UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act File Number

 

811-21670

 

 

 

 

 

 

Eaton Vance Enhanced Equity Income Fund II

(Exact Name of Registrant as Specified in Charter)

 

 

 

The Eaton Vance Building,
255 State Street, Boston, Massachusetts

 

02109

(Address of Principal Executive Offices)

 

(Zip code)

 

 

 

Maureen A. Gemma

Eaton Vance Management, 255 State Street, Boston, Massachusetts 02109

(Name and Address of Agent for Service)

 

Registrant’s Telephone Number, Including Area Code:

 

(617) 482-8260

 

 

 

Date of Fiscal Year End:

 

December 31

 

 

 

Date of Reporting Period:

 

March 31, 2008

 

 


 

Item 1. Schedule of Investments

 


 

Eaton Vance Enhanced Equity Income Fund II

 

as of March 31, 2008

 

 

 

PORTFOLIO OF INVESTMENTS (Unaudited)

 

 

 

Common Stocks (1)— 95.3%

 

Security

 

Shares

 

Value

 

Aerospace & Defense — 5.6%

 

 

 

 

 

Alliant Techsystems, Inc. (2)

 

42,174

 

$

4,366,274

 

Boeing Co. (The)

 

40,897

 

3,041,510

 

General Dynamics Corp.

 

85,056

 

7,091,119

 

Lockheed Martin Corp.

 

64,235

 

6,378,535

 

Precision Castparts Corp.

 

40,892

 

4,174,255

 

Raytheon Co.

 

81,505

 

5,266,038

 

Rockwell Collins, Inc.

 

141,537

 

8,088,840

 

United Technologies Corp.

 

126,301

 

8,692,035

 

 

 

 

 

$

47,098,606

 

Auto Components — 0.4%

 

 

 

 

 

Johnson Controls, Inc.

 

104,460

 

$

3,530,748

 

 

 

 

 

$

3,530,748

 

Beverages — 1.9%

 

 

 

 

 

Coca-Cola Co. (The)

 

69,821

 

$

4,250,004

 

PepsiCo, Inc.

 

155,157

 

11,202,335

 

 

 

 

 

$

15,452,339

 

Biotechnology — 2.0%

 

 

 

 

 

Biogen Idec, Inc. (2)

 

44,580

 

$

2,750,140

 

BioMarin Pharmaceutical, Inc. (2)

 

121,176

 

4,285,995

 

Genzyme Corp. (2)

 

23,114

 

1,722,918

 

Gilead Sciences, Inc. (2)

 

99,119

 

5,107,602

 

Onyx Pharmaceuticals, Inc. (2)

 

98,172

 

2,849,933

 

 

 

 

 

$

16,716,588

 

Capital Markets — 0.8%

 

 

 

 

 

Affiliated Managers Group, Inc. (2)

 

17,588

 

$

1,595,935

 

Goldman Sachs Group, Inc.

 

11,590

 

1,916,870

 

Invesco, Ltd.

 

46,828

 

1,140,730

 

T. Rowe Price Group, Inc.

 

33,828

 

1,691,400

 

 

 

 

 

$

6,344,935

 

Chemicals — 2.3%

 

 

 

 

 

Airgas, Inc.

 

76,873

 

$

3,495,415

 

E.I. Du Pont de Nemours & Co.

 

115,434

 

5,397,694

 

Monsanto Co.

 

32,125

 

3,581,938

 

PPG Industries, Inc.

 

112,551

 

6,810,461

 

 

 

 

 

$

19,285,508

 

Commercial Banks — 0.2%

 

 

 

 

 

M&T Bank Corp.

 

14,376

 

$

1,156,980

 

Toronto-Dominion Bank

 

14,195

 

870,866

 

 

 

 

 

$

2,027,846

 

Commercial Services & Supplies — 1.4%

 

 

 

 

 

Republic Services, Inc.

 

144,750

 

$

4,232,490

 

RR Donnelley & Sons Co.

 

252,152

 

7,642,727

 

 

 

 

 

$

11,875,217

 

Communications Equipment — 3.9%

 

 

 

 

 

Cisco Systems, Inc. (2)

 

675,728

 

$

16,278,288

 

QUALCOMM, Inc.

 

151,650

 

6,217,650

 

Research In Motion, Ltd. (2)

 

67,655

 

7,592,921

 

Riverbed Technology, Inc. (2)

 

166,029

 

2,467,191

 

 

 

 

 

$

32,556,050

 

Computer Peripherals — 4.8%

 

 

 

 

 

Apple, Inc. (2)

 

84,485

 

$

12,123,598

 

EMC Corp. (2)

 

316,414

 

4,537,377

 

Hewlett-Packard Co.

 

253,128

 

11,557,824

 

International Business Machines Corp.

 

101,803

 

11,721,597

 

 

 

 

 

$

39,940,396

 

 

1


 

Construction & Engineering — 0.3%

 

 

 

 

 

Jacobs Engineering Group, Inc. (2)

 

35,222

 

$

2,591,987

 

 

 

 

 

$

2,591,987

 

Diversified Financial Services — 0.6%

 

 

 

 

 

Bank of America Corp.

 

51,056

 

$

1,935,533

 

JPMorgan Chase & Co.

 

79,668

 

3,421,741

 

 

 

 

 

$

5,357,274

 

Diversified Telecommunication Services — 0.7%

 

 

 

 

 

AT&T, Inc.

 

70,997

 

$

2,719,185

 

CenturyTel, Inc.

 

105,285

 

3,499,673

 

 

 

 

 

$

6,218,858

 

Electric Utilities — 0.7%

 

 

 

 

 

E.ON AG

 

17,628

 

$

3,273,625

 

Edison International

 

45,388

 

2,224,920

 

 

 

 

 

$

5,498,545

 

Electrical Equipment — 1.3%

 

 

 

 

 

Cooper Industries, Ltd., Class A

 

67,243

 

$

2,699,806

 

Emerson Electric Co.

 

152,043

 

7,824,133

 

 

 

 

 

$

10,523,939

 

Electronic Equipment & Instruments — 1.5%

 

 

 

 

 

Agilent Technologies, Inc. (2)

 

419,393

 

$

12,510,493

 

 

 

 

 

$

12,510,493

 

Energy Equipment & Services — 5.1%

 

 

 

 

 

BJ Services Co.

 

192,273

 

$

5,481,703

 

Diamond Offshore Drilling, Inc.

 

29,244

 

3,404,002

 

Nabors Industries, Ltd. (2)

 

267,655

 

9,038,709

 

Noble Corp.

 

154,209

 

7,659,561

 

Rowan Cos., Inc.

 

117,304

 

4,830,579

 

Schlumberger, Ltd.

 

77,139

 

6,711,093

 

Transocean, Inc. (2)

 

38,302

 

5,178,430

 

 

 

 

 

$

42,304,077

 

Food & Staples Retailing — 1.4%

 

 

 

 

 

CVS Caremark Corp.

 

104,033

 

$

4,214,377

 

Wal-Mart Stores, Inc.

 

149,973

 

7,900,578

 

 

 

 

 

$

12,114,955

 

Food Products — 2.9%

 

 

 

 

 

H.J. Heinz Co.

 

235,444

 

$

11,058,805

 

Nestle SA ADR

 

54,978

 

6,844,761

 

Tyson Foods, Inc., Class A

 

388,643

 

6,198,856

 

 

 

 

 

$

24,102,422

 

Health Care Equipment & Supplies — 6.4%

 

 

 

 

 

Baxter International, Inc.

 

109,500

 

$

6,331,290

 

Covidien, Ltd.

 

149,892

 

6,632,721

 

DENTSPLY International, Inc.

 

73,010

 

2,818,186

 

Edwards Lifesciences Corp. (2)

 

134,500

 

5,991,975

 

General-Probe, Inc. (2)

 

113,234

 

5,457,879

 

Hospira, Inc. (2)

 

146,795

 

6,278,422

 

Medtronic, Inc. (2)

 

79,420

 

3,841,545

 

Thoratec Corp. (2)

 

509,796

 

7,284,985

 

West Pharmaceutical Services, Inc.

 

61,599

 

2,724,524

 

Wright Medical Group, Inc. (2)

 

116,988

 

2,824,090

 

Zimmer Holdings, Inc. (2)

 

39,114

 

3,045,416

 

 

 

 

 

$

53,231,033

 

Health Care Providers & Services — 2.2%

 

 

 

 

 

DaVita, Inc. (2)

 

171,568

 

$

8,194,088

 

Henry Schein, Inc. (2)

 

129,500

 

7,433,300

 

VCA Antech, Inc. (2)

 

90,666

 

2,479,715

 

 

 

 

 

$

18,107,103

 

Hotels, Restaurants & Leisure — 1.9%

 

 

 

 

 

International Game Technology

 

117,532

 

$

4,725,962

 

Marriott International, Inc., Class A

 

222,136

 

7,632,593

 

McDonald’s Corp.

 

70,053

 

3,906,856

 

 

 

 

 

$

16,265,411

 

 

2


 

Household Durables — 0.4%

 

 

 

 

 

Newell Rubbermaid, Inc.

 

147,571

 

$

3,374,949

 

 

 

 

 

$

3,374,949

 

Household Products — 1.5%

 

 

 

 

 

Colgate-Palmolive Co.

 

51,164

 

$

3,986,187

 

Energizer Holdings, Inc. (2)

 

52,184

 

4,721,608

 

Kimberly-Clark Corp.

 

53,554

 

3,456,911

 

 

 

 

 

$

12,164,706

 

Independent Power Producers & Energy Traders — 1.6%

 

 

 

 

 

Mirant Corp. (2)

 

77,042

 

$

2,803,558

 

NRG Energy, Inc. (2)

 

264,067

 

10,295,972

 

 

 

 

 

$

13,099,530

 

Industrial Conglomerates — 2.3%

 

 

 

 

 

3M Co.

 

32,363

 

$

2,561,531

 

General Electric Co.

 

440,245

 

16,293,467

 

 

 

 

 

$

18,854,998

 

Insurance — 2.2%

 

 

 

 

 

Assurant, Inc.

 

39,551

 

$

2,407,074

 

Berkshire Hathaway, Inc., Class A (2)

 

72

 

9,604,800

 

Lincoln National Corp.

 

48,838

 

2,539,576

 

MetLife, Inc.

 

31,451

 

1,895,237

 

Travelers Companies, Inc. (The)

 

32,036

 

1,532,923

 

 

 

 

 

$

17,979,610

 

Internet Software & Services — 4.7%

 

 

 

 

 

Akamai Technologies, Inc. (2)

 

278,980

 

$

7,856,077

 

eBay, Inc. (2)

 

109,242

 

3,259,781

 

Google, Inc., Class A (2)

 

29,619

 

13,046,281

 

Omniture, Inc. (2)

 

279,498

 

6,487,149

 

VeriSign, Inc. (2)

 

263,886

 

8,771,571

 

 

 

 

 

$

39,420,859

 

IT Services — 1.3%

 

 

 

 

 

Accenture, Ltd., Class A

 

86,260

 

$

3,033,764

 

MasterCard, Inc., Class A

 

34,797

 

7,759,383

 

 

 

 

 

$

10,793,147

 

Life Sciences Tools & Services — 0.8%

 

 

 

 

 

Thermo Fisher Scientific, Inc. (2)

 

122,120

 

$

6,941,301

 

 

 

 

 

$

6,941,301

 

Machinery — 2.3%

 

 

 

 

 

Danaher Corp.

 

76,443

 

$

5,811,961

 

Deere & Co.

 

30,384

 

2,444,089

 

Eaton Corp.

 

101,215

 

8,063,799

 

Illinois Tool Works, Inc.

 

54,589

 

2,632,827

 

 

 

 

 

$

18,952,676

 

Media — 3.0%

 

 

 

 

 

Central European Media Enterprises, Ltd., Class A (2)

 

45,232

 

$

3,855,123

 

Comcast Corp., Class A

 

307,964

 

5,956,024

 

News Corp., Class A

 

137,304

 

2,574,450

 

Omnicom Group, Inc.

 

69,533

 

3,071,968

 

Time Warner, Inc.

 

306,127

 

4,291,901

 

Walt Disney Co.

 

159,977

 

5,020,078

 

 

 

 

 

$

24,769,544

 

Metals & Mining — 1.2%

 

 

 

 

 

Companhia Vale do Rio Doce ADR

 

89,920

 

$

3,114,829

 

Goldcorp, Inc.

 

180,517

 

6,995,034

 

 

 

 

 

$

10,109,863

 

Multiline Retail — 0.9%

 

 

 

 

 

JC Penney Co., Inc.

 

70,362

 

$

2,653,351

 

Macy’s, Inc.

 

123,030

 

2,837,072

 

Nordstrom, Inc.

 

71,654

 

2,335,920

 

 

 

 

 

$

7,826,343

 

Multi-Utilities — 0.3%

 

 

 

 

 

Public Service Enterprise Group, Inc.

 

56,028

 

$

2,251,765

 

 

 

 

 

$

2,251,765

 

 

3


 

Oil, Gas & Consumable Fuels — 5.3%

 

 

 

 

 

Anadarko Petroleum Corp.

 

91,289

 

$

5,753,946

 

ConocoPhillips

 

62,455

 

4,759,696

 

Exxon Mobil Corp.

 

130,909

 

11,072,283

 

Hess Corp.

 

9,155

 

807,288

 

Niko Resources, Ltd.

 

42,877

 

3,478,885

 

Occidental Petroleum Corp.

 

58,793

 

4,301,884

 

Petrohawk Energy Corp. (2)

 

263,894

 

5,322,742

 

Sunoco, Inc.

 

114,245

 

5,994,435

 

Williams Cos., Inc.

 

75,708

 

2,496,850

 

 

 

 

 

$

43,988,009

 

Pharmaceuticals — 4.2%

 

 

 

 

 

Abbott Laboratories

 

189,867

 

$

10,471,165

 

Allergan, Inc.

 

46,586

 

2,626,985

 

Johnson & Johnson

 

163,692

 

10,618,700

 

Merck & Co., Inc.

 

99,011

 

3,757,467

 

Shire PLC ADR

 

73,936

 

4,285,331

 

Wyeth Corp.

 

75,643

 

3,158,852

 

 

 

 

 

$

34,918,500

 

Real Estate Investment Trusts (REITs) — 0.5%

 

 

 

 

 

AvalonBay Communities, Inc.

 

26,061

 

$

2,515,408

 

Boston Properties, Inc.

 

14,127

 

1,300,673

 

Public Storage, Inc.

 

7,781

 

689,552

 

 

 

 

 

$

4,505,633

 

Road & Rail — 0.2%

 

 

 

 

 

JB Hunt Transport Services, Inc.

 

62,021

 

$

1,949,320

 

 

 

 

 

$

1,949,320

 

Semiconductors & Semiconductor Equipment — 5.7%

 

 

 

 

 

ASML Holding NV (2)

 

177,666

 

$

4,407,893

 

Intel Corp.

 

243,081

 

5,148,456

 

Intersil Corp., Class A

 

343,782

 

8,824,884

 

KLA-Tencor Corp.

 

251,487

 

9,330,168

 

Maxim Integrated Products, Inc.

 

660,856

 

13,474,854

 

Nvidia Corp. (2)

 

135,972

 

2,690,886

 

Texas Instruments, Inc.

 

137,894

 

3,898,263

 

 

 

 

 

$

47,775,404

 

Software — 3.2%

 

 

 

 

 

Microsoft Corp.

 

663,265

 

$

18,823,461

 

Oracle Corp. (2)

 

407,236

 

7,965,536

 

 

 

 

 

$

26,788,997

 

Specialty Retail — 1.9%

 

 

 

 

 

Best Buy Co., Inc.

 

77,709

 

$

3,221,815

 

Home Depot, Inc.

 

157,275

 

4,398,982

 

Staples, Inc.

 

368,928

 

8,156,998

 

 

 

 

 

$

15,777,795

 

Tobacco — 2.8%

 

 

 

 

 

Altria Group, Inc.

 

165,327

 

$

3,670,259

 

British American Tobacco PLC

 

57,539

 

2,164,262

 

Loews Corp.-Carolina Group

 

126,858

 

9,203,548

 

Philip Morris International, Inc. (2)

 

165,327

 

8,362,240

 

 

 

 

 

$

23,400,309

 

Wireless Telecommunication Services — 0.7%

 

 

 

 

 

Rogers Communications, Inc., Class B

 

153,366

 

$

5,508,907

 

 

 

 

 

$

5,508,907

 

Total Common Stocks
(identified cost $812,302,066)

 

 

 

$

794,806,495

 

 

Short-Term Investments — 7.4%

 

 

 

Interest

 

 

 

Description

 

(000’s omitted)

 

Value

 

Investment in Cash Management Portfolio, 2.81% (3)

 

$

62,088

 

$

62,088,458

 

Total Short-Term Investments
(identified cost $62,088,458)

 

 

 

$

62,088,458

 

Total Investments — 102.7%
(identified cost $874,390,524)

 

 

 

$

856,894,953

 

 

4


 

Covered Call Options Written — (2.2%)

 

 

 

Number

 

Strike

 

Expiration

 

 

 

Security

 

of Contracts

 

Price

 

Date

 

Value

 

3M Co.

 

140

 

$

80.00

 

7/19/08

 

$

(56,000

)

Abbott Laboratories

 

1,160

 

57.50

 

5/17/08

 

(127,600

)

Accenture, Ltd., Class A

 

270

 

35.00

 

5/17/08

 

(48,600

)

Affiliated Managers Group, Inc.

 

100

 

100.00

 

6/21/08

 

(40,500

)

Agilent Technologies, Inc.

 

1,715

 

32.50

 

5/17/08

 

(94,325

)

Airgas, Inc.

 

768

 

50.00

 

4/19/08

 

(15,360

)

Akamai Technologies, Inc.

 

1,070

 

35.00

 

5/17/08

 

(58,850

)

Allergan, Inc.

 

295

 

60.00

 

7/19/08

 

(72,275

)

Alliant Techsystems, Inc.

 

320

 

110.00

 

5/17/08

 

(36,800

)

Altria Group, Inc.

 

950

 

75.00

 

6/21/08

 

(157,225

)

Anadarko Petroleum Corp.

 

645

 

60.00

 

5/17/08

 

(341,850

)

Apple, Inc.

 

610

 

150.00

 

7/19/08

 

(719,800

)

Assurant, Inc.

 

200

 

65.00

 

6/21/08

 

(43,000

)

AT&T, Inc.

 

385

 

37.50

 

4/19/08

 

(56,980

)

AvalonBay Communities, Inc.

 

50

 

95.00

 

4/19/08

 

(24,250

)

Bank of America Corp.

 

195

 

45.00

 

5/17/08

 

(7,215

)

Baxter International, Inc.

 

700

 

60.00

 

5/17/08

 

(98,000

)

Best Buy Co., Inc.

 

275

 

45.00

 

6/21/08

 

(50,325

)

Biogen Idec, Inc.

 

260

 

65.00

 

4/19/08

 

(29,900

)

BioMarin Pharmaceutical, Inc.

 

825

 

40.00

 

4/19/08

 

(24,750

)

BJ Services Co.

 

825

 

22.50

 

4/19/08

 

(499,125

)

Boeing Co. (The)

 

290

 

85.00

 

5/17/08

 

(6,670

)

Boston Properties, Inc.

 

90

 

100.00

 

7/19/08

 

(34,200

)

Central European Media Entreprises, Ltd., Class A

 

235

 

100.00

 

4/19/08

 

(5,875

)

CenturyTel, Inc.

 

565

 

35.00

 

4/19/08

 

(18,362

)

Cisco Systems, Inc.

 

2,145

 

25.00

 

4/19/08

 

(77,220

)

Coca-Cola Co. (The)

 

295

 

62.50

 

5/17/08

 

(32,450

)

Colgate-Palmolive Co.

 

511

 

80.00

 

5/17/08

 

(61,320

)

Comcast Corp., Class A

 

2,010

 

22.50

 

7/19/08

 

(70,350

)

ConocoPhillips

 

250

 

80.00

 

5/17/08

 

(53,250

)

Cooper Industries, Ltd., Class A

 

672

 

45.00

 

7/19/08

 

(84,000

)

Covidien, Ltd.

 

860

 

45.00

 

4/19/08

 

(55,900

)

CVS Caremark Corp.

 

780

 

42.50

 

5/17/08

 

(78,000

)

Danaher Corp.

 

530

 

80.00

 

6/21/08

 

(127,200

)

Deere & Co.

 

175

 

90.00

 

6/21/08

 

(49,000

)

DENTSPLY International, Inc.

 

385

 

40.00

 

7/19/08

 

(63,525

)

Diamond Offshore Drilling, Inc.

 

115

 

120.00

 

6/21/08

 

(73,600

)

E.I. Du Pont de Nemours & Co.

 

870

 

47.50

 

4/19/08

 

(87,000

)

Eaton Corp.

 

405

 

85.00

 

4/19/08

 

(42,525

)

eBay, Inc.

 

460

 

27.50

 

4/19/08

 

(135,240

)

Edison International

 

275

 

50.00

 

7/19/08

 

(70,812

)

Edwards Lifesciences Corp.

 

695

 

45.00

 

5/17/08

 

(112,937

)

EMC Corp.

 

850

 

15.00

 

7/19/08

 

(90,950

)

Emerson Electric Co.

 

950

 

55.00

 

6/21/08

 

(137,750

)

Energizer Holdings, Inc.

 

345

 

115.00

 

5/17/08

 

(43,125

)

Exxon Mobil Corp.

 

730

 

85.00

 

4/19/08

 

(167,900

)

General Dynamics Corp.

 

420

 

85.00

 

5/17/08

 

(98,700

)

General Electric Co.

 

2,065

 

35.00

 

6/21/08

 

(683,515

)

General-Probe, Inc.

 

535

 

60.00

 

5/17/08

 

(6,688

)

Gilead Sciences, Inc.

 

795

 

47.50

 

5/17/08

 

(413,400

)

Goldcorp, Inc.

 

1,805

 

35.00

 

4/19/08

 

(788,785

)

Goldman Sachs Group, Inc.

 

45

 

180.00

 

4/19/08

 

(7,875

)

H.J. Heinz Co.

 

1,095

 

45.00

 

6/21/08

 

(350,400

)

Henry Schein, Inc.

 

1,295

 

60.00

 

4/19/08

 

(45,325

)

Hewlett Packard Co.

 

1,585

 

50.00

 

5/17/08

 

(126,800

)

Home Depot, Inc.

 

850

 

27.50

 

5/17/08

 

(158,950

)

Hospira, Inc.

 

1,467

 

45.00

 

5/17/08

 

(161,370

)

Illinois Tool Works, Inc.

 

310

 

50.00

 

6/21/08

 

(59,520

)

Intel Corp.

 

750

 

22.50

 

4/19/08

 

(26,250

)

International Business Machines Corp.

 

625

 

110.00

 

4/19/08

 

(450,000

)

International Game Technology

 

740

 

40.00

 

4/19/08

 

(166,500

)

Intersil Corp., Class A

 

1,705

 

25.00

 

4/19/08

 

(255,750

)

 

5


 

Jacobs Engineering Group, Inc.

 

235

 

$

80.00

 

7/19/08

 

$

(131,600

)

JC Penney Co., Inc.

 

420

 

42.50

 

5/17/08

 

(54,600

)

Johnson & Johnson

 

780

 

65.00

 

4/19/08

 

(84,240

)

Johnson Controls, Inc.

 

390

 

35.00

 

4/19/08

 

(31,200

)

JPMorgan Chase & Co.

 

400

 

47.50

 

6/21/08

 

(67,200

)

Kimberly-Clark Corp.

 

395

 

65.00

 

4/19/08

 

(31,205

)

KLA-Tencor Corp.

 

780

 

45.00

 

6/21/08

 

(35,100

)

Lincoln National Corp.

 

235

 

55.00

 

4/19/08

 

(15,275

)

Lockheed Martin Corp.

 

385

 

110.00

 

6/21/08

 

(46,200

)

Loews Corp.-Carolina Group

 

540

 

80.00

 

6/21/08

 

(43,200

)

M&T Bank Corp.

 

90

 

90.00

 

4/19/08

 

(6,750

)

Macy’s, Inc.

 

755

 

30.00

 

5/17/08

 

(15,100

)

Marriott International, Inc., Class A

 

1,340

 

35.00

 

4/19/08

 

(147,400

)

MasterCard, Inc., Class A

 

205

 

195.00

 

4/19/08

 

(590,400

)

McDonald’s Corp.

 

415

 

57.50

 

6/21/08

 

(83,000

)

Medtronic, Inc.

 

340

 

47.50

 

5/17/08

 

(71,400

)

Merck & Co., Inc.

 

445

 

45.00

 

7/19/08

 

(42,275

)

MetLife, Inc.

 

150

 

60.00

 

6/21/08

 

(72,000

)

Microsoft Corp.

 

3,160

 

30.00

 

7/19/08

 

(417,120

)

Mirant Corp.

 

355

 

37.50

 

6/21/08

 

(67,450

)

Monsanto Co.

 

175

 

110.00

 

7/19/08

 

(225,750

)

Nabors Industries, Ltd.

 

1,400

 

27.50

 

6/21/08

 

(959,000

)

Newell Rubbermaid, Inc.

 

950

 

25.00

 

6/21/08

 

(47,500

)

News Corp., Class A

 

840

 

20.00

 

7/19/08

 

(69,300

)

Noble Corp.

 

880

 

47.50

 

6/21/08

 

(528,000

)

Nordstrom, Inc.

 

500

 

40.00

 

7/19/08

 

(65,000

)

NRG Energy, Inc.

 

930

 

40.00

 

6/21/08

 

(211,575

)

Nvidia Corp.

 

855

 

22.50

 

6/21/08

 

(111,150

)

Occidental Petroleum Corp.

 

335

 

70.00

 

5/17/08

 

(224,450

)

Omnicom Group, Inc.

 

375

 

45.00

 

7/19/08

 

(89,063

)

Omniture, Inc.

 

1,425

 

25.00

 

6/21/08

 

(334,875

)

Onyx Pharmaceuticals, Inc.

 

345

 

30.00

 

5/17/08

 

(87,975

)

Oracle Corp.

 

2,690

 

20.00

 

6/21/08

 

(295,900

)

PepsiCo, Inc.

 

920

 

70.00

 

4/19/08

 

(257,600

)

Petrohawk Energy Corp.

 

1,665

 

17.50

 

6/21/08

 

(557,775

)

PPG Industries, Inc.

 

525

 

65.00

 

5/17/08

 

(42,000

)

Precision Castparts Corp.

 

170

 

120.00

 

6/21/08

 

(47,600

)

Public Service Enterprise Group, Inc.

 

275

 

45.00

 

6/21/08

 

(17,875

)

QUALCOMM, Inc.

 

590

 

40.00

 

4/19/08

 

(107,970

)

Raytheon Co.

 

525

 

65.00

 

5/17/08

 

(105,000

)

Republic Services, Inc.

 

735

 

30.00

 

4/19/08

 

(29,400

)

Research In Motion, Ltd.

 

350

 

120.00

 

6/21/08

 

(346,500

)

Riverbed Technology, Inc.

 

705

 

17.50

 

6/21/08

 

(78,255

)

Rogers Communications, Inc., Class B

 

925

 

40.00

 

4/19/08

 

(13,875

)

Rowan Cos., Inc.

 

580

 

35.00

 

4/19/08

 

(348,000

)

RR Donnelley & Sons Co.

 

2,521

 

40.00

 

6/21/08

 

(37,815

)

Schlumberger, Ltd.

 

235

 

80.00

 

5/17/08

 

(220,900

)

Shire PLC ADR

 

335

 

55.00

 

4/19/08

 

(140,700

)

Staples, Inc.

 

2,505

 

25.00

 

6/21/08

 

(162,825

)

Sunoco, Inc.

 

855

 

65.00

 

5/17/08

 

(34,200

)

T. Rowe Price Group, Inc.

 

125

 

50.00

 

4/19/08

 

(31,875

)

Texas Instruments, Inc.

 

475

 

30.00

 

7/19/08

 

(64,125

)

Thermo Fisher Scientific, Inc.

 

765

 

55.00

 

6/21/08

 

(321,300

)

Thoratec Corp.

 

2,350

 

17.50

 

4/19/08

 

(35,250

)

Time Warner, Inc.

 

2,015

 

16.00

 

4/19/08

 

(10,075

)

Toronto-Dominion Bank

 

225

 

37.50

 

6/21/08

 

(19,800

)

Transocean, Inc.

 

210

 

130.00

 

5/17/08

 

(235,200

)

Travelers Companies, Inc. (The)

 

200

 

50.00

 

7/19/08

 

(54,000

)

Tyson Foods, Inc., Class A

 

2,165

 

15.00

 

4/19/08

 

(272,790

)

United Technologies, Corp.

 

855

 

75.00

 

5/17/08

 

(50,445

)

VCA Antech, Inc.

 

320

 

30.00

 

6/21/08

 

(41,600

)

VeriSign, Inc.

 

1,585

 

37.50

 

6/21/08

 

(182,275

)

Wal-Mart Stores, Inc.

 

875

 

50.00

 

6/21/08

 

(367,500

)

Walt Disney Co.

 

1,080

 

30.00

 

4/19/08

 

(191,160

)

 

6


 

West Pharmaceutical Services, Inc.

 

265

 

$

45.00

 

6/21/08

 

$

(80,825

)

Williams Cos, Inc.

 

305

 

32.50

 

5/17/08

 

(61,000

)

Wright Medical Group, Inc.

 

835

 

25.00

 

5/17/08

 

(85,588

)

Wyeth Corp.

 

355

 

40.00

 

4/19/08

 

(83,425

)

Zimmer Holdings, Inc.

 

215

 

80.00

 

6/21/08

 

(73,100

)

Total Covered Call Options Written
(premiums received $21,363,006)

 

 

 

 

 

 

 

$

(18,293,595

)

Other Assets, Less Liabilities — (0.5)%

 

 

 

 

 

 

 

$

(4,452,353

)

Net Assets — 100.0%

 

 

 

 

 

 

 

$

834,149,005

 

 

ADR

—

American Depository Receipt

(1)

 

A portion of each common stock holding 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 March 31, 2008. Net income allocated from the Investment in Cash Management Portfolio for the fiscal year to date ended March 31, 2008 was $534,970.

 

The cost and unrealized appreciation (depreciation) of investments of the Fund at March 31, 2008, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

 

$

877,849,026

 

Gross unrealized appreciation

 

 

36,668,434

 

Gross unrealized depreciation

 

(57,622,507

)

Net unrealized depreciation

 

$

(20,954,073

)

 

Written call option activity for the period ended March 31, 2008 was as follows:

 

 

 

Number of
Contracts

 

Premiums Received

 

Outstanding, beginning of period

 

113,762

 

$

26,747,863

 

Options written

 

125,228

 

28,585,921

 

Options terminated in closing purchase transactions

 

(120,539

)

(30,311,548

)

Options expired

 

(21,967

)

(3,659,230

)

Outstanding, end of period

 

96,484

 

$

21,363,006

 

 

At March 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 January 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)

 

At March 31, 2008, the inputs used in valuing the Fund’s investments, which are carried at value, were as follows:

 

 

 

Valuation Inputs

 

Investments in
Securities

 

Other Financial
Instruments*

 

Level 1

 

Quoted Prices

 

$

851,457,066

 

$

(18,293,595

)

Level 2

 

Other Significant Observable Inputs

 

5,437,887

 

—

 

Level 3

 

Significant Unobservable Inputs

 

—

 

—

 

Total

 

 

 

$

856,894,953

 

$

(18,293,595

)

 

*Other financial instruments include written call options, which are valued at the unrealized appreciation (depreciation) on the instrument.

 

The Fund held no investments or other financial instruments as of December 31, 2007 whose fair value was determined using Level 3 inputs.

 

7


 

Equity securities listed on a U.S. securities exchange generally are valued at the last sale price on the day of valuation or, if no sales took place on such date, at the mean between the closing bid and asked prices therefore on the exchange where such securities are principally traded. Equity securities listed on the NASDAQ Global or Global Select Market generally are valued at the NASDAQ official closing price. Unlisted or listed securities for which closing sales prices or closing quotations are not available are valued at the mean between the latest available bid and asked prices or, in the case of preferred equity securities that are not listed or traded in the over-the-counter market, by an independent pricing service. Exchange-traded options are valued at the last sale price for the day of valuation as quoted on the principal exchange or board of trade on which the options are traded or, in the absence of sales on such date, at the mean between the latest bid and asked prices therefore. Over-the-counter options are valued based on broker quotations. Short-term debt securities with a remaining maturity of sixty days or less are valued at amortized cost, which approximates market value. If short-term debt securities are acquired with a remaining maturity of more than sixty days, they will be valued by a pricing service. Other fixed income and debt securities, including listed securities and securities for which price quotations are available, will normally be valued on the basis of valuations furnished by a pricing service.  Valuations for debt obligations are derived from the pricing vendors’ proprietary pricing models.  Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, benchmark curves or information pertaining to the issuer.  The pricing vendor may use a matrix approach which considers information regarding securities with similar characteristics in order to determine the valuation for a security.  Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rate quotations supplied by an independent quotation service.  The independent service uses a proprietary model to determine the exchange rate.  Inputs to the model include reported trades and implied bid/ask spreads. The daily valuation of exchange-traded foreign securities generally is determined as of the close of trading on the principal exchange on which such securities trade. Events occurring after the close of trading on foreign exchanges may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange. When valuing foreign equity securities that meet certain criteria, the Trustees have approved the use of a fair value service that values such securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that have a strong correlation to the fair-valued securities. Investments for which valuations or market quotations are not readily available are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the Fund considering relevant factors, data and information including the market value of freely tradable securities of the same class in the principal market on which such securities are normally traded.

 

8


 

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.

 


 

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 II

 

By:

 

/s/ Duncan W. Richardson

 

 

Duncan W. Richardson

 

 

President

 

 

 

Date:

 

May 21, 2008

 

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:

 

May 21, 2008

 

By:

 

/s/ Barbara E. Campbell

 

 

Barbara E. Campbell

 

 

Treasurer

 

 

 

Date:

 

May 21, 2008