UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
811-21614
Investment Company Act File Number
Eaton Vance Enhanced Equity Income Fund
(Exact Name of Registrant as Specified in Charter)
Two International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
Maureen A. Gemma
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
(617) 482-8260
(Registrants Telephone Number, Including Area Code)
September 30
Date of Fiscal Year End
June 30, 2013
Date of Reporting Period
Item 1. Schedule of Investments
Eaton Vance
Enhanced Equity Income Fund
June 30, 2013
PORTFOLIO OF INVESTMENTS (Unaudited)
Common Stocks 99.1%(1)
Security | Shares | Value | ||||||
Aerospace & Defense 3.2% |
||||||||
Boeing Co. (The) |
100,424 | $ | 10,287,434 | |||||
United Technologies Corp. |
62,084 | 5,770,087 | ||||||
|
|
|||||||
$ | 16,057,521 | |||||||
|
|
|||||||
Automobiles 0.7% |
||||||||
Honda Motor Co., Ltd. |
89,607 | $ | 3,328,849 | |||||
|
|
|||||||
$ | 3,328,849 | |||||||
|
|
|||||||
Beverages 3.2% |
||||||||
Beam, Inc. |
46,337 | $ | 2,924,328 | |||||
Coca-Cola Co. (The) |
203,434 | 8,159,738 | ||||||
PepsiCo, Inc. |
64,319 | 5,260,651 | ||||||
|
|
|||||||
$ | 16,344,717 | |||||||
|
|
|||||||
Biotechnology 5.0% |
||||||||
Celgene Corp.(2) |
91,976 | $ | 10,752,914 | |||||
Gilead Sciences, Inc.(2) |
288,306 | 14,764,150 | ||||||
|
|
|||||||
$ | 25,517,064 | |||||||
|
|
|||||||
Capital Markets 1.5% |
||||||||
Charles Schwab Corp. (The) |
123,373 | $ | 2,619,209 | |||||
Goldman Sachs Group, Inc. (The) |
32,134 | 4,860,267 | ||||||
|
|
|||||||
$ | 7,479,476 | |||||||
|
|
|||||||
Chemicals 3.0% |
||||||||
LyondellBasell Industries NV, Class A |
81,847 | $ | 5,423,182 | |||||
Monsanto Co. |
87,547 | 8,649,644 | ||||||
PPG Industries, Inc. |
7,983 | 1,168,791 | ||||||
|
|
|||||||
$ | 15,241,617 | |||||||
|
|
|||||||
Commercial Banks 4.7% |
||||||||
PNC Financial Services Group, Inc. (The) |
84,296 | $ | 6,146,864 | |||||
Regions Financial Corp. |
615,516 | 5,865,868 | ||||||
Wells Fargo & Co. |
287,752 | 11,875,525 | ||||||
|
|
|||||||
$ | 23,888,257 | |||||||
|
|
|||||||
Communications Equipment 0.9% |
||||||||
QUALCOMM, Inc. |
76,600 | $ | 4,678,728 | |||||
|
|
|||||||
$ | 4,678,728 | |||||||
|
|
|||||||
Computers & Peripherals 2.2% |
||||||||
Apple, Inc. |
27,844 | $ | 11,028,451 | |||||
|
|
|||||||
$ | 11,028,451 | |||||||
|
|
|||||||
Consumer Finance 1.8% |
||||||||
American Express Co. |
121,117 | $ | 9,054,707 | |||||
|
|
|||||||
$ | 9,054,707 | |||||||
|
|
|||||||
Diversified Financial Services 5.5% |
||||||||
Bank of America Corp. |
633,670 | $ | 8,148,996 | |||||
Citigroup, Inc. |
198,157 | 9,505,592 | ||||||
JPMorgan Chase & Co. |
199,214 | 10,516,507 | ||||||
|
|
|||||||
$ | 28,171,095 | |||||||
|
|
1
Security | Shares | Value | ||||||
Diversified Telecommunication Services 2.0% |
||||||||
AT&T, Inc. |
70,438 | $ | 2,493,505 | |||||
Verizon Communications, Inc. |
149,751 | 7,538,466 | ||||||
|
|
|||||||
$ | 10,031,971 | |||||||
|
|
|||||||
Electric Utilities 2.5% |
||||||||
American Electric Power Co., Inc. |
28,420 | $ | 1,272,648 | |||||
Duke Energy Corp. |
40,651 | 2,743,943 | ||||||
Edison International |
61,046 | 2,939,975 | ||||||
PPL Corp. |
105,792 | 3,201,266 | ||||||
Southern Co. (The) |
58,119 | 2,564,791 | ||||||
|
|
|||||||
$ | 12,722,623 | |||||||
|
|
|||||||
Electrical Equipment 1.5% |
||||||||
Emerson Electric Co. |
142,698 | $ | 7,782,749 | |||||
|
|
|||||||
$ | 7,782,749 | |||||||
|
|
|||||||
Electronic Equipment, Instruments & Components 0.4% |
||||||||
Corning, Inc. |
142,383 | $ | 2,026,110 | |||||
|
|
|||||||
$ | 2,026,110 | |||||||
|
|
|||||||
Energy Equipment & Services 1.7% |
||||||||
Cameron International Corp.(2) |
23,787 | $ | 1,454,813 | |||||
Halliburton Co. |
177,957 | 7,424,366 | ||||||
|
|
|||||||
$ | 8,879,179 | |||||||
|
|
|||||||
Food & Staples Retailing 1.6% |
||||||||
Costco Wholesale Corp. |
75,410 | $ | 8,338,084 | |||||
|
|
|||||||
$ | 8,338,084 | |||||||
|
|
|||||||
Food Products 1.9% |
||||||||
Hershey Co. (The) |
51,174 | $ | 4,568,815 | |||||
Mondelez International, Inc., Class A |
185,517 | 5,292,800 | ||||||
|
|
|||||||
$ | 9,861,615 | |||||||
|
|
|||||||
Health Care Equipment & Supplies 1.8% |
||||||||
Abbott Laboratories |
102,372 | $ | 3,570,735 | |||||
Covidien PLC |
87,021 | 5,468,400 | ||||||
|
|
|||||||
$ | 9,039,135 | |||||||
|
|
|||||||
Health Care Providers & Services 0.9% |
||||||||
Express Scripts Holding Co.(2) |
77,827 | $ | 4,801,148 | |||||
|
|
|||||||
$ | 4,801,148 | |||||||
|
|
|||||||
Hotels, Restaurants & Leisure 1.0% |
||||||||
McDonalds Corp. |
52,500 | $ | 5,197,500 | |||||
|
|
|||||||
$ | 5,197,500 | |||||||
|
|
|||||||
Household Products 1.5% |
||||||||
Procter & Gamble Co. |
100,547 | $ | 7,741,113 | |||||
|
|
|||||||
$ | 7,741,113 | |||||||
|
|
|||||||
Industrial Conglomerates 3.5% |
||||||||
Danaher Corp. |
125,817 | $ | 7,964,216 | |||||
General Electric Co. |
428,588 | 9,938,956 | ||||||
|
|
|||||||
$ | 17,903,172 | |||||||
|
|
|||||||
Insurance 2.3% |
||||||||
ACE, Ltd. |
61,371 | $ | 5,491,477 | |||||
Aflac, Inc. |
104,416 | 6,068,658 | ||||||
|
|
|||||||
$ | 11,560,135 | |||||||
|
|
2
Security | Shares | Value | ||||||
Internet & Catalog Retail 2.6% |
||||||||
Amazon.com, Inc.(2) |
39,376 | $ | 10,934,322 | |||||
Netflix, Inc.(2) |
10,327 | 2,179,926 | ||||||
|
|
|||||||
$ | 13,114,248 | |||||||
|
|
|||||||
Internet Software & Services 4.8% |
||||||||
eBay, Inc.(2) |
162,569 | $ | 8,408,069 | |||||
Google, Inc., Class A(2) |
17,965 | 15,815,847 | ||||||
|
|
|||||||
$ | 24,223,916 | |||||||
|
|
|||||||
IT Services 4.9% |
||||||||
Accenture PLC, Class A |
108,357 | $ | 7,797,370 | |||||
International Business Machines Corp. |
67,277 | 12,857,307 | ||||||
Visa, Inc., Class A |
23,522 | 4,298,646 | ||||||
|
|
|||||||
$ | 24,953,323 | |||||||
|
|
|||||||
Machinery 1.0% |
||||||||
Deere & Co. |
64,524 | $ | 5,242,575 | |||||
|
|
|||||||
$ | 5,242,575 | |||||||
|
|
|||||||
Media 3.7% |
||||||||
Comcast Corp., Class A |
222,705 | $ | 9,326,886 | |||||
Walt Disney Co. (The) |
149,562 | 9,444,840 | ||||||
|
|
|||||||
$ | 18,771,726 | |||||||
|
|
|||||||
Metals & Mining 0.2% |
||||||||
Freeport-McMoRan Copper & Gold, Inc. |
39,423 | $ | 1,088,469 | |||||
|
|
|||||||
$ | 1,088,469 | |||||||
|
|
|||||||
Multi-Utilities 0.7% |
||||||||
Sempra Energy |
44,598 | $ | 3,646,332 | |||||
|
|
|||||||
$ | 3,646,332 | |||||||
|
|
|||||||
Multiline Retail 2.3% |
||||||||
Dollar General Corp.(2) |
153,439 | $ | 7,737,929 | |||||
Macys, Inc. |
79,293 | 3,806,064 | ||||||
|
|
|||||||
$ | 11,543,993 | |||||||
|
|
|||||||
Oil, Gas & Consumable Fuels 9.1% |
||||||||
Alpha Natural Resources, Inc.(2) |
351,089 | $ | 1,839,706 | |||||
Anadarko Petroleum Corp. |
54,915 | 4,718,846 | ||||||
Chevron Corp. |
59,799 | 7,076,614 | ||||||
ConocoPhillips |
89,802 | 5,433,021 | ||||||
EOG Resources, Inc. |
28,831 | 3,796,466 | ||||||
Exxon Mobil Corp. |
52,111 | 4,708,229 | ||||||
HollyFrontier Corp. |
36,871 | 1,577,341 | ||||||
Marathon Oil Corp. |
96,028 | 3,320,648 | ||||||
Occidental Petroleum Corp. |
82,563 | 7,367,097 | ||||||
Phillips 66 |
106,835 | 6,293,650 | ||||||
|
|
|||||||
$ | 46,131,618 | |||||||
|
|
|||||||
Personal Products 1.0% |
||||||||
Estee Lauder Cos., Inc. (The), Class A |
74,862 | $ | 4,923,674 | |||||
|
|
|||||||
$ | 4,923,674 | |||||||
|
|
|||||||
Pharmaceuticals 5.1% |
||||||||
AbbVie, Inc. |
102,372 | $ | 4,232,058 | |||||
Johnson & Johnson |
89,921 | 7,720,617 | ||||||
Pfizer, Inc. |
399,553 | 11,191,480 | ||||||
Roche Holding AG PC |
10,888 | 2,702,370 | ||||||
|
|
|||||||
$ | 25,846,525 | |||||||
|
|
3
Security | Shares | Value | ||||||
Real Estate Investment Trusts (REITs) 1.6% |
||||||||
AvalonBay Communities, Inc. |
26,090 | $ | 3,519,802 | |||||
Boston Properties, Inc. |
44,795 | 4,724,529 | ||||||
|
|
|||||||
$ | 8,244,331 | |||||||
|
|
|||||||
Road & Rail 1.7% |
||||||||
Union Pacific Corp. |
56,830 | $ | 8,767,732 | |||||
|
|
|||||||
$ | 8,767,732 | |||||||
|
|
|||||||
Software 3.3% |
||||||||
Microsoft Corp. |
279,695 | $ | 9,657,868 | |||||
Oracle Corp. |
229,111 | 7,038,290 | ||||||
|
|
|||||||
$ | 16,696,158 | |||||||
|
|
|||||||
Specialty Retail 0.8% |
||||||||
Home Depot, Inc. (The) |
52,211 | $ | 4,044,786 | |||||
|
|
|||||||
$ | 4,044,786 | |||||||
|
|
|||||||
Textiles, Apparel & Luxury Goods 1.0% |
||||||||
NIKE, Inc., Class B |
84,008 | $ | 5,349,629 | |||||
|
|
|||||||
$ | 5,349,629 | |||||||
|
|
|||||||
Tobacco 1.0% |
||||||||
Philip Morris International, Inc. |
56,433 | $ | 4,888,226 | |||||
|
|
|||||||
$ | 4,888,226 | |||||||
|
|
|||||||
Total Common Stocks |
|
$ | 504,152,277 | |||||
|
|
|||||||
Short-Term Investments 1.8% |
||||||||
Description | Interest (000s omitted) |
Value | ||||||
Eaton Vance Cash Reserves Fund, LLC, 0.11%(3) |
$ | 9,272 | $ | 9,271,726 | ||||
|
|
|||||||
Total Short-Term Investments |
|
$ | 9,271,726 | |||||
|
|
|||||||
Total Investments 100.9% |
|
$ | 513,424,003 | |||||
|
|
|||||||
Covered Call Options Written (0.4)% |
Security | Number of Contracts |
Strike Price |
Expiration Date |
Value | ||||||||||||
Abbott Laboratories |
515 | $ | 39.00 | 7/20/13 | $ | (772 | ) | |||||||||
AbbVie, Inc. |
515 | 45.00 | 8/17/13 | (20,600 | ) | |||||||||||
ACE, Ltd. |
310 | 90.00 | 8/17/13 | (54,250 | ) | |||||||||||
Aflac, Inc. |
525 | 60.00 | 7/20/13 | (17,325 | ) | |||||||||||
Amazon.com, Inc. |
200 | 295.00 | 7/20/13 | (18,900 | ) | |||||||||||
American Electric Power Co., Inc. |
145 | 48.00 | 8/17/13 | (1,450 | ) | |||||||||||
American Express Co. |
610 | 77.50 | 7/20/13 | (27,755 | ) | |||||||||||
Anadarko Petroleum Corp. |
275 | 90.00 | 8/17/13 | (66,413 | ) | |||||||||||
AvalonBay Communities, Inc. |
130 | 145.00 | 7/20/13 | (2,600 | ) | |||||||||||
Bank of America Corp. |
3,170 | 15.00 | 7/20/13 | (1,585 | ) | |||||||||||
Beam, Inc. |
235 | 67.50 | 8/17/13 | (12,925 | ) | |||||||||||
Boeing Co. (The) |
505 | 110.00 | 8/17/13 | (42,925 | ) | |||||||||||
Boston Properties, Inc. |
225 | 115.00 | 7/20/13 | (2,250 | ) | |||||||||||
Cameron International Corp. |
120 | 65.00 | 8/17/13 | (15,000 | ) | |||||||||||
Celgene Corp. |
460 | 130.00 | 7/20/13 | (24,610 | ) | |||||||||||
Charles Schwab Corp. (The) |
620 | 21.00 | 7/20/13 | (44,950 | ) |
4
Security | Number of Contracts |
Strike Price |
Expiration Date |
Value |
||||||||||||
Chevron Corp. |
300 | $ | 125.00 | 7/20/13 | $ | (4,350 | ) | |||||||||
Citigroup, Inc. |
995 | 55.00 | 7/20/13 | (3,482 | ) | |||||||||||
Coca-Cola Co. (The) |
1,020 | 41.00 | 8/17/13 | (65,280 | ) | |||||||||||
Comcast Corp., Class A |
1,115 | 45.00 | 7/20/13 | (5,017 | ) | |||||||||||
ConocoPhillips |
450 | 62.50 | 8/17/13 | (24,300 | ) | |||||||||||
Corning, Inc. |
715 | 16.00 | 7/20/13 | (1,072 | ) | |||||||||||
Costco Wholesale Corp. |
380 | 113.00 | 7/20/13 | (27,170 | ) | |||||||||||
Danaher Corp. |
630 | 65.00 | 8/17/13 | (80,325 | ) | |||||||||||
Deere & Co. |
325 | 85.00 | 8/17/13 | (36,725 | ) | |||||||||||
Dollar General Corp. |
770 | 57.50 | 7/20/13 | (3,850 | ) | |||||||||||
Duke Energy Corp. |
205 | 75.00 | 7/20/13 | (512 | ) | |||||||||||
eBay, Inc. |
815 | 55.00 | 8/17/13 | (76,610 | ) | |||||||||||
Edison International |
305 | 50.00 | 8/17/13 | (16,525 | ) | |||||||||||
Emerson Electric Co. |
715 | 57.50 | 8/17/13 | (35,750 | ) | |||||||||||
EOG Resources, Inc. |
145 | 140.00 | 8/17/13 | (39,730 | ) | |||||||||||
Estee Lauder Cos., Inc. (The), Class A |
375 | 70.00 | 7/20/13 | (7,500 | ) | |||||||||||
Express Scripts Holding Co. |
390 | 65.00 | 8/17/13 | (35,880 | ) | |||||||||||
Exxon Mobil Corp. |
265 | 95.00 | 7/20/13 | (1,987 | ) | |||||||||||
Freeport-McMoRan Copper & Gold, Inc. |
200 | 32.00 | 7/20/13 | (700 | ) | |||||||||||
General Electric Co. |
2,145 | 25.00 | 8/17/13 | (22,523 | ) | |||||||||||
Gilead Sciences, Inc. |
1,445 | 55.00 | 8/17/13 | (142,333 | ) | |||||||||||
Goldman Sachs Group, Inc. (The) |
165 | 165.00 | 7/20/13 | (7,178 | ) | |||||||||||
Google, Inc., Class A |
90 | 920.00 | 8/17/13 | (132,750 | ) | |||||||||||
Halliburton Co. |
890 | 44.00 | 8/17/13 | (73,425 | ) | |||||||||||
Hershey Co. (The) |
260 | 90.00 | 8/17/13 | (51,350 | ) | |||||||||||
HollyFrontier Corp. |
185 | 47.00 | 8/17/13 | (13,875 | ) | |||||||||||
Home Depot, Inc. (The) |
265 | 77.50 | 8/17/13 | (55,518 | ) | |||||||||||
International Business Machines Corp. |
340 | 215.00 | 7/20/13 | (2,720 | ) | |||||||||||
Johnson & Johnson |
450 | 87.50 | 7/20/13 | (28,125 | ) | |||||||||||
JPMorgan Chase & Co. |
1,000 | 57.50 | 7/20/13 | (7,500 | ) | |||||||||||
LyondellBasell Industries NV, Class A |
410 | 72.50 | 8/17/13 | (37,925 | ) | |||||||||||
Macys, Inc. |
400 | 52.50 | 7/20/13 | (1,200 | ) | |||||||||||
Marathon Oil Corp. |
480 | 36.00 | 7/20/13 | (15,600 | ) | |||||||||||
McDonalds Corp. |
265 | 100.00 | 8/17/13 | (45,448 | ) | |||||||||||
Microsoft Corp. |
1,400 | 37.00 | 8/17/13 | (30,800 | ) | |||||||||||
Mondelez International, Inc., Class A |
930 | 30.00 | 8/17/13 | (45,570 | ) | |||||||||||
Monsanto Co. |
440 | 115.00 | 7/20/13 | (880 | ) | |||||||||||
NIKE, Inc., Class B |
425 | 70.00 | 7/20/13 | (1,487 | ) | |||||||||||
Occidental Petroleum Corp. |
415 | 95.00 | 8/17/13 | (47,725 | ) | |||||||||||
Oracle Corp. |
1,150 | 32.00 | 8/17/13 | (44,850 | ) | |||||||||||
PepsiCo, Inc. |
325 | 82.50 | 7/20/13 | (26,000 | ) | |||||||||||
Pfizer, Inc. |
2,000 | 29.00 | 8/17/13 | (72,000 | ) | |||||||||||
Philip Morris International, Inc. |
285 | 92.50 | 9/21/13 | (23,228 | ) | |||||||||||
Phillips 66 |
535 | 70.00 | 7/20/13 | (1,337 | ) | |||||||||||
PNC Financial Services Group, Inc. (The) |
425 | 75.00 | 7/20/13 | (22,100 | ) | |||||||||||
PPG Industries, Inc. |
40 | 165.00 | 7/20/13 | (300 | ) | |||||||||||
PPL Corp. |
530 | 31.00 | 8/17/13 | (18,169 | ) | |||||||||||
Procter & Gamble Co. |
505 | 80.00 | 8/17/13 | (41,410 | ) | |||||||||||
QUALCOMM, Inc. |
385 | 65.00 | 8/17/13 | (23,485 | ) | |||||||||||
Regions Financial Corp. |
3,080 | 10.00 | 8/17/13 | (67,760 | ) | |||||||||||
Sempra Energy |
225 | 82.50 | 8/17/13 | (41,063 | ) | |||||||||||
Southern Co. (The) |
295 | 45.00 | 8/17/13 | (13,423 | ) | |||||||||||
Union Pacific Corp. |
285 | 165.00 | 7/20/13 | (8,835 | ) | |||||||||||
United Technologies Corp. |
310 | 95.00 | 8/17/13 | (46,810 | ) | |||||||||||
Verizon Communications, Inc. |
750 | 52.50 | 8/17/13 | (30,375 | ) | |||||||||||
Visa, Inc., Class A |
120 | 190.00 | 7/20/13 | (9,900 | ) | |||||||||||
Walt Disney Co. (The) |
750 | 70.00 | 7/20/13 | (2,625 | ) |
5
Security | Number of Contracts |
Strike Price |
Expiration Date |
Value | ||||||||||||
Wells Fargo & Co. |
1,440 | $ | 42.00 | 7/20/13 | $ | (76,320 | ) | |||||||||
|
|
|||||||||||||||
Total Covered Call Options Written |
$ | (2,154,997 | ) | |||||||||||||
|
|
|||||||||||||||
Other Assets, Less Liabilities (0.5)% |
$ | (2,471,572 | ) | |||||||||||||
|
|
|||||||||||||||
Net Assets 100.0% |
$ | 508,797,434 | ||||||||||||||
|
|
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
PC |
- | Participation Certificate |
(1) | A portion of each applicable common stock for which a written call option is outstanding at June 30, 2013 has been pledged as collateral for such written option. |
(2) | Non-income producing security. |
(3) | Affiliated investment company, available to Eaton Vance portfolios and funds, which invests in high quality, U.S. dollar denominated money market instruments. The rate shown is the annualized seven-day yield as of June 30, 2013. Net income allocated from the investment in Eaton Vance Cash Reserves Fund, LLC for the fiscal year to date ended June 30, 2013 was $3,748. |
The cost and unrealized appreciation (depreciation) of investments of the Fund at June 30, 2013, as determined on a federal income tax basis, were as follows:
Aggregate cost |
$ | 373,592,967 | ||
|
|
|||
Gross unrealized appreciation |
$ | 142,560,359 | ||
Gross unrealized depreciation |
(2,729,323 | ) | ||
|
|
|||
Net unrealized appreciation |
$ | 139,831,036 | ||
|
|
A summary of open financial instruments at June 30, 2013 is as follows:
Forward Foreign Currency Exchange Contracts
Sales
Settlement Date |
Deliver |
In Exchange For |
Counterparty | Net
Unrealized Appreciation |
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7/31/13 | Japanese Yen 311,322,000 |
United States Dollar 3,194,766 |
Credit Suisse International | $ | 55,469 | |||||
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Written call options activity for the fiscal year to date ended June 30, 2013 was as follows:
Number of Contracts |
Premiums Received |
|||||||
Outstanding, beginning of period | 56,565 | $ | 7,419,707 | |||||
Options written | 287,927 | 24,490,930 | ||||||
Options terminated in closing purchase transactions | (201,117 | ) | (18,267,303 | ) | ||||
Options exercised | (1,185 | ) | (150,852 | ) | ||||
Options expired | (97,680 | ) | (10,058,619 | ) | ||||
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|
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Outstanding, end of period | 44,510 | $ | 3,433,863 | |||||
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At June 30, 2013, the Fund had sufficient cash and/or securities to cover commitments under these contracts.
In the normal course of pursuing its investment objectives, the Fund is subject to the following risks:
Equity Price Risk: The Fund writes covered call options on individual stocks above the current value of the stock to generate premium income. In writing call options on individual stocks, the Fund in effect, sells potential appreciation in the value of the applicable stock above the exercise price in exchange for the option premium received. The Fund retains the risk of loss, minus the premium received, should the price of the underlying stock decline.
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Foreign Exchange Risk: Because the Fund holds foreign currency denominated investments, the value of these investments and related receivables and payables may change due to future changes in foreign currency exchange rates. To hedge against this risk, the Fund enters into forward foreign currency exchange contracts.
The fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) by risk exposure at June 30, 2013 was as follows:
Fair Value | ||||||||||
Risk |
Derivative |
Asset Derivative |
Liability Derivative |
|||||||
Equity Price | Written options | $ | | $ | (2,154,997 | ) | ||||
Foreign Exchange | Forward foreign currency exchange contracts | 55,469 | | |||||||
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|
|
|
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Total |
$ | 55,469 | $ | (2,154,997 | ) | |||||
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Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
| Level 1 quoted prices in active markets for identical investments |
| Level 2 other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
| Level 3 significant unobservable inputs (including a funds own assumptions in determining the fair value of investments) |
In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
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At June 30, 2013, the hierarchy of inputs used in valuing the Funds investments and open derivative instruments, which are carried at value, were as follows:
Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | ||||||||||||||||
Consumer Discretionary |
$ | 58,021,882 | $ | 3,328,849 | $ | | $ | 61,350,731 | ||||||||
Consumer Staples |
52,097,429 | | | 52,097,429 | ||||||||||||
Energy |
55,010,797 | | | 55,010,797 | ||||||||||||
Financials |
88,398,001 | | | 88,398,001 | ||||||||||||
Health Care |
62,501,502 | 2,702,370 | | 65,203,872 | ||||||||||||
Industrials |
55,753,749 | | | 55,753,749 | ||||||||||||
Information Technology |
83,606,686 | | | 83,606,686 | ||||||||||||
Materials |
16,330,086 | | | 16,330,086 | ||||||||||||
Telecommunication Services |
10,031,971 | | | 10,031,971 | ||||||||||||
Utilities |
16,368,955 | | | 16,368,955 | ||||||||||||
Total Common Stocks |
$ | 498,121,058 | $ | 6,031,219 | * | $ | | $ | 504,152,277 | |||||||
Short-Term Investments |
$ | | $ | 9,271,726 | $ | | $ | 9,271,726 | ||||||||
Total Investments |
$ | 498,121,058 | $ | 15,302,945 | $ | | $ | 513,424,003 | ||||||||
Forward Foreign Currency Exchange Contracts |
$ | | $ | 55,469 | $ | | $ | 55,469 | ||||||||
Total |
$ | 498,121,058 | $ | 15,358,414 | $ | | $ | 513,479,472 | ||||||||
Liability Description | ||||||||||||||||
Covered Call Options Written |
$ | (2,154,997 | ) | $ | | $ | | $ | (2,154,997 | ) | ||||||
Total |
$ | (2,154,997 | ) | $ | | $ | | $ | (2,154,997 | ) |
* | Includes foreign equity securities whose values were adjusted to reflect market trading of comparable securities or other correlated instruments that occurred after the close of trading in their applicable foreign markets. |
The Fund held no investments or other financial instruments as of September 30, 2012 whose fair value was determined using Level 3 inputs. At June 30, 2013, there were no investments transferred between Level 1 and Level 2 during the fiscal year to date then ended.
For information on the Funds policy regarding the valuation of investments and other significant accounting policies, please refer to the Funds most recent financial statements included in its semiannual or annual report to shareholders.
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Item 2. Controls and Procedures
(a) It is the conclusion of the registrants principal executive officer and principal financial officer that the effectiveness of the registrants current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant on this Form N-Q has been recorded, processed, summarized and reported within the time period specified in the Commissions rules and forms and that the information required to be disclosed by the registrant on this Form N-Q has been accumulated and communicated to the registrants principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrants internal controls over financial reporting during the fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrants internal control over financial reporting.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Eaton Vance Enhanced Equity Income Fund
By: | /s/ Walter A. Row, III | |
Walter A. Row, III | ||
President | ||
Date: | August 26, 2013 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Walter A. Row, III | |
Walter A. Row, III | ||
President | ||
Date: | August 26, 2013 |
By: | /s/ James F. Kirchner | |
James F. Kirchner | ||
Treasurer | ||
Date: | August 26, 2013 |