Eaton Vance Equity Option Closed-End Funds Announce Continuation of Share Repurchase Program, Program Results and Intent to Maintain Current Fund Distributions

BOSTON, Oct. 4, 2013 /PRNewswire/ -- The Boards of Trustees of the below-listed Eaton Vance equity option closed-end funds (Funds) have approved the continuation of each Fund's share repurchase program.  In approving the continuation of the program, the Board authorized the Funds to repurchase up to 10% of each Fund's common shares outstanding as of September 30, 2013 in open market transactions at a discount to net asset value (NAV).  Under the previous authorization, each Fund could repurchase up to 10% of its common shares outstanding as of August 8, 2012 at a discount to NAV in the open market.  For the Funds that have repurchased shares to date, the terms of the reauthorization increase the number of shares available for repurchase.  The Funds are:

 

Eaton Vance Enhanced Equity Income Fund (NYSE: EOI)

Eaton Vance Enhanced Equity Income II Fund (NYSE: EOS)

Eaton Vance Tax-Managed Buy-Write Income Fund (NYSE: ETB)

Eaton Vance Tax-Managed Buy-Write Opportunities Fund (NYSE: ETV)

Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund (NYSE: ETW)

Eaton Vance Tax-Managed Diversified Equity Income Fund (NYSE: ETY)

Eaton Vance Tax-Managed Global Diversified Equity Income Fund (NYSE: EXG)

Eaton Vance Risk-Managed Diversified Equity Income Fund (NYSE: ETJ)

 

Results of Repurchase Program: From August 2012, when the Funds began repurchasing shares, until October 3, 2013, they have purchased the number and percentage of their outstanding shares, seen changes in price and discount to NAV, and impact to per share NAV as indicated in the table below:

Fund

No. Shares

Repurchased

% Shares

Repurchased[1]

Beginning

Market Price[2]

10/3/13

Market

Price

%  Return

at Market

Price[3]

Beginning 

NAV

Discount[2]

10/3/13

NAV

Discount

Discount

Change

Impact of

Repurchases

on NAV per

Share[4]

EOI

777,000

1.94%

$10.82

$12.11

22.26%

-13.23%

-9.49%

3.74%

+$0.030

EOS

837,700

1.73%

$10.97

$11.84

18.27%

-12.31%

-9.62%

2.69%

+$0.025

ETV

202,000

0.32%

$12.98

$13.02

13.12%

-11.46%

-8.18%

3.28%

+$0.005

ETW

786,800

0.73%

$11.00

$11.48

17.61%

-13.93%

-9.39%

4.54%

+$0.012

ETY

2,749,900

1.80%

$9.28

$10.33

22.19%

-14.23%

-10.41%

3.82%

+$0.027

EXG

3,945,000

1.29%

$8.51

$9.58

24.01%

-14.64%

-9.02%

5.62%

+$0.018

ETJ

4,292,000

5.88%

$10.31

$10.93

16.84%

-14.93%

-10.12%

4.81%

+$0.085

For Funds that have repurchased shares, discounts have narrowed by an average of 4.07% over the above periods, while discounts of closed-end funds included in the Morningstar U.S. Covered Call group (excluding the Funds) have widened by an average of 3.16% over corresponding periods. 

Each Fund's repurchase program is implemented on a discretionary basis under the direction of Eaton Vance Management (EVM), the Funds' investment adviser. There can be no assurance that shares will be repurchased for a Fund in the same or similar amount going forward, or that the market price of Fund shares, either absolutely or relative to NAV, will increase as a result of the program.  Regulatory requirements and other legal considerations may limit the Fund's ability to repurchase shares. Each Fund's repurchase activity will be disclosed in its shareholder reports for the relevant fiscal periods.

Intention to Maintain Current Distributions: Based on current estimates of return, each Fund intends to continue paying its regular monthly distribution at the current rate indicated in the table below at least through the end of 2013, and has no current plans to alter future distributions.  A Fund's distribution rate may be affected by numerous factors, including equity market returns, option premiums, the performance of the managers and other factors.  There can be no assurance that an unanticipated change in market circumstances or other unforeseen factors will not result in a change in a Fund's distribution rate at a future time, notwithstanding current expectations.

 

Fund

Current

Distribution

Per Share[5]

Distribution

Rate at

NAV[6]

Distribution

Rate at

Market Price[6]

EOI

$0.0864

7.75%

8.56%

EOS

$0.0875

8.02%

8.87%

ETB

$0.1080

8.30%

9.01%

ETV

$0.1108

9.38%

10.21%

ETW

$0.0973

9.22%

10.17%

ETY

$0.0843

8.77%

9.79%

EXG

$0.0813

9.26%

10.18%

ETJ

$0.0930

9.18%

10.21%

 

Additional information about the Funds, including performance and portfolio characteristic information, is available at www.eatonvance.com.  Information about Fund repurchase activity also is included in Fund shareholder reports.

EVM is a subsidiary of Eaton Vance Corp. (NYSE: EV), one of the oldest investment management firms in the United States, with a history dating back to 1924.  Eaton Vance and its affiliates managed $268.8 billion in assets as of July 31, 2013, offering individuals and institutions a broad array of investment strategies and wealth management solutions.  The Company's long record of providing exemplary service, timely innovation and attractive returns through a variety of market conditions has made Eaton Vance the investment manager of choice for many of today's most discerning investors.  For more information about Eaton Vance, visit www.eatonvance.com.

Shares of closed-end funds often trade at a discount from their NAV.  The market price of Fund shares can be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions.  Fund shares are subject to investment risk, including possible loss of principal invested.  No Fund is a complete investment program and you may lose money investing in a Fund.  An investment in a Fund may not be appropriate for all investors.  

Statements in this press release that are not historical facts are forward-looking statements as defined by the United States 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.

[1] Based on shares outstanding at repurchase program inception.

[2] A Fund's Beginning Market Price and Beginning NAV Discount are as of the close of the market on the business day preceding its first share repurchase.  To date, ETB has not repurchased shares.  On October 3, 2013, its NAV Discount was -7.94%.

[3] % Return at Market Price reflects the change in the market price of Fund shares plus any distributions paid during the period. Past performance is no guarantee of future results.

[4] This is the accretion each Fund realized to its NAV from repurchasing its shares at a discount.

[5] The Funds currently make distributions in accordance with a managed distribution plan ("plan"). Distributions may include net investment income, net realized capital gains and/or return of capital (which may in some cases represent net unrealized capital gains). A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with 'yield' or 'income.'  Historically the Fund's distributions have included a significant return of capital.  With each distribution, the Fund issues a notice to shareholders and a press release containing information about the amount and sources of the distribution and other related information.

[6] Distribution Rate at NAV and Market Price is calculated by dividing the last distribution paid per share (annualized) by NAV or market price, respectively, on October 3, 2013.  The Fund's NAV and distribution rate will vary.

 

SOURCE Eaton Vance Management



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