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Eaton Vance

Global Income Builder NextShares (EVGBC)

Listing Exchange: The NASDAQ Stock Market LLC

Semiannual Report

April 30, 2022

 

 

 

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NextShares ® is a registered trademark of NextShares Solutions LLC. All rights reserved.


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Commodity Futures Trading Commission Registration. The Commodity Futures Trading Commission (“CFTC”) has adopted regulations that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a prescribed level of its assets in certain CFTC-regulated instruments (including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. The investment adviser has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act with respect to its management of the Fund. Accordingly, neither the Fund nor the adviser with respect to the operation of the Fund is subject to CFTC regulation. Because of its management of other strategies, the Fund’s adviser is registered with the CFTC as a commodity pool operator. The adviser is also registered as a commodity trading advisor.

Fund shares are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.

This report must be preceded or accompanied by a current summary prospectus or prospectus. Before investing in NextShares, investors should consider carefully the investment objective, risks, and charges and expenses. This and other important information is contained in the summary prospectus and prospectus, which can be obtained from a financial intermediary. Prospective investors should read the prospectus carefully before investing. For further information, please call 1-800-262-1122.


Table of Contents

Semiannual Report April 30, 2022

Eaton Vance

Global Income Builder NextShares

 

Table of Contents

  

Performance

     2  

Fund Profile

     3  

Endnotes and Additional Disclosures

     4  

Fund Expenses

     5  

Financial Statements

     6  

Officers and Trustees

     40  

Privacy Notice

     41  

Important Notices

     43  


Table of Contents

Eaton Vance

Global Income Builder NextShares

April 30, 2022

 

Performance

 

Portfolio Manager(s) Christopher M. Dyer, CFA and Jeffrey D. Mueller, of Eaton Vance Advisers International Ltd.; John H. Croft, CFA, and Derek J.V. DiGregorio, of Boston Management and Research

 

% Average Annual Total Returns 1,2,3    Fund
Inception Date
     Performance
Inception Date
     Six Months     One Year     Five Years      Ten Years      Since Fund
Inception
 

Fund at NAV

     03/30/2016        11/30/2005        (11.57 )%      (6.22 )%      6.79      7.75      7.49

Fund at Market Price

     03/30/2016        03/30/2016        (11.55     (6.13     6.84               7.51  

 

MSCI World Index

                   (11.30 )%      (3.52 )%      10.16      10.05      10.97

ICE BofA Developed Markets High Yield

Ex-Subordinated Financial Index

                   (9.11     (8.13     2.92        4.50        5.68  

Blended Index

                   (10.50     (5.05     7.70        8.17        8.92  
% Total Annual Operating Expense Ratios 4                                                

Gross

                     2.16

Net

                     0.85  

 

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, Fund performance may be lower or higher than the quoted return. The Fund’s performance at market price will differ from its results at net asset value (NAV). The market price used to calculate the Market Price return is the midpoint between the highest bid and the lowest offer on the exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. If you trade your shares at another time during the day, your return may differ. Returns are historical and are calculated by determining the percentage change in NAV or market price (as applicable) with all distributions reinvested at NAV or closing market price (as applicable) on the payment date of the distribution, and are net of management fees and other expenses. 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 for periods less than or equal to one year is cumulative. For performance as of the most recent month-end, including historical trading premiums/discounts relative to NAV, please refer to eatonvance.com.

 

  2  


Table of Contents

Eaton Vance

Global Income Builder NextShares

April 30, 2022

 

Fund Profile

 

 

Country Allocation (% of net assets)

 

 

 

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Asset Allocation (% of net assets)**

 

 

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Footnotes:

Fund invests in an affiliated investment company (Portfolio) with the same objective(s) and policies as the Fund. References to investments are to the Portfolio’s holdings.

 

*

Excludes cash and cash equivalents.

 

**

Other Net Assets represents other assets less liabilities and includes any investment type that represents less than 1% of net assets.

Top 10 Holdings (% of net assets)*

 

 

Alphabet, Inc., Class C

     2.9

Microsoft Corp.

     2.6  

Apple, Inc.

     1.7  

EOG Resources, Inc.

     1.4  

Amazon.com, Inc.

     1.3  

Eli Lilly & Co.

     1.2  

ASML Holding NV

     1.1  

Berkshire Hathaway, Inc., Class B

     1.1  

Coca-Cola Co. (The)

     1.1  

Novo Nordisk A/S, Class B

     1.1  

Total

     15.5
 

 

  3  


Table of Contents

Eaton Vance

Global Income Builder NextShares

April 30, 2022

 

Endnotes and Additional Disclosures

 

1  

MSCI World Index is an unmanaged index of equity securities in the developed markets. MSCI indexes are net of foreign withholding taxes. Source: MSCI. MSCI data may not be reproduced or used for any other purpose. MSCI provides no warranties, has not prepared or approved this report, and has no liability hereunder. ICE BofA Developed Markets High Yield Ex-Subordinated Financial Index is an unmanaged index of global developed market, below investment grade corporate bonds. ICE ® BofA ® indices are not for redistribution or other uses; provided ‘‘as is’’, without warranties, and with no liability. Eaton Vance has prepared this report and ICE Data Indices, LLC does not endorse it, or guarantee, review, or endorse Eaton Vance’s products. BofA ® is a licensed registered trademark of Bank of America Corporation in the United States and other countries. The Blended Index consists of 65% MSCI World Index and 35% ICE BofA Developed Markets High Yield Ex-Subordinated Financial Index, rebalanced monthly. 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. Performance since inception for an index, if presented, is the performance since the Fund’s or oldest share class’ inception, as applicable.

 

2  

Shares of NextShares funds are normally bought and sold in the secondary market through a broker, and may not be individually purchased or redeemed from the fund. In the secondary market, buyers and sellers transact with each other, rather than with the fund. NextShares funds issue and redeem shares only in specified creation unit quantities in transactions by or through Authorized Participants. In such transactions, a fund issues and redeems shares in exchange for the basket of securities, other instruments and/or cash that the fund specifies each business day. By transacting in kind, a NextShares fund can lower its trading costs and enhance fund tax efficiency by avoiding forced sales of securities to meet redemptions. Redemptions may be effected partially or entirely in cash when in-kind delivery is not practicable or deemed not in the best interests of shareholders. A fund’s basket is not intended to be representative of the fund’s current portfolio positions and may vary significantly from current positions. As exchange-traded securities, NextShares can operate with low transfer agency expenses by utilizing the same highly efficient share processing system as used for exchange-listed stocks and exchange-traded funds. Market trading prices of NextShares are linked to the fund’s next-computed net asset value (NAV) and will vary from NAV by a market-determined premium or discount, which may be zero. Buyers and sellers of NextShares will not know the value of their purchases and sales until after the fund’s NAV is determined at the end of the trading day. Market trading prices may vary significantly from anticipated levels. NextShares do not offer investors the opportunity to buy and sell intraday based on current (versus end-of-day) determinations of fund value. NextShares trade execution prices will fluctuate based on changes in NAV. Although limit orders may be used to control trading costs, they cannot be used to control or limit trade execution prices. As a new type of fund, NextShares have a limited operating history and may initially be available through a limited number of brokers. There can be no guarantee that an active trading market for NextShares will develop or be maintained, or that their listing will continue unchanged. Buying and selling NextShares may require payment of brokerage commissions and expose transacting shareholders to other trading costs. Frequent trading may detract from realized investment returns. The return on a shareholder’s NextShares investment will be reduced if the shareholder sells shares at a greater discount or narrower premium to NAV than he or she acquired the shares.

3  

The Fund pursues its investment objective by investing in a separate investment fund (the Portfolio). The returns at NAV for periods before the date the Fund commenced operations are for a mutual fund that invests in the Portfolio (the Portfolio Investor). The performance during such period does not represent the performance of the Fund. The prior investment performance of the Portfolio Investor (rather than the Portfolio itself) is shown because it reflects the expenses typically borne by a retail fund investing in the Portfolio. The Portfolio Investor returns are not adjusted to reflect differences between the total net operating expenses of the Fund and the Portfolio Investor during the periods shown. If such an adjustment were made, the performance presented would be higher, because the Fund’s total net operating expenses are lower than those of the Portfolio Investor. Performance is for a share class of the Portfolio Investor offered at net asset value. Performance presented in the Financial Highlights included in the financial statements is not linked.

Prior to December 7, 2015, the Portfolio Investor invested at least 80% of net assets in dividend-paying common and preferred stocks. Effective December 7, 2015, the Portfolio Investor changed its name and its principal investment strategies to invest in common stocks, preferred stocks and other hybrid securities and income instruments of U.S. and foreign issuers. As of such date, the Portfolio Investor was no longer required to invest at least 80% of its net assets in dividend-paying common and preferred stocks.

 

4  

Source: Fund prospectus. Net expense ratios reflect a contractual expense reimbursement that continues through 2/28/23. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report. Performance reflects expenses waived and/or reimbursed, if applicable. Without such waivers and/or reimbursements, performance would have been lower.

 

 

  4  


Table of Contents

Eaton Vance

Global Income Builder NextShares

April 30, 2022

 

Fund Expenses

 

 

Example

As a Fund shareholder, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of Fund investing and to compare these costs with the ongoing costs of investing in other funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2021 to April 30, 2022).

Actual Expenses

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the actual Fund expense ratio and an assumed rate of return of 5% per year (before expenses), which is not the actual Fund return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions on purchases and sales of Fund shares. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would be higher.

 

     Beginning
Account Value
(11/1/21)
     Ending
Account Value
(4/30/22)
     Expenses Paid
During Period*
(11/1/21 – 4/30/22)
     Annualized
Expense
Ratio
 

Actual

 

  $ 1,000.00      $ 884.30      $ 3.97 **       0.85
 

Hypothetical

 

(5% return per year before expenses)

 

  $ 1,000.00      $ 1,020.58      $ 4.26 **       0.85

 

*

Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on October 31, 2021. The Example reflects the expenses of both the Fund and the Portfolio.

 

**

Absent an allocation of certain expenses to affiliates, expenses would be higher.

 

  5  


Table of Contents

Eaton Vance

Global Income Builder NextShares

April 30, 2022

 

Statement of Assets and Liabilities (Unaudited)

 

 

Assets    April 30, 2022  

Investment in Global Income Builder Portfolio, at value (identified cost $0)

   $ 1,063,038  

Receivable from affiliates

     15,528  

Total assets

   $ 1,078,566  
Liabilities         

Payable to affiliates:

  

Administration fee

   $ 135  

Operations agreement fee

     45  

Trustees’ fees

     42  

Accrued expenses

     36,046  

Total liabilities

   $ 36,268  

Net Assets

   $ 1,042,298  
Sources of Net Assets         

Paid-in capital

   $ 4,753,513  

Accumulated loss

     (3,711,215

Net Assets

   $ 1,042,298  
Net Asset Value Per Share         

($1,042,298 ÷ 100,000 shares issued and outstanding)

   $ 10.42  

 

  6   See Notes to Financial Statements.


Table of Contents

Eaton Vance

Global Income Builder NextShares

April 30, 2022

 

Statement of Operations (Unaudited)

 

 

Investment Income    Six Months Ended
April 30, 2022
 

Dividend income allocated from Portfolio (net of foreign taxes withheld of $1,782)

   $ 13,580  

Interest and other income allocated from Portfolio (net of foreign taxes withheld of $25)

     13,503  

Expenses allocated from Portfolio

     (3,802

Total investment income from Portfolio

   $ 23,281  
Expenses         

Administration fee

   $ 863  

Operations agreement fee

     288  

Trustees’ fees and expenses

     250  

Custodian fee

     5,876  

Transfer and dividend disbursing agent fees

     6,810  

Legal and accounting services

     12,679  

Printing and postage

     5,895  

Listing fee

     3,570  

Intraday pricing fee

     5,951  

Miscellaneous

     2,922  

Total expenses

   $ 45,104  

Deduct:

  

Allocation of expenses to affiliates

   $ 44,004  

Total expense reductions

   $ 44,004  

Net expenses

   $ 1,100  

Net investment income

   $ 22,181  
Realized and Unrealized Gain (Loss)         

Net realized gain (loss):

  

Investment transactions - affiliated Portfolio

   $ 47,230  

Net realized gain (loss) allocated from affiliated Portfolio:

  

Investment transactions (net of foreign capital gains taxes of $13)

     17,672  

Futures contracts

     (1,887

Foreign currency transactions

     (224

Forward foreign currency exchange contracts

     (7

Net realized gain

   $ 62,784  

Change in unrealized appreciation (depreciation):

  

Investments - affiliated Portfolio

   $ (47,230

Change in unrealized appreciation (depreciation) allocated from affiliated Portfolio:

  

Investments (including net increase in accrued foreign capital gains taxes of $99)

     (169,867

Futures contracts

     (3,609

Foreign currency

     (204

Forward foreign currency exchange contracts

     31  

Net change in unrealized appreciation (depreciation)

   $ (220,879

Net realized and unrealized loss

   $ (158,095

Net decrease in net assets from operations

   $ (135,914

 

  7   See Notes to Financial Statements.


Table of Contents

Eaton Vance

Global Income Builder NextShares

April 30, 2022

 

Statements of Changes in Net Assets

 

 

Increase (Decrease) in Net Assets    Six Months Ended
April 30, 2022
(Unaudited)
     Year Ended
October 31, 2021
 

From operations:

     

Net investment income

   $ 22,181      $ 194,430  

Net realized gain

     62,784        521,210 (1)  

Net change in unrealized appreciation (depreciation)

     (220,879      845,953  

Net increase (decrease) in net assets from operations

   $ (135,914    $ 1,561,593  

Distributions to shareholders

   $ (51,070    $ (247,140

Transactions in Fund shares:

     

Cost of shares redeemed

   $      $ (5,959,180

Transaction fees

            659  

Net decrease in net assets from Fund share transactions

   $      $ (5,958,521

Other capital:

     

Portfolio transaction fee contributed to Portfolio

   $ (259    $ (1,634

Portfolio transaction fee allocated from Portfolio

     231        3,446  

Net increase (decrease) in net assets from other capital

   $ (28    $ 1,812  

Net decrease in net assets

   $ (187,012    $ (4,642,256
Net Assets                  

At beginning of period

   $ 1,229,310      $ 5,871,566  

At end of period

   $ 1,042,298      $ 1,229,310  
Changes in shares outstanding                  

Shares outstanding, beginning of period

     100,000        600,000  

Shares redeemed

     0        (500,000

Shares outstanding, end of period

     100,000        100,000  

 

(1)   Includes $65,181 of net realized gains from redemptions in-kind.

     

 

  8   See Notes to Financial Statements.


Table of Contents

Eaton Vance

Global Income Builder NextShares

April 30, 2022

 

Financial Highlights

 

 

   

Six Months Ended
April 30, 2022

(Unaudited)

   

Year Ended October 31,

 
     2021      2020      2019     2018     2017 (1)  

Net asset value — Beginning of period

  $ 12.290     $ 9.790      $ 9.890      $ 9.990     $ 11.200     $ 10.140  
Income (Loss) From Operations                                                  

Net investment income (2)

  $ 0.222     $ 0.338      $ 0.390      $ 0.469     $ 0.358     $ 0.502  

Net realized and unrealized gain (loss)

    (1.581     2.571        (0.147      0.535       (0.435     1.073  

Total income (loss) from operations

  $ (1.359   $ 2.909      $ 0.243      $ 1.004     $ (0.077   $ 1.575  
Less Distributions                                                  

From net investment income

  $ (0.210   $ (0.412    $ (0.347    $ (0.369   $ (1.083   $ (0.519

From net realized gain

    (0.301                   (0.608     (0.051      

Tax return of capital

                        (0.130            

Total distributions

  $ (0.511   $ (0.412    $ (0.347    $ (1.107   $ (1.134   $ (0.519

Portfolio transaction fee, net (2)

  $ (0.000 ) (3)     $ 0.003      $ 0.004      $ 0.003     $ 0.001     $ 0.004  

Net asset value — End of period

  $ 10.420     $ 12.290      $ 9.790      $ 9.890     $ 9.990     $ 11.200  

Total Return on Net Asset Value (4)(5)

    (11.57 )% (6)       30.18      2.57      11.48     (1.10 )%      15.89
Ratios/Supplemental Data                                                  

Net assets, end of period (000’s omitted)

  $ 1,042     $ 1,229      $ 5,872      $ 6,182     $ 6,243     $ 6,720  

Ratios (as a percentage of average daily net assets): (7)

             

Expenses (5)

    0.85 % (8)(10)       0.85      0.85      0.88     0.91 % (9)       0.91 % (9)  

Net investment income

    3.86 % (8)       2.91      4.02      4.91     3.32     4.71

Portfolio Turnover of the Portfolio

    35 % (6)       60      118      86     102     143

 

(1)  

Per share data reflect a 2-for-1 share split effective March 9, 2018.

 

(2)  

Computed using average shares outstanding.

 

(3)  

Amount is less than $(0.0005).

 

(4)  

Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of a market-determined premium or discount. Investment returns assume that all distributions have been reinvested at net asset value.

 

(5)  

The administrator and sub-adviser reimbursed certain operating expenses (equal to 7.66%, 1.31%, 2.08%, 1.70%, 1.57% and 0.57% of average daily net assets for the six months ended April 30, 2022 and the years ended October 31, 2021, 2020, 2019, 2018 and 2017, respectively). Absent this reimbursement, total return would be lower.

 

(6)  

Not annualized.

 

(7)  

Includes the Fund’s share of the Portfolio’s allocated expenses.

 

(8)  

Annualized.

 

(9)  

Includes interest expense, including allocated from the Portfolio of 0.01% and 0.01% for the years ended October 31, 2018 and October 31, 2017, respectively.

 

(10)  

Includes a reduction by the investment adviser of a portion of the Portfolio’s adviser fee due to the Portfolio’s investment in the Liquidity Fund (equal to less than 0.005% of average daily net assets for the six months ended April 30, 2022).

 

  9   See Notes to Financial Statements.


Table of Contents

Eaton Vance

Global Income Builder NextShares

April 30, 2022

 

Notes to Financial Statements (Unaudited)

 

 

1   Significant Accounting Policies

Eaton Vance Global Income Builder NextShares (the Fund) is a diversified series of Eaton Vance NextShares Trust (the Trust), a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act). The Fund is an exchange-traded managed fund operating pursuant to an order issued by the SEC granting an exemption from certain provisions of the 1940 Act. Individual shares of the Fund may be purchased and sold only on a national securities exchange or alternative trading system through a broker-dealer that offers NextShares, and may not be directly purchased or redeemed from the Fund. Market trading prices for the Fund are directly linked to the Fund’s next-computed net asset value per share (NAV) and will vary from NAV by a market-determined premium or discount, which may be zero. The Fund invests all of its investable assets in interests in Global Income Builder Portfolio (the Portfolio), a Massachusetts business trust having substantially the same investment objective and policies as the Fund. The value of the Fund’s investment in the Portfolio reflects the Fund’s proportionate interest in the net assets of the Portfolio (0.4% at April 30, 2022). The performance of the Fund is directly affected by the performance of the Portfolio. The financial statements of the Portfolio, including the portfolio of investments, are included elsewhere in this report and should be read in conjunction with the Fund’s financial statements.

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  — Valuation of securities by the Portfolio is discussed in Note 1A of the Portfolio’s Notes to Financial Statements, which are included elsewhere in this report.

B Income  — The Fund’s net investment income or loss consists of the Fund’s pro-rata share of the net investment income or loss of the Portfolio, less all actual and accrued expenses of the Fund.

C 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 April 30, 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.

D Expenses  —The majority of expenses of the Trust are directly identifiable to an individual fund. Expenses which are not readily identifiable to a specific fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the funds.

E 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.

F Indemnifications  —Under the Trust’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 Trust) could be deemed to have personal liability for the obligations of the Trust. However, the Trust’s Declaration of Trust contains an express disclaimer of liability on the part of Fund shareholders and the By-laws provide that the Trust 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.

G Other  — Investment transactions are accounted for on a trade date basis.

H Interim Financial Statements  — The interim financial statements relating to April 30, 2022 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Fund’s management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.

2 Distributions to Shareholders and Income Tax Information

It is the present policy of the Fund to make monthly distributions of all or substantially all of its net investment income and to distribute annually all or substantially all of its net realized capital gains. Distributions are paid in cash and cannot be automatically reinvested in additional shares of the Fund. Distributions to shareholders 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.

 

  10  


Table of Contents

Eaton Vance

Global Income Builder NextShares

April 30, 2022

 

Notes to Financial Statements (Unaudited) — continued

 

 

3 Investment Adviser, Administration Fees 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 investment adviser fee is computed at an annual rate as a percentage of the Fund’s average daily net assets that are not invested in other investment companies for which EVM or its affiliates serve as investment adviser and receive an advisory fee as follows and is payable monthly:

 

Average Daily Net Assets    Annual Fee Rate  

Up to $500 million

     0.550

$500 million but less than $1 billion

     0.525

$1 billion but less than $2.5 billion

     0.500

$2.5 billion and over

     0.475

For the six months ended April 30, 2022, the Fund incurred no investment adviser fee on such assets.

Pursuant to an investment sub-advisory agreement, EVM has delegated a portion of the investment management of the Fund to Eaton Vance Advisers International Ltd. (EVAIL), an affiliate of EVM and an indirect, wholly-owned subsidiary of Morgan Stanley. EVM pays EVAIL a portion of its investment adviser fee for sub-advisory services provided to the Fund. To the extent the Fund’s assets are invested in the Portfolio, the Fund is allocated its share of the Portfolio’s investment adviser fee. The Portfolio has engaged Boston Management and Research (BMR), a subsidiary of EVM, to render investment advisory services. See Note 2 of the Portfolio’s Notes to Financial Statements which are included elsewhere in this report. The administration fee is earned by EVM for administering the business affairs of the Fund. The administration fee is computed at an annual rate of 0.15% of the Fund’s average daily net assets. For the six months ended April 30, 2022, the administration fee amounted to $863.

The Trust, on behalf of the Fund, has entered into an operations agreement with EVM pursuant to which EVM provides the Fund with services required for it to operate as a NextShares exchange-traded managed fund in accordance with the exemptive order obtained by EVM and the Trust. Pursuant to the agreement, the Fund pays EVM a monthly fee at an annual rate of 0.05% of the Fund’s average daily net assets provided the average net assets of NextShares funds sponsored by EVM (“Covered Assets”) are less than $10 billion. The annual rate is reduced if Covered Assets are $10 billion and above. For the six months ended April 30, 2022, the operations agreement fee amounted to $288 or 0.05% (annualized) of the Fund’s average daily net assets.

EVM and EVAIL have agreed to reimburse the Fund’s expenses to the extent that total annual operating expenses (relating to ordinary operating expenses only and excluding such expenses as borrowing costs, taxes or litigation expenses) exceed 0.85% of the Fund’s average daily net assets through February 28, 2023. Thereafter, the reimbursement may be changed or terminated at any time. Pursuant to this agreement, EVM and EVAIL were allocated $44,004 in total of the Fund’s operating expenses for the six months ended April 30, 2022.

Trustees and officers of the Fund who are members of EVM’s or BMR’s organizations receive remuneration for their services to the Fund out of the investment adviser fee. Certain officers and Trustees of the Fund and the Portfolio are officers of the above organizations.

4 Investment Transactions

For the six months ended April 30, 2022, increases and decreases in the Fund’s investment in the Portfolio aggregated $34,502 and $120,553, respectively. In addition, a Portfolio transaction fee is imposed by the Portfolio on the combined daily inflows or outflows of the Fund and the Portfolio’s other investors as more fully described at Note 1L of the Portfolio’s financial statements included herein. Such fee is allocated to the Fund based on its pro-rata interest in the Portfolio. The amount of the Portfolio transaction fee imposed on the Fund, if any, and the allocation of such fee are presented as Other capital on the Statements of Changes in Net Assets.

5 Capital Share Transactions

The Trust may issue an unlimited number of shares of capital stock (no par value per share) in one or more series (such as the Fund). The Fund issues and redeems shares only in blocks of 25,000 shares or multiples thereof (“Creation Units”). The Fund issues and redeems Creation Units in return for the securities, other instruments and/or cash (the “Basket”) that the Fund specifies each business day. Creation Units may be purchased or redeemed only by or through Authorized Participants, which are broker-dealers or institutional investors that have entered into agreements with the Fund’s distributor for this purpose. The Fund imposes a transaction fee on Creation Units issued and redeemed to offset the estimated cost to the Fund of processing the transaction, which is paid by the Authorized Participants directly to a third-party administrator. In addition, Authorized Participants pay the Fund a variable charge for converting the Basket to or from the desired portfolio composition. Such variable charges are reflected as Transaction fees on the Statements of Changes in Net Assets.

At April 30, 2022, EVM owned approximately 81% of the outstanding shares of the Fund.

 

  11  


Table of Contents

Global Income Builder Portfolio

April 30, 2022

 

Portfolio of Investments (Unaudited)

 

 

Common Stocks — 59.4%

 

Security   Shares     Value  
Aerospace & Defense — 0.4%  

Safran S.A.

            9,735     $ 1,045,524  
                    $ 1,045,524  
Air Freight & Logistics — 0.2%  

GXO Logistics, Inc. (1)

            8,861     $ 524,483  
                    $ 524,483  
Automobiles — 1.5%  

Bayerische Motoren Werke AG

      10,892     $ 889,503  

Mercedes-Benz Group AG

      28,985       2,023,187  

Stellantis NV

            61,872       830,672  
                    $ 3,743,362  
Banks — 3.3%  

Banco Santander S.A.

      168,388     $ 492,088  

Bank of New York Mellon Corp. (The)

      12,231       514,436  

Citigroup, Inc.

      19,891       958,945  

Credit Agricole S.A.

      35,704       385,534  

DNB Bank ASA

      74,308       1,439,889  

HDFC Bank, Ltd.

      60,961       1,090,846  

ING Groep NV

      58,193       551,333  

M&T Bank Corp.

      4,236       705,887  

Svenska Handelsbanken AB, Class A

      127,502       1,286,026  

Swedbank AB, Class A

            72,645       1,149,189  
                    $ 8,574,173  
Beverages — 1.9%  

Coca-Cola Co. (The)

      43,169     $ 2,789,149  

Diageo PLC

            42,058       2,098,226  
                    $ 4,887,375  
Biotechnology — 0.3%  

CSL, Ltd.

            4,413     $ 842,222  
                    $ 842,222  
Building Products — 0.7%  

Assa Abloy AB, Class B

      41,989     $ 1,061,151  

Kingspan Group PLC

            7,071       658,219  
                    $ 1,719,370  

 

Security          Shares     Value  
Capital Markets — 0.2%  

State Street Corp.

            6,685     $ 447,694  
                    $ 447,694  
Chemicals — 1.7%  

BASF SE

      35,218     $ 1,854,685  

Covestro AG (2)

      34,676       1,492,993  

Sika AG

            3,725       1,137,831  
                    $ 4,485,509  
Construction & Engineering — 0.9%  

Bouygues S.A.

      44,583     $ 1,532,908  

Skanska AB, Class B

            41,105       785,196  
                    $ 2,318,104  
Construction Materials — 0.4%  

Holcim AG

            22,052     $ 1,078,244  
                    $ 1,078,244  
Consumer Finance — 0.0% (3)  

Capital One Financial Corp.

            4     $ 498  
                    $ 498  
Diversified Financial Services — 1.1%  

Berkshire Hathaway, Inc., Class B (1)

            8,653     $ 2,793,448  
                    $ 2,793,448  
Diversified Telecommunication Services — 1.2%  

Elisa Oyj

      12,129     $ 711,019  

Swisscom AG (1)

      1,462       864,482  

Telefonica Deutschland Holding AG (2)

      337,918       1,016,298  

Telenor ASA

            43,737       616,843  
                    $ 3,208,642  
Electric Utilities — 0.8%  

Iberdrola S.A.

      99,714     $ 1,145,794  

NextEra Energy, Inc.

            13,920       988,598  
                    $ 2,134,392  
Electrical Equipment — 1.2%  

AMETEK, Inc.

      12,139     $ 1,532,670  

Schneider Electric SE

            11,379       1,632,535  
                    $ 3,165,205  
Electronic Equipment, Instruments & Components — 1.5%  

CDW Corp.

      8,380     $ 1,367,449  
 

 

  12   See Notes to Financial Statements.


Table of Contents

Global Income Builder Portfolio

April 30, 2022

 

Portfolio of Investments (Unaudited) — continued

 

 

Security        Shares     Value  
Electronic Equipment, Instruments & Components (continued)  

Halma PLC

      37,153     $ 1,140,431  

Keyence Corp.

      1,457       585,720  

TE Connectivity, Ltd.

      6,822       851,249  

Zebra Technologies Corp., Class A (1)

        8       2,957  
                $ 3,947,806  
Entertainment — 0.7%  

Walt Disney Co. (The) (1)

        17,220     $ 1,922,269  
                $ 1,922,269  
Equity Real Estate Investment Trusts (REITs) — 0.6%  

American Tower Corp.

      2,955     $ 712,214  

Equity Residential

      4,393       358,030  

Healthpeak Properties, Inc.

        14,331       470,200  
                $ 1,540,444  
Food Products — 2.0%  

Danone S.A.

      12,694     $ 767,622  

Mondelez International, Inc., Class A

      30,952       1,995,785  

Nestle S.A.

        18,730       2,417,932  
                $ 5,181,339  
Health Care Equipment & Supplies — 2.0%  

Alcon, Inc.

      9,732     $ 694,873  

Boston Scientific Corp. (1)

      49,310       2,076,444  

Intuitive Surgical, Inc. (1)

      5,640       1,349,652  

Straumann Holding AG

        7,920       933,701  
                $ 5,054,670  
Health Care Providers & Services — 0.8%  

Anthem, Inc.

        4,192     $ 2,104,091  
                $ 2,104,091  
Hotels, Restaurants & Leisure — 0.7%  

Compass Group PLC

      68,426     $ 1,443,915  

InterContinental Hotels Group PLC

        7,205       459,965  
                $ 1,903,880  
Insurance — 4.5%  

AIA Group, Ltd.

      55,923     $ 549,374  

Allianz SE

      7,180       1,620,053  

Allstate Corp. (The)

      3,512       444,408  

Aviva PLC

      44,970       241,270  

AXA S.A.

      40,255       1,064,947  

Gjensidige Forsikring ASA

      19,175       409,950  
Security        Shares     Value  
Insurance (continued)  

Muenchener Rueckversicherungs-Gesellschaft AG

      5,603     $ 1,334,302  

Sampo Oyj, Class A

      19,013       923,222  

SCOR SE

      36,286       1,025,944  

Storebrand ASA

      71,409       620,272  

Swiss Life Holding AG

      1,597       933,790  

Swiss Re AG

      21,406       1,755,438  

Zurich Insurance Group AG (1)

        1,781       810,835  
                $ 11,733,805  
Interactive Media & Services — 2.9%  

Alphabet, Inc., Class C (1)(4)

        3,250     $ 7,472,822  
                $ 7,472,822  
Internet & Direct Marketing Retail — 1.3%  

Amazon.com, Inc. (1)

        1,365     $ 3,392,885  
                $ 3,392,885  
IT Services — 1.7%  

Amadeus IT Group S.A. (1)

      15,592     $ 977,040  

Fidelity National Information Services, Inc.

      12,602       1,249,488  

Global Payments, Inc.

      2,707       370,805  

Visa, Inc., Class A

        7,892       1,682,022  
                $ 4,279,355  
Leisure Products — 0.2%  

Yamaha Corp.

        11,084     $ 423,486  
                $ 423,486  
Life Sciences Tools & Services — 0.5%  

Danaher Corp.

      2,894     $ 726,770  

Lonza Group AG (1)

        1,051       619,705  
                $ 1,346,475  
Machinery — 1.8%  

Graco, Inc.

      7,630     $ 473,212  

Ingersoll Rand, Inc.

      24,552       1,079,306  

Kone Oyj, Class B

      7,379       354,765  

Sandvik AB

      5,607       106,131  

SKF AB, Class B

      30,506       498,245  

SMC Corp.

      1,248       604,307  

Valmet Oyj

      11,807       316,201  

Volvo AB, Class B

        73,276       1,169,003  
                $ 4,601,170  
 

 

  13   See Notes to Financial Statements.


Table of Contents

Global Income Builder Portfolio

April 30, 2022

 

Portfolio of Investments (Unaudited) — continued

 

 

Security        Shares     Value  
Metals & Mining — 0.6%  

Rio Tinto, Ltd.

        19,125     $ 1,512,862  
                $ 1,512,862  
Multi-Utilities — 0.6%  

CMS Energy Corp.

      8,069     $ 554,260  

E.ON SE

        87,941       915,198  
                $ 1,469,458  
Oil, Gas & Consumable Fuels — 2.5%  

Chevron Corp.

      13,558     $ 2,124,132  

EOG Resources, Inc.

      30,347       3,543,315  

Phillips 66

      2,171       188,356  

Pioneer Natural Resources Co.

        2,523       586,522  
                $ 6,442,325  
Paper & Forest Products — 0.4%  

Stora Enso Oyj

      17,758     $ 349,468  

UPM-Kymmene Oyj

        20,630       713,639  
                $ 1,063,107  
Pharmaceuticals — 5.4%  

AstraZeneca PLC

      14,455     $ 1,928,894  

Eli Lilly & Co.

      10,732       3,135,139  

Novo Nordisk A/S, Class B

      24,134       2,756,736  

Roche Holding AG PC (1)

      5,541       2,054,679  

Sanofi

      18,821       1,989,283  

Zoetis, Inc.

        11,272       1,997,962  
                $ 13,862,693  
Professional Services — 1.4%  

Recruit Holdings Co., Ltd.

      15,984     $ 579,925  

RELX PLC

      56,905       1,695,228  

SGS S.A. (1)

      108       277,508  

Verisk Analytics, Inc.

        4,623       943,323  
                $ 3,495,984  
Semiconductors & Semiconductor Equipment — 2.8%  

ASML Holding NV

      5,128     $ 2,910,337  

Infineon Technologies AG

      37,394       1,061,362  

Micron Technology, Inc.

      24,254       1,653,880  

Taiwan Semiconductor Manufacturing Co., Ltd. ADR

        16,006       1,487,438  
                $ 7,113,017  
Software — 3.9%  

Adobe, Inc. (1)

      1,912     $ 757,056  
Security          Shares     Value  
Software (continued)  

Dassault Systemes SE

      25,680     $ 1,135,681  

Intuit, Inc.

      3,022       1,265,463  

Microsoft Corp.

      24,412       6,774,818  

Riverbed Technology, Inc. (1)(5)

            3,977       9,446  
                    $ 9,942,464  
Specialty Retail — 1.2%  

Lowe’s Cos., Inc.

      9,071     $ 1,793,609  

TJX Cos., Inc. (The)

            22,450       1,375,736  
                    $ 3,169,345  
Technology Hardware, Storage & Peripherals — 1.7%  

Apple, Inc.

            28,022     $ 4,417,668  
                    $ 4,417,668  
Textiles, Apparel & Luxury Goods — 1.0%  

adidas AG

 

    5,396     $ 1,088,153  

LVMH Moet Hennessy Louis Vuitton SE

            2,261       1,463,172  
                    $ 2,551,325  
Trading Companies & Distributors — 0.2%  

Ashtead Group PLC

            12,256     $ 633,724  
                    $ 633,724  
Wireless Telecommunication Services — 0.7%  

Tele2 AB, Class B

            143,359     $ 1,900,121  
                    $ 1,900,121  

Total Common Stocks
(identified cost $112,795,106)

                  $ 153,446,835  
     
Convertible Bonds — 0.1%

 

Security  

Principal

Amount

(000’s omitted)

    Value  
Leisure Products — 0.1%  

Peloton Interactive, Inc., 0.00%, 2/15/26

          $ 310     $ 253,814  
                    $ 253,814  
 

 

  14   See Notes to Financial Statements.


Table of Contents

Global Income Builder Portfolio

April 30, 2022

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
Software — 0.0% (3)  

1Life Healthcare, Inc., 3.00%, 6/15/25

          $ 148     $ 124,986  
                    $ 124,986  

Total Convertible Bonds
(identified cost $397,559)

                  $ 378,800  
     
Convertible Preferred Stocks — 0.1%      
Security          Shares     Value  
Health Care Equipment & Supplies — 0.1%  

Becton Dickinson and Co., Series B, 6.00%

            3,268     $ 167,027  
                    $ 167,027  
Software — 0.0% (3)                     

Riverbed Technology, Inc., Series A, 6.50%, (1.50% cash, 5.00% PIK) (1)(5)

            2,480     $ 23,558  
                    $ 23,558  

Total Convertible Preferred Stocks
(identified cost $244,405)

                  $ 190,585  
     
Corporate Bonds — 35.2%      
Security          Principal
Amount
(000’s omitted)*
    Value  
Aerospace & Defense — 0.7%                     

Moog, Inc., 4.25%, 12/15/27 (2)

      170     $ 158,507  

Rolls-Royce PLC, 5.75%, 10/15/27 (2)

      492       475,107  

TransDigm UK Holdings PLC, 6.875%, 5/15/26

      200       199,267  

TransDigm, Inc.:

     

4.625%, 1/15/29

      185       161,198  

5.50%, 11/15/27

      106       97,337  

6.25%, 3/15/26 (2)

      419       417,372  

7.50%, 3/15/27

            327       329,897  
                    $ 1,838,685  
Airlines — 0.4%                     

Air Canada, 3.875%, 8/15/26 (2)

      101     $ 93,503  

Air France-KLM, 1.875%, 1/16/25 (6)

    EUR       400       373,601  

American Airlines, Inc./AAdvantage Loyalty IP, Ltd.:

     

5.50%, 4/20/26 (2)

      314       311,618  

5.75%, 4/20/29 (2)

      144       138,989  
Security          Principal
Amount
(000’s omitted)*
    Value  
Airlines (continued)                     

United Airlines, Inc., 4.625%, 4/15/29 (2)

            193     $ 177,357  
                    $ 1,095,068  
Auto Components — 0.6%                     

Clarios Global, L.P./Clarios US Finance Co.:

     

4.375%, 5/15/26 (6)

    EUR       581     $ 588,608  

8.50%, 5/15/27 (2)

      273       273,175  

IHO Verwaltungs GmbH, 6.375%, (6.375% cash or 7.125% PIK), 5/15/29 (2)(7)

      200       190,609  

Real Hero Merger Sub 2, Inc., 6.25%, 2/1/29 (2)

      54       43,862  

TI Automotive Finance PLC, 3.75%, 4/15/29 (6)

    EUR       200       179,026  

Wheel Pros, Inc., 6.50%, 5/15/29 (2)

            213       162,159  
                    $ 1,437,439  
Automobiles — 0.7%                     

Allison Transmission, Inc., 3.75%, 1/30/31 (2)

      42     $ 36,399  

Ford Motor Co.:

     

3.25%, 2/12/32

      364       296,418  

4.75%, 1/15/43

      197       158,966  

9.625%, 4/22/30

      26       31,819  

Ford Motor Credit Co., LLC:

     

3.087%, 1/9/23

      231       231,488  

3.37%, 11/17/23

      200       196,750  

4.125%, 8/17/27

      555       515,151  

5.125%, 6/16/25

      200       199,730  

Jaguar Land Rover Automotive PLC, 6.875%, 11/15/26 (6)

    EUR       100       103,545  
                    $ 1,770,266  
Automotives — 0.2%                     

Goodyear Tire & Rubber Co. (The):

     

5.00%, 7/15/29

      336     $ 299,999  

5.25%, 7/15/31

            270       233,256  
                    $ 533,255  
Banks — 1.7%                     

Banco Mercantil del Norte S.A./Grand Cayman, 7.625% to 1/10/28 (2)(8)(9)

      200     $ 198,367  

Bank of America Corp., Series RR, 4.375% to 1/27/27 (8)(9)

      110       97,625  

Citigroup, Inc., Series M, 6.30% to 5/15/24 (8)(9)

      200       198,500  

Comerica, Inc., 5.625% to 7/1/25 (8)(9)

      100       102,340  

Credit Suisse Group AG, 7.50% to 7/17/23 (2)(8)(9)

      208       206,503  

Deutsche Bank AG, 7.125% to 4/30/26 (6)(8)(9)

    GBP       100       122,886  

Farm Credit Bank of Texas, Series 3, 6.20% to 6/15/28 (2)(8)(9)

      220       233,200  
 

 

  15   See Notes to Financial Statements.


Table of Contents

Global Income Builder Portfolio

April 30, 2022

 

Portfolio of Investments (Unaudited) — continued

 

 

Security          Principal
Amount
(000’s omitted)*
    Value  
Banks (continued)                     

HSBC Holdings PLC, 4.60% to 12/17/30 (8)(9)

      200     $ 170,000  

Huntington Bancshares, Inc., Series F, 5.625% to 7/15/30 (8)(9)

      125       125,246  

JPMorgan Chase & Co.:

     

Series KK, 3.65% to 6/1/26 (8)(9)

      251       225,900  

Series S, 6.75% to 2/1/24 (8)(9)

      215       218,915  

Series X, 6.10% to 10/1/24 (8)(9)

      165       165,450  

Lloyds Banking Group PLC, 7.50% to 9/27/25 (8)(9)

      200       206,020  

Natwest Group PLC, 4.60% to 6/28/31 (8)(9)

      200       168,045  

Societe Generale S.A., 5.375% to 11/18/30 (2)(8)(9)

      200       176,100  

Standard Chartered PLC, 4.75% to 1/14/31 (2)(8)(9)

      229       196,511  

SVB Financial Group, 4.10% to 2/15/31 (8)(9)

      281       229,015  

SVB Financial Group., Series C, 4.00% to 5/15/26 (8)(9)

      58       50,515  

Truist Financial Corp., Series Q, 5.10% to 3/1/30 (8)(9)

      77       77,096  

UniCredit SpA, 7.296% to 4/2/29, 4/2/34 (2)(9)

      200       202,264  

Vivion Investments S.a.r.l., 3.00%, 8/8/24 (6)

    EUR       800       776,546  

Wells Fargo & Co., Series BB, 3.90% to 3/15/26 (8)(9)

      55       50,219  

Zions Bancorp NA, 5.80% to 6/15/23 (8)(9)

            268       264,050  
                    $ 4,461,313  
Biotechnology — 0.4%                     

Grifols Escrow Issuer S.A.:

     

3.875%, 10/15/28 (6)

    EUR       925     $ 878,089  

4.75%, 10/15/28 (2)

            231       211,074  
                    $ 1,089,163  
Building Products — 1.3%                     

Builders FirstSource, Inc.:

     

4.25%, 2/1/32 (2)

      204     $ 174,472  

5.00%, 3/1/30 (2)

      90       83,372  

Empire Communities Corp., 7.00%, 12/15/25 (2)

      255       241,934  

HT Troplast GmbH, 9.25%, 7/15/25 (6)

    EUR       650       679,034  

Masonite International Corp., 5.375%, 2/1/28 (2)

      105       100,729  

Oscar AcquisitionCo, LLC/Oscar Finance, Inc., 9.50%, 4/15/30 (2)

      85       77,660  

Standard Industries, Inc.:

     

2.25%, 11/21/26 (6)

    EUR       400       374,151  

4.375%, 7/15/30 (2)

      275       229,625  

5.00%, 2/15/27 (2)

      78       73,997  

Taylor Morrison Communities, Inc., 5.75%, 1/15/28 (2)

      196       191,819  

Victoria PLC, 3.625%, 8/24/26 (6)

    EUR       806       791,811  

WASH Multifamily Acquisition, Inc., 5.75%, 4/15/26 (2)

            346       336,926  
                    $ 3,355,530  
Security          Principal
Amount
(000’s omitted)*
    Value  
Capital Markets — 0.2%                     

AerCap Holdings NV, 5.875% to 10/10/24, 10/10/79 (9)

      150     $ 140,844  

Charles Schwab Corp. (The), Series I, 4.00% to 6/1/26 (8)(9)

      259       235,172  

UBS Group AG, 4.375% to 2/10/31 (2)(8)(9)

            200       167,440