BOSTON, May 7, 2021 /PRNewswire/ -- Eaton Vance Short
Duration Diversified Income Fund (NYSE: EVG) (the "Fund") held a
special meeting of shareholders earlier today (the "Special
Meeting"). At the Special Meeting, Fund shareholders approved
a new investment advisory agreement with Eaton Vance Management,
the Fund's investment adviser (the "New Agreement"). The vote
tabulation, as certified by the Fund's proxy tabulator, AST Fund
Solutions LLC, will be published in the Fund's next report to
shareholders.
Conditional Tender Offer. As previously announced
on March 9, 2021, the Board of
Trustees of the Fund authorized a conditional cash tender offer for
up to 25% of the Fund's outstanding common shares at a price per
share equal to 99% of the Fund's net asset value ("NAV") per share
as of the close of regular trading on the New York Stock Exchange
on the date the tender offer expires (the "Tender Offer").
The Tender Offer is conditional on Fund shareholders' approving the
New Agreement, which this condition has now been met. The
terms and conditions of the Tender Offer will be set forth in the
associated Fund offering materials and additional press
releases. If the number of shares tendered in the Tender
Offer exceeds 25% of the Fund's outstanding common shares, the Fund
will purchase shares from tendering shareholders on a pro rata
basis (disregarding fractional shares). Accordingly, there is
no assurance that the Fund will purchase all of a shareholder's
tendered common shares in the Tender Offer.
Conditional Distribution Rate Increase. The Fund
also announced on March 9, 2021 that,
if shareholders approved the New Agreement, it would increase its
regular monthly distribution on common shares to an annual rate
equal to 10% of the Fund's then-current NAV. Because this
condition has now been met, the Fund will increase its regular
monthly distribution on common shares accordingly beginning in June
2021. Fund distributions may include amounts from sources
other than net investment income. When that is estimated to
be the case, shareholders will be notified on a monthly
basis. The final determination of the tax character of Fund
distributions will occur after the end of each calendar year, at
which time that determination will be reported to
shareholders. Fund distributions in any period may be more or
less than the net return earned by the Fund on investments, and
therefore should not be used as a measure of performance or
confused with "yield" or "income." Distributions in excess of Fund
returns will cause the Fund's net assets and NAV per share to
decline.
About the Fund
Eaton Vance Corp. was acquired by Morgan Stanley on March 1, 2021. Its Eaton Vance Management,
Parametric, Atlanta Capital and Calvert investment affiliates are
now part of Morgan Stanley Investment Management, the asset
management division of Morgan Stanley.
Except pursuant to a tender offer, common shares of the Fund are
available for purchase or sale only through secondary market
trading at their current market price. Shares of closed-end funds
often trade at a discount from their NAV. The market price of Fund
shares may vary from NAV based on factors affecting the supply and
demand for shares, such as Fund distribution rates relative to
similar investments, investors' expectations for future
distribution changes, the clarity of the Fund's investment strategy
and future return expectations, and investors' confidence in the
underlying markets in which the Fund invests. Fund shares are
subject to investment risk, including possible loss of principal
invested. Shares of the Fund are not FDIC-insured and are not
deposits or other obligations of, or guaranteed by, any bank. The
Fund is not a complete investment program and you may lose money
investing therein. An investment in the Fund may not be appropriate
for all investors. Before investing, prospective investors should
consider carefully the Fund's investment objective, strategies,
risks, charges and expenses.
This announcement is not a recommendation, an offer to purchase
or a solicitation of an offer to sell shares of the Fund. The
Fund has not commenced the Tender Offer described in this
release. The Tender Offer will be made only if the condition
described above is satisfied, and only by an offer to purchase, a
related letter of transmittal and other documents filed with the
SEC as exhibits to a tender offer statement on Schedule TO, with
all such documents available on the SEC's website at
www.sec.gov. For the Tender Offer, the Fund will also make
available to shareholders without charge the offer to purchase and
the letter of transmittal. Shareholders should read these
documents carefully, as they would contain important information
about the Tender Offer.
This press release is for informational purposes only and is
not intended to, and does not, constitute an offer to purchase or
sell shares of the Fund. Additional information about the Fund,
including performance and portfolio characteristic information, is
available at eatonvance.com.
Statements in this press release that are not historical
facts may be forward-looking statements, as defined by the U.S.
securities laws. You should exercise caution in interpreting and
relying on forward-looking statements because they are subject to
uncertainties and other factors that may be beyond the Fund's
control and could cause actual results to differ materially from
those set forth in the forward-looking statements.
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SOURCE Eaton Vance Management