Eaton Vance Enhanced Equity Income Fund

N-CSR 1 b83376a1nvcsr.htm EATON VANCE ENHANCED EQUITY INCOME FUND Eaton Vance Enhanced Equity Income Fund PAGEBREAK

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number: 811-21614

Eaton Vance Enhanced Equity Income Fund

(Exact Name of Registrant as Specified in Charter)

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

Maureen A. Gemma Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

(617) 482-8260

(Registrants Telephone Number)

September 30

Date of Fiscal Year End

September 30, 2010

Date of Reporting Period

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Item 1. Reports to Stockholders

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Annual Report September 30, 2010 EATON VANCE ENHANCED EQUITY INCOME FUND

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IMPORTANT NOTICES

Managed Distribution Plan. On March 10, 2009, the Fund received authorization from the Securities and Exchange Commission to distribute long-term capital gains to shareholders more frequently than once per year. In this connection, the Board of Trustees formally approved the implementation of a Managed Distribution Plan (MDP) to make monthly cash distributions to common shareholders, stated in terms of a fixed amount per common share.

The Fund intends to pay monthly cash distributions equal to $0.1164 per share. You should not draw any conclusions about the Funds investment performance from the amount of these distributions or from the terms of the MDP. The MDP will be subject to regular periodic review by the Funds Board of Trustees.

With each distribution, the Fund will issue a notice to shareholders and an accompanying press release which will provide detailed information required by the Funds exemptive order. The Funds Board of Trustees may amend or terminate the MDP at any time without prior notice to Fund shareholders. However, at this time there are no reasonably foreseeable circumstances that might cause the termination of the MDP.

Delivery of Shareholder Documents. The Securities and Exchange Commission (the SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called householding and it helps eliminate duplicate mailings to shareholders.

Eaton Vance, or your financial adviser, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial adviser, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial adviser. Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial adviser.

Portfolio Holdings. Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) will file a schedule of portfolio holdings on Form N-Q with the SEC for the first and third quarters of each fiscal year. The Form N-Q will be available on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SECs website at www.sec.gov. Form N-Q may also be reviewed and copied at the SECs public reference room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the public reference room).

Proxy Voting. From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds and Portfolios Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12 month period ended June 30, without charge, upon request, by calling 1-800-262-1122. This description is also available on the SECs website at www.sec.gov.

Additional Notice to Shareholders. The Fund may purchase shares of its common stock in the open market when they trade at a discount to net asset value or at other times if the Fund determines such purchases are advisable. There can be no assurance that the Fund will take such action or that such purchases would reduce the discount.

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Please refer to the inside back cover of this report for an important notice about the privacy policies adopted by the Eaton Vance organization.

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Eaton Vance Enhanced Equity Income Fund as of September 30, 2010

MANAGEMENTS DISCUSSION OF FUND PERFORMANCE

Economic and Market Conditions

| | Economic and political uncertainty besieged the U.S. equity markets for portions of the year
ending September 30, 2010, Walter A. Row, CFA Eaton Vance Management Co-Portfolio Manager Michael A. Allison, CFA Eaton Vance Management Co-Portfolio Manager particularly during the April-June quarter. Overall, domestic equities
continued to exhibit the lack of confidence and extreme volatility that has defined the equity
space for the best part of the past two years. Periods of risk on and risk off traded places
more than once during the year, moving the major equity indices along a mostly see-saw course. In
September, however, equities took a giant step forward, pushing index returns solidly into the
black for the 12-month period. The major U.S. equity indices ended the 12-month period considerably higher than where they
began. The S&P 500 Index, a common bellwether for the broad U.S. stock market, rose 10.16%. The
blue-chip Dow Jones Industrial Average advanced 14.12%, and the tech-heavy NASDAQ Composite Index
was up 12.75%. |
| --- | --- |
| | While double-digit gains were registered across all market capitalizations, mid-cap stocks
outperformed small-caps, which in turn outpaced large-caps. The S&P Midcap 400 Index gained 17.78%,
the small-cap Russell 2000 Index advanced 13.35% and the large-cap Russell 1000 Index rose 10.75%.
Growth stocks outperformed value stocks across all categories. |

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or market price (as applicable) with all distributions reinvested. The Funds performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Funds shares, or changes in Fund distributions. The Fund has no current intention to utilize leverage, but may do so in the future through borrowings and other permitted methods. 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, the Funds current performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

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.

Management Discussion

| | The Fund is a closed-end fund and trades on the New York Stock Exchange (NYSE) under the
symbol EOI. For the 12-month period ending September 30, 2010, the Funds return at net asset
value (NAV) underperformed that of the
S&P 500 Index, the CBOE S&P 500 BuyWrite Index and the average return of the funds in its Lipper
peer group. At period end, the Fund was trading at a 0.93% premium to NAV. |
| --- | --- |
| | The Funds common stock holdings underperformed the S&P 500 Index for the 12 months, mostly due
to stock selection. This was especially true in financials, the only sector to register a negative
return for the period, where the Funds holdings in the capital markets segment were the biggest
laggards. Security selection in the energy sector, especially within the oil, gas and consumable
fuels industry, also detracted, as did not holding some of the large components of the S&P 500
Index that had performed well during the period, notably in consumer staples, chemicals and
machinery. |
| | Conversely, maintaining a sector overweighting in telecommunication services, along with being
overweighted in the machinery segment of the industrials sector, contributed to performance. Stock
selection in the health care equipment and supplies, commercial services and supplies, and
computers and peripherals industries also helped support the Funds relative performance. |

Total Return Performance 9/30/09 9/30/10 — NYSE Symbol	EOI
At Net Asset Value (NAV)		6.87%
At Market Price		6.02%
S&P 500 Index 1		10.16%
CBOE S&P 500 BuyWrite Index 1		8.21%
Lipper Options Arbitrage/Options Strategies Funds Average 1		11.15%
Premium/(Discount) to NAV (9/30/10)		0.93%
Total Distributions per share		$1.459
Distribution Rate 2	At NAV	10.85%
	At Market Price	10.75%

See page 3 for more performance information.

| 1 | It is not possible to invest directly in an Index or a Lipper Classification. The
Indices total returns do not reflect commissions or expenses that would have been incurred if
an investor individually purchased or sold the securities represented in the Indices. The
Lipper total return is the average total return, at net asset value, of the funds that are in
the same Lipper Classification as the Fund. |
| --- | --- |
| 2 | The Distribution Rate is based on the Funds last regular distribution per share in
the period (annualized) divided by the Funds NAV or market price at the end of the period.
The Funds distributions may be composed of ordinary income, net realized capital gains and
return of capital. |

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Eaton Vance Enhanced Equity Income Fund as of September 30, 2010

MANAGEMENTS DISCUSSION OF FUND PERFORMANCE

| | As of September 30, 2010, the Fund had written call options on approximately 63% of its
equity holdings.
The Fund seeks to generate current earnings from options premiums by selling covered call
options on a substantial portion of its portfolio securities. Option premiums can vary with
investors expectations of the future volatility (implied volatility) of the portfolios
underlying assets. While individual and overall stock market volatility have decreased somewhat
from their peak levels of late 2008, they remained significantly higher than the long-term average
during the 12 months ending September 30, 2010. |
| --- | --- |
| | The Funds option strategy lowered volatility during the period, but it also held back the
Funds relative performance, especially during the markets strong advance in September 2010. |

The views expressed throughout this report are those of the portfolio managers and are current only through the end of the period of the report as stated on the cover. These views are subject to change at any time based upon market or other conditions, and the investment adviser disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a fund are based on many factors, may not be relied on as an indication of trading intent on behalf of any Eaton Vance fund. Portfolio information provided in the report may not be representative of the Funds current or future investments and may change due to active management.

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Eaton Vance Enhanced Equity Income Fund as of September 30, 2010

FUND PERFORMANCE

Performance

NYSE Symbol:
Average Annual Total Returns (at market price, NYSE)
One Year	6.02 %
Five Years	1.84
Life of Fund (10/29/04)	3.33
Average Annual Total Returns (at net asset value)
One Year	6.87 %
Five Years	1.56
Life of Fund (10/29/04)	3.17

Fund Composition

Top 10 Holdings 1

By total investments

Apple, Inc.	3.3
General Electric Co.	2.6
Johnson & Johnson	2.3
International Business Machines Corp.	2.3
JPMorgan Chase & Co.	2.2
Microsoft Corp.	2.0
Cisco Systems, Inc.	2.0
Pfizer, Inc.	1.8
Google, Inc., Class A	1.8
Exxon Mobil Corp.	1.7

1 Top 10 Holdings represented 22.0% of the Funds total investments as of 9/30/10. The Top 10 Holdings do not reflect the Funds written option positions at 9/30/10.

Sector Weightings 2

By total investments

2 Reflects the Funds total investments as of 9/30/10. Sector Weightings do not reflect the Funds written option positions at 9/30/10.

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Eaton Vance Enhanced Equity Income Fund as of September 30, 2010

PORTFOLIO OF INVESTMENTS

| Common
Stocks 102.8% (1) — Security | Shares | Value |
| --- | --- | --- |
| Aerospace
& Defense 1.8% | | |
| General Dynamics Corp. | 87,890 | $ 5,520,371 |
| Lockheed Martin Corp. | 51,489 | 3,670,136 |
| | | $ 9,190,507 |
| Air
Freight & Logistics 0.8% | | |
| FedEx Corp. | 49,044 | $ 4,193,262 |
| | | $ 4,193,262 |
| Beverages 2.8% | | |
| Coca-Cola Co. (The) | 102,852 | $ 6,018,899 |
| PepsiCo, Inc. | 129,030 | 8,572,753 |
| | | $ 14,591,652 |
| Biotechnology 1.4% | | |
| Amgen,
Inc. (2) | 94,121 | $ 5,187,008 |
| Celgene
Corp. (2) | 37,704 | 2,172,128 |
| | | $ 7,359,136 |
| Capital
Markets 2.5% | | |
| Goldman Sachs Group, Inc. | 39,870 | $ 5,764,405 |
| Northern Trust Corp. | 92,239 | 4,449,609 |
| State Street Corp. | 72,658 | 2,736,300 |
| | | $ 12,950,314 |
| Commercial
Banks 3.3% | | |
| KeyCorp | 308,415 | $ 2,454,983 |
| PNC Financial Services Group, Inc. | 56,108 | 2,912,566 |
| U.S. Bancorp | 127,195 | 2,749,956 |
| Wells Fargo & Co. | 352,605 | 8,860,964 |
| | | $ 16,978,469 |
| Commercial
Services & Supplies 1.0% | | |
| Waste Management, Inc. | 148,857 | $ 5,320,149 |
| | | $ 5,320,149 |
| Communications
Equipment 2.9% | | |
| Cisco Systems,
Inc. (2) | 479,090 | $ 10,492,071 |
| QUALCOMM, Inc. | 98,159 | 4,428,934 |
| | | $ 14,921,005 |
| Computers
& Peripherals 7.2% | | |
| Apple,
Inc. (2) | 62,213 | $ 17,652,939 |
| Hewlett-Packard Co. | 173,570 | 7,302,090 |
| International Business Machines Corp. | 90,748 | 12,172,936 |
| | | $ 37,127,965 |
| Consumer
Finance 0.7% | | |
| American Express Co. | 81,560 | $ 3,427,967 |
| | | $ 3,427,967 |
| Diversified
Financial Services 4.4% | | |
| Bank of America Corp. | 623,887 | $ 8,179,158 |
| Citigroup,
Inc. (2) | 604,762 | 2,358,572 |
| JPMorgan Chase & Co. | 314,081 | 11,957,064 |
| | | $ 22,494,794 |
| Diversified
Telecommunication Services 2.2% | | |
| AT&T, Inc. | 280,752 | $ 8,029,507 |
| Verizon Communications, Inc. | 97,933 | 3,191,637 |
| | | $ 11,221,144 |
| Electric
Utilities 1.2% | | |
| American Electric Power Co., Inc. | 162,217 | $ 5,877,122 |
| | | $ 5,877,122 |
| Electrical
Equipment 1.2% | | |
| Emerson Electric Co. | 114,726 | $ 6,041,471 |
| | | $ 6,041,471 |
| Electronic
Equipment, Instruments & Components 1.3% | | |
| Corning, Inc. | 376,802 | $ 6,887,940 |
| | | $ 6,887,940 |
| Energy
Equipment & Services 1.5% | | |
| Halliburton Co. | 70,371 | $ 2,327,169 |
| Schlumberger, Ltd. | 87,318 | 5,379,662 |
| | | $ 7,706,831 |

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Eaton Vance Enhanced Equity Income Fund as of September 30, 2010

PORTFOLIO OF INVESTMENTS CONTD

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Security		Value
Food
& Staples Retailing 2.2%
CVS Caremark Corp.	120,518	$ 3,792,701
Wal-Mart Stores, Inc.	143,921	7,702,652
		$ 11,495,353
Food
Products 1.9%
Kellogg Co.	100,464	$ 5,074,437
Nestle SA ADR	87,745	4,688,215
		$ 9,762,652
Health
Care Equipment & Supplies 2.9%
Covidien PLC	67,855	$ 2,727,092
HeartWare International,
Inc. (2)	55,534	3,818,451
Thoratec
Corp. (2)	68,312	2,526,178
Varian Medical Systems,
Inc. (2)	51,210	3,098,205
Zimmer Holdings,
Inc. (2)	54,875	2,871,609
		$ 15,041,535
Health
Care Providers & Services 1.5%
AmerisourceBergen Corp.	107,244	$ 3,288,101
Cardinal Health, Inc.	73,526	2,429,299
Fresenius Medical Care AG & Co. KGaA ADR	30,548	1,886,034
		$ 7,603,434
Hotels,
Restaurants & Leisure 2.0%
Carnival Corp.	96,329	$ 3,680,731
McDonalds Corp.	84,505	6,296,468
		$ 9,977,199
Household
Products 3.1%
Colgate-Palmolive Co.	96,589	$ 7,423,830
Procter & Gamble Co.	142,234	8,529,773
		$ 15,953,603
Industrial
Conglomerates 2.7%
General Electric Co.	856,159	$ 13,912,584
		$ 13,912,584
Insurance 3.4%
Aflac, Inc.	61,446	$ 3,177,373
Berkshire Hathaway, Inc.,
Class B (2)	21,944	1,814,330
Lincoln National Corp.	108,387	2,592,617
MetLife, Inc.	111,605	4,291,212
Prudential Financial, Inc.	98,694	5,347,241
		$ 17,222,773
Internet
& Catalog Retail 1.4%
Amazon.com,
Inc. (2)	44,610	$ 7,006,447
		$ 7,006,447
Internet
Software & Services 1.8%
Google, Inc.,
Class A (2)	17,812	$ 9,365,371
		$ 9,365,371
IT
Services 1.1%
MasterCard, Inc., Class A	25,965	$ 5,816,160
		$ 5,816,160
Life
Sciences Tools & Services 0.9%
Thermo Fisher Scientific,
Inc. (2)	97,676	$ 4,676,727
		$ 4,676,727
Machinery 3.8%
Danaher Corp.	146,378	$ 5,944,411
Deere & Co.	84,560	5,900,597
Illinois Tool Works, Inc.	102,697	4,828,813
PACCAR, Inc.	61,656	2,968,736
		$ 19,642,557
Media 1.7%
Comcast Corp., Class A	280,958	$ 5,079,721
Walt Disney Co. (The)	108,375	3,588,296
		$ 8,668,017
Metals
& Mining 3.0%
BHP Billiton, Ltd. ADR	43,446	$ 3,315,799
Freeport-McMoRan Copper & Gold, Inc.	20,064	1,713,265
Goldcorp, Inc.	204,213	8,887,350
United States Steel Corp.	35,280	1,546,675
		$ 15,463,089

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Eaton Vance Enhanced Equity Income Fund as of September 30, 2010

PORTFOLIO OF INVESTMENTS CONTD

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Security		Value
Multi-Utilities 1.8%
PG&E Corp.	83,197	$ 3,778,808
Public Service Enterprise Group, Inc.	85,570	2,830,655
Sempra Energy	51,876	2,790,929
		$ 9,400,392
Multiline
Retail 1.0%
Target Corp.	98,969	$ 5,288,903
		$ 5,288,903
Office
Electronics 0.6%
Xerox Corp.	273,218	$ 2,827,806
		$ 2,827,806
Oil,
Gas & Consumable Fuels 10.2%
Apache Corp.	67,534	$ 6,602,124
Chevron Corp.	109,143	8,846,040
ConocoPhillips	84,194	4,835,261
Exxon Mobil Corp.	148,595	9,181,685
Hess Corp.	131,106	7,750,987
Occidental Petroleum Corp.	86,233	6,752,044
Peabody Energy Corp.	88,418	4,333,366
Southwestern Energy
Co. (2)	114,571	3,831,254
		$ 52,132,761
Pharmaceuticals 6.6%
Abbott Laboratories	98,225	$ 5,131,274
Bristol-Myers Squibb Co.	163,695	4,437,771
Johnson & Johnson	201,616	12,492,127
Merck & Co., Inc.	55,170	2,030,808
Pfizer, Inc.	571,344	9,809,977
		$ 33,901,957
Real
Estate Investment Trusts (REITs) 0.2%
AvalonBay Communities, Inc.	5,597	$ 581,696
Boston Properties, Inc.	6,279	521,911
		$ 1,103,607
Road
& Rail 0.9%
CSX Corp.	86,531	$ 4,786,895
		$ 4,786,895
Semiconductors
& Semiconductor Equipment 0.8%
Intel Corp.	222,773	$ 4,283,925
		$ 4,283,925
Software 3.9%
Microsoft Corp.	446,116	$ 10,925,381
Oracle Corp.	331,155	8,891,512
		$ 19,816,893
Specialty
Retail 3.4%
Best Buy Co., Inc.	127,203	$ 5,193,699
Home Depot, Inc.	214,893	6,807,810
TJX Companies, Inc. (The)	125,283	5,591,380
		$ 17,592,889
Textiles,
Apparel & Luxury Goods 1.2%
NIKE, Inc., Class B	77,414	$ 6,203,958
		$ 6,203,958
Tobacco 1.3%
Philip Morris International, Inc.	116,936	$ 6,550,755
		$ 6,550,755
Wireless
Telecommunication Services 1.3%
American Tower Corp.,
Class A (2)	76,423	$ 3,917,443
Vodafone Group PLC	1,111,718	2,743,001
		$ 6,660,444
Total
Common Stocks
(identified
cost $482,183,717)		$ 528,448,414

| Short-Term
Investments 1.1% | | |
| --- | --- | --- |
| | Interest | |
| Description | (000s
omitted) | Value |
| Eaton Vance Cash Reserves Fund, LLC,
0.22% (3)(4) | $ 5,660 | $ 5,660,409 |
| Total
Short-Term Investments | | |
| (identified
cost $5,660,409) | | $ 5,660,409 |
| Total
Investments 103.9% | | |
| (identified
cost $487,844,126) | | $ 534,108,823 |

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Eaton Vance Enhanced Equity Income Fund as of September 30, 2010

PORTFOLIO OF INVESTMENTS CONTD

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| Covered Call
Options Written (3.9)% | Number of | Strike | Expiration | | |
| --- | --- | --- | --- | --- | --- |
| Security | Contracts | Price | Date | Value | |
| Abbott Laboratories | 690 | $ 50.00 | 11/20/10 | $ (178,710 | ) |
| Aflac, Inc. | 400 | 50.00 | 11/20/10 | (142,000 | ) |
| Amazon.com, Inc. | 225 | 120.00 | 10/16/10 | (835,313 | ) |
| American Electric Power Co., Inc. | 970 | 36.00 | 11/20/10 | (97,000 | ) |
| American Express Co. | 410 | 41.00 | 10/16/10 | (64,165 | ) |
| American Express Co. | 245 | 43.00 | 11/20/10 | (38,710 | ) |
| American Tower Corp., Class A | 385 | 45.00 | 10/16/10 | (242,550 | ) |
| American Tower Corp., Class A | 150 | 47.50 | 10/16/10 | (57,750 | ) |
| AmerisourceBergen Corp. | 750 | 30.00 | 11/20/10 | (127,500 | ) |
| Amgen, Inc. | 660 | 55.00 | 10/16/10 | (78,540 | ) |
| Apache Corp. | 340 | 85.00 | 10/16/10 | (436,900 | ) |
| Apple, Inc. | 135 | 250.00 | 10/16/10 | (464,063 | ) |
| Apple, Inc. | 300 | 260.00 | 10/16/10 | (745,500 | ) |
| AT&T, Inc. | 1,405 | 25.00 | 10/16/10 | (505,800 | ) |
| Bank of America Corp. | 4,790 | 14.00 | 11/20/10 | (179,625 | ) |
| Berkshire Hathaway, Inc., Class B | 175 | 85.00 | 12/18/10 | (39,900 | ) |
| Best Buy Co., Inc. | 640 | 41.00 | 1/22/11 | (187,652 | ) |
| BHP Billiton, Ltd. ADR | 305 | 75.00 | 11/20/10 | (126,575 | ) |
| Bristol-Myers Squibb Co. | 1,310 | 27.00 | 12/18/10 | (155,890 | ) |
| Cardinal Health, Inc. | 625 | 30.00 | 12/18/10 | (231,250 | ) |
| Carnival Corp. | 485 | 33.00 | 10/16/10 | (254,625 | ) |
| Carnival Corp. | 285 | 38.00 | 11/20/10 | (54,150 | ) |
| Celgene Corp. | 190 | 52.50 | 10/16/10 | (100,225 | ) |
| Chevron Corp. | 875 | 80.00 | 12/18/10 | (306,250 | ) |
| Cisco Systems, Inc. | 1,920 | 22.00 | 10/16/10 | (74,880 | ) |
| Cisco Systems, Inc. | 1,435 | 23.00 | 10/16/10 | (15,067 | ) |
| Coca-Cola Co. (The) | 720 | 57.50 | 11/20/10 | (144,360 | ) |
| Colgate-Palmolive Co. | 680 | 80.00 | 11/20/10 | (56,100 | ) |
| Comcast Corp., Class A | 1,250 | 18.00 | 10/16/10 | (51,875 | ) |
| Comcast Corp., Class A | 720 | 19.00 | 10/16/10 | (5,760 | ) |
| ConocoPhillips | 675 | 55.00 | 11/20/10 | (227,813 | ) |
| Corning, Inc. | 2,640 | 17.00 | 11/20/10 | (455,400 | ) |
| Covidien PLC | 340 | 40.00 | 10/16/10 | (30,600 | ) |
| Covidien PLC | 205 | 40.00 | 11/20/10 | (34,850 | ) |
| CSX Corp. | 610 | 50.00 | 11/20/10 | (378,200 | ) |
| CVS Caremark Corp. | 845 | 30.00 | 11/20/10 | (183,365 | ) |
| Danaher Corp. | 1,025 | 37.00 | 10/16/10 | (384,375 | ) |
| Deere & Co. | 675 | 70.00 | 12/18/10 | (286,875 | ) |
| Emerson Electric Co. | 920 | 50.00 | 12/18/10 | (377,200 | ) |
| Exxon Mobil Corp. | 535 | 60.00 | 10/16/10 | (113,955 | ) |
| FedEx Corp. | 245 | 75.00 | 10/16/10 | (262,150 | ) |
| Freeport-McMoRan Copper & Gold, Inc. | 140 | 72.50 | 11/20/10 | (194,950 | ) |
| Fresenius Medical Care AG & Co. KGaA ADR | 155 | 55.00 | 10/16/10 | (102,300 | ) |
| General Dynamics Corp. | 615 | 65.00 | 11/20/10 | (76,875 | ) |
| General Electric Co. | 3,417 | 15.00 | 10/16/10 | (457,878 | ) |
| General Electric Co. | 3,430 | 16.00 | 12/18/10 | (339,570 | ) |
| Goldman Sachs Group, Inc. | 200 | 150.00 | 10/16/10 | (21,900 | ) |
| Google, Inc., Class A | 155 | 480.00 | 12/18/10 | (868,775 | ) |
| Halliburton Co. | 355 | 31.00 | 10/16/10 | (85,378 | ) |
| Halliburton Co. | 210 | 32.00 | 11/20/10 | (52,710 | ) |
| Hess Corp. | 920 | 55.00 | 11/20/10 | (494,500 | ) |
| Hewlett-Packard Co. | 1,215 | 41.00 | 11/20/10 | (287,955 | ) |
| Home Depot, Inc. | 1,505 | 30.00 | 11/20/10 | (349,160 | ) |
| Illinois Tool Works, Inc. | 720 | 47.50 | 12/18/10 | (151,200 | ) |
| Intel Corp. | 1,115 | 19.00 | 10/16/10 | (64,670 | ) |
| Intel Corp. | 445 | 22.00 | 10/16/10 | (667 | ) |
| International Business Machines Corp. | 455 | 130.00 | 10/16/10 | (217,263 | ) |
| International Business Machines Corp. | 275 | 135.00 | 11/20/10 | (86,625 | ) |
| Johnson & Johnson | 1,415 | 60.00 | 10/16/10 | (300,688 | ) |
| JPMorgan Chase & Co. | 2,200 | 38.00 | 10/16/10 | (242,000 | ) |
| Kellogg Co. | 705 | 50.00 | 10/16/10 | (63,450 | ) |
| KeyCorp | 2,160 | 8.00 | 10/16/10 | (54,000 | ) |
| Lincoln National Corp. | 545 | 25.00 | 10/16/10 | (26,160 | ) |
| Lincoln National Corp. | 325 | 26.00 | 11/20/10 | (29,737 | ) |
| Lockheed Martin Corp. | 360 | 75.00 | 10/16/10 | (4,500 | ) |
| MasterCard, Inc., Class A | 130 | 210.00 | 10/16/10 | (196,625 | ) |
| McDonalds Corp. | 680 | 75.00 | 12/18/10 | (130,900 | ) |
| Merck & Co., Inc. | 280 | 36.00 | 10/16/10 | (31,780 | ) |
| MetLife, Inc. | 950 | 41.00 | 12/18/10 | (118,750 | ) |
| Microsoft Corp. | 890 | 25.00 | 10/16/10 | (22,250 | ) |
| Microsoft Corp. | 2,235 | 26.00 | 10/16/10 | (17,880 | ) |
| NIKE, Inc., Class B | 480 | 72.50 | 10/16/10 | (372,000 | ) |
| Northern Trust Corp. | 465 | 50.00 | 10/16/10 | (23,250 | ) |
| Occidental Petroleum Corp. | 605 | 80.00 | 11/20/10 | (142,780 | ) |
| Oracle Corp. | 2,650 | 26.00 | 12/18/10 | (496,875 | ) |
| PACCAR, Inc. | 435 | 43.00 | 11/20/10 | (261,000 | ) |
| Peabody Energy Corp. | 755 | 46.00 | 12/18/10 | (385,050 | ) |
| PepsiCo, Inc. | 645 | 62.50 | 10/16/10 | (264,450 | ) |
| Pfizer, Inc. | 4,610 | 17.00 | 12/18/10 | (364,190 | ) |
| Philip Morris International, Inc. | 935 | 55.00 | 12/18/10 | (252,918 | ) |
| PNC Financial Services Group, Inc. | 520 | 55.00 | 11/20/10 | (68,120 | ) |
| Procter & Gamble Co. | 995 | 62.50 | 10/16/10 | (5,970 | ) |
| Prudential Financial, Inc. | 690 | 52.50 | 10/16/10 | (176,985 | ) |
| Public Service Enterprise Group, Inc. | 685 | 35.00 | 12/18/10 | (27,400 | ) |
| QUALCOMM, Inc. | 495 | 39.00 | 10/16/10 | (306,900 | ) |
| QUALCOMM, Inc. | 290 | 43.00 | 11/20/10 | (95,700 | ) |
| Schlumberger, Ltd. | 615 | 60.00 | 11/20/10 | (242,925 | ) |
| Sempra Energy | 365 | 55.00 | 11/20/10 | (37,412 | ) |
| Southwestern Energy Co. | 570 | 35.00 | 10/16/10 | (19,950 | ) |
| Southwestern Energy Co. | 405 | 35.00 | 12/18/10 | (59,737 | ) |
| State Street Corp. | 510 | 37.00 | 11/20/10 | (125,460 | ) |
| Target Corp. | 495 | 50.00 | 10/16/10 | (184,388 | ) |
| Thermo Fisher Scientific, Inc. | 685 | 45.00 | 10/16/10 | (234,613 | ) |
| TJX Companies, Inc. (The) | 630 | 40.00 | 10/16/10 | (299,250 | ) |

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Eaton Vance Enhanced Equity Income Fund as of September 30, 2010

PORTFOLIO OF INVESTMENTS CONTD

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Security	Number of — Contracts	Strike — Price	Expiration — Date	Value
TJX Companies, Inc. (The)	375	$ 44.00	11/20/10	$ (75,937	)
U.S. Bancorp	1,035	22.00	10/16/10	(34,672	)
Varian Medical Systems, Inc.	360	55.00	11/20/10	(228,600	)
Verizon Communications, Inc.	490	27.00	10/16/10	(274,400	)
Wal-Mart Stores, Inc.	1,150	52.50	12/18/10	(253,000	)
Walt Disney Co. (The)	545	34.00	10/16/10	(15,532	)
Walt Disney Co. (The)	325	35.00	11/20/10	(18,037	)
Waste Management, Inc.	745	32.50	10/16/10	(245,850	)
Waste Management, Inc.	445	35.00	11/20/10	(66,750	)
Wells Fargo & Co.	705	24.00	10/16/10	(100,815	)
Wells Fargo & Co.	1,060	26.00	10/16/10	(33,390	)
Wells Fargo & Co.	705	28.00	10/16/10	(3,172	)
Xerox Corp.	1,370	11.00	1/22/11	(76,720	)
Zimmer Holdings, Inc.	470	50.00	12/18/10	(192,700	)
Total
Covered Call Options Written
(premiums
received $13,017,697)				$ (19,891,462	)
Other
Assets, Less Liabilities
(0.0)% (5)				$ (264,264	)
Net
Assets 100.0%				$ 513,953,097

The percentage shown for each investment category in the Portfolio of Investments is based on net assets.

ADR - American Depositary Receipt

| (1) | A portion of each applicable common stock for which a written
call option is outstanding at September 30, 2010 has been
pledged as collateral for such written option. |
| --- | --- |
| (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 September 30, 2010. |
| (4) | Net income allocated from the investment in Eaton Vance Cash
Reserves Fund, LLC and Cash Management Portfolio, an affiliated
investment company, for the year ended September 30, 2010
was $12,903 and $0, respectively. |
| (5) | Amount is less than 0.05%. |

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Eaton Vance Enhanced Equity Income Fund as of September 30, 2010

FINANCIAL STATEMENTS

Statement of Assets and Liabilities

| As of
September 30, 2010 | | |
| --- | --- | --- |
| Assets | | |
| Unaffiliated investments, at value
(identified cost, $482,183,717) | $ 528,448,414 | |
| Affiliated investment, at value
(identified cost, $5,660,409) | 5,660,409 | |
| Cash | 39,101 | |
| Dividends receivable | 589,825 | |
| Interest receivable from affiliated investment | 1,425 | |
| Receivable for investments sold | 187,652 | |
| Receivable from the transfer agent | 201,184 | |
| Tax reclaims receivable | 130,122 | |
| Total assets | $ 535,258,132 | |
| Liabilities | | |
| Written options outstanding, at value (premiums received,
$13,017,697) | $ 19,891,462 | |
| Payable for investments purchased | 721,601 | |
| Payable to affiliates: | | |
| Investment adviser fee | 418,702 | |
| Accrued expenses | 273,270 | |
| Total liabilities | $ 21,305,035 | |
| Net Assets | $ 513,953,097 | |
| Sources
of Net Assets | | |
| Common shares, $0.01 par value, unlimited number of shares
authorized, 39,939,517 shares issued and outstanding | $ 399,395 | |
| Additional paid-in capital | 619,552,522 | |
| Accumulated net realized loss | (145,409,653 | ) |
| Accumulated undistributed net investment income | 16,543 | |
| Net unrealized appreciation | 39,394,290 | |
| Net Assets | $ 513,953,097 | |
| Net
Asset Value | | |
| ($513,953,097 ¸ 39,939,517 common shares issued and outstanding) | $ 12.87 | |

Statement of Operations

| For the Year
Ended | | |
| --- | --- | --- |
| September 30,
2010 | | |
| Investment
Income | | |
| Dividends (net of foreign taxes, $53,428) | $ 9,595,067 | |
| Interest income allocated from affiliated investments | 17,879 | |
| Expenses allocated from affiliated investments | (4,976 | ) |
| Total investment income | $ 9,607,970 | |
| Expenses | | |
| Investment adviser fee | $ 5,322,407 | |
| Trustees fees and expenses | 18,358 | |
| Custodian fee | 245,972 | |
| Transfer and dividend disbursing agent fees | 14,584 | |
| Legal and accounting services | 66,813 | |
| Printing and postage | 213,313 | |
| Miscellaneous | 62,296 | |
| Total expenses | $ 5,943,743 | |
| Deduct | | |
| Reduction of custodian fee | $ 26 | |
| Total expense reductions | $ 26 | |
| Net expenses | $ 5,943,717 | |
| Net investment income | $ 3,664,253 | |
| Realized
and Unrealized Gain (Loss) | | |
| Net realized gain (loss) | | |
| Investment transactions | $ (9,128,754 | ) |
| Investment transactions allocated from affiliated investments | (69,744 | ) |
| Written options | 3,056,199 | |
| Foreign currency transactions | 3,716 | |
| Net realized loss | $ (6,138,583 | ) |
| Change in unrealized appreciation (depreciation) | | |
| Investments | $ 38,780,108 | |
| Written options | (1,351,855 | ) |
| Foreign currency | 2,463 | |
| Net change in unrealized appreciation (depreciation) | $ 37,430,716 | |
| Net realized and unrealized gain | $ 31,292,133 | |
| Net increase in net assets from operations | $ 34,956,386 | |

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Eaton Vance Enhanced Equity Income Fund as of September 30, 2010

FINANCIAL STATEMENTS CONTD

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Statements of Changes in Net Assets

| Increase
(Decrease) — in Net Assets | Year Ended — September 30,
2010 | | Year Ended — September 30,
2009 | |
| --- | --- | --- | --- | --- |
| From operations | | | | |
| Net investment income | $ 3,664,253 | | $ 5,837,564 | |
| Net realized loss from investment transactions, written options
and foreign currency transactions | (6,138,583 | ) | (137,501,752 | ) |
| Net change in unrealized appreciation (depreciation) from
investments, written options and foreign currency | 37,430,716 | | 76,205,784 | |
| Net increase (decrease) in net assets from operations | $ 34,956,386 | | $ (55,458,404 | ) |
| Distributions to shareholders | | | | |
| From net investment income | $ (3,679,239 | ) | $ (6,995,420 | ) |
| Tax return of capital | (54,445,644 | ) | (58,284,654 | ) |
| Total distributions | $ (58,124,883 | ) | $ (65,280,074 | ) |
| Capital share transactions | | | | |
| Reinvestment of distributions | $ 2,173,771 | | $ 1,158,644 | |
| Net increase in net assets from capital share transactions | $ 2,173,771 | | $ 1,158,644 | |
| Net decrease in net assets | $ (20,994,726 | ) | $ (119,579,834 | ) |
| Net
Assets | | | | |
| At beginning of year | $ 534,947,823 | | $ 654,527,657 | |
| At end of year | $ 513,953,097 | | $ 534,947,823 | |
| Accumulated
undistributed net investment income included in net assets | | | | |
| At end of year | $ 16,543 | | $ 102,881 | |

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Eaton Vance Enhanced Equity Income Fund as of September 30, 2010

FINANCIAL STATEMENTS CONTD

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Financial Highlights

| | Year Ended
September 30, — 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Net asset value Beginning of year | $ 13.450 | | $ 16.490 | | $ 21.110 | | $ 19.900 | | $ 19.960 | |
| Income
(Loss) From Operations | | | | | | | | | | |
| Net investment
income (1) | $ 0.092 | | $ 0.147 | | $ 0.152 | | $ 0.080 | | $ 0.093 | |
| Net realized and unrealized gain (loss) | 0.787 | | (1.543 | ) | (3.013 | ) | 2.774 | | 1.491 | |
| Total income (loss) from operations | $ 0.879 | | $ (1.396 | ) | $ (2.861 | ) | $ 2.854 | | $ 1.584 | |
| Less
Distributions | | | | | | | | | | |
| From net investment income | $ (0.092 | ) | $ (0.176 | ) | $ (0.154 | ) | $ (0.038 | ) | $ (0.093 | ) |
| From net realized gain | | | | | (0.891 | ) | (1.606 | ) | (1.551 | ) |
| Tax return of capital | (1.367 | ) | (1.468 | ) | (0.714 | ) | | | | |
| Total distributions | $ (1.459 | ) | $ (1.644 | ) | $ (1.759 | ) | $ (1.644 | ) | $ (1.644 | ) |
| Net asset value End of year | $ 12.870 | | $ 13.450 | | $ 16.490 | | $ 21.110 | | $ 19.900 | |
| Market value End of year | $ 12.990 | | $ 13.680 | | $ 13.310 | | $ 19.440 | | $ 20.070 | |
| Total Investment Return on Net Asset
Value (2) | 6.87 | % | (6.20 | )% | (13.54 | )% | 15.04 | % (3) | 8.46 | % (4) |
| Total Investment Return on Market
Value (2) | 6.02 | % | 18.23 | % | (24.23 | )% | 5.04 | % | 9.77 | % |
| Ratios/Supplemental
Data | | | | | | | | | | |
| Net assets, end of year (000s omitted) | $ 513,953 | | $ 534,948 | | $ 654,528 | | $ 837,584 | | $ 786,478 | |
| Ratios (as a percentage of average daily net assets): | | | | | | | | | | |
| Expenses (5) | 1.12 | % | 1.17 | % | 1.10 | % | 1.08 | % | 1.09 | % |
| Net investment income | 0.69 | % | 1.17 | % | 0.79 | % | 0.39 | % | 0.47 | % |
| Portfolio Turnover | 27 | % | 65 | % | 117 | % | 195 | % | 84 | % |

(1)	Computed using average shares outstanding.
(2)	Returns are historical and are calculated by determining the
percentage change in net asset value or market value with all
distributions reinvested.
(3)	During the year ended September 30, 2007, the Fund realized
a gain on the closing out of a written options position that did
not meet investment guidelines. The gain was less than $0.01 per
share and had no effect on total return for the year ended
September 30, 2007.
(4)	During the year ended September 30, 2006, the investment
adviser reimbursed the Fund for a net realized loss incurred
from the closing out of a written options position that did not
meet the Funds investment guidelines. The reimbursement
was less than $0.01 per share and had no net effect on total
return for the year ended September 30, 2006.
(5)	Excludes the effect of custody fee credits, if any, of less than
0.005%.

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Eaton Vance Enhanced Equity Income Fund as of September 30, 2010

NOTES TO FINANCIAL STATEMENTS

1 Significant Accounting Policies

Eaton Vance Enhanced Equity Income Fund (the Fund) is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a diversified, closed-end management investment company. The Funds primary investment objective is to provide current income, with a secondary objective of capital appreciation. The Fund pursues its investment objectives by investing primarily in a portfolio of mid- and large-capitalization common stocks, seeking to invest primarily in companies with above-average growth and financial strength. Under normal market conditions, the Fund seeks to generate current earnings in part by employing an options strategy of writing covered call options with respect to a substantial portion of its portfolio securities.

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.

A Investment Valuation Equity securities (including common shares of closed-end investment companies) 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 a third party pricing service that will use various techniques that consider factors including, but not limited to, prices or yields of securities with similar characteristics, benchmark yields, broker/dealer quotes, quotes of underlying common stock, issuer spreads, as well as industry and economic events. Exchange-traded options are valued at the mean between the bid and asked prices at valuation time as reported by the Options Price Reporting Authority for U.S. listed options or by the relevant exchange or board of trade for non-U.S. listed options. Over-the-counter options are valued by a third party pricing service using techniques that consider factors including the value of the underlying instrument, the volatility of the underlying instrument and the period of time until option expiration. Short-term debt securities purchased with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates market value. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rate quotations supplied by a third party pricing service. The pricing service uses a proprietary model to determine the exchange rate. Inputs to the model include reported trades and implied bid/ask spreads. 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 or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the Fund in a manner that most fairly reflects the securitys value, or the amount that the Fund might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the securitys disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies or entities, quotations or relevant information obtained from broker-dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the companys or entitys financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.

The Fund may invest in Eaton Vance Cash Reserves Fund, LLC (Cash Reserves Fund), an affiliated investment company managed by Eaton Vance Management (EVM). Cash Reserves Fund generally values its investment securities utilizing the amortized cost valuation technique in accordance with Rule 2a-7 under the 1940 Act. This technique involves initially valuing a portfolio security at its cost and thereafter assuming a constant amortization to maturity of any discount or premium. If amortized cost is determined not to approximate fair value, Cash Reserves Fund may value its investment securities based on available market quotations provided by a third party pricing service.

B Investment Transactions Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost.

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C Income Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Fund is informed of the ex-dividend date. Withholding taxes on foreign dividends and capital gains have been provided for in accordance with the Funds understanding of the applicable countries tax rules and rates. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount.

D Federal Taxes The Funds 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.

At September 30, 2010, the Fund, for federal income tax purposes, had a capital loss carryforward of $131,572,760 which will reduce its taxable income arising from future net realized gains on investment transactions, if any, to the extent permitted by the Internal Revenue Code, and thus will reduce the amount of distributions to shareholders, which would otherwise be necessary to relieve the Fund of any liability for federal income or excise tax. Such capital loss carryforward will expire on September 30, 2017 ($9,096,930) and September 30, 2018 ($122,475,830).

Additionally, at September 30, 2010, the Fund had a net capital loss of $11,809,034 attributable to security transactions incurred after October 31, 2009. This net capital loss is treated as arising on the first day of the Funds taxable year ending September 30, 2011.

As of September 30, 2010, the Fund had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each of the Funds federal tax returns filed in the 3-year period ended September 30, 2010 remains subject to examination by the Internal Revenue Service.

E Expense Reduction State Street Bank and Trust Company (SSBT) serves as custodian of the Fund. Pursuant to the custodian agreement, SSBT receives a fee reduced by credits, which are determined based on the average daily cash balance the Fund maintains with SSBT. All credit balances, if any, used to reduce the Funds custodian fees are reported as a reduction of expenses in the Statement of Operations.

F Foreign Currency Translation Investment valuations, other assets, and liabilities initially expressed in foreign currencies are translated each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investment securities and income and expenses denominated in foreign currencies are translated into U.S. dollars based upon currency exchange rates in effect on the respective dates of such transactions. Recognized gains or losses on investment transactions attributable to changes in foreign currency exchange rates are recorded for financial statement purposes as net realized gains and losses on investments. That portion of unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.

G Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America 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.

H Indemnifications Under the Funds organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Fund. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as the Fund) could be deemed to have personal liability for the obligations of the Fund. However, the Funds Declaration of Trust contains an express disclaimer of liability on the part of Fund shareholders and the By-laws provide that the Fund shall assume 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 Funds 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.

I Written Options Upon the writing of a call or a put option, the premium received by the Fund is included in the Statement of Assets and Liabilities as a liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written, in accordance with the Funds policies on investment valuations discussed above. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or are closed are added to or offset against the proceeds or amount paid on the transaction to determine the realized gain or loss. If a put option on a security is exercised, the premium reduces the cost basis of the

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securities purchased by the Fund. The Fund, as a writer of an option, may have no control over whether the underlying securities or other assets may be sold (call) or purchased (put) and, as a result, bears the market risk of an unfavorable change in the price of the securities or other assets underlying the written option. The Fund may also bear the risk of not being able to enter into a closing transaction if a liquid secondary market does not exist.

2 Distributions to Shareholders

Subject to its Managed Distribution Plan, the Fund intends to make monthly distributions from its cash available for distribution, which consists of the Funds dividends and interest income after payment of Fund expenses, net option premiums and net realized and unrealized gains on stock investments. The Fund intends to distribute all or substantially all of its net realized capital gains (reduced by available capital loss carryforwards from prior years, if any). Distributions are recorded on the ex-dividend date. The Fund distinguishes between distributions on a tax basis and a financial reporting basis. Accounting principles generally accepted in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income. Distributions in any year may include a substantial return of capital component.

The tax character of distributions declared for the years ended September 30, 2010 and September 30, 2009 was as follows:

| | Year Ended
September 30, — 2010 | 2009 |
| --- | --- | --- |
| Distributions declared from: | | |
| Ordinary income | $ 3,679,239 | $ 6,995,420 |
| Tax return of capital | $ 54,445,644 | $ 58,284,654 |

During the year ended September 30, 2010, accumulated net realized loss was decreased by $71,352 and accumulated undistributed net investment income was decreased by $71,352 due to differences between book and tax accounting, primarily for distributions from real estate investment trusts (REITs), investments in partnerships and foreign currency gain(loss). These reclassifications had no effect on the net assets or net asset value per share of the Fund.

As of September 30, 2010, the components of distributable earnings (accumulated losses) and unrealized appreciation (depreciation) on a tax basis were as follows:

Capital loss carryforward and post October losses	$
Net unrealized appreciation	$ 37,382,974

The differences between components of distributable earnings (accumulated losses) on a tax basis and the amounts reflected in the Statement of Assets and Liabilities are primarily due to distributions from REITs, wash sales and investments in partnerships.

3 Investment Adviser Fee and Other Transactions with Affiliates

The investment adviser fee is earned by EVM as compensation for management and investment advisory services rendered to the Fund. The fee is computed at an annual rate of 1.00% of the Funds average daily gross assets and is payable monthly. Gross assets as referred to herein represent net assets plus obligations attributable to investment leverage, if any. Prior to its liquidation in February 2010, the portion of the adviser fee payable by Cash Management Portfolio, an affiliated investment company, on the Funds investment of cash therein was credited against the Funds investment adviser fee. The Fund currently invests its cash in Cash Reserves Fund. EVM does not currently receive a fee for advisory services provided to Cash Reserves Fund. For the year ended September 30, 2010, the Funds investment adviser fee totaled $5,326,120 of which $3,713 was allocated from Cash Management Portfolio and $5,322,407 was paid or accrued directly by the Fund. Prior to October 20, 2009, EVM delegated the investment management of the Funds options strategy to Rampart Investment Management Company, Inc. (Rampart) pursuant to a sub-advisory agreement. EVM paid Rampart a portion of its advisory fee for sub-advisory services provided to the Fund. EVM terminated its sub-advisory agreement with Rampart with respect to the Fund and, effective October 20, 2009, EVM assumed the investment management of the Funds options strategy. EVM also serves as administrator of the Fund, but receives no compensation.

Except for Trustees of the Fund who are not members of EVMs organization, officers and Trustees receive remuneration for their services to the Fund out of the investment adviser fee. Trustees of the Fund who are not affiliated with EVM may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the year ended September 30, 2010, no significant amounts have been deferred. Certain officers and Trustees of the Fund are officers of EVM.

4 Purchases and Sales of Investments

Purchases and sales of investments, other than short-term obligations, aggregated $141,645,549 and $197,304,343, respectively, for the year ended September 30, 2010.

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Eaton Vance Enhanced Equity Income Fund as of September 30, 2010

NOTES TO FINANCIAL STATEMENTS CONTD

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5 Common Shares of Beneficial Interest

Common shares issued pursuant to the Funds dividend reinvestment plan for the years ended September 30, 2010 and September 30, 2009 were 164,524 and 89,833, respectively.

6 Federal Income Tax Basis of Investments

The cost and unrealized appreciation (depreciation) of investments of the Fund at September 30, 2010, as determined on a federal income tax basis, were as follows:

Aggregate cost	$
Gross unrealized appreciation	$ 68,636,970
Gross unrealized depreciation	(24,383,589	)
Net unrealized appreciation	$ 44,253,381

7 Financial Instruments

The Fund may trade in financial instruments with off-balance sheet risk in the normal course of its investing activities. These financial instruments may include written options and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment the Fund has in particular classes of financial instruments and do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. A summary of written call options at September 30, 2010 is included in the Portfolio of Investments.

Written call options activity for the year ended September 30, 2010 was as follows:

Contracts		Received
Outstanding, beginning of year	82,872	$	16,233,693
Options written	379,894		63,000,230
Options terminated in closing purchase transactions	(227,075	)	(42,770,310	)
Options exercised	(7,322	)	(1,213,486	)
Options expired	(138,672	)	(22,232,430	)
Outstanding, end of year	89,697	$	13,017,697

At September 30, 2010, the Fund had sufficient cash and/or securities to cover commitments under these contracts.

The Fund is subject to equity price risk in the normal course of pursuing its investment objectives. The Fund generally intends to write covered call options on individual stocks above the current value of the stock to generate premium income. In writing call options on individual stocks, the Fund in effect, sells potential appreciation in the value of the applicable stock above the exercise price in exchange for the option premium received. The Fund retains the risk of loss, minus the premium received, should the price of the underlying stock decline. The Fund is not subject to counterparty credit risk with respect to its written options as the Fund, not the counterparty, is obligated to perform under such derivatives.

The fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) and whose primary underlying risk exposure is equity price risk at September 30, 2010 was as follows:

| | Fair
Value — Asset
Derivative | Liability
Derivative (1) |
| --- | --- | --- |
| Written options | $ | $ 19,891,462 |

(1) Statement of Assets and Liabilities location: Written options outstanding, at value.

The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations and whose primary underlying risk exposure is equity price risk for the year ended September 30, 2010 was as follows:

		Change in
		Unrealized
	Realized Gain	Appreciation
	(Loss) on	(Depreciation)
on
	Derivatives	Derivatives
	Recognized in	Recognized in
	Income (1)	Income (2)
Written options	$ 3,056,199	$ (1,351,855	)

| (1) | Statement of Operations location: Net realized gain
(loss) Written options. |
| --- | --- |
| (2) | Statement of Operations location: Change in unrealized
appreciation (depreciation) Written options. |

8 Fair Value Measurements

Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

| | Level 1 quoted prices in active markets for
identical investments |
| --- | --- |
| | Level 2 other significant observable inputs
(including quoted prices for similar investments, interest
rates, prepayment speeds, credit risk, etc.) |
| | Level 3 significant unobservable inputs
(including a funds 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. |

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Eaton Vance Enhanced Equity Income Fund as of September 30, 2010

NOTES TO FINANCIAL STATEMENTS CONTD

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At September 30, 2010, the inputs used in valuing the Funds investments, which are carried at value, were as follows:

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Asset
Description	(Level
1)		(Level
2)		(Level
3)	Total
Common Stocks
Consumer Discretionary	$ 54,737,412		$		$	$ 54,737,412
Consumer Staples	58,354,016					58,354,016
Energy	59,839,592					59,839,592
Financials	74,177,924					74,177,924
Health Care	68,582,788					68,582,788
Industrials	63,087,425					63,087,425
Information Technology	101,047,066					101,047,066
Materials	15,463,089					15,463,089
Telecommunication Services	15,138,587		2,743,001			17,881,588
Utilities	15,277,514					15,277,514
Total Common Stocks	$ 525,705,413		$ 2,743,001	*	$	$ 528,448,414
Short-Term Investments	$		$ 5,660,409		$	$ 5,660,409
Total Investments	$ 525,705,413		$ 8,403,410		$	$ 534,108,823
Liability Description
Covered Call Options Written	$ (19,891,462	)	$		$	$ (19,891,462	)
Total	$ (19,891,462	)	$		$	$ (19,891,462	)

Includes foreign equity securities whose values were adjusted to reflect market trading of comparable securities or other correlated instruments that occurred after the close of trading in their applicable foreign markets.

The Fund held no investments or other financial instruments as of September 30, 2009 whose fair value was determined using Level 3 inputs.

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Eaton Vance Enhanced Equity Income Fund as of September 30, 2010

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustees and Shareholders of Eaton Vance Enhanced Equity Income Fund:

We have audited the accompanying statement of assets and liabilities of Eaton Vance Enhanced Equity Income Fund (the Fund), including the portfolio of investments, as of September 30, 2010, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of September 30, 2010, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Eaton Vance Enhanced Equity Income Fund as of September 30, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

Boston, Massachusetts

November 15, 2010

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Eaton Vance Enhanced Equity Income Fund as of September 30, 2010

FEDERAL TAX INFORMATION (Unaudited)

The Form 1099-DIV you receive in January 2011 will show the tax status of all distributions paid to your account in calendar year 2010. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their investment in the Fund. As required by the Internal Revenue Code and/or regulations, shareholders must be notified within 60 days of the Funds fiscal year end regarding the status of qualified dividend income for individuals and the dividends received deduction for corporations.

Qualified Dividend Income. The Fund designates $9,439,945, or up to the maximum amount of such dividends allowable pursuant to the Internal Revenue Code, as qualified dividend income eligible for the reduced tax rate of 15%.

Dividends Received Deduction. Corporate shareholders are generally entitled to take the dividends received deduction on the portion of the Funds dividend distribution that qualifies under tax law. For the Funds fiscal 2010 ordinary income dividends, 100% qualifies for the corporate dividends received deduction.

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Eaton Vance Enhanced Equity Income Fund as of September 30, 2010

NOTICE TO SHAREHOLDERS

In November 2009, the Board approved a change to the Funds investment policies with respect to the sale of stock underlying a call option. As part of its investment program, the Fund sells call options on a substantial portion of the stocks it holds and is required to buy back a call option before selling the stock underlying that option. The investment policy change approved by the Board allows a Fund to sell the stock underlying a call option prior to purchasing back the call option on up to 5% of the Funds net assets, provided that such sales occur no more than three days before the option buy back. Previously, call options were covered continuously.

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Eaton Vance Enhanced Equity Income Fund

ANNUAL MEETING OF SHAREHOLDERS (Unaudited)

The Fund held its Annual Meeting of Shareholders on July 23, 2010. The following action was taken by the shareholders:

Item 1: The election of Helen Frame Peters, Lynn A. Stout and Ralph F. Verni as Class III Trustees of the Fund for a three-year term expiring in 2013.

| Nominee for
Trustee | Number of
Shares | |
| --- | --- | --- |
| Elected by All
Shareholders | For | Withheld |
| Helen Frame Peters | 36,648,497 | 814,588 |
| Lynn A. Stout | 36,635,601 | 827,484 |
| Ralph F. Verni | 36,629,658 | 833,427 |

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Eaton Vance Enhanced Equity Income Fund

DIVIDEND REINVESTMENT PLAN

The Fund offers a dividend reinvestment plan (the Plan) pursuant to which shareholders may elect to have distributions automatically reinvested in common shares (the Shares) of the Fund. You may elect to participate in the Plan by completing the Dividend Reinvestment Plan Application Form. If you do not participate, you will receive all distributions in cash paid by check mailed directly to you by American Stock Transfer & Trust Company (AST) as dividend paying agent. On the distribution payment date, if the net asset value per Share is equal to or less than the market price per Share plus estimated brokerage commissions, then new Shares will be issued. The number of Shares shall be determined by the greater of the net asset value per Share or 95% of the market price. Otherwise, Shares generally will be purchased on the open market by the Plan Agent. Distributions subject to income tax (if any) are taxable whether or not shares are reinvested.

If your shares are in the name of a brokerage firm, bank, or other nominee, you can ask the firm or nominee to participate in the Plan on your behalf. If the nominee does not offer the Plan, you will need to request that your shares be re-registered in your name with the Funds transfer agent, AST, or you will not be able to participate.

The Plan Agents service fee for handling distributions will be paid by the Fund. Each participant will be charged their pro-rata share of brokerage commissions on all open-market purchases.

Plan participants may withdraw from the Plan at any time by writing to the Plan Agent at the address noted on the following page. If you withdraw, you will receive shares in your name for all Shares credited to your account under the Plan. If a participant elects by written notice to the Plan Agent to have the Plan Agent sell part or all of his or her Shares and remit the proceeds, the Plan Agent is authorized to deduct a $5.00 fee plus brokerage commissions from the proceeds.

If you wish to participate in the Plan and your shares are held in your own name, you may complete the form on the following page and deliver it to the Plan Agent.

Any inquiries regarding the Plan can be directed to the Plan Agent, AST, at 1-866-439-6787.

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Eaton Vance Enhanced Equity Income Fund

APPLICATION FOR PARTICIPATION IN DIVIDEND REINVESTMENT PLAN

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This form is for shareholders who hold their common shares in their own names. If your common shares are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to see if it will participate in the Plan on your behalf. If you wish to participate in the Plan, but your brokerage firm, bank, or nominee is unable to participate on your behalf, you should request that your common shares be re-registered in your own name which will enable your participation in the Plan.

End box 1

The following authorization and appointment is given with the understanding that I may terminate it at any time by terminating my participation in the Plan as provided in the terms and conditions of the Plan.

Please print exact name on account:

Shareholder signature Date

Please sign exactly as your common shares are registered. All persons whose names appear on the share certificate must sign.

YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.

This authorization form, when signed, should be mailed to the following address:

Eaton Vance Enhanced Equity Income Fund

c/o American Stock Transfer & Trust Company P.O. Box 922

Wall Street Station

New York, NY 10269-0560

Number of Employees

The Fund is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a closed-end management investment company and has no employees.

Number of Shareholders

As of September 30, 2010, our records indicate that there are 99 registered shareholders and approximately 34,193 shareholders owning the Fund shares in street name, such as through brokers, banks, and financial intermediaries.

If you are a street name shareholder and wish to receive Fund reports directly, which contain important information about the Fund, please write or call:

Eaton Vance Distributors, Inc.

Two International Place

Boston, MA 02110

1-800-262-1122

New York Stock Exchange symbol

The New York Stock Exchange symbol is EOI.

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Eaton Vance Enhanced Equity Income Fund

BOARD OF TRUSTEES CONTRACT APPROVAL

Overview of the Contract Review Process

The Investment Company Act of 1940, as amended (the 1940 Act), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuance is approved at least annually by the funds board of trustees, including by a vote of a majority of the trustees who are not interested persons of the fund (Independent Trustees), cast in person at a meeting called for the purpose of considering such approval.

At a meeting of the Boards of Trustees (each a Board) of the Eaton Vance group of mutual funds (the Eaton Vance Funds) held on April 26, 2010, the Board, including a majority of the Independent Trustees, voted to approve continuation of existing advisory and sub-advisory agreements for the Eaton Vance Funds for an additional one-year period. In voting its approval, the Board relied upon the affirmative recommendation of the Contract Review Committee of the Board, which is a committee comprised exclusively of Independent Trustees. Prior to making its recommendation, the Contract Review Committee reviewed information furnished for a series of meetings of the Contract Review Committee held between February and April 2010. Such information included, among other things, the following:

Information about Fees, Performance and Expenses

| | An independent report comparing the advisory and related fees
paid by each fund with fees paid by comparable funds; |
| --- | --- |
| | An independent report comparing each funds total expense
ratio and its components to comparable funds; |
| | An independent report comparing the investment performance of
each fund (including yield where relevant) to the investment
performance of comparable funds over various time periods; |
| | Data regarding investment performance in comparison to relevant
peer groups of similarly managed funds and appropriate indices; |
| | For each fund, comparative information concerning the fees
charged and the services provided by each adviser in managing
other mutual funds and institutional accounts using investment
strategies and techniques similar to those used in managing such
fund; |
| | Profitability analyses for each adviser with respect to each
fund; |

Information about Portfolio Management

| | Descriptions of the investment management services provided to
each fund, including the investment strategies and processes
employed, and any changes in portfolio management processes and
personnel; |
| --- | --- |
| | Information concerning the allocation of brokerage and the
benefits received by each adviser as a result of brokerage
allocation, including information concerning the acquisition of
research through soft dollar benefits received in
connection with the funds brokerage, and the
implementation of a soft dollar reimbursement program
established with respect to the funds; |
| | Data relating to portfolio turnover rates of each fund; |
| | The procedures and processes used to determine the fair value of
fund assets and actions taken to monitor and test the
effectiveness of such procedures and processes; |

Information about each Adviser

| | Reports detailing the financial results and condition of each
adviser; |
| --- | --- |
| | Descriptions of the qualifications, education and experience of
the individual investment professionals whose responsibilities
include portfolio management and investment research for the
funds, and information relating to their compensation and
responsibilities with respect to managing other mutual funds and
investment accounts; |
| | Copies of the Codes of Ethics of each adviser and its
affiliates, together with information relating to compliance
with and the administration of such codes; |
| | Copies of or descriptions of each advisers policies and
procedures relating to proxy voting, the handling of corporate
actions and class actions; |
| | Information concerning the resources devoted to compliance
efforts undertaken by each adviser and its affiliates on behalf
of the funds (including descriptions of various compliance
programs) and their record of compliance with investment
policies and restrictions, including policies with respect to
market-timing, late trading and selective portfolio disclosure,
and with policies on personal securities transactions; |
| | Descriptions of the business continuity and disaster recovery
plans of each adviser and its affiliates; |
| | A description of Eaton Vance Managements procedures for
overseeing third party advisers and sub-advisers; |

Other Relevant Information

| | Information concerning the nature, cost and character of the
administrative and other non-investment management services
provided by Eaton Vance Management and its affiliates; |
| --- | --- |
| | Information concerning management of the relationship with the
custodian, subcustodians and fund accountants by each adviser or
the funds administrator; and |
| | The terms of each advisory agreement. |

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Eaton Vance Enhanced Equity Income Fund

BOARD OF TRUSTEES CONTRACT APPROVAL CONTD

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In addition to the information identified above, the Contract Review Committee considered information provided from time to time by each adviser throughout the year at meetings of the Board and its committees. Over the course of the twelve-month period ended April 30, 2010, with respect to one or more Funds, the Board met ten times and the Contract Review Committee, the Audit Committee, the Governance Committee, the Portfolio Management Committee and the Compliance Reports and Regulatory Matters Committee, each of which is a Committee comprised solely of Independent Trustees, met nine, thirteen, three, eight and fifteen times, respectively. At such meetings, the Trustees received, among other things, presentations by the portfolio managers and other investment professionals of each adviser relating to the investment performance of each fund and the investment strategies used in pursuing the funds investment objective including, where relevant, the use of derivative instruments, as well as trading policies and procedures and risk management techniques.

For funds that invest through one or more underlying portfolios, the Board considered similar information about the portfolio(s) when considering the approval of advisory agreements. In addition, in cases where the funds investment adviser has engaged a sub-adviser, the Board considered similar information about the sub-adviser when considering the approval of any sub-advisory agreement.

The Contract Review Committee was assisted throughout the contract review process by Goodwin Procter LLP, legal counsel for the Independent Trustees. The members of the Contract Review Committee relied upon the advice of such counsel and their own business judgment in determining the material factors to be considered in evaluating each advisory and sub-advisory agreement and the weight to be given to each such factor. The conclusions reached with respect to each advisory and sub-advisory agreement were based on a comprehensive evaluation of all the information provided and not any single factor. Moreover, each member of the Contract Review Committee may have placed varying emphasis on particular factors in reaching conclusions with respect to each advisory and sub-advisory agreement.

Results of the Process

Based on its consideration of the foregoing, and such other information as it deemed relevant, including the factors and conclusions described below, the Contract Review Committee concluded that the continuance of the investment advisory agreement of Eaton Vance Enhanced Equity Income Fund (the Fund) with Eaton Vance Management (the Adviser), including its fee structure, is in the interests of shareholders and, therefore, the Contract Review Committee recommended to the Board approval of the agreement. The Board accepted the recommendation of the Contract Review Committee as well as the factors considered and conclusions reached by the Contract Review Committee with respect to the agreement. Accordingly, the Board, including a majority of the Independent Trustees, voted to approve continuation of the investment advisory agreement for the Fund.

Nature, Extent and Quality of Services

In considering whether to approve the investment advisory agreement of the Fund, the Board evaluated the nature, extent and quality of services provided to the Fund by the Adviser.

The Board considered the Advisers management capabilities and investment process with respect to the types of investments held by the Fund, including the education, experience and number of its investment professionals and other personnel who provide portfolio management, investment research, and similar services to the Fund. In particular, the Board evaluated, where relevant, the abilities and experience of such investment personnel in analyzing factors such as credit risk, and special considerations relevant to investing in particular foreign markets or industries and implementing the Funds options strategy. The Board considered the Advisers in-house research capabilities as well as other resources available to personnel of the Adviser. The Board also took into account the resources dedicated to portfolio management and other services, including the compensation methods of the Adviser to recruit and retain investment personnel, and the time and attention devoted to the Fund by senior management.

The Board also reviewed the compliance programs of the Adviser and relevant affiliates thereof. Among other matters, the Board considered compliance and reporting matters relating to personal trading by investment personnel, selective disclosure of portfolio holdings, late trading, frequent trading, portfolio valuation, business continuity and the allocation of investment opportunities. The Board also evaluated the responses of the Adviser and its affiliates to requests in recent years from regulatory authorities such as the Securities and Exchange Commission and the Financial Industry Regulatory Authority.

The Board considered shareholder and other administrative services provided or managed by Eaton Vance Management and its affiliates, including transfer agency and accounting services. The Board evaluated the benefits to shareholders of investing in a fund that is a part of a large family of funds.

After consideration of the foregoing factors, among others, the Board concluded that the nature, extent and quality of services provided by the Adviser, taken as a whole, are appropriate and consistent with the terms of the investment advisory agreement.

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BOARD OF TRUSTEES CONTRACT APPROVAL CONTD

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Fund Performance

The Board compared the Funds investment performance to a relevant universe of comparable funds identified by an independent data provider as well as a peer group of similarly managed funds and appropriate benchmark indices. The Board reviewed comparative performance data for the one- and three-year periods ended September 30, 2009 for the Fund. On the basis of the foregoing and other relevant information provided by the Adviser in response to inquiries from the Contract Review Committee, the Board concluded that the performance of the Fund was satisfactory.

Management Fees and Expenses

The Board reviewed contractual investment advisory fee rates payable by the Fund (referred to as management fees). As part of its review, the Board considered the management fees and the Funds total expense ratio for the year ended September 30, 2009, as compared to a group of similarly managed funds selected by an independent data provider. The Board also considered factors that had an impact on Fund expense ratios, as identified by management in response to inquiries from the Contract Review Committee, as well as actions being taken to reduce expenses at the Eaton Vance fund complex level.

After reviewing the foregoing information, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded that the management fees charged to the Fund for advisory and related services are reasonable.

Profitability

The Board reviewed the level of profits realized by the Adviser and relevant affiliates thereof in providing investment advisory and administrative services to the Fund and to all Eaton Vance Funds as a group. The Board considered the level of profits realized with and without regard to revenue sharing or other payments by the Adviser and its affiliates to third parties in respect of distribution services. The Board also considered other direct or indirect benefits received by the Adviser and its affiliates in connection with its relationship with the Fund, including the benefits of research services that may be available to the Adviser as a result of securities transactions effected for the Fund and other investment advisory clients.

The Board concluded that, in light of the foregoing factors and the nature, extent and quality of the services rendered, the profits realized by the Adviser and its affiliates are reasonable.

Economies of Scale

In reviewing management fees and profitability, the Board also considered the extent to which the Adviser and its affiliates, on the one hand, and the Fund, on the other hand, can expect to realize benefits from economies of scale as the assets of the Fund increase. The Board acknowledged the difficulty in accurately measuring the benefits resulting from the economies of scale with respect to the management of any specific fund or group of funds. The Board also considered the fact that the Fund is not continuously offered and concluded that, in light of the level of the Advisers profits with respect to the Fund, the implementation of breakpoints in the advisory fee schedule is not appropriate at this time. Based upon the foregoing, the Board concluded that the benefits from economies of scale are currently being shared equitably by the Adviser and its affiliates and the Fund.

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Eaton Vance Enhanced Equity Income Fund

MANAGEMENT AND ORGANIZATION

Fund Management. The Trustees of Eaton Vance Enhanced Equity Income Fund (the Fund) are responsible for the overall management and supervision of the Funds affairs. The Trustees and officers of the Fund are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. The Noninterested Trustees consist of those Trustees who are not interested persons of the Fund, as that term is defined under the 1940 Act. The business address of each Trustee and officer is Two International Place, Boston, Massachusetts 02110. As used below, EVC refers to Eaton Vance Corp., EV refers to Eaton Vance, Inc., EVM refers to Eaton Vance Management, BMR refers to Boston Management and Research and EVD refers to Eaton Vance Distributors, Inc. EVC and EV are the corporate parent and trustee, respectively, of EVM and BMR. EVD is a wholly-owned subsidiary of EVC. Each officer affiliated with Eaton Vance may hold a position with other Eaton Vance affiliates that is comparable to his or her position with EVM listed below.

| | Position(s) | Term of — Office and | Principal
Occupation(s) | Number of
Portfolios — in Fund
Complex | |
| --- | --- | --- | --- | --- | --- |
| Name and | with the | Length of | During Past Five
Years and | Overseen By | Other
Directorships Held |
| Date of
Birth | Fund | Service | Other Relevant
Experience | Trustee (1) | During the Last
Five
Years (2) |
| Interested
Trustee | | | | | |
| Thomas E. Faust Jr. 5/31/58 | Class I Trustee and Vice President | Until 2011. 3 years. Trustee since 2007 and Vice President since 2004. | Chairman, Chief Executive Officer and President of EVC, Director
and President of EV, Chief Executive Officer and President of
EVM and BMR, and Director of EVD. Trustee and/or officer of 184 registered investment companies and 1 private
investment company managed by EVM or BMR. Mr. Faust is an
interested person because of his positions with EVM, BMR, EVD,
EVC and EV, which are affiliates of the Fund. | 184 | Director of EVC. |
| Noninterested
Trustees | | | | | |
| Benjamin C. Esty 1/2/63 | Class I Trustee | Until 2011. 3 years. Trustee since 2005. | Roy and Elizabeth Simmons Professor of Business Administration
and Finance Unit Head, Harvard University Graduate School of
Business Administration. | 184 | None |
| Allen R. Freedman 4/3/40 | Class I Trustee | Until 2011. 3 years. Trustee since 2007. | Private Investor and Consultant. Former Chairman (2002-2004) and a Director (1983-2004) of Systems & Computer Technology Corp. (provider of
software to higher education). Formerly, a Director of Loring
Ward International (fund distributor) (2005-2007). Formerly, Chairman and a Director of Indus International, Inc.
(provider of enterprise management software to the power
generating industry) (2005-2007). | 184 | Director of Assurant, Inc. (insurance provider) and Stonemor Partners, L.P. (owner and operator of cemeteries). |
| William H. Park 9/19/47 | Class II Trustee | Until 2012. 3 years. Trustee since 2004. | Chief Financial Officer, Aveon Group, L.P. (an investment
management firm) (since 2010). Formerly, Vice Chairman,
Commercial Industrial Finance Corp. (specialty finance company) (2006-2010). Formerly, President and Chief Executive Officer, Prizm Capital
Management, LLC (investment management firm) (2002-2005). Formerly, Executive Vice President and Chief Financial Officer,
United Asset Management Corporation (an institutional investment
management firm) (1982-2001). Formerly, Senior Manager, Price Waterhouse (now
PricewaterhouseCoopers) (an independent registered public
accounting firm) (1972-1981). | 184 | None |
| Ronald A. Pearlman 7/10/40 | Class II Trustee | Until 2012. 3 years. Trustee since 2004. | Professor of Law, Georgetown University Law Center. Formerly,
Deputy Assistant Secretary (Tax Policy) and Assistant Secretary
(Tax Policy), U.S. Department of the Treasury (1983-1985). Formerly, Chief of Staff, Joint Committee on Taxation, U.S.
Congress (1988-1990). | 184 | None |

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MANAGEMENT AND ORGANIZATION CONTD

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| | Position(s) | Term of — Office and | Principal
Occupation(s) | Number of
Portfolios — in Fund
Complex | |
| --- | --- | --- | --- | --- | --- |
| Name and | with the | Length of | During Past Five
Years and | Overseen By | Other
Directorships Held |
| Date of
Birth | Fund | Service | Other Relevant
Experience | Trustee (1) | During the Last
Five
Years (2) |
| Noninterested
Trustees (continued) | | | | | |
| Helen Frame Peters 3/22/48 | Class III Trustee | Until 2013. 3 years. Trustee since 2008. | Professor of Finance, Carroll School of Management, Boston
College. Formerly, Dean, Carroll School of Management, Boston
College (2000-2002). Formerly, Chief Investment Officer, Fixed Income, Scudder Kemper
Investments (investment management firm) (1998-1999). Formerly, Chief Investment Officer, Equity and Fixed Income,
Colonial Management Associates (investment management firm) (1991-1998). | 184 | Director of BJs Wholesale Club, Inc. (wholesale club retailer). Formerly, Trustee of SPDR Index Shares Funds and SPDR Series Trust (exchange traded funds) (2000-2009). Formerly, Director of Federal Home Loan Bank of Boston (a bank for banks) (2007-2009). |
| Heidi L. Steiger 7/8/53 | Class II Trustee | Until 2012. 3 years. Trustee since 2007. | Managing Partner, Topridge Associates LLC (global wealth
management firm) (since 2008); Senior Advisor (since 2008),
President (2005-2008), Lowenhaupt Global Advisors, LLC (global wealth management firm).
Formerly, President and Contributing Editor, Worth Magazine (2004-2005). Formerly, Executive Vice President and Global Head of Private
Asset Management (and various other positions), Neuberger Berman
(investment firm) (1986-2004). | 184 | Director of Nuclear Electric Insurance Ltd. (nuclear insurance
provider), Aviva USA (insurance provider) and CIFG (family of
financial guaranty companies), and Advisory Director of
Berkshire Capital Securities LLC (private investment banking
firm). |
| Lynn A. Stout 9/14/57 | Class III Trustee | Until 2013. 3 years. Trustee since 2004. | Paul Hastings Professor of Corporate and Securities Law (since
2006) and Professor of Law (2001-2006), University of California at Los Angeles School of Law. Professor
Stout teaches classes in corporate law and securities regulation
and is the author of numerous academic and professional papers
on these areas. | 184 | None |
| Ralph F. Verni 1/26/43 | Chairman of the Board and Class III Trustee | Until 2013. 3 years. Chairman of the Board since 2007; Trustee since 2005. | Consultant and private investor. Formerly, Chief Investment
Officer (1982-1992), Chief Financial Officer (1988-1990) and Director (1982-1992), New England Life. Formerly, Chairperson, New England Mutual
Funds (1982-1992). Formerly, President and Chief Executive Officer, State Street
Management & Research (1992-2000). Formerly, Chairperson, State Street Research Mutual Funds (1992-2000). Formerly, Director, W.P. Carey, LLC (1998-2004) and First Pioneer Farm Credit Corp. (2002-2006). | 184 | None |

Principal Officers who are not Trustees

	Position(s)	Term of — Office and
Name and	with the	Length of	Principal
Occupation(s)
Date of
Birth	Fund	Service	During Past Five
Years
Duncan W. Richardson 10/26/57	President	Since 2004	Director of EVC and Executive Vice President and Chief Equity
Investment Officer of EVC, EVM and BMR. Officer of 84 registered
investment companies managed by EVM or BMR.
Michael A. Allison 10/26/64	Vice President	Since 2008	Vice President of EVM and BMR. Officer of 24 registered
investment companies managed by EVM or BMR.
Walter A. Row, III 7/20/57	Vice President	Since 2004	Vice President of EVM and BMR. Officer of 25 registered
investment companies managed by EVM or BMR.
Barbara E. Campbell 6/19/57	Treasurer	Since 2005	Vice President of EVM and BMR. Officer of 184 registered
investment companies managed by EVM or BMR.

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MANAGEMENT AND ORGANIZATION CONTD

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	Position(s)	Term of — Office and
Name and	with the	Length of	Principal
Occupation(s)
Date of
Birth	Fund	Service	During Past Five
Years
Principal
Officers who are not Trustees (continued)
Maureen A. Gemma 5/24/60	Secretary and Chief Legal Officer	Secretary since 2007 and Chief Legal Officer since 2008	Vice President of EVM and BMR. Officer of 184 registered
investment companies managed by EVM or BMR.
Paul M. ONeil 7/11/53	Chief Compliance Officer	Since 2004	Vice President of EVM and BMR. Officer of 184 registered
investment companies managed by EVM or BMR.

| (1) | Includes both master and feeder funds in a master-feeder
structure. |
| --- | --- |
| (2) | During their respective tenures, the Trustees also served as
trustees of one or more of the following Eaton Vance funds
(which operated in the years noted): Eaton Vance Credit
Opportunities Fund (launched in 2005 and terminated in 2010);
Eaton Vance Insured Florida Plus Municipal Bond Fund (launched
in 2002 and terminated in 2009); and Eaton Vance National
Municipal Income Fund (launched in 1998 and terminated in 2009). |

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IMPORTANT NOTICES

Privacy. The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy (Privacy Policy) with respect to nonpublic personal information about its customers:

| | Only such information received from you, through application
forms or otherwise, and information about your Eaton Vance fund
transactions will be collected. This may include information
such as name, address, social security number, tax status,
account balances and transactions. |
| --- | --- |
| | None of such information about you (or former customers) will be
disclosed to anyone, except as permitted by law (which includes
disclosure to employees necessary to service your account). In
the normal course of servicing a customers account, Eaton
Vance may share information with unaffiliated third parties that
perform various required services such as transfer agents,
custodians and broker/dealers. |
| | Policies and procedures (including physical, electronic and
procedural safeguards) are in place that are designed to protect
the confidentiality of such information. |
| | We reserve the right to change our Privacy Policy at any time
upon proper notification to you. Customers may want to review
our Privacy Policy periodically for changes by accessing the
link on our homepage: www.eatonvance.com. |

Our pledge of privacy applies to the following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance Investment Counsel, Boston Management and Research, and Eaton Vance Distributors, Inc. Our Privacy Policy applies only to those Eaton Vance customers who are individuals and who have a direct relationship with us. If a customers account (i.e., fund shares) is held in the name of a third-party financial adviser/broker-dealer, it is likely that only such advisers privacy policies apply to the customer. This notice supersedes all previously issued privacy disclosures.

For more information about Eaton Vances Privacy Policy, please call 1-800-262-1122.

Investment Adviser and Administrator of

Eaton Vance Enhanced Equity Income Fund

Eaton Vance Management

Two International Place

Boston, MA 02110

Custodian

State Street Bank and Trust Company

200 Clarendon Street

Boston, MA 02116

Transfer Agent

American Stock Transfer & Trust Company

59 Maiden Lane

Plaza Level New York, NY 10038

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

200 Berkeley Street

Boston, MA 02116-5022

Eaton Vance Enhanced Equity Income Fund Two International Place Boston, MA 02110

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2285-11/10 CE-EEIFSRC

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Item 2. Code of Ethics

The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122.

Item 3. Audit Committee Financial Expert

The registrants Board has designated William H. Park, an independent trustee, as its audit committee financial expert. Mr. Park is a certified public accountant who is the Chief Financial Officer of Aveon Group, L.P. (an investment management firm). Previously, he served as the Vice Chairman of Commercial Industrial Finance Corp. (specialty finance company), as President and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm), as Executive Vice President and Chief Financial Officer of United Asset Management Corporation (an institutional investment management firm) and as a Senior Manager at Price Waterhouse (now PricewaterhouseCoopers) (an independent registered public accounting firm).

Item 4. Principal Accountant Fees and Services

(a) (d)

The following table presents the aggregate fees billed to the registrant for the registrants fiscal years ended September 30, 2009 and September 30, 2010 by the Funds principal accountant, Deloitte & Touche LLP (D&T), for professional services rendered for the audit of the Funds annual financial statements and fees billed for other services rendered by D&T during those periods.

Fiscal Years Ended	9/30/09	9/30/10
Audit Fees	$ 42,510	$ 42,510
Audit-Related Fees (1)	$ 0	$ 0
Tax Fees (2)	$ 18,620	$ 18,620
All Other Fees (3)	$ 2,500	$ 1,400
Total	$ 63,630	$ 62,530

| (1) | Audit-related fees consist of the aggregate fees billed for assurance and related
services that are reasonably related to the performance of the audit of financial statements
and are not reported under the category of audit fees. |
| --- | --- |
| (2) | Tax fees consist of the aggregate fees billed for professional services rendered by
the principal accountant relating to tax compliance, tax advice, and tax planning and
specifically include fees for tax return preparation and other related tax compliance/planning
matters. |
| (3) | All other fees consist of the aggregate fees billed for products and services
provided by the principal accountant other than audit, audit-related, and tax services. |

(e)(1) The registrants audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrants principal accountant (the Pre-Approval Policies). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee.

The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrants audit committee at least annually. The registrants audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrants principal accountant.

(e)(2) No services described in paragraphs (b)-(d) above were approved by the registrants audit committee pursuant to the de minimis exception set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X.

(f) Not applicable.

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(g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed to the registrant by the registrants principal accountant for the registrants fiscal year ended September 30, 2009 and the fiscal year ended September 30, 2010; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the Eaton Vance organization by D&T for the last two fiscal years of each Series.

Fiscal Years Ended	9/30/09	9/30/10
Registrant	$ 21,120	$ 20,020
Eaton Vance 1	$ 288,889	$ 278,901

(1) The investment adviser to the registrant, as well as any of its affiliates that provide ongoing services to the registrant, are subsidiaries of Eaton Vance Corp.

(h) The registrants audit committee has considered whether the provision by the registrants principal accountant of non-audit services to the registrants investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountants independence.

Item 5. Audit Committee of Listed registrants

The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. William H. Park (Chair), Lynn A. Stout, Heidi L. Steiger and Ralph F. Verni are the members of the registrants audit committee.

Item 6. Schedule of Investments

Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the Fund Policy), pursuant to which the Trustees have delegated proxy voting responsibility to the Funds investment adviser and adopted the investment advisers proxy voting policies and procedures (the Policies) which are described below. The Trustees will review the Funds proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Funds shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Boards Special Committee except as contemplated under the Fund Policy. The Boards Special Committee will instruct the investment adviser on the appropriate course of action.

The Policies are designed to promote accountability of a companys management to its shareholders and to align the interests of management with those shareholders. An independent proxy voting service (Agent), currently Institutional Shareholder Services, Inc., has been retained to assist in the voting of

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proxies through the provision of vote analysis, implementation and recordkeeping and disclosure services. The investment adviser will generally vote proxies through the Agent. The Agent is required to vote all proxies and/or refer then back to the investment adviser pursuant to the Policies. It is generally the policy of the investment adviser to vote in accordance with the recommendation of the Agent. The Agent shall refer to the investment adviser proxies relating to mergers and restructurings, and the disposition of assets, termination, liquidation and mergers contained in mutual fund proxies. The investment adviser will normally vote against anti-takeover measures and other proposals designed to limit the ability of shareholders to act on possible transactions, except in the case of closed-end management investment companies. The investment adviser generally supports management on social and environmental proposals. The investment adviser may abstain from voting from time to time where it determines that the costs associated with voting a proxy outweighs the benefits derived from exercising the right to vote or the economic effect on shareholders interests or the value of the portfolio holding is indeterminable or insignificant.

In addition, the investment adviser will monitor situations that may result in a conflict of interest between the Funds shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund by maintaining a list of significant existing and prospective corporate clients. The investment advisers personnel responsible for reviewing and voting proxies on behalf of the Fund will report any proxy received or expected to be received from a company included on that list to the personal of the investment adviser identified in the Policies. If such personnel expects to instruct the Agent to vote such proxies in a manner inconsistent with the guidelines of the Policies or the recommendation of the Agent, the personnel will consult with members of senior management of the investment adviser to determine if a material conflict of interests exists. If it is determined that a material conflict does exist, the investment adviser will seek instruction on how to vote from the Special Committee.

Information on how the Fund voted proxies relating to portfolio securities during the most recent 12 month period ended June 30 is available (1) without charge, upon request, by calling 1-800-262-1122, and (2) on the Securities and Exchange Commissions website at http://www.sec.gov .

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Walter A. Row, Michael A. Allison and other Eaton Vance Management (EVM) investment professionals comprise the investment team responsible for the overall management of the Funds investments. Mr. Row and Mr. Allison are the portfolio managers responsible for the day-to-day management of EVMs responsibilities with respect to the Funds investment portfolio. Mr. Row is a Vice President and Head of Structured Equity Portfolios at EVM. He is a member of EVMs Equity Strategy Committee and co-manages other Eaton Vance registered investment companies. He joined Eaton Vances equity group in 1996. Mr. Allison is a Vice President of EVM and a co-portfolio manager for other Eaton Vance registered investment companies. He is a member of EVMs Equity Strategy Committee. He first joined Eaton Vances equity group in 2000.

Effective October 20, 2009, EVM internalized the management of the Funds options strategy, replacing Rampart Investment Management Company, Inc.

The following tables show, as of the Funds most recent fiscal year end, the number of accounts each portfolio manager managed in each of the listed categories and the total assets (in millions of dollars) in the accounts managed within each category. The table also shows the number of accounts with respect to which the advisory fee is based on the performance of the account, if any, and the total assets (in millions of dollars) in those accounts.

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Number			Number of — Accounts	Total Assets of
of All		Total Assets of	Paying a	Accounts Paying a
Accounts		All Accounts	Performance Fee	Performance Fee
Michael A. Allison
Registered Investment
Companies	8	$ 16,316.0	0	$ 0
Other Pooled Investment
Vehicles	16	$ 12,765.9	0	$ 0
Other Accounts	0	$ 0	0	$ 0
Walter A. Row, III
Registered Investment
Companies	10	$ 10,284.3	0	$ 0
Other Pooled Investment
Vehicles	0	$ 0	0	$ 0
Other Accounts	0	$ 0	0	$ 0

The following table shows the dollar range of Fund shares beneficially owned by each portfolio manager as of the Funds most recent fiscal year end.

	Dollar Range of Equity
	Securities Owned in the
Portfolio Manager	Fund
Walter A. Row	$ 10,001-$50,000
Michael A. Allison	None

Potential for Conflicts of Interest . It is possible that conflicts of interest may arise in connection with a portfolio managers management of the Funds investments on the one hand and investments of other accounts for which a portfolio manager is responsible on the other. For example, a portfolio manager may have conflicts of interest in allocating management time, resources and investment opportunities among the Fund and other accounts he or she advises. In addition, due to differences in the investment strategies or restrictions between the Fund and the other accounts, a portfolio manager may take action with respect to another account that differs from the action taken with respect to the Fund. In some cases, another account managed by a portfolio manager may compensate the investment adviser or sub-adviser based on the performance of the securities held by that account. The existence of such a performance based fee may create additional conflicts of interest for a portfolio manager in the allocation of management time, resources and investment opportunities. Whenever conflicts of interest arise, a portfolio manager will endeavor to exercise his or her discretion in a manner that he or she believes is equitable to all interested persons. EVM has adopted several policies and procedures designed to address these potential conflicts including: a code of ethics; and policies which govern the investment advisers trading practices, including among other things the aggregation and allocation of trades among clients, brokerage allocation, cross trades and best execution.

Compensation Structure for EVM

Compensation of EVMs portfolio managers and other investment professionals has three primary components: (1) a base salary, (2) an annual cash bonus, and (3) annual stock-based compensation consisting of options to purchase shares of EVCs nonvoting common stock and/or restricted shares of EVCs nonvoting common stock. EVMs investment professionals also receive certain retirement, insurance and other benefits that are broadly available to EVMs employees. Compensation of EVMs investment professionals is reviewed primarily on an annual basis. Cash bonuses, stock-based

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compensation awards, and adjustments in base salary are typically paid or put into effect at or shortly after the October 31st fiscal year end of EVC.

Method to Determine Compensation . EVM compensates its portfolio managers based primarily on the scale and complexity of their portfolio responsibilities and the total return performance of managed funds and accounts versus the benchmark(s) stated in the prospectus, as well as an appropriate peer group (as described below). In addition to rankings within peer groups of funds on the basis of absolute performance, consideration may also be given to relative risk-adjusted performance. Risk-adjusted performance measures include, but are not limited to, the Sharpe Ratio. Performance is normally based on periods ending on the September 30th preceding fiscal year end. Fund performance is normally evaluated primarily versus peer groups of funds as determined by Lipper Inc. and/or Morningstar, Inc. When a funds peer group as determined by Lipper or Morningstar is deemed by EVMs management not to provide a fair comparison, performance may instead be evaluated primarily against a custom peer group. In evaluating the performance of a fund and its manager, primary emphasis is normally placed on three-year performance, with secondary consideration of performance over longer and shorter periods. For funds that are tax-managed or otherwise have an objective of after-tax returns, performance is measured net of taxes. For other funds, performance is evaluated on a pre-tax basis. For funds with an investment objective other than total return (such as current income), consideration will also be given to the funds success in achieving its objective. For managers responsible for multiple funds and accounts, investment performance is evaluated on an aggregate basis, based on averages or weighted averages among managed funds and accounts. Funds and accounts that have performance-based advisory fees are not accorded disproportionate weightings in measuring aggregate portfolio manager performance.

The compensation of portfolio managers with other job responsibilities (such as heading an investment group or providing analytical support to other portfolios) will include consideration of the scope of such responsibilities and the managers performance in meeting them.

EVM seeks to compensate portfolio managers commensurate with their responsibilities and performance, and competitive with other firms within the investment management industry. EVM participates in investment-industry compensation surveys and utilizes survey data as a factor in determining salary, bonus and stock-based compensation levels for portfolio managers and other investment professionals. Salaries, bonuses and stock-based compensation are also influenced by the operating performance of EVM and its parent company. The overall annual cash bonus pool is based on a substantially fixed percentage of pre-bonus operating income. While the salaries of EVMs portfolio managers are comparatively fixed, cash bonuses and stock-based compensation may fluctuate significantly from year to year, based on changes in manager performance and other factors as described herein. For a high performing portfolio manager, cash bonuses and stock-based compensation may represent a substantial portion of total compensation.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

No such purchases this period.

Item 10. Submission of Matters to a Vote of Security Holders

No Material Changes.

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Item 11. Controls and Procedures

(a) It is the conclusion of the registrants principal executive officer and principal financial officer that the effectiveness of the registrants 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 has been recorded, processed, summarized and reported within the time period specified in the Commissions rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrants principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There have been no changes in the registrants internal controls over financial reporting during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting.

Item 12. Exhibits

(a)(1)	Registrants Code of Ethics Not applicable (please see Item 2).
(a)(2)(i)	Treasurers Section 302 certification.
(a)(2)(ii)	Presidents Section 302 certification.
(b)	Combined Section 906 certification.
(c)	Registrants notices to shareholders pursuant to Registrants exemptive order granting an
exemption from Section 19(b) of the 1940 Act and Rule 19b-1 thereunder regarding distributions
paid pursuant to the Registrants Managed Distribution Plan.

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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: November 12, 2010

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:
Barbara E. Campbell
Treasurer

Date: November 12, 2010

By:
Duncan W. Richardson
President

Date: November 12, 2010

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