectively, through its shelf offering. The net proceeds in excess of the net asset value of the shares sold were
$472,542 and $35,802 for the years ended December 31, 2021 and December 31, 2020, respectively. Offering costs (other than the applicable sales commissions) incurred in connection with the shelf offering were borne directly by EVM. Eaton
Vance Distributors, Inc. (EVD), an affiliate of EVM, is the distributor of the Funds shares and is entitled to receive a sales commission from the Fund of 1.00% of the gross sales price per share, a portion of which is re-allowed to sales
agents. The Fund was informed that the sales commissions retained by EVD during the years ended December 31, 2021 and December 31, 2020 were $57,471 and $24,346, respectively.
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Notes to Financial Statements continued
6 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 obligations under these financial instruments at December 31, 2021 is included in the
Portfolio of Investments. At December 31, 2021, the Fund had sufficient cash and/or securities to cover commitments under these contracts.
The Fund is subject
to equity price risk in the normal course of pursuing its investment objectives. The Fund writes covered call options on individual stocks above the current value of the stock to generate premium income. In writing call options on individual stocks,
the Fund in effect sells potential appreciation in the value of the applicable stock above the exercise price in exchange for the option premium received. The Fund retains the risk of loss, minus the premium received, should the price of the
underlying stock decline.
The 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 December 31, 2021 was as follows:
|
|
|
|
|
|
|
|
|
|
|
Fair Value |
|
Derivative |
|
Asset Derivative |
|
|
Liability Derivative(1) |
|
|
|
|
Written options |
|
$ |
|
|
|
$ |
(5,943,143 |
) |
(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 year ended December 31, 2021 was as follows:
|
|
|
|
|
|
|
|
|
Derivative |
|
Realized Gain (Loss)
on Derivatives Recognized in Income(1) |
|
|
Change in Unrealized
Appreciation (Depreciation) on
Derivatives Recognized in Income(2) |
|
|
|
|
Written options |
|
$ |
(10,545,709 |
) |
|
$ |
984,154 |
|
(1) |
Statement of Operations location: Net realized gain (loss) Written options. |
(2) |
Statement of Operations location: Change in unrealized appreciation (depreciation) Written options.
|
The average number of written options contracts outstanding during the year ended December 31, 2021, which is indicative of the volume of this
derivative type, was 32,779 contracts.
7 Investments in Affiliated Funds
At December 31, 2021, the value of the Funds investment in affiliated funds was $3,050,823, which represents 0.3% of the Funds net assets. Transactions
in affiliated funds by the Fund for the year ended December 31, 2021 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name |
|
Value, beginning of period |
|
|
Purchases |
|
|
Sales proceeds |
|
|
Net realized gain (loss) |
|
|
Change in unrealized appreciation (depreciation) |
|
|
Value, end of period |
|
|
Dividend income |
|
|
Units, end of period |
|
|
Short-Term Investments |
|
|
|
|
|
|
|
|
|
|
Eaton Vance Cash Reserves Fund, LLC |
|
$ |
152,824 |
|
|
$ |
139,866,192 |
|
|
$ |
(136,968,131 |
) |
|
$ |
(62 |
) |
|
$ |
|
|
|
$ |
3,050,823 |
|
|
$ |
3,173 |
|
|
|
3,051,128 |
|
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Notes to Financial Statements continued
8 Fair Value Measurements
Under generally
accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the
three broad levels listed below.
|
|
Level 1 quoted prices in active markets for identical investments |
|
|
Level 2 other significant observable inputs (including quoted prices for similar investments, interest rates,
prepayment speeds, credit risk, etc.) |
|
|
Level 3 significant unobservable inputs (including a funds own assumptions in determining the fair value of
investments) |
In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is
determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those
securities.
At December 31, 2021, 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 |
|
$ |
1,215,032,624 |
* |
|
$ |
|
|
|
$ |
|
|
|
$ |
1,215,032,624 |
|
|
|
|
|
|
Short-Term Investments |
|
|
|
|
|
|
3,050,823 |
|
|
|
|
|
|
|
3,050,823 |
|
|
|
|
|
|
Total Investments |
|
$ |
1,215,032,624 |
|
|
$ |
3,050,823 |
|
|
$ |
|
|
|
$ |
1,218,083,447 |
|
|
|
|
|
|
Liability Description |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Written Covered Call Options |
|
$ |
(5,943,143 |
) |
|
$ |
|
|
|
$ |
|
|
|
$ |
(5,943,143 |
) |
|
|
|
|
|
Total |
|
$ |
(5,943,143 |
) |
|
$ |
|
|
|
$ |
|
|
|
$ |
(5,943,143 |
) |
* |
The level classification by major category of investments is the same as the category presentation in the Portfolio of
Investments. |
9 Risks and Uncertainties
Pandemic Risk
An outbreak of respiratory disease caused by a novel coronavirus
was first detected in China in late 2019 and subsequently spread internationally. This coronavirus has resulted in closing borders, enhanced health screenings, changes to healthcare service preparation and delivery, quarantines, cancellations,
disruptions to supply chains and customer activity, as well as general concern and uncertainty. Health crises caused by outbreaks, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and economic risks and disrupt
normal market conditions and operations. The impact of this outbreak has negatively affected the worldwide economy, the economies of individual countries, individual companies, and the market in general, and may continue to do so in significant and
unforeseen ways, as may other epidemics and pandemics that may arise in the future. Any such impact could adversely affect the Funds performance, or the performance of the securities in which the Fund invests.
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Report of Independent Registered Public Accounting Firm
To the Trustees and Shareholders of Eaton Vance Enhanced Equity Income Fund II:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Eaton
Vance Enhanced Equity Income Fund II (the Fund), including the portfolio of investments, as of December 31, 2021, the related statement of operations for the year then ended, the statements of changes in net assets for each of the
two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the
financial position of the Fund as of December 31, 2021, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the
five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for
Opinion
These financial statements and financial highlights are the responsibility of the Funds management. Our responsibility is to express an opinion
on the Funds financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with
respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.
As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds internal control over financial reporting.
Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and
financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial
highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of December 31, 2021, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable
basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
February 17, 2022
We have served as the auditor of one or more Eaton Vance
investment companies since 1959.
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Federal Tax Information (Unaudited)
The Form 1099-DIV you received in February 2022 showed the tax status of all distributions paid to your account in calendar year 2021. Shareholders are advised to consult
their own tax adviser with respect to the tax consequences of their investment in the Fund. As required by the Internal Revenue Code and/or regulations, shareholders must be notified regarding the status of capital gains dividends.
Capital Gains Dividends. The Fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2021,
$64,519,572 or, if subsequently determined to be different, the net capital gain of such year.
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Dividend Reinvestment Plan
The Fund offers a dividend reinvestment plan (Plan) pursuant to which shareholders may elect to have distributions automatically reinvested in common shares (Shares) of
the Fund. You may elect to participate in the Plan by completing the Dividend Reinvestment Plan Application Form. If you do not participate, you will receive all distributions in cash paid by check mailed directly to you by American Stock
Transfer & Trust Company, LLC (AST) as dividend paying agent. On the distribution payment date, if the NAV per Share is equal to or less than the market price per Share plus estimated brokerage commissions, then new Shares will be issued.
The number of Shares shall be determined by the greater of the NAV per Share or 95% of the market price. Otherwise, Shares generally will be purchased on the open market by AST, the Plan agent (Agent). Distributions subject to income tax (if any)
are taxable whether or not Shares are reinvested.
If your Shares are in the name of a brokerage firm, bank, or other nominee, you can ask the firm or nominee to
participate in the Plan on your behalf. If the nominee does not offer the Plan, you will need to request that the Funds transfer agent re-register your Shares in your name or you will not be able to participate.
The Agents service fee for handling distributions will be paid by the Fund. Plan participants will be charged their pro rata share of brokerage commissions on all
open-market purchases.
Plan participants may withdraw from the Plan at any time by writing to the Agent at the address noted on the following page. If you withdraw,
you will receive Shares in your name for all Shares credited to your account under the Plan. If a participant elects by written notice to the Agent to sell part or all of his or her Shares and remit the proceeds, the Agent is authorized to deduct a
$5.00 fee plus brokerage commissions from the proceeds.
If you wish to participate in the Plan and your Shares are held in your own name, you may complete the form
on the following page and deliver it to the Agent. Any inquiries regarding the Plan can be directed to the Agent at 1-866-439-6787.
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Application for Participation in Dividend Reinvestment Plan
This form is for shareholders who hold their common shares in their own names. If your common shares are held in the
name of a brokerage firm, bank, or other nominee, you should contact your nominee to see if it will participate in the Plan on your behalf. If you wish to participate in the Plan, but your brokerage firm, bank, or nominee is unable to participate on
your behalf, you should request that your common shares be re-registered in your own name which will enable your participation in the Plan.
The following authorization and appointment is given with the understanding that I may terminate it at any time by terminating my
participation in the Plan as provided in the terms and conditions of the Plan.
Please print exact name on
account
Shareholder
signature
Date
Shareholder signature
Date
Please sign exactly as your common shares are
registered. All persons whose names appear on the share certificate must sign.
YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO
RECEIVE YOUR DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.
This authorization form, when signed, should be mailed to the
following address:
Eaton Vance Enhanced Equity Income Fund II
c/o American Stock Transfer & Trust Company, LLC
P.O. Box 922
Wall Street Station
New York, NY 10269-0560
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Management and Organization
Fund Management. The Board of Trustees of the Fund (the Board) is responsible for the overall management and supervision of the affairs of
the Fund. The Board members and officers of the Fund are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. Each Trustee holds office until the annual meeting
for the year in which his or her term expires and until his or her successor is elected and qualified, subject to a prior death, resignation, retirement, disqualification or removal. Under the terms of the Funds current Trustee retirement
policy, an Independent Trustee must retire and resign as a Trustee on the earlier of: (i) the first day of July following his or her 74th birthday; or (ii), with limited exception, December 31st of the 20th year in which he or she has
served as a Trustee. However, if such retirement and resignation would cause the Fund to be out of compliance with Section 16 of the 1940 Act or any other regulations or guidance of the Securities and Exchange Commission, then such retirement
and resignation will not become effective until such time as action has been taken for the Fund to be in compliance therewith. The noninterested Trustees consist of those Trustees who are not interested persons of the
Fund, as that term is defined under the 1940 Act. The business address of each Board member and officer is Two International Place, Boston, Massachusetts 02110. As used below, BMR refers to Boston Management and Research, EVC
refers to Eaton Vance Corp., EV refers to EV LLC, EVM refers to Eaton Vance Management and EVD refers to Eaton Vance Distributors, Inc. EV is the trustee of each of EVM and BMR. Effective March 1, 2021, each
of EVM, BMR, EVD and EV are indirect, wholly owned subsidiaries of Morgan Stanley. Each officer affiliated with EVM may hold a position with other EVM affiliates that is comparable to his or her position with EVM listed below. Each Trustee oversees
138 funds (with the exception of Messrs. Faust and Wennerholm and Ms. Frost who oversee 137 funds) in the Eaton Vance fund complex (including both funds and portfolios in a hub and spoke structure).
|
|
|
|
|
|
|
Name and Year of Birth |
|
Fund Position(s) |
|
Length of Service |
|
Principal Occupation(s) and Other Directorships
During Past Five Years and Other Relevant Experience |
|
Interested Trustee |
|
|
|
|
Thomas E. Faust Jr. 1958 |
|
Class I
Trustee |
|
Until 2023. 3
years. Since 2007. |
|
Chairman of Morgan Stanley Investment Management, Inc. (MSIM), member of the Board of Managers and President of EV, Chief Executive Officer of EVM and
BMR, and Director of EVD. Formerly, Chairman, Chief Executive Officer and President of EVC. Mr. Faust is an interested person because of his positions with MSIM, BMR, EVM, EVD, and EV, which are affiliates of the Fund, and his former position with
EVC, which was an affiliate of the Fund prior to March 1, 2021. Other Directorships. Formerly, Director of EVC (2007-2021) and Hexavest Inc. (investment
management firm) (2012-2021). |
|
Noninterested Trustees |
|
|
|
|
Mark R. Fetting 1954 |
|
Class III
Trustee |
|
Until 2022. 3
years. Since 2016. |
|
Private investor. Formerly held various positions at Legg Mason, Inc. (investment management firm) (2000-2012), including President, Chief Executive
Officer, Director and Chairman (2008-2012), Senior Executive Vice President (2004-2008) and Executive Vice President (2001-2004). Formerly, President of Legg Mason family of funds (2001-2008). Formerly, Division President and Senior Officer of
Prudential Financial Group, Inc. and related companies (investment management firm) (1991-2000). Other Directorships. None. |
|
|
|
|
Cynthia E. Frost 1961 |
|
Class I
Trustee |
|
Until 2023. 3
years. Since 2014. |
|
Private investor. Formerly, Chief Investment Officer of Brown University (university endowment) (2000-2012). Formerly, Portfolio Strategist for Duke
Management Company (university endowment manager) (1995-2000). Formerly, Managing Director, Cambridge Associates (investment consulting company) (1989-1995). Formerly, Consultant, Bain and Company (management consulting firm) (1987-1989). Formerly,
Senior Equity Analyst, BA Investment Management Company (1983-1985). Other Directorships. None. |
|
|
|
|
George J. Gorman 1952 |
|
Chairperson of the Board and Class II
Trustee |
|
Until 2024. 3
years. Chairperson of the Board since 2021 and Trustee since 2014. |
|
Principal at George J. Gorman LLC (consulting firm). Formerly, Senior Partner at Ernst & Young LLP (a registered public accounting firm)
(1974-2009). Other Directorships. None. |
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Management and Organization continued
|
|
|
|
|
|
|
Name and Year of Birth |
|
Fund Position(s) |
|
Length of Service |
|
Principal Occupation(s) and Other Directorships
During Past Five Years and Other Relevant Experience |
|
Noninterested Trustees (continued) |
|
|
|
|
Valerie A. Mosley 1960 |
|
Class III
Trustee |
|
Until 2022. 3
years. Since 2014. |
|
Chairwoman and Chief Executive Officer of Valmo Ventures (a consulting and investment firm). Founder of Upward Wealth, Inc., dba BrightUP, a fintech
platform. Formerly, Partner and Senior Vice President, Portfolio Manager and Investment Strategist at Wellington Management Company, LLP (investment management firm) (1992-2012). Formerly, Chief Investment Officer, PG Corbin Asset Management
(1990-1992). Formerly worked in institutional corporate bond sales at Kidder Peabody (1986-1990). Other Directorships. Director of DraftKings, Inc. (digital
sports entertainment and gaming company) (since September 2020). Director of Groupon, Inc. (e-commerce provider) (since April 2020). Director of Envestnet, Inc. (provider of intelligent systems for wealth management and financial wellness) (since
2018). Formerly, Director of Dynex Capital, Inc. (mortgage REIT) (2013-2020). |
|
|
|
|
William H. Park 1947 |
|
Class II
Trustee |
|
Until 2024. 3
years. Since 2003. |
|
Private investor. Formerly, Consultant (management and transactional) (2012-2014). Formerly, Chief Financial Officer, Aveon Group L.P. (investment
management firm) (2010-2011). Formerly, Vice Chairman, Commercial Industrial Finance Corp. (specialty finance company) (2006-2010). Formerly, President and Chief Executive Officer, Prizm Capital Management, LLC (investment management firm)
(2002-2005). Formerly, Executive Vice President and Chief Financial Officer, United Asset Management Corporation (investment management firm) (1982-2001). Formerly, Senior Manager, Price Waterhouse (now PricewaterhouseCoopers) (a registered
public accounting firm) (1972-1981). Other Directorships. None. |
|
|
|
|
Helen Frame Peters 1948 |
|
Class II
Trustee |
|
Until 2024. 3
years. Since 2008. |
|
Professor of Finance, Carroll School of Management, Boston College. Formerly, Dean, Carroll School of Management, Boston College (2000-2002).
Formerly, Chief Investment Officer, Fixed Income, Scudder Kemper Investments (investment management firm) (1998-1999). Formerly, Chief Investment Officer, Equity and Fixed Income, Colonial Management Associates (investment management firm)
(1991-1998). Other Directorships. None. |
|
|
|
|
Keith Quinton 1958 |
|
Class I
Trustee |
|
Until 2023. 3
years. Since 2018. |
|
Private investor, researcher and lecturer. Formerly, Independent Investment Committee Member at New Hampshire Retirement System (2017-2021). Formerly,
Portfolio Manager and Senior Quantitative Analyst at Fidelity Investments (investment management firm) (2001-2014). Other Directorships. Formerly, Director
(2016-2021) and Chairman (2019-2021) of New Hampshire Municipal Bond Bank. |
|
|
|
|
Marcus L. Smith 1966 |
|
Class III
Trustee |
|
Until 2022. 3
years. Since 2018. |
|
Private investor. Formerly, Portfolio Manager at MFS Investment Management (investment management firm) (1994-2017).
Other Directorships. Director of First Industrial Realty Trust, Inc. (an
industrial REIT) (since 2021). Director of MSCI Inc. (global provider of investment decision support tools) (since 2017). Formerly, Director of DCT Industrial Trust Inc. (logistics real estate company) (2017-2018). |
|
|
|
|
Susan J. Sutherland 1957 |
|
Class II
Trustee |
|
Until 2024. 3
years. Since 2015. |
|
Private investor. Director of Ascot Group Limited and certain of its subsidiaries (insurance and reinsurance) (since 2017). Formerly, Director of
Hagerty Holding Corp. (insurance) (2015-2018) and Montpelier Re Holdings Ltd. (insurance and reinsurance) (2013-2015). Formerly, Associate, Counsel and Partner at Skadden, Arps, Slate, Meagher & Flom LLP (law firm) (1982-2013).
Other Directorships. Director of Kairos Acquisition Corp. (insurance/InsurTech acquisition company) (since 2021). |
|
|
|
|
Scott E. Wennerholm 1959 |
|
Class I
Trustee |
|
Until 2023. 3
years. Since 2016. |
|
Private investor. Formerly, Trustee at Wheelock College (postsecondary institution) (2012-2018). Formerly, Consultant at GF Parish Group (executive
recruiting firm) (2016-2017). Formerly, Chief Operating Officer and Executive Vice President at BNY Mellon Asset Management (investment management firm) (2005-2011). Formerly, Chief Operating Officer and Chief Financial Officer at Natixis Global
Asset Management (investment management firm) (1997-2004). Formerly, Vice President at Fidelity Investments Institutional Services (investment management firm) (1994-1997).
Other Directorships. None. |
Eaton Vance
Enhanced Equity Income Fund II
December 31, 2021
Management and Organization continued
|
|
|
|
|
|
|
Name and Year of Birth |
|
Fund Position(s) |
|
Length of Service |
|
Principal Occupation(s)
During Past Five Years |
|
Principal Officers who are not Trustees |
|
|
|
|
Edward J. Perkin 1972 |
|
President |
|
Since 2014 |
|
Vice President and Chief Equity Investment Officer of EVM and BMR. Also Vice President of Calvert Research and Management (CRM). |
|
|
|
|
Deidre E. Walsh 1971 |
|
Vice President and Chief Legal Officer |
|
Since 2009 |
|
Vice President of EVM and BMR. Also Vice President of CRM. |
|
|
|
|
James F. Kirchner 1967 |
|
Treasurer |
|
Since 2007 |
|
Vice President of EVM and BMR. Also Vice President of CRM. |
|
|
|
|
Jill R. Damon 1984 |
|
Secretary |
|
Since 2022 |
|
Vice President of EVM and BMR since 2017. Formerly, associate at Dechert LLP (2009-2017). |
|
|
|
|
Richard F. Froio 1968 |
|
Chief Compliance Officer |
|
Since 2017 |
|
Vice President of EVM and BMR since 2017. Formerly, Deputy Chief Compliance Officer (Adviser/Funds) and Chief Compliance Officer (Distribution) at PIMCO (2012-2017) and Managing Director at BlackRock/Barclays Global Investors
(2009-2012). |
Eaton Vance Funds
|
|
|
Privacy Notice |
|
April 2021 |
|
|
|
|
|
FACTS |
|
WHAT DOES EATON VANCE DO WITH YOUR PERSONAL INFORMATION? |
|
|
|
|
|
|
|
|
Why? |
|
Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all
sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
|
|
|
|
|
What? |
|
The types of personal information we collect and
share depend on the product or service you have with us. This information can include:
∎ Social
Security number and income
∎ investment
experience and risk tolerance
∎ checking
account number and wire transfer instructions |
|
|
|
|
|
How? |
|
All financial companies need to share customers personal information to run their everyday business. In the section below, we
list the reasons financial companies can share their customers personal information; the reasons Eaton Vance chooses to share; and whether you can limit this sharing. |
|
|
|
|
|
|
|
|
|
|
Reasons we can share your personal information |
|
Does Eaton Vance share? |
|
Can you limit this
sharing? |
For our everyday business purposes such as to process your transactions, maintain
your account(s), respond to court orders and legal investigations, or report to credit bureaus |
|
Yes |
|
No |
For our marketing purposes to offer our products and services to you |
|
Yes |
|
No |
For joint marketing with other financial companies |
|
No |
|
We dont share |
For our investment management affiliates everyday business purposes information
about your transactions, experiences, and creditworthiness |
|
Yes |
|
Yes |
For our affiliates everyday business purposes information about your
transactions and experiences |
|
Yes |
|
No |
For our affiliates everyday business purposes information about your
creditworthiness |
|
No |
|
We dont share |
For our investment management affiliates to market to you |
|
Yes |
|
Yes |
For our affiliates to market to you |
|
No |
|
We dont share |
For nonaffiliates to market to you |
|
No |
|
We dont share |
|
|
|
To limit our
sharing |
|
Call toll-free 1-800-262-1122 or email: EVPrivacy@eatonvance.com
Please note:
If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we
continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing. |
|
|
|
|
|
|
|
Questions? |
|
Call toll-free 1-800-262-1122 or email:
EVPrivacy@eatonvance.com |
|
|
|
|
|
Eaton Vance Funds
|
|
|
Privacy Notice continued |
|
April 2021 |
|
|
|
Who we are |
Who is providing this notice? |
|
Eaton Vance Management, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management (International) Limited,
Eaton Vance Advisers International Ltd., Eaton Vance Global Advisors Limited, Eaton Vance Managements Real Estate Investment Group, Boston Management and Research, Calvert Research and Management, Eaton Vance and Calvert Fund Families and our
investment advisory affiliates (Eaton Vance) (see Investment Management Affiliates definition below) |
What we do |
How does Eaton Vance protect my personal information? |
|
To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These
measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards
with respect to such information. |
How does Eaton Vance collect my personal information? |
|
We collect your personal information, for example,
when you ∎ open an account or make deposits or withdrawals from your account
∎ buy
securities from us or make a wire transfer ∎ give us your contact information
We also collect your personal information from others, such as credit bureaus, affiliates, or other companies. |
Why cant I limit all sharing? |
|
Federal law gives you the right to limit only
∎ sharing for affiliates everyday business purposes information about your creditworthiness
∎ affiliates
from using your information to market to you ∎ sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |
Definitions |
Investment Management Affiliates |
|
Eaton Vance Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and
unregistered funds. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
Affiliates |
|
Companies related by common ownership or control.
They can be financial and nonfinancial companies.
∎ Our
affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
Nonaffiliates |
|
Companies not related by common ownership or
control. They can be financial and nonfinancial companies.
∎ Eaton
Vance does not share with nonaffiliates so they can market to you. |
Joint marketing |
|
A formal agreement between nonaffiliated financial
companies that together market financial products or services to you.
∎ Eaton
Vance doesnt jointly market. |
Other important information |
Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Nonaffiliates unless you provide us with your
written consent to share such information. California: Except as permitted by law, we
will not share personal information we collect about California residents with Nonaffiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us. |
Eaton Vance Funds
IMPORTANT NOTICES
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. American Stock Transfer & Trust Company, LLC (AST), the closed-end funds transfer agent, or your financial
intermediary, may household the mailing of your documents indefinitely unless you instruct AST, or your financial intermediary, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact AST or your
financial intermediary. Your instructions that householding not apply to delivery of your Eaton Vance documents will typically be effective within 30 days of receipt by AST or your financial intermediary.
Portfolio Holdings. Each Eaton Vance Fund and its underlying
Portfolio(s) (if applicable) files a schedule of portfolio holdings on Part F to Form N-PORT with the SEC. Certain information filed on Form N-PORT may be viewed 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.
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.
Share Repurchase Program. The Funds Board of Trustees has
approved a share repurchase program authorizing the Fund to repurchase up to 10% of its common shares outstanding as of the last day of the prior calendar year in open-market transactions at a discount to net asset value. The repurchase program does
not obligate the Fund to purchase a specific amount of shares. The Funds repurchase activity, including the number of shares purchased, average price and average discount to net asset value, is disclosed in the Funds annual and
semi-annual reports to shareholders.
Additional Notice to Shareholders. If applicable, a Fund may also redeem or purchase its outstanding preferred shares in order to maintain compliance with regulatory requirements, borrowing or rating agency requirements or for other purposes as
it deems appropriate or necessary.
Closed-End Fund
Information. Eaton Vance closed-end funds make fund performance data and certain information about portfolio characteristics available on the Eaton Vance website shortly after the end of each
month. Other information about the funds is available on the website. The funds net asset value per share is readily accessible on the Eaton Vance website. Portfolio holdings for the most recent month-end are also posted to the website
approximately 30 days following the end of the month. This information is available at www.eatonvance.com on the fund information pages under Closed-End Funds and Term Trusts.
Investment Adviser and Administrator
Eaton Vance Management
Two International Place
Boston, MA 02110
Custodian
State Street Bank and Trust Company
State Street Financial Center, One Lincoln Street
Boston, MA 02111
Transfer Agent
American Stock Transfer & Trust Company, LLC
6201 15th Avenue
Brooklyn, NY 11219
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116-5022
Fund Offices
Two International
Place
Boston, MA 02110
2426 12.31.21
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
The Board of
the Fund 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 Policies annually. 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 Board, or any committee, sub-committee or group of independent trustees identified by the Board, which will instruct the investment adviser on the appropriate course of action. If the Board Members are unable to meet and the failure to vote
a proxy would have a material adverse impact on the Fund, the investment adviser may vote such proxy, provided that it discloses the existence of the material conflict to the Chairperson of the Funds Board as soon as practicable and to the
Board at its next meeting.
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 in accordance with customized proxy voting guidelines (the
Guidelines) and/or refer them back to the investment adviser pursuant to the Policies.
The Agent is required to establish and maintain
adequate internal controls and policies in connection with the provision of proxy voting services, including methods to reasonably ensure that its analysis and recommendations are not influenced by a conflict of interest. The Guidelines include
voting guidelines for matters relating to, among other things, the election of directors, approval of independent auditors, executive compensation, corporate structure and anti-takeover defenses. The investment adviser may cause the Fund to abstain
from voting from time to time where it determines that the costs associated with voting a proxy outweigh the benefits derived from exercising the right to vote or it is unable to access or access timely ballots or other proxy information, among
other stated reasons. The Agent will refer Fund proxies to the investment adviser for instructions under circumstances where, among others: (1) the application of the Guidelines is unclear; (2) a particular proxy question is not covered by
the Guidelines; or (3) the Guidelines require input from the investment adviser. When a proxy voting issue has been referred to the investment adviser, the analyst (or portfolio manager if applicable) covering the company subject to the proxy
proposal determines the final vote (or decision not to vote) and the investment advisers Proxy Administrator (described below) instructs the Agent to vote accordingly for securities held by the Fund. Where more than one analyst covers a
particular company and the recommendations of such analysts voting a proposal conflict, the investment advisers Global Proxy Group (described below) will review such recommendations and any other available information related to the proposal
and determine the manner in which it should be voted, which may result in different recommendations for the Fund that may differ from other clients of the investment adviser.
The investment adviser has appointed a Proxy Administrator to assist in the coordination of the voting of client proxies (including the Funds) in
accordance with the Guidelines and the Policies. The investment adviser and its affiliates have also established a Global Proxy Group. The Global Proxy Group develops the investment advisers positions on all major corporate issues, creates the
Guidelines and oversees the proxy voting process. The Proxy Administrator maintains a record of all proxy questions that have been referred by the Agent, all applicable recommendations, analysis and research received and any resolution of the
matter. Before instructing the Agent to vote contrary to the Guidelines or the recommendation of the Agent, the Proxy Administrator will provide the Global Proxy Group with the Agents recommendation for the proposal along with any other
relevant materials, including the basis for the analysts recommendation. The Proxy Administrator will then instruct the Agent to vote the proxy in the manner determined by the Global Proxy Group. A similar process will be followed if the Agent
has a conflict of interest with respect to a proxy. The investment adviser will report to the Funds Board any votes cast contrary to the Guidelines or Agent recommendations, as applicable, no less than annually.
The investment advisers Global Proxy Group is responsible for monitoring and resolving possible material conflicts with respect to proxy voting. Because
the Guidelines are predetermined and designed to be in the best interests of shareholders, application of the Guidelines to vote client proxies should, in most cases, adequately address any possible conflict of interest. The investment adviser will
monitor situations that may result in a conflict of interest between any of its clients and the investment adviser or any of its affiliates by maintaining a list of significant existing and prospective corporate clients. The Proxy Administrator will
compare such list with the names of companies of which he or she has been referred a proxy statement (the Proxy Companies). If a company on the list is also a Proxy Company, the Proxy Administrator will report that fact to the Global
Proxy Group. If the Proxy Administrator intends to instruct the Agent to vote in a manner inconsistent with the Guidelines, the Global Proxy Group will first determine, in consultation with legal
counsel if necessary, whether a material conflict exists. If it is determined that a material conflict exists, the investment adviser will seek instruction on how the proxy should be voted from the Funds Board, or any committee or subcommittee
identified by the Board. If a matter is referred to the Global Proxy Group, the decision made and basis for the decision will be documented by the Proxy Administrator and/or Global Proxy Group.
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
Eaton Vance Management (EVM or Eaton Vance) is the investment adviser of the Fund. Lewis R. Piantedosi and Douglas
R. Rogers comprise the investment team responsible for the overall and day-to-day management of the Funds investments.
Mr. Piantedosi is a Vice President of EVM, has been a portfolio manager of the Fund since September 2014 and has managed other Eaton Vance portfolios for
more than five years. Mr. Rogers is a Vice President of EVM, has been an equity analyst at Eaton Vance since 2001 and has been a portfolio manager of the Fund since July 2021. This information is provided as of the date of filing this report.
The following table shows, as of the Funds most recent fiscal year end, the number of accounts each portfolio manager managed in each of the listed
categories and the total assets (in millions of dollars) in the accounts managed within each category. The table also shows the number of accounts with respect to which the advisory fee is based on the performance of the account, if any, and the
total assets (in millions of dollars) in those accounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of All Accounts |
|
|
Total Assets of All Accounts |
|
|
Number of Accounts Paying a Performance Fee |
|
|
Total Assets of Accounts Paying a Performance Fee |
|
Lewis R. Piantedosi(1)(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Registered Investment Companies |
|
|
6 |
|
|
$ |
3,128.3 |
|
|
|
0 |
|
|
$ |
0 |
|
Other Pooled Investment Vehicles |
|
|
1 |
|
|
$ |
30.0 |
|
|
|
0 |
|
|
$ |
0 |
|
Other Accounts |
|
|
6 |
|
|
$ |
74.1 |
|
|
|
0 |
|
|
$ |
0 |
|
Douglas R. Rogers(1)(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Registered Investment Companies |
|
|
6 |
|
|
$ |
3,128.3 |
|
|
|
0 |
|
|
$ |
0 |
|
Other Pooled Investment Vehicles |
|
|
1 |
|
|
$ |
30.0 |
|
|
|
0 |
|
|
$ |
0 |
|
Other Accounts |
|
|
6 |
|
|
$ |
74.1 |
|
|
|
0 |
|
|
$ |
0 |
|
(1) |
This portfolio manager serves as portfolio manager of one or more registered investment companies that invests
or may invest in one or more underlying registered investment companies in the Eaton Vance family of funds or other pooled investment vehicles sponsored by Eaton Vance. The underlying investment companies may be managed by this portfolio manager or
another portfolio manager. |
(2) |
This portfolio manager provides advisory services for certain of the Other Accounts on a
nondiscretionary or model basis. For Other Accounts that are part of a wrap account program, the number of accounts is the number of sponsors for which the portfolio manager provides advisory services rather than the number of individual
customer accounts within each wrap account program. The assets managed may include assets advised on a nondiscretionary or model basis. |
The following table shows the dollar range of Fund shares beneficially owned by each portfolio manager as of the
Funds most recent fiscal year end.
|
|
|
Portfolio Manager |
|
Dollar Range of Equity Securities Beneficially Owned in the Fund |
Lewis R. Piantedosi |
|
None |
Douglas R. Rogers |
|
None |
Potential for Conflicts of Interest. It is possible that conflicts of interest may arise in connection with a portfolio
managers management of the Funds investments on the one hand and the investments of other accounts for which a portfolio manager is responsible on the other. For example, a portfolio manager may have conflicts of interest in allocating
management time, resources and investment opportunities among the Fund and other accounts he advises. In addition, due to differences in the investment strategies or restrictions between the Fund and the other accounts, the portfolio manager may
take action with respect to another account that differs from the action taken with respect to the Fund. In some cases, another account managed by a portfolio manager may compensate the investment adviser based on the performance of the securities
held by that account. The existence of such a performance based fee may create additional conflicts of interest for the portfolio manager in the allocation of management time, resources and investment opportunities. Whenever conflicts of interest
arise, the portfolio manager will endeavor to exercise his discretion in a manner that he believes is equitable to all interested persons. EVM has adopted several policies and procedures designed to address these potential conflicts including a code
of ethics and policies that govern the investment advisers trading practices, including among other things the aggregation and allocation of trades among clients, brokerage allocations, cross trades and best execution.
Compensation Structure for EVM
Compensation of
EVMs portfolio managers and other investment professionals has the following primary components: (1) a base salary and (2) discretionary variable compensation that is comprised of cash bonus and depending on eligibility, may also
include deferred compensation consisting of restricted shares of Morgan Stanley stock and deferred cash that are subject to a fixed vesting and distribution schedule. EVMs investment professionals also receive certain retirement, insurance and
other benefits that are broadly available to EVMs employees. Compensation of EVMs investment professionals is reviewed primarily on an annual basis. Cash bonuses and deferred compensation awards, and adjustments in base salary are
typically paid or put into effect shortly after the December 31st fiscal year end of Morgan Stanley.
Method to Determine Compensation. EVM compensates its portfolio managers based on company and team business results, and individual performance,
including the scale and complexity of their portfolio responsibilities and the total return performance of managed funds and accounts versus the benchmark(s) stated in the prospectus, as well as an appropriate peer group (as described below). In
addition to rankings within peer groups of funds on the basis of absolute performance, consideration may also be given to relative risk-adjusted performance. Risk-adjusted performance measures include, but are not limited to the Sharpe ratio, which
uses standard deviation and excess return to determine reward per unit of risk. Fund performance is normally evaluated primarily versus peer groups of funds as determined by Lipper Inc. and/or Morningstar, Inc. When a funds peer group as
determined by Lipper or Morningstar is deemed by EVMs management not to provide a fair comparison, performance may instead be evaluated primarily against a custom peer group or market index. In evaluating the performance of a fund and its
manager, primary emphasis is normally placed on three-year performance, with secondary consideration of performance over longer and shorter periods. For funds that are tax-managed or otherwise have
an objective of after-tax returns, performance is measured net of taxes. For other funds, performance is evaluated on a pre-tax basis. For funds with
an investment objective other than total return (such as current income), consideration will also be given to the funds success in achieving its objective. For managers responsible for multiple funds and accounts, investment performance is
evaluated on an aggregate basis, based on averages or weighted averages among managed funds and accounts. Funds and accounts that have performance-based advisory fees are not accorded disproportionate weightings in measuring aggregate portfolio
manager performance.
The compensation of portfolio managers with other job responsibilities (such as heading an investment group or
providing analytical support to other portfolios) will include consideration of the scope of such responsibilities and the managers performance in meeting them.
EVM seeks to compensate portfolio managers commensurate with their responsibilities and performance, and competitive with other firms within the investment
management industry. EVM participates in investment-industry compensation surveys and utilizes survey data as a factor in determining salary and variable compensation levels for portfolio managers and other investment professionals. Salaries and
variable compensation are also influenced by the operating performance of EVM and Morgan Stanley. While the salaries of EVMs portfolio managers are comparatively fixed, variable compensation may fluctuate significantly from year to year, based
on changes in company and team performance, manager performance and other factors as described herein. For a high performing portfolio manager, variable compensation may represent a substantial portion of total compensation.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
No such purchases this period.
Item 10.
Submission of Matters to a Vote of Security Holders
No material changes.