Certain Eaton Vance Municipal Closed-End Funds Announce Distribution Updates
December 21 2023 - 4:01PM
Business Wire
The Eaton Vance municipal closed-end funds (each, a “Fund,” and
collectively, the “Funds”) listed below announce increases to their
monthly distribution rates. The Fund’s increased distribution rates
will be effective beginning with the January 2024 distribution.
These distribution rate increases range between approximately 22%
and 41% relative to each Fund’s current distribution rates and are
intended to help support secondary market trading of Fund shares
and improve each Fund’s discount to net asset value. To maintain
the new monthly distribution rates outlined below, each Fund may
distribute more than its net investment income and net realized
capital gains and, therefore, distributions may include a return of
capital.
Monthly Distribution Per
Share
Fund Name
Ticker
Current
Amount
New
Amount
Percentage
Change
Eaton Vance New York Municipal Bond
Fund
ENX
$0.0297
$0.0394
32.7%
Eaton Vance California Municipal Bond
Fund
EVM
$0.0292
$0.0383
31.2%
Eaton Vance California Municipal Income
Trust
CEV
$0.0342
$0.0434
26.9%
Eaton Vance Municipal Bond Fund
EIM
$0.0333
$0.0468
40.5%
Eaton Vance Municipal Income Trust
EVN
$0.0375
$0.0461
22.9%
Eaton Vance Municipal Income 2028 Term
Trust
ETX
$0.0583
$0.0782
34.1%
Each Fund intends to make regular monthly cash distributions to
its common shareholders (stated in terms of a fixed amount per
common share dividend distribution rate). Each Fund’s ability to
maintain its declared distribution amount will depend on a number
of factors, including: the amount and stability of investment
income earned by the Fund; the performance of the Fund’s
investments; the Fund’s expenses, including the cost of financing
for Funds that employ leverage; underlying market conditions;
realized and projected returns; and other factors. There can be no
assurance that an unanticipated change in market conditions or
other factors will not result in a change in a Fund’s distributions
at a future time.
Shareholders should not draw any conclusions about a Fund’s
investment performance from the amount of any monthly distribution.
Each Fund’s distributions may be comprised of amounts characterized
for U.S. federal income tax purposes as tax-exempt income,
qualified and non-qualified ordinary dividends, capital gains and
non-dividend distributions, also known as return of capital. A Fund
may distribute more than its net investment income and net realized
capital gains and, therefore, a distribution may include a return
of capital. With each distribution, a Fund will issue a notice to
its common shareholders containing information about the amount and
sources of the distribution and other related information. Further
information regarding Fund distributions will also be available
prior to any applicable payment date at funds.eatonvance.com. The
final determination of tax characteristics of each Fund’s
distributions will occur after the end of the year, at which time
it will be reported to the shareholders. Shareholders should not
assume that the source of any distribution from a Fund is net
income or profit, and the Fund’s distributions should not be used
as a measure of performance or confused with “yield” or
“income.”
Eaton Vance applies in-depth fundamental analysis to the active
management of equity, income, alternative and multi-asset
strategies. Eaton Vance’s investment teams follow time-tested
principles of investing that emphasize ongoing risk management, tax
management (where applicable) and the pursuit of consistent
long-term returns. The firm’s investment capabilities encompass the
global capital markets. Eaton Vance is a part of Morgan Stanley
Investment Management, the asset management division of Morgan
Stanley.
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 a 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. 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. Before investing, prospective investors should
consider carefully a Fund’s investment objective, risks, charges
and expenses.
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