Eaton Vance Enhanced Equity Income Fund
Table of Contents

 
 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
811-21614
Investment Company Act File Number
Eaton Vance Enhanced Equity Income Fund
(Exact Name of Registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
(Address of Principal Executive Offices)
Maureen A. Gemma
Eaton Vance Management, 255 State Street, Boston, Massachusetts 02109
(Name and Address of Agent for Services)
(617) 482-8260
(Registrant’s Telephone Number, Including Area Code)
September 30
Date of Fiscal Year End
December 31, 2008
Date of Reporting Period
 
 

 

TABLE OF CONTENTS

Item 1. Schedule of Investments
Item 2. Controls and Procedures
Signatures
EX-99.CERT Section 302 Certifications

Table of Contents

Item 1. Schedule of Investments

 

Table of Contents

Eaton Vance Enhanced Equity Income Fund   as of December 31, 2008
PORTFOLIO OF INVESTMENTS (Unaudited)
Common Stocks (1) — 97.3%
                 
Security   Shares     Value  
 
Aerospace & Defense — 4.2%
               
Alliant Techsystems, Inc. (2)
     15,266     $ 1,309,212  
Boeing Co. (The)
     48,599       2,073,719  
General Dynamics Corp.
     82,801       4,768,510  
Lockheed Martin Corp.
     63,794       5,363,800  
Precision Castparts Corp.
     28,186       1,676,503  
Raytheon Co.
     81,034       4,135,975  
United Technologies Corp.
     43,549       2,334,226  
 
              
 
           $ 21,661,945  
 
              
Auto Components — 0.5%
               
Johnson Controls, Inc.
     155,634     $ 2,826,313  
 
              
 
           $ 2,826,313  
 
              
Beverages — 2.3%
               
Coca-Cola Co. (The)
     96,827     $ 4,383,358  
PepsiCo, Inc.
     141,663       7,758,883  
 
              
 
           $ 12,142,241  
 
              
Biotechnology — 2.7%
               
Amgen, Inc. (2)
     56,962     $ 3,289,556  
Biogen Idec, Inc. (2)
     49,726       2,368,449  
Cephalon, Inc. (2)
     30,549       2,353,495  
Genzyme Corp. (2)
     48,482       3,217,750  
Gilead Sciences, Inc. (2)
     38,143       1,950,633  
Onyx Pharmaceuticals, Inc. (2)
     29,897       1,021,282  
 
              
 
           $ 14,201,165  
 
              
Capital Markets — 3.3%
               
Bank of New York Mellon Corp. (The)
     282,090     $ 7,991,610  
Goldman Sachs Group, Inc.
     34,098       2,877,530  
Julius Baer Holding AG
     43,363       1,680,634  
T. Rowe Price Group, Inc.
     135,983       4,819,238  
 
              
 
           $ 17,369,012  
 
              
Chemicals — 1.3%
               
E.I. Du Pont de Nemours & Co.
     65,639     $ 1,660,667  
Ecolab, Inc.
     69,082       2,428,232  
Monsanto Co.
     37,287       2,623,140  
 
              
 
           $ 6,712,039  
 
              
Commercial Banks — 1.1%
               
East-West Bancorp, Inc.
     121,116     $ 1,934,223  
Wells Fargo & Co.
     134,834       3,974,906  
 
              
 
           $ 5,909,129  
 
              
Commercial Services & Supplies — 1.1%
               
Waste Management, Inc.
     168,921     $ 5,598,042  
 
              
 
           $ 5,598,042  
 
              
Communications Equipment — 3.3%
               
Cisco Systems, Inc. (2)
     487,426     $ 7,945,044  
Juniper Networks, Inc. (2)
     116,792       2,045,028  
Motorola, Inc.
     291,252       1,290,246  
QUALCOMM, Inc.
     107,936       3,867,347  
Riverbed Technology, Inc. (2)
     197,865       2,253,682  
 
              
 
           $ 17,401,347  
 
              

1

 

Table of Contents

                 
Security   Shares     Value  
 
Computers & Peripherals — 4.0%
               
Apple, Inc. (2)
     56,018     $ 4,781,136  
Hewlett-Packard Co.
     206,099       7,479,333  
International Business Machines Corp.
     102,175       8,599,048  
 
              
 
           $ 20,859,517  
 
              
Construction & Engineering — 0.4%
               
Granite Construction, Inc.
     47,230     $ 2,074,814  
 
              
 
           $ 2,074,814  
 
              
Consumer Finance — 0.4%
               
Discover Financial Services
     197,543     $ 1,882,585  
 
              
 
           $ 1,882,585  
 
              
Diversified Financial Services — 3.0%
               
Bank of America Corp.
     345,080     $ 4,858,726  
Citigroup, Inc.
     267,484       1,794,818  
JPMorgan Chase & Co.
     278,629       8,785,172  
 
              
 
           $ 15,438,716  
 
              
Diversified Telecommunication Services — 3.1%
               
AT&T, Inc.
     336,921     $ 9,602,249  
Verizon Communications, Inc.
     191,391       6,488,155  
 
              
 
           $ 16,090,404  
 
              
Electric Utilities — 2.2%
               
E.ON AG ADR
     112,174     $ 4,571,091  
Edison International
     104,787       3,365,758  
FirstEnergy Corp.
     68,787       3,341,672  
 
              
 
           $ 11,278,521  
 
              
Electrical Equipment — 1.7%
               
Cooper Industries, Ltd., Class A
     56,705     $ 1,657,487  
Emerson Electric Co.
     143,092       5,238,598  
Vestas Wind Systems A/S (2)
     32,942       1,938,531  
 
              
 
           $ 8,834,616  
 
              
Electronic Equipment, Instruments & Components — 0.6%
               
Agilent Technologies, Inc. (2)
     111,178     $ 1,737,712  
IPG Photonics Corp. (2)
     105,128       1,385,587  
 
              
 
           $ 3,123,299  
 
              
Energy Equipment & Services — 1.4%
               
Diamond Offshore Drilling, Inc.
     55,533     $ 3,273,115  
Schlumberger, Ltd.
     96,762       4,095,935  
 
              
 
           $ 7,369,050  
 
              
Food & Staples Retailing — 4.1%
               
CVS Caremark Corp.
     186,401     $ 5,357,165  
Kroger Co. (The)
     57,145       1,509,199  
Safeway, Inc.
     127,970       3,041,847  
Sysco Corp.
     83,247       1,909,686  
Wal-Mart Stores, Inc.
     167,801       9,406,924  
 
              
 
           $ 21,224,821  
 
              
Food Products — 1.7%
               
Cadbury PLC ADR
     77,479     $ 2,763,676  
Nestle SA ADR
     150,302       5,966,989  
 
              
 
           $ 8,730,665  
 
              
Health Care Equipment & Supplies — 3.0%
               
Baxter International, Inc.
     67,085     $ 3,595,085  
Becton, Dickinson & Co.
     27,427       1,875,733  
Boston Scientific Corp. (2)
     254,004       1,965,991  
HeartWare, Ltd. (2)
     3,145,346       1,315,761  
Medtronic, Inc.
     88,252       2,772,878  
Thoratec Corp. (2)
     124,552       4,046,694  
 
              
 
           $ 15,572,142  
 
              

2

 

Table of Contents

                 
Security   Shares     Value  
 
Health Care Providers & Services — 1.5%
               
Aetna, Inc.
     69,465     $ 1,979,753  
DaVita, Inc. (2)
     42,012       2,082,535  
Fresenius Medical Care AG & Co. KGaA ADR
     29,630       1,397,943  
UnitedHealth Group, Inc.
     82,366       2,190,936  
 
              
 
           $ 7,651,167  
 
              
Hotels, Restaurants & Leisure — 2.1%
               
McDonald’s Corp.
     179,692     $ 11,175,045  
 
              
 
           $ 11,175,045  
 
              
Household Durables — 2.2%
               
Centex Corp.
     143,187     $ 1,523,510  
D.R. Horton, Inc.
     238,940       1,689,306  
KB HOME
     107,914       1,469,789  
Lennar Corp., Class A
     183,735       1,592,982  
NVR, Inc. (2)
     2,876       1,312,175  
Pulte Homes, Inc.
     155,851       1,703,451  
Ryland Group, Inc.
     30,019       530,436  
Toll Brothers, Inc. (2)
     77,847       1,668,261  
 
              
 
           $ 11,489,910  
 
              
Household Products — 2.6%
               
Clorox Co.
     27,075     $ 1,504,287  
Colgate-Palmolive Co.
     79,610       5,456,469  
Procter & Gamble Co.
     105,571       6,526,399  
 
              
 
           $ 13,487,155  
 
              
Independent Power Producers & Energy Traders — 0.3%
               
NRG Energy, Inc. (2)
     71,799     $ 1,675,071  
 
              
 
           $ 1,675,071  
 
              
Industrial Conglomerates — 1.6%
               
3M Co.
     41,145     $ 2,367,483  
General Electric Co.
     354,408       5,741,410  
 
              
 
           $ 8,108,893  
 
              
Insurance — 4.1%
               
ACE, Ltd.
     41,803     $ 2,212,215  
Aflac, Inc.
     59,234       2,715,287  
Chubb Corp.
     120,769       6,159,219  
HCC Insurance Holdings, Inc.
     75,335       2,015,211  
MetLife, Inc.
     78,797       2,746,863  
Travelers Companies, Inc. (The)
     121,823       5,506,400  
 
              
 
           $ 21,355,195  
 
              
Internet Software & Services — 1.2%
               
Akamai Technologies, Inc. (2)
     108,909     $ 1,643,437  
Google, Inc., Class A (2)
     14,646       4,505,842  
 
              
 
           $ 6,149,279  
 
              
IT Services — 1.5%
               
Accenture, Ltd., Class A
     58,263     $ 1,910,444  
Cognizant Technology Solutions Corp. (2)
     87,813       1,585,903  
MasterCard, Inc., Class A
     22,625       3,233,791  
Visa, Inc., Class A
     23,650       1,240,443  
 
              
 
           $ 7,970,581  
 
              
Life Sciences Tools & Services — 0.9%
               
Thermo Fisher Scientific, Inc. (2)
     137,888     $ 4,697,844  
 
              
 
           $ 4,697,844  
 
              
Machinery — 1.3%
               
Danaher Corp.
     88,767     $ 5,025,100  
Illinois Tool Works, Inc.
     54,265       1,901,988  
 
              
 
           $ 6,927,088  
 
              
Media — 3.1%
               
Comcast Corp., Class A
     652,999     $ 11,022,623  
Time Warner, Inc.
     506,467       5,095,058  
 
              
 
           $ 16,117,681  
 
              
Metals & Mining — 2.4%
               
BHP Billiton, Ltd. ADR
     22,361     $ 959,287  
Goldcorp, Inc.
     306,224       9,655,243  
Nucor Corp.
     36,683       1,694,755  
 
              
 
           $ 12,309,285  
 
              
Multi-Utilities — 0.8%
               
Public Service Enterprise Group, Inc.
     140,815     $ 4,107,574  
 
              
 
           $ 4,107,574  
 
              

3

 

Table of Contents

                 
Security   Shares     Value  
 
Oil, Gas & Consumable Fuels — 9.4%
               
Anadarko Petroleum Corp.
     115,541     $ 4,454,106  
Chevron Corp.
     137,917       10,201,721  
ConocoPhillips
     98,873       5,121,621  
Exxon Mobil Corp.
     182,719       14,586,458  
Hess Corp.
     66,577       3,571,190  
Occidental Petroleum Corp.
     96,629       5,796,774  
Petrohawk Energy Corp. (2)
     75,807       1,184,863  
XTO Energy, Inc.
     123,381       4,351,648  
 
              
 
           $ 49,268,381  
 
              
Personal Products — 0.5%
               
Chattem, Inc. (2)
     38,827     $ 2,777,295  
 
              
 
           $ 2,777,295  
 
              
Pharmaceuticals — 6.9%
               
Abbott Laboratories
     121,879     $ 6,504,682  
Johnson & Johnson
     195,549       11,699,697  
Merck & Co., Inc.
     197,628       6,007,891  
Novo-Nordisk A/S, Class B
     33,518       1,728,989  
Pfizer, Inc.
     314,275       5,565,810  
Roche Holding AG
     13,101       2,028,259  
Schering-Plough Corp.
     155,212       2,643,260  
Shire PLC ADR
     898       40,212  
 
              
 
           $ 36,218,800  
 
              
Real Estate Investment Trusts (REITs) — 0.6%
               
AvalonBay Communities, Inc.
     28,770     $ 1,742,887  
Boston Properties, Inc.
     25,593       1,407,615  
 
              
 
           $ 3,150,502  
 
              
Road & Rail — 0.3%
               
JB Hunt Transport Services, Inc.
     58,286     $ 1,531,173  
 
              
 
           $ 1,531,173  
 
              
Semiconductors & Semiconductor Equipment — 0.7%
               
ASML Holding NV
     195,879     $ 3,539,534  
 
              
 
           $ 3,539,534  
 
              
Software — 3.3%
               
McAfee, Inc. (2)
     66,412     $ 2,295,863  
Microsoft Corp.
     492,038       9,565,219  
Oracle Corp. (2)
     288,514       5,115,353  
 
              
 
           $ 16,976,435  
 
              
Specialty Retail — 2.3%
               
Best Buy Co., Inc.
     111,359     $ 3,130,302  
Home Depot, Inc.
     142,465       3,279,544  
Staples, Inc.
     301,409       5,401,249  
 
              
 
           $ 11,811,095  
 
              
Tobacco — 1.9%
               
Philip Morris International, Inc.
     230,897     $ 10,046,328  
 
              
 
           $ 10,046,328  
 
              
Wireless Telecommunication Services — 0.4%
               
Rogers Communications, Inc., Class B
     67,062     $ 2,017,225  
 
              
 
           $ 2,017,225  
 
              
 
                
Total Common Stocks
(identified cost $645,740,710)
           $ 506,858,919  
 
              
Investment Funds (1) — 0.4%
                 
Security   Shares     Value  
 
Capital Markets — 0.4%
               
SPDR S&P Homebuilders ETF
     180,024     $ 2,154,887  
 
              
 
                
Total Investment Funds
(identified cost $2,502,262)
           $ 2,154,887  
 
              
Short-Term Investments — 4.0%
                 
    Interest        
Description   (000's omitted)     Value  
 
Cash Management Portfolio, 0.75% (3)
     20,966     $ 20,965,837  
 
              
 
                
Total Short-Term Investments
(identified cost $20,965,837)
           $ 20,965,837  
 
              
 
                
Total Investments — 101.7%
(identified cost $669,208,809)
           $ 529,979,643  
 
              

4

 

Table of Contents

Covered Call Options Written — (1.8)%
                                 
    Number     Strike     Expiration        
Security   of Contracts     Price     Date     Value  
 
3M Co.
     230     $ 65.00       4/18/09     $ (37,950 )
Abbott Laboratories
     805       60.00       1/17/09       (8,050 )
Accenture, Ltd., Class A
     370       35.00       2/21/09       (37,370 )
ACE, Ltd.
     230       50.00       2/21/09       (138,000 )
Aetna, Inc.
     325       35.00       1/17/09       (3,250 )
Aflac, Inc.
     390       45.00       2/21/09       (167,700 )
Agilent Technologies, Inc.
     155       22.50       2/21/09       (387 )
Akamai Technologies, Inc.
     70       15.00       2/21/09       (11,200 )
Alliant Techsystems, Inc.
     50       85.00       2/21/09       (25,500 )
Amgen, Inc.
     170       52.50       1/17/09       (100,300 )
Anadarko Petroleum Corp.
     300       35.00       2/21/09       (165,000 )
Apple, Inc.
     105       155.00       1/17/09       (315 )
ASML Holding NV
     515       17.50       1/17/09       (73,130 )
AT&T, Inc.
     535       29.00       1/17/09       (24,610 )
AvalonBay Communities, Inc.
     90       65.00       4/18/09       (81,000 )
Bank of America Corp.
     975       25.00       2/21/09       (975 )
Bank of New York Mellon Corp. (The)
     665       27.50       3/21/09       (289,275 )
Baxter International, Inc.
     300       65.00       1/17/09       (1,500 )
Becton, Dickinson & Co.
     70       65.00       3/21/09       (42,700 )
Best Buy Co., Inc.
     125       22.50       3/21/09       (85,000 )
BHP Billiton, Ltd. ADR
     25       40.00       2/21/09       (15,500 )
Biogen Idec, Inc.
     305       50.00       1/17/09       (24,400 )
Boeing Co. (The)
     260       45.00       2/21/09       (45,500 )
Boston Properties, Inc.
     75       70.00       1/17/09       (2,438 )
Boston Scientific Corp.
     1,100       10.00       2/21/09       (19,800 )
Centex Corp.
     225       12.50       1/17/09       (6,750 )
Cephalon, Inc.
     170       70.00       1/17/09       (135,830 )
Chattem, Inc.
     150       65.00       3/21/09       (145,500 )
Chevron Corp.
     755       80.00       3/21/09       (234,050 )
Chubb Corp.
     495       45.00       1/17/09       (321,750 )
Cisco Systems, Inc.
     1,245       20.00       1/17/09       (2,490 )
Citigroup, Inc.
     1,065       9.00       3/21/09       (50,055 )
Clorox Co.
     180       65.00       1/17/09       (900 )
Coca-Cola Co. (The)
     215       47.50       2/21/09       (27,950 )
Cognizant Technology Solutions Corp.
     225       17.50       1/17/09       (30,375 )
Colgate-Palmolive Co.
     275       65.00       2/21/09       (143,000 )
ConocoPhillips
     185       55.00       2/21/09       (45,325 )
Cooper Industries, Ltd., Class A
     75       22.50       4/18/09       (59,625 )
CVS Caremark Corp.
     655       30.00       2/21/09       (96,285 )
D.R. Horton, Inc.
     580       7.50       1/17/09       (23,200 )
Danaher Corp.
     160       60.00       3/21/09       (42,400 )
DaVita, Inc.
     290       55.00       1/17/09       (21,750 )
Diamond Offshore Drilling, Inc.
     200       75.00       3/21/09       (42,500 )
Discover Financial Services
     940       10.00       4/18/09       (150,400 )
E.I. Du Pont de Nemours & Co.
     155       35.00       1/17/09       (775 )
East-West Bancorp, Inc.
     575       17.50       4/18/09       (89,125 )
Ecolab, Inc.
     445       45.00       1/17/09       (6,675 )
Edison International
     155       45.00       1/17/09       (775 )
Emerson Electric Co.
     240       35.00       3/21/09       (98,400 )
Exxon Mobil Corp.
     475       80.00       1/17/09       (113,050 )
FirstEnergy Corp.
     195       70.00       1/17/09       (975 )
General Dynamics Corp.
     175       60.00       2/21/09       (35,000 )
General Electric Co.
     165       16.00       3/21/09       (27,225 )
Gilead Sciences, Inc.
     195       45.00       2/21/09       (155,805 )
Goldman Sachs Group, Inc.
     90       140.00       1/17/09       (270 )
Google, Inc., Class A
     15       280.00       3/21/09       (68,775 )
Granite Construction, Inc.
     295       40.00       3/21/09       (233,050 )
HCC Insurance Holdings, Inc.
     270       25.00       2/21/09       (89,100 )
Hess Corp.
     115       55.00       2/21/09       (69,000 )
Hewlett-Packard Co.
     740       37.50       2/21/09       (133,200 )
Home Depot, Inc.
     645       22.50       2/21/09       (143,190 )
Illinois Tool Works, Inc.
     95       35.00       3/21/09       (27,075 )
International Business Machines Corp.
     155       95.00       1/17/09       (2,170 )
IPG Photonics Corp.
     505       15.00       1/17/09       (12,625 )
JB Hunt Transport Services, Inc.
     180       25.00       2/21/09       (54,000 )
Johnson & Johnson
     1,260       65.00       1/17/09       (12,600 )
JPMorgan Chase & Co.
     535       31.00       3/21/09       (189,925 )
Juniper Networks, Inc.
     325       22.50       1/17/09       (1,625 )
KB Home
     270       15.00       4/18/09       (62,100 )
Kroger Co. (The)
     425       30.00       1/17/09       (1,700 )
Lennar Corp., Class A
     640       10.00       2/21/09       (54,400 )
Lockheed Martin Corp.
     125       75.00       3/21/09       (150,000 )
MasterCard, Inc., Class A
     55       185.00       1/17/09       (275 )
McAfee, Inc.
     315       30.00       3/21/09       (185,850 )
McDonald’s Corp.
     1,772       65.00       1/17/09       (70,880 )
Medtronic, Inc.
     510       55.00       1/17/09       (2,550 )
Merck & Co., Inc.
     375       35.00       1/17/09       (3,375 )
MetLife, Inc.
     180       35.00       3/21/09       (102,600 )
Microsoft Corp.
     1,070       25.00       1/17/09       (1,070 )
Monsanto Co.
     155       85.00       1/17/09       (3,720 )
Motorola, Inc.
     1,175       5.00       1/17/09       (9,400 )
NRG Energy, Inc.
     170       22.50       3/21/09       (61,200 )
Nucor Corp.
     65       42.50       1/17/09       (31,200 )
Occidental Petroleum Corp.
     475       55.00       2/21/09       (422,750 )
Onyx Pharmaceuticals, Inc.
     90       30.00       2/21/09       (54,900 )
Oracle Corp.
     895       16.00       3/21/09       (241,650 )
PepsiCo, Inc.
     365       55.00       1/17/09       (45,625 )
Petrohawk Energy Corp.
     450       17.50       3/21/09       (94,500 )
Pfizer, Inc.
     2,050       17.50       3/21/09       (260,350 )
Philip Morris International, Inc.
     1,215       45.00       3/21/09       (243,000 )
Precision Castparts Corp.
     45       60.00       3/21/09       (27,000 )
Procter & Gamble Co.
     455       62.50       1/17/09       (50,050 )
Public Service Enterprise Group, Inc.
     410       35.00       3/21/09       (16,400 )
Pulte Homes, Inc.
     520       12.50       4/18/09       (83,200 )

5

 

Table of Contents

                                 
    Number     Strike     Expiration        
Security   of Contracts     Price     Date     Value  
 
QUALCOMM, Inc.
     665     $ 40.00       1/17/09     $ (12,635 )
Raytheon Co.
     250       50.00       2/21/09       (82,500 )
Rogers Communications, Inc., Class B
     415       35.00       1/17/09       (16,600 )
Ryland Group, Inc.
     245       17.50       1/17/09       (36,750 )
Safeway, Inc.
     290       22.50       3/21/09       (76,850 )
Schering-Plough Corp.
     435       15.00       2/21/09       (107,880 )
Schlumberger, Ltd.
     180       55.00       2/21/09       (8,100 )
SPDR S&P Homebuilders ETF
     380       11.00       3/21/09       (76,000 )
Staples, Inc.
     1,460       17.50       3/21/09       (332,150 )
Sysco Corp.
     325       27.50       1/17/09       (1,625 )
T.Rowe Price Group, Inc.
     540       45.00       1/17/09       (5,400 )
Thermo Fisher Scientific, Inc.
     205       35.00       3/21/09       (47,150 )
Toll Brothers, Inc.
     225       22.50       3/21/09       (52,875 )
Travelers Companies, Inc. (The)
     500       35.00       1/17/09       (527,500 )
United Technologies Corp.
     125       55.00       2/21/09       (32,250 )
UnitedHealth Group, Inc.
     415       27.50       1/17/09       (32,785 )
Verizon Communications, Inc.
     355       32.50       1/17/09       (62,125 )
Visa, Inc., Class A
     100       52.50       3/21/09       (46,000 )
Wal-Mart Stores, Inc.
     1,185       55.00       3/21/09       (509,550 )
Waste Management, Inc.
     590       32.50       1/17/09       (73,750 )
Wells Fargo & Co.
     885       27.50       1/17/09       (309,750 )
XTO Energy, Inc.
     200       35.00       2/21/09       (76,400 )
 
                              
 
                                
Total Covered Call Options Written
(premiums received $15,912,606)
                           $ (9,351,765 )
 
                              
 
                                
Other Assets, Less Liabilities — 0.1%
                           $ 548,565  
 
                              
 
                                
Net Assets — 100.0%
                           $ 521,176,443  
 
                              
             
ADR   —  
American Depository Receipt
(1)          
A portion of each security has been segregated as collateral for options written.
(2)          
Non-income producing security.
(3)          
Affiliated investment company available to Eaton Vance portfolios and funds which invests in high quality, U.S. dollar denominated money market instruments. The rate shown is the annualized seven-day yield as of December 31, 2008. Net income allocated from the investment in Cash Management Portfolio for the fiscal year to date ended December 31, 2008 was $113,394.

6

 

Table of Contents

The cost and unrealized appreciation (depreciation) of investments of the Fund at December 31, 2008, as determined on a federal income tax basis, were as follows:
         
Aggregate cost
   $ 669,381,084  
 
      
Gross unrealized appreciation
   $ 10,225,235  
Gross unrealized depreciation
     (149,626,676 )
 
      
Net unrealized depreciation
   $ (139,401,441 )
 
      
Written call options activity for the fiscal year to date ended December 31, 2008 was as follows:
                 
    Number of     Premiums  
    Contracts     Received  
Outstanding, beginning of period
     71,566     $ 16,431,873  
Options written
     55,980       16,808,790  
Options terminated in closing purchase transactions
     (67,499 )     (16,481,510 )
Options expired
     (11,480 )     (846,547 )
 
            
Outstanding, end of period
     48,567     $ 15,912,606  
 
            
At December 31, 2008, the Fund had sufficient cash and/or securities to cover commitments under these contracts.
The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157 (FAS 157), “Fair Value Measurements”, effective October 1, 2008. FAS 157 established a three-tier hierarchy to prioritize the assumptions, referred to as inputs, 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)
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, 2008, the inputs used in valuing the Fund’s investments, which are carried at value, were as follows:
                     
        Investments     Other Financial  
    Valuation Inputs   in Securities     Instruments *  
Level 1
  Quoted Prices   $ 501,637,394     $ (9,351,765 )
Level 2
  Other Significant Observable Inputs     28,342,249       —  
Level 3
  Significant Unobservable Inputs     —       —  
 
               
Total
      $ 529,979,643     $ (9,351,765 )
 
               
         
*   Other financial instruments include written call options.
The Fund held no investments or other financial instruments as of September 30, 2008 whose fair value was determined using Level 3 inputs.
For information on the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements included in its semiannual or annual report to shareholders.

7

 

Table of Contents

Item 2. Controls and Procedures
(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant on this Form N-Q has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant on this Form N-Q has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrant’s internal controls over financial reporting during the fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrant’s internal control over financial reporting.

 

Table of Contents

Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Eaton Vance Enhanced Equity Income Fund
         
By:
  /s/ Duncan W. Richardson
 
Duncan W. Richardson 		   
 
  President    
 
        
Date:
  February 25, 2009    
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
         
By:
  /s/ Duncan W. Richardson
 
Duncan W. Richardson 		   
 
  President    
 
        
Date:
  February 25, 2009    
 
        
By:
  /s/ Barbara E. Campbell    
 
       
 
  Barbara E. Campbell    
 
  Treasurer    
 
        
Date:
  February 25, 2009