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Closed End Fund Foreign
Eaton Vance Tax Managed Global Buy Write Opportunities Fund (ETW) is a closed-end management investment company that aims to provide current income and long-term capital appreciation, with an emphasis on tax efficiency. The fund primarily invests in a globally diversified portfolio of common stocks and writes call options on those stocks in an effort to generate additional income.
The fund's investment strategy, called the "buy-write" or "covered call" strategy, involves buying a stock and then selling a call option on that same stock with a specific strike price and expiration date. By doing this, the fund generates income from the option premium while also maintaining the potential for capital appreciation if the stock price remains below the strike price of the option. If the stock price rises above the strike price, the fund may forfeit the potential for further capital appreciation in exchange for the option premium received.
In terms of financial performance, ETW has delivered a total return of 10.71% as of December 31, 2021. The fund's net asset value (NAV) has grown from $15.21 per share at its inception in 2003 to $20.43 per share as of December 31, 2021, representing a growth rate of 3.44% annually. The fund's annualized total return for the past five years was 9.46%, which outperformed the MSCI World Index's annualized return of 8.59% over the same period.
It's worth noting that the fund's performance is subject to market risk and the performance of the underlying stocks and options in its portfolio. Additionally, the fund's use of a covered call strategy can limit the fund's potential for capital appreciation in certain market conditions.
In terms of its financial statements, ETW reported net investment income of $11.9 million for the year ended December 31, 2021, up from $11.3 million in 2020. The fund's net assets totaled $1.12 billion as of December 31, 2021, with a net asset value of $20.43 per share.
Overall, Eaton Vance Tax Managed Global Buy Write Opportunities Fund is a unique investment vehicle that seeks to generate current income and long-term capital appreciation by investing in a globally diversified portfolio of common stocks and writing covered calls on those stocks. The fund's financial performance has been solid, with a strong track record of growth and income generation, despite being subject to market risk and potential limitations from its investment strategy.