{"id":454283,"date":"2021-03-09T16:59:48","date_gmt":"2021-03-09T21:59:48","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=454283"},"modified":"2021-03-09T16:59:48","modified_gmt":"2021-03-09T21:59:48","slug":"eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting\/","title":{"rendered":"Eaton Vance Short Duration Diversified Income Fund Announces Conditional Tender Offer, Conditional Distribution Rate Increase And Special Shareholder Meeting"},"content":{"rendered":"<div class=\"xn-newslines\">\n<p class=\"xn-distributor\">PR Newswire<\/p>\n<\/p><\/div>\n<div class=\"xn-content\">\n<p>\n        <span class=\"xn-location\">BOSTON<\/span>, <span class=\"xn-chron\">March 9, 2021<\/span> \/PRNewswire\/ &#8212;\u00a0Eaton Vance Short Duration Diversified Income Fund (NYSE: EVG) (the &#8220;Fund&#8221;) today announced that its Board of Trustees (the &#8220;Board&#8221;) has taken the actions described below.<\/p>\n<p>\n        <i>Conditional Tender Offer.<\/i>\u00a0 The Board has authorized a conditional cash tender offer for up to 25% of the Fund&#8217;s outstanding common shares at a price per share equal to 99% of the Fund&#8217;s net asset value per share as of the close of regular trading on the New York Stock Exchange on the date the tender offer expires.\u00a0 The tender offer is conditioned on shareholder approval of a new investment advisory agreement with Eaton Vance Management (&#8220;EVM&#8221;), the Fund&#8217;s investment adviser, at the upcoming special meeting of shareholders discussed below. \u00a0<\/p>\n<p>Additional terms and conditions of the tender offer will be set forth in the associated Fund offering materials and additional press releases, as applicable.\u00a0 If the number of shares tendered in the tender offer exceeds the maximum amount of the tender offer, the Fund will purchase shares from tendering shareholders on a pro rata basis (disregarding fractional shares). Accordingly, there is no assurance that the Fund will purchase all of a shareholder&#8217;s tendered common shares in the tender offer.\u00a0 The Fund may determine not to accept shares tendered in the tender offer under various circumstances, as will be set forth in the offering materials.\u00a0 <\/p>\n<p>\n        <i>Conditional Distribution Rate Increase.<\/i>\u00a0 The Fund also announced today that, if shareholders approve the new investment advisory agreement at the upcoming special meeting of shareholders discussed below, it will increase its regular monthly distribution on common shares to an annual rate equal to 10 percent of the Fund&#8217;s then-current net asset value (<span class=\"xn-money\">$0.109<\/span> per share as of <span class=\"xn-chron\">March 2, 2021<\/span>), representing an increase of approximately 45 percent from the <span class=\"xn-chron\">March 2021<\/span> distribution of <span class=\"xn-money\">$0.075<\/span> per share.\u00a0 The distribution increase will commence with the first monthly distribution announced following shareholder approval of the new investment advisory agreement.\u00a0 By raising the Fund&#8217;s regular monthly distribution, the Board seeks to enhance long-term shareholder value.<\/p>\n<p>The Fund&#8217;s distributions may include amounts from sources other than net investment income. \u00a0When that is the case, shareholders will be notified. \u00a0The final determination of the tax character of Fund distributions will occur after the end of each calendar year, at which time that determination will be reported to shareholders. \u00a0The Fund&#8217;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 &#8220;yield&#8221; or &#8220;income.&#8221; Distributions in excess of Fund returns will cause the Fund&#8217;s net assets and net asset value per share to erode. For the fiscal year beginning on <span class=\"xn-chron\">November 1, 2020<\/span> through <span class=\"xn-chron\">February 28, 2021<\/span>, the Fund has distributed <span class=\"xn-money\">$0.30<\/span> per share, 73.5 percent of which is estimated to be sourced from ordinary income and 26.5 percent of which is estimated to be return of capital.\u00a0 If the Fund had adopted the conditional distribution rate increase on <span class=\"xn-chron\">November 1, 2020<\/span> and the condition described above has been satisfied, its distributions for the fiscal year to date through <span class=\"xn-chron\">February 28, 2021<\/span> on a pro forma basis would have been approximately <span class=\"xn-money\">$0.454<\/span> per share, an estimated 48.6 percent of which would have been sourced from ordinary income and an estimated 51.4 percent from return of capital.\u00a0 Investors should not draw any conclusions about the Fund&#8217;s investment performance from the amount of its distributions. <\/p>\n<p>Fund distributions may be affected by numerous factors, including changes in Fund performance, the cost of leverage, portfolio holdings, realized and projected returns, and other factors. There can be no assurance that future Board action, an unanticipated change in market conditions or other unforeseen factors will not result in a change in the Fund&#8217;s distributions at a future time.<\/p>\n<p>\n        <i>Upcoming Special Shareholder Meeting<\/i>.\u00a0 The Fund also announced today that its Board has set a record date of <span class=\"xn-chron\">March 19, 2021<\/span> for determining those shareholders entitled to notice of, and the right to vote at, a special meeting of shareholders to be held on <span class=\"xn-chron\">May 7, 2021<\/span> and any adjournment or postponement thereof.\u00a0 At the meeting, shareholders will be asked to approve a new investment advisory agreement for the Fund with EVM.\u00a0\u00a0 <\/p>\n<p>As previously disclosed, the Board approved an interim investment advisory agreement with EVM (the &#8220;Interim Agreement&#8221;), which took effect upon completion of the acquisition of Eaton Vance Corp. by Morgan Stanley (NYSE: MS) on <span class=\"xn-chron\">March 1<\/span>, 2021.\u00a0 The Interim Agreement allows EVM to continue to manage the Fund for up to an additional 150 days to provide more time for proxy solicitation and the Board&#8217;s consideration of different options for the Fund.\u00a0 The terms of the Interim Agreement are substantially identical to those of the Fund&#8217;s prior investment advisory agreement except for term and escrow provisions required by applicable law.<\/p>\n<p>\n        <b>The Fund intends to file a definitive proxy statement with the U.S. Securities and Exchange Commission (the &#8220;SEC&#8221;). Shareholders are advised to read the proxy statement when available, as it will contain important information. When filed with the SEC, the proxy statement and other documents filed by the Fund will be available free of charge on the SEC website, <a href=\"http:\/\/www.sec.gov\" rel=\"nofollow\">www.sec.gov<\/a>. Copies of the proxy statement will also be mailed to each shareholder of record as of <span class=\"xn-chron\">March 19, 2021<\/span>.<\/b>\n      <\/p>\n<p>Eaton Vance Corp. was acquired by Morgan Stanley on <span class=\"xn-chron\">March 1<\/span>, 2021.\u00a0 Its 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. <\/p>\n<p>\n        <b>About the Fund<\/b>\n      <\/p>\n<p>Except pursuant to a tender offer, common shares of the Fund are available for purchase or sale only through secondary market trading at their current market price. Shares of closed-end funds (such as the Fund) often trade at a discount from their net asset value. The market price of a closed-end fund&#8217;s 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&#8217; expectations for future distribution changes, the clarity of a fund&#8217;s investment strategy and future return expectations, and investors&#8217; confidence in the underlying markets in which the fund invests. Fund shares are subject to investment risk, including possible loss of principal invested. Shares of the Fund are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. 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&#8217;s investment objective, risks, charges and expenses.\u00a0 <\/p>\n<p>This announcement is not a recommendation, an offer to purchase or a solicitation of an offer to sell shares of the Fund.\u00a0 The Fund has not commenced the conditional tender offer described in this release.\u00a0 The tender offer will be made only if the condition described above is satisfied, <span id=\"spanHghltbf80\">and<\/span> only by an offer to purchase, a related letter of transmittal and other documents filed with the SEC as exhibits to a tender offer statement on Schedule TO, with all such documents available on the SEC&#8217;s website at <a href=\"http:\/\/www.sec.gov\" rel=\"nofollow\">www.sec.gov<\/a>.\u00a0 For the tender offer, the Fund will also make available to shareholders without charge the offer to purchase and the letter of transmittal.\u00a0 Shareholders should read these documents carefully, as they would contain important information about the tender offer.\u00a0 <\/p>\n<p>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&#8217; expectations for future distribution changes, the clarity of the Fund&#8217;s investment strategy and future return expectations, and investors&#8217; 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&#8217;s investment objective, risks, charges and expenses.<\/p>\n<p>\n        <i>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 Fund. Additional information about the Fund, including performance and portfolio characteristic information, is available at <a href=\"http:\/\/www.eatonvance.com\" rel=\"nofollow\">www.eatonvance.com<\/a>.<\/i>\n      <\/p>\n<p>\n        <i>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 Fund&#8217;s control and could cause actual results to differ materially from those set forth in the forward-looking statements. <\/i>\n      <\/p>\n<p>\u00a0<\/p>\n<p id=\"PURL\">\n        <img loading=\"lazy\" decoding=\"async\" title=\"Cision\" width=\"12\" height=\"12\" alt=\"Cision\" src=\"https:\/\/c212.net\/c\/img\/favicon.png?sn=NE04427&amp;sd=2021-03-09\" \/> View original content:<a id=\"PRNURL\" rel=\"nofollow\" href=\"http:\/\/www.prnewswire.com\/news-releases\/eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting-301243958.html\">http:\/\/www.prnewswire.com\/news-releases\/eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting-301243958.html<\/a><\/p>\n<p>SOURCE  Eaton Vance Management<\/p>\n<\/p><\/div>\n<p>    <img decoding=\"async\" alt=\"\" src=\"https:\/\/rt.prnewswire.com\/rt.gif?NewsItemId=NE04427&amp;Transmission_Id=202103091656PR_NEWS_USPR_____NE04427&amp;DateId=20210309\" style=\"border:0px;width:1px;height:1px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>PR Newswire BOSTON, March 9, 2021 \/PRNewswire\/ &#8212;\u00a0Eaton Vance Short Duration Diversified Income Fund (NYSE: EVG) (the &#8220;Fund&#8221;) today announced that its Board of Trustees (the &#8220;Board&#8221;) has taken the actions described below. Conditional Tender Offer.\u00a0 The Board has authorized a conditional cash tender offer for up to 25% of the Fund&#8217;s outstanding common shares at a price per share equal to 99% of the Fund&#8217;s net asset value per share as of the close of regular trading on the New York Stock Exchange on the date the tender offer expires.\u00a0 The tender offer is conditioned on shareholder approval of a new investment advisory agreement with Eaton Vance Management (&#8220;EVM&#8221;), the Fund&#8217;s investment adviser, at the upcoming special meeting of &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Eaton Vance Short Duration Diversified Income Fund Announces Conditional Tender Offer, Conditional Distribution Rate Increase And Special Shareholder Meeting&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-454283","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Eaton Vance Short Duration Diversified Income Fund Announces Conditional Tender Offer, Conditional Distribution Rate Increase And Special Shareholder Meeting - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Eaton Vance Short Duration Diversified Income Fund Announces Conditional Tender Offer, Conditional Distribution Rate Increase And Special Shareholder Meeting - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"PR Newswire BOSTON, March 9, 2021 \/PRNewswire\/ &#8212;\u00a0Eaton Vance Short Duration Diversified Income Fund (NYSE: EVG) (the &#8220;Fund&#8221;) today announced that its Board of Trustees (the &#8220;Board&#8221;) has taken the actions described below. Conditional Tender Offer.\u00a0 The Board has authorized a conditional cash tender offer for up to 25% of the Fund&#8217;s outstanding common shares at a price per share equal to 99% of the Fund&#8217;s net asset value per share as of the close of regular trading on the New York Stock Exchange on the date the tender offer expires.\u00a0 The tender offer is conditioned on shareholder approval of a new investment advisory agreement with Eaton Vance Management (&#8220;EVM&#8221;), the Fund&#8217;s investment adviser, at the upcoming special meeting of &hellip; Continue reading &quot;Eaton Vance Short Duration Diversified Income Fund Announces Conditional Tender Offer, Conditional Distribution Rate Increase And Special Shareholder Meeting&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.marketnewsdesk.com\/index.php\/eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting\/\" \/>\n<meta property=\"og:site_name\" content=\"Market Newsdesk\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-09T21:59:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/c212.net\/c\/img\/favicon.png?sn=NE04427&amp;sd=2021-03-09\" \/>\n<meta name=\"author\" content=\"Newsdesk\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Newsdesk\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting\\\/\"},\"author\":{\"name\":\"Newsdesk\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/#\\\/schema\\\/person\\\/482f27a394d4fda80ecb5499e519d979\"},\"headline\":\"Eaton Vance Short Duration Diversified Income Fund Announces Conditional Tender Offer, Conditional Distribution Rate Increase And Special Shareholder Meeting\",\"datePublished\":\"2021-03-09T21:59:48+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting\\\/\"},\"wordCount\":1482,\"image\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/c212.net\\\/c\\\/img\\\/favicon.png?sn=NE04427&amp;sd=2021-03-09\",\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting\\\/\",\"url\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting\\\/\",\"name\":\"Eaton Vance Short Duration Diversified Income Fund Announces Conditional Tender Offer, Conditional Distribution Rate Increase And Special Shareholder Meeting - 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Market Newsdesk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.marketnewsdesk.com\/index.php\/eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting\/","og_locale":"en_US","og_type":"article","og_title":"Eaton Vance Short Duration Diversified Income Fund Announces Conditional Tender Offer, Conditional Distribution Rate Increase And Special Shareholder Meeting - Market Newsdesk","og_description":"PR Newswire BOSTON, March 9, 2021 \/PRNewswire\/ &#8212;\u00a0Eaton Vance Short Duration Diversified Income Fund (NYSE: EVG) (the &#8220;Fund&#8221;) today announced that its Board of Trustees (the &#8220;Board&#8221;) has taken the actions described below. Conditional Tender Offer.\u00a0 The Board has authorized a conditional cash tender offer for up to 25% of the Fund&#8217;s outstanding common shares at a price per share equal to 99% of the Fund&#8217;s net asset value per share as of the close of regular trading on the New York Stock Exchange on the date the tender offer expires.\u00a0 The tender offer is conditioned on shareholder approval of a new investment advisory agreement with Eaton Vance Management (&#8220;EVM&#8221;), the Fund&#8217;s investment adviser, at the upcoming special meeting of &hellip; Continue reading \"Eaton Vance Short Duration Diversified Income Fund Announces Conditional Tender Offer, Conditional Distribution Rate Increase And Special Shareholder Meeting\"","og_url":"https:\/\/www.marketnewsdesk.com\/index.php\/eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting\/","og_site_name":"Market Newsdesk","article_published_time":"2021-03-09T21:59:48+00:00","og_image":[{"url":"https:\/\/c212.net\/c\/img\/favicon.png?sn=NE04427&amp;sd=2021-03-09","type":"","width":"","height":""}],"author":"Newsdesk","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Newsdesk","Est. reading time":"7 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting\/#article","isPartOf":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting\/"},"author":{"name":"Newsdesk","@id":"https:\/\/www.marketnewsdesk.com\/#\/schema\/person\/482f27a394d4fda80ecb5499e519d979"},"headline":"Eaton Vance Short Duration Diversified Income Fund Announces Conditional Tender Offer, Conditional Distribution Rate Increase And Special Shareholder Meeting","datePublished":"2021-03-09T21:59:48+00:00","mainEntityOfPage":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting\/"},"wordCount":1482,"image":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting\/#primaryimage"},"thumbnailUrl":"https:\/\/c212.net\/c\/img\/favicon.png?sn=NE04427&amp;sd=2021-03-09","inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting\/","url":"https:\/\/www.marketnewsdesk.com\/index.php\/eaton-vance-short-duration-diversified-income-fund-announces-conditional-tender-offer-conditional-distribution-rate-increase-and-special-shareholder-meeting\/","name":"Eaton Vance Short Duration Diversified Income Fund Announces Conditional Tender Offer, Conditional Distribution Rate Increase And Special Shareholder Meeting - 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