Eaton Vance Short Duration Diversified Income Fund (NYSE: EVG) and Eaton Vance Limited Duration Income Fund (NYSE American: EVV) have declared significant revisions to their principal investment strategies, effective from October 17, 2025. These alterations aim to increase the flexibility of their investment approaches, reflecting the evolving market dynamics and the need for adaptability in investment strategies.
Key Changes to Investment Strategies
The adjustments will eliminate the existing 25% minimum investment requirement across each Fund’s designated investment categories. Additionally, the current restriction on weighted average credit quality will be lifted. For the Limited Duration Income Fund, the 10% cap on credit default swaps will also be rescinded. These changes are expected to allow both Funds to pursue a broader range of investment opportunities and enhance their ability to respond to market conditions. Future reports to shareholders will provide a comprehensive discussion of the revised investment objectives, policies, and associated risks.
Investors should be aware that shares of closed-end funds, like those from Eaton Vance, often trade at a price lower than their net asset value (NAV). Factors influencing this discrepancy can include the Fund’s distribution rates relative to similar offerings, market expectations regarding future distribution modifications, and overall investor confidence in the markets where each Fund invests. It is essential for potential investors to recognize that investing in these Funds carries inherent risks, including the possibility of losing the principal amount invested.
Investment Considerations
The Funds are described as not constituting a complete investment program, which signifies that they may not be suitable for every investor. Before making any investment decisions, it is crucial for prospective investors to thoroughly evaluate each Fund’s objectives, risks, fees, and expenses. This informational release is not intended as an offer to buy or sell shares of the Funds, emphasizing the importance of conducting independent research.
Moreover, forward-looking statements made in this announcement are subject to uncertainties, which may lead to actual results differing significantly from those anticipated. Investors are encouraged to approach these statements with caution. The Eaton Vance Funds, part of Morgan Stanley Investment Management, continue to provide resources and information about their performance and portfolio characteristics through their official website, eatonvance.com. For any inquiries, investors can contact their support line at (800) 262-1122.
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