BOSTON, Oct. 28, 2015 /PRNewswire/ -- Eaton Vance
Tax-Managed Diversified Equity Income Fund (NYSE: ETY) and Eaton
Vance Tax-Managed Global Diversified Equity Income Fund (NYSE: EXG)
("Global Fund"), each a diversified closed-end investment company,
(each a "Fund" and together, the "Funds") have modified their
policies relating to use of derivatives and Global Fund has
modified its policy relating to investing in securities of non-U.S.
issuers.
Each Fund invests in a diversified portfolio of common stocks
and writes (sells) index call options with respect to a portion of
the value of its common stock portfolio to generate current cash
flow from the options premium received. In seeking its
primary objective of current income and gains, each Fund may engage
in dividend capture trading. In a dividend capture trade, a
Fund buys a stock prior to its ex-dividend date and sells the stock
on or after the ex-dividend date. Dividend capture trading
can result in a Fund having more or less exposure to individual
sectors and/or markets than would otherwise apply. Each Fund
has modified its investment policies to permit broader use of
derivatives, principally seeking to manage exposure to certain
sectors and/or markets in connection with its use of dividend
capture trading. Each Fund expects primarily to buy and sell
equity index futures contracts for this purpose, but may also
engage in other types of derivatives to manage such exposures.
Each Fund may also use derivatives for other purposes, such
as hedging, to enhance return, or as a substitute for the purchase
or sale of securities or currencies. Other permitted
derivatives include futures contracts on securities, non-equity
indices and currencies, options on futures contracts, equity and
interest rate swaps, covered short sales, forward sales of stocks,
and forward currency exchange contracts. Each Fund may invest
in derivatives without limitation and use of derivatives may be
extensive. Previously each Fund's use of derivatives (other
than index call options and options on index futures contracts) was
limited to 20% of its total assets, no more than 10% of total
assets could be so invested for non-hedging purposes.
Under normal market conditions, Global Fund currently invests at
least 40% of its total assets in securities of non-U.S. issuers
(unless the adviser deems market conditions and/or company
valuations less favorable to non-U.S. companies, in which case
Global Fund will invest at least 30% of its total assets in
securities of non-U.S. companies). Global Fund also normally
invests in issuers located in at least three countries including
the United States. Pursuant to the revised policy, under
normal market conditions, Global Fund will invest (i) at least 30%
of its total assets in securities of non-U.S. issuers, including
issuers located in emerging market countries and (ii) in issuers
located in at least five different countries (including
the United States). Issuers
will be considered to be located outside the United States if domiciled in and tied
economically to one or more non-U.S. countries, irrespective of
whether their securities trade in the U.S.
The Funds are managed by Eaton Vance Management, a subsidiary of
Eaton Vance Corp. (NYSE: EV). Based in Boston, Eaton Vance is one of the oldest
investment management firms in the United
States, with a history dating back to 1924. Eaton Vance and
its affiliates managed $298.9 billion
in assets as of September 30, 2015,
offering individuals and institutions a broad array of investment
strategies and wealth management solutions. For more
information about Eaton Vance, visit www.eatonvance.com.
Fund performance is sensitive to stock market volatility.
Changes in the dividend policies of companies could make it
difficult to provide a predictable level of income. Investments in
foreign instruments or currencies can involve greater risk and
volatility than U.S. investments because of adverse market,
economic, political, regulatory, geopolitical or other conditions.
Dividend capture strategies may result in higher portfolio
turnover, increased trading costs and potential for capital loss or
gains. When interest rates rise, the value of preferred securities
will generally decline. Derivative instruments can be highly
volatile, result in economic leverage (which can magnify losses),
and involve risks in addition to the risks of the underlying
instrument on which the derivative is based, such as counterparty,
correlation and liquidity risk. If a counterparty is unable to
honor its commitments, the net asset value of Fund shares may
decline and/or the Fund could experience delays in the return of
collateral or other assets held by the counterparty.
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. Common shares of the Fund are only
available for purchase and sale at current market price on a stock
exchange. There is no assurance that the Fund will achieve its
investment objective. Shares of closed-end funds often trade at a
discount from their net asset value. 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.
Investors should review and consider carefully the Fund's
investment objective, risks, charges and expenses.
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SOURCE Eaton Vance Management