UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-22044
Eaton Vance Risk-Managed Diversified Equity Income Fund
(Exact Name of Registrant as Specified in Charter)
Two International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
Deidre E. Walsh
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
(617) 482-8260
(Registrants Telephone Number)
December 31
Date of Fiscal Year End
June 30, 2021
Date of Reporting Period
Item 1. |
Reports to Stockholders |
Eaton Vance
Risk-Managed Diversified Equity Income Fund (ETJ)
Semiannual Report
June 30, 2021
Commodity Futures Trading Commission Registration. The Commodity Futures Trading Commission (CFTC) has adopted regulations that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a prescribed level of its assets in certain CFTC-regulated instruments (including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. The investment adviser has claimed an exclusion from the definition of commodity pool operator under the Commodity Exchange Act with respect to its management of the Fund. Accordingly, neither the Fund nor the adviser with respect to the operation of the Fund is subject to CFTC regulation. Because of its management of other strategies, the Funds adviser is registered with the CFTC as a commodity pool operator. The adviser is also registered as a commodity trading advisor.
Managed Distribution Plan. Pursuant to an exemptive order issued by the Securities and Exchange Commission (Order), the Fund is authorized to distribute long-term capital gains to shareholders more frequently than once per year. Pursuant to the Order, the Funds Board of Trustees approved a Managed Distribution Plan (MDP) pursuant to which the Fund makes monthly cash distributions to common shareholders, stated in terms of a fixed amount per common share.
The Fund currently distributes monthly cash distributions equal to $0.0760 per share in accordance with the MDP. You should not draw any conclusions about the Funds investment performance from the amount of these distributions or from the terms of the MDP. The MDP will be subject to regular periodic review by the Funds Board of Trustees and the Board may amend or terminate the MDP at any time without prior notice to Fund shareholders. However, at this time there are no reasonably foreseeable circumstances that might cause the termination of the MDP.
The Fund may distribute more than its net investment income and net realized capital gains and, therefore, a distribution may include a return of capital. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income. With each distribution, the Fund will issue a notice to shareholders and a press release containing information about the amount and sources of the distribution and other related information. The amounts and sources of distributions contained in the notice and press release are only estimates and are not provided for tax purposes. The amounts and sources of the Funds distributions for tax purposes will be reported to shareholders on Form 1099-DIV for each calendar year.
Fund shares are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.
Semiannual Report June 30, 2021
Eaton Vance
Risk-Managed Diversified Equity Income Fund
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3 | ||||
4 | ||||
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17 | ||||
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19 | ||||
21 |
Eaton Vance
Risk-Managed Diversified Equity Income Fund
June 30, 2021
Portfolio Manager Michael A. Allison, CFA and G.R. Nelson
% Average Annual Total Returns | Inception Date | Six Months | One Year | Five Years | Ten Years | |||||||||||||||
Fund at NAV |
07/31/2007 | 7.90 | % | 19.10 | % | 10.67 | % | 7.60 | % | |||||||||||
Fund at Market Price |
| 16.07 | 31.80 | 14.11 | 9.74 | |||||||||||||||
|
|
|||||||||||||||||||
S&P 500® Index |
| 15.25 | % | 40.79 | % | 17.64 | % | 14.83 | % | |||||||||||
Cboe S&P 500 95110 Collar IndexSM |
| 10.07 | 24.79 | 15.51 | 9.88 | |||||||||||||||
% Premium/Discount to NAV2 | ||||||||||||||||||||
10.66 | % | |||||||||||||||||||
Distributions3 | ||||||||||||||||||||
Total Distributions per share for the period |
$ | 0.456 | ||||||||||||||||||
Distribution Rate at NAV |
8.76 | % | ||||||||||||||||||
Distribution Rate at Market Price |
7.92 |
Sector Allocation (% of total investments)4
Top 10 Holdings (% of total investments)4
Microsoft Corp. |
7.2 | % | ||
Apple, Inc. |
6.2 | |||
Amazon.com, Inc. |
5.8 | |||
Alphabet, Inc., Class C |
5.1 | |||
JPMorgan Chase & Co. |
2.8 | |||
Visa, Inc., Class A |
2.4 | |||
UnitedHealth Group, Inc. |
2.3 | |||
Eaton Corp. PLC |
2.2 | |||
Bank of America Corp. |
2.2 | |||
Danaher Corp. |
2.2 | |||
Total |
38.4 | % |
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated net of management fees and other expenses by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested in accordance with the Funds Dividend Reinvestment Plan. Performance at market price will differ from performance at NAV due to variations in the Funds market price versus NAV, which may reflect factors such as fluctuations in supply and demand for Fund shares, changes in Fund distributions, shifting market expectations for the Funds future returns and distribution rates, and other considerations affecting the trading prices of closed-end funds. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month-end, please refer to eatonvance.com.
2 |
Eaton Vance
Risk-Managed Diversified Equity Income Fund
June 30, 2021
Endnotes and Additional Disclosures
1 |
S&P 500® Index is an unmanaged index of large-cap stocks commonly used as a measure of U.S. stock market performance. S&P Dow Jones Indices are a product of S&P Dow Jones Indices LLC (S&P DJI) and have been licensed for use. S&P® and S&P 500® are registered trademarks of S&P DJI; Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); S&P DJI, Dow Jones and their respective affiliates do not sponsor, endorse, sell or promote the Fund, will not have any liability with respect thereto and do not have any liability for any errors, omissions, or interruptions of the S&P Dow Jones Indices. Cboe S&P 500 95110 Collar IndexSM is an unmanaged index of the S&P 500® stocks with a collar option strategy of buying put options and selling call options. Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index. |
2 |
The shares of the Fund often trade at a discount or premium to their net asset value. The discount or premium may vary over time and may be higher or lower than what is quoted in this report. For up-to-date premium/discount information, please refer to https://funds.eatonvance.com/closed-end-fund-prices.php. |
3 |
The Distribution Rate is based on the Funds last regular distribution per share in the period (annualized) divided by the Funds NAV or market price at the end of the period. The Funds distributions may be comprised of amounts characterized for federal income tax purposes as qualified and non-qualified ordinary dividends, capital gains and nondividend distributions, also known as return of capital. For additional information about nondividend distributions, please refer to Eaton Vance Closed-End Fund Distribution Notices (19a) posted on our website, eatonvance.com. The Fund will determine the federal income tax character of distributions paid to a shareholder after the end of the calendar year. This is reported on the IRS form 1099-DIV and provided to the shareholder shortly after each year-end. For information about the tax character of distributions made in prior calendar years, please refer to Performance-Tax Character of Distributions on the Funds webpage available at eatonvance.com. In recent years, a significant portion of the Funds distributions has been characterized as a return of capital. The Funds distributions are determined by the investment adviser based on its current assessment of the Funds long-term return potential. Fund distributions may be affected by numerous factors including changes in Fund performance, the cost of financing for leverage, portfolio holdings, realized and projected returns, and other factors. As portfolio and market conditions change, the rate of distributions paid by the Fund could change. |
4 |
Depictions do not reflect the Funds option positions. Excludes cash and cash equivalents. |
Fund profile subject to change due to active management.
Important Notice to Shareholders
Effective July 1, 2021, the Fund is managed by G.R. Nelson.
3 |
Eaton Vance
Risk-Managed Diversified Equity Income Fund
June 30, 2021
Portfolio of Investments (Unaudited)
4 | See Notes to Financial Statements. |
Eaton Vance
Risk-Managed Diversified Equity Income Fund
June 30, 2021
Portfolio of Investments (Unaudited) continued
Security | Shares | Value | ||||||
IT Services 7.8% | ||||||||
Accenture PLC, Class A(1) |
42,308 | $ | 12,471,975 | |||||
Fidelity National Information Services, Inc.(1) |
49,168 | 6,965,631 | ||||||
GoDaddy, Inc., Class A(1)(2) |
51,455 | 4,474,527 | ||||||
PayPal Holdings, Inc.(1)(2) |
40,022 | 11,665,612 | ||||||
Visa, Inc., Class A(1) |
69,752 | 16,309,413 | ||||||
$ | 51,887,158 | |||||||
Life Sciences Tools & Services 3.1% | ||||||||
Charles River Laboratories International, Inc.(1)(2) |
14,865 | $ | 5,498,861 | |||||
Thermo Fisher Scientific, Inc.(1) |
21,726 | 10,960,115 | ||||||
Waters Corp.(1)(2) |
12,284 | 4,245,473 | ||||||
$ | 20,704,449 | |||||||
Machinery 1.9% | ||||||||
Caterpillar, Inc.(1) |
29,730 | $ | 6,470,140 | |||||
PACCAR, Inc.(1) |
72,039 | 6,429,481 | ||||||
$ | 12,899,621 | |||||||
Metals & Mining 2.5% | ||||||||
Franco-Nevada Corp.(1) |
60,603 | $ | 8,791,677 | |||||
Rio Tinto PLC ADR(1) |
94,908 | 7,961,832 | ||||||
$ | 16,753,509 | |||||||
Multi-Utilities 1.3% | ||||||||
CMS Energy Corp.(1) |
49,168 | $ | 2,904,846 | |||||
Sempra Energy(1) |
44,596 | 5,908,078 | ||||||
$ | 8,812,924 | |||||||
Oil, Gas & Consumable Fuels 2.7% | ||||||||
Chevron Corp.(1) |
72,038 | $ | 7,545,260 | |||||
EOG Resources, Inc.(1) |
72,038 | 6,010,851 | ||||||
Phillips 66(1) |
53,743 | 4,612,224 | ||||||
$ | 18,168,335 | |||||||
Pharmaceuticals 2.9% | ||||||||
Royalty Pharma PLC, Class A(1) |
72,039 | $ | 2,952,879 | |||||
Sanofi |
76,612 | 8,049,054 | ||||||
Zoetis, Inc.(1) |
45,739 | 8,523,920 | ||||||
$ | 19,525,853 | |||||||
Road & Rail 1.9% | ||||||||
CSX Corp.(1) |
397,923 | $ | 12,765,370 | |||||
$ | 12,765,370 |
Security | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment 3.2% | ||||||||
Micron Technology, Inc.(1)(2) |
73,182 | $ | 6,219,006 | |||||
Texas Instruments, Inc.(1) |
77,756 | 14,952,479 | ||||||
$ | 21,171,485 | |||||||
Software 10.3% | ||||||||
Intuit, Inc.(1) |
28,587 | $ | 14,012,490 | |||||
Microsoft Corp.(1) |
177,237 | 48,013,503 | ||||||
Palantir Technologies, Inc., Class A(1)(2) |
251,562 | 6,631,174 | ||||||
$ | 68,657,167 | |||||||
Specialty Retail 2.4% | ||||||||
Best Buy Co., Inc.(1) |
46,881 | $ | 5,390,377 | |||||
Lowes Cos., Inc.(1) |
53,743 | 10,424,530 | ||||||
$ | 15,814,907 | |||||||
Technology Hardware, Storage & Peripherals 6.2% | ||||||||
Apple, Inc.(1) |
303,017 | $ | 41,501,208 | |||||
$ | 41,501,208 | |||||||
Textiles, Apparel & Luxury Goods 2.6% | ||||||||
Capri Holdings, Ltd.(1)(2) |
93,762 | $ | 5,362,249 | |||||
NIKE, Inc., Class B(1) |
75,469 | 11,659,206 | ||||||
$ | 17,021,455 | |||||||
Total Common Stocks
|
|
$ | 665,068,765 | |||||
Short-Term Investments 0.8% |
|
|||||||
Description | Units | Value | ||||||
Eaton Vance Cash Reserves Fund, LLC, 0.05%(3) |
5,405,121 | $ | 5,405,121 | |||||
Total Short-Term Investments
|
|
$ | 5,405,121 | |||||
Total Purchased Put Options 0.2%
|
|
$ | 1,023,050 | |||||
Total Investments 100.9%
|
|
$ | 671,496,936 | |||||
Total Written Call Options (0.8)%
|
|
$ | (5,041,875 | ) | ||||
Other Assets, Less Liabilities (0.1)% |
|
$ | (532,223 | ) | ||||
Net Assets 100.0% |
|
$ | 665,922,838 |
5 | See Notes to Financial Statements. |
Eaton Vance
Risk-Managed Diversified Equity Income Fund
June 30, 2021
Portfolio of Investments (Unaudited) continued
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
(1) |
Security (or a portion thereof) has been pledged as collateral for written options. |
(2) |
Non-income producing security. |
(3) |
Affiliated investment company, available to Eaton Vance portfolios and funds, which invests in high quality, U.S. dollar denominated money market instruments. The rate shown is the annualized seven-day yield as of June 30, 2021. |
Purchased Put Options 0.2% | ||||||||||||||||||||
Exchange-Traded Options 0.2% | ||||||||||||||||||||
Description |
Number of
Contracts |
Notional
Amount |
Exercise
Price |
Expiration
Date |
Value | |||||||||||||||
S&P 500 Index |
124 | $ | 53,289,000 | $ | 4,050 | 7/2/21 | $ | 3,100 | ||||||||||||
S&P 500 Index |
124 | 53,289,000 | 4,060 | 7/6/21 | 5,580 | |||||||||||||||
S&P 500 Index |
124 | 53,289,000 | 4,060 | 7/7/21 | 8,680 | |||||||||||||||
S&P 500 Index |
124 | 53,289,000 | 4,080 | 7/9/21 | 22,940 | |||||||||||||||
S&P 500 Index |
124 | 53,289,000 | 4,075 | 7/12/21 | 32,550 | |||||||||||||||
S&P 500 Index |
124 | 53,289,000 | 4,040 | 7/14/21 | 45,260 | |||||||||||||||
S&P 500 Index |
125 | 53,718,750 | 3,990 | 7/16/21 | 51,250 | |||||||||||||||
S&P 500 Index |
124 | 53,289,000 | 4,005 | 7/21/21 | 84,940 | |||||||||||||||
S&P 500 Index |
123 | 52,859,250 | 4,090 | 7/21/21 | 129,150 | |||||||||||||||
S&P 500 Index |
123 | 52,859,250 | 4,120 | 7/23/21 | 180,810 | |||||||||||||||
S&P 500 Index |
123 | 52,859,250 | 4,130 | 7/26/21 | 210,945 | |||||||||||||||
S&P 500 Index |
123 | 52,859,250 | 4,130 | 7/28/21 | 247,845 | |||||||||||||||
Total |
|
$ | 1,023,050 |
Written Call Options (0.8)% | ||||||||||||||||||||
Exchange-Traded Options (0.8)% | ||||||||||||||||||||
Description |
Number of
Contracts |
Notional
Amount |
Exercise
Price |
Expiration
Date |
Value | |||||||||||||||
S&P 500 Index |
124 | $ | 53,289,000 | $ | 4,280 | 7/2/21 | $ | (293,880 | ) | |||||||||||
S&P 500 Index |
124 | 53,289,000 | 4,290 | 7/6/21 | (241,800 | ) | ||||||||||||||
S&P 500 Index |
124 | 53,289,000 | 4,290 | 7/7/21 | (271,560 | ) | ||||||||||||||
S&P 500 Index |
124 | 53,289,000 | 4,290 | 7/9/21 | (330,460 | ) | ||||||||||||||
S&P 500 Index |
124 | 53,289,000 | 4,300 | 7/12/21 | (290,160 | ) | ||||||||||||||
S&P 500 Index |
124 | 53,289,000 | 4,280 | 7/14/21 | (509,640 | ) | ||||||||||||||
S&P 500 Index |
125 | 53,718,750 | 4,250 | 7/16/21 | (853,750 | ) | ||||||||||||||
S&P 500 Index |
124 | 53,289,000 | 4,270 | 7/21/21 | (728,500 | ) | ||||||||||||||
S&P 500 Index |
123 | 52,859,250 | 4,300 | 7/21/21 | (469,860 | ) | ||||||||||||||
S&P 500 Index |
123 | 52,859,250 | 4,325 | 7/23/21 | (341,940 | ) | ||||||||||||||
S&P 500 Index |
123 | 52,859,250 | 4,320 | 7/26/21 | (402,210 | ) | ||||||||||||||
S&P 500 Index |
123 | 52,859,250 | 4,345 | 7/28/21 | (308,115 | ) | ||||||||||||||
Total |
|
$ | (5,041,875 | ) |
Abbreviations:
ADR | | American Depositary Receipt |
6 | See Notes to Financial Statements. |
Eaton Vance
Risk-Managed Diversified Equity Income Fund
June 30, 2021
Statement of Assets and Liabilities (Unaudited)
Assets | June 30, 2021 | |||
Unaffiliated investments, at value (identified cost, $397,790,515) |
$ | 666,091,815 | ||
Affiliated investment, at value (identified cost, $5,405,121) |
5,405,121 | |||
Dividends receivable |
224,454 | |||
Dividends receivable from affiliated investment |
232 | |||
Receivable for premiums on written options |
315,282 | |||
Receivable from the transfer agent |
135,673 | |||
Tax reclaims receivable |
34,341 | |||
Total assets |
$ | 672,206,918 | ||
Liabilities |
|
|||
Written options outstanding, at value (premiums received, $3,814,764) |
$ | 5,041,875 | ||
Payable for closed written options |
472,761 | |||
Payable to affiliates: |
||||
Investment adviser fee |
544,437 | |||
Trustees fees |
8,097 | |||
Accrued expenses |
216,910 | |||
Total liabilities |
$ | 6,284,080 | ||
Net Assets |
$ | 665,922,838 | ||
Sources of Net Assets |
|
|||
Common shares, $0.01 par value, unlimited number of shares authorized, 63,970,955 shares issued and outstanding |
$ | 639,710 | ||
Additional paid-in capital |
421,533,769 | |||
Distributable earnings |
243,749,359 | |||
Net Assets |
$ | 665,922,838 | ||
Net Asset Value |
|
|||
($665,922,838 ÷ 63,970,955 common shares issued and outstanding) |
$ | 10.41 |
7 | See Notes to Financial Statements. |
Eaton Vance
Risk-Managed Diversified Equity Income Fund
June 30, 2021
Statement of Operations (Unaudited)
Investment Income |
Six Months Ended
June 30, 2021 |
|||
Dividends (net of foreign taxes, $50,635) |
$ | 5,123,430 | ||
Dividends from affiliated investment |
1,654 | |||
Total investment income |
$ | 5,125,084 | ||
Expenses |
|
|||
Investment adviser fee |
$ | 3,253,460 | ||
Trustees fees and expenses |
15,964 | |||
Custodian fee |
117,413 | |||
Transfer and dividend disbursing agent fees |
9,028 | |||
Legal and accounting services |
40,748 | |||
Printing and postage |
134,802 | |||
Miscellaneous |
34,807 | |||
Total expenses |
$ | 3,606,222 | ||
Net investment income |
$ | 1,518,862 | ||
Realized and Unrealized Gain (Loss) |
|
|||
Net realized gain (loss) |
||||
Investment transactions |
$ | 21,533,221 | ||
Investment transactions affiliated investment |
3 | |||
Written options |
(3,754,320 | ) | ||
Foreign currency transactions |
2,562 | |||
Net realized gain |
$ | 17,781,466 | ||
Change in unrealized appreciation (depreciation) |
|
|||
Investments |
$ | 31,716,384 | ||
Written options |
(523,659 | ) | ||
Foreign currency |
(427 | ) | ||
Net change in unrealized appreciation (depreciation) |
$ | 31,192,298 | ||
Net realized and unrealized gain |
$ | 48,973,764 | ||
Net increase in net assets from operations |
$ | 50,492,626 |
8 | See Notes to Financial Statements. |
Eaton Vance
Risk-Managed Diversified Equity Income Fund
June 30, 2021
Statements of Changes in Net Assets
Increase (Decrease) in Net Assets |
Six Months Ended
June 30, 2021 (Unaudited) |
Year Ended
December 31, 2020 |
||||||
From operations |
||||||||
Net investment income |
$ | 1,518,862 | $ | 4,287,964 | ||||
Net realized gain |
17,781,466 | 18,152,540 | ||||||
Net change in unrealized appreciation (depreciation) |
31,192,298 | 83,048,538 | ||||||
Net increase in net assets from operations |
$ | 50,492,626 | $ | 105,489,042 | ||||
Distributions to shareholders |
$ | (29,150,188 | )* | $ | (17,513,647 | ) | ||
Tax return of capital to shareholders |
$ | | $ | (40,700,834 | ) | |||
Capital share transactions |
||||||||
Reinvestment of distributions |
$ | 809,373 | $ | 1,025,940 | ||||
Net increase in net assets from capital share transactions |
$ | 809,373 | $ | 1,025,940 | ||||
Net increase in net assets |
$ | 22,151,811 | $ | 48,300,501 | ||||
Net Assets |
|
|||||||
At beginning of period |
$ | 643,771,027 | $ | 595,470,526 | ||||
At end of period |
$ | 665,922,838 | $ | 643,771,027 |
* |
A portion of the distributions may be deemed a tax return of capital at year-end. See Note 2. |
9 | See Notes to Financial Statements. |
Eaton Vance
Risk-Managed Diversified Equity Income Fund
June 30, 2021
Financial Highlights
Six Months Ended
June 30, 2021 (Unaudited) |
Year Ended December 31, | |||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||
Net asset value Beginning of period |
$ | 10.080 | $ | 9.340 | $ | 8.950 | $ | 10.080 | $ | 9.980 | $ | 11.150 | ||||||||||||
Income (Loss) From Operations |
|
|||||||||||||||||||||||
Net investment income(1) |
$ | 0.024 | $ | 0.067 | $ | 0.066 | $ | 0.059 | $ | 0.078 | $ | 0.108 | ||||||||||||
Net realized and unrealized gain (loss) |
0.762 | 1.585 | 1.236 | (0.277 | ) | 0.968 | (0.162 | ) | ||||||||||||||||
Total income (loss) from operations |
$ | 0.786 | $ | 1.652 | $ | 1.302 | $ | (0.218 | ) | $ | 1.046 | $ | (0.054 | ) | ||||||||||
Less Distributions |
|
|||||||||||||||||||||||
From net investment income |
$ | (0.456 | )* | $ | (0.080 | ) | $ | (0.066 | ) | $ | (0.486 | ) | $ | (0.946 | ) | $ | (0.093 | ) | ||||||
From net realized gain |
| (0.194 | ) | | | | | |||||||||||||||||
Tax return of capital |
| (0.638 | ) | (0.846 | ) | (0.426 | ) | | (1.023 | ) | ||||||||||||||
Total distributions |
$ | (0.456 | ) | $ | (0.912 | ) | $ | (0.912 | ) | $ | (0.912 | ) | $ | (0.946 | ) | $ | (1.116 | ) | ||||||
Net asset value End of period |
$ | 10.410 | $ | 10.080 | $ | 9.340 | $ | 8.950 | $ | 10.080 | $ | 9.980 | ||||||||||||
Market value End of period |
$ | 11.520 | $ | 10.370 | $ | 9.330 | $ | 8.120 | $ | 9.630 | $ | 8.960 | ||||||||||||
Total Investment Return on Net Asset Value(2) |
7.90 | %(3) | 18.78 | % | 15.18 | % | (2.13 | )% | 11.66 | % | 0.60 | % | ||||||||||||
Total Investment Return on Market Value(2) |
16.07 | %(3) | 22.33 | % | 26.82 | % | (7.06 | )% | 18.82 | % | (0.88 | )% | ||||||||||||
Ratios/Supplemental Data |
|
|||||||||||||||||||||||
Net assets, end of period (000s omitted) |
$ | 665,923 | $ | 643,771 | $ | 595,471 | $ | 570,021 | $ | 641,923 | $ | 635,595 | ||||||||||||
Ratios (as a percentage of average daily net assets): |
||||||||||||||||||||||||
Expenses |
1.11 | %(4) | 1.11 | % | 1.11 | % | 1.10 | % | 1.10 | % | 1.11 | % | ||||||||||||
Net investment income |
0.47 | %(4) | 0.70 | % | 0.71 | % | 0.60 | % | 0.78 | % | 1.05 | % | ||||||||||||
Portfolio Turnover |
17 | %(3) | 52 | % | 57 | % | 53 | % | 87 | % | 79 | % |
(1) |
Computed using average shares outstanding. |
(2) |
Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Funds dividend reinvestment plan. |
(3) |
Not annualized. |
(4) |
Annualized. |
* |
A portion of the distributions may be deemed from net realized gain or a tax return of capital at year-end. See Note 2. |
10 | See Notes to Financial Statements. |
Eaton Vance
Risk-Managed Diversified Equity Income Fund
June 30, 2021
Notes to Financial Statements
1 Significant Accounting Policies
Eaton Vance Risk-Managed Diversified Equity Income Fund (the Fund) is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a diversified, closed-end management investment company. The Funds primary investment objective is to provide current income and gains, with a secondary objective of capital appreciation.
The following is a summary of significant accounting policies of the Fund. The policies are in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The Fund is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946.
A Investment Valuation The following methodologies are used to determine the market value or fair value of investments.
Equity Securities. Equity securities listed on a U.S. securities exchange generally are valued at the last sale or closing price on the day of valuation or, if no sales took place on such date, at the mean between the closing bid and ask prices on the exchange where such securities are principally traded. Equity securities listed on the NASDAQ Global or Global Select Market generally are valued at the NASDAQ official closing price. Unlisted or listed securities for which closing sales prices or closing quotations are not available are valued at the mean between the latest available bid and ask prices.
Derivatives. U.S. exchange-traded options are valued at the mean between the bid and ask prices at valuation time as reported by the Options Price Reporting Authority. Non-U.S. exchange-traded options and over-the-counter options are valued by a third party pricing service using techniques that consider factors including the value of the underlying instrument, the volatility of the underlying instrument and the period of time until option expiration.
Foreign Securities and Currencies. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rate quotations supplied by a third party pricing service. The pricing service uses a proprietary model to determine the exchange rate. Inputs to the model include reported trades and implied bid/ask spreads. The daily valuation of exchange-traded foreign securities generally is determined as of the close of trading on the principal exchange on which such securities trade. Events occurring after the close of trading on foreign exchanges may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange. When valuing foreign equity securities that meet certain criteria, the Funds Trustees have approved the use of a fair value service that values such securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that have a strong correlation to the fair-valued securities.
Affiliated Fund. The Fund may invest in Eaton Vance Cash Reserves Fund, LLC (Cash Reserves Fund), an affiliated investment company managed by Eaton Vance Management (EVM). While Cash Reserves Fund is not a registered money market mutual fund, it conducts all of its investment activities in accordance with the requirements of Rule 2a-7 under the 1940 Act. Investments in Cash Reserves Fund are valued at the closing net asset value per unit on the valuation day. Cash Reserves Fund generally values its investment securities based on available market quotations provided by a third party pricing service.
Fair Valuation. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the Fund in a manner that most fairly reflects the securitys fair value, which is the amount that the Fund might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the securitys disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies or entities, quotations or relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the companys or entitys financial statements, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
B Investment Transactions Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost.
C Income Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Fund is informed of the ex-dividend date. Withholding taxes on foreign dividends and capital gains have been provided for in accordance with the Funds understanding of the applicable countries tax rules and rates.
D Federal Taxes The Funds policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its net investment income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary.
As of June 30, 2021, the Fund had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. The Fund files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.
E Foreign Currency Translation Investment valuations, other assets, and liabilities initially expressed in foreign currencies are translated each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investment securities and income and expenses denominated in foreign currencies are translated into U.S. dollars based upon currency exchange rates in effect on the respective dates of such transactions. Recognized gains or losses on investment transactions attributable to changes in foreign currency exchange rates are recorded for financial statement purposes as net
11 |
Eaton Vance
Risk-Managed Diversified Equity Income Fund
June 30, 2021
Notes to Financial Statements continued
realized gains and losses on investments. That portion of unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.
F Use of Estimates The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.
G Indemnifications Under the Funds organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Fund. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as the Fund) could be deemed to have personal liability for the obligations of the Fund. However, the Funds Declaration of Trust contains an express disclaimer of liability on the part of Fund shareholders and the By-laws provide that the Fund shall assume, upon request by the shareholder, the defense on behalf of any Fund shareholders. Moreover, the By-laws also provide for indemnification out of Fund property of any shareholder held personally liable solely by reason of being or having been a shareholder for all loss or expense arising from such liability. Additionally, in the normal course of business, the Fund enters into agreements with service providers that may contain indemnification clauses. The Funds maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.
H Written Options Upon the writing of a call or a put option, the premium received by the Fund is included in the Statement of Assets and Liabilities as a liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written, in accordance with the Funds policies on investment valuations discussed above. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or are closed are added to or offset against the proceeds or amount paid on the transaction to determine the realized gain or loss. When an index option is exercised, the Fund is required to deliver an amount of cash determined by the excess of the exercise price of the option over the value of the index (in the case of a put) or the excess of the value of the index over the exercise price of the option (in the case of a call) at contract termination. If a put option on a security is exercised, the premium reduces the cost basis of the securities purchased by the Fund. The Fund, as a writer of an option, may have no control over whether the underlying securities or other assets may be sold (call) or purchased (put) and, as a result, bears the market risk of an unfavorable change in the price of the securities or other assets underlying the written option. The Fund may also bear the risk of not being able to enter into a closing transaction if a liquid secondary market does not exist.
I Purchased Options Upon the purchase of a call or put option, the premium paid by the Fund is included in the Statement of Assets and Liabilities as an investment. The amount of the investment is subsequently marked-to-market to reflect the current market value of the option purchased, in accordance with the Funds policies on investment valuations discussed above. As the purchaser of an index option, the Fund has the right to receive a cash payment equal to any depreciation in the value of the index below the exercise price of the option (in the case of a put) or equal to any appreciation in the value of the index over the exercise price of the option (in the case of a call) as of the valuation date of the option. If an option which the Fund had purchased expires on the stipulated expiration date, the Fund will realize a loss in the amount of the cost of the option. If the Fund enters into a closing sale transaction, the Fund will realize a gain or loss, depending on whether the sales proceeds from the closing sale transaction are greater or less than the cost of the option. If the Fund exercises a put option on a security, it will realize a gain or loss from the sale of the underlying security, and the proceeds from such sale will be decreased by the premium originally paid. If the Fund exercises a call option on a security, the cost of the security which the Fund purchases upon exercise will be increased by the premium originally paid. The risk associated with purchasing options is limited to the premium originally paid.
J Interim Financial Statements The interim financial statements relating to June 30, 2021 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Funds management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.
2 Distributions to Shareholders and Income Tax Information
Subject to its Managed Distribution Plan, the Fund makes monthly distributions from its cash available for distribution, which consists of the Funds dividends and interest income after payment of Fund expenses, net option premiums and net realized and unrealized gains on stock investments. The Fund intends to distribute all or substantially all of its net realized capital gains. Distributions are recorded on the ex-dividend date. Distributions to shareholders are determined in accordance with income tax regulations, which may differ from U.S. GAAP. As required by U.S. GAAP, only distributions in excess of tax basis earnings and profits are reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income. Distributions in any year may include a substantial return of capital component. For the six months ended June 30, 2021, the amount of distributions
estimated to be a tax return of capital was approximately $27,336,000. The final determination of tax characteristics of the Funds distributions will occur at the end of the year, at which time it will be reported to the shareholders.
At December 31, 2020, the Fund had a net capital loss of $16,383,977 attributable to security transactions incurred after October 31, 2020 that it has elected to defer. This net capital loss is treated as arising on the first day of the Funds taxable year ending December 31, 2021.
12 |
Eaton Vance
Risk-Managed Diversified Equity Income Fund
June 30, 2021
Notes to Financial Statements continued
The cost and unrealized appreciation (depreciation) of investments, including open derivative contracts, of the Fund at June 30, 2021, as determined on a federal income tax basis, were as follows:
Aggregate cost |
$ | 399,919,823 | ||
Gross unrealized appreciation |
$ | 271,481,783 | ||
Gross unrealized depreciation |
(4,946,545 | ) | ||
Net unrealized appreciation |
$ | 266,535,238 |
3 Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by EVM as compensation for investment advisory services rendered to the Fund. On March 1, 2021, Morgan Stanley acquired Eaton Vance Corp. (the Transaction) and EVM became an indirect, wholly-owned subsidiary of Morgan Stanley. In connection with the Transaction, the Fund entered into a investment advisory agreement (the New Agreement) with EVM, which took effect on March 1, 2021. Pursuant to the New Agreement (and the Funds investment advisory agreement with EVM in effect prior to March 1, 2021), the fee is computed at an annual rate of 1.00% of the Funds average daily gross assets and is payable monthly. Gross assets as referred to herein represent net assets plus obligations attributable to investment leverage, if any. For the six months ended June 30, 2021, the investment adviser fee amounted to $3,253,460. The Fund may invest its cash in Cash Reserves Fund. EVM does not currently receive a fee for advisory services provided to Cash Reserves Fund. EVM also serves as administrator of the Fund, but receives no compensation.
Trustees and officers of the Fund who are members of EVMs organization receive remuneration for their services to the Fund out of the investment adviser fee. Trustees of the Fund who are not affiliated with EVM may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the six months ended June 30, 2021, no significant amounts have been deferred. Certain officers and Trustees of the Fund are officers of EVM.
4 Purchases and Sales of Investments
Purchases and sales of investments, other than short-term obligations, aggregated $110,724,323 and $170,547,821, respectively, for the six months ended June 30, 2021.
5 Common Shares of Beneficial Interest
Common shares issued by the Fund pursuant to its dividend reinvestment plan for the six months ended June 30, 2021 and the year ended December 31, 2020 were 78,089 and 105,884, respectively.
In August 2012, the Board of Trustees initially approved a share repurchase program for the Fund. Pursuant to the reauthorization of the share repurchase program by the Board of Trustees in March 2019, the Fund is authorized to repurchase up to 10% of its common shares outstanding as of the last day of the prior calendar year at market prices when shares are trading at a discount to net asset value. The share repurchase program does not obligate the Fund to purchase a specific amount of shares. There were no repurchases of common shares by the Fund for the six months ended June 30, 2021 and the year ended December 31, 2020.
6 Financial Instruments
The Fund may trade in financial instruments with off-balance sheet risk in the normal course of its investing activities. These financial instruments may include written options and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment the Fund has in particular classes of financial instruments and do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. A summary of obligations under these financial instruments at June 30, 2021 is included in the Portfolio of Investments. At June 30, 2021, the Fund had sufficient cash and/or securities to cover commitments under these contracts.
The Fund is subject to equity price risk in the normal course of pursuing its investment objectives. The Fund pursues a collared options strategy which consists of buying S&P 500 index put options below the current value of the index and writing S&P 500 index call options above the current value of the index with the same expiration. The strategy uses the premium income from the written call options to buy an equal number of put options. In buying put options on an index, the Fund in effect, acquires protection against decline in the value of the applicable index below the exercise price in exchange for the option premium paid. In writing index call options, the Fund in effect, sells potential appreciation in the value of the applicable index above the exercise price. The Fund retains the risk of lost appreciation, minus the premium received, should the price of the underlying index rise above the exercise price. Under normal market conditions, the Funds use of option collars is expected to provide a more consistent level of market exposure and market protection.
13 |
Eaton Vance
Risk-Managed Diversified Equity Income Fund
June 30, 2021
Notes to Financial Statements continued
The fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) and whose primary underlying risk exposure is equity price risk at June 30, 2021 was as follows:
Fair Value | ||||||||
Derivative | Asset Derivative(1) | Liability Derivative(2) | ||||||
Purchased options |
$ | 1,023,050 | $ | | ||||
Written options |
| (5,041,875 | ) | |||||
Total |
$ | 1,023,050 | $ | (5,041,875 | ) |
(1) |
Statement of Assets and Liabilities location: Unaffiliated investments, at value. |
(2) |
Statement of Assets and Liabilities location: Written options outstanding, at value. |
The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations and whose primary underlying risk exposure is equity price risk for the six months ended June 30, 2021 was as follows:
Derivative |
Realized Gain (Loss)
on Derivatives Recognized in Income(1) |
Change in Unrealized
Appreciation (Depreciation) on Derivatives Recognized in Income(2) |
||||||
Purchased options |
$ | (28,929,500 | ) | $ | 270,471 | |||
Written options |
(3,754,320 | ) | (523,659 | ) | ||||
$ | (32,683,820 | ) | $ | (253,188 | ) |
(1) |
Statement of Operations location: Net realized gain (loss) Investment transactions and Written options, respectively. |
(2) |
Statement of Operations location: Change in unrealized appreciation (depreciation) Investments and Written options, respectively. |
The average number of purchased and written options contracts outstanding during the six months ended June 30, 2021, which are indicative of the volume of these derivative types, were 1,565 and 1,565 contracts, respectively.
7 Investments in Affiliated Funds
At June 30, 2021, the value of the Funds investment in affiliated funds was $5,405,121, which represents 0.8% of the Funds net assets. Transactions in affiliated funds by the Fund for the six months ended June 30, 2021 were as follows:
Name of affiliated fund |
Value,
beginning of period |
Purchases |
Sales
proceeds |
Net
realized gain (loss) |
Change in
unrealized appreciation (depreciation) |
Value, end
of period |
Dividend
income |
Units, end
of period |
||||||||||||||||||||||||
Short-Term Investments |
||||||||||||||||||||||||||||||||
Eaton Vance Cash Reserves Fund, LLC |
$ | 4,783,085 | $ | 61,970,326 | $ | (61,348,293 | ) | $ | 3 | $ | | $ | 5,405,121 | $ | 1,654 | 5,405,121 |
8 Fair Value Measurements
Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
|
Level 1 quoted prices in active markets for identical investments |
|
Level 2 other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
|
Level 3 significant unobservable inputs (including a funds own assumptions in determining the fair value of investments) |
14 |
Eaton Vance
Risk-Managed Diversified Equity Income Fund
June 30, 2021
Notes to Financial Statements continued
In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
At June 30, 2021, the hierarchy of inputs used in valuing the Funds investments and open derivative instruments, which are carried at value, were as follows:
Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks |
||||||||||||||||
Communication Services |
$ | 72,097,535 | $ | | $ | | $ | 72,097,535 | ||||||||
Consumer Discretionary |
93,169,600 | | | 93,169,600 | ||||||||||||
Consumer Staples |
37,183,433 | | | 37,183,433 | ||||||||||||
Energy |
18,168,335 | | | 18,168,335 | ||||||||||||
Financials |
79,308,083 | | | 79,308,083 | ||||||||||||
Health Care |
69,702,213 | 8,049,054 | | 77,751,267 | ||||||||||||
Industrials |
53,731,792 | | | 53,731,792 | ||||||||||||
Information Technology |
183,217,018 | | | 183,217,018 | ||||||||||||
Materials |
16,753,509 | | | 16,753,509 | ||||||||||||
Real Estate |
17,669,060 | | | 17,669,060 | ||||||||||||
Utilities |
16,019,133 | | | 16,019,133 | ||||||||||||
Total Common Stocks |
$ | 657,019,711 | $ | 8,049,054 | * | $ | | $ | 665,068,765 | |||||||
Short-Term Investments |
$ | | $ | 5,405,121 | $ | | $ | 5,405,121 | ||||||||
Purchased Put Options |
1,023,050 | | | 1,023,050 | ||||||||||||
Total Investments |
$ | 658,042,761 | $ | 13,454,175 | $ | | $ | 671,496,936 | ||||||||
Liability Description |
||||||||||||||||
Written Call Options |
$ | (5,041,875 | ) | $ | | $ | | $ | (5,041,875 | ) | ||||||
Total |
$ | (5,041,875 | ) | $ | | $ | | $ | (5,041,875 | ) |
* |
Includes foreign equity securities whose values were adjusted to reflect market trading of comparable securities or other correlated instruments that occurred after the close of trading in their applicable foreign markets. |
9 Risks and Uncertainties
Pandemic Risk
An outbreak of respiratory disease caused by a novel coronavirus was first detected in China in late 2019 and subsequently spread internationally. This coronavirus has resulted in closing borders, enhanced health screenings, changes to healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. Health crises caused by outbreaks, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and economic risks and disrupt normal market conditions and operations. The impact of this outbreak has negatively affected the worldwide economy, the economies of individual countries, individual companies, and the market in general, and may continue to do so in significant and unforeseen ways, as may other epidemics and pandemics that may arise in the future. Any such impact could adversely affect the Funds performance, or the performance of the securities in which the Fund invests.
15 |
Eaton Vance
Risk-Managed Diversified Equity Income Fund
June 30, 2021
Joint Special Meeting of Shareholders (Unaudited)
The Fund held a Joint Special Meeting of Shareholders (the Special Meeting) with certain other Eaton Vance closed-end funds on January 7, 2021 and adjourned until January 22, 2021 for the following purpose: approval of a new investment advisory agreement with EVM (Proposal 1). The shareholder meeting results are as follows:
Number of Shares(1) | ||||||||||||||||
For | Against | Abstain(2) |
Broker
Non-Votes(2) |
|||||||||||||
Proposal 1 |
31,849,471 | 874,241 | 2,151,181 | 0 |
(1) |
Fractional shares were voted proportionately. |
(2) |
All shares that were voted and votes to abstain were counted towards establishing a quorum, as were broker non-votes. (Broker non-votes are shares for which a broker returns a proxy but for which (i) the beneficial owner has not voted and (ii) the broker holding the shares does not have discretionary authority to vote on the particular matter.) Abstentions and broker non-votes had the effect of a negative vote on the Proposal. Broker non-votes were not expected with respect to the Proposal because brokers are required to receive instructions from the beneficial owners or persons entitled to vote in order to submit proxies. |
16 |
Eaton Vance
Risk-Managed Diversified Equity Income Fund
June 30, 2021
Annual Meeting of Shareholders (Unaudited)
The Fund held its Annual Meeting of Shareholders on April 15, 2021. The following action was taken by the shareholders:
Proposal 1: The election of George J. Gorman, William H. Park, Helen Frame Peters and Susan J. Sutherland as Class II Trustees of the Fund, each for a three-year term ending in 2024.
Nominee for Trustee |
Number of Shares | |||||||
For | Withheld | |||||||
George J. Gorman |
43,101,085 | 8,418,559 | ||||||
William H. Park |
43,073,986 | 8,445,658 | ||||||
Helen Frame Peters |
43,049,228 | 8,470,416 | ||||||
Susan J. Sutherland |
43,071,164 | 8,448,480 |
17 |
Eaton Vance
Risk-Managed Diversified Equity Income Fund
June 30, 2021
Officers
Edward J. Perkin
President
Deidre E. Walsh
Vice President and Chief Legal Officer
James F. Kirchner
Treasurer
Kimberly M. Roessiger
Secretary
Richard F. Froio
Chief Compliance Officer
Trustees
George J. Gorman
Chairperson
Thomas E. Faust Jr.*
Mark R. Fetting
Cynthia E. Frost
Valerie A. Mosley
William H. Park
Helen Frame Peters
Keith Quinton
Marcus L. Smith
Susan J. Sutherland
Scott E. Wennerholm
* |
Interested Trustee |
18 |
Eaton Vance Funds
Privacy Notice | April 2021 |
FACTS |
WHAT DOES EATON VANCE DO WITH YOUR
PERSONAL INFORMATION? |
|
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. | |
What? |
The types of personal information we collect and share depend on the product or service you have with us. This information can include:
∎ Social Security number and income ∎ investment experience and risk tolerance ∎ checking account number and wire transfer instructions |
|
How? | All financial companies need to share customers personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers personal information; the reasons Eaton Vance chooses to share; and whether you can limit this sharing. | |
Reasons we can share your
personal information |
Does Eaton Vance share? | Can you limit this sharing? | ||
For our everyday business purposes such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No | ||
For our marketing purposes to offer our products and services to you | Yes | No | ||
For joint marketing with other financial companies | No | We dont share | ||
For our investment management affiliates everyday business purposes information about your transactions, experiences, and creditworthiness | Yes | Yes | ||
For our affiliates everyday business purposes information about your transactions and experiences | Yes | No | ||
For our affiliates everyday business purposes information about your creditworthiness | No | We dont share | ||
For our investment management affiliates to market to you | Yes | Yes | ||
For our affiliates to market to you | No | We dont share | ||
For nonaffiliates to market to you | No | We dont share |
To limit our sharing |
Call toll-free 1-800-262-1122 or email: EVPrivacy@eatonvance.com
Please note:
If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing. |
|
Questions? | Call toll-free 1-800-262-1122 or email: EVPrivacy@eatonvance.com | |
19 |
Eaton Vance Funds
Privacy Notice continued | April 2021 |
Page 2 |
20 |
Eaton Vance Funds
Delivery of Shareholder Documents. The Securities and Exchange Commission (SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called householding and it helps eliminate duplicate mailings to shareholders. American Stock Transfer & Trust Company, LLC (AST), the closed-end funds transfer agent, or your financial intermediary, may household the mailing of your documents indefinitely unless you instruct AST, or your financial intermediary, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact AST or your financial intermediary. Your instructions that householding not apply to delivery of your Eaton Vance documents will typically be effective within 30 days of receipt by AST or your financial intermediary.
Portfolio Holdings. Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) files a schedule of portfolio holdings on Part F to Form N-PORT with the SEC. Certain information filed on Form N-PORT may be viewed on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SECs website at www.sec.gov.
Proxy Voting. From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds and Portfolios Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge, upon request, by calling 1-800-262-1122 and by accessing the SECs website at www.sec.gov.
Share Repurchase Program. The Funds Board of Trustees has approved a share repurchase program authorizing the Fund to repurchase up to 10% of its common shares outstanding as of the last day of the prior calendar year in open-market transactions at a discount to net asset value. The repurchase program does not obligate the Fund to purchase a specific amount of shares. The Funds repurchase activity, including the number of shares purchased, average price and average discount to net asset value, is disclosed in the Funds annual and semi-annual reports to shareholders.
Additional Notice to Shareholders. If applicable, a Fund may also redeem or purchase its outstanding preferred shares in order to maintain compliance with regulatory requirements, borrowing or rating agency requirements or for other purposes as it deems appropriate or necessary.
Closed-End Fund Information. Eaton Vance closed-end funds make fund performance data and certain information about portfolio characteristics available on the Eaton Vance website shortly after the end of each month. Other information about the funds is available on the website. The funds net asset value per share is readily accessible on the Eaton Vance website. Portfolio holdings for the most recent month-end are also posted to the website approximately 30 days following the end of the month. This information is available at www.eatonvance.com on the fund information pages under Individual Investors Closed-End Funds.
21 |
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Investment Adviser and Administrator
Eaton Vance Management
Two International Place
Boston, MA 02110
Custodian
State Street Bank and Trust Company
State Street Financial Center, One Lincoln Street
Boston, MA 02111
Transfer Agent
American Stock Transfer & Trust Company, LLC
6201 15th Avenue
Brooklyn, NY 11219
Fund Offices
Two International Place
Boston, MA 02110
7759 6.30.21
Item 2. |
Code of Ethics |
Not required in this filing.
Item 3. |
Audit Committee Financial Expert |
Not required in this filing.
Item 4. |
Principal Accountant Fees and Services |
Not required in this filing.
Item 5. |
Audit Committee of Listed Registrants |
Not required in this filing.
Item 6. |
Schedule of Investments |
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.
Item 7. |
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not required in this filing.
Item 8. |
Portfolio Managers of Closed-End Management Investment Companies |
Not required in this filing.
Item 9. |
Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers |
No such purchases this period.
Item 10. |
Submission of Matters to a Vote of Security Holders |
No material changes.
Item 11. |
Controls and Procedures |
(a) It is the conclusion of the registrants principal executive officer and principal financial officer that the effectiveness of the registrants current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commissions rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrants principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrants internal controls over financial reporting during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting.
Item 12. |
Disclosure of Securities Lending Activities for Closed-End Management Investment Companies |
No activity to report for the registrants most recent fiscal year end.
Item 13. |
Exhibits |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Eaton Vance Risk-Managed Diversified Equity Income Fund
By: |
/s/ Edward J. Perkin |
|
Edward J. Perkin | ||
President | ||
Date: | August 19, 2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: |
/s/ James F. Kirchner |
|
James F. Kirchner | ||
Treasurer | ||
Date: | August 19, 2021 | |
By: |
/s/ Edward J. Perkin |
|
Edward J. Perkin | ||
President | ||
Date: | August 19, 2021 |
Eaton Vance Risk-Managed Diversified Equity Income Fund
FORM N-CSR
Exhibit 13(a)(2)(i)
CERTIFICATION
I, James F. Kirchner, certify that:
1. I have reviewed this report on Form N-CSR of Eaton Vance Risk-Managed Diversified Equity Income Fund;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: August 19, 2021 |
/s/ James F. Kirchner |
|||||
James F. Kirchner | ||||||
Treasurer |
Eaton Vance Risk-Managed Diversified Equity Income Fund
FORM N-CSR
Exhibit 13(a)(2)(ii)
CERTIFICATION
I, Edward J. Perkin, certify that:
1. I have reviewed this report on Form N-CSR of Eaton Vance Risk-Managed Diversified Equity Income Fund;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: August 19, 2021 |
/s/ Edward J. Perkin |
|||||
Edward J. Perkin | ||||||
President |
Form N-CSR Item 13(b) Exhibit
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
The undersigned hereby certify in their capacity as Treasurer and President, respectively, of Eaton Vance Risk-Managed Diversified Equity Income Fund (the Fund), that:
(a) |
The Semiannual Report of the Fund on Form N-CSR for the period ended June 30, 2021 (the Report) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, amended; and |
(b) |
The information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Fund for such period. |
A signed original of this written statement required by section 906 has been provided to the Fund and will be retained by the Fund and furnished to the Securities and Exchange Commission or its staff upon request.
Eaton Vance Risk-Managed Diversified Equity Income Fund
Date: August 19, 2021
/s/ James F. Kirchner
James F. Kirchner
Treasurer
Date: August 19, 2021
/s/ Edward J. Perkin
Edward J. Perkin
President
Form N-CSR Item 13(c) Exhibit
Dear Eaton Vance Fund Shareholder:
This notice provides shareholders of the Eaton Vance Risk-Managed Diversified Equity Income Fund (NYSE: ETJ) with important information concerning the distribution declared in January 2021. You are receiving this notice as a requirement of the Funds managed distribution plan (Plan). The Board of Trustees approved the implementation of the Plan to make monthly cash distributions to common shareholders, stated in terms of a fixed amount per common share. This information is sent to you for informational purposes only and is an estimate of the sources of the January distribution. It is not determinative of the tax character of the Funds distributions for the 2021 calendar year.
The amounts and sources of distributions reported in this notice are estimates, are not being provided for tax reporting purposes and the distribution may later be determined to be from other sources including realized short-term gains, long-term gains, to the extent permitted by law, and return of capital. The actual amounts and sources for tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Distribution Period: January 2021
Distribution Amount per Common Share: $0.0760
The following table sets forth an estimate of the sources of the Funds January distribution and its cumulative distributions paid this fiscal year to date. Amounts are expressed on a per common share basis and as a percentage of the distribution amount.
Eaton Vance Risk-Managed Diversified Equity Income Fund |
||||||||||||||||
Source |
Current
Distribution |
% of Current
Distribution |
Cumulative
Distributions for the Fiscal Year-to-Date1 |
% of the Cumulative
Distributions for the Fiscal Year-to-Date1 |
||||||||||||
Net Investment Income |
$ | 0.0011 | 1.4 | % | $ | 0.0011 | 1.4 | % | ||||||||
Net Realized Short-Term Capital Gains |
$ | 0.0000 | 0.0 | % | $ | 0.0000 | 0.0 | % | ||||||||
Net Realized Long-Term Capital Gains |
$ | 0.0000 | 0.0 | % | $ | 0.0000 | 0.0 | % | ||||||||
Return of Capital or Other Capital Source(s) |
$ | 0.0749 | 98.6 | % | $ | 0.0749 | 98.6 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total per common share |
$ | 0.0760 | 100.0 | % | $ | 0.0760 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
1 |
The Funds fiscal year is January 1, 2021 to December 31, 2021 |
IMPORTANT DISCLOSURE: You should not draw any conclusions about the Funds investment performance from the amount of this distribution or from the terms of the Funds Plan. The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income. The amounts and sources of distributions reported in this Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and/or tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Set forth in the table below is information relating to the Funds performance based on its net asset value (NAV) for certain periods.
Average annual total return at NAV for the 5-year period ended on December 31, 20201 |
8.50 | % | ||
Annualized current distribution rate expressed as a percentage of NAV as of December 31, 20202 |
9.05 | % | ||
Cumulative total return at NAV for the fiscal year through December 31, 20203 |
18.78 | % | ||
Cumulative fiscal year to date distribution rate as a percentage of NAV as of December 31, 20204 |
9.05 | % |
1 |
Average annual total return at NAV represents the change in NAV of the Fund, with all distributions reinvested, for the 5-year period ended on December 31, 2020. |
2 |
The annualized current distribution rate is the cumulative distribution rate annualized as a percentage of the Funds NAV as of December 31, 2020. |
3 |
Cumulative total return at NAV is the percentage change in the Funds NAV for the period from the beginning of its fiscal year to December 31, 2020 including distributions paid and assuming reinvestment of those distributions. |
4 |
Cumulative fiscal year distribution rate for the period from the beginning of its fiscal year to December 31, 2020 measured on the dollar value of distributions in the year-to-date period as a percentage of the Funds NAV as of December 31, 2020. |
If you have any questions regarding this information, please contact your investment advisor or an Eaton Vance Investor Services associate at 1-866-328-6681. Our associates are available to assist you Monday-Friday 8:30 a.m. to 5:30 p.m., Eastern Time.
NOTE: This correspondence is for informational purposes only and should not be relied upon to project the tax character of actual Fund distributions for the 2021 calendar year.
NO ACTION IS REQUIRED ON YOUR PART.
Eaton Vance Risk-Managed Diversified Equity Income Fund
January 29, 2021
Dear Eaton Vance Fund Shareholder:
This notice provides shareholders of the Eaton Vance Risk-Managed Diversified Equity Income Fund (NYSE: ETJ) with important information concerning the distribution declared in February 2021. You are receiving this notice as a requirement of the Funds managed distribution plan (Plan). The Board of Trustees approved the implementation of the Plan to make monthly cash distributions to common shareholders, stated in terms of a fixed amount per common share. This information is sent to you for informational purposes only and is an estimate of the sources of the February distribution. It is not determinative of the tax character of the Funds distributions for the 2021 calendar year.
The amounts and sources of distributions reported in this notice are estimates, are not being provided for tax reporting purposes and the distribution may later be determined to be from other sources including realized short-term gains, long-term gains, to the extent permitted by law, and return of capital. The actual amounts and sources for tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Distribution Period: February 2021
Distribution Amount per Common Share: $0.0760
The following table sets forth an estimate of the sources of the Funds February distribution and its cumulative distributions paid this fiscal year to date. Amounts are expressed on a per common share basis and as a percentage of the distribution amount.
Eaton Vance Risk-Managed Diversified Equity Income Fund |
||||||||||||||||
Source |
Current
Distribution |
% of Current
Distribution |
Cumulative
Distributions for the Fiscal Year-to-Date1 |
% of the Cumulative
Distributions for the Fiscal Year-to-Date1 |
||||||||||||
Net Investment Income |
$ | 0.0041 | 5.4 | % | $ | 0.0052 | 3.4 | % | ||||||||
Net Realized Short-Term Capital Gains |
$ | 0.0000 | 0.0 | % | $ | 0.0000 | 0.0 | % | ||||||||
Net Realized Long-Term Capital Gains |
$ | 0.0000 | 0.0 | % | $ | 0.0000 | 0.0 | % | ||||||||
Return of Capital or Other Capital Source(s) |
$ | 0.0719 | 94.6 | % | $ | 0.1468 | 96.6 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total per common share |
$ | 0.0760 | 100.0 | % | $ | 0.1520 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
1 |
The Funds fiscal year is January 1, 2021 to December 31, 2021 |
IMPORTANT DISCLOSURE: You should not draw any conclusions about the Funds investment performance from the amount of this distribution or from the terms of the Funds Plan. The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income. The amounts and sources of distributions reported in this Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and/or tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Set forth in the table below is information relating to the Funds performance based on its net asset value (NAV) for certain periods.
Average annual total return at NAV for the 5-year period ended on January 31, 20211 |
9.05 | % | ||
Annualized current distribution rate expressed as a percentage of NAV as of January 31, 20212 |
9.13 | % | ||
Cumulative total return at NAV for the fiscal year through January 31, 20213 |
-0.14 | % | ||
Cumulative fiscal year to date distribution rate as a percentage of NAV as of January 31, 20214 |
0.76 | % |
1 |
Average annual total return at NAV represents the change in NAV of the Fund, with all distributions reinvested, for the 5-year period ended on January 31, 2021. |
2 |
The annualized current distribution rate is the cumulative distribution rate annualized as a percentage of the Funds NAV as of January 31, 2021. |
3 |
Cumulative total return at NAV is the percentage change in the Funds NAV for the period from the beginning of its fiscal year to January 31, 2021 including distributions paid and assuming reinvestment of those distributions. |
4 |
Cumulative fiscal year distribution rate for the period from the beginning of its fiscal year to January 31, 2021 measured on the dollar value of distributions in the year-to-date period as a percentage of the Funds NAV as of January 31, 2021. |
If you have any questions regarding this information, please contact your investment advisor or an Eaton Vance Investor Services associate at 1-866-328-6681. Our associates are available to assist you Monday-Friday 8:30 a.m. to 5:30 p.m., Eastern Time.
NOTE: This correspondence is for informational purposes only and should not be relied upon to project the tax character of actual Fund distributions for the 2021 calendar year.
NO ACTION IS REQUIRED ON YOUR PART.
Eaton Vance Risk-Managed Diversified Equity Income Fund
February 26, 2021
Dear Eaton Vance Fund Shareholder:
This notice provides shareholders of the Eaton Vance Risk-Managed Diversified Equity Income Fund (NYSE: ETJ) with important information concerning the distribution declared in March 2021. You are receiving this notice as a requirement of the Funds managed distribution plan (Plan). The Board of Trustees approved the implementation of the Plan to make monthly cash distributions to common shareholders, stated in terms of a fixed amount per common share. This information is sent to you for informational purposes only and is an estimate of the sources of the March distribution. It is not determinative of the tax character of the Funds distributions for the 2021 calendar year.
The amounts and sources of distributions reported in this notice are estimates, are not being provided for tax reporting purposes and the distribution may later be determined to be from other sources including realized short-term gains, long-term gains, to the extent permitted by law, and return of capital. The actual amounts and sources for tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Distribution Period: March 2021
Distribution Amount per Common Share: $0.0760
The following table sets forth an estimate of the sources of the Funds March distribution and its cumulative distributions paid this fiscal year to date. Amounts are expressed on a per common share basis and as a percentage of the distribution amount.
Eaton Vance Risk-Managed Diversified Equity Income Fund |
||||||||||||||||
Source |
Current
Distribution |
% of Current
Distribution |
Cumulative
Distributions for the Fiscal Year-to-Date1 |
% of the Cumulative
Distributions for the Fiscal Year-to-Date1 |
||||||||||||
Net Investment Income |
$ | 0.0026 | 3.4 | % | $ | 0.0078 | 3.4 | % | ||||||||
Net Realized Short-Term Capital Gains |
$ | 0.0000 | 0.0 | % | $ | 0.0000 | 0.0 | % | ||||||||
Net Realized Long-Term Capital Gains |
$ | 0.0096 | 12.6 | % | $ | 0.0096 | 4.2 | % | ||||||||
Return of Capital or Other Capital Source(s) |
$ | 0.0638 | 84.0 | % | $ | 0.2106 | 92.4 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total per common share |
$ | 0.0760 | 100.0 | % | $ | 0.2280 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
1 |
The Funds fiscal year is January 1, 2021 to December 31, 2021 |
IMPORTANT DISCLOSURE: You should not draw any conclusions about the Funds investment performance from the amount of this distribution or from the terms of the Funds Plan. The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income. The amounts and sources of distributions reported in this Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and/or tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Set forth in the table below is information relating to the Funds performance based on its net asset value (NAV) for certain periods.
Average annual total return at NAV for the 5-year period ended on February 28, 20211 |
10.10 | % | ||
Annualized current distribution rate expressed as a percentage of NAV as of February 28, 20212 |
9.04 | % | ||
Cumulative total return at NAV for the fiscal year through February 28, 20213 |
1.62 | % | ||
Cumulative fiscal year to date distribution rate as a percentage of NAV as of February 28, 20214 |
1.51 | % |
1 |
Average annual total return at NAV represents the change in NAV of the Fund, with all distributions reinvested, for the 5-year period ended on February 28, 2021. |
2 |
The annualized current distribution rate is the cumulative distribution rate annualized as a percentage of the Funds NAV as of February 28, 2021. |
3 |
Cumulative total return at NAV is the percentage change in the Funds NAV for the period from the beginning of its fiscal year to February 28, 2021 including distributions paid and assuming reinvestment of those distributions. |
4 |
Cumulative fiscal year distribution rate for the period from the beginning of its fiscal year to February 28, 2021 measured on the dollar value of distributions in the year-to-date period as a percentage of the Funds NAV as of February 28, 2021. |
If you have any questions regarding this information, please contact your investment advisor or an Eaton Vance Investor Services associate at 1-866-328-6681. Our associates are available to assist you Monday-Friday 8:30 a.m. to 5:30 p.m., Eastern Time.
NOTE: This correspondence is for informational purposes only and should not be relied upon to project the tax character of actual Fund distributions for the 2021 calendar year.
NO ACTION IS REQUIRED ON YOUR PART.
Eaton Vance Risk-Managed Diversified Equity Income Fund
March 31, 2021
Dear Eaton Vance Fund Shareholder:
This notice provides shareholders of the Eaton Vance Risk-Managed Diversified Equity Income Fund (NYSE: ETJ) with important information concerning the distribution declared in April 2021. You are receiving this notice as a requirement of the Funds managed distribution plan (Plan). The Board of Trustees approved the implementation of the Plan to make monthly cash distributions to common shareholders, stated in terms of a fixed amount per common share. This information is sent to you for informational purposes only and is an estimate of the sources of the April distribution. It is not determinative of the tax character of the Funds distributions for the 2021 calendar year.
The amounts and sources of distributions reported in this notice are estimates, are not being provided for tax reporting purposes and the distribution may later be determined to be from other sources including realized short-term gains, long-term gains, to the extent permitted by law, and return of capital. The actual amounts and sources for tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Distribution Period: April 2021
Distribution Amount per Common Share: $0.0760
The following table sets forth an estimate of the sources of the Funds April distribution and its cumulative distributions paid this fiscal year to date. Amounts are expressed on a per common share basis and as a percentage of the distribution amount.
Eaton Vance Risk-Managed Diversified Equity Income Fund |
||||||||||||||||
Source |
Current
Distribution |
% of Current
Distribution |
Cumulative
Distributions for the Fiscal Year-to-Date1 |
% of the Cumulative
Distributions for the Fiscal Year-to-Date1 |
||||||||||||
Net Investment Income |
$ | 0.0024 | 3.2 | % | $ | 0.0103 | 3.4 | % | ||||||||
Net Realized Short-Term Capital Gains |
$ | 0.0000 | 0.0 | % | $ | 0.0000 | 0.0 | % | ||||||||
Net Realized Long-Term Capital Gains |
$ | 0.0000 | 0.0 | % | $ | 0.0000 | 0.0 | % | ||||||||
Return of Capital or Other Capital Source(s) |
$ | 0.0736 | 96.8 | % | $ | 0.2937 | 96.6 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total per common share |
$ | 0.0760 | 100.0 | % | $ | 0.3040 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
1 |
The Funds fiscal year is January 1, 2021 to December 31, 2021 |
IMPORTANT DISCLOSURE: You should not draw any conclusions about the Funds investment performance from the amount of this distribution or from the terms of the Funds Plan. The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income. The amounts and sources of distributions reported in this Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and/or tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Set forth in the table below is information relating to the Funds performance based on its net asset value (NAV) for certain periods.
Average annual total return at NAV for the 5-year period ended on March 31, 20211 |
9.99 | % | ||
Annualized current distribution rate expressed as a percentage of NAV as of March 31, 20212 |
8.92 | % | ||
Cumulative total return at NAV for the fiscal year through March 31, 20213 |
3.69 | % | ||
Cumulative fiscal year to date distribution rate as a percentage of NAV as of March 31, 20214 |
2.23 | % |
1 |
Average annual total return at NAV represents the change in NAV of the Fund, with all distributions reinvested, for the 5-year period ended on March 31, 2021. |
2 |
The annualized current distribution rate is the cumulative distribution rate annualized as a percentage of the Funds NAV as of March 31, 2021. |
3 |
Cumulative total return at NAV is the percentage change in the Funds NAV for the period from the beginning of its fiscal year to March 31, 2021 including distributions paid and assuming reinvestment of those distributions. |
4 |
Cumulative fiscal year distribution rate for the period from the beginning of its fiscal year to March 31, 2021 measured on the dollar value of distributions in the year-to-date period as a percentage of the Funds NAV as of March 31, 2021. |
If you have any questions regarding this information, please contact your investment advisor or an Eaton Vance Investor Services associate at 1-866-328-6681. Our associates are available to assist you Monday-Friday 8:30 a.m. to 5:30 p.m., Eastern Time.
NOTE: This correspondence is for informational purposes only and should not be relied upon to project the tax character of actual Fund distributions for the 2021 calendar year.
NO ACTION IS REQUIRED ON YOUR PART.
Eaton Vance Risk-Managed Diversified Equity Income Fund
April 30, 2021
Dear Eaton Vance Fund Shareholder:
This notice provides shareholders of the Eaton Vance Risk-Managed Diversified Equity Income Fund (NYSE: ETJ) with important information concerning the distribution declared in May 2021. You are receiving this notice as a requirement of the Funds managed distribution plan (Plan). The Board of Trustees approved the implementation of the Plan to make monthly cash distributions to common shareholders, stated in terms of a fixed amount per common share. This information is sent to you for informational purposes only and is an estimate of the sources of the May distribution. It is not determinative of the tax character of the Funds distributions for the 2021 calendar year.
The amounts and sources of distributions reported in this notice are estimates, are not being provided for tax reporting purposes and the distribution may later be determined to be from other sources including realized short-term gains, long-term gains, to the extent permitted by law, and return of capital. The actual amounts and sources for tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Distribution Period: May 2021
Distribution Amount per Common Share: $0.0760
The following table sets forth an estimate of the sources of the Funds May distribution and its cumulative distributions paid this fiscal year to date. Amounts are expressed on a per common share basis and as a percentage of the distribution amount.
Eaton Vance Risk-Managed Diversified Equity Income Fund |
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Source |
Current
Distribution |
% of Current
Distribution |
Cumulative
Distributions for the Fiscal Year-to-Date1 |
% of the Cumulative
Distributions for the Fiscal Year-to-Date1 |
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Net Investment Income |
$ | 0.0022 | 2.9 | % | $ | 0.0125 | 3.3 | % | ||||||||
Net Realized Short-Term Capital Gains |
$ | 0.0000 | 0.0 | % | $ | 0.0000 | 0.0 | % | ||||||||
Net Realized Long-Term Capital Gains |
$ | 0.0044 | 5.8 | % | $ | 0.0044 | 1.2 | % | ||||||||
Return of Capital or Other Capital Source(s) |
$ | 0.0694 | 91.3 | % | $ | 0.3631 | 95.5 | % | ||||||||
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Total per common share |
$ | 0.0760 | 100.0 | % | $ | 0.3800 | 100.0 | % | ||||||||
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1 |
The Funds fiscal year is January 1, 2021 to December 31, 2021 |
IMPORTANT DISCLOSURE: You should not draw any conclusions about the Funds investment performance from the amount of this distribution or from the terms of the Funds Plan. The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income. The amounts and sources of distributions reported in this Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and/or tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Set forth in the table below is information relating to the Funds performance based on its net asset value (NAV) for certain periods.
Average annual total return at NAV for the 5-year period ended on April 30, 20211 |
10.41 | % | ||
Annualized current distribution rate expressed as a percentage of NAV as of April 30, 20212 |
8.80 | % | ||
Cumulative total return at NAV for the fiscal year through April 30, 20213 |
5.88 | % | ||
Cumulative fiscal year to date distribution rate as a percentage of NAV as of April 30, 20214 |
2.93 | % |
1 |
Average annual total return at NAV represents the change in NAV of the Fund, with all distributions reinvested, for the 5-year period ended on April 30, 2021. |
2 |
The annualized current distribution rate is the cumulative distribution rate annualized as a percentage of the Funds NAV as of April 30, 2021. |
3 |
Cumulative total return at NAV is the percentage change in the Funds NAV for the period from the beginning of its fiscal year to April 30, 2021 including distributions paid and assuming reinvestment of those distributions. |
4 |
Cumulative fiscal year distribution rate for the period from the beginning of its fiscal year to April 30, 2021 measured on the dollar value of distributions in the year-to-date period as a percentage of the Funds NAV as of April 30, 2021. |
If you have any questions regarding this information, please contact your investment advisor or an Eaton Vance Investor Services associate at 1-866-328-6681. Our associates are available to assist you Monday-Friday 8:30 a.m. to 5:30 p.m., Eastern Time.
NOTE: This correspondence is for informational purposes only and should not be relied upon to project the tax character of actual Fund distributions for the 2021 calendar year.
NO ACTION IS REQUIRED ON YOUR PART.
Eaton Vance Risk-Managed Diversified Equity Income Fund
May 28, 2021
Dear Eaton Vance Fund Shareholder:
This notice provides shareholders of the Eaton Vance Risk-Managed Diversified Equity Income Fund (NYSE: ETJ) with important information concerning the distribution declared in June 2021. You are receiving this notice as a requirement of the Funds managed distribution plan (Plan). The Board of Trustees approved the implementation of the Plan to make monthly cash distributions to common shareholders, stated in terms of a fixed amount per common share. This information is sent to you for informational purposes only and is an estimate of the sources of the June distribution. It is not determinative of the tax character of the Funds distributions for the 2021 calendar year.
The amounts and sources of distributions reported in this notice are estimates, are not being provided for tax reporting purposes and the distribution may later be determined to be from other sources including realized short-term gains, long-term gains, to the extent permitted by law, and return of capital. The actual amounts and sources for tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Distribution Period: June 2021
Distribution Amount per Common Share: $0.0760
The following table sets forth an estimate of the sources of the Funds June distribution and its cumulative distributions paid this fiscal year to date. Amounts are expressed on a per common share basis and as a percentage of the distribution amount.
Eaton Vance Risk-Managed Diversified Equity Income Fund |
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Source |
Current
Distribution |
% of Current
Distribution |
Cumulative
Distributions for the Fiscal Year-to-Date1 |
% of the Cumulative
Distributions for the Fiscal Year-to-Date1 |
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Net Investment Income |
$ | 0.0022 | 2.9 | % | $ | 0.0146 | 3.2 | % | ||||||||
Net Realized Short-Term Capital Gains |
$ | 0.0000 | 0.0 | % | $ | 0.0000 | 0.0 | % | ||||||||
Net Realized Long-Term Capital Gains |
$ | 0.0094 | 12.4 | % | $ | 0.0137 | 3.0 | % | ||||||||
Return of Capital or Other Capital Source(s) |
$ | 0.0644 | 84.7 | % | $ | 0.4277 | 93.8 | % | ||||||||
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Total per common share |
$ | 0.0760 | 100.0 | % | $ | 0.4560 | 100.0 | % | ||||||||
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1 |
The Funds fiscal year is January 1, 2021 to December 31, 2021 |
IMPORTANT DISCLOSURE: You should not draw any conclusions about the Funds investment performance from the amount of this distribution or from the terms of the Funds Plan. The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income. The amounts and sources of distributions reported in this Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and/or tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Set forth in the table below is information relating to the Funds performance based on its net asset value (NAV) for certain periods.
Average annual total return at NAV for the 5-year period ended on May 31, 20211 |
10.21 | % | ||
Annualized current distribution rate expressed as a percentage of NAV as of May 31, 20212 |
8.84 | % | ||
Cumulative total return at NAV for the fiscal year through May 31, 20213 |
6.23 | % | ||
Cumulative fiscal year to date distribution rate as a percentage of NAV as of May 31, 20214 |
3.68 | % |
1 |
Average annual total return at NAV represents the change in NAV of the Fund, with all distributions reinvested, for the 5-year period ended on May 31, 2021. |
2 |
The annualized current distribution rate is the cumulative distribution rate annualized as a percentage of the Funds NAV as of May 31, 2021. |
3 |
Cumulative total return at NAV is the percentage change in the Funds NAV for the period from the beginning of its fiscal year to May 31, 2021 including distributions paid and assuming reinvestment of those distributions. |
4 |
Cumulative fiscal year distribution rate for the period from the beginning of its fiscal year to May 31, 2021 measured on the dollar value of distributions in the year-to-date period as a percentage of the Funds NAV as of May 31, 2021. |
If you have any questions regarding this information, please contact your investment advisor or an Eaton Vance Investor Services associate at 1-866-328-6681. Our associates are available to assist you Monday-Friday 8:30 a.m. to 5:30 p.m., Eastern Time.
NOTE: This correspondence is for informational purposes only and should not be relied upon to project the tax character of actual Fund distributions for the 2021 calendar year.
NO ACTION IS REQUIRED ON YOUR PART.
Eaton Vance Risk-Managed Diversified Equity Income Fund
June 30, 2021