Annual Report December 31, 2022
Eaton Vance
Tax-Managed Buy-Write Income Fund
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Management’s Discussion of Fund Performance†
Economic and Market Conditions
During the 12-month period starting January 1, 2022, the U.S.
equity market was dominated by the ongoing effects of one black swan event -- the COVID-19 pandemic -- and fallout from another -- Russia’s invasion of Ukraine.
As the new year began, investors became increasingly concerned
about the twin threats of inflation and interest rate hikes. As a result, stock performance turned negative -- a sharp about-face from the all-time highs many U.S. equity indexes had posted in late 2021.
In February, Russia’s invasion of Ukraine sent shock
waves through U.S. and global markets, exacerbating inflationary pressures on energy and food costs. The U.S. Federal Reserve (the Fed) -- along with other central banks around the world -- initiated its first interest rate hikes in years.
Investors began to expect the Fed would raise interest rates at
every policy meeting in 2022 and, in turn, worried that aggressive rate hikes could tip the economy into recession. At its June, July, September, and November 2022 policy meetings, the Fed hiked the federal funds rate 0.75% each time -- its first
moves of that magnitude since 1994. Higher interest rates, inflation, and recessionary worries drove stock prices down, with rate-sensitive technology stocks -- star performers earlier in the pandemic -- suffering some of the worst declines.
In October and November 2022, however, U.S. stocks delivered
positive performance for the first time in months. The rally was driven by a combination of better-than-expected company earnings, declining inflation, and hope that the Fed would temper the size of future rate hikes.
But while the Fed indeed delivered a smaller 0.50% rate hike in
December, it raised its expectation of how high rates might go in 2023. As investors digested the news that rates could stay higher for longer than previously expected, equity prices declined in the final month of 2022.
For the period as a whole, the blue-chip Dow Jones Industrial
Average® returned -6.86%; the S&P 500® Index, a broad measure of U.S. stocks, returned -18.11%; and the technology-laden Nasdaq Composite Index returned -32.54%.
Fund Performance
For the 12-month period ended December 31, 2022, Eaton Vance
Tax-Managed Buy-Write Income Fund (the Fund) returned -13.18% at net asset value of its common shares (NAV), outperforming its equity benchmark, the S&P 500® Index (the Index), which returned -18.11%; but underperforming its options
benchmark, the Cboe S&P 500 BuyWrite IndexSM, which returned -11.37%.
The Fund’s options overlay strategy (the options
strategy) -- designed to help limit the Fund’s exposure to market volatility and contribute to current income -- was the largest single contributor to Fund performance relative to the Index during the period. The options strategy may be
beneficial during times of market weakness, but may also detract from performance during periods of market strength. When the market was volatile and trending downward, as it was for much of the period, the option strategy of writing -- that is,
selling -- stock index call options on the Fund’s underlying common stock portfolio helped performance versus the Index, as premium income was relatively strong and these covered calls ended in profits.
The Fund’s common stock portfolio modestly underperformed
the Index. On an individual stock basis, the largest detractors from Fund performance versus the Index were underweight positions in Index components Exxon Mobil Corp. (Exxon Mobil) and ConocoPhillips.
Rising energy prices drove up the stock of major oil and gas
producer Exxon Mobil during the period. Similarly, rising oil prices, a strong balance sheet, and reliable operations boosted the share price of energy exploration and production firm ConocoPhillips.
On a sector basis, stock selections and an overweight position
in the communication services sector; stock selections in the energy sector; and stock selections and an underweight position in the consumer staples sector detracted from Fund performance versus the Index during the period.
In contrast, the largest individual stock contributors to Fund
performance relative to the Index were overweight positions in Marathon Petroleum Corp. (Marathon) and Northrop Grumman Corp. (Northrop Grumman).
As with Exxon Mobil and ConocoPhillips, Marathon’s stock
price rose as oil prices climbed during the period. A large share buyback program and a significant stock dividend increase helped Marathon’s share price as well.
The stock price of Northrop Grumman, one of the world’s
largest weapons manufacturers, benefitted from an increased focus on conventional warfare by the U.S. Congress and the U.S. Department of Defense. Northrop Grumman’s success in leading the development of the B-21 stealth bomber unveiled in
December 2022 was an additional tailwind for its stock.
On a sector basis, contributors to performance versus the Index
during the period included stock selections in the consumer discretionary, information technology, and health care sectors.
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are
historical and are calculated net of management fees and other expenses by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested in accordance with the Fund’s Dividend
Reinvestment Plan. Furthermore, returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Performance at market price will differ from performance at NAV due to variations
in the Fund’s market price versus NAV, which may reflect factors such as fluctuations in supply and demand for Fund shares, changes in Fund distributions, shifting market expectations for the Fund’s future returns and distribution rates,
and other considerations affecting the trading prices of closed-end funds. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance for periods less than or equal
to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month-end, please refer to
eatonvance.com.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Management’s
Discussion of Fund Performance† — continued
Fund Distributions
Pursuant to an exemptive order issued by the Securities and
Exchange Commission (the Order), the Fund is authorized to distribute long-term capital gains to shareholders more frequently than once per year. Pursuant to the Order, the Fund’s Board of Trustees approved a Managed Distribution Plan (MDP)
pursuant to which the Fund makes monthly cash distributions to common shareholders. The Fund’s MDP had no effect on the Fund’s investment strategy during the most recent fiscal year and is not expected to have an effect in future
periods, but distributions in excess of Fund returns will cause its per share NAV to erode. Investors should not draw any conclusions about the Fund’s investment performance from the amount of its distribution or from the terms of its
MDP.
For the period from January 1, 2022 to October 31,
2022, the Fund made monthly distributions of $0.1080 per share and, for the period from November 1, 2022 to December 31, 2022, the Fund made monthly distributions of $0.0932 per share. The Fund’s distributions may be comprised of amounts
characterized for federal income tax purposes as qualified and non-qualified ordinary dividends, capital gains and non-dividend distributions, also known as return of capital distributions. The federal income tax character of distributions is
determined after the end of the calendar year and reported to shareholders on the Internal Revenue Service’s form 1099-DIV. For additional information, see Note 2 in the Notes to Financial Statements herein.
See Endnotes and
Additional Disclosures in this report.
Past performance
is no guarantee of future results. Returns are historical and are calculated net of management fees and other expenses by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested in
accordance with the Fund’s Dividend Reinvestment Plan. Furthermore, returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Performance at market price will differ
from performance at NAV due to variations in the Fund’s market price versus NAV, which may reflect factors such as fluctuations in supply and demand for Fund shares, changes in Fund distributions, shifting market expectations for the
Fund’s future returns and distribution rates, and other considerations affecting the trading prices of closed-end funds. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their
original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as
of the most recent month-end, please refer to eatonvance.com.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Performance
Portfolio Manager(s) Thomas C.
Seto of Parametric Portfolio Associates LLC and G.R. Nelson of Eaton Vance Management
| %
Average Annual Total Returns1 |
Inception
Date |
One
Year |
Five
Years |
Ten
Years |
| Fund
at NAV |
04/29/2005
|
(13.18)%
|
4.30%
|
7.45%
|
| Fund
at Market Price |
—
|
(16.31)
|
3.90
|
8.14
|
|
| S&P
500® Index |
—
|
(18.11)%
|
9.42%
|
12.56%
|
| Cboe
S&P 500 BuyWrite IndexSM |
—
|
(11.37)
|
2.73
|
5.71
|
| %
Premium/Discount to NAV2 |
|
| As
of period end |
0.38%
|
| Distributions
3 |
|
| Total
Distributions per share for the period |
$1.266
|
| Distribution
Rate at NAV |
8.54%
|
| Distribution
Rate at Market Price |
8.50
|
Growth of $10,000
This graph shows the change in value of a hypothetical
investment of $10,000 in the Fund for the period indicated. For comparison, the same investment is shown in the indicated index.
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are
historical and are calculated net of management fees and other expenses by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested in accordance with the Fund’s Dividend
Reinvestment Plan. Furthermore, returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Performance at market price will differ from performance at NAV due to variations
in the Fund’s market price versus NAV, which may reflect factors such as fluctuations in supply and demand for Fund shares, changes in Fund distributions, shifting market expectations for the Fund’s future returns and distribution rates,
and other considerations affecting the trading prices of closed-end funds. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance for periods less than or equal
to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month-end, please refer to
eatonvance.com.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
| Sector
Allocation (% of total investments)1 |
| Top
10 Holdings (% of total investments)1 |
| Apple,
Inc. |
6.6%
|
| Microsoft
Corp. |
5.9
|
| Amazon.com,
Inc. |
2.3
|
| UnitedHealth
Group, Inc. |
2.2
|
| Johnson
& Johnson |
1.8
|
| Alphabet,
Inc., Class A |
1.8
|
| Berkshire
Hathaway, Inc., Class B |
1.8
|
| Alphabet,
Inc., Class C |
1.7
|
| JPMorgan
Chase & Co. |
1.7
|
| Home
Depot, Inc. (The) |
1.6
|
| Total
|
27.4%
|
Footnotes:
|
1 |
Depictions
do not reflect the Fund’s option positions. Excludes cash and cash equivalents. |
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
The Fund's Investment
Objectives, Principal Strategies and Principal Risks‡
Investment Objectives. The
Fund’s primary investment objective is to provide current income and gains, with a secondary objective of capital appreciation. In pursuing its investment objectives, the Fund will evaluate returns on an after-tax basis, seeking to minimize
and defer shareholder federal income taxes.
Principal Strategies. The
Fund’s strategy consists of owning a portfolio of common stocks and selling covered call options (a “buy-write strategy”). Under normal market conditions, the Fund’s investment program consists primarily of: (1) owning a
diversified portfolio of common stocks that seeks to exceed the total return performance of the S&P 500® Composite Stock Price Index® (the “S&P 500®”); and (2) selling S&P 500® call options on a
continuous basis on substantially the full value of its holdings of common stocks. Under normal market conditions, the Fund invests at least 80% of its total assets in a diversified portfolio of common stocks that seeks to exceed the total return
performance of the S&P 500®.
Due to tax
considerations, the Fund intends to limit the overlap between its stock portfolio holdings (and any subset thereof) and the S&P 500® to less than 70% on an ongoing basis. The Fund’s stock holdings may include stocks not included in
the S&P 500®.
The Fund expects to sell index
call options on a continuous basis on substantially the full value of its holdings of common stocks. Under normal conditions, at least 80% of the value of the Fund’s total assets are subject to written index call options.
The Fund invests primarily in common stocks of U.S. issuers.
The Fund may invest up to 10% of its total assets in securities of foreign issuers, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”).
The Fund normally expects that its assets will be invested across a broad range of industries and market sectors. Stocks included in the S&P 500® generally have growth characteristics. The Fund may invest a portion of its assets in stocks
of mid-capitalization companies.
In addition to writing
index call options, the Fund may invest up to 20% of its total assets in other derivative investments acquired for hedging, risk management and investment purposes, provided that no more than 10% of the Fund’s total assets may be invested in
such derivative instruments acquired for non-hedging purposes. To seek to protect against price declines in securities holdings with large accumulated gains, the Fund may use various hedging techniques (such as the sale of futures contracts on
stocks and stock indices and options thereon, equity swaps, covered short sales and forward sales of stocks).
Principal Risks
Market Discount Risk. As with
any security, the market value of the common shares may increase or decrease from the amount initially paid for the common shares. The Fund’s common shares have traded both at a premium and at a discount relative to NAV. The shares of
closed-end management investment companies frequently trade at a discount from their NAV. This is a risk separate and distinct from the risk that the Fund’s NAV may decrease.
Market Risk. The value of
investments held by the Fund may increase or decrease in response to social, economic, political, financial, public health crises or other disruptive events (whether real, expected or perceived) in the U.S. and global markets and include events such
as war, natural disasters, epidemics and pandemics, terrorism, conflicts and social unrest. These events may negatively impact broad segments of businesses and populations and may exacerbate pre-existing risks to the Fund. The frequency and
magnitude of resulting changes in the value of the Fund’s investments cannot be predicted. Certain securities and other investments held by the Fund may experience increased volatility, illiquidity, or other potentially adverse effects in
reaction to changing market conditions. Monetary and/or fiscal actions taken by U.S. or foreign governments to stimulate or stabilize the global economy may not be effective and could lead to high market volatility. No active trading market may
exist for certain investments held by the Fund, which may impair the ability of the Fund to sell or to realize the current valuation of such investments in the event of the need to liquidate such assets.
Equity Securities Risk. The
value of equity securities and related instruments may decline in response to adverse changes in the economy or the economic outlook; deterioration in investor sentiment; interest rate, currency, and commodity price fluctuations; adverse
geopolitical, social or environmental developments; issuer and sector-specific considerations; unexpected trading activity among retail investors; or other factors. Market conditions may affect certain types of stocks to a greater extent than other
types of stocks. If the stock market declines in value, the value of the Fund’s equity securities will also likely decline. Although prices can rebound, there is no assurance that values will return to previous levels.
Option Strategy Risk. The
Fund’s option strategy seeks to take advantage of, and its effectiveness is dependent on, a general excess of option price implied volatilities for the S&P 500® over realized index volatilities. This market observation is often
attributed to an excess of natural buyers over natural sellers of S&P 500® index options. There can be no assurance that this imbalance will apply in the future over specific periods or generally. It is possible that the imbalance could
decrease or be eliminated by actions of investors, including the Fund, that employ strategies seeking to take advantage of the imbalance, which could have an adverse effect on the Fund’s ability to achieve its investment
objective.
Risk of Selling Index Call Options. The purchaser of an index call option has the right to any appreciation in the value of the index over the exercise price of the call option as of the valuation date of the option. Because their exercise is settled in
cash, sellers of index call options such as the Fund cannot provide in advance for their potential settlement obligations by acquiring and holding the underlying securities. The Fund intends to mitigate the risks of its options activities by holding
a diversified portfolio of stocks that the Fund’s investment adviser believes collectively approximate the characteristics of the indices on which options are written. The Fund will not, however, hold stocks that fully replicate the indices on
which it writes call options. Due to tax considerations, the Fund intends to limit the overlap between its stock holdings (and any subset thereof) and each index on which it has outstanding options positions to less than 70% on an ongoing basis. The
Fund’s stock holdings will normally include stocks not included in the indices on which it writes call options. Consequently, the Fund bears the risk that the performance of its stock portfolio will vary from the performance of the indices on
which
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
The Fund's Investment
Objectives, Principal Strategies and Principal Risks‡ — continued
it writes call options. As the writer of index call options, the Fund will
forgo, during the option’s life, the opportunity to profit from increases in the value of the applicable index above the sum of the option premium received and the exercise price of the call option, but retains the risk of loss, minus the
option premium received, should the value of the applicable index decline. When a call option is exercised, the Fund will be required to deliver an amount of cash determined by the excess of the value of the applicable index at contract termination
over the exercise price of the option. Thus, the exercise of index call options sold by the Fund may require the Fund to sell portfolio securities to generate cash at inopportune times or for unattractive prices.
The trading price of options may be adversely affected if the
market for such options becomes less liquid or smaller. The Fund may close out a call option by buying the option instead of letting it expire or be exercised. There can be no assurance that a liquid market will exist when the Fund seeks to close
out a call option position by buying the option.
Derivatives Risk. The
Fund’s exposure to derivatives involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other investments. The use of derivatives can lead to losses because of adverse movements in
the price or value of the security, instrument, index, currency, commodity, economic indicator or event underlying a derivative (“reference instrument”), due to failure of a counterparty or due to tax or regulatory constraints.
Derivatives may create leverage in the Fund, which represents a non-cash exposure to the underlying reference instrument. Leverage can increase both the risk and return potential of the Fund. Derivatives risk may be more significant when derivatives
are used to enhance return or as a substitute for a cash investment position, rather than solely to hedge the risk of a position held by the Fund. Use of derivatives involves the exercise of specialized skill and judgment, and a transaction may be
unsuccessful in whole or in part because of market behavior or unexpected events. Changes in the value of a derivative (including one used for hedging) may not correlate perfectly with the underlying reference instrument. Derivative instruments
traded in over-the-counter markets may be difficult to value, may be illiquid, and may be subject to wide swings in valuation caused by changes in the value of the underlying reference instrument. If a derivative’s counterparty is unable to
honor its commitments, the value of Fund shares may decline and the Fund could experience delays in (or be unable to achieve) the return of collateral or other assets held by the counterparty. The loss on derivative transactions may substantially
exceed the initial investment. A derivative investment also involves the risks relating to the reference instrument underlying the investment.
Tax-Sensitive Investing Risk.
The Fund may hold a security in order to achieve more favorable tax-treatment or to sell a security in order to create tax losses. The Fund’s utilization of various tax-management techniques may be curtailed or eliminated by tax legislation,
regulation or interpretations. The Fund may not be able to minimize taxable distributions to shareholders and a portion of the Fund’s distributions may be taxable.
Foreign Investment Risk.
Foreign investments can be adversely affected by political, economic and market developments abroad, including the imposition of economic and other sanctions by the United States or another country against a particular country or countries,
organizations entities and/or individuals. There may be less publicly available information about foreign issuers because they may not be subject to reporting practices, requirements or regulations comparable to those to which United States
companies are subject. Adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. Foreign markets may be smaller, less liquid and more volatile than the
major markets in the United States, and as a result, Fund share values may be more volatile. Trading in foreign markets typically involves higher expense than trading in the United States. The Fund may have difficulties enforcing its legal or
contractual rights in a foreign country. Depositary receipts are subject to many of the risks associated with investing directly in foreign instruments.
Currency Risk. Exchange rates
for currencies fluctuate daily. The value of foreign investments may be affected favorably or unfavorably by changes in currency exchange rates in relation to the U.S. dollar. Currency markets generally are not as regulated as securities markets and
currency transactions are subject to settlement, custodial and other operational risks.
Liquidity Risk. The Fund is
exposed to liquidity risk when trading volume, lack of a market maker or trading partner, large position size, market conditions, or legal restrictions impair its ability to sell particular investments or to sell them at advantageous market prices.
Consequently, the Fund may have to accept a lower price to sell an investment or continue to hold it or keep the position open, sell other investments to raise cash or abandon an investment opportunity, any of which could have a negative effect on
the Fund’s performance. These effects may be exacerbated during times of financial or political stress.
Interest Rate Risk. The
premiums from writing index call options and amounts available for distribution from the Fund’s options activity may decrease in declining interest rate environments. The value of the Fund’s common stock investments may also be
influenced by changes in interest rates. Higher yielding stocks and stocks of issuers whose businesses are substantially affected by changes in interest rates may be particularly sensitive to interest rate risk.
Inflation Risk. Inflation risk
is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of money. As inflation increases, the real value of the Common Shares and distributions thereon can
decline.
Dividend Capture Trading Risk. The use of dividend capture strategies will expose the Fund to higher portfolio turnover, increased trading costs and potential for capital loss or gain, particularly in the event of significant short-term price
movements of stocks subject to dividend capture trading.
Risk of Investing in Smaller and Mid-Sized Companies. The Fund may make investments in stocks of companies whose market capitalization is considered middle sized or “mid-cap.” Smaller and mid-sized companies often are newer or less established companies than
larger companies. Investments in smaller and mid-sized companies carry additional risks because earnings of these companies tend to be less predictable; they often have limited product lines,
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
The Fund's Investment
Objectives, Principal Strategies and Principal Risks‡ — continued
markets, distribution channels or financial resources; and the management of
such companies may be dependent upon one or a few key people. The market movements of equity securities of smaller and mid-sized companies may be more abrupt or erratic than the market movements of equity securities of larger, more established
companies or the stock market in general. Historically, smaller and mid-sized companies have sometimes gone through extended periods when they did not perform as well as larger companies. In addition, equity securities of smaller and mid-sized
companies generally are less liquid than those of larger companies. This means that the Fund could have greater difficulty selling such securities at the time and price that the Fund would like.
Risk of “Growth” Stock Investing. The Fund invests substantially in stocks with “growth” characteristics. Growth stocks can react differently to issuer, political, market and economic developments than the market as a whole and other types
of stocks. Growth stocks tend to be more expensive relative to their earnings or assets compared to other types of stocks. As a result, growth stocks tend to be sensitive to changes in their earnings and more volatile than other types of
stocks.
Leverage Risk. Certain Fund transactions may give rise to leverage. Leverage can result from a non-cash exposure to an underlying reference instrument. Leverage can also result from borrowings or issuance of preferred shares. Leverage
can increase both the risk and return potential of the Fund. The Fund may be required to segregate liquid assets or otherwise cover the Fund’s obligation created by a transaction that may give rise to leverage. The use of leverage may cause
the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet segregation requirements. Leverage may cause the Fund’s NAV to be more volatile than if it had not been leveraged, as
certain types of leverage may exaggerate the effect of any increase or decrease in the Fund’s portfolio securities. The loss on leveraged investments may substantially exceed the initial investment.
Risks Associated with Active Management. The success of the Fund’s investment strategy depends on portfolio management’s successful application of analytical skills and investment judgment. Active management involves subjective decisions and there
is no guarantee that such decisions will produce the desired results or expected returns.
Recent Market Conditions. An
outbreak of respiratory disease caused by a novel coronavirus was first detected in China in late 2019 and subsequently spread internationally. This coronavirus has resulted in closing borders, enhanced health screenings, changes to healthcare
service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this coronavirus has resulted in a substantial economic downturn, which may
continue for an extended period of time. Health crises caused by outbreaks of disease, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and economic risks and disrupt normal market conditions and operations. The
impact of this outbreak has negatively affected the worldwide economy, as well as the economies of individual countries and industries, and could continue to affect the market in significant and unforeseen ways. Other epidemics and pandemics that
may arise in the future may have similar effects. For example, a global pandemic or other widespread health crisis could cause substantial market volatility and exchange trading suspensions and closures. In addition, the increasing
interconnectedness of markets around the world may result in many markets being affected by events or conditions in a single country or region or events affecting a single or small number of issuers. The coronavirus outbreak and public and private
sector responses thereto have led to large portions of the populations of many countries working from home for indefinite periods of time, temporary or permanent layoffs, disruptions in supply chains, and lack of availability of certain goods. The
impact of such responses could adversely affect the information technology and operational systems upon which the Fund and the Fund’s service providers rely, and could otherwise disrupt the ability of the employees of the Fund’s service
providers to perform critical tasks relating to the Fund. Any such impact could adversely affect the Fund’s performance, or the performance of the securities in which the Fund invests and may lead to losses on your investment in the
Fund.
Cybersecurity Risk. With the increased use of technologies by Fund service providers to conduct business, such as the Internet, the Fund is susceptible to operational, information security and related risks. In general, cyber incidents can
result from deliberate attacks or unintentional events. Cybersecurity failures by or breaches of the Fund’s investment adviser or administrator and other service providers (including, but not limited to, the custodian or transfer agent), and
the issuers of securities in which the Fund invests, may disrupt and otherwise adversely affect their business operations. This may result in financial losses to the Fund, impede Fund trading, interfere with the Fund’s ability to calculate its
net asset value, interfere with Fund shareholders’ ability to transact business or cause violations of applicable privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, or
additional compliance costs.
General Fund Investing
Risk. The Fund is not a complete investment program and there is no guarantee that the Fund will achieve its investment objective. It is possible to lose money by investing in the Fund. An investment in the Fund is
not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Potential Conflicts of Interest
As a diversified global financial services firm, Morgan
Stanley, the parent company of the investment adviser, engages in a broad spectrum of activities where Morgan Stanley’s interests or the interests of its clients may conflict with the interests of the Fund. Morgan Stanley advises clients and
sponsors, manages or advises other investment funds and investment programs, accounts and businesses (collectively, together with any new or successor Morgan Stanley funds, programs, accounts or businesses, (other than funds, programs, accounts or
businesses sponsored, managed, or advised by former direct or indirect subsidiaries of Eaton Vance Corp. (“Eaton Vance Investment Accounts”)), the “MS Investment Accounts,” and, together with the Eaton Vance Investment
Accounts, the ‘‘Affiliated Investment Accounts’’) with a wide variety of investment objectives that in some instances may overlap or conflict with a Fund’s investment objectives and present conflicts of interest. There
is no assurance that conflicts of interest will be resolved in favor of Fund shareholders and, in fact, they may not be. Conflicts of interest not described below may also exist.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
The Fund's Investment
Objectives, Principal Strategies and Principal Risks‡ — continued
Material Non-public Information. It is expected that confidential or material non-public information regarding an investment or potential investment opportunity may become available to the investment adviser. If such information becomes available, the
investment adviser may be precluded (including by applicable law or internal policies or procedures) from pursuing an investment or disposition opportunity with respect to such investment or investment opportunity. Morgan Stanley has established
certain information barriers and other policies to address the sharing of information between different businesses within Morgan Stanley.
Investments by Morgan Stanley and its Affiliated Investment
Accounts. In serving in multiple capacities to Affiliated Investment Accounts, Morgan Stanley, including the investment adviser and its investment teams, may have obligations to other clients or investors in
Affiliated Investment Accounts, the fulfillment of which may not be in the best interests of a Fund or its shareholders. A Fund’s investment objectives may overlap with the investment objectives of certain Affiliated Investment Accounts. As a
result, the members of an investment team may face conflicts in the allocation of investment opportunities among a Fund and other investment funds, programs, accounts and businesses advised by or affiliated with the investment adviser. Certain
Affiliated Investment Accounts may provide for higher management or incentive fees or greater expense reimbursements or overhead allocations, all of which may contribute to this conflict of interest and create an incentive for the investment adviser
to favor such other accounts. To seek to reduce potential conflicts of interest and to attempt to allocate investment opportunities in a fair and equitable manner, the investment adviser has implemented allocation policies and procedures. These
policies and procedures are intended to give all clients of the investment adviser, including the Fund(s), fair access to investment opportunities, consistent with the requirements of organizational documents, investment strategies, applicable laws
and regulations, and the fiduciary duties of the investment adviser.
Investments by Separate Investment Departments. The entities and individuals that provide investment-related services for the Fund and certain other Eaton Vance Investment Accounts (the “Eaton Vance Investment Department”) may be different from the
entities and individuals that provide investment-related services to MS Investment Accounts (the “MS Investment Department” and, together with the Eaton Vance Investment Department, the “Investment Departments”). Although
Morgan Stanley has implemented information barriers between the Investment Departments in accordance with internal policies and procedures, each Investment Department may engage in discussions and share information and resources with the other
Investment Department on certain investmentrelated matters. A MS Investment Account could trade in advance of a Fund (and vice versa), might complete trades more quickly and efficiently than a Fund, and/or achieve different execution than a Fund on
the same or similar investments made contemporaneously.
Morgan Stanley Trading and Principal Investing Activities. Notwithstanding anything to the contrary herein, Morgan Stanley will generally conduct its sales and trading businesses, publish research and analysis, and render investment advice without regard for a Fund’s
holdings, although these activities could have an adverse impact on the value of one or more of the Fund’s investments, or could cause Morgan Stanley to have an interest in one or more portfolio investments that is different from, and
potentially adverse to, that of a Fund.
Morgan
Stanley’s Investment Banking and Other Commercial Activities. Morgan Stanley advises clients on a variety of mergers, acquisitions, restructuring, bankruptcy and financing transactions. Morgan Stanley may act
as an advisor to clients, including other investment funds that may compete with a Fund and with respect to investments that a Fund may hold. Morgan Stanley may give advice and take action with respect to any of its clients or proprietary accounts
that may differ from the advice given, or may involve an action of a different timing or nature than the action taken, by a Fund.
General Process for Potential Conflicts. All of the transactions described above involve the potential for conflicts of interest between the investment adviser, related persons of the investment adviser and/or their clients. The Investment Advisers Act of 1940,
as amended (the “Advisers Act”), the Investment Company Act of 1940, as amended (the “1940 Act”), and the Employee Retirement Income Security Act, as amended (“ERISA”) impose certain requirements designed to
decrease the possibility of conflicts of interest between an investment adviser and its clients. In some cases, transactions may be permitted subject to fulfillment of certain conditions. Certain other transactions may be prohibited. In addition,
the investment adviser has instituted policies and procedures designed to prevent conflicts of interest from arising and, when they do arise, to ensure that it effects transactions for clients in a manner that is consistent with its fiduciary duty
to its clients and in accordance with applicable law.
Important Notice to Shareholders
The following information is a summary of certain changes since
December 31, 2021. This information may not reflect all of the changes that have occurred since you purchased the Fund.
On January 26, 2023, the Fund's Board of Trustees voted to
exempt, on a going forward basis, all prior and, until further notice, new acquisitions of Fund shares that otherwise might be deemed “Control Share Acquisitions” under the Fund's By-Laws from the Control Share Provisions of the Fund's
By-Laws.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Endnotes and
Additional Disclosures
| †
|
The views expressed in this
report are those of the portfolio manager(s) and are current only through the date stated at the top of this page. These views are subject to change at any time based upon market or other conditions, and Eaton Vance and the Fund(s) disclaim any
responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Eaton Vance fund.
This commentary may contain statements that are not historical facts, referred to as “forward-looking statements.” The Fund’s actual future results may differ significantly from those stated in any forward-looking statement,
depending on factors such as changes in securities or financial markets or general economic conditions, the volume of sales and purchases of Fund shares, the continuation of investment advisory, administrative and service contracts, and other risks
discussed from time to time in the Fund’s filings with the Securities and Exchange Commission. |
| ‡ |
The information contained
herein is provided for informational purposes only and does not constitute a solicitation of an offer to buy or sell Fund shares. Common shares of the Fund are available for purchase and sale only at current market prices in secondary market
trading. |
| |
|
| 1 |
S&P 500® Index is
an unmanaged index of large-cap stocks commonly used as a measure of U.S. stock market performance. S&P Dow Jones Indices are a product of S&P Dow Jones Indices LLC (“S&P DJI”) and have been licensed for use. S&P®
and S&P 500® are registered trademarks of S&P DJI; Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); S&P DJI, Dow Jones and their respective affiliates do not sponsor,
endorse, sell or promote the Fund, will not have any liability with respect thereto and do not have any liability for any errors, omissions, or interruptions of the S&P Dow Jones Indices. Cboe S&P 500 BuyWrite IndexSM measures the performance of a hypothetical buy-write strategy on the S&P 500® Index. Unless otherwise stated, index returns do not reflect the effect of any applicable
sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index. |
|
2 |
The shares
of the Fund often trade at a discount or premium to their net asset value. The discount or premium may vary over time and may be higher or lower than what is quoted in this report. For up-to-date premium/discount information, please refer to
https://funds.eatonvance.com/closed-end-fund-prices.php. |
|
3 |
The
Distribution Rate is based on the Fund’s last regular distribution per share in the period (annualized) divided by the Fund’s NAV or market price at the end of the period. The Fund’s distributions may be comprised of amounts
characterized for federal income tax purposes as qualified and non-qualified ordinary dividends, capital gains and nondividend distributions, also known as return of capital. For additional information about nondividend distributions, please refer
to Eaton Vance Closed-End Fund Distribution Notices (19a) posted on our website, eatonvance.com. The Fund will determine the federal income tax character of distributions paid to a shareholder after the end of the calendar year. This is reported on
the IRS form 1099-DIV and provided to the shareholder shortly after each year-end. For information about the tax character of distributions made in prior |
| |
calendar
years, please refer to Performance-Tax Character of Distributions on the Fund’s webpage available at eatonvance.com. In recent years, a significant portion of the Fund’s distributions has been characterized as a return of capital. The
Fund’s distributions are determined by the investment adviser based on its current assessment of the Fund’s long-term return potential. Fund distributions may be affected by numerous factors including changes in Fund performance, the
cost of financing for leverage, portfolio holdings, realized and projected returns, and other factors. As portfolio and market conditions change, the rate of distributions paid by the Fund could change. Subsequent distributions declared, but not
reflected in Fund Performance, reflect an increase of the monthly distribution rate. |
| |
Fund profile subject to
change due to active management. |
| |
Additional Information
|
| |
Dow Jones
Industrial Average® is a price-weighted average of 30 blue-chip stocks that are generally the leaders in their industry. Nasdaq Composite Index is a market capitalization-weighted index of all domestic and international securities listed on
Nasdaq. Source:
Nasdaq, Inc. The information is provided by Nasdaq (with its affiliates, are referred to as the “Corporations”) and Nasdaq’s third party licensors on an “as is” basis and the Corporations make no
guarantees and bear no liability of any kind with respect to the information or the Fund. |
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
| Security
|
Shares
|
Value
|
| Aerospace
& Defense — 1.8% |
| Boeing
Co. (The)(1)(2) |
|
9,288
|
$
1,769,271 |
| Northrop
Grumman Corp.(2) |
|
6,565
|
3,581,930
|
| Raytheon
Technologies Corp.(2) |
|
7,449
|
751,753
|
| Textron,
Inc.(2) |
|
11,648
|
824,678
|
| |
|
|
$ 6,927,632
|
| Air
Freight & Logistics — 0.1% |
| C.H.
Robinson Worldwide, Inc.(2) |
|
4,494
|
$
411,471 |
| |
|
|
$ 411,471
|
| Airlines
— 0.2% |
| Southwest
Airlines Co.(1)(2) |
|
27,333
|
$
920,302 |
| |
|
|
$ 920,302
|
| Auto
Components — 0.2% |
| Lear
Corp.(2) |
|
7,250
|
$
899,145 |
| |
|
|
$ 899,145
|
| Automobiles
— 0.5% |
| Tesla,
Inc.(1)(2) |
|
15,434
|
$
1,901,160 |
| |
|
|
$ 1,901,160
|
| Banks
— 4.5% |
| Bank
of America Corp.(2) |
|
96,896
|
$
3,209,195 |
| Citigroup,
Inc.(2) |
|
31,893
|
1,442,520
|
| Fifth
Third Bancorp(2) |
|
57,446
|
1,884,803
|
| JPMorgan
Chase & Co.(2) |
|
48,977
|
6,567,816
|
| KeyCorp
(2) |
|
54,740
|
953,571
|
| M&T
Bank Corp.(2) |
|
4,618
|
669,887
|
| PNC
Financial Services Group, Inc. (The)(2) |
|
12,436
|
1,964,142
|
| Truist
Financial Corp.(2) |
|
7,171
|
308,568
|
| Wells
Fargo & Co.(2) |
|
6,764
|
279,286
|
| |
|
|
$ 17,279,788
|
| Beverages
— 2.3% |
| Coca-Cola
Co. (The)(2) |
|
52,523
|
$
3,340,988 |
| PepsiCo,
Inc.(2) |
|
30,364
|
5,485,560
|
| |
|
|
$ 8,826,548
|
| Biotechnology
— 2.9% |
| AbbVie,
Inc.(2) |
|
24,718
|
$
3,994,676 |
| Amgen,
Inc.(2) |
|
15,371
|
4,037,039 |
| Security
|
Shares
|
Value
|
| Biotechnology
(continued) |
| Gilead
Sciences, Inc.(2) |
|
27,095
|
$
2,326,106 |
| Moderna,
Inc.(1) |
|
1,725
|
309,845
|
| Vertex
Pharmaceuticals, Inc.(1)(2) |
|
1,850
|
534,243
|
| |
|
|
$ 11,201,909
|
| Building
Products — 0.1% |
| Carrier
Global Corp.(2) |
|
1,693
|
$
69,837 |
| Trane
Technologies PLC |
|
1,269
|
213,306
|
| |
|
|
$ 283,143
|
| Capital
Markets — 1.7% |
| Charles
Schwab Corp. (The)(2) |
|
17,607
|
$
1,465,959 |
| S&P
Global, Inc.(2) |
|
9,305
|
3,116,617
|
| State
Street Corp.(2) |
|
27,413
|
2,126,426
|
| |
|
|
$ 6,709,002
|
| Chemicals
— 1.8% |
| AdvanSix,
Inc.(2) |
|
1,530
|
$
58,171 |
| Corteva,
Inc.(2) |
|
26,850
|
1,578,243
|
| Dow,
Inc.(2) |
|
14,210
|
716,042
|
| Eastman
Chemical Co.(2) |
|
5,817
|
473,736
|
| Ingevity
Corp.(1)(2) |
|
2,787
|
196,316
|
| LyondellBasell
Industries NV, Class A(2) |
|
13,836
|
1,148,803
|
| Sherwin-Williams
Co. (The)(2) |
|
11,939
|
2,833,483
|
| |
|
|
$ 7,004,794
|
| Commercial
Services & Supplies — 0.2% |
| Waste
Management, Inc.(2) |
|
4,649
|
$
729,335 |
| |
|
|
$ 729,335
|
| Communications
Equipment — 1.0% |
| Cisco
Systems, Inc.(2) |
|
83,078
|
$
3,957,836 |
| |
|
|
$ 3,957,836
|
| Construction
& Engineering — 0.2% |
| Quanta
Services, Inc.(2) |
|
4,232
|
$
603,060 |
| |
|
|
$ 603,060
|
| Construction
Materials — 0.2% |
| Vulcan
Materials Co.(2) |
|
5,482
|
$
959,953 |
| |
|
|
$ 959,953
|
| Consumer
Finance — 1.5% |
| American
Express Co.(2) |
|
21,539
|
$
3,182,387 |
11
See Notes to Financial Statements.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Portfolio of
Investments — continued
| Security
|
Shares
|
Value
|
| Consumer
Finance (continued) |
| Discover
Financial Services(2) |
|
25,589
|
$
2,503,372 |
| |
|
|
$ 5,685,759
|
| Containers
& Packaging — 1.0% |
| Avery
Dennison Corp.(2) |
|
13,509
|
$
2,445,129 |
| Packaging
Corp. of America(2) |
|
9,486
|
1,213,354
|
| |
|
|
$ 3,658,483
|
| Distributors
— 0.8% |
| Genuine
Parts Co.(2) |
|
15,809
|
$
2,743,020 |
| LKQ
Corp.(2) |
|
8,433
|
450,406
|
| |
|
|
$ 3,193,426
|
| Diversified
Financial Services — 1.8% |
| Berkshire
Hathaway, Inc., Class B(1)(2) |
|
22,765
|
$
7,032,109 |
| |
|
|
$ 7,032,109
|
| Diversified
Telecommunication Services — 0.8% |
| AT&T,
Inc.(2) |
|
45,021
|
$
828,836 |
| Verizon
Communications, Inc.(2) |
|
61,512
|
2,423,573
|
| |
|
|
$ 3,252,409
|
| Electric
Utilities — 1.3% |
| Constellation
Energy Corp.(2) |
|
7,266
|
$
626,402 |
| Duke
Energy Corp.(2) |
|
8,196
|
844,106
|
| Edison
International(2) |
|
20,090
|
1,278,126
|
| NextEra
Energy, Inc.(2) |
|
7,671
|
641,295
|
| Pinnacle
West Capital Corp.(2) |
|
8,766
|
666,567
|
| Xcel
Energy, Inc.(2) |
|
12,009
|
841,951
|
| |
|
|
$ 4,898,447
|
| Electrical
Equipment — 0.8% |
| Emerson
Electric Co.(2) |
|
29,903
|
$
2,872,482 |
| Generac
Holdings, Inc.(1) |
|
3,668
|
369,221
|
| |
|
|
$ 3,241,703
|
| Energy
Equipment & Services — 0.1% |
| Halliburton
Co. |
|
5,482
|
$
215,717 |
| |
|
|
$ 215,717
|
| Entertainment
— 1.5% |
| Netflix,
Inc.(1)(2) |
|
8,416
|
$
2,481,710 |
| Walt
Disney Co. (The)(1)(2) |
|
36,045
|
3,131,590
|
| |
|
|
$ 5,613,300
|
| Security
|
Shares
|
Value
|
| Equity
Real Estate Investment Trusts (REITs) — 2.1% |
| Apartment
Income REIT Corp.(2) |
|
11,985
|
$
411,205 |
| AvalonBay
Communities, Inc.(2) |
|
10,239
|
1,653,803
|
| Invitation
Homes, Inc. |
|
3,367
|
99,798
|
| Iron
Mountain, Inc.(2) |
|
14,132
|
704,480
|
| ProLogis,
Inc.(2) |
|
22,296
|
2,513,428
|
| SBA
Communications Corp.(2) |
|
1,041
|
291,803
|
| Simon
Property Group, Inc.(2) |
|
17,320
|
2,034,754
|
| Ventas,
Inc.(2) |
|
6,472
|
291,564
|
| |
|
|
$ 8,000,835
|
| Food
& Staples Retailing — 0.9% |
| Costco
Wholesale Corp.(2) |
|
1,938
|
$
884,697 |
| Sysco
Corp.(2) |
|
13,429
|
1,026,647
|
| Walmart,
Inc.(2) |
|
11,365
|
1,611,443
|
| |
|
|
$ 3,522,787
|
| Food
Products — 1.2% |
| Mondelez
International, Inc., Class A(2) |
|
44,414
|
$
2,960,193 |
| Tyson
Foods, Inc., Class A(2) |
|
28,696
|
1,786,326
|
| |
|
|
$ 4,746,519
|
| Health
Care Equipment & Supplies — 2.7% |
| Abbott
Laboratories(2) |
|
43,556
|
$
4,782,013 |
| Baxter
International, Inc.(2) |
|
31,090
|
1,584,657
|
| Stryker
Corp.(2) |
|
14,381
|
3,516,011
|
| Zimmer
Biomet Holdings, Inc.(2) |
|
3,848
|
490,620
|
| |
|
|
$ 10,373,301
|
| Health
Care Providers & Services — 3.1% |
| CVS
Health Corp.(2) |
|
39,004
|
$
3,634,783 |
| UnitedHealth
Group, Inc.(2) |
|
15,785
|
8,368,891
|
| |
|
|
$ 12,003,674
|
| Hotels,
Restaurants & Leisure — 2.5% |
| Booking
Holdings, Inc.(1)(2) |
|
1,292
|
$
2,603,742 |
| Chipotle
Mexican Grill, Inc.(1)(2) |
|
374
|
518,921
|
| Marriott
International, Inc., Class A(2) |
|
6,415
|
955,129
|
| Marriott
Vacations Worldwide Corp.(2) |
|
2,064
|
277,794
|
| McDonald's
Corp.(2) |
|
18,184
|
4,792,030
|
| Travel
+ Leisure Co.(2) |
|
9,305
|
338,702
|
| |
|
|
$ 9,486,318
|
| Household
Durables — 0.5% |
| Leggett
& Platt, Inc.(2) |
|
6,596
|
$
212,589 |
12
See Notes to Financial Statements.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Portfolio of
Investments — continued
| Security
|
Shares
|
Value
|
| Household
Durables (continued) |
| Lennar
Corp., Class A(2) |
|
18,642
|
$
1,687,101 |
| |
|
|
$ 1,899,690
|
| Household
Products — 1.5% |
| Clorox
Co. (The)(2) |
|
6,843
|
$
960,278 |
| Kimberly-Clark
Corp.(2) |
|
11,708
|
1,589,361
|
| Procter
& Gamble Co. (The)(2) |
|
21,151
|
3,205,646
|
| |
|
|
$ 5,755,285
|
| Industrial
Conglomerates — 1.6% |
| 3M
Co.(2) |
|
15,843
|
$
1,899,892 |
| Honeywell
International, Inc.(2) |
|
19,696
|
4,220,853
|
| |
|
|
$ 6,120,745
|
| Insurance
— 3.0% |
| Allstate
Corp. (The)(2) |
|
21,562
|
$
2,923,807 |
| Chubb,
Ltd.(2) |
|
2,741
|
604,665
|
| Cincinnati
Financial Corp.(2) |
|
18,022
|
1,845,273
|
| Lincoln
National Corp.(2) |
|
29,706
|
912,568
|
| Marsh
& McLennan Cos., Inc.(2) |
|
20,466
|
3,386,714
|
| Principal
Financial Group, Inc.(2) |
|
5,042
|
423,125
|
| Prudential
Financial, Inc.(2) |
|
6,075
|
604,219
|
| Travelers
Cos., Inc. (The)(2) |
|
3,902
|
731,586
|
| |
|
|
$ 11,431,957
|
| Interactive
Media & Services — 4.2% |
| Alphabet,
Inc., Class A(1)(2) |
|
79,780
|
$
7,038,989 |
| Alphabet,
Inc., Class C(1)(2) |
|
75,840
|
6,729,283
|
| Meta
Platforms, Inc., Class A(1)(2) |
|
18,873
|
2,271,177
|
| |
|
|
$ 16,039,449
|
| Internet
& Direct Marketing Retail — 2.3% |
| Amazon.com,
Inc.(1)(2) |
|
104,412
|
$
8,770,608 |
| Etsy,
Inc.(1) |
|
1,370
|
164,099
|
| |
|
|
$ 8,934,707
|
| IT
Services — 4.5% |
| Accenture
PLC, Class A(2) |
|
669
|
$
178,516 |
| EPAM
Systems, Inc.(1)(2) |
|
338
|
110,776
|
| Fidelity
National Information Services, Inc.(2) |
|
25,140
|
1,705,749
|
| Global
Payments, Inc. |
|
9,364
|
930,032
|
| International
Business Machines Corp. |
|
907
|
127,787
|
| Mastercard,
Inc., Class A(2) |
|
17,067
|
5,934,708
|
| PayPal
Holdings, Inc.(1)(2) |
|
20,716
|
1,475,394 |
| Security
|
Shares
|
Value
|
| IT
Services (continued) |
| VeriSign,
Inc.(1)(2) |
|
11,895
|
$
2,443,709 |
| Visa,
Inc., Class A(2) |
|
21,879
|
4,545,581
|
| |
|
|
$ 17,452,252
|
| Life
Sciences Tools & Services — 1.7% |
| Danaher
Corp.(2) |
|
6,309
|
$
1,674,535 |
| Thermo
Fisher Scientific, Inc.(2) |
|
8,914
|
4,908,851
|
| |
|
|
$ 6,583,386
|
| Machinery
— 1.0% |
| Caterpillar,
Inc.(2) |
|
3,626
|
$
868,645 |
| PACCAR,
Inc.(2) |
|
3,486
|
345,009
|
| Snap-on,
Inc.(2) |
|
6,380
|
1,457,766
|
| Stanley
Black & Decker, Inc.(2) |
|
8,690
|
652,793
|
| Westinghouse
Air Brake Technologies Corp.(2) |
|
4,982
|
497,253
|
| |
|
|
$ 3,821,466
|
| Media
— 0.9% |
| Comcast
Corp., Class A(2) |
|
97,227
|
$
3,400,028 |
| |
|
|
$ 3,400,028
|
| Multi-Utilities
— 1.9% |
| CenterPoint
Energy, Inc.(2) |
|
15,255
|
$
457,498 |
| CMS
Energy Corp.(2) |
|
38,452
|
2,435,165
|
| DTE
Energy Co.(2) |
|
10,342
|
1,215,495
|
| NiSource,
Inc.(2) |
|
49,999
|
1,370,973
|
| Public
Service Enterprise Group, Inc.(2) |
|
30,431
|
1,864,507
|
| |
|
|
$ 7,343,638
|
| Oil,
Gas & Consumable Fuels — 5.2% |
| Chevron
Corp.(2) |
|
22,089
|
$
3,964,755 |
| ConocoPhillips
|
|
901
|
106,318
|
| Diamondback
Energy, Inc.(2) |
|
19,227
|
2,629,869
|
| DT
Midstream, Inc.(2) |
|
5,171
|
285,749
|
| EOG
Resources, Inc.(2) |
|
14,121
|
1,828,952
|
| Exxon
Mobil Corp.(2) |
|
33,068
|
3,647,400
|
| Kinder
Morgan, Inc.(2) |
|
5,752
|
103,996
|
| Marathon
Petroleum Corp.(2) |
|
26,859
|
3,126,119
|
| Phillips
66(2) |
|
22,582
|
2,350,335
|
| Pioneer
Natural Resources Co.(2) |
|
5,420
|
1,237,874
|
| Valero
Energy Corp.(2) |
|
4,518
|
573,153
|
| Williams
Cos., Inc. (The)(2) |
|
2,785
|
91,627
|
| |
|
|
$ 19,946,147
|
13
See Notes to Financial Statements.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Portfolio of
Investments — continued
| Security
|
Shares
|
Value
|
| Personal
Products — 0.2% |
| Estee
Lauder Cos., Inc. (The), Class A(2) |
|
3,326
|
$
825,214 |
| |
|
|
$ 825,214
|
| Pharmaceuticals
— 5.3% |
| Bristol-Myers
Squibb Co.(2) |
|
41,044
|
$
2,953,116 |
| Eli
Lilly & Co.(2) |
|
4,342
|
1,588,477
|
| Johnson
& Johnson(2) |
|
40,009
|
7,067,590
|
| Merck
& Co., Inc.(2) |
|
49,478
|
5,489,584
|
| Organon
& Co.(2) |
|
3,384
|
94,515
|
| Pfizer,
Inc.(2) |
|
64,933
|
3,327,167
|
| |
|
|
$ 20,520,449
|
| Professional
Services — 0.3% |
| ManpowerGroup,
Inc.(2) |
|
1,193
|
$
99,269 |
| Robert
Half International, Inc.(2) |
|
13,637
|
1,006,820
|
| |
|
|
$ 1,106,089
|
| Real
Estate Management & Development — 0.2% |
| CBRE
Group, Inc., Class A(1)(2) |
|
8,158
|
$
627,840 |
| |
|
|
$ 627,840
|
| Road
& Rail — 1.3% |
| Canadian
Pacific Railway, Ltd.(2) |
|
24,185
|
$
1,803,959 |
| J.B.
Hunt Transport Services, Inc.(2) |
|
2,663
|
464,321
|
| Norfolk
Southern Corp.(2) |
|
11,072
|
2,728,362
|
| |
|
|
$ 4,996,642
|
| Semiconductors
& Semiconductor Equipment — 5.8% |
| Advanced
Micro Devices, Inc.(1)(2) |
|
28,043
|
$
1,816,345 |
| Analog
Devices, Inc.(2) |
|
15,118
|
2,479,805
|
| Applied
Materials, Inc.(2) |
|
15,313
|
1,491,180
|
| Broadcom,
Inc.(2) |
|
8,335
|
4,660,349
|
| Enphase
Energy, Inc.(1)(2) |
|
9,538
|
2,527,188
|
| NVIDIA
Corp.(2) |
|
38,177
|
5,579,187
|
| ON
Semiconductor Corp.(1)(2) |
|
20,088
|
1,252,889
|
| QUALCOMM,
Inc.(2) |
|
10,178
|
1,118,969
|
| Teradyne,
Inc.(2) |
|
16,574
|
1,447,739
|
| |
|
|
$ 22,373,651
|
| Software
— 8.6% |
| Adobe,
Inc.(1)(2) |
|
9,237
|
$
3,108,528 |
| Ceridian
HCM Holding, Inc.(1) |
|
4,805
|
308,241
|
| Intuit,
Inc.(2) |
|
5,665
|
2,204,931
|
| Microsoft
Corp.(2) |
|
95,753
|
22,963,484 |
| Security
|
Shares
|
Value
|
| Software
(continued) |
| Oracle
Corp.(2) |
|
43,643
|
$
3,567,379 |
| Salesforce,
Inc.(1)(2) |
|
5,963
|
790,634
|
| |
|
|
$ 32,943,197
|
| Specialty
Retail — 2.0% |
| Advance
Auto Parts, Inc.(2) |
|
3,365
|
$
494,756 |
| Home
Depot, Inc. (The)(2) |
|
19,796
|
6,252,765
|
| Ross
Stores, Inc.(2) |
|
6,820
|
791,597
|
| |
|
|
$ 7,539,118
|
| Technology
Hardware, Storage & Peripherals — 6.7% |
| Apple,
Inc.(2) |
|
197,497
|
$
25,660,785 |
| |
|
|
$ 25,660,785
|
| Textiles,
Apparel & Luxury Goods — 0.9% |
| NIKE,
Inc., Class B(2) |
|
29,501
|
$
3,451,912 |
| |
|
|
$ 3,451,912
|
| Tobacco
— 0.7% |
| Philip
Morris International, Inc.(2) |
|
27,713
|
$
2,804,833 |
| |
|
|
$ 2,804,833
|
| Trading
Companies & Distributors — 0.2% |
| Fastenal
Co.(2) |
|
20,160
|
$
953,971 |
| |
|
|
$ 953,971
|
Total
Common Stocks
(identified cost $105,538,375) |
|
|
$386,072,316
|
| Short-Term
Investments — 0.3% |
| Security
|
Shares
|
Value
|
| Morgan
Stanley Institutional Liquidity Funds - Government Portfolio, Institutional Class, 4.11%(3) |
|
1,043,069
|
$
1,043,069 |
Total
Short-Term Investments
(identified cost $1,043,069) |
|
|
$ 1,043,069
|
Total
Investments — 100.6%
(identified cost $106,581,444) |
|
|
$387,115,385
|
Total
Written Call Options — (0.7)%
(premiums received $5,267,396) |
|
|
$
(2,525,180) |
| Other
Assets, Less Liabilities — 0.1% |
|
|
$ 257,141
|
| Net
Assets — 100.0% |
|
|
$384,847,346
|
14
See Notes to Financial Statements.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Portfolio of
Investments — continued
| The
percentage shown for each investment category in the Portfolio of Investments is based on net assets. |
|
(1) |
Non-income
producing security. |
|
(2) |
Security
(or a portion thereof) has been pledged as collateral for written options. |
|
(3) |
May
be deemed to be an affiliated investment company. The rate shown is the annualized seven-day yield as of December 31, 2022. |
| Written
Call Options (Exchange-Traded) — (0.7)% |
|
|
|
|
|
|
|
| Description
|
Number
of
Contracts |
Notional
Amount |
Exercise
Price |
Expiration
Date |
Value
|
| S&P
500 Index |
78
|
|
$29,948,100
|
|
$4,100
|
1/3/23
|
$ (585)
|
| S&P
500 Index |
80
|
|
30,716,000
|
|
4,010
|
1/4/23
|
(800)
|
| S&P
500 Index |
79
|
|
30,332,050
|
|
4,035
|
1/6/23
|
(3,555)
|
| S&P
500 Index |
78
|
|
29,948,100
|
|
4,125
|
1/9/23
|
(1,170)
|
| S&P
500 Index |
78
|
|
29,948,100
|
|
4,100
|
1/11/23
|
(3,900)
|
| S&P
500 Index |
80
|
|
30,716,000
|
|
3,925
|
1/13/23
|
(236,000)
|
| S&P
500 Index |
80
|
|
30,716,000
|
|
3,925
|
1/17/23
|
(257,600)
|
| S&P
500 Index |
80
|
|
30,716,000
|
|
3,925
|
1/18/23
|
(281,600)
|
| S&P
500 Index |
80
|
|
30,716,000
|
|
3,890
|
1/20/23
|
(427,600)
|
| S&P
500 Index |
80
|
|
30,716,000
|
|
3,910
|
1/23/23
|
(382,000)
|
| S&P
500 Index |
80
|
|
30,716,000
|
|
3,900
|
1/25/23
|
(446,800)
|
| S&P
500 Index |
81
|
|
31,099,950
|
|
3,900
|
1/27/23
|
(483,570)
|
| Total
|
|
|
|
|
|
|
$(2,525,180)
|
15
See Notes to Financial Statements.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Statement of Assets
and Liabilities
| |
December 31,
2022 |
| Assets
|
|
| Unaffiliated
investments, at value (identified cost $105,538,375) |
$
386,072,316 |
| Affiliated
investment, at value (identified cost $1,043,069) |
1,043,069
|
| Cash
|
850
|
| Dividends receivable
|
357,773
|
| Dividends
receivable from affiliated investment |
6,287
|
| Receivable
for premiums on written options |
421,087
|
| Receivable
from the transfer agent |
44,737
|
| Total
assets |
$387,946,119
|
| Liabilities
|
|
| Written
options outstanding, at value (premiums received $5,267,396) |
$
2,525,180 |
| Payable
to affiliates: |
|
| Investment
adviser fee |
331,891
|
| Trustees'
fees |
7,645
|
| Accrued
expenses |
234,057
|
| Total
liabilities |
$
3,098,773 |
| Net
Assets |
$384,847,346
|
| Sources
of Net Assets |
|
| Common
shares, $0.01 par value, unlimited number of shares authorized |
$
293,681 |
| Additional
paid-in capital |
104,005,069
|
| Distributable
earnings |
280,548,596
|
| Net
Assets |
$384,847,346
|
| Common
Shares Issued and Outstanding |
29,368,146
|
| Net
Asset Value Per Common Share |
|
| Net
assets ÷ common shares issued and outstanding |
$
13.10 |
16
See Notes to Financial Statements.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
| |
Year
Ended |
| |
December
31, 2022 |
| Investment
Income |
|
| Dividend income (net of foreign taxes withheld of $2,092)
|
$
7,330,322 |
| Dividend
income from affiliated investment |
30,874
|
| Total
investment income |
$
7,361,196 |
| Expenses
|
|
| Investment
adviser fee |
$
4,168,015 |
| Trustees’
fees and expenses |
29,510
|
| Custodian
fee |
163,490
|
| Transfer
and dividend disbursing agent fees |
17,946
|
| Legal
and accounting services |
72,829
|
| Printing
and postage |
176,121
|
| Miscellaneous
|
50,591
|
| Total
expenses |
$
4,678,502 |
| Deduct:
|
|
| Waiver
and/or reimbursement of expenses by affiliate |
$
1,871 |
| Total
expense reductions |
$
1,871 |
| Net
expenses |
$
4,676,631 |
| Net
investment income |
$
2,684,565 |
| Realized
and Unrealized Gain (Loss) |
|
| Net
realized gain (loss): |
|
| Investment
transactions |
$
4,419,663 |
| Written
options |
24,131,694
|
| Foreign
currency transactions |
(8)
|
| Net
realized gain |
$
28,551,349 |
| Change
in unrealized appreciation (depreciation): |
|
| Investments
|
$
(97,194,817) |
| Written
options |
5,122,899
|
| Foreign
currency |
(27)
|
| Net
change in unrealized appreciation (depreciation) |
$(92,071,945)
|
| Net
realized and unrealized loss |
$(63,520,596)
|
| Net
decrease in net assets from operations |
$(60,836,031)
|
17
See Notes to Financial Statements.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Statements of Changes
in Net Assets
| |
Year
Ended December 31, |
| |
2022
|
2021
|
| Increase
(Decrease) in Net Assets |
|
|
| From
operations: |
|
|
| Net
investment income |
$
2,684,565 |
$
1,659,894 |
| Net
realized gain |
28,551,349
|
7,404,967
|
| Net
change in unrealized appreciation (depreciation) |
(92,071,945)
|
76,069,884
|
| Net
increase (decrease) in net assets from operations |
$
(60,836,031) |
$
85,134,745 |
| Distributions
to shareholders |
$
(36,344,149) |
$
(2,744,882) |
| Tax
return of capital to shareholders |
$
(601,624) |
$
(32,764,369) |
| Capital
share transactions: |
|
|
| Proceeds
from shelf offering, net of offering costs (see Note 5) |
$
14,353,734 |
$
29,225,977 |
| Reinvestment
of distributions |
598,151
|
568,079
|
| Net
increase in net assets from capital share transactions |
$
14,951,885 |
$
29,794,056 |
| Net
increase (decrease) in net assets |
$
(82,829,919) |
$
79,419,550 |
| Net
Assets |
|
|
| At
beginning of year |
$
467,677,265 |
$
388,257,715 |
| At
end of year |
$384,847,346
|
$467,677,265
|
18
See Notes to Financial Statements.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
| |
Year
Ended December 31, |
| |
2022
|
2021
|
2020
|
2019
|
2018
|
| Net
asset value — Beginning of year |
$
16.440 |
$
14.590 |
$
15.260 |
$
14.040 |
$
16.350 |
| Income
(Loss) From Operations |
|
|
|
|
|
| Net
investment income(1) |
$
0.092 |
$
0.061 |
$
0.133 |
$
0.146 |
$
0.148 |
| Net
realized and unrealized gain (loss) |
(2.189)
|
3.058
|
0.493
|
2.370
|
(1.172)
|
| Total
income (loss) from operations |
$
(2.097) |
$
3.119 |
$
0.626 |
$
2.516 |
$
(1.024) |
| Less
Distributions |
|
|
|
|
|
| From
net investment income |
$
(0.089) |
$
(0.038) |
$
(0.130) |
$
(0.143) |
$
(0.144) |
| From
net realized gain |
(1.156)
|
(0.062)
|
(0.492)
|
(0.422)
|
(0.108)
|
| Tax
return of capital |
(0.021)
|
(1.196)
|
(0.674)
|
(0.731)
|
(1.044)
|
| Total
distributions |
$
(1.266) |
$
(1.296) |
$
(1.296) |
$
(1.296) |
$
(1.296) |
| Premium
from common shares sold through shelf offering (see Note 5)(1) |
$
0.023 |
$
0.027 |
$
— |
$
— |
$
0.010 |
| Net
asset value — End of year |
$
13.100 |
$
16.440 |
$
14.590 |
$
15.260 |
$
14.040 |
| Market
value — End of year |
$
13.150 |
$
17.120 |
$
15.000 |
$
16.400 |
$
13.450 |
| Total
Investment Return on Net Asset Value(2) |
(13.18)%
|
22.40%
|
5.07%
|
18.50%
|
(6.69)%
|
| Total
Investment Return on Market Value(2) |
(16.31)%
|
23.98%
|
0.51%
|
32.93%
|
(12.65)%
|
| Ratios/Supplemental
Data |
|
|
|
|
|
| Net
assets, end of year (000’s omitted) |
$384,847
|
$467,677
|
$388,258
|
$405,503
|
$372,509
|
| Ratios
(as a percentage of average daily net assets): |
|
|
|
|
|
| Expenses
|
1.12%
(3) |
1.10%
|
1.12%
|
1.11%
|
1.11%
|
| Net
investment income |
0.64%
|
0.39%
|
0.97%
|
0.99%
|
0.94%
|
| Portfolio
Turnover |
21%
|
6%
|
8%
|
2%
|
4%
|
|
(1) |
Computed
using average shares outstanding. |
|
(2) |
Returns
are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Fund's dividend reinvestment plan.
|
|
(3) |
Includes
a reduction by the investment adviser of a portion of its adviser fee due to the Fund’s investment in the Liquidity Fund (equal to less than 0.005% of average daily net assets for the year ended December 31, 2022). |
19
See Notes to Financial Statements.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Notes to Financial
Statements
1 Significant Accounting Policies
Eaton Vance Tax-Managed Buy-Write Income Fund (the
Fund) is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a diversified, closed-end management investment company. The Fund's primary investment objective is to provide current
income and gains, with a secondary objective of capital appreciation.
The following is a summary of significant accounting policies
of the Fund. The policies are in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The Fund is an investment company and follows accounting and reporting guidance in the Financial Accounting
Standards Board (FASB) Accounting Standards Codification Topic 946.
A Investment
Valuation—The following methodologies are used to determine the market value or fair value of
investments.
Equity Securities. Equity securities listed on a U.S. securities exchange generally are valued at the last sale or closing price on the day of valuation or, if no sales took place on such date, at the mean between the closing bid and ask
prices on the exchange where such securities are principally traded. Equity securities listed on the NASDAQ National Market System are valued at the NASDAQ official closing price. Unlisted or listed securities for which closing sales prices or
closing quotations are not available are valued at the mean between the latest available bid and ask prices.
Derivatives. U.S.
exchange-traded options are valued at the mean between the bid and ask prices at valuation time as reported by the Options Price Reporting Authority. Non-U.S. exchange-traded options and over-the-counter options are valued by a third party pricing
service using techniques that consider factors including the value of the underlying instrument, the volatility of the underlying instrument and the period of time until option expiration.
Foreign Currencies. Foreign
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.
Other. Investments in management investment companies (including money market funds) that do not trade on an exchange are valued at the net asset value as of the close of each business day.
Fair Valuation. In connection
with Rule 2a-5 of the 1940 Act, which became effective September 8, 2022, the Trustees have designated the Fund’s investment adviser as its valuation designee. Investments for which valuations or market quotations are not readily available or
are deemed unreliable are valued by the investment adviser, as valuation designee, at fair value using methods that most fairly reflect the security’s “fair value”, which is the amount that the Fund might reasonably expect to
receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not
limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies or entities, quotations or
relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company’s or
entity’s financial statements, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
B Investment Transactions—Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized
gains and losses on investments sold are determined on the basis of identified cost.
C Income—Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities.
However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Fund is informed of the ex-dividend date. Withholding taxes on foreign dividends and capital gains have
been provided for in accordance with the Fund’s understanding of the applicable countries’ tax rules and rates.
D Federal
Taxes—The Fund's policy is to comply with the provisions of the Internal Revenue Code applicable
to regulated investment companies and to distribute to shareholders each year substantially all of its net investment income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax
is necessary.
As of December 31, 2022, the Fund
had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. The Fund files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the
Internal Revenue Service for a period of three years from the date of filing.
E Foreign Currency Translation—Other assets and liabilities initially expressed in foreign currencies are translated each business day
into U.S. dollars based upon current exchange rates. 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.
F Use of
Estimates—The preparation of the financial statements in conformity with U.S. GAAP requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those
estimates.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Notes to Financial
Statements — continued
G
Indemnifications—Under the Fund’s organizational documents, its officers and Trustees may be
indemnified against certain liabilities and expenses arising out of the performance of their duties to the Fund. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as the Fund) could be
deemed to have personal liability for the obligations of the Fund. However, the Fund’s Declaration of Trust contains an express disclaimer of liability on the part of Fund shareholders and the By-laws provide that the Fund shall assume, upon
request by the shareholder, the defense on behalf of any Fund shareholders. Moreover, the By-laws also provide for indemnification out of Fund property of any shareholder held personally liable solely by reason of being or having been a shareholder
for all loss or expense arising from such liability. Additionally, in the normal course of business, the Fund enters into agreements with service providers that may contain indemnification clauses. The Fund's maximum exposure under these
arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.
H Written
Options—Upon the writing of a call or a put option, the premium received by the Fund is included in
the Statement of Assets and Liabilities as a liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written, in accordance with the Fund’s policies on investment valuations
discussed above. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or are closed are added to or offset against the proceeds or amount paid on the
transaction to determine the realized gain or loss. When an index option is exercised, the Fund is required to deliver an amount of cash determined by the excess of the exercise price of the option over the value of the index (in the case of a put)
or the excess of the value of the index over the exercise price of the option (in the case of a call) at contract termination. If a put option on a security is exercised, the premium reduces the cost basis of the securities purchased by the Fund.
The Fund, as a writer of an option, may have no control over whether the underlying securities or other assets may be sold (call) or purchased (put) and, as a result, bears the market risk of an unfavorable change in the price of the securities or
other assets underlying the written option. The Fund may also bear the risk of not being able to enter into a closing transaction if a liquid secondary market does not exist.
2 Distributions to Shareholders and Income Tax
Information
Subject to its Managed Distribution Plan, the
Fund makes monthly distributions from its cash available for distribution, which consists of the Fund’s dividends and interest income after payment of Fund expenses, net option premiums and net realized and unrealized gains on stock
investments. The Fund intends to distribute all or substantially all of its net realized capital gains. Distributions are recorded on the ex-dividend date. Distributions to shareholders are determined in accordance with income tax regulations, which
may differ from U.S. GAAP. As required by U.S. GAAP, only distributions in excess of tax basis earnings and profits are reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to
distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income. Distributions in any year may include a substantial return of capital component.
The tax character of distributions declared for the years ended
December 31, 2022 and December 31, 2021 was as follows:
| |
Year
Ended December 31, |
| |
2022
|
2021
|
| Ordinary
income |
$
7,651,116 |
$
1,048,663 |
| Long-term
capital gains |
$28,693,033
|
$
1,696,219 |
| Tax
return of capital |
$
601,624 |
$32,764,369
|
As of December 31, 2022, the
components of distributable earnings (accumulated loss) on a tax basis were as follows:
| Net
unrealized appreciation |
$
280,548,596 |
| Distributable
earnings |
$280,548,596
|
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Notes to Financial
Statements — continued
The
cost and unrealized appreciation (depreciation) of investments, including open derivative contracts, of the Fund at December 31, 2022, as determined on a federal income tax basis, were as follows:
| Aggregate
cost |
$106,566,795
|
| Gross
unrealized appreciation |
$
282,165,078 |
| Gross
unrealized depreciation |
(1,616,488)
|
| Net
unrealized appreciation |
$280,548,590
|
3 Investment Adviser Fee
and Other Transactions with Affiliates
The investment
adviser fee is earned by Eaton Vance Management (EVM), an indirect, wholly-owned subsidiary of Morgan Stanley, as compensation for investment advisory services rendered to the Fund. The fee is computed at an annual rate of 1.00% of the Fund’s
average daily gross assets, as defined in the investment advisory agreement, and is payable monthly. For purposes of this calculation, gross assets represent net assets plus obligations attributable to investment leverage. During the year ended
December 31, 2022, the Fund had no obligations attributable to investment leverage. For the year ended December 31, 2022, the investment adviser fee amounted to $4,168,015.
Pursuant to an investment sub-advisory agreement, EVM has
delegated a portion of the investment management to Parametric Portfolio Associates LLC (Parametric), an affiliate of EVM and an indirect, wholly-owned subsidiary of Morgan Stanley. EVM pays Parametric a portion of its investment adviser fee for
sub-advisory services provided to the Fund. Effective April 26, 2022, the Fund may invest in a money market fund, the Institutional Class of the Morgan Stanley Institutional Liquidity Funds - Government Portfolio (the “Liquidity Fund”),
an open-end management investment company managed by Morgan Stanley Investment Management Inc., a wholly-owned subsidiary of Morgan Stanley. The investment adviser fee paid by the Fund is reduced by an amount equal to its pro-rata share of the
advisory and administration fees paid by the Fund due to its investment in the Liquidity Fund. For the year ended December 31, 2022, the investment adviser fee paid was reduced by $1,871 relating to the Fund’s investment in the Liquidity Fund.
EVM also serves as administrator of the Fund, but receives no compensation.
Trustees and officers of the Fund who are members of
EVM’s organization receive remuneration for their services to the Fund out of the investment adviser fee. Trustees of the Fund who are not affiliated with EVM may elect to defer receipt of all or a percentage of their annual fees in accordance
with the terms of the Trustees Deferred Compensation Plan. For the year ended December 31, 2022, no significant amounts have been deferred. Certain officers and Trustees of the Fund are officers of EVM.
4 Purchases and Sales of Investments
Purchases and sales of investments, other than short-term
obligations, aggregated $92,208,812 and $86,998,879, respectively, for the year ended December 31, 2022.
5 Common Shares of Beneficial Interest and Shelf
Offering
Common shares issued by the Fund pursuant to its
dividend reinvestment plan for the years ended December 31, 2022 and December 31, 2021 were 40,672 and 36,377, respectively.
In August 2012, the Board of Trustees initially approved a
share repurchase program for the Fund. Pursuant to the reauthorization of the share repurchase program by the Board of Trustees in March 2019, the Fund is authorized to repurchase up to 10% of its common shares outstanding as of the last day of the
prior calendar year at market prices when shares are trading at a discount to net asset value. The share repurchase program does not obligate the Fund to purchase a specific amount of shares. There were no repurchases of common shares by the Fund
for the years ended December 31, 2022 and December 31, 2021.
Pursuant to its most recent registration statement filed with
the SEC, the Fund is authorized to issue up to an additional 4,509,162 common shares through an equity shelf offering program (the “shelf offering”). Under the shelf offering, the Fund, subject to market conditions, may raise additional
capital from time to time and in varying amounts and offering methods at a net price at or above the Fund’s net asset value per common share.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Notes to Financial
Statements — continued
During
the years ended December 31, 2022 and December 31, 2021, the Fund sold 885,594 and 1,792,041 common shares, respectively, and received proceeds (net of offering costs) of $14,353,734 and $29,225,977, respectively, through its shelf offering. The net
proceeds in excess of the net asset value of the shares sold were $663,468 and $742,142 for the years ended December 31, 2022 and December 31, 2021, respectively. Offering costs (other than the applicable sales commissions) incurred in connection
with the shelf offering were borne directly by EVM. Eaton Vance Distributors, Inc. (EVD), an affiliate of EVM, is the distributor of the Fund’s shares and is entitled to receive a sales commission from the Fund of 1.00% of the gross sales
price per share, a portion of which is re-allowed to sales agents. The Fund was informed that the sales commissions retained by EVD during the years ended December 31, 2022 and December 31, 2021 were $28,998 and $59,043, respectively.
6 Financial Instruments
The Fund may trade in financial instruments with off-balance
sheet risk in the normal course of its investing activities. These financial instruments may include written options and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The
notional or contractual amounts of these instruments represent the investment the Fund has in particular classes of financial instruments and do not necessarily represent the amounts potentially subject to risk. The measurement of the risks
associated with these instruments is meaningful only when all related and offsetting transactions are considered. A summary of obligations under these financial instruments at December 31, 2022 is included in the Portfolio of Investments. At
December 31, 2022, the Fund had sufficient cash and/or securities to cover commitments under these contracts.
The Fund is subject to equity price risk in the normal course
of pursuing its investment objectives. The Fund writes index call options above the current value of the index to generate premium income. In writing index call options, the Fund in effect, sells potential appreciation in the value of the applicable
index above the exercise price in exchange for the option premium received. The Fund retains the risk of loss, minus the premium received, should the value of the underlying index decline.
The fair value of open derivative instruments (not considered
to be hedging instruments for accounting disclosure purposes) and whose primary underlying risk exposure is equity price risk at December 31, 2022 was as follows:
| |
Fair
Value |
| Derivative
|
Asset
Derivative |
Liability
Derivative(1) |
| Written
options |
$ —
|
$(2,525,180)
|
|
(1) |
Statement
of Assets and Liabilities location: Written options outstanding, at value. |
The effect of derivative instruments (not considered to be
hedging instruments for accounting disclosure purposes) on the Statement of Operations and whose primary underlying risk exposure is equity price risk for the year ended December 31, 2022 was as follows:
| Derivative
|
Realized
Gain (Loss)
on Derivatives Recognized
in Income(1) |
Change
in Unrealized
Appreciation (Depreciation) on
Derivatives Recognized in Income(2) |
| Written
options |
$24,131,694
|
$5,122,899
|
|
(1) |
Statement
of Operations location: Net realized gain (loss): Written options. |
|
(2) |
Statement
of Operations location: Change in unrealized appreciation (depreciation): Written options. |
The average number of written options contracts outstanding
during the year ended December 31, 2022, which is indicative of the volume of this derivative type, was 964 contracts.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Notes to Financial
Statements — continued
7 Investments in Affiliated Funds
At December 31, 2022, the value of the Fund's investment in
funds that may be deemed to be affiliated was $1,043,069, which represents 0.3% of the Fund's net assets. Transactions in such funds by the Fund for the year ended December 31, 2022 were as follows:
| Name
|
Value,
beginning
of period |
Purchases
|
Sales
proceeds |
Net
realized
gain (loss) |
Change
in
unrealized
appreciation
(depreciation) |
Value,
end
of period |
Dividend
income |
Shares,
end of period |
| Short-Term
Investments |
| Liquidity
Fund |
$ —
|
$57,034,203
|
$(55,991,134)
|
$ —
|
$ —
|
$1,043,069
|
$30,874
|
1,043,069
|
8 Fair Value
Measurements
Under generally accepted accounting
principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels
listed below.
| •
|
Level 1 – quoted prices
in active markets for identical investments |
| •
|
Level 2 – other
significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
| •
|
Level 3
– significant unobservable inputs (including a fund's own assumptions in determining the fair value of investments) |
In cases where the inputs used to measure fair value fall in
different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not
necessarily an indication of the risk associated with investing in those securities.
At December 31, 2022, the hierarchy of inputs used in valuing
the Fund's investments and open derivative instruments, which are carried at value, were as follows:
| Asset
Description |
Level
1 |
Level
2 |
Level
3 |
Total
|
| Common
Stocks |
$
386,072,316* |
$
— |
$
— |
$
386,072,316 |
| Short-Term
Investments |
1,043,069
|
—
|
—
|
1,043,069
|
| Total
Investments |
$
387,115,385 |
$ —
|
$ —
|
$
387,115,385 |
| Liability
Description |
|
|
|
|
| Written
Call Options |
$
(2,525,180) |
$
— |
$
— |
$
(2,525,180) |
| Total
|
$
(2,525,180) |
$ —
|
$ —
|
$
(2,525,180) |
| *
|
The
level classification by major category of investments is the same as the category presentation in the Portfolio of Investments. |
9 Risks and Uncertainties
Pandemic Risk
An outbreak of respiratory disease caused by a novel
coronavirus was first detected in China in late 2019 and subsequently spread internationally. This coronavirus has resulted in closing borders, enhanced health screenings, changes to healthcare service preparation and delivery, quarantines,
cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. Health crises caused by outbreaks of disease, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and
economic risks and disrupt normal market conditions and operations. The impact of this outbreak has negatively affected the worldwide economy, as well as the economies of individual countries and industries, and could continue to affect the market
in significant and unforeseen ways. Other epidemics and pandemics that may arise in the future may have similar effects. Any such impact could adversely affect the Fund's performance, or the performance of the securities in which the Fund
invests.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Report of Independent
Registered Public Accounting Firm
To the
Trustees and Shareholders of Eaton Vance Tax-Managed Buy-Write Income Fund:
Opinion on the Financial Statements and Financial
Highlights
We have audited the accompanying statement of
assets and liabilities of Eaton Vance Tax-Managed Buy-Write Income Fund (the “Fund”), including the portfolio of investments, as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes
in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly,
in all material respects, the financial position of the Fund as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the
PCAOB.
We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The
Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the
purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks
of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts
and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial
statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing
procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
February 21, 2023
We have served as the auditor of one
or more Eaton Vance investment companies since 1959.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Federal Tax
Information (Unaudited)
The
Form 1099-DIV you received in February 2023 showed the tax status of all distributions paid to your account in calendar year 2022. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their
investment in the Fund. As required by the Internal Revenue Code and/or regulations, shareholders must be notified regarding the status of qualified dividend income for individuals, the dividends received deduction for corporations and capital gains
dividends.
Qualified Dividend Income. For the fiscal year ended December 31, 2022, the Fund designates approximately $6,944,118, or up to the maximum amount of such dividends allowable pursuant to the Internal Revenue Code, as qualified dividend income
eligible for the reduced tax rate of 15%.
Dividends
Received Deduction. Corporate shareholders are generally entitled to take the dividends received deduction on the portion of the Fund’s dividend distribution that qualifies under tax law. For the Fund’s
fiscal 2022 ordinary income dividends, 88.79% qualifies for the corporate dividends received deduction.
Capital Gains Dividends. The
Fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2022, $28,693,033 or, if subsequently determined to be different, the net capital gain of such year.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Dividend Reinvestment
Plan
The Fund offers a dividend reinvestment plan (Plan) pursuant to
which shareholders may elect to have distributions automatically reinvested in common shares (Shares) of the Fund. You may elect to participate in the Plan by completing the Dividend Reinvestment Plan Application Form. If you do not participate, you
will receive all distributions in cash paid by check mailed directly to you by American Stock Transfer & Trust Company, LLC (AST) as dividend paying agent. On the distribution payment date, if the NAV per Share is equal to or less than the
market price per Share plus estimated brokerage commissions, then new Shares will be issued. The number of Shares shall be determined by the greater of the NAV per Share or 95% of the market price. Otherwise, Shares generally will be purchased on
the open market by AST, the Plan agent (Agent). Distributions subject to income tax (if any) are taxable whether or not Shares are reinvested.
If your Shares are in the name of a brokerage firm, bank, or
other nominee, you can ask the firm or nominee to participate in the Plan on your behalf. If the nominee does not offer the Plan, you will need to request that the Fund’s transfer agent re-register your Shares in your name or you will not be
able to participate.
The Agent’s service fee for
handling distributions will be paid by the Fund. Plan participants will be charged their pro rata share of brokerage commissions on all open-market purchases.
Plan participants may withdraw from the Plan at any time by
writing to the Agent at the address noted on the following page. If you withdraw, you will receive Shares in your name for all Shares credited to your account under the Plan. If a participant elects by written notice to the Agent to sell part or all
of his or her Shares and remit the proceeds, the Agent is authorized to deduct a $5.00 fee plus brokerage commissions from the proceeds.
If you wish to participate in the Plan and your Shares are held
in your own name, you may complete the form on the following page and deliver it to the Agent. Any inquiries regarding the Plan can be directed to the Agent at 1-866-439-6787.
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Application for
Participation in Dividend Reinvestment Plan
This form is for shareholders who hold
their common shares in their own names. If your common shares are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to see if it will participate in the Plan on your behalf. If you wish to participate in
the Plan, but your brokerage firm, bank, or nominee is unable to participate on your behalf, you should request that your common shares be re-registered in your own name which will enable your participation in the Plan.
The following authorization and appointment
is given with the understanding that I may terminate it at any time by terminating my participation in the Plan as provided in the terms and conditions of the Plan.
| |
| Please
print exact name on account |
|
| |
| Shareholder
signature |
Date
|
| |
| Shareholder
signature |
Date
|
| Please
sign exactly as your common shares are registered. All persons whose names appear on the share certificate must sign. |
YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO
RECEIVE YOUR DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.
This authorization form, when signed, should
be mailed to the following address:
Eaton Vance Tax-Managed Buy-Write Income
Fund
c/o American Stock Transfer & Trust Company, LLC
P.O. Box 922
Wall Street Station
New York, NY 10269-0560
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Management and
Organization
Fund
Management. The Board of Trustees of the Fund (the “Board”) is responsible for the overall management and supervision of the affairs of the Fund. The Board members and officers of the Fund are listed
below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. Each Trustee holds office until the annual meeting for the year in which his or her term expires and until his or her
successor is elected and qualified, subject to a prior death, resignation, retirement, disqualification or removal. Under the terms of the Fund’s current Trustee retirement policy, an Independent Trustee must retire and resign as a Trustee on
the earlier of: (i) the first day of July following his or her 74th birthday; or (ii), with limited exception, December 31st of the 20th year in which he or she has served as a Trustee. However, if such retirement and resignation would cause the
Fund to be out of compliance with Section 16 of the 1940 Act or any other regulations or guidance of the Securities and Exchange Commission, then such retirement and resignation will not become effective until such time as action has been taken for
the Fund to be in compliance therewith. The “noninterested Trustees” consist of those Trustees who are not “interested persons” of the Fund, as that term is defined under the 1940 Act. The business address of each Board
member and officer is Two International Place, Boston, Massachusetts 02110. As used below, “BMR” refers to Boston Management and Research, “EVC” refers to Eaton Vance Corp., “EV” refers to EV LLC,
“EVM” refers to Eaton Vance Management and “EVD” refers to Eaton Vance Distributors, Inc. EV is the trustee of each of EVM and BMR. Effective March 1, 2021, each of EVM, BMR, EVD and EV are indirect, wholly owned subsidiaries
of Morgan Stanley. Each officer affiliated with EVM may hold a position with other EVM affiliates that is comparable to his or her position with EVM listed below. Each Trustee oversees 130 funds in the Eaton Vance fund complex (including both funds
and portfolios in a hub and spoke structure).
| Name
and Year of Birth |
Fund
Position(s) |
Length
of Service |
Principal
Occupation(s) and Other Directorships
During Past Five Years and Other Relevant Experience |
| Interested Trustee
|
Thomas
E. Faust Jr.
1958 |
Class
I
Trustee |
Until
2024.
3 years.
Since 2007. |
Chairman
of Morgan Stanley Investment Management, Inc. (MSIM), member of the Board of Managers and President of EV (since 2021), Chief Executive Officer of EVM and BMR. Formerly, Chairman, Chief Executive Officer (2007-2021) and President (2006-2021) of EVC
and Director of EVD (2007-2022). Mr. Faust is an interested person because of his positions with MSIM, BMR, EVM and EV, which are affiliates of the Fund.
Other Directorships. Formerly, Director of EVC
(2007-2021) and Hexavest Inc. (investment management firm) (2012-2021). |
| Noninterested Trustees
|
Alan
C. Bowser(1)
1962 |
Class
III
Trustee |
Until
2023.
3 years.
Since 2023. |
Formerly,
Chief Diversity Officer, Partner and a member of the Operating Committee, and formerly served as Senior Advisor on Diversity and Inclusion for the firm’s chief executive officer, Co-Head of the Americas Region, and Senior Client Advisor of
Bridgewater Associates, an asset management firm (2011- 2023).
Other Directorships. None. |
Mark
R. Fetting
1954 |
Class
III
Trustee |
Until
2023.
3 years.
Since 2016. |
Private investor.
Formerly held various positions at Legg Mason, Inc. (investment management firm) (2000-2012), including President, Chief Executive Officer, Director and Chairman (2008-2012), Senior Executive Vice President (2004-2008) and Executive Vice President
(2001-2004). Formerly, President of Legg Mason family of funds (2001-2008). Formerly, Division President and Senior Officer of Prudential Financial Group, Inc. and related companies (investment management firm) (1991-2000).
Other Directorships. None. |
Cynthia
E. Frost
1961 |
Class
I
Trustee |
Until
2024.
3 years.
Since 2014. |
Private investor.
Formerly, Chief Investment Officer of Brown University (university endowment) (2000-2012). Formerly, Portfolio Strategist for Duke Management Company (university endowment manager) (1995-2000). Formerly, Managing Director, Cambridge Associates
(investment consulting company) (1989-1995). Formerly, Consultant, Bain and Company (management consulting firm) (1987-1989). Formerly, Senior Equity Analyst, BA Investment Management Company (1983-1985).
Other
Directorships. None. |
George
J. Gorman
1952 |
Chairperson
of the Board
and Class II
Trustee |
Until
2025.
3 years.
Chairperson of the Board since 2021 and Trustee since 2014. |
Principal
at George J. Gorman LLC (consulting firm). Formerly, Senior Partner at Ernst & Young LLP (a registered public accounting firm) (1974-2009).
Other Directorships. None. |
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Management and
Organization — continued
| Name
and Year of Birth |
Fund
Position(s) |
Length
of Service |
Principal
Occupation(s) and Other Directorships
During Past Five Years and Other Relevant Experience |
| Noninterested Trustees
(continued) |
Valerie
A. Mosley
1960 |
Class
III
Trustee |
Until
2023.
3 years.
Since 2014. |
Chairwoman
and Chief Executive Officer of Valmo Ventures (a consulting and investment firm). Founder of Upward Wealth, Inc., dba BrightUp, a fintech platform. Formerly, Partner and Senior Vice President, Portfolio Manager and Investment Strategist at
Wellington Management Company, LLP (investment management firm) (1992-2012). Formerly, Chief Investment Officer, PG Corbin Asset Management (1990-1992). Formerly worked in institutional corporate bond sales at Kidder Peabody (1986-1990).
Other Directorships. Director of DraftKings, Inc. (digital sports entertainment and gaming company) (since September 2020). Director of Envestnet, Inc. (provider of intelligent systems for wealth management and
financial wellness) (since 2018). Formerly, Director of Dynex Capital, Inc. (mortgage REIT) (2013-2020) and Director of Groupon, Inc. (e-commerce provider) (2020-2022). |
Keith
Quinton
1958 |
Class
II
Trustee |
Until
2025.
3 years.
Since 2018. |
Private investor,
researcher and lecturer. Formerly, Independent Investment Committee Member at New Hampshire Retirement System (2017-2021). Formerly, Portfolio Manager and Senior Quantitative Analyst at Fidelity Investments (investment management firm)
(2001-2014).
Other Directorships. Formerly, Director (2016-2021) and Chairman (2019-2021) of New Hampshire Municipal Bond Bank. |
Marcus
L. Smith
1966 |
Class
III
Trustee |
Until
2023.
3 years.
Since 2018. |
Private investor
and independent corporate director. Formerly, Chief Investment Officer, Canada (2012-2017), Chief Investment Officer, Asia (2010-2012), Director of Asian Research (2004-2010) and portfolio manager (2001-2017) at MFS Investment Management
(investment management firm).
Other Directorships. Director of First Industrial Realty Trust, Inc. (an industrial REIT) (since 2021). Director of MSCI Inc. (global provider of investment decision support
tools) (since 2017). Formerly, Director of DCT Industrial Trust Inc. (logistics real estate company) (2017-2018). |
Susan
J. Sutherland
1957 |
Class
II
Trustee |
Until
2025.
3 years.
Since 2015. |
Private investor.
Director of Ascot Group Limited and certain of its subsidiaries (insurance and reinsurance) (since 2017). Formerly, Director of Hagerty Holding Corp. (insurance) (2015-2018) and Montpelier Re Holdings Ltd. (insurance and reinsurance) (2013-2015).
Formerly, Associate, Counsel and Partner at Skadden, Arps, Slate, Meagher & Flom LLP (law firm) (1982-2013).
Other Directorships. Formerly, Director of Kairos Acquisition Corp. (insurance/InsurTech
acquisition company) (2021-2023). |
Scott
E. Wennerholm
1959 |
Class
I
Trustee |
Until
2024.
3 years.
Since 2016. |
Private investor.
Formerly, Trustee at Wheelock College (postsecondary institution) (2012-2018). Formerly, Consultant at GF Parish Group (executive recruiting firm) (2016-2017). Formerly, Chief Operating Officer and Executive Vice President at BNY Mellon Asset
Management (investment management firm) (2005-2011). Formerly, Chief Operating Officer and Chief Financial Officer at Natixis Global Asset Management (investment management firm) (1997-2004). Formerly, Vice President at Fidelity Investments
Institutional Services (investment management firm) (1994-1997).
Other Directorships. None. |
Nancy
A. Wiser(2)
1967 |
Class
I
Trustee |
Until
2024.
3 years.
Since 2022. |
Formerly,
Executive Vice President and the Global Head of Operations at Wells Fargo Asset Management (2011-2021).
Other Directorships. None. |
| Name
and Year of Birth |
Fund
Position(s) |
Length
of Service |
Principal
Occupation(s)
During Past Five Years |
| Principal
Officers who are not Trustees |
R.
Kelly Williams, Jr.
1971 |
President
|
Since
2022 |
President
and Chief Operating Officer of Atlanta Capital Management Company, LLC. Officer of 21 registered investment companies managed by Eaton Vance or BMR. |
Deidre
E. Walsh
1971 |
Vice
President and
Chief
Legal Officer |
Since
2009 |
Vice
President of EVM and BMR. Also Vice President of Calvert Research and Management ("CRM"). |
James
F. Kirchner
1967 |
Treasurer
|
Since
2007 |
Vice
President of EVM and BMR. Also Vice President of CRM. |
Eaton Vance
Tax-Managed Buy-Write Income Fund
December 31, 2022
Management and
Organization — continued
| Name
and Year of Birth |
Fund
Position(s) |
Length
of Service |
Principal
Occupation(s)
During Past Five Years |
| Principal
Officers who are not Trustees (continued) |
Nicholas
Di Lorenzo
1987 |
Secretary
|
Since
2022 |
Formerly,
associate (2012-2021) and counsel (2022) at Dechert LLP. |
Richard
F. Froio
1968 |
Chief
Compliance
Officer |
Since
2017 |
Vice
President of EVM and BMR since 2017. Formerly, Deputy Chief Compliance Officer (Adviser/Funds) and Chief Compliance Officer (Distribution) at PIMCO (2012-2017) and Managing Director at BlackRock/Barclays Global Investors (2009-2012).
|
(1) Mr. Bowser began serving as a Trustee effective January 4, 2023.
(2) Ms. Wiser began serving as a Trustee effective April 4, 2022.
| Privacy
Notice |
April 2021
|
| FACTS
|
WHAT
DOES EATON VANCE DO WITH YOUR
PERSONAL INFORMATION? |
| Why?
|
Financial
companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read
this notice carefully to understand what we do. |
| |
|
| What?
|
The
types of personal information we collect and share depend on the product or service you have with us. This information can include:■ Social Security number and income
■ investment
experience and risk tolerance
■ checking account number and wire transfer instructions |
| |
|
| How?
|
All
financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Eaton Vance
chooses to share; and whether you can limit this sharing. |
Reasons
we can share your
personal information |
Does
Eaton Vance
share? |
Can
you limit
this sharing? |
| For
our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus |
Yes
|
No
|
| For
our marketing purposes — to offer our products and services to you |
Yes
|
No
|
| For
joint marketing with other financial companies |
No
|
We
don’t share |
| For
our investment management affiliates’ everyday business purposes — information about your transactions, experiences, and creditworthiness |
Yes
|
Yes
|
| For
our affiliates’ everyday business purposes — information about your transactions and experiences |
Yes
|
No
|
| For
our affiliates’ everyday business purposes — information about your creditworthiness |
No
|
We
don’t share |
| For
our investment management affiliates to market to you |
Yes
|
Yes
|
| For
our affiliates to market to you |
No
|
We
don’t share |
| For
nonaffiliates to market to you |
No
|
We
don’t share |
To
limit our
sharing |
Call
toll-free 1-800-262-1122 or email: EVPrivacy@eatonvance.comPlease note:If you are a new customer,
we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact
us at any time to limit our sharing. |
| Questions?
|
Call
toll-free 1-800-262-1122 or email: EVPrivacy@eatonvance.com |
| Privacy
Notice — continued |
April 2021
|
| Who
we are |
| Who
is providing this notice? |
Eaton
Vance Management, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management (International) Limited, Eaton Vance Advisers International Ltd., Eaton Vance Global Advisors Limited, Eaton Vance Management’s Real Estate
Investment Group, Boston Management and Research, Calvert Research and Management, Eaton Vance and Calvert Fund Families and our investment advisory affiliates (“Eaton Vance”) (see Investment Management Affiliates definition below)
|
| What
we do |
How
does Eaton Vance
protect my personal
information? |
To
protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of
customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information. |
How
does Eaton Vance
collect my personal
information? |
We
collect your personal information, for example, when you■ open an account or make deposits or withdrawals from your account
■ buy securities from us or make a wire transfer
■ give us your contact informationWe also collect your personal information from others, such as credit bureaus, affiliates, or other companies. |
| Why
can’t I limit all sharing? |
Federal
law gives you the right to limit only■ sharing for affiliates’ everyday business purposes — information about your creditworthiness
■ affiliates from using your information
to market to you
■ sharing for nonaffiliates to market to youState laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.
|
| Definitions
|
Investment
Management
Affiliates |
Eaton
Vance Investment Management Affiliates include registered investment advisers, registered broker- dealers, and registered and unregistered funds. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth
Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
| Affiliates
|
Companies
related by common ownership or control. They can be financial and nonfinancial companies.■ Our affiliates include companies with a Morgan Stanley name and financial
companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
| Nonaffiliates
|
Companies
not related by common ownership or control. They can be financial and nonfinancial companies.■ Eaton Vance does not share with nonaffiliates so they can market to
you. |
| Joint
marketing |
A
formal agreement between nonaffiliated financial companies that together market financial products or services to you.■ Eaton Vance doesn’t jointly market.
|
| Other
important information |
| Vermont:
Except as permitted by law, we will not share personal information we collect about Vermont residents with Nonaffiliates unless you provide us with your written consent to share such
information.California: Except as permitted by law, we will not share personal information we collect about California residents with Nonaffiliates and we will limit sharing
such personal information with our Affiliates to comply with California privacy laws that apply to us. |
Delivery of Shareholder Documents. The Securities and Exchange Commission (SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and
shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called “householding” and it helps eliminate duplicate mailings to shareholders. American Stock Transfer & Trust Company, LLC (“AST”), the closed-end funds transfer agent, or your financial intermediary, may household the mailing of your documents
indefinitely unless you instruct AST, or your financial intermediary, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact AST or your financial
intermediary. Your instructions that householding not apply to delivery of your Eaton Vance documents will typically be effective within 30 days of receipt by AST or your financial intermediary.
Portfolio
Holdings. Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) files a schedule of portfolio holdings on Part F to Form N-PORT with the
SEC. Certain information filed on Form N-PORT may be viewed on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SEC’s website at www.sec.gov.
Proxy
Voting. From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying
Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds’ and Portfolios’ Boards. You may obtain a description of these policies and procedures and information on how the Funds or
Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge, upon request, by calling 1-800-262-1122 and by accessing the SEC’s website at www.sec.gov.
Share Repurchase
Program. The Fund’s Board of Trustees has approved a share repurchase program authorizing the Fund to repurchase up to 10% of its common shares
outstanding as of the last day of the prior calendar year in open-market transactions at a discount to net asset value. The repurchase program does not obligate the Fund to purchase a specific amount of shares. The Fund’s repurchase activity,
including the number of shares purchased, average price and average discount to net asset value, is disclosed in the Fund’s annual and semi-annual reports to shareholders.
Additional Notice to Shareholders. If applicable, a Fund may also redeem or purchase its outstanding preferred shares in order to maintain compliance with regulatory requirements, borrowing or
rating agency requirements or for other purposes as it deems appropriate or necessary.
Closed-End Fund Information. Eaton Vance closed-end funds make fund performance data and certain information about portfolio characteristics available on the Eaton Vance website shortly
after the end of each month. Other information about the funds is available on the website. The funds’ net asset value per share is readily accessible on the Eaton Vance website. Portfolio holdings for the most recent month-end are also posted
to the website approximately 30 days following the end of the month. This information is available at www.eatonvance.com on the fund information pages under “Closed-End Funds & Term Trusts.”
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Investment Adviser and Administrator
Eaton Vance Management
Two International Place
Boston, MA 02110
Investment Sub-Adviser
Parametric Portfolio Associates LLC
800 Fifth Avenue, Suite 2800
Seattle, WA 98104
Custodian
State Street Bank and Trust Company
State Street Financial Center, One Lincoln Street
Boston, MA 02111
Transfer Agent
American Stock Transfer & Trust Company, LLC
6201 15th Avenue
Brooklyn, NY 11219
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116-5022
Fund Offices
Two International Place
Boston, MA 02110