Statement of Assets and Liabilities
|
|
|
|
|
Assets
|
|
October 31, 2020
|
|
|
|
Unaffiliated investments, at value (identified cost, $235,986,053)
|
|
$
|
257,497,375
|
|
|
|
Affiliated investment, at value (identified cost, $1,027,196)
|
|
|
1,027,196
|
|
|
|
Cash
|
|
|
27,559
|
|
|
|
Foreign currency, at value (identified cost, $1,373,525)
|
|
|
1,373,314
|
|
|
|
Interest and dividends receivable
|
|
|
1,661,936
|
|
|
|
Dividends receivable from affiliated investment
|
|
|
17
|
|
|
|
Receivable for investments sold
|
|
|
3,200,827
|
|
|
|
Receivable for open forward foreign currency exchange contracts
|
|
|
3,689
|
|
|
|
Tax reclaims receivable
|
|
|
2,025,471
|
|
|
|
Total assets
|
|
$
|
266,817,384
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Payable for investments purchased
|
|
$
|
842,349
|
|
|
|
Payable for when-issued securities
|
|
|
2,574,186
|
|
|
|
Payable for variation margin on open financial futures contracts
|
|
|
45,905
|
|
|
|
Payable for open forward foreign currency exchange contracts
|
|
|
16,616
|
|
|
|
Payable to affiliates:
|
|
|
|
|
|
|
Investment adviser fee
|
|
|
127,555
|
|
|
|
Trustees fees
|
|
|
1,243
|
|
|
|
Accrued expenses
|
|
|
114,502
|
|
|
|
Total liabilities
|
|
$
|
3,722,356
|
|
|
|
Net Assets applicable to investors interest in Portfolio
|
|
$
|
263,095,028
|
|
|
|
|
|
|
|
|
32
|
|
See Notes to Financial Statements.
|
Global Income Builder Portfolio
October 31, 2020
Statement of Operations
|
|
|
|
|
Investment Income
|
|
Year Ended
October 31, 2020
|
|
|
|
Interest (net of foreign taxes, $812)
|
|
$
|
6,631,989
|
|
|
|
Dividends (net of foreign taxes, $742,552)
|
|
|
6,008,052
|
|
|
|
Non-cash dividend income
|
|
|
786,216
|
|
|
|
Dividends from affiliated investment
|
|
|
19,862
|
|
|
|
Total investment income
|
|
$
|
13,446,119
|
|
|
|
Expenses
|
|
|
|
|
|
|
Investment adviser fee
|
|
$
|
1,546,552
|
|
|
|
Trustees fees and expenses
|
|
|
15,228
|
|
|
|
Custodian fee
|
|
|
193,187
|
|
|
|
Legal and accounting services
|
|
|
61,660
|
|
|
|
Miscellaneous
|
|
|
50,125
|
|
|
|
Total expenses
|
|
$
|
1,866,752
|
|
|
|
Net investment income
|
|
$
|
11,579,367
|
|
|
|
Realized and Unrealized Gain (Loss)
|
|
|
|
|
|
|
Net realized gain (loss)
|
|
|
|
|
|
|
Investment transactions
|
|
$
|
(3,765,347
|
)
|
|
|
Investment transactions affiliated investment
|
|
|
(2,391
|
)
|
|
|
Financial futures contracts
|
|
|
2,793,487
|
|
|
|
Foreign currency transactions
|
|
|
44,789
|
|
|
|
Forward foreign currency exchange contracts
|
|
|
(1,240,277
|
)
|
|
|
Net realized loss
|
|
$
|
(2,169,739
|
)
|
|
|
Change in unrealized appreciation (depreciation)
|
|
|
|
|
|
|
Investments
|
|
$
|
(4,331,949
|
)
|
|
|
Investments affiliated investment
|
|
|
(1
|
)
|
|
|
Financial futures contracts
|
|
|
176,165
|
|
|
|
Foreign currency
|
|
|
(2,586
|
)
|
|
|
Forward foreign currency exchange contracts
|
|
|
(12,927
|
)
|
|
|
Net change in unrealized appreciation (depreciation)
|
|
$
|
(4,171,298
|
)
|
|
|
Net realized and unrealized loss
|
|
$
|
(6,341,037
|
)
|
|
|
Net increase in net assets from operations
|
|
$
|
5,238,330
|
|
|
|
|
|
|
|
|
33
|
|
See Notes to Financial Statements.
|
Global Income Builder Portfolio
October 31, 2020
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31,
|
|
Increase (Decrease) in Net Assets
|
|
2020
|
|
|
2019
|
|
|
|
|
From operations
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
11,579,367
|
|
|
$
|
14,450,194
|
|
|
|
|
Net realized loss
|
|
|
(2,169,739
|
)
|
|
|
(6,970,681
|
)
|
|
|
|
Net change in unrealized appreciation (depreciation)
|
|
|
(4,171,298
|
)
|
|
|
25,251,717
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
5,238,330
|
|
|
$
|
32,731,230
|
|
|
|
|
Capital transactions
|
|
|
|
|
|
|
|
|
|
|
|
Contributions
|
|
$
|
9,268,119
|
|
|
$
|
4,524,358
|
|
|
|
|
Withdrawals
|
|
|
(53,647,355
|
)
|
|
|
(58,888,266
|
)
|
|
|
|
Portfolio transaction fee
|
|
|
216,038
|
|
|
|
215,407
|
|
|
|
|
Net decrease in net assets from capital transactions
|
|
$
|
(44,163,198
|
)
|
|
$
|
(54,148,501
|
)
|
|
|
|
Net decrease in net assets
|
|
$
|
(38,924,868
|
)
|
|
$
|
(21,417,271
|
)
|
|
Net Assets
|
|
|
|
|
At beginning of year
|
|
$
|
302,019,896
|
|
|
$
|
323,437,167
|
|
|
|
|
At end of year
|
|
$
|
263,095,028
|
|
|
$
|
302,019,896
|
|
|
|
|
|
|
|
|
34
|
|
See Notes to Financial Statements.
|
Global Income Builder Portfolio
October 31, 2020
Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31,
|
|
|
Period Ended
October 31, 2016(1)
|
|
Ratios/Supplemental Data
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
Ratios (as a percentage of average daily net assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
0.66
|
%
|
|
|
0.70
|
%
|
|
|
0.75
|
%
|
|
|
0.75
|
%
|
|
|
0.80
|
%(2)
|
|
|
|
|
|
|
Net investment income
|
|
|
4.12
|
%
|
|
|
4.72
|
%
|
|
|
3.47
|
%
|
|
|
4.56
|
%
|
|
|
3.75
|
%(2)
|
|
|
|
|
|
|
Portfolio Turnover
|
|
|
118
|
%
|
|
|
86
|
%
|
|
|
102
|
%
|
|
|
143
|
%
|
|
|
66
|
%(3)
|
|
|
|
|
|
|
Total Return
|
|
|
2.64
|
%
|
|
|
11.57
|
%
|
|
|
(1.00
|
)%
|
|
|
15.99
|
%
|
|
|
3.65
|
%(3)
|
|
|
|
|
|
|
Net assets, end of period (000s omitted)
|
|
$
|
263,095
|
|
|
$
|
302,020
|
|
|
$
|
323,437
|
|
|
$
|
364,476
|
|
|
$
|
376,698
|
|
(1)
|
For the period from the start of business, March 28, 2016, to October 31, 2016.
|
|
|
|
|
|
|
|
35
|
|
See Notes to Financial Statements.
|
Global Income Builder Portfolio
October 31, 2020
Notes to Financial Statements
1 Significant Accounting Policies
Global Income Builder 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 Portfolios investment objective is to achieve total return. The Declaration of Trust permits the Trustees to issue interests in the Portfolio. At October 31, 2020, Eaton Vance
Global Income Builder Fund and Eaton Vance Global Income Builder NextShares held an interest of 97.8% and 2.2%, 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
Global or Global Select Market generally are valued at the NASDAQ official closing price. Unlisted or listed securities for which closing sales prices or closing quotations are not available are valued at the mean between the latest available bid
and ask prices or, in the case of preferred equity securities that are not listed or traded in the over-the-counter market, by a third party pricing service that uses various techniques that consider factors including, but not limited to, prices or
yields of securities with similar characteristics, benchmark yields, broker/dealer quotes, quotes of underlying common stock, issuer spreads, as well as industry and economic events.
Debt Obligations. Debt obligations are generally valued on the basis of valuations provided by third party pricing services, as derived from such services pricing models. Inputs to the models may
include, but are not limited to, reported trades, executable bid and ask prices, broker/dealer quotations, prices or yields of securities with similar characteristics, interest rates, anticipated prepayments, benchmark curves or information
pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Short-term
debt obligations purchased with a remaining maturity of sixty days or less for which a valuation from a third party pricing service is not readily available may be valued at amortized cost, which approximates fair value.
Senior Floating-Rate Loans. Interests in senior floating-rate loans (Senior Loans) for which reliable market quotations are readily available are valued
generally at the average mean of bid and ask quotations obtained from a third party pricing service.
Derivatives. Financial futures contracts are
valued at the closing settlement price established by the board of trade or exchange on which they are traded, with adjustments for fair valuation for certain foreign financial futures contracts as described below. Forward foreign currency exchange
contracts are generally valued at the mean of the average bid and average ask prices that are reported by currency dealers to a third party pricing service at the valuation time. Such third party pricing service valuations are supplied for specific
settlement periods and the Portfolios forward foreign currency exchange contracts are valued at an interpolated rate between the closest preceding and subsequent settlement period reported by the third party pricing service.
Foreign Securities, Financial Futures Contracts and Currencies. Foreign securities, financial futures contracts 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 and certain exchange-traded foreign financial futures contracts generally is determined as of the close of trading on the principal exchange on which such securities and contracts
trade. Events occurring after the close of trading on foreign exchanges may result in adjustments to the valuation of foreign securities and certain foreign financial futures contracts 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 and foreign financial futures contracts that meet certain criteria, the Portfolios Trustees have approved the use of a fair value service that values such
securities and foreign financial futures contracts 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 and
foreign financial futures contracts.
Affiliated Fund. The Portfolio may invest in Eaton Vance Cash Reserves Fund, LLC (Cash Reserves Fund), an
affiliated investment company managed by Eaton Vance Management (EVM). While Cash Reserves Fund is not a registered money market mutual fund, it conducts all of its investment activities in accordance with the requirements of Rule 2a-7 under the
1940 Act. Investments in Cash Reserves Fund are valued at the closing net asset value per unit on the valuation day. Cash Reserves Fund generally values its investment securities based on available market quotations provided by a third party pricing
service.
Fair Valuation. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at
fair value using methods determined in good faith by or at the direction of the Trustees of the Portfolio in a manner that most fairly reflects the securitys 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 securitys disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies or entities, quotations
or relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the companys or
entitys financial statements, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
Global Income Builder Portfolio
October 31, 2020
Notes to Financial Statements continued
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, interest and capital gains have been provided for in accordance with the Portfolios 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 financial statements for such outstanding reclaims. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount. Distributions from investment companies are recorded as dividend
income, capital gains or return of capital based on the nature of the distribution.
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 Portfolios 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 investors distributive share of the Portfolios net investment income, net realized capital gains and losses and any other items of income, gain, loss, deduction or credit.
As of October 31, 2020, 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 Unfunded Loan Commitments The Portfolio may enter into certain loan
agreements all or a portion of which may be unfunded. The Portfolio is obligated to fund these commitments at the borrowers discretion. These commitments are disclosed in the accompanying Portfolio of Investments. At October 31, 2020, the
Portfolio had sufficient cash and/or securities to cover these commitments.
G 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.
H Indemnifications Under the Portfolios 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 Portfolios 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 Portfolios 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.
I Financial Futures Contracts Upon entering into a financial futures contract, the
Portfolio is required to deposit with the broker, either in cash or securities, an amount equal to a certain percentage of the contract amount (initial margin). Subsequent payments, known as variation margin, are made or received by the Portfolio
each business day, depending on the daily fluctuations in the value of the underlying security or index, and are recorded as unrealized gains or losses by the Portfolio. Gains (losses) are realized upon the expiration or closing of the financial
futures contracts. Should market conditions change unexpectedly, the Portfolio may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. Futures contracts have minimal counterparty risk as they are exchange
traded and the clearinghouse for the exchange is substituted as the counterparty, guaranteeing counterparty performance.
J Forward Foreign Currency Exchange Contracts The Portfolio may enter into forward
foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date. The forward foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any
gains or losses are recorded as unrealized until such time as the contracts have been closed. Risks may arise upon entering these contracts from the potential inability of counterparties to meet the terms of their contracts and from movements in the
value of a foreign currency relative to the U.S. dollar.
Global Income Builder Portfolio
October 31, 2020
Notes to Financial Statements continued
K When-Issued Securities and Delayed Delivery Transactions The Portfolio may purchase or sell securities on a delayed delivery or
when-issued basis. Payment and delivery may take place after the customary settlement period for that security. At the time the transaction is negotiated, the price of the security that will be delivered is fixed. The Portfolio maintains cash and/or
security positions for these commitments such that sufficient liquid assets will be available to make payments upon settlement. Securities purchased on a delayed delivery or when-issued basis are marked-to-market daily and begin earning interest on
settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
L Capital Transactions To seek to protect the Portfolio (and, indirectly, other investors in the Portfolio) against the costs of
accommodating investor inflows and outflows, the Portfolio imposes a fee (Portfolio transaction fee) on inflows and outflows by Portfolio investors. The Portfolio transaction fee is sized to cover the estimated cost to the Portfolio of,
in connection with issuing interests, converting the cash and/or other instruments it receives to the desired composition and, in connection with redeeming its interests, converting Portfolio holdings to cash and/or other instruments to be
distributed. Such fee, which may vary over time, is limited to amounts that have been authorized by the Board of Trustees and determined by EVM to be appropriate. The maximum Portfolio transaction fee is 2% of the amount of net contributions or
withdrawals. The Portfolio transaction fee is recorded as a component of capital transactions on the Statements of Changes in Net Assets.
2 Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Boston Management and Research (BMR), a subsidiary of EVM and an indirect subsidiary of Eaton Vance Corp., as compensation for investment advisory services rendered to the
Portfolio. Pursuant to the investment advisory agreement and subsequent fee reduction agreement between the Portfolio and BMR, the fee is computed at an annual rate of 0.55% of the Portfolios average daily net assets up to $500 million. On
average daily net assets of $500 million and over, the annual fee is reduced. The fee reduction cannot be terminated or reduced without the approval of a majority vote of the Trustees of the Portfolio who are not interested persons of BMR or the
Portfolio and by the vote of a majority of the holders of interest in the Portfolio. For the year ended October 31, 2020, the Portfolios investment adviser fee amounted to $1,546,552 or 0.55% of the Portfolios average daily net
assets. Pursuant to a sub-advisory agreement and subsequent fee reduction agreement, BMR pays Eaton Vance Advisers International Ltd. (EVAIL), an indirect, wholly-owned subsidiary of Eaton Vance Corp., a portion of its investment adviser fee for
sub-advisory services provided to the Portfolio. The Portfolio invests its cash in Cash Reserves Fund. EVM does not currently receive a fee for advisory services provided to Cash Reserves Fund.
Trustees and officers of the Portfolio who are members of EVMs or BMRs 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, 2020, 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, and including maturities and principal repayments on Senior Loans, aggregated $323,235,448 and $354,515,693, respectively, for the year ended October 31, 2020.
4 Federal Income Tax Basis of Investments
The cost and unrealized appreciation
(depreciation) of investments, including open derivative contracts, of the Portfolio at October 31, 2020, as determined on a federal income tax basis, were as follows:
|
|
|
|
|
|
|
Aggregate cost
|
|
$
|
239,344,953
|
|
|
|
Gross unrealized appreciation
|
|
$
|
31,174,217
|
|
|
|
Gross unrealized depreciation
|
|
|
(11,994,599
|
)
|
|
|
Net unrealized appreciation
|
|
$
|
19,179,618
|
|
5 Financial Instruments
The Portfolio may trade in financial instruments with off-balance sheet risk in the normal course of its investing activities. These financial instruments may include forward foreign currency exchange contracts and
financial futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment the Portfolio
has in particular classes of financial instruments and do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting
transactions are considered. A summary of obligations under these financial instruments at October 31, 2020 is included in the Portfolio of Investments. At October 31, 2020, the Portfolio had sufficient cash and/or securities to cover
commitments under these contracts.
Global Income Builder Portfolio
October 31, 2020
Notes to Financial Statements continued
In the normal course of pursuing its investment objective, the Portfolio is subject to the following risks:
Equity
Price Risk: The Portfolio enters into equity futures contracts on securities indices to gain or limit exposure to certain markets, particularly in connection with engaging in the dividend capture trading strategy.
Foreign Exchange Risk: Because the Portfolio 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 Portfolio enters into forward foreign currency exchange contracts.
The Portfolio enters into forward foreign currency exchange contracts that may contain provisions whereby the counterparty may terminate the contract under certain conditions, including but not limited to a decline
in the Portfolios net assets below a certain level over a certain period of time, which would trigger a payment by the Portfolio for those derivatives in a liability position. At October 31, 2020, the fair value of derivatives with
credit-related contingent features in a net liability position was $16,616. At October 31, 2020, there were no assets pledged by the Portfolio for such liability.
The over-the-counter (OTC) derivatives in which the Portfolio invests are subject to the risk that the counterparty to the contract fails to perform its obligations under the contract. To mitigate this risk, the
Portfolio has entered into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement) or similar agreement with substantially all its derivative counterparties. An ISDA Master Agreement is a
bilateral agreement between the Portfolio and a counterparty that governs certain OTC derivatives and typically contains, among other things, set-off provisions in the event of a default and/or termination event as defined under the relevant ISDA
Master Agreement. Under an ISDA Master Agreement, the Portfolio may, under certain circumstances, offset with the counterparty certain derivative financial instruments payables and/or receivables with collateral held and/or posted and create
one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular
jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy or insolvency. Certain ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event
the Portfolios net assets decline by a stated percentage or the Portfolio fails to meet the terms of its ISDA Master Agreements, which would cause the counterparty to accelerate payment by the Portfolio of any net liability owed to it.
The collateral requirements for derivatives traded under an ISDA Master Agreement are governed by a Credit Support Annex to the ISDA Master Agreement.
Collateral requirements are determined at the close of business each day and are typically based on changes in market values for each transaction under an ISDA Master Agreement and netted into one amount for such agreement. Generally, the amount of
collateral due from or to a counterparty is subject to a minimum transfer threshold amount before a transfer is required, which may vary by counterparty. Collateral pledged for the benefit of the Portfolio and/or counterparty is held in segregated
accounts by the Portfolios custodian and cannot be sold, re-pledged, assigned or otherwise used while pledged. The portion of such collateral representing cash, if any, is reflected as deposits for derivatives collateral and, in the case of
cash pledged by a counterparty for the benefit of the Portfolio, a corresponding liability on the Statement of Assets and Liabilities. Securities pledged by the Portfolio as collateral, if any, are identified as such in the Portfolio of Investments.
The fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) by risk exposure at
October 31, 2020 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value
|
|
Risk
|
|
Derivative
|
|
Asset Derivative
|
|
|
Liability Derivative
|
|
|
|
|
|
Equity Price
|
|
Futures contracts
|
|
$
|
252,450
|
(1)
|
|
$
|
(76,285
|
)(1)
|
|
|
|
|
Foreign Exchange
|
|
Forward foreign currency exchange contracts
|
|
|
3,689
|
(2)
|
|
|
(16,616
|
)(3)
|
|
|
|
|
Total
|
|
|
|
$
|
256,139
|
|
|
$
|
(92,901
|
)
|
|
|
|
Derivatives not subject to master netting or similar agreements
|
|
$
|
252,450
|
|
|
$
|
(76,285
|
)
|
|
|
|
Total Derivatives subject to master netting or similar
agreements
|
|
$
|
3,689
|
|
|
$
|
(16,616
|
)
|
(1)
|
Only the current days variation margin on open futures contracts is reported within the Statement of Assets and Liabilities as Receivable or Payable for
variation margin on open financial futures contracts, as applicable.
|
(2)
|
Statement of Assets and Liabilities location: Receivable for open forward foreign currency exchange contracts.
|
(3)
|
Statement of Assets and Liabilities location: Payable for open forward foreign currency exchange contracts.
|
Global Income Builder Portfolio
October 31, 2020
Notes to Financial Statements continued
The Portfolios derivative assets and liabilities at fair value by risk, which are reported gross in the Statement of Assets and Liabilities, are presented in the table above. The following tables present the
Portfolios derivative assets and liabilities by counterparty, net of amounts available for offset under a master netting agreement and net of the related collateral received by the Portfolio for such assets and pledged by the Portfolio for
such liabilities as of October 31, 2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Counterparty
|
|
Derivative Assets
Subject to
Master Netting
Agreement
|
|
|
Derivatives
Available
for Offset
|
|
|
Non-cash
Collateral
Received(a)
|
|
|
Cash
Collateral
Received(a)
|
|
|
Net Amount
of Derivative
Assets(b)
|
|
|
|
|
|
|
|
Bank of America, N.A.
|
|
$
|
6
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
6
|
|
|
|
|
|
|
|
State Street Bank and Trust Company
|
|
|
3,683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,683
|
|
|
|
|
|
|
|
|
|
$
|
3,689
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
3,689
|
|
|
|
|
|
|
|
Counterparty
|
|
Derivative Liabilities
Subject to
Master Netting
Agreement
|
|
|
Derivatives
Available
for Offset
|
|
|
Non-cash
Collateral
Pledged(a)
|
|
|
Cash
Collateral
Pledged(a)
|
|
|
Net Amount
of Derivative
Liabilities(c)
|
|
|
|
|
|
|
|
Citibank, N.A.
|
|
$
|
(16,616
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(16,616
|
)
|
|
|
|
|
|
|
|
|
$
|
(16,616
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(16,616
|
)
|
(a)
|
In some instances, the total collateral received and/or pledged may be more than the amount shown due to over collateralization.
|
(b)
|
Net amount represents the net amount due from the counterparty in the event of default.
|
(c)
|
Net amount represents the net amount payable to the counterparty in the event of default.
|
The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations by risk exposure
for the year ended October 31, 2020 was as follows:
|
|
|
|
|
|
|
|
|
|
|
Risk
|
|
Derivative
|
|
Realized Gain (Loss)
on Derivatives Recognized
in Income(1)
|
|
|
Change in Unrealized
Appreciation (Depreciation) on
Derivatives Recognized in
Income(2)
|
|
|
|
|
|
Equity Price
|
|
Futures contracts
|
|
$
|
2,793,487
|
|
|
$
|
176,165
|
|
|
|
|
|
Foreign Exchange
|
|
Forward foreign currency exchange contracts
|
|
|
(1,240,277
|
)
|
|
|
(12,927
|
)
|
|
|
|
|
Total
|
|
|
|
$
|
1,553,210
|
|
|
$
|
163,238
|
|
(1)
|
Statement of Operations location: Net realized gain (loss) Financial futures contracts and Forward foreign currency exchange contracts, respectively.
|
(2)
|
Statement of Operations location: Change in unrealized appreciation (depreciation) Financial futures contracts and Forward foreign currency exchange
contracts, respectively.
|
The average notional cost of futures contracts and average notional amounts of other derivative contracts
outstanding during the year ended October 31, 2020, which are indicative of the volume of these derivative types, were approximately as follows:
|
|
|
|
|
|
|
|
|
|
|
Futures
Contracts Long
|
|
|
Futures
Contracts Short
|
|
|
Forward Foreign
Currency Exchange Contracts*
|
|
|
|
|
|
$10,942,000
|
|
|
|
$11,126,000
|
|
|
$
|
6,146,000
|
|
*
|
The average notional amount for forward foreign currency exchange contracts is based on the absolute value of notional amounts of currency purchased and
currency sold.
|
Global Income Builder Portfolio
October 31, 2020
Notes to Financial Statements continued
6 Line of Credit
The Portfolio participates with other portfolios and funds managed by EVM
and its affiliates in an $800 million unsecured line of credit agreement with a group of banks, which is in effect through October 26, 2021. 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 Eurodollar rate 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. In connection with the renewal of the agreement in October 2020, an upfront fee and arrangement fee totaling $950,000 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, 2020.
7 Investments in Affiliated Funds
At October 31, 2020, the value of the Portfolios investment in affiliated funds was $1,027,196, which represents 0.4% of the Portfolios net assets.
Transactions in affiliated funds by the Portfolio for the year ended October 31, 2020 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name of affiliated fund
|
|
Value,
beginning
of period
|
|
|
Purchases
|
|
|
Sales
proceeds
|
|
|
Net
realized
gain (loss)
|
|
|
Change in
unrealized
appreciation
(depreciation)
|
|
|
Value, end
of period
|
|
|
Dividend
income
|
|
|
Units, end
of period
|
|
|
Short-Term Investments
|
|
|
|
|
|
|
|
|
|
|
Eaton Vance Cash Reserves Fund, LLC
|
|
$
|
1,345,311
|
|
|
$
|
134,328,107
|
|
|
$
|
(134,643,830
|
)
|
|
$
|
(2,391
|
)
|
|
$
|
(1
|
)
|
|
$
|
1,027,196
|
|
|
$
|
19,862
|
|
|
|
1,027,196
|
|
8 Fair Value Measurements
Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The
three-tier hierarchy of inputs is summarized in the three broad levels listed below.
|
|
Level 1 quoted prices in active markets for identical investments
|
|
|
Level 2 other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
|
|
|
Level 3 significant unobservable inputs (including a funds own assumptions in determining the fair value of investments)
|
In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is
determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those
securities.
At October 31, 2020, the hierarchy of inputs used in valuing the Portfolios investments and open derivative instruments, which
are carried at value, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Description
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3*
|
|
|
Total
|
|
|
|
|
|
|
Common Stocks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Communication Services
|
|
$
|
11,835,157
|
|
|
$
|
3,778,376
|
|
|
$
|
|
|
|
$
|
15,613,533
|
|
|
|
|
|
|
Consumer Discretionary
|
|
|
10,351,632
|
|
|
|
8,338,266
|
|
|
|
|
|
|
|
18,689,898
|
|
|
|
|
|
|
Consumer Staples
|
|
|
2,706,305
|
|
|
|
6,804,194
|
|
|
|
|
|
|
|
9,510,499
|
|
|
|
|
|
|
Energy
|
|
|
3,116,983
|
|
|
|
455,443
|
|
|
|
|
|
|
|
3,572,426
|
|
|
|
|
|
|
Financials
|
|
|
9,361,237
|
|
|
|
8,310,994
|
|
|
|
|
|
|
|
17,672,231
|
|
|
|
|
|
|
Health Care
|
|
|
10,140,597
|
|
|
|
10,790,674
|
|
|
|
|
|
|
|
20,931,271
|
|
|
|
|
|
|
Industrials
|
|
|
6,337,766
|
|
|
|
12,109,282
|
|
|
|
0
|
|
|
|
18,447,048
|
|
|
|
|
|
|
Information Technology
|
|
|
20,358,056
|
|
|
|
11,210,646
|
|
|
|
|
|
|
|
31,568,702
|
|
|
|
|
|
|
Materials
|
|
|
|
|
|
|
4,588,126
|
|
|
|
|
|
|
|
4,588,126
|
|
|
|
|
|
|
Real Estate
|
|
|
2,219,351
|
|
|
|
|
|
|
|
|
|
|
|
2,219,351
|
|
|
|
|
|
|
Utilities
|
|
|
2,444,920
|
|
|
|
1,364,047
|
|
|
|
|
|
|
|
3,808,967
|
|
|
|
|
|
|
Total Common Stocks
|
|
$
|
78,872,004
|
|
|
$
|
67,750,048
|
**
|
|
$
|
0
|
|
|
$
|
146,622,052
|
|
Global Income Builder Portfolio
October 31, 2020
Notes to Financial Statements continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Description
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3*
|
|
|
Total
|
|
|
|
|
|
|
Preferred Stocks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Staples
|
|
$
|
|
|
|
$
|
467,415
|
|
|
$
|
|
|
|
$
|
467,415
|
|
|
|
|
|
|
Energy
|
|
|
505,699
|
|
|
|
|
|
|
|
|
|
|
|
505,699
|
|
|
|
|
|
|
Financials
|
|
|
873,952
|
|
|
|
120,420
|
|
|
|
|
|
|
|
994,372
|
|
|
|
|
|
|
Industrials
|
|
|
312,636
|
|
|
|
|
|
|
|
|
|
|
|
312,636
|
|
|
|
|
|
|
Real Estate
|
|
|
594,192
|
|
|
|
|
|
|
|
|
|
|
|
594,192
|
|
|
|
|
|
|
Utilities
|
|
|
331,500
|
|
|
|
85,288
|
|
|
|
|
|
|
|
416,788
|
|
|
|
|
|
|
Total Preferred Stocks
|
|
$
|
2,617,979
|
|
|
$
|
673,123
|
|
|
$
|
|
|
|
$
|
3,291,102
|
|
|
|
|
|
|
Corporate Bonds & Notes
|
|
$
|
|
|
|
$
|
103,367,056
|
|
|
$
|
|
|
|
$
|
103,367,056
|
|
|
|
|
|
|
Senior Floating-Rate Loans (Less Unfunded Loan Commitments)
|
|
|
|
|
|
|
2,841,340
|
|
|
|
|
|
|
|
2,841,340
|
|
|
|
|
|
|
Convertible Bonds
|
|
|
|
|
|
|
218,121
|
|
|
|
|
|
|
|
218,121
|
|
|
|
|
|
|
Exchange-Traded Funds
|
|
|
1,023,730
|
|
|
|
|
|
|
|
|
|
|
|
1,023,730
|
|
|
|
|
|
|
Convertible Preferred Stocks
|
|
|
104,160
|
|
|
|
|
|
|
|
|
|
|
|
104,160
|
|
|
|
|
|
|
Warrants
|
|
|
29,814
|
|
|
|
|
|
|
|
|
|
|
|
29,814
|
|
|
|
|
|
|
Short-Term Investments
|
|
|
|
|
|
|
1,027,196
|
|
|
|
|
|
|
|
1,027,196
|
|
|
|
|
|
|
Total Investments
|
|
$
|
82,647,687
|
|
|
$
|
175,876,884
|
|
|
$
|
0
|
|
|
$
|
258,524,571
|
|
|
|
|
|
|
Forward Foreign Currency Exchange Contracts
|
|
$
|
|
|
|
$
|
3,689
|
|
|
$
|
|
|
|
$
|
3,689
|
|
|
|
|
|
|
Futures Contracts
|
|
|
252,450
|
|
|
|
|
|
|
|
|
|
|
|
252,450
|
|
|
|
|
|
|
Total
|
|
$
|
82,900,137
|
|
|
$
|
175,880,573
|
|
|
$
|
0
|
|
|
$
|
258,780,710
|
|
|
|
|
|
|
Liability Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Foreign Currency Exchange Contracts
|
|
$
|
|
|
|
$
|
(16,616
|
)
|
|
$
|
|
|
|
$
|
(16,616
|
)
|
|
|
|
|
|
Futures Contracts
|
|
|
(76,285
|
)
|
|
|
|
|
|
|
|
|
|
|
(76,285
|
)
|
|
|
|
|
|
Total
|
|
$
|
(76,285
|
)
|
|
$
|
(16,616
|
)
|
|
$
|
|
|
|
$
|
(92,901
|
)
|
*
|
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
in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended October 31, 2020 is not presented.
9 Risks and Uncertainties
Risks Associated with Foreign Investments
Investing in securities issued by companies whose principal business activities are outside the United States may involve significant risks not present in domestic
investments. For example, there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Certain foreign issuers are generally
not bound by uniform accounting, auditing, and
financial reporting requirements and standards of practice comparable to those applicable to domestic
issuers. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitation on the removal of funds or other assets of the Portfolio,
political or financial instability or diplomatic and other developments which could affect such investments. Foreign securities markets, while growing in volume and sophistication, are generally not as developed as those in the United States, and
securities of some foreign issuers (particularly those located in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of
foreign securities markets, broker/dealers and issuers than in the United States.
Pandemic Risk
An outbreak of respiratory disease caused by a novel coronavirus was first detected in China in December 2019 and subsequently spread internationally. This
coronavirus has resulted in closing borders, enhanced health screenings, changes to healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and
uncertainty. Health crises caused by outbreaks, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and economic risks and disrupt normal market conditions and operations. The impact of this
Global Income Builder Portfolio
October 31, 2020
Notes to Financial Statements continued
outbreak has negatively affected the worldwide economy, the economies of individual countries, individual companies, and the market in general, and may continue to do so in significant and unforeseen ways, as may
other epidemics and pandemics that may arise in the future. Any such impact could adversely affect the Portfolios performance, or the performance of the securities in which the Portfolio invests.
10 Additional Information
On
October 8, 2020, Morgan Stanley and Eaton Vance Corp. (Eaton Vance) announced that they had entered into a definitive agreement under which Morgan Stanley would acquire Eaton Vance. Under the Investment Company Act of 1940, as
amended, consummation of this transaction may be deemed to result in the automatic termination of an Eaton Vance Funds investment advisory agreement, and, where applicable, any related sub-advisory agreement. On November 24, 2020, the
Portfolios Board approved a new investment advisory agreement and a new sub-advisory agreement. The new investment advisory agreement and new sub-advisory agreement will be presented to Portfolio interest holders for approval, and, if
approved, would take effect upon consummation of the transaction. A special joint meeting of Portfolio interest holders will be held on February 18, 2021, at which the proposed investment advisory agreement and sub-advisory agreement for the
Portfolio will be submitted for approval.
Global Income Builder Portfolio
October 31, 2020
Report of Independent Registered Public Accounting Firm
To the Trustees and Investors of Global Income Builder Portfolio:
Opinion on the Financial
Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Global Income Builder Portfolio (the
Portfolio), including the portfolio of investments, as of October 31, 2020, 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 four years in the period then ended and the period from the start of business, March 28, 2016, to October 31, 2016, 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, 2020, 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 four years in the period then ended and the period from the start of business, March 28, 2016, to October 31, 2016, 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 Portfolios management. Our responsibility is to express an opinion on the Portfolios 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 Portfolios 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 and senior loans owned as of October 31, 2020, by
correspondence with the custodian, brokers and selling or agent banks; when replies were not received from brokers and selling or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our
opinion.
/s/ Deloitte & Touche LLP
Boston,
Massachusetts
December 18, 2020
We have served as
the auditor of one or more Eaton Vance investment companies since 1959.
Eaton Vance
Global Income Builder NextShares
October 31, 2020
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
Funds 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 Funds investments in accordance with the
Liquidity Rule. Under the Program, the administrator assesses, manages, and periodically reviews the Funds liquidity risk, and is responsible for making certain reports to the Funds Board of Trustees/Directors and the Securities and
Exchange Commission (SEC) regarding the liquidity of the Funds 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 Funds 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 Funds Board of Trustees/Directors, the Committee provided a written report to the Funds 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 December 1, 2018 through December 31, 2019 (Review Period). The Program operated effectively during the Review
Period, supporting the administrators 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 Funds prospectus for more information
regarding the Funds exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.
Eaton Vance
Global Income Builder NextShares
October 31, 2020
Management and Organization
Fund Management. The Trustees of Eaton Vance NextShares Trust (the Trust) and Global Income Builder Portfolio (the Portfolio) are responsible for the overall management and supervision of the
Trusts and Portfolios affairs. The Trustees 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.
Trustees and officers of the Trust and the Portfolio hold indefinite terms of office. 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 Trustee and officer is Two International Place, Boston, Massachusetts 02110. As used below, EVC refers to Eaton Vance Corp., EV refers to Eaton Vance, Inc., EVM
refers to Eaton Vance Management, BMR refers to Boston Management and Research and EVD refers to Eaton Vance Distributors, Inc. EVC and EV are the corporate parent and trustee, respectively, of EVM and BMR. EVD is the
Portfolios placement agent and a wholly-owned subsidiary of EVC. Each officer affiliated with Eaton Vance may hold a position with other Eaton Vance affiliates that is comparable to his or her position with EVM listed below. Each Trustee
oversees 143 portfolios (with the exception of Messrs. Faust and Wennerholm and Ms. Frost who oversee 142 portfolios) in the Eaton Vance Complex (including all master and feeder funds in a master feeder structure). Each officer serves as an
officer of certain other Eaton Vance funds. Each Trustee and officer serves until his or her successor is elected.
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Name and Year of Birth
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Trust/Portfolio
Position(s)
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Trustee
Since(1)
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Principal Occupation(s) and Other Directorships
During Past Five Years and Other Relevant Experience
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Interested Trustee
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Thomas E. Faust Jr.
1958
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Trustee
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2007
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Chairman, Chief Executive Officer and President of EVC, Director and President of EV, Chief Executive Officer and President of EVM and BMR, and
Director of EVD. Trustee and/or officer of 142 registered investment companies. Mr. Faust is an interested person because of his positions with EVM, BMR, EVD, EVC and EV, which are affiliates of the Trust and the Portfolio.
Other Directorships in the Last Five Years. Director of EVC and Hexavest Inc. (investment management firm).
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Noninterested Trustees
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Mark R. Fetting
1954
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Trustee
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2016
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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 in the Last Five Years. None.
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Cynthia E. Frost
1961
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Trustee
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2014
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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 in the Last Five Years.
None.
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George J. Gorman
1952
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Trustee
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2014
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Principal at George J. Gorman LLC (consulting firm). Formerly, Senior Partner at Ernst & Young LLP (a registered public accounting
firm) (1974-2009).
Other Directorships in the Last Five Years. Formerly, Trustee of the BofA Funds Series Trust (11 funds) (2011-2014) and of the
Ashmore Funds (9 funds) (2010-2014).
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Valerie A. Mosley
1960
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Trustee
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2014
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Chairwoman and Chief Executive Officer of Valmo Ventures (a consulting and investment firm). Former Partner and Senior Vice President, Portfolio
Manager and Investment Strategist at Wellington Management Company, LLP (investment management firm) (1992-2012). Former Chief Investment Officer, PG Corbin Asset Management (1990-1992). Formerly worked in institutional corporate bond sales at
Kidder Peabody (1986-1990).
Other Directorships in the Last Five Years. Director of DraftKings, Inc. (digital sports entertainment and gaming
company) (since September 2020). Director of Groupon, Inc. (e-commerce provider) (since April 2020). Director of Envestnet, Inc. (provider of intelligent systems for wealth management and financial wellness) (since 2018). Formerly, Director of Dynex
Capital, Inc. (mortgage REIT) (2013-2020).
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Eaton Vance
Global Income Builder NextShares
October 31, 2020
Management and Organization continued
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Name and Year of Birth
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Trust/Portfolio
Position(s)
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Trustee
Since(1)
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Principal Occupation(s) and Other Directorships
During Past Five Years and Other Relevant Experience
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Noninterested Trustees (continued)
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William H. Park
1947
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Chairperson of the Board and Trustee
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2016 (Chairperson) and 2003 (Trustee)
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Private investor. Formerly, Consultant (management and transactional) (2012-2014). Formerly, Chief Financial Officer, Aveon Group L.P. (investment
management firm) (2010-2011). Formerly, Vice Chairman, Commercial Industrial Finance Corp. (specialty finance company) (2006-2010). Formerly, President and Chief Executive Officer, Prizm Capital Management, LLC (investment management firm)
(2002-2005). Formerly, Executive Vice President and Chief Financial Officer, United Asset Management Corporation (investment management firm) (1982-2001). Formerly, Senior Manager, Price Waterhouse (now PricewaterhouseCoopers) (a registered public
accounting firm) (1972-1981).
Other Directorships in the Last Five Years. None.
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Helen Frame Peters
1948
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Trustee
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2008
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Professor of Finance, Carroll School of Management, Boston College. Formerly, Dean, Carroll School of Management, Boston College (2000-2002).
Formerly, Chief Investment Officer, Fixed Income, Scudder Kemper Investments (investment management firm) (1998-1999). Formerly, Chief Investment Officer, Equity and Fixed Income, Colonial Management Associates (investment management firm)
(1991-1998).
Other Directorships in the Last Five Years. None.
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Keith Quinton
1958
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Trustee
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2018
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Private investor, researcher and lecturer. Independent Investment Committee Member at New Hampshire Retirement System (since 2017). Formerly,
Portfolio Manager and Senior Quantitative Analyst at Fidelity Investments (investment management firm) (2001-2014).
Other Directorships in the Last
Five Years. Director (since 2016) and Chairman (since 2019) of New Hampshire Municipal Bond Bank
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Marcus L. Smith
1966
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Trustee
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2018
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Private investor. Member of Posse Boston Advisory Board (foundation) (since 2015). Formerly, Portfolio Manager at MFS Investment Management
(investment management firm) (1994-2017).
Other Directorships in the Last Five Years. 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).
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Susan J. Sutherland
1957
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Trustee
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2015
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Private investor. Director of Ascot Group Limited and certain of its subsidiaries (insurance and reinsurance) (since 2018). Formerly, Director of
Hagerty Holding Corp. (insurance and reinsurance) (2015-2018). Formerly, Associate, Counsel and Partner at Skadden, Arps, Slate, Meagher & Flom LLP (law firm) (1982-2013).
Other Directorships in the Last Five Years. Formerly, Director of Montpelier Re Holdings Ltd. (global provider of customized insurance and reinsurance products) (2013-2015).
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Scott E. Wennerholm
1959
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Trustee
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2016
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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 in the Last Five Years. None.
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Name and Year of Birth
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Trust/Portfolio
Position(s)
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Officer
Since(2)
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Principal Occupation(s)
During Past Five Years
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Principal Officers who are not Trustees
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Edward J. Perkin
1972
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President
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2014
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Vice President and Chief Equity Investment Officer of EVM and BMR. Also Vice President of Calvert Research and Management (CRM).
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Maureen A. Gemma
1960
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Vice President, Secretary and Chief Legal Officer
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2005
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Vice President of EVM and BMR. Also Vice President of CRM.
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Eaton Vance
Global Income Builder NextShares
October 31, 2020
Management and Organization continued
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Name and Year of Birth
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Trust/Portfolio
Position(s)
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Officer
Since(2)
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Principal Occupation(s)
During Past Five Years
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Principal Officers who are not Trustees (continued)
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James F. Kirchner
1967
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Treasurer
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2007
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Vice President of EVM and BMR. Also Vice President of CRM.
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Richard F. Froio
1968
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Chief Compliance Officer
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2017
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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).
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(1)
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Year first appointed to serve as Trustee for a fund in the Eaton Vance family of funds. Each Trustee has served continuously since appointment unless indicated
otherwise.
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(2)
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Year first elected to serve as officer of a fund in the Eaton Vance family of funds when the officer has served continuously. Otherwise, year of most recent
election as an officer of a fund in the Eaton Vance family of funds. Titles may have changed since initial election.
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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 Vances website at www.eatonvance.com or by calling 1-800-262-1122.
Eaton Vance Funds
IMPORTANT NOTICES
Privacy. The Eaton Vance organization is committed to ensuring your financial privacy. Each entity listed below has adopted a
privacy policy and procedures (Privacy Program) Eaton Vance believes is reasonably designed to protect your personal information and to govern when and with whom Eaton Vance may share your personal information.
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At the time of opening an account, Eaton Vance generally requires you to provide us with certain information such as name, address, social security number, tax
status, account numbers, and account balances. This information is necessary for us to both open an account for you and to allow us to satisfy legal requirements such as applicable anti-money laundering reviews and know-your-customer
requirements.
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On an ongoing basis, in the normal course of servicing your account, Eaton Vance may share your information with unaffiliated third parties that perform various
services for Eaton Vance and/or your account. These third parties include transfer agents, custodians, broker/dealers and our professional advisers, including auditors, accountants, and legal counsel. Eaton Vance may additionally share your personal
information with our affiliates.
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We believe our Privacy Program is reasonably designed to protect the confidentiality of your personal information and to prevent unauthorized access to that
information.
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We reserve the right to change our Privacy Program at any time upon proper notification to you. You may want to review our Privacy Program periodically for
changes by accessing the link on our homepage: www.eatonvance.com.
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Our pledge of protecting your personal information applies to the
following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance Investment Counsel, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management (International)
Limited, Eaton Vance Advisers International Ltd., Eaton Vance Global Advisors Limited, Eaton Vance Managements Real Estate Investment Group, Boston Management and Research, Calvert Research and Management, and Calvert Funds. This Privacy
Notice supersedes all previously issued privacy disclosures. For more information about our Privacy Program or about how your personal information may be used, please call 1-800-262-1122.
Delivery of Shareholder Documents. The Securities and Exchange Commission (SEC) permits delivery of only one copy of fund
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. Your broker may household the mailing of your documents indefinitely unless you instruct your broker otherwise. If you would prefer that your Eaton Vance documents not be householded, please
contact your broker. Your instructions that householding not apply to delivery of your Eaton Vance documents will typically be effective within 30 days of receipt by your broker.
Portfolio Holdings. Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) files a schedule of portfolio holdings on
Part F to Form N-PORT with the SEC. Certain information filed on Form N-PORT may be viewed on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR
database on the SECs website at www.sec.gov.
Proxy Voting. From
time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds
and Portfolios Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30,
without charge, upon request, by calling 1-800-262-1122 and by accessing the SECs website at www.sec.gov.
This Page Intentionally Left Blank
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Investment Adviser of Global Income Builder Portfolio
Boston Management and Research
Two
International Place
Boston, MA 02110
Investment Sub-Adviser of Eaton Vance Global Income Builder NextShares and Global Income Builder Portfolio
Eaton Vance Advisers International Ltd.
125 Old Broad Street
London, EC2N 1AR
United Kingdom
Investment Adviser and Administrator of Eaton Vance Global Income Builder NextShares
Eaton Vance Management
Two International
Place
Boston, MA 02110
Distributor*
Foreside Fund Services, LLC
Three Canal Plaza, Suite 100
Portland, ME 04101
Custodian
State Street Bank and Trust Company
State Street Financial Center, One Lincoln Street
Boston, MA 02111
Transfer and Dividend Disbursing Agent
State
Street Bank and Trust Company
State Street Financial Center, One Lincoln Street
Boston, MA 02111
Independent
Registered Public Accounting Firm
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116-5022
Fund Offices
Two International
Place
Boston, MA 02110
*
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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.
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23214 10.31.20