Eaton Vance 2021 Target Term Trust Announces Liquidation Details

Rhea-AI Summary

Eaton Vance 2021 Target Term Trust (NYSE: EHT) announced plans for liquidation, set to occur around July 1, 2021. Share trading will continue until June 25, 2021, with suspension on June 28, 2021. The Trust will not issue its regular monthly distribution for June 2021, and all undistributed income is expected in the final liquidating distribution. As of May 28, 2021, the Trust's NAV was $9.85 per share, with a cumulative total return of 5.04% annually. Investors should consult tax advisors for potential tax implications from the liquidation.

Positive

• Trust aims to return original NAV of $9.85 per share upon liquidation.
• Cumulative total return at NAV of 5.04% annually realized to date.

Negative

• Regular monthly distribution for June 2021 will not be declared.
• Investors may incur tax gains or losses from liquidation, affecting net returns.

BOSTON, June 1, 2021 /PRNewswire/ -- Eaton Vance 2021 Target Term Trust (NYSE: EHT) (the "Trust") announced today new details concerning its liquidation. Consistent with its investment objectives and organizational documents, the Trust plans to terminate its existence and liquidate on or about July 1, 2021.

As the Trust approaches liquidation, its common shares will continue trading on the New York Stock Exchange through Friday, June 25, 2021 and will be suspended from trading before the open of trading on Monday, June 28, 2021. The Trust will not declare its regular monthly distribution in June 2021 and expects that all undistributed net income will be included in the final liquidating distribution.  The Trust anticipates making its final liquidating distribution on or about July 1, 2021.

As previously announced, the Trust entered its wind-up period in anticipation of its termination. Leading up to the final distribution date, as the Trust's portfolio securities continue to mature and are sold, the Trust may further deviate from its investment objectives and policies, and its portfolio will continue to transition into high quality, short-term securities and/or cash and cash equivalents.

The investment objective to return the Trust's original $9.85 net asset value ("NAV") per share to shareholders at termination is not a guarantee and is dependent on a number of factors, including the cumulative level of income retained in relation to cumulative portfolio gains net of losses. Over the life of the Trust through May 28, 2021, the Trust has realized cumulative total return at NAV of 5.04% annually.  As of May 28, 2021, the Trust's NAV was $9.85 per share.

Shareholders may recognize a gain or loss for U.S. tax purposes as a result of the liquidation. Eaton Vance Management does not provide tax advice; investors should consult a professional tax advisor regarding their specific tax situation.

Eaton Vance Corp. was acquired by Morgan Stanley on March 1, 2021. Its former Eaton Vance Management, Parametric, Atlanta Capital and Calvert investment affiliates are now 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 Trust shares may vary from net asset value based on factors affecting the supply and demand for shares, such as Trust distribution rates relative to similar investments, investors' expectations for future distribution changes, the clarity of the Trust's investment strategy and future return expectations, and investors' confidence in the underlying markets in which the Trust invests. Trust shares are subject to investment risk, including possible loss of principal invested. The Trust is not a complete investment program and you may lose money investing therein. An investment in the Trust may not be appropriate for all investors. Before investing, prospective investors should consider carefully the Trust's investment objective, strategies, risks, charges and expenses.

This press release is for informational purposes only and is not intended to, and does not, constitute an offer to purchase or sell shares of the Trust. Additional information about the Trust, including performance and portfolio characteristic information, is available at eatonvance.com.

Statements in this press release that are not historical facts may be forward-looking statements, as defined by the U.S. securities laws. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to uncertainties and other factors that may be beyond the Trust's control and could cause actual results to differ materially from those set forth in the forward-looking statements.

 

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SOURCE Eaton Vance Management

FAQ

What is the liquidation plan for Eaton Vance 2021 Target Term Trust (EHT)?

Eaton Vance 2021 Target Term Trust (EHT) plans to liquidate around July 1, 2021.

When will trading of EHT shares be suspended?

Trading of EHT shares will be suspended before the market opens on June 28, 2021.

What is the current net asset value (NAV) of EHT?

As of May 28, 2021, the NAV of EHT is $9.85 per share.

Will Eaton Vance 2021 Target Term Trust declare a distribution in June 2021?

No, EHT will not declare its regular monthly distribution for June 2021.

What should investors consider regarding taxes from EHT's liquidation?

Investors should consult a tax advisor, as they may recognize a gain or loss for U.S. tax purposes from the liquidation.