Eaton Vance Declares Early Monthly Distributions and Special Distributions for Certain Eaton Vance Closed-End Funds
- Eaton Vance is accelerating the January distributions for each Fund and paying a special distribution to meet 2023 distribution requirements for federal excise tax purposes.
- The Distribution Rate at Market Price is based on the Fund's most recent regular distribution per share (annualized) divided by the Fund’s market price at the end of the period.
- Eaton Vance applies in-depth fundamental analysis to the active management of equity, income, alternative, and multi-asset strategies.
- Shares of closed-end funds often trade at a discount from their net asset value, posing investment risk, including possible loss of principal invested.
- Investors may lose money investing in a Fund, and an investment in a Fund may not be appropriate for all investors.
Insights
Eaton Vance's announcement of distributions, including a special distribution for the Eaton Vance Floating-Rate Income Trust, is a critical piece of information for current and potential investors. The timing of distributions and the special distribution are indicative of the company's need to meet federal excise tax requirements, which underscores the importance of tax management in fund operations.
Investors should note the impact of distributions on share prices, as they often lead to adjustments in market price. For those employing income-focused investment strategies, the distribution rates provide insight into the fund's yield and the sustainability of income from their investments. Additionally, the mention of distributions potentially comprising amounts from other sources than net investment income could signal a need for investors to assess the quality of the distributions.
Long-term effects on the stock market could include adjustments in the perceived value of Eaton Vance's funds, especially if the distributions reflect changes in performance or management strategy. Investors should continuously monitor such announcements to inform their investment decisions in relation to market volatility and fund performance.
For individuals and entities with tax-advantaged investment accounts, it's important to understand the tax characteristics of fund distributions. Eaton Vance's announcement that the final determination of tax characteristics will occur after year-end is a reminder that investors should be prepared for potential tax implications. Knowledge of whether distributions are classified as income, capital gains, or return of capital can significantly affect tax planning.
Moreover, Eaton Vance's active management approach, with an emphasis on ongoing risk and tax management, may appeal to investors seeking strategies that are responsive to changing tax laws and market conditions. It's crucial for investors to align their investment strategies with their tax situations and announcements like this one provide an opportunity to review and adjust where necessary.
From a broader perspective, the firm's tax management strategies can contribute to the overall efficiency of the funds, potentially affecting their attractiveness to tax-sensitive investors and, consequently, the demand for shares in the market.
The distribution announcement by Eaton Vance provides insight into the fund's current financial health and its approach to shareholder value distribution. The special distribution, in particular, may be a strategic move to optimize the fund's tax position, which could be an attractive point for investors looking for funds with proactive financial strategies.
Investors should consider the implications of distribution frequency and size on their investment strategy, as these factors can influence the total return on investment. It's also worth noting that the fund's ability to maintain or increase distributions over time can be a sign of strength and stability, which is often sought after in the selection of income-generating investments.
Furthermore, the fund's performance, as it relates to market price and net asset value, can affect investor sentiment and fund inflows or outflows. Understanding the relationship between distributions and market price dynamics can offer investors a competitive edge in making informed decisions.
Declaration – 12/18/2023 Ex-Date – 12/27/2023 Record – 12/28/2023 Payable – 1/15/2024 |
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Fund |
Ticker |
Monthly
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Special
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Total
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Eaton Vance Floating-Rate Income Trust |
EFT |
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Eaton Vance Senior Floating-Rate Trust |
EFR |
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Eaton Vance Senior Income Trust |
EVF |
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The declaration, record and payment dates of the regular January distributions have been accelerated for each Fund and a special distribution is being paid to shareholders of Eaton Vance Floating-Rate Income Trust to allow each Fund to meet its 2023 distribution requirements for federal excise tax purposes. Each Fund expects to declare its next regular monthly distribution at the beginning of February 2024 for payment in February 2024.
The Distribution Rate at Market Price is based on the Fund's most recent regular distribution per share (annualized) divided by the Fund’s market price at the end of the period. Fund distributions may be affected by numerous factors, including changes in Fund performance, the cost of financing for Funds that employ leverage, portfolio holdings, realized and projected returns, and other factors. There can be no assurance that an unanticipated change in market conditions or other unforeseen factors will not result in a change in a Fund’s distributions at a future time.
A portion of the distributions may be comprised of amounts from sources other than net investment income. If that is the case, you will be notified in writing. Further information will be available prior to the 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.
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. With a history dating back to 1924, Eaton Vance is headquartered in
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. 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 the Fund’s investment objective, risks, charges and expenses.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231218644991/en/
Investor Contact: (800) 262-1122
Source: Eaton Vance
FAQ
What are the details of the distributions announced by Eaton Vance (EV) closed-end funds?
Why are the regular January distributions being accelerated for each Fund by Eaton Vance (EV)?
What factors may affect the Fund distributions of Eaton Vance (EV) closed-end funds?
What are the investment risks associated with shares of closed-end funds like those of Eaton Vance (EV)?
What type of investment program is Eaton Vance (EV) closed-end funds, and what should prospective investors consider before investing?
