BOSTON, April 24, 2019 /PRNewswire/ -- The Board of
Trustees of each of Eaton Vance Municipal Bond Fund (NYSE: EIM),
Eaton Vance California Municipal Bond Fund (NYSE: EVM) and Eaton
Vance New York Municipal Bond Fund (NYSE: ENX) (each a "Fund" and,
collectively, the "Funds") has approved changes to each Fund's
investment objective and investment policies in order to permit
each Fund to invest up to 20% of its net assets in municipal
obligations rated below investment grade and to permit each Fund to
invest up to 20% of its net assets in municipal obligations on
which the interest may be subject to the alternative minimum tax
("AMT") ("AMT bonds"), as described below. Each of the foregoing
changes will be effective immediately.
Investment Objectives. Each Fund's investment objective
has been revised to eliminate references to the AMT, however, each
Fund will continue to invest at least 80% of its net assets in
municipal obligations which are exempt from the AMT. Each Fund's
current and revised investment objective is set forth below:
Fund
|
Current
Objective
|
Revised
Objective
|
EIM
|
To provide current
income exempt from federal income tax, including AMT
|
To provide current
income exempt from federal income tax
|
EVM
|
To provide current
income exempt from federal income tax, including AMT, and
California personal income tax
|
To provide current
income exempt from federal income tax and California personal
income tax
|
ENX
|
To provide current
income exempt from federal income tax, including the AMT and New
York State and New York City personal income tax
|
To provide current
income exempt from federal income tax and New York State and
New York City personal income tax
|
Investment Policies. Pursuant to its revised investment
policies, each Fund may invest up to 20% of its net assets in
municipal obligations rated BBB/Baa or below (or unrated
obligations deemed by the Fund's adviser, Eaton Vance Management
("Eaton Vance"), to be of equivalent quality), provided that not
more than 15% of its net assets may be invested in municipal
obligations rated below B (or unrated obligations deemed by Eaton
Vance to be of equivalent quality) and may invest up to 20% of its
net assets in AMT bonds. Each Fund's investment policy to seek at
all times to avoid investments in AMT bonds has been
eliminated.
Each Fund's policy to invest at least 80% of its net assets in
municipal obligations, the interest on which is exempt from federal
income tax, including AMT, and for EVM and ENX the state and/or
local taxes noted above, and that are rated A or better is
unchanged.
Additional information about the changes to each Fund's
investment objective and investment policies is available online at
funds.eatonvance.com
The Fund's investment adviser is Eaton Vance Management, a
subsidiary of Eaton Vance Corp. Eaton Vance Corp. (NYSE: EV)
provides advanced investment strategies and wealth management
solutions to forward-thinking investors around the world. Through
principal investment affiliates Eaton Vance Management, Parametric,
Atlanta Capital, Hexavest and Calvert, the Company offers a
diversity of investment approaches, encompassing bottom-up and
top-down fundamental active management, responsible investing,
systematic investing and customized implementation of
client-specified portfolio exposures. As of March 31, 2019, Eaton Vance had consolidated
assets under management of $457.6
billion. For more information, visit eatonvance.com.
The information contained herein is provided for informational
purposes only and does not constitute a solicitation of an offer to
buy or sell Fund shares. Shares of each Fund are available for
purchase and sale only through secondary market trading on an
exchange or alternative trading venue.
There is no assurance that a Fund will achieve its investment
objective. Investments rated below investment grade and comparable
unrated investments (sometimes referred to as "junk") have
speculative characteristics because of the credit risk associated
with their issuers. Changes in economic conditions or other
circumstances typically have a greater effect on the ability of
issuers of lower rated investments to make principal and interest
payments than they do on issuers of higher rated investments. An
economic downturn generally leads to a higher non-payment rate, and
a lower rated investment may lose significant value before a
default occurs. Lower rated investments typically are subject to
greater price volatility and illiquidity than higher rated
investments.
Interest on certain municipal obligations in which each Fund may
invest, such as certain private activity bonds, is included as an
item of tax preference in determining the amount of a taxpayer's
alternative minimum taxable income. To the extent that a Fund
receives income from such municipal obligations, a portion of the
dividends paid by the Fund, although exempt from regular federal
income tax, will be taxable to common shareholders to the extent
that their tax liability is determined under the alternative
minimum tax ("AMT"). Furthermore, exempt-interest dividends are
included in determining what portion, if any, of a person's social
security and railroad retirement benefits will be includible in
gross income subject to regular federal income tax. Each Fund will
annually provide a report indicating the percentage of the Fund's
income attributable to municipal obligations subject to the AMT.
Each Fund may not be suitable for investors subject to the AMT.
Each Fund may engage in other investment practices that may involve
additional risks.
Shares of closed-end funds often trade at a discount from their
net asset value. The market price of Fund shares may vary from net
asset value 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. A
Fund is not a complete investment program and investors may lose
money investing in a Fund. An investment in a Fund may not be
appropriate for all investors. Before investing, an investor should
consider carefully a Fund's investment objective, risks, charges
and expenses.
Statements in this press release that are not historical
facts are 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 which are, in some cases, 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