UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-CSR
CERTIFIED
SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-10389
Tax-Managed International Equity Portfolio
(Exact Name of Registrant as Specified in Charter)
Two
International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
Deidre E. Walsh
Two
International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
(617) 482-8260
(Registrant’s Telephone Number)
October 31
Date of
Fiscal Year End
October 31, 2022
Date of Reporting Period
Item 1. Reports to Stockholders
Tax-Managed
International Equity Portfolio
October 31, 2022
| Security
|
Shares
|
Value
|
| Australia
— 8.3% |
| AGL
Energy, Ltd. |
|
18,829
|
$ 82,034
|
| Altium,
Ltd. |
|
2,652
|
59,880
|
| Ampol,
Ltd. |
|
3,627
|
63,261
|
| Ansell,
Ltd. |
|
1,409
|
25,437
|
| APA
Group |
|
24,888
|
167,556
|
| ASX,
Ltd.(1) |
|
1,525
|
66,076
|
| Aurizon
Holdings, Ltd. |
|
14,009
|
32,464
|
| Australia
and New Zealand Banking Group, Ltd. |
|
2,177
|
35,667
|
| BHP
Group, Ltd. |
|
8,183
|
196,557
|
| Brambles,
Ltd. |
|
17,422
|
130,434
|
| carsales.com,
Ltd.(1) |
|
5,155
|
66,777
|
| Charter
Hall Long Wale REIT |
|
6,388
|
17,812
|
| Charter
Hall Retail REIT(1) |
|
6,757
|
17,399
|
| Cleanaway
Waste Management, Ltd. |
|
15,558
|
26,911
|
| Coles
Group, Ltd. |
|
12,714
|
132,933
|
| Commonwealth
Bank of Australia |
|
4,049
|
271,472
|
| Cromwell
Property Group(1) |
|
20,061
|
8,997
|
| CSL,
Ltd. |
|
2,345
|
419,791
|
| Dexus
|
|
13,975
|
69,639
|
| Domino's
Pizza Enterprises, Ltd.(1) |
|
933
|
38,042
|
| Elders,
Ltd.(1) |
|
3,009
|
25,087
|
| EVT,
Ltd.(1)(2) |
|
2,551
|
24,355
|
| Goodman
Group |
|
12,811
|
139,393
|
| GPT
Group (The)(1) |
|
22,015
|
60,840
|
| GWA
Group, Ltd. |
|
11,241
|
14,594
|
| Hansen
Technologies, Ltd. |
|
14,633
|
46,081
|
| Harvey
Norman Holdings, Ltd.(1) |
|
17,000
|
45,225
|
| IDP
Education, Ltd.(1) |
|
3,186
|
60,110
|
| IPH,
Ltd. |
|
4,980
|
31,672
|
| IRESS,
Ltd. |
|
3,720
|
24,146
|
| JB
Hi-Fi, Ltd.(1) |
|
1,878
|
51,480
|
| Lendlease
Corp., Ltd.(1) |
|
9,400
|
52,271
|
| Lottery
Corp., Ltd. (The)(2) |
|
26,454
|
72,573
|
| Medibank
Private, Ltd. |
|
16,474
|
29,664
|
| Metcash,
Ltd.(1) |
|
11,800
|
30,977
|
| Mirvac
Group(1) |
|
41,842
|
55,439
|
| Newcrest
Mining, Ltd. |
|
2,354
|
26,071
|
| Nine
Entertainment Co. Holdings, Ltd. |
|
46,592
|
61,530
|
| Northern
Star Resources, Ltd.(1) |
|
3,606
|
20,125
|
| Orica,
Ltd. |
|
4,147
|
36,889
|
| Qube
Holdings, Ltd. |
|
28,277
|
49,229
|
| REA
Group, Ltd.(1) |
|
1,183
|
91,689
|
| Reece,
Ltd.(1) |
|
3,969
|
39,412
|
| Rio
Tinto, Ltd. |
|
2,262
|
128,368 |
| Security
|
Shares
|
Value
|
| Australia
(continued) |
| Shopping
Centres Australasia Property Group |
|
20,523
|
$
35,745 |
| Sonic
Healthcare, Ltd. |
|
2,770
|
57,991
|
| Suncorp
Group, Ltd. |
|
10,185
|
74,503
|
| Tabcorp
Holdings, Ltd.(1) |
|
26,454
|
16,332
|
| Technology
One, Ltd. |
|
10,774
|
82,885
|
| Telstra
Group, Ltd.(1) |
|
78,759
|
197,483
|
| TPG
Telecom, Ltd.(1) |
|
20,255
|
63,540
|
| Transurban
Group |
|
22,607
|
191,774
|
| Washington
H. Soul Pattinson & Co., Ltd. |
|
6,497
|
116,271
|
| Waypoint
REIT, Ltd. |
|
9,833
|
17,168
|
| Wesfarmers,
Ltd. |
|
7,953
|
230,788
|
| Westpac
Banking Corp. |
|
3,483
|
53,781
|
| Whitehaven
Coal, Ltd. |
|
17,283
|
100,393
|
| Woodside
Energy Group, Ltd. |
|
10,133
|
234,259
|
| Woolworths
Group, Ltd. |
|
14,196
|
299,788
|
| Worley,
Ltd.(1) |
|
4,927
|
45,004
|
| |
|
|
$ 4,964,064
|
| Austria
— 1.1% |
| ams-OSRAM
AG(1)(2) |
|
3,049
|
$
17,258 |
| ANDRITZ
AG |
|
1,698
|
78,917
|
| AT&S
Austria Technologie & Systemtechnik AG |
|
704
|
21,743
|
| BAWAG
Group AG(3) |
|
822
|
39,683
|
| CA
Immobilien Anlagen AG |
|
2,850
|
90,015
|
| Erste
Group Bank AG |
|
2,269
|
55,919
|
| IMMOFINANZ
AG |
|
1,241
|
0
|
| Kontron
AG |
|
1,191
|
17,238
|
| Lenzing
AG |
|
466
|
22,295
|
| Mayr
Melnhof Karton AG |
|
125
|
17,787
|
| Oesterreichische
Post AG |
|
768
|
21,852
|
| OMV
AG |
|
2,018
|
92,916
|
| PIERER
Mobility AG(1) |
|
420
|
24,368
|
| Telekom
Austria AG |
|
8,000
|
46,504
|
| Verbund
AG |
|
1,229
|
96,274
|
| voestalpine
AG |
|
1,029
|
22,340
|
| |
|
|
$ 665,109
|
| Belgium
— 2.2% |
| Ackermans
& van Haaren NV |
|
831
|
$
115,776 |
| Ageas
S.A./NV |
|
1,164
|
40,296
|
| Anheuser-Busch
InBev S.A./NV |
|
2,419
|
120,999
|
| Cofinimmo
S.A. |
|
488
|
40,473
|
| Deceuninck
NV |
|
12,470
|
25,381
|
| D'Ieteren
Group |
|
881
|
146,623
|
| Econocom
Group S.A./NV |
|
10,730
|
29,162
|
| Elia
Group S.A./NV |
|
938
|
118,594 |
19
See Notes to Financial Statements.
Tax-Managed
International Equity Portfolio
October 31, 2022
Portfolio of
Investments — continued
| Security
|
Shares
|
Value
|
| Belgium
(continued) |
| Etablissements
Franz Colruyt NV |
|
478
|
$
11,522 |
| Euronav
NV |
|
5,526
|
96,339
|
| EVS
Broadcast Equipment S.A. |
|
1,740
|
35,562
|
| Fagron
|
|
1,130
|
14,068
|
| Groupe
Bruxelles Lambert NV |
|
459
|
33,840
|
| KBC
Group NV |
|
340
|
17,039
|
| Melexis
NV |
|
909
|
62,518
|
| Montea
NV |
|
196
|
13,369
|
| Proximus
SADP |
|
9,427
|
98,830
|
| Shurgard
Self Storage S.A. |
|
370
|
16,110
|
| Sofina
S.A. |
|
150
|
29,250
|
| Solvay
S.A. |
|
537
|
48,459
|
| UCB
S.A. |
|
1,600
|
120,588
|
| Umicore
S.A. |
|
2,338
|
77,074
|
| VGP
NV |
|
165
|
12,511
|
| |
|
|
$ 1,324,383
|
| Denmark
— 4.3% |
| Alm
Brand A/S |
|
18,202
|
$
24,875 |
| AP
Moller - Maersk A/S, Class A |
|
34
|
68,023
|
| AP
Moller - Maersk A/S, Class B |
|
45
|
94,013
|
| Bakkafrost
P/F |
|
1,540
|
77,027
|
| Carlsberg
A/S, Class B |
|
2,213
|
260,571
|
| Chr.
Hansen Holding A/S |
|
2,271
|
126,134
|
| Coloplast
A/S, Class B |
|
665
|
74,128
|
| DFDS
A/S |
|
1,410
|
42,818
|
| DSV
A/S |
|
1,214
|
164,046
|
| Jyske
Bank A/S(2) |
|
1,046
|
56,452
|
| Netcompany
Group A/S(2)(3) |
|
1,534
|
52,592
|
| Novo
Nordisk A/S, Class B |
|
3,847
|
418,289
|
| Novozymes
A/S, Class B |
|
4,578
|
240,302
|
| Orsted
A/S(1)(3) |
|
4,338
|
357,910
|
| Pandora
A/S |
|
2,723
|
143,239
|
| Ringkjoebing
Landbobank A/S |
|
652
|
70,913
|
| Scandinavian
Tobacco Group A/S(3) |
|
1,702
|
28,510
|
| SimCorp
A/S |
|
792
|
47,291
|
| Spar
Nord Bank A/S |
|
2,029
|
24,566
|
| Sydbank
A/S |
|
1,310
|
39,890
|
| Topdanmark
A/S |
|
972
|
44,861
|
| Tryg
A/S |
|
5,012
|
108,406
|
| |
|
|
$ 2,564,856
|
| Finland
— 2.2% |
| Elisa
Oyj |
|
2,351
|
$
113,615 |
| Fortum
Oyj |
|
7,644
|
107,584
|
| Kemira
Oyj |
|
2,727
|
36,008 |
| Security
|
Shares
|
Value
|
| Finland
(continued) |
| Kesko
Oyj, Class B |
|
4,942
|
$
96,175 |
| Kojamo
Oyj(1) |
|
3,939
|
51,265
|
| Kone
Oyj, Class B |
|
1,969
|
80,622
|
| Neste
Oyj |
|
2,521
|
110,492
|
| Nokia
Oyj |
|
23,544
|
104,628
|
| Nokian
Renkaat Oyj |
|
5,452
|
61,481
|
| Nordea
Bank Abp |
|
13,924
|
133,009
|
| Orion
Oyj, Class B |
|
3,636
|
167,322
|
| TietoEVRY
Oyj(1) |
|
956
|
22,790
|
| Tokmanni
Group Corp. |
|
7,427
|
89,801
|
| UPM-Kymmene
Oyj |
|
3,680
|
123,712
|
| Valmet
Oyj |
|
1,377
|
31,317
|
| |
|
|
$ 1,329,821
|
| France
— 8.8% |
| Air
Liquide S.A. |
|
4,518
|
$
591,016 |
| Altarea
SCA |
|
326
|
43,427
|
| Amundi
S.A.(3) |
|
792
|
37,366
|
| Atos
SE(1)(2) |
|
2,719
|
26,533
|
| AXA
S.A. |
|
8,332
|
205,758
|
| BNP
Paribas S.A. |
|
1,617
|
75,827
|
| Bollore
SE |
|
13,714
|
68,591
|
| Bouygues
S.A. |
|
1,100
|
31,384
|
| Carrefour
S.A. |
|
5,094
|
81,990
|
| Cie
Generale des Etablissements Michelin SCA |
|
2,492
|
63,506
|
| Credit
Agricole S.A. |
|
7,839
|
71,128
|
| Danone
S.A. |
|
2,980
|
148,104
|
| Dassault
Systemes SE |
|
7,700
|
258,095
|
| Edenred
|
|
1,747
|
89,562
|
| Engie
S.A. |
|
23,380
|
303,785
|
| EssilorLuxottica
S.A. |
|
1,642
|
259,646
|
| Eurazeo
SE |
|
634
|
36,179
|
| Gecina
S.A. |
|
1,055
|
94,058
|
| Getlink
SE |
|
2,197
|
34,766
|
| Hermes
International |
|
100
|
129,439
|
| ICADE
|
|
1,083
|
40,286
|
| Klepierre
S.A. |
|
4,222
|
84,855
|
| Legrand
S.A. |
|
560
|
42,675
|
| LVMH
Moet Hennessy Louis Vuitton SE |
|
650
|
410,147
|
| Neoen
S.A.(1)(3) |
|
1,189
|
41,472
|
| Orange
S.A. |
|
25,469
|
242,666
|
| Pernod
Ricard S.A.(1) |
|
786
|
137,952
|
| Remy
Cointreau S.A. |
|
343
|
52,458
|
| Rothschild
& Co. |
|
845
|
29,967
|
| Rubis
SCA |
|
2,794
|
63,450
|
| Sanofi
|
|
3,896
|
335,281 |
20
See Notes to Financial Statements.
Tax-Managed
International Equity Portfolio
October 31, 2022
Portfolio of
Investments — continued
| Security
|
Shares
|
Value
|
| France
(continued) |
| Schneider
Electric SE |
|
857
|
$
108,373 |
| SOITEC
(2) |
|
493
|
63,126
|
| Technip
Energies NV |
|
3,214
|
41,489
|
| Teleperformance
|
|
177
|
47,424
|
| Thales
S.A. |
|
600
|
76,308
|
| TotalEnergies
SE |
|
9,935
|
541,988
|
| Ubisoft
Entertainment S.A.(2) |
|
1,529
|
41,950
|
| Vinci
S.A. |
|
1,159
|
106,671
|
| Vivendi
SE |
|
3,744
|
30,645
|
| Wendel
SE |
|
356
|
27,875
|
| |
|
|
$ 5,217,218
|
| Germany
— 8.7% |
| 7C
Solarparken AG |
|
20,398
|
$
88,681 |
| adidas
AG |
|
673
|
65,695
|
| AIXTRON
SE |
|
763
|
18,750
|
| Allianz
SE |
|
1,213
|
218,224
|
| BASF
SE |
|
4,755
|
213,360
|
| Bayer
AG |
|
4,117
|
216,476
|
| Bayerische
Motoren Werke AG |
|
1,291
|
101,333
|
| Bechtle
AG |
|
893
|
30,850
|
| Beiersdorf
AG |
|
2,655
|
254,867
|
| Brenntag
SE |
|
725
|
43,990
|
| Covestro
AG(3) |
|
1,046
|
35,508
|
| Cropenergies
AG |
|
2,253
|
35,906
|
| Daimler
Truck Holding AG(2) |
|
1,859
|
49,584
|
| Delivery
Hero SE(2)(3) |
|
1,222
|
40,215
|
| Deutsche
Bank AG |
|
6,495
|
61,909
|
| Deutsche
Boerse AG |
|
659
|
107,166
|
| Deutsche
Lufthansa AG(2) |
|
5,121
|
35,012
|
| Deutsche
Post AG |
|
3,011
|
106,438
|
| Deutsche
Telekom AG |
|
23,227
|
438,421
|
| Deutsche
Wohnen SE |
|
2,636
|
53,169
|
| E.ON
SE |
|
52,993
|
443,763
|
| Evonik
Industries AG |
|
3,498
|
64,439
|
| Gea
Group AG |
|
1,075
|
37,576
|
| Hamborner
REIT AG |
|
13,027
|
92,935
|
| Hannover
Rueck SE |
|
220
|
35,799
|
| HelloFresh
SE(2) |
|
2,469
|
49,353
|
| Henkel
AG & Co. KGaA, PFC Shares |
|
1,138
|
71,692
|
| K+S
AG |
|
3,195
|
70,542
|
| Merck
KGaA |
|
792
|
129,068
|
| Muenchener
Rueckversicherungs-Gesellschaft AG |
|
361
|
95,295
|
| Nemetschek
SE |
|
733
|
34,947
|
| Puma
SE |
|
927
|
40,984
|
| QIAGEN
NV(2) |
|
1,735
|
74,923 |
| Security
|
Shares
|
Value
|
| Germany
(continued) |
| Rheinmetall
AG |
|
216
|
$
35,111 |
| SAP
SE |
|
3,984
|
383,471
|
| Sartorius
AG, PFC Shares |
|
95
|
33,496
|
| Siemens
AG |
|
1,867
|
203,893
|
| Siemens
Healthineers AG(3) |
|
1,428
|
65,420
|
| Software
AG |
|
2,115
|
46,270
|
| Suedzucker
AG |
|
11,715
|
149,295
|
| Symrise
AG |
|
1,413
|
144,229
|
| Telefonica
Deutschland Holding AG |
|
31,010
|
67,568
|
| United
Internet AG |
|
2,526
|
47,219
|
| Vitesco
Technologies Group AG(2) |
|
915
|
48,960
|
| Volkswagen
AG |
|
307
|
52,476
|
| Volkswagen
AG, PFC Shares |
|
790
|
101,121
|
| Vonovia
SE |
|
14,528
|
321,223
|
| Zalando
SE(2)(3) |
|
1,079
|
24,869
|
| |
|
|
$ 5,181,491
|
| Hong
Kong — 4.3% |
| AIA
Group, Ltd. |
|
34,200
|
$
259,058 |
| Bank
of East Asia, Ltd. (The) |
|
28,200
|
27,026
|
| Beijing
Tong Ren Tang Chinese Medicine Co., Ltd.(1) |
|
21,000
|
23,480
|
| BOC
Hong Kong Holdings, Ltd. |
|
20,000
|
62,146
|
| Budweiser
Brewing Co. APAC, Ltd.(3) |
|
73,300
|
154,276
|
| Cafe
de Coral Holdings, Ltd. |
|
22,000
|
25,675
|
| China
Evergrande New Energy Vehicle Group, Ltd.(2)(4) |
|
88,500
|
0
|
| China
Ruyi Holdings, Ltd.(2) |
|
112,000
|
17,568
|
| China
Traditional Chinese Medicine Holdings Co., Ltd. |
|
60,000
|
25,935
|
| Chow
Tai Fook Jewellery Group, Ltd. |
|
43,000
|
73,619
|
| CK
Asset Holdings, Ltd. |
|
13,000
|
71,871
|
| CK
Hutchison Holdings, Ltd. |
|
25,000
|
124,446
|
| CLP
Holdings, Ltd. |
|
19,500
|
130,880
|
| Fosun
International, Ltd. |
|
54,000
|
33,000
|
| Galaxy
Entertainment Group, Ltd. |
|
34,000
|
155,334
|
| Hang
Seng Bank, Ltd. |
|
3,700
|
52,088
|
| Henderson
Land Development Co., Ltd. |
|
17,260
|
42,257
|
| HK
Electric Investments & HK Electric Investments, Ltd. |
|
64,500
|
41,010
|
| HKT
Trust and HKT, Ltd. |
|
121,000
|
136,844
|
| Hong
Kong & China Gas Co., Ltd. |
|
147,906
|
114,001
|
| Hysan
Development Co., Ltd. |
|
5,000
|
10,898
|
| Jardine
Matheson Holdings, Ltd. |
|
2,200
|
101,350
|
| Kerry
Properties, Ltd. |
|
10,000
|
15,819
|
| Link
REIT |
|
12,000
|
70,927
|
| Luk
Fook Holdings International, Ltd. |
|
15,000
|
32,586
|
| MTR
Corp., Ltd. |
|
17,000
|
74,803
|
| New
World Development Co., Ltd. |
|
11,000
|
22,500
|
| NWS
Holdings, Ltd. |
|
51,000
|
36,167 |
21
See Notes to Financial Statements.
Tax-Managed
International Equity Portfolio
October 31, 2022
Portfolio of
Investments — continued
| Security
|
Shares
|
Value
|
| Hong
Kong (continued) |
| Pacific
Basin Shipping, Ltd. |
|
119,000
|
$
28,810 |
| PAX
Global Technology, Ltd. |
|
75,000
|
58,944
|
| PCCW,
Ltd. |
|
115,000
|
43,936
|
| Power
Assets Holdings, Ltd. |
|
22,000
|
105,194
|
| Sands
China, Ltd.(2) |
|
34,800
|
60,838
|
| Shangri-La
Asia, Ltd.(2) |
|
48,000
|
26,559
|
| Sino
Land Co., Ltd.(1) |
|
32,000
|
34,170
|
| SJM
Holdings, Ltd.(1)(2) |
|
94,000
|
29,333
|
| Sun
Hung Kai Properties, Ltd. |
|
8,000
|
85,971
|
| Swire
Properties, Ltd. |
|
17,200
|
33,057
|
| VSTECS
Holdings, Ltd. |
|
60,000
|
28,849
|
| VTech
Holdings, Ltd. |
|
10,000
|
53,232
|
| Zhongyu
Energy Holdings, Ltd. |
|
36,000
|
26,792
|
| |
|
|
$ 2,551,249
|
| Ireland
— 2.2% |
| Bank
of Ireland Group PLC |
|
31,887
|
$
229,606 |
| CRH
PLC |
|
6,065
|
218,448
|
| DCC
PLC |
|
1,417
|
78,645
|
| Flutter
Entertainment PLC(2) |
|
1,544
|
203,915
|
| ICON
PLC(2) |
|
1,080
|
213,667
|
| Irish
Residential Properties REIT PLC |
|
42,500
|
45,952
|
| Kerry
Group PLC, Class A |
|
2,357
|
204,717
|
| Kingspan
Group PLC |
|
2,396
|
120,798
|
| |
|
|
$ 1,315,748
|
| Israel
— 2.2% |
| Amot
Investments, Ltd. |
|
5,499
|
$
33,265 |
| Azrieli
Group, Ltd. |
|
509
|
37,709
|
| Bank
Hapoalim B.M. |
|
4,902
|
47,252
|
| Bank
Leumi Le-Israel B.M. |
|
4,425
|
42,213
|
| Bezeq
The Israeli Telecommunication Corp., Ltd. |
|
74,540
|
131,953
|
| Check
Point Software Technologies, Ltd.(2) |
|
385
|
49,754
|
| Elbit
Systems, Ltd. |
|
297
|
60,094
|
| Electra,
Ltd. |
|
76
|
44,221
|
| Energix-Renewable
Energies, Ltd. |
|
13,304
|
46,447
|
| Fiverr
International, Ltd.(2) |
|
353
|
10,925
|
| Fox
Wizel, Ltd. |
|
369
|
44,985
|
| ICL
Group, Ltd. |
|
12,708
|
114,596
|
| Kenon
Holdings, Ltd. |
|
1,599
|
61,260
|
| Maytronics,
Ltd. |
|
4,367
|
47,087
|
| Mizrahi
Tefahot Bank, Ltd. |
|
781
|
29,523
|
| Nice,
Ltd.(2) |
|
490
|
92,350
|
| Oil
Refineries, Ltd. |
|
76,583
|
28,521
|
| OPC
Energy, Ltd.(2) |
|
1,911
|
23,496
|
| Paz
Oil Co., Ltd.(2) |
|
650
|
77,651 |
| Security
|
Shares
|
Value
|
| Israel
(continued) |
| Reit
1, Ltd. |
|
7,407
|
$
38,864 |
| Shufersal,
Ltd. |
|
11,960
|
81,645
|
| Strauss
Group, Ltd. |
|
1,358
|
33,974
|
| Teva
Pharmaceutical Industries, Ltd. ADR(2) |
|
13,432
|
119,813
|
| ZIM
Integrated Shipping Services, Ltd.(1) |
|
400
|
9,396
|
| |
|
|
$ 1,306,994
|
| Italy
— 4.4% |
| Assicurazioni
Generali SpA |
|
4,184
|
$
62,790 |
| Atlantia
SpA |
|
6,270
|
139,868
|
| Banco
BPM SpA |
|
12,713
|
38,463
|
| Brunello
Cucinelli SpA |
|
1,252
|
72,573
|
| Cementir
Holding NV |
|
6,913
|
40,236
|
| Davide
Campari-Milano NV |
|
18,866
|
169,423
|
| De'Longhi
SpA |
|
1,200
|
20,705
|
| DiaSorin
SpA |
|
977
|
127,729
|
| Enel
SpA |
|
40,123
|
179,243
|
| Eni
SpA |
|
20,895
|
274,429
|
| Ferrari
NV |
|
793
|
156,331
|
| FinecoBank
Banca Fineco SpA |
|
1,887
|
25,428
|
| GVS
SpA(2)(3) |
|
4,062
|
20,840
|
| Infrastrutture
Wireless Italiane SpA(3) |
|
21,493
|
189,701
|
| Interpump
Group SpA |
|
778
|
30,121
|
| Intesa
Sanpaolo SpA |
|
70,463
|
134,340
|
| Italgas
SpA |
|
7,381
|
38,029
|
| Italmobiliare
SpA |
|
1,360
|
34,766
|
| Iveco
Group NV(2) |
|
3,449
|
18,637
|
| MFE-MediaForEurope
NV, Class B |
|
9,790
|
4,890
|
| Moncler
SpA |
|
627
|
27,051
|
| Poste
Italiane SpA(3) |
|
5,564
|
48,486
|
| Prysmian
SpA |
|
2,617
|
85,178
|
| RAI
Way SpA(3) |
|
4,122
|
19,746
|
| Recordati
Industria Chimica e Farmaceutica SpA |
|
4,029
|
151,376
|
| Reply
SpA |
|
996
|
108,338
|
| Saipem
SpA (1)(2) |
|
540
|
525
|
| Salvatore
Ferragamo SpA(1) |
|
2,265
|
33,293
|
| Saras
SpA(2) |
|
14,538
|
17,571
|
| STMicroelectronics
NV(1) |
|
7,572
|
235,462
|
| Technogym
SpA(3) |
|
2,741
|
18,844
|
| Terna
- Rete Elettrica Nazionale |
|
8,968
|
59,473
|
| UnipolSai
Assicurazioni SpA |
|
10,716
|
24,162
|
| |
|
|
$ 2,608,047
|
| Japan
— 13.1% |
| Advance
Residence Investment Corp. |
|
13
|
$
30,266 |
| Air
Water, Inc. |
|
2,000
|
22,330 |
22
See Notes to Financial Statements.
Tax-Managed
International Equity Portfolio
October 31, 2022
Portfolio of
Investments — continued
| Security
|
Shares
|
Value
|
| Japan
(continued) |
| Ajinomoto
Co., Inc. |
|
1,400
|
$ 38,504
|
| ANA
Holdings, Inc.(2) |
|
1,100
|
21,383
|
| Asahi
Intecc Co., Ltd. |
|
3,900
|
66,437
|
| Asahi
Kasei Corp. |
|
8,100
|
51,936
|
| Astellas
Pharma, Inc. |
|
6,200
|
85,549
|
| Bandai
Namco Holdings, Inc. |
|
800
|
52,882
|
| Bank
of Kyoto, Ltd. (The) |
|
500
|
18,018
|
| Bridgestone
Corp. |
|
1,600
|
57,866
|
| Canon,
Inc. |
|
1,500
|
31,796
|
| Central
Japan Railway Co. |
|
200
|
23,155
|
| Chiba
Bank, Ltd. (The) |
|
7,000
|
38,354
|
| Chubu
Electric Power Co., Inc. |
|
3,500
|
28,490
|
| Chugai
Pharmaceutical Co., Ltd. |
|
2,700
|
62,564
|
| Chugoku
Electric Power Co., Inc. (The) |
|
3,800
|
17,828
|
| Concordia
Financial Group, Ltd. |
|
10,800
|
32,953
|
| CyberAgent,
Inc. |
|
3,200
|
26,289
|
| Daiichi
Sankyo Co., Ltd. |
|
3,800
|
121,641
|
| Daikin
Industries, Ltd. |
|
500
|
74,894
|
| Daito
Trust Construction Co., Ltd. |
|
500
|
49,512
|
| Daiwa
House Industry Co., Ltd. |
|
3,500
|
70,516
|
| Daiwa
House REIT Investment Corp. |
|
23
|
46,421
|
| Daiwa
Securities Group, Inc. |
|
7,000
|
27,312
|
| Disco
Corp. |
|
200
|
47,836
|
| ENEOS
Holdings, Inc. |
|
41,800
|
137,884
|
| FANUC
Corp. |
|
200
|
26,170
|
| Frontier
Real Estate Investment Corp. |
|
8
|
28,244
|
| FUJIFILM
Holdings Corp. |
|
500
|
22,875
|
| Fujitsu,
Ltd. |
|
300
|
34,518
|
| GLP
J-REIT |
|
41
|
42,520
|
| Hirose
Electric Co., Ltd. |
|
315
|
40,862
|
| Hitachi,
Ltd. |
|
1,300
|
58,986
|
| Honda
Motor Co., Ltd. |
|
3,100
|
70,688
|
| Hoya
Corp. |
|
1,300
|
120,850
|
| Hulic
Co., Ltd. |
|
4,000
|
29,057
|
| Idemitsu
Kosan Co., Ltd. |
|
3,700
|
80,957
|
| Industrial
& Infrastructure Fund Investment Corp. |
|
21
|
22,179
|
| ITOCHU
Corp. |
|
1,500
|
38,767
|
| Iwatani
Corp. |
|
1,800
|
66,279
|
| Japan
Exchange Group, Inc. |
|
2,100
|
27,598
|
| Japan
Post Bank Co., Ltd. |
|
2,300
|
15,325
|
| Japan
Post Holdings Co., Ltd.(1) |
|
2,800
|
18,829
|
| Japan
Real Estate Investment Corp. |
|
11
|
46,093
|
| Japan
Tobacco, Inc. |
|
5,900
|
98,810
|
| JSR
Corp. |
|
1,500
|
28,502
|
| Kakaku.com,
Inc. |
|
1,900
|
32,135
|
| Kao
Corp. |
|
1,000
|
37,352 |
| Security
|
Shares
|
Value
|
| Japan
(continued) |
| KDDI
Corp. |
|
6,400
|
$ 189,165
|
| Kenedix
Office Investment Corp. |
|
12
|
27,336
|
| Keyence
Corp. |
|
400
|
150,826
|
| Kintetsu
Group Holdings Co., Ltd. |
|
800
|
27,036
|
| Kirin
Holdings Co., Ltd. |
|
3,800
|
55,860
|
| Kobe
Bussan Co., Ltd.(1) |
|
1,400
|
30,367
|
| Komatsu,
Ltd. |
|
2,200
|
43,098
|
| Kubota
Corp. |
|
2,500
|
34,874
|
| Kuraray
Co., Ltd. |
|
4,800
|
33,007
|
| Kyocera
Corp. |
|
900
|
43,584
|
| Kyowa
Kirin Co., Ltd. |
|
2,700
|
63,590
|
| Kyushu
Electric Power Co., Inc. |
|
3,600
|
17,824
|
| Lion
Corp. |
|
5,400
|
54,576
|
| Marubeni
Corp. |
|
7,000
|
61,277
|
| Maruichi
Steel Tube, Ltd. |
|
1,200
|
22,651
|
| MatsukiyoCocokara
& Co. |
|
900
|
32,768
|
| Mitsubishi
Chemical Group Corp. |
|
10,000
|
45,173
|
| Mitsubishi
Corp. |
|
2,200
|
59,596
|
| Mitsubishi
Electric Corp. |
|
2,600
|
22,876
|
| Mitsubishi
Estate Co., Ltd. |
|
7,600
|
95,572
|
| Mitsubishi
Gas Chemical Co., Inc. |
|
2,900
|
36,851
|
| Mitsubishi
UFJ Financial Group, Inc.(1)(5) |
|
28,900
|
136,519
|
| Mitsui
& Co., Ltd. |
|
1,400
|
30,981
|
| Mitsui
Chemicals, Inc. |
|
1,300
|
24,062
|
| Mitsui
Fudosan Co., Ltd. |
|
5,100
|
97,657
|
| Mizuho
Financial Group, Inc. |
|
8,230
|
89,011
|
| MS&AD
Insurance Group Holdings, Inc. |
|
1,800
|
47,666
|
| Murata
Manufacturing Co., Ltd. |
|
1,500
|
71,009
|
| NEC
Corp. |
|
1,500
|
49,651
|
| Nexon
Co., Ltd. |
|
3,000
|
50,203
|
| Nintendo
Co., Ltd. |
|
4,000
|
162,396
|
| Nippon
Accommodations Fund, Inc. |
|
8
|
34,067
|
| Nippon
Building Fund, Inc. |
|
11
|
48,898
|
| Nippon
Gas Co., Ltd. |
|
4,300
|
62,466
|
| Nippon
Paint Holdings Co., Ltd. |
|
10,100
|
64,367
|
| Nippon
Prologis REIT, Inc.(1) |
|
23
|
48,261
|
| Nippon
Shokubai Co., Ltd. |
|
600
|
21,522
|
| Nippon
Telegraph & Telephone Corp. |
|
5,000
|
137,903
|
| Nissan
Motor Co., Ltd. |
|
10,300
|
32,829
|
| Nisshin
Seifun Group, Inc. |
|
4,900
|
52,947
|
| Nissin
Foods Holdings Co., Ltd. |
|
700
|
45,310
|
| Nitto
Denko Corp. |
|
700
|
36,880
|
| NOF
Corp. |
|
800
|
27,517
|
| Nomura
Holdings, Inc. |
|
10,500
|
33,978
|
| Nomura
Research Institute, Ltd. |
|
2,000
|
44,260
|
| NTT
Data Corp. |
|
4,400
|
63,729 |
23
See Notes to Financial Statements.
Tax-Managed
International Equity Portfolio
October 31, 2022
Portfolio of
Investments — continued
| Security
|
Shares
|
Value
|
| Japan
(continued) |
| Obic
Co., Ltd. |
|
300
|
$ 45,019
|
| Oji
Holdings Corp. |
|
5,000
|
17,334
|
| Omron
Corp. |
|
800
|
37,311
|
| Ono
Pharmaceutical Co., Ltd. |
|
2,500
|
58,834
|
| Oriental
Land Co., Ltd. |
|
500
|
66,964
|
| Osaka
Gas Co., Ltd. |
|
5,500
|
81,442
|
| Otsuka
Holdings Co., Ltd. |
|
2,400
|
76,931
|
| Pan
Pacific International Holdings Corp. |
|
2,000
|
32,821
|
| PeptiDream,
Inc.(2) |
|
1,400
|
15,316
|
| Resona
Holdings, Inc. |
|
12,400
|
46,735
|
| Rinnai
Corp. |
|
600
|
40,839
|
| ROHM
Co., Ltd. |
|
200
|
14,053
|
| Rohto
Pharmaceutical Co., Ltd. |
|
1,800
|
55,994
|
| SECOM
Co., Ltd. |
|
600
|
34,182
|
| Sekisui
House, Ltd. |
|
2,000
|
33,206
|
| Seven
& i Holdings Co., Ltd.(1) |
|
1,800
|
67,191
|
| Shikoku
Electric Power Co., Inc. |
|
2,600
|
12,508
|
| Shimadzu
Corp. |
|
1,200
|
31,611
|
| Shimano,
Inc. |
|
300
|
46,423
|
| Shin-Etsu
Chemical Co., Ltd. |
|
1,600
|
166,288
|
| Shizuoka
Financial Group, Inc. |
|
5,800
|
36,626
|
| Showa
Denko K.K. |
|
1,600
|
23,358
|
| SMC
Corp. |
|
100
|
40,140
|
| SoftBank
Corp. |
|
11,800
|
116,400
|
| Sony
Group Corp. |
|
1,600
|
107,895
|
| Square
Enix Holdings Co., Ltd. |
|
700
|
31,235
|
| Subaru
Corp. |
|
2,400
|
37,514
|
| Sumitomo
Chemical Co., Ltd. |
|
10,900
|
36,703
|
| Sumitomo
Corp. |
|
1,600
|
20,342
|
| Sumitomo
Mitsui Financial Group, Inc. |
|
3,800
|
106,710
|
| Sumitomo
Mitsui Trust Holdings, Inc. |
|
1,500
|
43,154
|
| Sumitomo
Realty & Development Co., Ltd. |
|
2,600
|
59,628
|
| Suntory
Beverage & Food, Ltd. |
|
900
|
30,111
|
| Sysmex
Corp. |
|
500
|
26,912
|
| Takeda
Pharmaceutical Co., Ltd. |
|
5,000
|
132,045
|
| TDK
Corp. |
|
1,000
|
31,238
|
| TEIJIN,
Ltd. |
|
3,300
|
29,961
|
| Toho
Co., Ltd. |
|
500
|
17,779
|
| Tohoku
Electric Power Co., Inc. |
|
12,500
|
52,505
|
| Tokio
Marine Holdings, Inc. |
|
6,000
|
108,631
|
| Tokyo
Gas Co., Ltd. |
|
5,200
|
92,932
|
| Tokyu
Corp.(1) |
|
2,000
|
23,061
|
| Toppan,
Inc. |
|
2,000
|
29,828
|
| Toshiba
Corp. |
|
1,800
|
62,463
|
| Tosoh
Corp. |
|
2,200
|
23,935
|
| Toyo
Suisan Kaisha, Ltd. |
|
1,000
|
37,517 |
| Security
|
Shares
|
Value
|
| Japan
(continued) |
| Toyota
Industries Corp. |
|
400
|
$
20,606 |
| Toyota
Motor Corp. |
|
16,000
|
221,994
|
| Trend
Micro, Inc. |
|
600
|
30,254
|
| Unicharm
Corp. |
|
2,200
|
66,861
|
| Yakult
Honsha Co., Ltd.(1) |
|
1,400
|
77,558
|
| Yamato
Holdings Co., Ltd. |
|
2,000
|
29,619
|
| Yamato
Kogyo Co., Ltd. |
|
1,000
|
29,040
|
| Yamazaki
Baking Co., Ltd. |
|
3,800
|
38,719
|
| Z
Holdings Corp. |
|
11,200
|
28,904
|
| |
|
|
$ 7,815,388
|
| Netherlands
— 4.4% |
| ABN
AMRO Bank NV(3) |
|
2,263
|
$
22,247 |
| Aegon
NV |
|
12,248
|
56,698
|
| ASML
Holding NV(1) |
|
768
|
360,259
|
| ASR
Nederland NV |
|
1,620
|
71,333
|
| Corbion
NV(1) |
|
2,072
|
55,176
|
| Euronext
NV(3) |
|
576
|
36,558
|
| Flow
Traders NV(3) |
|
619
|
14,894
|
| IMCD
NV(1) |
|
840
|
108,943
|
| ING
Groep NV |
|
3,977
|
39,132
|
| JDE
Peet's NV |
|
1,640
|
46,945
|
| Just
Eat Takeaway.com NV(2)(3) |
|
2,956
|
50,725
|
| Koninklijke
Ahold Delhaize NV(1) |
|
9,251
|
257,994
|
| Koninklijke
DSM NV |
|
1,929
|
226,909
|
| Koninklijke
KPN NV |
|
80,454
|
225,038
|
| Koninklijke
Philips NV |
|
18,081
|
229,355
|
| Koninklijke
Vopak NV |
|
771
|
15,753
|
| NN
Group NV |
|
1,992
|
84,346
|
| NSI
NV |
|
1,000
|
23,910
|
| Prosus
NV |
|
5,634
|
243,624
|
| SBM
Offshore NV |
|
4,496
|
60,846
|
| Signify
NV(3) |
|
1,727
|
47,847
|
| Universal
Music Group NV(1) |
|
7,168
|
140,747
|
| Wolters
Kluwer NV |
|
2,003
|
212,836
|
| |
|
|
$ 2,632,115
|
| New
Zealand — 1.1% |
| a2
Milk Co., Ltd. (The)(1)(2) |
|
21,613
|
$
72,811 |
| Auckland
International Airport, Ltd.(2) |
|
12,240
|
54,718
|
| Contact
Energy, Ltd. |
|
9,580
|
42,022
|
| Fisher
& Paykel Healthcare Corp., Ltd. |
|
5,931
|
67,406
|
| Fletcher
Building, Ltd. |
|
7,381
|
22,039
|
| Goodman
Property Trust |
|
27,739
|
33,358
|
| Heartland
Group Holdings, Ltd.(1) |
|
19,544
|
19,414
|
| KMD
Brands, Ltd. |
|
27,332
|
17,159 |
24
See Notes to Financial Statements.
Tax-Managed
International Equity Portfolio
October 31, 2022
Portfolio of
Investments — continued
| Security
|
Shares
|
Value
|
| New
Zealand (continued) |
| Mercury
NZ, Ltd. |
|
13,643
|
$
46,131 |
| Pacific
Edge, Ltd.(2) |
|
33,981
|
8,490
|
| Precinct
Properties New Zealand, Ltd. |
|
39,851
|
28,589
|
| Pushpay
Holdings, Ltd.(2) |
|
16,676
|
12,096
|
| SKYCITY
Entertainment Group, Ltd.(2) |
|
40,446
|
68,190
|
| Spark
New Zealand, Ltd. |
|
29,667
|
88,312
|
| Vulcan
Steel, Ltd.(1) |
|
3,600
|
17,275
|
| Xero,
Ltd.(2) |
|
1,231
|
61,130
|
| |
|
|
$ 659,140
|
| Norway
— 2.2% |
| ArcticZymes
Technologies ASA(1)(2) |
|
4,268
|
$
27,498 |
| Atea
ASA |
|
6,274
|
69,814
|
| Autostore
Holdings, Ltd.(1)(2)(3) |
|
13,450
|
25,419
|
| Borregaard
ASA |
|
2,485
|
33,412
|
| DNB
Bank ASA |
|
6,189
|
109,464
|
| Entra
ASA(3) |
|
6,540
|
59,612
|
| Equinor
ASA |
|
3,918
|
142,747
|
| Europris
ASA(3) |
|
9,810
|
58,410
|
| Gjensidige
Forsikring ASA |
|
1,701
|
31,092
|
| Kongsberg
Gruppen ASA |
|
1,873
|
67,167
|
| Mowi
ASA |
|
4,027
|
60,106
|
| Nordic
Semiconductor ASA(2) |
|
4,420
|
62,398
|
| Norsk
Hydro ASA |
|
6,598
|
41,873
|
| Opera,
Ltd. ADR(1)(2) |
|
6,200
|
29,574
|
| Orkla
ASA |
|
8,207
|
55,358
|
| Salmar
ASA |
|
643
|
21,799
|
| Scatec
ASA(3) |
|
3,300
|
23,376
|
| Schibsted
ASA, Class B |
|
2,498
|
37,138
|
| SFL
Corp, Ltd. |
|
2,400
|
24,480
|
| SpareBank
1 SMN |
|
2,095
|
22,614
|
| Telenor
ASA |
|
14,322
|
130,156
|
| TOMRA
Systems ASA(1) |
|
2,450
|
39,571
|
| Veidekke
ASA |
|
3,671
|
30,534
|
| Yara
International ASA |
|
2,459
|
109,749
|
| |
|
|
$ 1,313,361
|
| Portugal
— 1.1% |
| Banco
Comercial Portugues S.A. |
|
634,436
|
$
90,391 |
| Corticeira
Amorim SGPS S.A. |
|
4,721
|
45,619
|
| CTT-Correios
de Portugal S.A. |
|
12,855
|
39,680
|
| EDP-Energias
de Portugal S.A. |
|
19,728
|
86,198
|
| Galp
Energia SGPS S.A., Class B |
|
11,338
|
115,116
|
| Jeronimo
Martins SGPS S.A. |
|
5,858
|
121,220
|
| Navigator
Co. S.A. (The) |
|
16,287
|
62,051 |
| Security
|
Shares
|
Value
|
| Portugal
(continued) |
| NOS
SGPS S.A. |
|
17,214
|
$
67,423 |
| REN
- Redes Energeticas Nacionais SGPS S.A. |
|
11,590
|
29,997
|
| |
|
|
$ 657,695
|
| Singapore
— 2.2% |
| CapitaLand
Ascendas REIT |
|
23,500
|
$
43,480 |
| CapitaLand
Investment, Ltd. |
|
11,500
|
24,456
|
| ComfortDelGro
Corp., Ltd. |
|
36,500
|
32,766
|
| Flex,
Ltd.(2) |
|
7,557
|
147,966
|
| Genting
Singapore, Ltd. |
|
108,600
|
61,758
|
| Keppel
Corp., Ltd. |
|
8,600
|
42,329
|
| Keppel
Infrastructure Trust |
|
106,657
|
39,911
|
| Mapletree
Industrial Trust |
|
18,060
|
28,082
|
| Mapletree
Logistics Trust(1) |
|
30,900
|
33,164
|
| Mapletree
Pan Asia Commercial Trust |
|
18,500
|
20,761
|
| Olam
Group, Ltd. |
|
33,100
|
31,337
|
| Oversea-Chinese
Banking Corp., Ltd. |
|
10,000
|
85,841
|
| Raffles
Medical Group, Ltd. |
|
38,400
|
36,079
|
| Sea,
Ltd. ADR(2) |
|
965
|
47,941
|
| Sembcorp
Industries, Ltd. |
|
21,400
|
43,991
|
| Singapore
Airlines, Ltd.(1)(2) |
|
14,800
|
54,898
|
| Singapore
Exchange, Ltd. |
|
7,000
|
41,626
|
| Singapore
Post, Ltd. |
|
26,100
|
9,966
|
| Singapore
Technologies Engineering, Ltd. |
|
19,500
|
45,461
|
| Singapore
Telecommunications, Ltd. |
|
42,000
|
73,951
|
| Suntec
Real Estate Investment Trust |
|
27,000
|
24,624
|
| United
Overseas Bank, Ltd. |
|
4,500
|
88,285
|
| UOL
Group, Ltd. |
|
4,600
|
20,092
|
| Venture
Corp., Ltd. |
|
5,000
|
56,267
|
| Wilmar
International, Ltd. |
|
58,400
|
159,990
|
| |
|
|
$ 1,295,022
|
| Spain
— 4.4% |
| Acerinox
S.A. |
|
6,807
|
$
59,657 |
| Aena
SME S.A.(2)(3) |
|
1,064
|
125,053
|
| Almirall
S.A. |
|
2,741
|
25,539
|
| Amadeus
IT Group S.A.(2) |
|
5,033
|
262,497
|
| Banco
Santander S.A.(1) |
|
70,803
|
183,626
|
| Bankinter
S.A.(1) |
|
12,265
|
74,191
|
| CaixaBank
S.A. |
|
15,438
|
51,193
|
| Cellnex
Telecom S.A.(3) |
|
4,799
|
157,072
|
| Cia
de Distribucion Integral Logista Holdings S.A. |
|
2,665
|
55,116
|
| Ebro
Foods S.A.(1) |
|
2,380
|
37,112
|
| Ercros
S.A. |
|
8,525
|
27,369
|
| Fluidra
S.A.(1) |
|
2,164
|
29,389
|
| Grifols
S.A.(1)(2) |
|
11,886
|
101,121 |
25
See Notes to Financial Statements.
Tax-Managed
International Equity Portfolio
October 31, 2022
Portfolio of
Investments — continued
| Security
|
Shares
|
Value
|
| Spain
(continued) |
| Iberdrola
S.A. |
|
28,912
|
$
294,014 |
| Indra
Sistemas S.A. |
|
3,340
|
29,872
|
| Industria
de Diseno Textil S.A.(1) |
|
13,126
|
297,937
|
| Laboratorios
Farmaceuticos Rovi S.A. |
|
1,773
|
80,640
|
| Merlin
Properties Socimi S.A. |
|
18,476
|
156,613
|
| Metrovacesa
S.A.(1)(3) |
|
2,645
|
18,713
|
| Red
Electrica Corp. S.A. |
|
2,456
|
39,728
|
| Repsol
S.A. |
|
23,523
|
320,018
|
| Siemens
Gamesa Renewable Energy S.A.(2) |
|
3,287
|
58,274
|
| Telefonica
S.A. |
|
22,919
|
79,006
|
| Viscofan
S.A. |
|
825
|
49,126
|
| |
|
|
$ 2,612,876
|
| Sweden
— 4.4% |
| AddLife
AB, Class B |
|
2,191
|
$
20,482 |
| Alfa
Laval AB |
|
2,000
|
49,231
|
| Arjo
AB, Class B |
|
8,801
|
35,107
|
| Assa
Abloy AB, Class B |
|
2,883
|
58,214
|
| Atlas
Copco AB, Class A(1) |
|
6,514
|
69,525
|
| Axfood
AB |
|
2,975
|
73,657
|
| Billerud
AB |
|
2,548
|
32,894
|
| BioGaia
AB, Class B |
|
4,605
|
36,493
|
| Biotage
AB |
|
1,896
|
31,120
|
| Boliden
AB |
|
2,274
|
66,130
|
| Castellum
AB(1) |
|
6,400
|
73,178
|
| Catena
AB |
|
932
|
31,653
|
| Electrolux
AB, Class B(1) |
|
3,051
|
37,641
|
| Elekta
AB, Class B |
|
5,121
|
26,029
|
| Embracer
Group AB(1)(2) |
|
9,503
|
45,716
|
| Epiroc
AB, Class A |
|
2,897
|
44,349
|
| Essity
AB, Class B |
|
8,378
|
177,013
|
| Evolution
AB(3) |
|
1,309
|
122,107
|
| Fabege
AB |
|
7,085
|
51,437
|
| Fingerprint
Cards AB, Class B(1)(2) |
|
29,632
|
14,016
|
| Getinge
AB, Class B |
|
4,555
|
92,434
|
| HMS
Networks AB |
|
1,113
|
28,636
|
| Holmen
AB, Class B |
|
2,532
|
91,887
|
| Hufvudstaden
AB, Class A |
|
2,401
|
28,612
|
| Husqvarna
AB, Class B |
|
3,790
|
22,502
|
| Industrivarden
AB, Class A |
|
1,060
|
24,007
|
| Industrivarden
AB, Class C |
|
1,534
|
34,447
|
| Investor
AB, Class A |
|
2,160
|
36,730
|
| Investor
AB, Class B |
|
5,782
|
94,366
|
| JM
AB |
|
2,031
|
30,580
|
| MIPS
AB(1) |
|
1,251
|
40,460
|
| Mycronic
AB |
|
2,681
|
42,076 |
| Security
|
Shares
|
Value
|
| Sweden
(continued) |
| Oatly
Group AB ADR(1)(2) |
|
7,600
|
$
16,720 |
| Orron
Energy AB |
|
4,713
|
9,777
|
| Sagax
AB, Class B |
|
3,417
|
62,966
|
| Securitas
AB, Class B |
|
1,900
|
15,524
|
| Skanska
AB, Class B |
|
1,238
|
19,253
|
| Spotify
Technology S.A.(2) |
|
1,272
|
102,498
|
| Svenska
Cellulosa AB SCA, Class B |
|
9,048
|
106,746
|
| Svenska
Handelsbanken AB, Class A |
|
7,120
|
66,152
|
| Swedbank
AB, Class A |
|
2,384
|
35,541
|
| Swedish
Orphan Biovitrum AB(2) |
|
3,003
|
55,313
|
| Tele2
AB, Class B |
|
5,717
|
46,857
|
| Telefonaktiebolaget
LM Ericsson, Class B |
|
25,375
|
141,068
|
| Telia
Co. AB(1) |
|
24,113
|
63,894
|
| Thule
Group AB(1)(3) |
|
1,277
|
25,158
|
| Truecaller
AB, Class B(1)(2) |
|
6,505
|
23,809
|
| Vitrolife
AB |
|
1,099
|
17,762
|
| Volvo
AB, Class B |
|
1,722
|
28,184
|
| Volvo
Car AB, Class B(1)(2) |
|
9,789
|
41,545
|
| Wallenstam
AB, Class B(1) |
|
7,080
|
24,979
|
| Wihlborgs
Fastigheter AB |
|
3,468
|
22,720
|
| |
|
|
$ 2,589,195
|
| Switzerland
— 8.7% |
| Allreal
Holding AG |
|
346
|
$
49,563 |
| ALSO
Holding AG |
|
245
|
38,506
|
| Baloise
Holding AG |
|
396
|
54,102
|
| Banque
Cantonale Vaudoise(1) |
|
570
|
50,727
|
| Belimo
Holding AG |
|
140
|
57,023
|
| BKW
AG |
|
330
|
38,499
|
| Bucher
Industries AG |
|
149
|
50,238
|
| Cembra
Money Bank AG |
|
670
|
48,588
|
| Cie
Financiere Richemont S.A. |
|
5,971
|
583,567
|
| DKSH
Holding AG |
|
773
|
55,765
|
| EMS-Chemie
Holding AG |
|
104
|
65,394
|
| Flughafen
Zurich AG(2) |
|
295
|
45,765
|
| Forbo
Holding AG |
|
26
|
31,474
|
| Geberit
AG |
|
263
|
116,913
|
| Givaudan
S.A. |
|
78
|
232,981
|
| Helvetia
Holding AG |
|
425
|
42,203
|
| Inficon
Holding AG |
|
86
|
68,380
|
| Intershop
Holding AG |
|
78
|
47,440
|
| Kuehne
& Nagel International AG(1) |
|
464
|
98,770
|
| Landis+Gyr
Group AG |
|
1,111
|
64,023
|
| LEM
Holding S.A. |
|
13
|
21,644
|
| Logitech
International S.A.(1) |
|
2,732
|
135,868
|
| Nestle
S.A. |
|
6,891
|
750,146 |
26
See Notes to Financial Statements.
Tax-Managed
International Equity Portfolio
October 31, 2022
Portfolio of
Investments — continued
| Security
|
Shares
|
Value
|
| Switzerland
(continued) |
| Novartis
AG |
|
4,292
|
$
347,183 |
| Roche
Holding AG PC |
|
1,075
|
356,683
|
| Roche
Holding AG, Bearer Shares |
|
147
|
59,666
|
| Schindler
Holding AG |
|
320
|
50,374
|
| Schindler
Holding AG PC(1) |
|
353
|
57,562
|
| Schweiter
Technologies AG |
|
45
|
30,148
|
| SGS
S.A. |
|
36
|
79,362
|
| SIG
Group AG |
|
5,783
|
111,167
|
| Sika
AG |
|
1,387
|
312,735
|
| Stadler
Rail AG(1) |
|
1,511
|
44,462
|
| Swatch
Group AG (The), Bearer Shares |
|
279
|
62,694
|
| Swiss
Life Holding AG |
|
139
|
67,307
|
| Swiss
Prime Site AG |
|
1,669
|
134,676
|
| Swiss
Re AG |
|
262
|
19,463
|
| Swisscom
AG |
|
418
|
206,404
|
| UBS
Group AG |
|
10,259
|
162,648
|
| Zehnder
Group AG |
|
691
|
37,213
|
| Zurich
Insurance Group AG |
|
683
|
291,077
|
| |
|
|
$ 5,178,403
|
| United
Kingdom — 8.7% |
| 3i
Group PLC |
|
3,933
|
$
52,381 |
| Admiral
Group PLC |
|
1,052
|
24,328
|
| Antofagasta
PLC |
|
4,694
|
63,254
|
| Assura
PLC |
|
34,782
|
22,285
|
| AstraZeneca
PLC |
|
4,331
|
508,165
|
| Auto
Trader Group PLC(3) |
|
12,550
|
75,121
|
| Aviva
PLC |
|
9,030
|
43,314
|
| BAE
Systems PLC |
|
8,600
|
80,441
|
| Bellway
PLC |
|
608
|
12,930
|
| Berkeley
Group Holdings PLC |
|
509
|
20,252
|
| Big
Yellow Group PLC |
|
2,400
|
30,882
|
| BP
PLC |
|
23,461
|
129,800
|
| British
American Tobacco PLC |
|
3,774
|
149,048
|
| BT
Group PLC |
|
34,771
|
51,817
|
| Bunzl
PLC |
|
1,400
|
45,620
|
| Burberry
Group PLC |
|
3,492
|
72,763
|
| Capricorn
Energy PLC(2) |
|
43,432
|
123,374
|
| Compass
Group PLC |
|
7,473
|
157,395
|
| Croda
International PLC |
|
729
|
56,475
|
| Derwent
London PLC |
|
1,020
|
25,244
|
| Direct
Line Insurance Group PLC |
|
9,041
|
20,889
|
| Diversified
Energy Co. PLC |
|
103,611
|
149,580
|
| DS
Smith PLC |
|
10,893
|
36,327
|
| Experian
PLC |
|
2,304
|
73,464
|
| Ferguson
PLC |
|
689
|
75,141 |
| Security
|
Shares
|
Value
|
| United
Kingdom (continued) |
| Fresnillo
PLC |
|
1,893
|
$
15,826 |
| Grainger
PLC |
|
11,835
|
30,772
|
| Great
Portland Estates PLC |
|
4,065
|
23,962
|
| Halma
PLC |
|
5,460
|
132,401
|
| Hikma
Pharmaceuticals PLC |
|
1,344
|
19,293
|
| Howden
Joinery Group PLC |
|
5,263
|
31,002
|
| HSBC
Holdings PLC |
|
21,374
|
109,692
|
| InterContinental
Hotels Group PLC |
|
751
|
40,352
|
| Intertek
Group PLC |
|
543
|
22,748
|
| Lloyds
Banking Group PLC |
|
135,333
|
64,996
|
| London
Stock Exchange Group PLC |
|
726
|
62,931
|
| LondonMetric
Property PLC |
|
11,374
|
24,391
|
| Marks
& Spencer Group PLC(2) |
|
30,532
|
36,977
|
| Mondi
PLC |
|
3,379
|
56,694
|
| Moneysupermarket.com
Group PLC |
|
7,023
|
14,773
|
| National
Grid PLC |
|
18,771
|
204,512
|
| NCC
Group PLC |
|
21,199
|
48,480
|
| Next
PLC |
|
582
|
32,871
|
| Noble
Corp. PLC |
|
779
|
27,689
|
| Pearson
PLC |
|
5,346
|
59,090
|
| Pennon
Group PLC |
|
2,714
|
26,081
|
| Persimmon
PLC |
|
2,761
|
41,315
|
| Phoenix
Group Holdings PLC |
|
5,262
|
32,751
|
| Primary
Health Properties PLC |
|
23,037
|
29,351
|
| QinetiQ
Group PLC |
|
8,311
|
34,257
|
| Reckitt
Benckiser Group PLC |
|
1,454
|
96,493
|
| RELX
PLC |
|
3,168
|
85,094
|
| Rentokil
Initial PLC |
|
5,526
|
34,483
|
| Rightmove
PLC |
|
13,046
|
73,465
|
| Rio
Tinto PLC |
|
3,415
|
178,473
|
| Safestore
Holdings PLC |
|
3,803
|
39,401
|
| Sage
Group PLC (The) |
|
15,349
|
127,930
|
| Segro
PLC |
|
8,635
|
77,715
|
| Severn
Trent PLC |
|
3,397
|
97,493
|
| Shell
PLC |
|
13,561
|
375,661
|
| Sirius
Real Estate, Ltd. |
|
24,045
|
19,453
|
| Spectris
PLC |
|
815
|
28,247
|
| Spirax-Sarco
Engineering PLC |
|
358
|
44,118
|
| Standard
Chartered PLC |
|
5,917
|
35,353
|
| Taylor
Wimpey PLC |
|
39,034
|
41,967
|
| Tesco
PLC |
|
31,547
|
77,917
|
| Tritax
Big Box REIT PLC |
|
37,589
|
60,441
|
| Unilever
PLC |
|
2,896
|
131,636
|
| United
Utilities Group PLC |
|
9,445
|
101,781
|
| Vodafone
Group PLC |
|
116,824
|
136,381
|
| |
|
|
$ 5,186,999
|
27
See Notes to Financial Statements.
Tax-Managed
International Equity Portfolio
October 31, 2022
Portfolio of
Investments — continued
| Security
|
Shares
|
Value
|
| United
States — 0.4% |
| Atlassian
Corp., Class A |
|
1,238
|
$
250,980 |
| |
|
|
$ 250,980
|
Total
Common Stocks
(identified cost $63,071,488) |
|
|
$59,220,154
|
| Short-Term
Investments — 4.0% |
| Security
|
Shares
|
Value
|
| Morgan
Stanley Institutional Liquidity Funds - Government Portfolio, Institutional Class, 2.88%(6) |
|
161,268
|
$
161,268 |
Total
Affiliated Fund
(identified cost $161,268) |
|
|
$ 161,268
|
| Securities
Lending Collateral — 3.7% |
| Security
|
Shares
|
Value
|
| State
Street Navigator Securities Lending Government Money Market Portfolio, 3.12%(7) |
|
2,195,222
|
$
2,195,222 |
Total
Securities Lending Collateral
(identified cost $2,195,222) |
|
|
$ 2,195,222
|
Total
Short-Term Investments
(identified cost $2,356,490) |
|
|
$ 2,356,490
|
| |
|
|
Total
Investments — 103.4%
(identified cost $65,427,978) |
|
|
$61,576,644
|
| Other
Assets, Less Liabilities — (3.4)% |
|
|
$
(1,999,753) |
| Net
Assets — 100.0% |
|
|
$59,576,891
|
| The
percentage shown for each investment category in the Portfolio of Investments is based on net assets. |
|
(1) |
All or
a portion of this security was on loan at October 31, 2022. The aggregate market value of securities on loan at October 31, 2022 was $4,507,859. |
|
(2) |
Non-income
producing security. |
|
(3) |
Security
exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be sold in certain transactions in reliance on an exemption from registration (normally to qualified institutional buyers). At October 31,
2022, the aggregate value of these securities is $2,037,750 or 3.4% of the Portfolio's net assets. |
|
(4) |
For fair
value measurement disclosure purposes, security is categorized as Level 3 (see Note 8). |
|
(5) |
Represents
an investment in an issuer that may be deemed to be an affiliate (see Note 7). |
|
(6) |
May
be deemed to be an affiliated investment company. The rate shown is the annualized seven-day yield as of October 31, 2022. |
|
(7) |
Represents
investment of cash collateral received in connection with securities lending. |
| Sector
Classification of Portfolio |
| Sector
|
Percentage
of Net Assets |
Value
|
| Financials
|
11.4%
|
$6,759,593
|
| Industrials
|
11.3
|
6,713,159
|
| Health
Care |
10.2
|
6,086,451
|
| Consumer
Discretionary |
10.2
|
6,061,781
|
| Consumer
Staples |
9.9
|
5,917,185
|
| Materials
|
9.2
|
5,461,985
|
| Information
Technology |
8.8
|
5,250,676
|
| Communication
Services |
8.3
|
4,961,230
|
| Utilities
|
7.0
|
4,186,434
|
| Real
Estate |
7.0
|
4,174,461
|
| Energy
|
6.1
|
3,647,199
|
| Short-Term
Investments |
4.0
|
2,356,490
|
| Total
Investments |
103.4%
|
$61,576,644
|
| Abbreviations:
|
| ADR
|
– American
Depositary Receipt |
| PC
|
– Participation
Certificate |
| PFC
Shares |
– Preference
Shares |
28
See Notes to Financial Statements.
Tax-Managed
International Equity Portfolio
October 31, 2022
Statement of
Assets and Liabilities
| |
October
31, 2022 |
| Assets
|
|
| Unaffiliated
investments, at value (identified cost $65,113,948) — including $4,507,859 of securities on loan |
$
61,278,857 |
| Affiliated
investments, at value (identified cost $314,030) |
297,787
|
| Foreign
currency, at value (identified cost $73,170) |
72,970
|
| Dividends receivable
|
97,508
|
| Dividends
receivable from affiliated investments |
3,809
|
| Receivable
for investments sold |
1,215,684
|
| Securities
lending income receivable |
2,486
|
| Tax
reclaims receivable |
158,951
|
| Total
assets |
$63,128,052
|
| Liabilities
|
|
| Collateral
for securities loaned |
$
2,195,222 |
| Payable
for investments purchased |
1,252,757
|
| Payable
to affiliates: |
|
| Investment
adviser fee |
24,797
|
| Trustees'
fees |
439
|
| Accrued
expenses |
77,946
|
| Total
liabilities |
$
3,551,161 |
| Net
Assets applicable to investors' interest in Portfolio |
$59,576,891
|
29
See Notes to Financial Statements.
Tax-Managed
International Equity Portfolio
October 31, 2022
| |
Year
Ended |
| |
October
31, 2022 |
| Investment
Income |
|
| Dividend
income (net of foreign taxes withheld of $269,195) |
$
2,030,837 |
| Dividend
income from affiliated investments (net of foreign taxes withheld of $1,098) |
8,061
|
| Securities
lending income, net |
43,535
|
| Total
investment income |
$
2,082,433 |
| Expenses
|
|
| Investment
adviser fee |
$
343,604 |
| Trustees’
fees and expenses |
4,856
|
| Custodian
fee |
61,088
|
| Legal
and accounting services |
60,464
|
| Miscellaneous
|
6,470
|
| Total
expenses |
$
476,482 |
| Deduct:
|
|
| Waiver
and/or reimbursement of expenses by affiliate |
$
179 |
| Total
expense reductions |
$
179 |
| Net
expenses |
$
476,303 |
| Net
investment income |
$
1,606,130 |
| Realized
and Unrealized Gain (Loss) |
|
| Net
realized gain (loss): |
|
| Investment
transactions |
$
(1,188,065) |
| Investment
transactions - affiliated investments |
(8,539)
|
| Foreign
currency transactions |
(30,499)
|
| Net
realized loss |
$
(1,227,103) |
| Change
in unrealized appreciation (depreciation): |
|
| Investments
|
$
(20,016,766) |
| Investments
- affiliated investments |
(18,787)
|
| Foreign
currency |
(24,528)
|
| Net
change in unrealized appreciation (depreciation) |
$(20,060,081)
|
| Net
realized and unrealized loss |
$(21,287,184)
|
| Net
decrease in net assets from operations |
$(19,681,054)
|
30
See Notes to Financial Statements.
Tax-Managed
International Equity Portfolio
October 31, 2022
Statements of
Changes in Net Assets
| |
Year
Ended October 31, |
| |
2022
|
2021
|
| Increase
(Decrease) in Net Assets |
|
|
| From
operations: |
|
|
| Net
investment income |
$
1,606,130 |
$
1,715,573 |
| Net
realized loss |
(1,227,103)
|
(639,164)
|
| Net
change in unrealized appreciation (depreciation) |
(20,060,081)
|
17,468,645
|
| Net
increase (decrease) in net assets from operations |
$(19,681,054)
|
$18,545,054
|
| Capital
transactions: |
|
|
| Contributions
|
$
11,445,206 |
$
4,433,462 |
| Withdrawals
|
(9,274,277)
|
(5,907,437)
|
| Net
increase (decrease) in net assets from capital transactions |
$
2,170,929 |
$
(1,473,975) |
| Net
increase (decrease) in net assets |
$(17,510,125)
|
$17,071,079
|
| Net
Assets |
|
|
| At
beginning of year |
$
77,087,016 |
$
60,015,937 |
| At
end of year |
$
59,576,891 |
$77,087,016
|
31
See Notes to Financial Statements.
Tax-Managed
International Equity Portfolio
October 31, 2022
| |
Year
Ended October 31, |
| Ratios/Supplemental
Data |
2022
|
2021
|
2020
|
2019
|
2018
|
| Ratios
(as a percentage of average daily net assets): |
|
|
|
|
|
| Expenses
|
0.69%
(1) |
0.68%
|
0.69%
|
0.74%
|
0.71%
|
| Net
investment income |
2.34%
|
2.31%
|
1.74%
|
2.53%
|
1.90%
|
| Portfolio
Turnover |
22%
|
23%
|
10%
|
37%
|
30%
|
| Total
Return |
(25.13)%
|
31.20%
|
(5.07)%
|
11.59%
|
(5.77)%
|
| Net
assets, end of year (000’s omitted) |
$59,577
|
$77,087
|
$60,016
|
$71,054
|
$68,042
|
|
(1) |
Includes
a reduction by the investment adviser of a portion of its adviser fee due to the Portfolio’s investment in the Liquidity Fund (equal to less than 0.005% of average daily net assets for the year ended October 31, 2022). |
32
See Notes to Financial Statements.
Tax-Managed
International Equity Portfolio
October 31, 2022
Notes to
Financial Statements
1 Significant Accounting Policies
Tax-Managed International Equity Portfolio (the Portfolio) is a
Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a diversified, open-end management investment company. The Portfolio’s investment objective is to achieve long-term, after-tax
returns by investing in a diversified portfolio of foreign equity securities. The Declaration of Trust permits the Trustees to issue interests in the Portfolio. At October 31, 2022, Parametric Tax-Managed International Equity Fund and Eaton Vance
Tax-Managed Equity Asset Allocation Fund held an interest of 56.3% and 43.7%, respectively, in the Portfolio.
The following is a summary of significant accounting policies
of the Portfolio. The policies are in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The Portfolio 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.
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 Portfolio's 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.
Other. Investments in
management investment companies (including money market funds) that do not trade on an exchange are valued at the net asset value as of the close of each business day.
Fair Valuation. In connection
with Rule 2a-5 of the 1940 Act, which became effective September 8, 2022, the Trustees have designated the Portfolio’s investment adviser as its valuation designee. Investments for which valuations or market quotations are not readily
available or are deemed unreliable are valued by the investment adviser, as valuation designee, at fair value using methods that most fairly reflect the security’s “fair value”, which is the amount that the Portfolio 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 security’s 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
company’s or entity’s 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 Portfolio is informed of the ex-dividend date. Withholding taxes on foreign dividends and capital gains have been provided for in accordance with the Portfolio's understanding of
the applicable countries’ tax rules and rates. In consideration of recent decisions rendered by European courts, the Portfolio has filed additional tax reclaims for previously withheld taxes on dividends earned in certain European Union
countries. These filings are subject to various administrative and judicial proceedings within these countries. Due to the uncertainty as to the ultimate resolution of these proceedings, the likelihood of receipt of these reclaims, and the potential
timing of payment, no amounts are reflected in the Portfolio's financial statements for such outstanding reclaims.
D Federal
Taxes—The Portfolio has elected to be treated as a partnership for federal tax purposes. No provision
is made by the Portfolio for federal or state taxes on any taxable income of the Portfolio because each investor in the Portfolio is ultimately responsible for the payment of any taxes on its share of taxable income. Since at least one of the
Portfolio's investors is a regulated investment company that invests all or substantially all of its assets in the Portfolio, the Portfolio normally must satisfy the applicable source of income and diversification requirements (under the Internal
Revenue Code) in order for its investors to satisfy them. The Portfolio will allocate, at least annually among its investors, each investor's distributive share of the Portfolio's net investment income, net realized capital gains and losses and any
other items of income, gain, loss, deduction or credit.
Tax-Managed
International Equity Portfolio
October 31, 2022
Notes to
Financial Statements — continued
As of
October 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. The Portfolio 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 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 Portfolio’s organizational documents, its officers and Trustees may be indemnified against
certain liabilities and expenses arising out of the performance of their duties to the Portfolio. Under Massachusetts law, if certain conditions prevail, interestholders in the Portfolio could be deemed to have personal liability for the obligations
of the Portfolio. However, the Portfolio’s Declaration of Trust contains an express disclaimer of liability on the part of Portfolio interestholders. Additionally, in the normal course of business, the Portfolio enters into agreements with
service providers that may contain indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet
occurred.
2 Investment Adviser Fee and
Other Transactions with Affiliates
The investment adviser
fee is earned by Boston Management and Research (BMR), an indirect, wholly-owned subsidiary of Morgan Stanley, as compensation for investment advisory services rendered to the Portfolio. The fee is computed at an annual rate as a percentage of the
Portfolio’s average daily net assets as follows and is payable monthly:
| Average
Daily Net Assets |
Annual
Fee Rate |
| Up
to $1 billion |
0.500%
|
| $1
billion but less than $2.5 billion |
0.475%
|
| $2.5
billion but less than $5 billion |
0.455%
|
| $5
billion and over |
0.440%
|
For the year ended October 31, 2022,
the investment adviser fee amounted to $343,604 or 0.50% of the Portfolio’s average daily net assets. Pursuant to an investment sub-advisory agreement, BMR has delegated the investment management of the Portfolio to Parametric Portfolio
Associates LLC (Parametric), an affiliate of BMR and an indirect, wholly-owned subsidiary of Morgan Stanley. BMR pays Parametric a portion of its investment adviser fee for sub-advisory services provided to the Portfolio. Effective April 26, 2022,
the Portfolio may invest in a money market fund, the Institutional Class of the Morgan Stanley Institutional Liquidity Funds - Government Portfolio (the “Liquidity Fund”), an open-end management investment company managed by Morgan
Stanley Investment Management Inc., a wholly-owned subsidiary of Morgan Stanley. The investment adviser fee paid by the Portfolio is reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Portfolio due
to its investment in the Liquidity Fund. For the year ended October 31, 2022, the investment adviser fee paid was reduced by $179 relating to the Portfolio's investment in the Liquidity Fund. Prior to April 26, 2022, the Portfolio may have invested
its cash in Eaton Vance Cash Reserves Fund, LLC (Cash Reserves Fund), an affiliated investment company managed by Eaton Vance Management (EVM), an affiliate of BMR. EVM did not receive a fee for advisory services provided to Cash Reserves
Fund.
Trustees and officers of the Portfolio who are
members of EVM’s or BMR’s organizations receive remuneration for their services to the Portfolio out of the investment adviser fee. Trustees of the Portfolio who are not affiliated with the investment adviser 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 October 31, 2022, no significant amounts have been deferred. Certain officers and Trustees of the Portfolio are
officers of the above organizations.
3 Purchases and Sales of Investments
Purchases and sales of investments, other than short-term
obligations, aggregated $19,145,338 and $15,208,814, respectively, for the year ended October 31, 2022.
Tax-Managed
International Equity Portfolio
October 31, 2022
Notes to
Financial Statements — continued
4 Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of
investments of the Portfolio at October 31, 2022, as determined on a federal income tax basis, were as follows:
| Aggregate
cost |
$
65,815,101 |
| Gross
unrealized appreciation |
$
7,316,815 |
| Gross
unrealized depreciation |
(11,555,272)
|
| Net
unrealized depreciation |
$
(4,238,457) |
5 Line of Credit
The Portfolio participates with other portfolios and funds
managed by EVM and its affiliates in a $725 million unsecured line of credit agreement with a group of banks, which is in effect through October 24, 2023. In connection with the renewal of the agreement on October 25, 2022, the borrowing limit was
decreased from $800 million. Borrowings are made by the Portfolio solely for temporary purposes related to redemptions and other short-term cash needs. Interest is charged to the Portfolio based on its borrowings at an amount above either the
Secured Overnight Financing Rate (SOFR) or Federal Funds rate. In addition, a fee computed at an annual rate of 0.15% on the daily unused portion of the line of credit is allocated among the participating portfolios and funds at the end of each
quarter. Also in connection with the renewal of the agreement, an arrangement fee totaling $150,000 was incurred that was allocated to the participating portfolios and funds. Because the line of credit is not available exclusively to the Portfolio,
it may be unable to borrow some or all of its requested amounts at any particular time. The Portfolio did not have any significant borrowings or allocated fees during the year ended October 31, 2022.
6 Securities Lending Agreement
The Portfolio has established a securities lending agreement
with State Street Bank and Trust Company (SSBT) as securities lending agent in which the Portfolio lends portfolio securities to qualified borrowers in exchange for collateral consisting of either cash or securities issued or guaranteed by the U.S.
government or its agencies or instrumentalities in an amount at least equal to the market value of the securities on loan. The market value of securities loaned is determined daily and any additional required collateral is delivered to the Portfolio
on the next business day. Cash collateral is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market fund registered under the 1940 Act. The Portfolio earns interest on the amount invested but it
must pay (and at times receive from) the broker a loan rebate fee computed as a varying percentage of the collateral received. For security loans secured by non-cash collateral, the Portfolio earns a negotiated lending fee from the borrower. A
portion of the income earned by the Portfolio from its investment of cash collateral, net of rebate fees, and lending fees received is allocated to SSBT for its services as lending agent and the portion allocated to the Portfolio is presented as
securities lending income, net on the Statement of Operations. Non-cash collateral is held by the lending agent on behalf of the Portfolio and cannot be sold or re-pledged by the Portfolio; accordingly, such collateral is not reflected in the
Statement of Assets and Liabilities.
The Portfolio is
subject to possible delay in the recovery of loaned securities. Pursuant to the securities lending agreement, SSBT has provided indemnification to the Portfolio in the event of default by a borrower with respect to a loan. The Portfolio bears the
risk of loss with respect to the investment of cash collateral.
At October 31, 2022, the value of the securities loaned and the
value of the collateral received, which exceeded the value of the securities loaned, amounted to $4,507,859 and $4,803,080, respectively. Collateral received was comprised of cash of $2,195,222 and U.S. government and/or agencies securities of
$2,607,858. The securities lending transactions have no contractual maturity date and each of the Portfolio and borrower has the option to terminate a loan at any time.
The following table provides a breakdown of securities lending
transactions accounted for as secured borrowings, the obligations by class of collateral pledged, and the remaining contractual maturity of those transactions as of October 31, 2022.
| |
Remaining
Contractual Maturity of the Transactions |
| |
Overnight
and
Continuous |
<30
days |
30
to 90 days |
>90
days |
Total
|
| Common
Stocks |
$2,195,222
|
$ —
|
$ —
|
$ —
|
$2,195,222
|
Tax-Managed
International Equity Portfolio
October 31, 2022
Notes to
Financial Statements — continued
The
carrying amount of the liability for collateral for securities loaned at October 31, 2022 approximated its fair value. If measured at fair value, such liability would have been considered as Level 2 in the fair value hierarchy (see Note 8) at
October 31, 2022.
7 Investments in Affiliated
Issuers and Funds
The Portfolio invested in issuers that
may be deemed to be affiliated with Morgan Stanley. At October 31, 2022, the value of the Portfolio's investment in affiliated issuers and funds was $297,787, which represents 0.5% of the Portfolio's net assets. Transactions in affiliated issuers
and funds by the Portfolio for the year ended October 31, 2022 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/Shares,
end of period |
| Common
Stocks |
| Mitsubishi
UFJ Financial Group, Inc. |
$176,569
|
$
51,306 |
$
(64,035) |
$
(8,534) |
$
(18,787) |
$
136,519 |
$
6,073 |
28,900
|
| Short-Term
Investments |
| Cash
Reserves Fund |
221,857
|
3,408,354
|
(3,630,206)
|
(5)
|
—
|
—
|
72
|
—
|
| Liquidity
Fund |
—
|
6,391,654
|
(6,230,386)
|
—
|
—
|
161,268
|
1,916
|
161,268
|
| Total
|
|
|
|
$(8,539)
|
$(18,787)
|
$297,787
|
$8,061
|
|
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 fund's own assumptions in determining the fair value of investments) |
In cases where the inputs used to measure fair value fall in
different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not
necessarily an indication of the risk associated with investing in those securities.
At October 31, 2022, the hierarchy of inputs used in valuing
the Portfolio's investments, which are carried at value, were as follows:
| Asset
Description |
Level
1 |
Level
2 |
Level
3* |
Total
|
| Common
Stocks: |
|
|
|
|
| Asia/Pacific
|
$
393,390 |
$
16,891,473 |
$
0 |
$
17,284,863 |
| Developed
Europe |
414,628
|
39,962,689
|
—
|
40,377,317
|
| Developed
Middle East |
189,888
|
1,117,106
|
—
|
1,306,994
|
| North
America |
250,980
|
—
|
—
|
250,980
|
| Total
Common Stocks |
$1,248,886
|
$57,971,268**
|
$
0 |
$59,220,154
|
| Short-Term
Investments: |
|
|
|
|
| Affiliated
Fund |
$
161,268 |
$
— |
$
— |
$
161,268 |
Tax-Managed
International Equity Portfolio
October 31, 2022
Notes to
Financial Statements — continued
| Asset
Description (continued) |
Level
1 |
Level
2 |
Level
3* |
Total
|
| Securities
Lending Collateral |
$
2,195,222 |
$
— |
$
— |
$
2,195,222 |
| Total
Investments |
$3,605,376
|
$57,971,268
|
$
0 |
$61,576,644
|
| *
|
None of the
unobservable inputs for Level 3 assets, individually or collectively, had a material impact on the Portfolio. |
| **
|
Includes
foreign equity securities whose values were adjusted to reflect market trading of comparable securities or other correlated instruments that occurred after the close of trading in their applicable foreign markets. |
Level 3 investments at the beginning and/or end of the period
were valued at $0 and accordingly, a reconciliation of Level 3 assets for the year ended October 31, 2022 is not presented.
9 Risks and Uncertainties
Risks Associated with Foreign Investments
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 United States companies are subject. Foreign markets may be smaller, less liquid and more volatile than the major markets in the United States. Trading in foreign markets
typically involves higher expense than trading in the United States. The Portfolio may have difficulties enforcing its legal or contractual rights in a foreign country. Securities that trade or are denominated in currencies other than the U.S.
dollar may be adversely affected by fluctuations in currency exchange rates.
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 of disease, 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, 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. Any such impact could adversely affect the Portfolio’s performance, or the performance of the securities in which the
Portfolio invests.
Tax-Managed
International Equity Portfolio
October 31, 2022
Report of
Independent Registered Public Accounting Firm
To the
Trustees and Investors of Tax-Managed International Equity Portfolio:
Opinion on the Financial Statements and Financial
Highlights
We have audited the accompanying statement of
assets and liabilities of Tax-Managed International Equity Portfolio (the “Portfolio”), including the portfolio of investments, as of October 31, 2022, 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 Portfolio as of October 31, 2022, 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 Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s 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 Portfolio 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 Portfolio 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 Portfolio’s 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 October 31, 2022, 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
December 20, 2022
We have served as the auditor of one
or more Eaton Vance investment companies since 1959.
Parametric
Tax-Managed International Equity Fund
October 31, 2022
Board of
Trustees’ Contract Approval
Overview of the Contract Review Process
The Investment Company Act of 1940, as amended (the “1940
Act”), provides, in substance, that the investment advisory agreement between a fund and its investment adviser will continue in effect from year-to-year only if its continuation is approved on an annual basis by a vote of the fund’s
board of trustees, including a majority of the trustees who are not “interested persons” of the fund (“independent trustees”), cast in person at a meeting called for the purpose of considering such approval.
At a meeting held on June 8, 2022, the Boards of
Trustees/Directors (collectively, the “Board”) that oversee the registered investment companies advised by Eaton Vance Management or its affiliate, Boston Management and Research (the “Eaton Vance Funds”), including a
majority of the independent trustees (the “Independent Trustees”), voted to approve the continuation of existing investment advisory agreements and sub-advisory
agreements1 for each of the Eaton Vance Funds for an additional one-year period. The Board relied upon the affirmative recommendation of its Contract Review Committee, which is
a committee exclusively comprised of Independent Trustees. Prior to making its recommendation, the Contract Review Committee reviewed information furnished by the adviser and sub-adviser to each of the Eaton Vance Funds (including information
specifically requested by the Board) for a series of formal meetings held between April and June 2022. Members of the Contract Review Committee also considered information received at prior meetings of the Board and its committees, to the extent
such information was relevant to the Contract Review Committee’s annual evaluation of the investment advisory agreements and sub-advisory agreements.
In connection with its evaluation of the investment advisory
agreements and sub-advisory agreements, the Board considered various information relating to the Eaton Vance Funds. This included information applicable to all or groups of Eaton Vance Funds, which is referenced immediately below, and information
applicable to the particular Eaton Vance Fund covered by this report (additional fund-specific information is referenced below under “Results of the Contract Review Process”). (For funds that invest through one or more underlying
portfolios, references to “each fund” in this section may include information that was considered at the portfolio-level.)
Information about Fees, Performance and Expenses
• A report from an independent
data provider comparing advisory and other fees paid by each fund to such fees paid by comparable funds, as identified by the independent data provider (“comparable funds”);
• A report from an independent
data provider comparing each fund’s total expense ratio (and its components) to those of comparable funds;
• A report from an independent
data provider comparing the investment performance of each fund (including, as relevant, total return data, income data, Sharpe ratios and information ratios) to the investment performance of comparable funds and, as applicable, benchmark indices,
over various time periods;
• In certain instances, data
regarding investment performance relative to customized groups of peer funds and blended indices identified by the adviser in consultation with the Portfolio Management Committee of the Board (a committee exclusively comprised of Independent
Trustees);
• Comparative
information concerning the fees charged and services provided by the adviser and sub-adviser to each fund in managing other accounts (which may include other mutual funds, collective investment funds and institutional accounts) using investment
strategies and techniques similar to those used in managing such fund(s), if any;
• Profitability analyses with
respect to the adviser and sub-adviser to each of the funds;
Information about Portfolio Management and Trading
• Descriptions of the investment
management services provided to each fund, as well as each of the funds’ investment strategies and policies;
• The procedures and processes
used to determine the value of fund assets, including, when necessary, the determination of “fair value” and actions taken to monitor and test the effectiveness of such procedures and processes;
• Information about the policies
and practices of each fund’s adviser and sub-adviser with respect to trading, including their processes for seeking best execution of portfolio transactions;
• Information about the
allocation of brokerage transactions and the benefits, if any, received by the adviser and sub-adviser to each fund as a result of brokerage allocation, including, as applicable, information concerning the acquisition of research through client
commission arrangements and policies with respect to “soft dollars”;
• Data relating to the portfolio
turnover rate of each fund and related information regarding active management in the context of particular strategies;
Information about each Adviser and Sub-adviser
• Reports detailing the
financial results and condition of the adviser and sub-adviser to each fund;
• Information regarding the
individual investment professionals whose responsibilities include portfolio management and investment research for the funds, and, for portfolio managers and certain other investment professionals, information relating to their responsibilities
with respect to managing other mutual funds and investment accounts, as applicable;
1 Not all Eaton Vance Funds have entered into a sub-advisory agreement with a sub-adviser. Accordingly,
references to “sub-adviser” or “sub-advisory agreement” in this “Overview” section may not be applicable to the particular Eaton Vance Fund covered by this report. Following the “Overview” section,
further information regarding the Board’s evaluation of a fund’s contractual arrangements is included under the “Results of the Contract Review Process” section.
Parametric
Tax-Managed International Equity Fund
October 31, 2022
Board of
Trustees’ Contract Approval — continued
• Information regarding the
adviser’s and its parent company’s (Morgan Stanley’s) efforts to retain and attract talented investment professionals, including in the context of a particularly competitive marketplace for talent, as well as the ongoing unique
environment presented by hybrid, remote and other alternative work arrangements;
• The Code of Ethics of the
adviser and its affiliates and the sub-adviser of each fund, together with information relating to compliance with, and the administration of, such codes;
• Policies and procedures
relating to proxy voting, including regular reporting with respect to fund proxy voting activities;
• Information regarding the
handling of corporate actions and class actions, as well as information regarding litigation and other regulatory matters;
• Information concerning the
resources devoted to compliance efforts undertaken by the adviser and its affiliates and the sub-adviser of each fund, if any, including descriptions of their various compliance programs and their record of compliance;
• Information concerning the
business continuity and disaster recovery plans of the adviser and its affiliates and the sub-adviser of each fund, if any;
• A description of Eaton Vance
Management’s and Boston Management and Research’s oversight of sub-advisers, including with respect to regulatory and compliance issues, investment management and other matters;
Other Relevant Information
• Information regarding
ongoing initiatives to further integrate and harmonize, where applicable, the investment management and other departments of the adviser and its affiliates with the overall investment management infrastructure of Morgan Stanley, in light of Morgan
Stanley’s acquisition of Eaton Vance on March 1, 2021;
• Information concerning the
nature, cost and character of the administrative and other non-investment advisory services provided by Eaton Vance Management and its affiliates;
• Information concerning
oversight of the relationship with the custodian, subcustodians, fund accountants, and other third-party service providers by the adviser and/or administrator to each of the funds;
• Information concerning efforts
to implement policies and procedures with respect to various new regulations applicable to the funds, including Rule 12d1-4 (the Fund-of-Funds Rule), Rule 18f-4 (the Derivatives Rule) and Rule 2a-5 (the Fair Valuation Rule);
• For an Eaton Vance Fund
structured as an exchange-listed closed-end fund, information concerning the benefits of the closed-end fund structure, as well as, where relevant, the closed-end fund’s market prices (including as compared to the closed-end fund’s net
asset value (NAV)), trading volume data, continued use of auction preferred shares (where applicable), distribution rates and other relevant matters;
• The risks which the adviser
and/or its affiliates incur in connection with the management and operation of the funds, including, among others, litigation, regulatory, entrepreneurial, and other business risks (and the associated costs of such risks); and
• The terms of each investment
advisory agreement and sub-advisory agreement.
During the
various meetings of the Board and its committees over the course of the year leading up to the June 8, 2022 meeting, the Trustees received information from portfolio managers and other investment professionals of the advisers and sub-advisers of the
funds regarding investment and performance matters, and considered various investment and trading strategies used in pursuing the funds’ investment objectives. The Trustees also received information regarding risk management techniques
employed in connection with the management of the funds. The Board and its committees evaluated issues pertaining to industry and regulatory developments, compliance procedures, fund governance and other issues with respect to the funds, and
received and participated in reports and presentations provided by Eaton Vance Management, Boston Management and Research and fund sub-advisers, with respect to such matters. In addition to the formal meetings of the Board and its committees, the
Independent Trustees held regular teleconferences to discuss, among other topics, matters relating to the continuation of investment advisory agreements and sub-advisory agreements.
The Contract Review Committee was advised throughout the
contract review process by Goodwin Procter LLP, independent legal counsel for the Independent Trustees. The members of the Contract Review Committee, with the advice of such counsel, exercised their own business judgment in determining the material
factors to be considered in evaluating each investment advisory agreement and sub-advisory agreement and the weight to be given to each such factor. The conclusions reached with respect to each investment advisory agreement and sub-advisory
agreement were based on a comprehensive evaluation of all the information provided and not any single factor. Moreover, each member of the Contract Review Committee may have placed varying emphasis on particular factors in reaching conclusions with
respect to each investment advisory agreement and sub-advisory agreement. In evaluating each investment advisory agreement and sub-advisory agreement, including the fee structures and other terms contained in such agreements, the members of the
Contract Review Committee were also informed by multiple years of analysis and discussion with the adviser and sub-adviser to each of the Eaton Vance Funds.
Results of the Contract Review Process
Based on its consideration of the foregoing, and such other
information it deemed relevant, including the factors and conclusions described below, the Contract Review Committee concluded that the continuation of the investment advisory agreement between Parametric Tax-Managed International Equity Fund (the
“Fund”) and Eaton Vance Management (“EVM”), as well as the investment advisory agreement between Tax-Managed International Equity Portfolio (the “Portfolio”), the portfolio in which the Fund invests, and Boston
Management and Research (“BMR”) (EVM, with respect to the Fund, and BMR, with respect to the Portfolio, are each referred to herein as the “Adviser”), and the sub-advisory agreement between EVM and Parametric Portfolio
Associates LLC (the “Sub-adviser”), an affiliate of the Advisers, with respect to the Fund, and the sub-advisory agreement between BMR and the Sub-adviser, with respect to the Portfolio, including their respective fee structures, are in
the interests of shareholders and, therefore, recommended to the
Parametric
Tax-Managed International Equity Fund
October 31, 2022
Board of
Trustees’ Contract Approval — continued
Board approval of
each agreement. Based on the recommendation of the Contract Review Committee, the Board, including a majority of the Independent Trustees, voted to approve continuation of the investment advisory agreements for the Fund and the Portfolio (together,
the “investment advisory agreements”) and sub-advisory agreements for the Fund and the Portfolio (together, the “sub-advisory agreements”).
Nature, Extent and Quality of Services
In considering whether to approve the investment advisory
agreements and sub-advisory agreements for the Fund and the Portfolio, the Board evaluated the nature, extent and quality of services provided to the Fund and to the Portfolio by the applicable Adviser and the Sub-adviser, respectively.
The Board considered each Adviser’s and the
Sub-adviser’s management capabilities and investment processes in light of the types of investments held by the Fund and the Portfolio, including the education, experience and number of investment professionals and other personnel who provide
portfolio management, investment research, and similar services to the Portfolio. Regarding each Adviser, the Board considered such Adviser’s responsibilities with respect to oversight of the Sub-adviser. The Board also considered each
Adviser’s in-house equity research capabilities and experience in managing funds that seek to maximize after-tax returns. With respect to the Sub-adviser, the Board considered the Sub-adviser’s experience in deploying quantitative-based
investment strategies. The Board also took into account the resources dedicated to portfolio management and other services, the compensation methods of each Adviser and other factors, including the reputation and resources of each Adviser to recruit
and retain highly qualified research, advisory and supervisory investment professionals. In addition, the Board considered the time and attention devoted to the Eaton Vance Funds, including the Fund and the Portfolio, by senior management, as well
as the infrastructure, operational capabilities and support staff in place to assist in the portfolio management and operations of the Fund and the Portfolio, including the provision of administrative services. The Board also considered the
business-related and other risks to which each Adviser or its affiliates may be subject in managing the Fund and the Portfolio.
The Board noted that, under the terms of the investment
advisory agreement of the Fund, EVM may invest assets of the Fund directly in securities, for which it would receive a fee, or in the Portfolio, for which it receives no separate fee but for which BMR receives an advisory fee from the
Portfolio.
The Board considered the compliance programs
of each Adviser and relevant affiliates thereof, including the Sub-adviser. The Board considered compliance and reporting matters regarding, among other things, personal trading by investment professionals, disclosure of portfolio holdings, late
trading, frequent trading, portfolio valuation, business continuity and the allocation of investment opportunities. The Board also considered the responses of each Adviser and its affiliates to requests in recent years from regulatory authorities,
such as the Securities and Exchange Commission and the Financial Industry Regulatory Authority.
The Board considered other administrative services provided or
overseen by EVM and its affiliates, including transfer agency and accounting services. The Board evaluated the benefits to shareholders of investing in a fund that is a part of a large fund complex offering exposure to a variety of asset classes and
investment disciplines, as well as the ability, in many cases, to exchange an investment among different funds without incurring additional sales charges.
After consideration of the foregoing factors, among others, the
Board concluded that the nature, extent and quality of services provided by each Adviser and the Sub-adviser, taken as a whole, are appropriate and consistent with the terms of the applicable investment advisory agreement and the applicable
sub-advisory agreement.
Fund Performance
The Board compared the Fund’s investment performance to
that of comparable funds identified by an independent data provider (the peer group), as well as an appropriate benchmark index. The Board’s review included comparative performance data with respect to the Fund for the one-, three-, five- and
ten-year periods ended December 31, 2021. In this regard, the Board noted that the performance of the Fund was consistent with the median performance of the Fund’s peer group for the three-year period. The Board also noted that the performance
of the Fund was lower than its benchmark index for the three-year period. The Board concluded that the performance of the Fund was satisfactory.
Management Fees and Expenses
The Board considered contractual fee rates payable by the
Portfolio and by the Fund for advisory and administrative services (referred to collectively as “management fees”). As part of its review, the Board considered the Fund’s management fees and total expense ratio for the one-year
period ended December 31, 2021, as compared to those of comparable funds, before and after giving effect to any undertaking to waive fees or reimburse expenses. The Board also considered factors that had an impact on the Fund’s total expense
ratio relative to comparable funds.
After considering the
foregoing information, and in light of the nature, extent and quality of the services provided by each Adviser and the Sub-adviser, the Board concluded that the management fees charged for advisory and related services are reasonable.
Profitability and “Fall-Out” Benefits
The Board considered the level of profits realized by each
Adviser and relevant affiliates thereof, including the Sub-adviser, in providing investment advisory and administrative services to the Fund, to the Portfolio and to all Eaton Vance Funds as a group. The Board considered the level of profits
realized without regard to marketing support or other payments by each Adviser and its affiliates to third parties in respect of distribution or other services.
Parametric
Tax-Managed International Equity Fund
October 31, 2022
Board of
Trustees’ Contract Approval — continued
The
Board concluded that, in light of the foregoing factors and the nature, extent and quality of the services rendered, the profits realized by each Adviser and its affiliates, including the Sub-adviser, are deemed not to be excessive.
The Board also considered direct or indirect fall-out benefits
received by each Adviser and its affiliates, including the Sub-adviser, in connection with their respective relationships with the Fund and the Portfolio, including the benefits of research services that may be available to each Adviser or the
Sub-adviser as a result of securities transactions effected for the Fund and the Portfolio and other investment advisory clients.
Economies of Scale
In reviewing management fees and profitability, the Board also
considered the extent to which the applicable Adviser and its affiliates, on the one hand, and the Fund and the Portfolio, on the other hand, can expect to realize benefits from economies of scale as the assets of the Fund and the Portfolio
increase. The Board acknowledged the difficulty in accurately measuring the benefits resulting from economies of scale, if any, with respect to the management of any specific fund or group of funds. The Board reviewed data summarizing the increases
and decreases in the assets of the Fund and of all Eaton Vance Funds as a group over various time periods, and evaluated the extent to which the total expense ratio of the Fund and the profitability of each Adviser and its affiliates may have been
affected by such increases or decreases. Based upon the foregoing, the Board concluded that the Fund currently shares in the benefits from economies of scale, if any, when they are realized by each Adviser. The Board also concluded that the
structure of the advisory fees, which include breakpoints at several asset levels, will allow the Fund and the Portfolio to continue to benefit from any economies of scale in the future.
Parametric
Tax-Managed International Equity Fund
October 31, 2022
Liquidity Risk
Management Program
The
Fund has implemented a written liquidity risk management program (Program) and related procedures to manage its liquidity in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (Liquidity Rule). The Liquidity Rule defines
“liquidity risk” as the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of the remaining investors’ interests in the fund. The Fund’s Board of Trustees/Directors has
designated the investment adviser to serve as the administrator of the Program and the related procedures. The administrator has established a Liquidity Risk Management Oversight Committee (Committee) to perform the functions necessary to administer
the Program. As part of the Program, the administrator is responsible for identifying illiquid investments and categorizing the relative liquidity of the Fund’s investments in accordance with the Liquidity Rule. Under the Program, the
administrator assesses, manages, and periodically reviews the Fund’s liquidity risk, and is responsible for making certain reports to the Fund’s Board of Trustees/Directors and the Securities and Exchange Commission (SEC) regarding the
liquidity of the Fund’s investments, and to notify the Board of Trustees/Directors and the SEC of certain liquidity events specified in the Liquidity Rule. The liquidity of the Fund’s portfolio investments is determined based on a number
of factors including, but not limited to, relevant market, trading and investment-specific considerations under the Program.
At a meeting of the Fund’s Board of Trustees/Directors on
June 7, 2022, the Committee provided a written report to the Fund’s Board of Trustees/Directors pertaining to the operation, adequacy, and effectiveness of implementation of the Program, as well as the operation of the highly liquid investment
minimum (if applicable) for the period January 1, 2021 through December 31, 2021 (Review Period). The Program operated effectively during the Review Period, supporting the administrator’s ability to assess, manage and monitor Fund liquidity
risk, including during periods of market volatility and net redemptions. During the Review Period, the Fund met redemption requests on a timely basis.
There can be no assurance that the Program will achieve its
objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.
Parametric
Tax-Managed International Equity Fund
October 31, 2022
Management and
Organization
Fund
Management. The Trustees of Eaton Vance Mutual Funds Trust (the Trust) and Tax-Managed International Equity Portfolio (the Portfolio) are responsible for the overall management and supervision of the Trust's and the
Portfolio's affairs. The Board members and officers of the Trust and the Portfolio 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. Board members hold
indefinite terms of office. Each Trustee holds office until his or her successor is elected and qualified, subject to a prior death, resignation, retirement, disqualification or removal. Under the terms of the Fund's and the Portfolio's 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 and the Portfolio to be out of compliance with Section 16 of the 1940 Act or any other regulations or guidance of the SEC, then such retirement and resignation
will not become effective until such time as action has been taken for the Fund and the Portfolio to be in compliance therewith. The “noninterested Trustees” consist of those Trustees who are not “interested persons” of the
Trust and the Portfolio, 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 135 funds (with the exception of Mr. Bowser who oversees 110 funds) in the Eaton Vance fund complex (including both funds and portfolios in a hub and spoke structure).
| Name
and Year of Birth |
Trust/Portfolio
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 |
Trustee
|
Since
2007 |
Chairman
of Morgan Stanley Investment Management, Inc. (MSIM), member of the Board of Managers and President of EV (since 2021), Chief Executive Officer of EVM and BMR. Formerly, Chairman, Chief Executive Officer (2007-2021) and President (2006-2021) of EVC
and Director of EVD (2007-2022). Mr. Faust is an interested person because of his positions with EVM, BMR, EVC and EV, which are affiliates of the Trust and the Portfolio.
Other Directorships. Formerly,
Director of EVC (2007-2021) and Hexavest Inc. (investment management firm) (2012-2021). |
| Noninterested Trustees
|
Alan
C. Bowser(1)
1962 |
Trustee
|
Since
2022 |
Chief
Diversity Officer, Partner and a member of the Operating Committee, and formerly served as Senior Advisor on Diversity and Inclusion for the firm’s chief executive officer, Co-Head of the Americas Region, and Senior Client Advisor of
Bridgewater Associates, an asset management firm (2011- present).
Other Directorships. None. |
Mark
R. Fetting
1954 |
Trustee
|
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 |
Trustee
|
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 Trustee |
Since
2021
(Chairperson) and 2014 (Trustee) |
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. |
Parametric
Tax-Managed International Equity Fund
October 31, 2022
Management and
Organization — continued
| Name
and Year of Birth |
Trust/Portfolio
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 |
Trustee
|
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 Envestnet, Inc. (provider of intelligent systems for wealth management and
financial wellness) (since 2018). Formerly, Director of Dynex Capital, Inc. (mortgage REIT) (2013-2020) and Director of Groupon, Inc. (e-commerce provider) (2020-2022). |
Keith
Quinton
1958 |
Trustee
|
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 |
Trustee
|
Since
2018 |
Private investor
and independent corporate director. Formerly, Chief Investment Officer, Canada (2012-2017), Chief Investment Officer, Asia (2010-2012), Director of Asian Research (2004-2010) and portfolio manager (2001-2017) at MFS Investment Management
(investment management firm).
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 |
Trustee
|
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 |
Trustee
|
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. |
Nancy
A. Wiser(1)
1967 |
Trustee
|
Since
2022 |
Formerly,
Executive Vice President and the Global Head of Operations at Wells Fargo Asset Management (2011-2021).
Other Directorships. None. |
| Name
and Year of Birth |
Trust/Portfolio
Position(s) |
Length
of Service |
Principal
Occupation(s)
During Past Five Years |
| Principal
Officers who are not Trustees |
Eric
A. Stein
1980 |
President
of the Trust |
Since
2020 |
Vice
President and Chief Investment Officer, Fixed Income of EVM and BMR. Prior to November 1, 2020, Mr. Stein was a co-Director of Eaton Vance’s Global Income Investments. Also Vice President of Calvert Research and Management (“CRM”).
|
Edward
J. Perkin
1971 |
President
of the Portfolio |
Since
2014 |
Chief
Equity Investment Officer and Vice President of EVM and BMR since 2014. Also Vice President of CRM. |
Deidre
E. Walsh
1971 |
Vice
President and Chief Legal Officer |
Since
2009 |
Vice
President of EVM and BMR. Also Vice President of CRM. |
Parametric
Tax-Managed International Equity Fund
October 31, 2022
Management and
Organization — continued
| Name
and Year of Birth |
Trust/Portfolio
Position(s) |
Length
of Service |
Principal
Occupation(s)
During Past Five Years |
| Principal
Officers who are not Trustees (continued) |
James
F. Kirchner
1967 |
Treasurer
|
Since
2007 |
Vice
President of EVM and BMR. Also Vice President of CRM. |
Nicholas
Di Lorenzo
1987 |
Secretary
|
Since
2022 |
Formerly,
associate (2012-2021) and counsel (2022) at Dechert LLP. |
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).
|
(1) Mr. Bowser and Ms. Wiser began serving as Trustees effective April 4, 2022.
The SAI for the Fund includes additional information about the
Trustees and officers of the Fund and the Portfolio and can be obtained without charge on Eaton Vance’s website at www.eatonvance.com or by calling 1-800-260-0761.
| 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
don’t 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
don’t share |
| For
our investment management affiliates to market to you |
Yes
|
Yes
|
| For
our affiliates to market to you |
No
|
We
don’t share |
| For
nonaffiliates to market to you |
No
|
We
don’t share |
To
limit our
sharing |
Call
toll-free 1-800-262-1122 or email: EVPrivacy@eatonvance.comPlease 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 |
| 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 Management’s 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 informationWe also collect your personal information from others, such as credit bureaus, affiliates, or other companies. |
| Why
can’t 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 youState 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 doesn’t 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. |
Delivery of Shareholder Documents. The Securities and Exchange Commission (SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and
shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called “householding” and it helps eliminate duplicate mailings to shareholders. Eaton Vance, or your financial intermediary, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial intermediary, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-260-0761, or contact 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 Eaton Vance 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 1-800-260-0761 or in the EDGAR database on the SEC’s 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 1-800-260-0761 and by accessing the SEC’s website at www.sec.gov.
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Investment Adviser of Tax-Managed International Equity Portfolio
Boston Management and Research
Two International Place
Boston, MA 02110
Investment Sub-Adviser of Parametric Tax-Managed
International
Equity Fund and Tax-Managed International Equity Portfolio
Parametric Portfolio Associates LLC
800 Fifth Avenue, Suite 2800
Seattle, WA 98104
Investment Adviser and Administrator of Parametric
Tax-Managed
International Equity Fund
Eaton Vance
Management
Two International Place
Boston, MA 02110
Principal Underwriter*
Eaton Vance Distributors, Inc.
Two International Place
Boston, MA 02110
(617) 482-8260
Custodian
State Street Bank and Trust Company
State Street Financial Center, One Lincoln Street
Boston, MA 02111
Transfer Agent
BNY Mellon Investment Servicing (US) Inc.
Attn: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02940-9653
(800) 260-0761
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116-5022
Fund Offices
Two International Place
Boston, MA 02110
*FINRA BrokerCheck. Investors may check the background of their Investment Professional by contacting the Financial Industry Regulatory Authority (FINRA). FINRA BrokerCheck is a free tool to help investors check the
professional background of current and former FINRA-registered securities firms and brokers. FINRA BrokerCheck is available by calling 1-800-289-9999 and at www.FINRA.org. The FINRA BrokerCheck brochure describing this program is available to
investors at www.FINRA.org.
Item 2. Code of Ethics
The registrant (sometimes referred to as the “Fund”) has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial
Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. The registrant has not amended the code of ethics as described in Form N-CSR during the period covered by this report. The registrant has not
granted any waiver, including an implicit waiver, from a provision of the code of ethics as described in Form N-CSR during the period covered by this report.
Item 3. Audit Committee Financial Expert
The
registrant’s Board of Trustees (the “Board”) has designated George J. Gorman and Scott E. Wennerholm, each an independent trustee, as audit committee financial experts. Mr. Gorman is a certified public accountant who is the
Principal at George J. Gorman LLC (a consulting firm). Previously, Mr. Gorman served in various capacities at Ernst & Young LLP (a registered public accounting firm), including as Senior Partner. Mr. Gorman also has experience
serving as an independent trustee and audit committee financial expert of other
mutual fund complexes. Mr. Wennerholm is a private investor. Previously, Mr. Wennerholm served as a Trustee at Wheelock College (postsecondary institution), as a Consultant at GF Parish
Group (executive recruiting firm), Chief Operating Officer and Executive Vice President at BNY Mellon Asset Management (investment management firm), Chief Operating Officer and Chief Financial Officer at Natixis Global Asset Management (investment
management firm), and Vice President at Fidelity Investments Institutional Services (investment management firm).
Item 4. Principal Accountant
Fees and Services
(a)-(d)
The following table presents
the aggregate fees billed to the registrant for the registrant’s fiscal years ended October 31, 2021 and October 31, 2022 by the registrant’s principal accountant, Deloitte & Touche LLP (“D&T”), for
professional services rendered for the audit of the registrant’s annual financial statements and fees billed for other services rendered by D&T during such periods.
|
|
|
|
|
|
|
|
|
| Fiscal Years Ended |
|
10/31/21 |
|
|
10/31/22 |
|
| Audit Fees |
|
$ |
36,100 |
|
|
$ |
40,200 |
|
| Audit-Related Fees(1) |
|
$ |
0 |
|
|
$ |
0 |
|
| Tax Fees(2) |
|
$ |
15,975 |
|
|
$ |
0 |
|
| All Other Fees(3) |
|
$ |
0 |
|
|
$ |
0 |
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
52,075 |
|
|
$ |
40,200 |
|
|
|
|
|
|
|
|
|
|
| (1) |
Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably
related to the performance of the audit of the registrant’s financial statements and are not reported under the category of audit fees. |
| (2) |
Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant
relating to tax compliance, tax advice, and tax planning and specifically include fees for tax return preparation and other related tax compliance/planning matters. |
| (3) |
All other fees consist of the aggregate fees billed for products and services provided by the principal
accountant other than audit, audit-related, and tax services. |
(e)(1) The registrant’s audit committee has adopted policies and
procedures relating to the pre-approval of services provided by the registrant’s principal accountant (the “Pre-Approval Policies”). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and
(ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees.
Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the Audit
Committee.
The Pre-Approval Policies and the types of audit and non-audit
services pre-approved therein must be reviewed and ratified by the registrant’s audit committee at least annually. The registrant’s audit committee maintains full responsibility for the appointment,
compensation, and oversight of the work of the registrant’s principal accountant.
(e)(2) No services described in paragraphs (b)-(d) above were
approved by the registrant’s audit committee pursuant to the “de minimis exception” set forth in Rule 2-01 (c)(7)(i)(C) of Regulation S-X.
(f) Not applicable.
(g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other
services) billed to the registrant by D&T for the registrant’s fiscal years ended October 31, 2021 and October 31, 2022; and (ii) the aggregate non-audit fees (i.e., fees for
audit-related, tax, and other services) billed to the Eaton Vance organization by D&T for the same time periods.
|
|
|
|
|
|
|
|
|
| Fiscal Years Ended |
|
10/31/21 |
|
|
10/31/22 |
|
| Registrant |
|
$ |
15,975 |
|
|
$ |
0 |
|
| Eaton Vance(1) |
|
$ |
51,800 |
|
|
$ |
52,836 |
|
| (1) |
Certain entities that provide ongoing services to the registrant are subsidiaries of Morgan Stanley
|
(h) The registrant’s audit committee has considered whether the provision by the registrant’s principal accountant of non-audit services to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant’s
independence.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form
N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for
Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities
by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
No material changes.
Item 11. Controls and Procedures
(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s
current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has
been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the
registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There
have been no changes in the registrant’s internal controls over financial reporting during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over
financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies
Not applicable.
Item 13.
Exhibits
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
|
|
|
| Tax-Managed International Equity Portfolio |
|
|
| By: |
|
/s/ Edward J. Perkin |
|
|
Edward J. Perkin |
|
|
President |
|
|
| Date: |
|
December 28, 2022 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has
been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
|
|
| By: |
|
/s/ James F. Kirchner |
|
|
James F. Kirchner |
|
|
Treasurer |
|
|
| Date: |
|
December 28, 2022 |
|
|
| By: |
|
/s/ Edward J. Perkin |
|
|
Edward J. Perkin |
|
|
President |
|
|
| Date: |
|
December 28, 2022 |
Tax-Managed International Equity Portfolio
FORM N-CSR
Exhibit 13(a)(2)(i)
CERTIFICATION
I, James F. Kirchner, certify that:
1. I have reviewed this report on Form N-CSR of
Tax-Managed International Equity Portfolio;
2. Based on my knowledge, this report does not
contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly
present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods
presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being
prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over
financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of
the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant
deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial
information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a
significant role in the registrant’s internal control over financial reporting.
|
|
|
| Date: December 28, 2022 |
|
/s/ James F. Kirchner |
|
|
James F. Kirchner |
|
|
Treasurer |
Tax-Managed International Equity Portfolio
FORM N-CSR
Exhibit 13(a)(2)(ii)
CERTIFICATION
I, Edward J. Perkin, certify that:
1. I have reviewed this report on Form N-CSR of
Tax-Managed International Equity Portfolio;
2. Based on my knowledge, this report does not
contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly
present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods
presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being
prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over
financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of
the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant
deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial
information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a
significant role in the registrant’s internal control over financial reporting.
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|
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| Date: December 28, 2022 |
|
/s/ Edward J. Perkin |
|
|
Edward J. Perkin |
|
|
President |
Form N-CSR Item 13(b) Exhibit
CERTIFICATION PURSUANT TO
18
U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
The undersigned hereby certify in their capacity as Treasurer and President, respectively, of
Tax-Managed International Equity Portfolio (the “Portfolio”), that:
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(a) |
The Annual Report of the Portfolio on Form N-CSR for the period
ended October 31, 2022 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
| |
(b) |
The information contained in the Report fairly presents, in all material respects, the financial condition and
the results of operations of the Portfolio for such period. |
A signed original of this written statement required by section
906 has been provided to the Portfolio and will be retained by the Portfolio and furnished to the Securities and Exchange Commission or its staff upon request.
|
| Tax-Managed International Equity Portfolio |
|
| Date: December 28, 2022 |
|
| /s/ James F. Kirchner |
| James F. Kirchner |
| Treasurer |
|
| Date: December 28, 2022 |
|
| /s/ Edward J. Perkin |
| Edward J. Perkin |
| President |