Eaton Vance Risk-Managed Diversified Equity Income Fund Adds Kevin J. Amell To Portfolio Management Team And Modifies Options Strategy Implementation

BOSTON, Oct. 5, 2012 /PRNewswire/ -- Eaton Vance Management (EVM), investment adviser to Eaton Vance Risk-Managed Diversified Equity Income Fund (NYSE: ETJ), today announced the appointment of Kevin J. Amell as a portfolio manager of the Fund, joining current managers Walter A. Row III and Michael A. Allison in that role. Going forward, Mr. Row and Mr. Allison will continue to manage the Fund's common stock portfolio, while Mr. Amell will manage the Fund's options overlay program and collaborate with the other managers to direct the Fund's overall investment program. Mr. Amell joined EVM as an equity options trader in 2009. He was previously a senior trader at Numeric Investors and Jacobs Levy Equity Management.

Concurrent with Mr. Amell becoming a portfolio manager, the Fund is in the process of modifying the implementation of its "collared" options strategy, which consists of purchasing out-­of-the-money S&P 500 Index put options and selling out-of-the-money S&P 500 Index call options on all or substantially all of the value of the Fund's common stock portfolio. Purchasing index put options provides protection against loss of principal value during periods of market weakness and selling index call options generates premium income. Going forward, the Fund generally intends to purchase short-dated (generally 28-day) index put options and sell index call options of the same term, staggering roll dates across the options portfolio. EVM believes that, under normal market conditions, this should result in a more consistent level of market exposure and market protection than the historical implementation of the Fund's options strategy. There can be no assurance that the Fund's investment program as a whole or its options strategy will be successful.

The Fund is managed to achieve a primary objective of current income and gains and a secondary objective of capital appreciation. Relative to other equity income funds, the Fund seeks to provide less volatile returns and reduced exposure to loss of value during stock market declines. The Fund evaluates returns on an after-tax basis, seeking to minimize and defer shareholder federal income taxes. There can be no assurance that the Fund will achieve its objectives.

EVM believes that the Fund may be appropriate for investors seeking an investment vehicle that combines regular distributions, the use of risk management techniques to protect against loss of principal value in a stock market decline and potential for capital appreciation. An investment in the Fund may not be appropriate for all investors. Additional information about the Fund, including performance and portfolio characteristics, is available at www.eatonvance.com.

In a separate press release issued today, EVM disclosed the results to date of the Fund's share repurchase program initiated in August 2012 and announced that the Fund intends to maintain its quarterly distribution at the current rate of $0.279 per share at least through the end of 2012 and has no current plan to alter future distributions. The Fund's distribution rate may be affected by numerous factors, including changes in realized and projected equity market returns, option premiums, Fund performance 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 the Fund's distribution rate at a future time, notwithstanding current expectations.

The Fund currently makes distributions in accordance with a managed distribution plan. Distributions may include amounts characterized for federal income tax purposes as ordinary dividends (including qualified dividends), capital gain distributions and nondividend distributions, also known as return of capital distributions. A return of capital distribution may include, for example, a return of some or all of the money that an investor invested in Fund shares. With each distribution, the Fund issues a notice to shareholders and a press release containing information about the amounts and sources of the distribution and other related information. Notices and press releases for the last 24 months are available on the Eaton Vance website (http://funds.eatonvance.com/19a-Fund-Distribution-Notices.php). The amounts and sources of distributions reported in notices and press releases are only estimates and are not provided for tax reporting purposes. The Fund reports the character of distributions for federal income tax purposes for each calendar year on Form 1099-DIV.

The Fund's distributions in any period may be more or less than the net return earned by the Fund on its 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 its net asset value to erode. Investors should not draw any conclusions about the Fund's investment performance from the amount of its distribution or from the terms of its managed distribution plan.

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 $192.9 billion in assets as of July 31, 2012, offering individuals and institutions a broad array of investment products 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 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. The Fund is not a complete investment program and you may lose money investing in the Fund. An investment in the Fund may not be appropriate for all investors. Before investing, prospective investors should consider carefully the 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 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, in some cases beyond the Fund's control, which could cause actual results to differ materially from those set forth in the forward-looking statements.

SOURCE Eaton Vance Management