0001193125-19-229391.txt : 20190826 0001193125-19-229391.hdr.sgml : 20190826 20190826163835 ACCESSION NUMBER: 0001193125-19-229391 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20190630 FILED AS OF DATE: 20190826 DATE AS OF CHANGE: 20190826 EFFECTIVENESS DATE: 20190826 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Eaton Vance Risk-Managed Diversified Equity Income Fund CENTRAL INDEX KEY: 0001395325 IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-22044 FILM NUMBER: 191053359 BUSINESS ADDRESS: STREET 1: TWO INTERNATIONAL PLACE CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 617-482-8260 MAIL ADDRESS: STREET 1: TWO INTERNATIONAL PLACE CITY: BOSTON STATE: MA ZIP: 02110 FORMER COMPANY: FORMER CONFORMED NAME: Eaton Vance Risk-Managed Equity Income Fund DATE OF NAME CHANGE: 20070404 N-CSRS 1 d790341dncsrs.htm EATON VANCE RISK-MANAGED DIVERSIFIED EQUITY INCOME FUND Eaton Vance Risk-Managed Diversified Equity Income Fund

 

 

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)

 

 

Maureen A. Gemma

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

 

 

(617) 482-8260

(Registrant’s Telephone Number)

December 31

Date of Fiscal Year End

June 30, 2019

Date of Reporting Period

 

 

 


Item 1. Reports to Stockholders

 


LOGO

 

 

Eaton Vance

Risk-Managed Diversified Equity Income Fund (ETJ)

Semiannual Report

June 30, 2019

 

 

 

 

Important Note. Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (funds.eatonvance.com/closed-end-fund-and-term-trust-documents.php), and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. If you hold shares at the Fund’s transfer agent, American Stock Transfer & Trust Company, LLC (“AST”), you may elect to receive shareholder reports and other communications from the Fund electronically by contacting AST. If you own your shares through a financial intermediary (such as a broker-dealer or bank), you must contact your financial intermediary to sign up.

You may elect to receive all future Fund shareholder reports in paper free of charge. If you hold shares at AST, you can inform AST that you wish to continue receiving paper copies of your shareholder reports by calling 1-866-439-6787. If you own these shares through a financial intermediary, you must contact your financial intermediary or follow instructions included with this disclosure, if applicable, to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with AST or to all funds held through your financial intermediary, as applicable.

 

LOGO


 

Commodity Futures Trading Commission Registration. Effective December 31, 2012, the Commodity Futures Trading Commission (“CFTC”) adopted certain regulatory changes 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 Fund has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act. 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 Fund’s adviser is registered with the CFTC as a commodity pool operator and 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 Fund’s 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 Fund’s 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 Fund’s 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 Fund’s 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 Fund’s 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, 2019

Eaton Vance

Risk-Managed Diversified Equity Income Fund

Table of Contents

 

Performance

     2  

Fund Profile

     2  

Fund Snapshot

     3  

Endnotes and Additional Disclosures

     4  

Financial Statements

     5  

Annual Meeting of Shareholders

     16  

Board of Trustees’ Contract Approval

     17  

Officers and Trustees

     20  

Important Notices

     21  


Eaton Vance

Risk-Managed Diversified Equity Income Fund

June 30, 2019

 

Performance1

 

Portfolio Manager Michael A. Allison, CFA

 

% Average Annual Total Returns

   Inception Date      Six Months      One Year      Five Years      Ten Years  

Fund at NAV

     07/31/2007        10.48      7.22      4.50      5.33

Fund at Market Price

            21.65        9.94        6.46        4.76  

S&P 500® Index

            18.54      10.42      10.71      14.69

Cboe S&P 500 95–110 Collar IndexSM

            16.09        18.55        7.82        8.21  
              
% Premium/Discount to NAV2                                        
                 –0.11
              
Distributions3                                        

Total Distributions per share for the period

               $ 0.456  

Distribution Rate at NAV

                 9.69

Distribution Rate at Market Price

                 9.70

Fund Profile

 

Sector Allocation (% of total investments)4

 

 

LOGO

Top 10 Holdings (% of total investments)4

 

 

Microsoft Corp.

     5.5

Amazon.com, Inc.

     3.9  

JPMorgan Chase & Co.

     3.5  

Apple, Inc.

     3.3  

Visa, Inc., Class A

     3.3  

Verizon Communications, Inc.

     3.0  

Bank of America Corp.

     2.9  

Johnson & Johnson

     2.5  

Danaher Corp.

     2.5  

Caterpillar, Inc.

     2.4  

Total

     32.8
 

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested and include management fees and other expenses. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance 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, 2019

 

Fund Snapshot

 

 

Objective   

The primary investment objective is to provide current income and gains, with a secondary objective of capital appreciation.

 

Strategy    The Fund invests in a diversified portfolio of common stocks and purchases out-of-the-money, short-dated S&P 500® Index put options and sells out-of-the-money S&P 500® Index call options of the same term as the put options with roll dates that are staggered across the options portfolio. The Fund evaluates returns on an after tax basis and seeks to minimize and defer federal income taxes incurred by shareholders in connection with their investment in the Fund.

 

Options Strategy

   Write Index Covered Calls; Buy Index Puts

Equity Benchmark1

   S&P 500® Index

Morningstar Category

   Option Writing

Distribution Frequency

   Monthly
Common Stock Portfolio     

Positions Held

   53

% US / Non-US

   100.0/0.0

Average Market Cap

   $247.4 Billion
Call Options Written     

% of Stock Portfolio

   97%

Average Days to Expiration

   16 days

% In the Money

   –0.1%
Put Options Purchased     

% of Stock Portfolio

   97%

Average Days to Expiration

   16 days

% Out of the Money

   6.2%

The following terms as used in the Fund snapshot:

Average Market Cap: An indicator of the size of the companies in which the Fund invests and is the sum of each security’s weight in the portfolio multiplied by its market cap. Market Cap is determined by multiplying the price of a share of a company’s common stock by the number of shares outstanding.

Call Option: For an index call option, the buyer has the right to receive from the seller (or writer) a cash payment at the option expiration date equal to any positive difference between the value of the index at contract expiration and the exercise price. The buyer of a call option makes a cash payment (premium) to the seller (writer) of the option upon entering into the option contract.

Covered Call Strategy: A strategy of owning a portfolio of common stocks and writing call options on all or a portion of such stocks to generate current earnings from option premium.

Index Put Option: Gives the option buyer the right to receive from the option seller (writer) a cash payment if the value of the index exceeds a specified value (exercise price or strike price) on or before a specified date (option expiration date). The buyer makes a cash payment (premium) to the seller of the option upon entering into the contract.

In the Money: For a call option on an index, the extent to which the current value of the index exceeds the exercise price of the option.

Out of the Money: For an index put option, the extent to which the current value of the index exceeds the exercise price of the option.

See Endnotes and Additional Disclosures in this report.

 

 

 

  3  


Eaton Vance

Risk-Managed Diversified Equity Income Fund

June 30, 2019

 

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 95–110 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. Performance since inception for an index, if presented, is the performance since the Fund’s or oldest share class’ inception, as applicable.

 

2 

The shares of the Fund often trade at a discount or premium from their net asset value. The discount or premium of the Fund 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 http://eatonvance.com/closedend.

 

3 

The Distribution Rate is based on the Fund’s last regular distribution per share in the period (annualized) divided by the Fund’s NAV or market price at the end of the period. The Fund’s 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 Fund’s webpage available at eatonvance.com. In recent years, a significant portion of the Fund’s distributions has been characterized as a return of capital. The Fund’s distributions are determined by the investment adviser based on its current assessment of the Fund’s 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 Fund’s option positions. Excludes cash and cash equivalents.

 

  

Fund snapshot and profile subject to change due to active management.

 

 

  4  


Eaton Vance

Risk-Managed Diversified Equity Income Fund

June 30, 2019

 

Portfolio of Investments (Unaudited)

 

 

Common Stocks — 100.3%(1)

 

Security   Shares     Value  
Auto Components — 1.5%  

Aptiv PLC

    110,347     $ 8,919,348  
            $ 8,919,348  
Banks — 7.7%  

Bank of America Corp.

    598,620     $ 17,359,980  

JPMorgan Chase & Co.

    188,649       21,090,958  

PNC Financial Services Group, Inc. (The)

    55,686       7,644,574  
            $ 46,095,512  
Beverages — 3.0%  

Constellation Brands, Inc., Class A

    44,460     $ 8,755,952  

PepsiCo, Inc.

    68,915       9,036,824  
            $ 17,792,776  
Biotechnology — 3.0%  

Gilead Sciences, Inc.

    124,493     $ 8,410,747  

Vertex Pharmaceuticals, Inc.(2)

    51,964       9,529,158  
            $ 17,939,905  
Capital Markets — 1.4%  

Charles Schwab Corp. (The)

    208,783     $ 8,390,989  
            $ 8,390,989  
Chemicals — 0.7%  

DuPont de Nemours, Inc.

    56,771     $ 4,261,799  
            $ 4,261,799  
Commercial Services & Supplies — 0.9%  

Waste Management, Inc.

    49,221     $ 5,678,627  
            $ 5,678,627  
Consumer Finance — 2.3%  

American Express Co.

    111,933     $ 13,817,010  
            $ 13,817,010  
Containers & Packaging — 1.7%  

Ball Corp.

    146,828     $ 10,276,492  
            $ 10,276,492  
Diversified Telecommunication Services — 3.1%  

Verizon Communications, Inc.

    322,298     $ 18,412,885  
            $ 18,412,885  
Security   Shares     Value  
Electric Utilities — 1.7%  

NextEra Energy, Inc.

    48,519     $ 9,939,602  
            $ 9,939,602  
Electrical Equipment — 1.2%  

Eaton Corp. PLC

    84,523     $ 7,039,075  
            $ 7,039,075  
Entertainment — 5.7%  

Live Nation Entertainment, Inc.(2)

    164,636     $ 10,907,135  

Spotify Technology SA(2)

    64,904       9,490,263  

Walt Disney Co. (The)

    99,893       13,949,058  
            $ 34,346,456  
Equity Real Estate Investment Trusts (REITs) — 2.5%  

American Tower Corp.

    50,632     $ 10,351,712  

CubeSmart

    134,079       4,483,602  
            $ 14,835,314  
Food Products — 1.6%  

Mondelez International, Inc., Class A

    174,073     $ 9,382,535  
            $ 9,382,535  
Health Care Equipment & Supplies — 5.0%  

Abbott Laboratories

    175,286     $ 14,741,553  

Danaher Corp.

    105,137       15,026,180  
            $ 29,767,733  
Household Products — 2.4%  

Procter & Gamble Co. (The)

    131,296     $ 14,396,606  
            $ 14,396,606  
Insurance — 1.8%  

Progressive Corp. (The)

    133,378     $ 10,660,904  
            $ 10,660,904  
Interactive Media & Services — 1.4%  

Alphabet, Inc., Class C(2)

    7,595     $ 8,209,512  
            $ 8,209,512  
Internet & Direct Marketing Retail — 3.9%  

Amazon.com, Inc.(2)

    12,437     $ 23,551,076  
            $ 23,551,076  
 

 

  5   See Notes to Financial Statements.


Eaton Vance

Risk-Managed Diversified Equity Income Fund

June 30, 2019

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Shares     Value  
IT Services — 9.3%  

Accenture PLC, Class A

    65,077     $ 12,024,277  

Akamai Technologies, Inc.(2)

    105,460       8,451,564  

Cognizant Technology Solutions Corp., Class A

    110,155       6,982,726  

GoDaddy, Inc., Class A(2)

    116,061       8,141,679  

Visa, Inc., Class A

    115,312       20,012,398  
            $ 55,612,644  
Life Sciences Tools & Services — 1.2%  

Agilent Technologies, Inc.

    100,802     $ 7,526,885  
            $ 7,526,885  
Machinery — 4.7%  

Caterpillar, Inc.

    108,966     $ 14,850,976  

Fortive Corp.

    164,472       13,407,758  
            $ 28,258,734  
Multi-Utilities — 1.4%  

Sempra Energy

    61,653     $ 8,473,588  
            $ 8,473,588  
Oil, Gas & Consumable Fuels — 5.1%  

ConocoPhillips

    105,286     $ 6,422,446  

EOG Resources, Inc.

    67,751       6,311,683  

Exxon Mobil Corp.

    165,728       12,699,737  

Phillips 66

    57,761       5,402,964  
            $ 30,836,830  
Pharmaceuticals — 5.7%  

Bristol-Myers Squibb Co.

    141,543     $ 6,418,975  

Johnson & Johnson

    110,354       15,370,105  

Zoetis, Inc.

    108,655       12,331,256  
            $ 34,120,336  
Road & Rail — 2.3%  

CSX Corp.

    176,947     $ 13,690,389  
            $ 13,690,389  
Semiconductors & Semiconductor Equipment — 2.0%  

Texas Instruments, Inc.

    105,087     $ 12,059,784  
            $ 12,059,784  
Software — 7.3%  

Intuit, Inc.

    39,209     $ 10,246,488  

Microsoft Corp.

    249,158       33,377,206  
            $ 43,623,694  
Security   Shares     Value  
Specialty Retail — 4.1%  

Best Buy Co., Inc.

    108,030     $ 7,532,932  

Home Depot, Inc. (The)

    43,700       9,088,289  

Tractor Supply Co.

    75,689       8,234,963  
            $ 24,856,184  
Technology Hardware, Storage & Peripherals — 3.3%  

Apple, Inc.

    101,191     $ 20,027,723  
            $ 20,027,723  
Textiles, Apparel & Luxury Goods — 1.4%  

NIKE, Inc., Class B

    98,012     $ 8,228,107  
            $ 8,228,107  

Total Common Stocks
(identified cost $461,583,570)

 

  $ 601,029,054  
Short-Term Investments — 1.1%    
Description   Units     Value  

Eaton Vance Cash Reserves Fund, LLC, 2.40%(3)

    6,477,737     $ 6,477,737  

Total Short-Term Investments
(identified cost $6,477,737)

 

  $ 6,477,737  

Total Purchased Put Options — 0.2%
(identified cost $3,200,920)

 

  $ 1,291,075  

Total Investments — 101.6%
(identified cost $471,262,227)

 

  $ 608,797,866  

Total Written Call Options — (1.3)%
(premiums received $3,485,025)

 

  $ (7,553,145

Other Assets, Less Liabilities — (0.3)%

 

  $ (1,994,956

Net Assets — 100.0%

 

  $ 599,249,765  

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, 2019.

 

 

  6   See Notes to Financial Statements.


Eaton Vance

Risk-Managed Diversified Equity Income Fund

June 30, 2019

 

Portfolio of Investments (Unaudited) — continued

 

 

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      166      $48,833,216   $ 2,625      7/1/19   $ 1,245  
S&P 500 Index      164      48,244,864     2,670      7/3/19     4,510  
S&P 500 Index      165      48,539,040     2,715      7/5/19     12,375  
S&P 500 Index      164      48,244,864     2,780      7/8/19     35,260  
S&P 500 Index      164      48,244,864     2,775      7/10/19     49,610  
S&P 500 Index      164      48,244,864     2,775      7/12/19     68,060  
S&P 500 Index      164      48,244,864     2,785      7/15/19     86,100  
S&P 500 Index      163      47,950,688     2,815      7/17/19     140,995  
S&P 500 Index      162      47,656,512     2,850      7/19/19     224,370  
S&P 500 Index      161      47,362,336     2,850      7/22/19     238,280  
S&P 500 Index      162      47,656,512     2,815      7/24/19     195,210  
S&P 500 Index      161      47,362,336     2,825      7/26/19     235,060  

Total

                             $ 1,291,075  

 

Written Call Options — (1.3)%  
Exchange-Traded Options — (1.3)%  
Description    Number of
Contracts
     Notional
Amount
  Exercise
Price
     Expiration
Date
  Value  
S&P 500 Index      166      $48,833,216   $ 2,825      7/1/19   $ (1,958,800
S&P 500 Index      164      48,244,864     2,855      7/3/19     (1,499,780
S&P 500 Index      165      48,539,040     2,900      7/5/19     (898,425
S&P 500 Index      164      48,244,864     2,950      7/8/19     (369,820
S&P 500 Index      164      48,244,864     2,935      7/10/19     (550,220
S&P 500 Index      164      48,244,864     2,945      7/12/19     (501,020
S&P 500 Index      164      48,244,864     2,945      7/15/19     (523,160
S&P 500 Index      163      47,950,688     2,980      7/17/19     (280,360
S&P 500 Index      162      47,656,512     3,005      7/19/19     (179,010
S&P 500 Index      161      47,362,336     3,010      7/22/19     (165,830
S&P 500 Index      162      47,656,512     2,985      7/24/19     (330,480
S&P 500 Index      161      47,362,336     2,995      7/26/19     (296,240

Total

                             $ (7,553,145

 

  7   See Notes to Financial Statements.


Eaton Vance

Risk-Managed Diversified Equity Income Fund

June 30, 2019

 

Statement of Assets and Liabilities (Unaudited)

 

 

Assets    June 30, 2019  

Unaffiliated investments, at value (identified cost, $464,784,490)

   $ 602,320,129  

Affiliated investment, at value (identified cost, $6,477,737)

     6,477,737  

Dividends receivable

     228,741  

Dividends receivable from affiliated investment

     13,137  

Receivable for premiums on written options

     269,553  

Receivable from the transfer agent

     128,823  

Total assets

   $ 609,438,120  
Liabilities         

Written options outstanding, at value (premiums received, $3,485,025)

   $ 7,553,145  

Payable for closed written options

     1,983,698  

Payable to affiliates:

  

Investment adviser fee

     488,815  

Trustees’ fees

     8,132  

Accrued expenses

     154,565  

Total liabilities

   $ 10,188,355  

Net Assets

   $ 599,249,765  
Sources of Net Assets         

Common shares, $0.01 par value, unlimited number of shares authorized, 63,700,289 shares issued and outstanding

   $ 637,003  

Additional paid-in capital

     513,538,564  

Distributable earnings

     85,074,198  

Net Assets

   $ 599,249,765  
Net Asset Value         

($599,249,765 ÷ 63,700,289 common shares issued and outstanding)

   $ 9.41  

 

  8   See Notes to Financial Statements.


Eaton Vance

Risk-Managed Diversified Equity Income Fund

June 30, 2019

 

Statement of Operations (Unaudited)

 

 

Investment Income   

Six Months Ended

June 30, 2019

 

Dividends

   $ 5,235,923  

Dividends from affiliated investment

     66,315  

Total investment income

   $ 5,302,238  
Expenses         

Investment adviser fee

   $ 2,945,937  

Trustees’ fees and expenses

     17,610  

Custodian fee

     110,115  

Transfer and dividend disbursing agent fees

     8,900  

Legal and accounting services

     32,519  

Printing and postage

     120,920  

Miscellaneous

     32,980  

Total expenses

   $ 3,268,981  

Net investment income

   $ 2,033,257  
Realized and Unrealized Gain (Loss)         

Net realized gain (loss) —

  

Investment transactions

   $ 6,006,399  

Investment transactions — affiliated investment

     2,165  

Written options

     (22,116,585

Foreign currency transactions

     (1,229

Net realized loss

   $ (16,109,250

Change in unrealized appreciation (depreciation) —

  

Investments

   $ 77,136,063  

Investments — affiliated investment

     (864

Written options

     (5,077,472

Net change in unrealized appreciation (depreciation)

   $ 72,057,727  

Net realized and unrealized gain

   $ 55,948,477  

Net increase in net assets from operations

   $ 57,981,734  

 

  9   See Notes to Financial Statements.


Eaton Vance

Risk-Managed Diversified Equity Income Fund

June 30, 2019

 

Statements of Changes in Net Assets

 

 

Increase (Decrease) in Net Assets   

Six Months Ended

June 30, 2019
(Unaudited)

    

Year Ended

December 31, 2018

 

From operations —

     

Net investment income

   $ 2,033,257      $ 3,751,527  

Net realized gain (loss)

     (16,109,250      33,742,711  

Net change in unrealized appreciation (depreciation)

     72,057,727        (51,356,427

Net increase (decrease) in net assets from operations

   $ 57,981,734      $ (13,862,189

Distributions to shareholders

   $ (29,034,964 )*     $ (30,932,075

Tax return of capital to shareholders

   $      $ (27,133,817

Capital share transactions —

     

Reinvestment of distributions

   $ 281,519      $ 26,553  

Net increase in net assets from capital share transactions

   $ 281,519      $ 26,553  

Net increase (decrease) in net assets

   $ 29,228,289      $ (71,901,528
Net Assets                  

At beginning of period

   $ 570,021,476      $ 641,923,004  

At end of period

   $ 599,249,765      $ 570,021,476  

 

*

A portion of the distributions may be deemed 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, 2019

 

Financial Highlights

 

 

    Six Months Ended
June 30, 2019
(Unaudited)
    Year Ended December 31,  
    2018     2017     2016     2015     2014  
             

Net asset value — Beginning of period

  $ 8.950     $ 10.080     $ 9.980     $ 11.150     $ 12.060     $ 12.720  
Income (Loss) From Operations                                                

Net investment income(1)

  $ 0.032     $ 0.059     $ 0.078     $ 0.108     $ 0.197     $ 0.065  

Net realized and unrealized gain (loss)

    0.884       (0.277     0.968       (0.162     0.007       0.335  

Total income (loss) from operations

  $ 0.916     $ (0.218   $ 1.046     $ (0.054   $ 0.204     $ 0.400  
Less Distributions                                                

From net investment income

  $ (0.456 )*    $ (0.486   $ (0.946   $ (0.093   $ (1.116   $ (1.116

Tax return of capital

          (0.426           (1.023            

Total distributions

  $ (0.456   $ (0.912   $ (0.946   $ (1.116   $ (1.116   $ (1.116

Anti-dilutive effect of share repurchase program (see Note 5)(1)

  $     $     $     $     $ 0.002     $ 0.056  

Net asset value — End of period

  $ 9.410     $ 8.950     $ 10.080     $ 9.980     $ 11.150     $ 12.060  

Market value — End of period

  $ 9.400     $ 8.120     $ 9.630     $ 8.960     $ 10.160     $ 10.660  

Total Investment Return on Net Asset Value(2)

    10.48 %(3)      (2.13 )%      11.66     0.60     2.76     4.49

Total Investment Return on Market Value(2)

    21.65 %(3)      (7.06 )%      18.82     (0.88 )%      5.93     4.25
Ratios/Supplemental Data                                                

Net assets, end of period (000’s omitted)

  $ 599,250     $ 570,021     $ 641,923     $ 635,595     $ 710,166     $ 769,202  

Ratios (as a percentage of average daily net assets):

           

Expenses(4)

    1.11 %(5)      1.10     1.10     1.11     1.10     1.10

Net investment income

    0.69 %(5)      0.60     0.78     1.05     1.68     0.52

Portfolio Turnover

    29 %(3)      53     87     79     77     66

 

(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 Fund’s dividend reinvestment plan.

 

(3) 

Not annualized.

 

(4) 

Excludes the effect of custody fee credits, if any, of less than 0.005%. Effective September 1, 2015, custody fee credits, which were earned on cash deposit balances, were discontinued by the custodian.

 

(5) 

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.

 

  11   See Notes to Financial Statements.


Eaton Vance

Risk-Managed Diversified Equity Income Fund

June 30, 2019

 

Notes to Financial Statements (Unaudited)

 

 

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 Fund’s 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.

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 security’s “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 security’s 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 company’s or entity’s 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.

D  Federal Taxes — The Fund’s 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, 2019, 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 — Other assets and liabilities initially expressed in foreign currencies are translated each business day into U.S. dollars based upon current exchange rates. 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.

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 Fund’s 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 Fund’s 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

 

  12  


Eaton Vance

Risk-Managed Diversified Equity Income Fund

June 30, 2019

 

Notes to Financial Statements (Unaudited) — continued

 

 

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 Fund’s 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 Fund’s 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 Fund’s 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, 2019 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Fund’s 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 Fund’s 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 and current year earnings and profits attributable to realized 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, 2019, the amount of distributions estimated to be a tax return of capital was approximately $26,971,000. The final determination of tax characteristics of the Fund’s distributions will occur at the end of the year, at which time it will be reported to the shareholders.

Additionally, at December 31, 2018, the Fund had a net capital loss of $42,684 attributable to security transactions incurred after October 31, 2018 that it has elected to defer. This net capital loss is treated as arising on the first day of the Fund’s taxable year ending December 31, 2019.

The cost and unrealized appreciation (depreciation) of investments, including open derivative contracts, of the Fund at June 30, 2019, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

   $ 467,820,367  

Gross unrealized appreciation

   $ 143,070,050  

Gross unrealized depreciation

     (9,645,696

Net unrealized appreciation

   $ 133,424,354  

 

  13  


Eaton Vance

Risk-Managed Diversified Equity Income Fund

June 30, 2019

 

Notes to Financial Statements (Unaudited) — continued

 

 

3  Investment Adviser Fee and Other Transactions with Affiliates

The investment adviser fee is earned by EVM as compensation for management and investment advisory services rendered to the Fund. The fee is computed at an annual rate of 1.00% of the Fund’s 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, 2019, the Fund’s investment adviser fee amounted to $2,945,937. The Fund invests 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 EVM’s 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, 2019, 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 $170,986,441 and $221,881,925, respectively, for the six months ended June 30, 2019.

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, 2019 and the year ended December 31, 2018 were 30,361 and 2,849, 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, 2019 and the year ended December 31, 2018.

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, 2019 is included in the Portfolio of Investments. At June 30, 2019, 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 Fund’s use of option collars is expected to provide a more consistent level of market exposure and market protection.

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, 2019 was as follows:

 

     Fair Value  
Derivative    Asset Derivative(1)      Liability Derivative(2)  

Purchased options

   $ 1,291,075      $  

Written options

            (7,553,145

Total

   $ 1,291,075      $ (7,553,145

 

(1) 

Statement of Assets and Liabilities location: Unaffiliated investments, at value.

 

(2) 

Statement of Assets and Liabilities location: Written options outstanding, at value.

 

  14  


Eaton Vance

Risk-Managed Diversified Equity Income Fund

June 30, 2019

 

Notes to Financial Statements (Unaudited) — continued

 

 

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, 2019 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

   $ (13,878,399    $ (6,097,007

Written options

     (22,116,585      (5,077,472
     $ (35,994,984    $ (11,174,479

 

(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, 2019, which are indicative of the volume of these derivative types, were 2,038 and 2,009 contracts, respectively.

7  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 fund’s own assumptions in determining the fair value of investments)

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, 2019, the hierarchy of inputs used in valuing the Fund’s investments and open derivative instruments, which are carried at value, were as follows:

 

Asset Description    Level 1      Level 2      Level 3      Total  

Common Stocks

   $ 601,029,054    $      $         —      $ 601,029,054  

Short-Term Investments

            6,477,737               6,477,737  

Purchased Put Options

     1,291,075                      1,291,075  

Total Investments

   $ 602,320,129      $ 6,477,737      $      $ 608,797,866  

Liability Description

                                   

Written Call Options

   $ (7,553,145    $      $      $ (7,553,145

Total

   $ (7,553,145    $      $      $ (7,553,145

 

*

The level classification by major category of investments is the same as the category presentation in the Portfolio of Investments.

 

  15  


Eaton Vance

Risk-Managed Diversified Equity Income Fund

June 30, 2019

 

Annual Meeting of Shareholders (Unaudited)

 

 

The Fund held its Annual Meeting of Shareholders on April 18, 2019. The following action was taken by the shareholders:

Item 1:  The election of Mark R. Fetting, Valerie A. Mosley and Marcus L. Smith as Class III Trustees of the Fund for a three-year term expiring in 2022.

 

Nominee for Trustee

Elected by All Shareholders

  Number of Shares  
  For      Withheld  

Mark R. Fetting

    57,691,207        1,726,425  

Valerie A. Mosley

    55,926,652        3,490,980  

Marcus L. Smith

    57,776,378        1,641,254  

 

  16  


Eaton Vance

Risk-Managed Diversified Equity Income Fund

June 30, 2019

 

Board of Trustees’ Contract Approval

 

 

Overview of the Contract Review Process

The Investment Company Act of 1940, as amended (the “1940 Act”), provides, in substance, that the investment advisory agreement between a fund and its investment adviser will continue in effect from year-to-year only if its continuation is approved on an annual basis by a vote of the fund’s board of trustees, including a majority of the trustees who are not “interested persons” of the fund (“independent trustees”), cast in person at a meeting called for the purpose of considering such approval.

At a meeting held on April 24, 2019, the Boards of Trustees/Directors (collectively, the “Board”) of the registered investment companies advised by Eaton Vance Management or its affiliate, Boston Management and Research (the “Eaton Vance Funds”), including a majority of the independent trustees (the “Independent Trustees”), voted to approve the continuation of existing investment advisory and sub-advisory agreements for each of the Eaton Vance Funds for an additional one-year period. In voting its approval, the Board relied upon the affirmative recommendation of its Contract Review Committee, which is a committee exclusively comprised of Independent Trustees. Prior to making its recommendation, the Contract Review Committee reviewed information furnished by the adviser and sub-adviser (where applicable) to each of the Eaton Vance Funds (including information specifically requested by the Board) for a series of meetings held between February and April 2019. Members of the Contract Review Committee also considered information received at prior meetings of the Board and its committees, to the extent such information was relevant to the Contract Review Committee’s annual evaluation of the investment advisory and sub-advisory agreements.

Among other things, the information the Board considered included the following (for funds that invest through one or more underlying portfolios, references to “each fund” in this section may include information that was considered at the portfolio-level):

Information about Fees, Performance and Expenses

 

   

A report from an independent data provider comparing advisory and related fees paid by each fund to such fees paid by comparable funds, as identified by the independent data provider (“comparable funds”);

 

   

A report from an independent data provider comparing each fund’s total expense ratio (and its components) to those of comparable funds;

 

   

A report from an independent data provider comparing the investment performance of each fund (including, where relevant, yield data, Sharpe ratios and information ratios) to the investment performance of comparable funds over various time periods;

 

   

Data regarding investment performance relative to benchmark indices and, in certain instances, to customized groups of peer funds and blended indices identified by the adviser in consultation with the Portfolio Management Committee of the Board;

 

   

Comparative information concerning the fees charged and services provided by the adviser and sub-adviser (where applicable) to each fund in managing other accounts (including mutual funds, other collective investment funds and institutional accounts) using investment strategies and techniques similar to those used in managing such fund(s), if any;

 

   

Profitability analyses with respect to the adviser and sub-adviser (where applicable) to each of the funds;

Information about Portfolio Management and Trading

 

   

Descriptions of the investment management services provided to each fund, as well as each of the funds’ investment strategies and policies;

 

   

The procedures and processes used to determine the fair value of fund assets, when necessary, and actions taken to monitor and test the effectiveness of such procedures and processes;

 

   

Information about the policies and practices of each fund’s adviser and sub-adviser (where applicable and in the context of a sub-adviser with trading responsibilities) with respect to trading, including their processes for seeking best execution of portfolio transactions;

 

   

Information about the allocation of brokerage transactions and the benefits, if any, received by the adviser and sub-adviser (where applicable and in the context of a sub-adviser with trading responsibilities) to each fund as a result of brokerage allocation, including information concerning the acquisition of research through client commission arrangements and policies with respect to “soft dollars”;

 

   

Data relating to the portfolio turnover rate of each fund;

Information about each Adviser and Sub-adviser

 

   

Reports detailing the financial results and condition of the adviser and sub-adviser (where applicable) to each fund;

 

   

Information regarding the individual investment professionals whose responsibilities include portfolio management and investment research for the funds, and, for portfolio managers and certain other investment professionals, information relating to their responsibilities with respect to managing other mutual funds and investment accounts, if applicable;

 

   

The Code of Ethics of the adviser and its affiliates and the sub-adviser (where applicable) of each fund, together with information relating to compliance with, and the administration of, such codes;

 

   

Policies and procedures relating to proxy voting and the handling of corporate actions and class actions;

 

   

Information concerning the resources devoted to compliance efforts undertaken by the adviser and its affiliates and the sub-adviser (where applicable) of each fund, if any, including descriptions of their various compliance programs and their record of compliance;

 

   

Information concerning the business continuity and disaster recovery plans of the adviser and its affiliates and the sub-adviser (where applicable) of each fund, if any;

 

  17  


Eaton Vance

Risk-Managed Diversified Equity Income Fund

June 30, 2019

 

Board of Trustees’ Contract Approval — continued

 

 

 

   

A description of Eaton Vance Management’s and Boston Management and Research’s oversight of sub-advisers, including with respect to regulatory and compliance issues, investment management and other matters;

Other Relevant Information

 

   

Information concerning the nature, cost and character of the administrative and other non-investment advisory services provided by Eaton Vance Management and its affiliates;

 

   

Information concerning management of the relationship with the custodian, subcustodians and fund accountants by the adviser or administrator to each of the funds; and

 

   

The terms of each investment advisory agreement.

During the various meetings of the Board and its committees throughout the twelve months ended April 2019, the Trustees received information from portfolio managers and other investment professionals of the advisers and sub-advisers (where applicable) of the funds regarding investment and performance matters, and considered various investment and trading strategies used in pursuing the funds’ investment objectives. The Trustees also received information regarding risk management techniques employed in connection with the management of the funds. The Board and its Committees evaluated issues pertaining to industry and regulatory developments, compliance procedures, fund governance and other issues with respect to the funds, and received and participated in reports and presentations provided by Eaton Vance Management, Boston Management and Research and fund sub-advisers (as applicable), with respect to such matters. In addition to the formal meetings of the Board and its committees, the Independent Trustees held regular teleconferences to discuss, among other topics, matters relating to the continuation of investment advisory and sub-advisory agreements.

The Contract Review Committee was advised throughout the contract review process by Goodwin Procter LLP, independent legal counsel for the Independent Trustees. The members of the Contract Review Committee, with the advice of such counsel, exercised their own business judgment in determining the material factors to be considered in evaluating each investment advisory and sub-advisory agreement and the weight to be given to each such factor. The conclusions reached with respect to each investment advisory and sub-advisory agreement were based on a comprehensive evaluation of all the information provided and not any single factor. Moreover, each member of the Contract Review Committee may have placed varying emphasis on particular factors in reaching conclusions with respect to each investment advisory and sub-advisory agreement. In evaluating each investment advisory and sub-advisory agreement, including the fee structures and other terms contained in such agreements, the members of the Contract Review Committee were also informed by multiple years of analysis and discussion with the adviser and sub-adviser (where applicable) to each of the Eaton Vance Funds.

Results of the Process

Based on its consideration of the foregoing, and such other information as it deemed relevant, including the factors and conclusions described below, the Contract Review Committee concluded that the continuation of the investment advisory agreement between Eaton Vance Risk-Managed Diversified Equity Income Fund (the “Fund”) and Eaton Vance Management (the “Adviser”), including its fee structure, is in the interests of shareholders and, therefore, recommended to the Board approval of the agreement. Based on the recommendation of the Contract Review Committee, the Board, including a majority of the Independent Trustees, voted to approve continuation of the investment advisory agreement for the Fund.

Nature, Extent and Quality of Services

In considering whether to approve the investment advisory agreement for the Fund, the Board evaluated the nature, extent and quality of services provided to the Fund by the Adviser.

The Board considered the Adviser’s management capabilities and investment processes in light of the types of investments held by the Fund, including the education, experience and number of investment professionals and other personnel who provide portfolio management, investment research, and similar services to the Fund, including recent changes to such personnel. In particular, the Board considered the abilities and experience of the Adviser’s investment professionals in analyzing factors such as tax efficiency and special considerations relevant to investing in stocks, and purchasing put options and selling call options on various indexes. The Board considered that the Adviser has devoted extensive resources to in-house equity research and also draws upon independent research available from third-party sources. The Board also took into account the resources dedicated to portfolio management and other services, the compensation methods of the Adviser and other factors, including the reputation and resources of the Adviser to recruit and retain highly qualified research, advisory and supervisory investment professionals. In addition, the Board considered the time and attention devoted to the Eaton Vance Funds, including the Fund, by senior management, as well as the infrastructure, operational capabilities and support staff in place to assist in the portfolio management and operations of the Fund, including the provision of administrative services. The Board also considered the business-related and other risks to which the Adviser or its affiliates may be subject in managing the Fund.

The Board considered the compliance programs of the Adviser and relevant affiliates thereof. The Board considered compliance and reporting matters regarding, among other things, personal trading by investment professionals, disclosure of portfolio holdings, late trading, frequent trading, portfolio valuation, business continuity and the allocation of investment opportunities. The Board also considered the responses of the Adviser and its affiliates to requests in recent years from regulatory authorities, such as the Securities and Exchange Commission and the Financial Industry Regulatory Authority.

 

  18  


Eaton Vance

Risk-Managed Diversified Equity Income Fund

June 30, 2019

 

Board of Trustees’ Contract Approval — continued

 

 

The Board considered shareholder and other administrative services provided or managed by Eaton Vance Management and its affiliates, including transfer agency and accounting services. The Board evaluated the benefits to shareholders of investing in a fund that is a part of a large fund complex offering exposure to a variety of asset classes and investment disciplines.

After consideration of the foregoing factors, among others, the Board concluded that the nature, extent and quality of services provided by the Adviser, taken as a whole, are appropriate and consistent with the terms of the investment advisory agreement.

Fund Performance

The Board compared the Fund’s investment performance to that of comparable funds and appropriate benchmark indices, as well as a customized peer group of similarly managed funds. The Board’s review included comparative performance data with respect to the Fund for the one-, three-, five- and ten-year periods ended September 30, 2018. In this regard, the Board noted that the performance of the Fund was higher than the median performance of the Fund’s custom peer group and lower than the median performance of the Fund’s peer group for the three-year period. The Board also noted that the performance of the Fund was lower than its primary and secondary benchmark indexes for the three-year period. The Board concluded that the performance of the Fund was satisfactory.

Management Fees and Expenses

The Board considered contractual fee rates payable by the Fund for advisory and administrative services (referred to collectively as “management fees”). As part of its review, the Board considered the Fund’s management fees and total expense ratio for the one-year period ended September 30, 2018, as compared to those of comparable funds, before and after giving effect to any undertaking to waive fees or reimburse expenses. The Board also considered factors that had an impact on the Fund’s total expense ratio relative to comparable funds.

After considering the foregoing information, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded that the management fees charged for advisory and related services are reasonable.

Profitability and “Fall-Out” Benefits

The Board considered the level of profits realized by the Adviser and relevant affiliates thereof in providing investment advisory and administrative services to the Fund and to all Eaton Vance Funds as a group. The Board considered the level of profits realized without regard to marketing support or other payments by the Adviser and its affiliates to third parties in respect of distribution services.

The Board concluded that, in light of the foregoing factors and the nature, extent and quality of the services rendered, the profits realized by the Adviser and its affiliates are deemed not to be excessive.

The Board also considered direct or indirect fall-out benefits received by the Adviser and its affiliates in connection with their respective relationships with the Fund, including the benefits of research services that may be available to the Adviser as a result of securities transactions effected for the Fund and other investment advisory clients.

Economies of Scale

In reviewing management fees and profitability, the Board also considered the extent to which the Adviser and its affiliates, on the one hand, and the Fund, on the other hand, can expect to realize benefits from economies of scale as the assets of the Fund increase. The Board acknowledged the difficulty in accurately measuring the benefits resulting from economies of scale, if any, with respect to the management of any specific fund or group of funds. The Board reviewed data summarizing the increases and decreases in the assets of the Fund and of all Eaton Vance Funds as a group over various time periods, and evaluated the extent to which the total expense ratio of the Fund and the profitability of the Adviser and its affiliates may have been affected by such increases or decreases. Based upon the foregoing, the Board concluded that the Fund currently shares in the benefits from economies of scale, if any, when they are realized by the Adviser. The Board also considered the fact that the Fund is not continuously offered and that the Fund’s assets are not expected to increase materially in the foreseeable future. Accordingly, the Board concluded that the implementation of breakpoints in the advisory fee schedule is not warranted at this time.

 

  19  


Eaton Vance

Risk-Managed Diversified Equity Income Fund

June 30, 2019

 

Officers and Trustees

 

 

Officers

 

Edward J. Perkin

President

Maureen A. Gemma

Vice President, Secretary and Chief Legal Officer

James F. Kirchner

Treasurer

Richard F. Froio

Chief Compliance Officer

Trustees

 

 

William H. Park

Chairperson

Thomas E. Faust Jr.*

Mark R. Fetting

Cynthia E. Frost

George J. Gorman

Valerie A. Mosley

Helen Frame Peters

Keith Quinton(1)

Marcus L. Smith(1)

Susan J. Sutherland

Scott E. Wennerholm

 

 

*

Interested Trustee

 

(1) 

Messrs. Quinton and Smith began serving as Trustees effective October 1, 2018.

 

  20  


Eaton Vance Funds

 

IMPORTANT NOTICES

 

 

Privacy.  The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy (“Privacy Policy”) with respect to nonpublic personal information about its customers:

 

 

Only such information received from you, through application forms or otherwise, and information about your Eaton Vance fund transactions will be collected. This may include information such as name, address, social security number, tax status, account balances and transactions.

 

 

None of such information about you (or former customers) will be disclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to service your account). In the normal course of servicing a customer’s account, Eaton Vance may share information with unaffiliated third parties that perform various required services such as transfer agents, custodians and broker-dealers.

 

 

Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information.

 

 

We reserve the right to change our Privacy Policy at any time upon proper notification to you. Customers may want to review our Privacy Policy periodically for changes by accessing the link on our homepage: www.eatonvance.com.

Our pledge of privacy applies to the following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance Investment Counsel, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management (International) Limited, Eaton Vance Advisers International Ltd., Eaton Vance Management’s Real Estate Investment Group and Boston Management and Research. In addition, our Privacy Policy applies only to those Eaton Vance customers who are individuals and who have a direct relationship with us. If a customer’s account (i.e., fund shares) is held in the name of a third-party financial advisor/broker-dealer, it is likely that only such advisor’s privacy policies apply to the customer. This notice supersedes all previously issued privacy disclosures. For more information about Eaton Vance’s Privacy Policy, please call 1-800-262-1122.

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 for the first and third quarters of each fiscal year. The Form N-PORT will be available 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 SEC’s 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 SEC’s website at www.sec.gov.

Share Repurchase Program.  The Fund’s 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 Fund’s repurchase activity, including the number of shares purchased, average price and average discount to net asset value, is disclosed in the Fund’s 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

 


LOGO

 

LOGO

7759    6.30.19


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 registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s 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 Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There have been no changes in the registrant’s internal controls over financial reporting during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies

No activity to report for the registrant’s most recent fiscal year end.

Item 13. Exhibits

(a)(1)   Registrant’s Code of Ethics – Not applicable (please see Item 2).
(a)(2)(i)   Treasurer’s Section 302 certification.
(a)(2)(ii)   President’s Section 302 certification.
(b)   Combined Section 906 certification.
(c)   Registrant’s notices to shareholders pursuant to Registrant’s exemptive order granting an exemption from Section 19(b) of the 1940 Act and Rule 19b-1 thereunder regarding distributions paid pursuant to the Registrant’s Managed Distribution Plan.

 


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 26, 2019

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 26, 2019
By:  

/s/ Edward J. Perkin

  Edward J. Perkin
  President
Date:   August 26, 2019

 

EX-99.CERT 2 d790341dex99cert.htm EX-99.CERT SECTION 302 CERTIFICATION EX-99.CERT Section 302 Certification

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 registrant’s 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 registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting.

 

Date: August 26, 2019      

/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 registrant’s 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 registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting.

 

Date: August 26, 2019      

/s/ Edward J. Perkin

      Edward J. Perkin
      President

 

EX-99.906CERT 3 d790341dex99906cert.htm EX-99.906CERT SECTION 906 CERTIFICATION EX-99.906CERT Section 906 Certification

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 Semi-Annual Report of the Fund on Form N-CSR for the period ended June 30, 2019 (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 26, 2019

/s/ James F. Kirchner

James F. Kirchner
Treasurer
Date: August 26, 2019

/s/ Edward J. Perkin

Edward J. Perkin
President

 

EX-99.(C) 4 d790341dex99c.htm EX-99.(C) REGISTRANT'S SECTION 19(B) NOTICE TO SHAREHOLDERS EX-99.(C) Registrant's Section 19(B) Notice to Shareholders

Form N-CSR Item 13(c) Exhibit

 

LOGO

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 2019. You are receiving this notice as a requirement of the Fund’s 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 Fund’s distributions for the 2019 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 Fund’s 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 2019

Distribution Amount per Common Share: $0.0760

The following table sets forth an estimate of the sources of the Fund’s 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

   $ 0.0058        7.6   $ 0.0058        7.6

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)

   $ 0.0702        92.4   $ 0.0702        92.4
  

 

 

    

 

 

   

 

 

    

 

 

 

Total per common share

   $ 0.0760        100.0   $ 0.0760        100.0
  

 

 

    

 

 

   

 

 

    

 

 

 

 

1 

The Fund’s fiscal year is January 1, 2019 to December 31, 2019

IMPORTANT DISCLOSURE: You should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s 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 Fund’s 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 Fund’s 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 Fund’s 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, 20181

     3.37

Annualized current distribution rate expressed as a percentage of NAV as of December 31, 20182

     10.19

Cumulative total return at NAV for the fiscal year through December 31, 20183

     -2.13

Cumulative fiscal year to date distribution rate as a percentage of NAV as of December 31, 20184

     10.19

 

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, 2018.

2 

The annualized current distribution rate is the cumulative distribution rate annualized as a percentage of the Fund’s NAV as of December 31, 2018.

3 

Cumulative total return at NAV is the percentage change in the Fund’s NAV for the period from the beginning of its fiscal year to December 31, 2018 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, 2018 measured on the dollar value of distributions in the year-to-date period as a percentage of the Fund’s NAV as of December 31, 2018.

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 2019 calendar year.

NO ACTION IS REQUIRED ON YOUR PART.

Eaton Vance Risk-Managed Diversified Equity Income Fund

January 31, 2019


LOGO

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 2019. You are receiving this notice as a requirement of the Fund’s 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 Fund’s distributions for the 2019 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 Fund’s 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 2019

Distribution Amount per Common Share: $0.0760

The following table sets forth an estimate of the sources of the Fund’s 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

   $ 0.0054        7.1   $ 0.0111        7.3

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)

   $ 0.0706        92.9   $ 0.1409        92.7
  

 

 

    

 

 

   

 

 

    

 

 

 

Total per common share

   $ 0.0760        100.0   $ 0.1520        100.0
  

 

 

    

 

 

   

 

 

    

 

 

 

 

1 

The Fund’s fiscal year is January 1, 2019 to December 31, 2019

IMPORTANT DISCLOSURE: You should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s 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 Fund’s 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 Fund’s 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 Fund’s 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, 20191

     4.30

Annualized current distribution rate expressed as a percentage of NAV as of January 31, 20192

     9.95

Cumulative total return at NAV for the fiscal year through January 31, 20193

     3.35

Cumulative fiscal year to date distribution rate as a percentage of NAV as of January 31, 20194

     0.83

 

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, 2019.

2 

The annualized current distribution rate is the cumulative distribution rate annualized as a percentage of the Fund’s NAV as of January 31, 2019.

3 

Cumulative total return at NAV is the percentage change in the Fund’s NAV for the period from the beginning of its fiscal year to January 31, 2019 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, 2019 measured on the dollar value of distributions in the year-to-date period as a percentage of the Fund’s NAV as of January 31, 2019.

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 2019 calendar year.

NO ACTION IS REQUIRED ON YOUR PART.

Eaton Vance Risk-Managed Diversified Equity Income Fund

February 28, 2019


LOGO

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 2019. You are receiving this notice as a requirement of the Fund’s 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 Fund’s distributions for the 2019 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 Fund’s 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 2019

Distribution Amount per Common Share: $0.0760

The following table sets forth an estimate of the sources of the Fund’s 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

   $ 0.0056        7.3   $ 0.0167        7.3

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)

   $ 0.0704        92.7   $ 0.2113        92.7
  

 

 

    

 

 

   

 

 

    

 

 

 

Total per common share

   $ 0.0760        100.0   $ 0.2280        100.0
  

 

 

    

 

 

   

 

 

    

 

 

 

 

1 

The Fund’s fiscal year is January 1, 2019 to December 31, 2019

IMPORTANT DISCLOSURE: You should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s 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 Fund’s 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 Fund’s 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 Fund’s 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, 20191

     4.30

Annualized current distribution rate expressed as a percentage of NAV as of February 28, 20192

     9.79

Cumulative total return at NAV for the fiscal year through February 28, 20193

     5.93

Cumulative fiscal year to date distribution rate as a percentage of NAV as of February 28, 20194

     1.63

 

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, 2019.

2 

The annualized current distribution rate is the cumulative distribution rate annualized as a percentage of the Fund’s NAV as of February 28, 2019.

3 

Cumulative total return at NAV is the percentage change in the Fund’s NAV for the period from the beginning of its fiscal year to February 28, 2019 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, 2019 measured on the dollar value of distributions in the year-to-date period as a percentage of the Fund’s NAV as of February 28, 2019.

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 2019 calendar year.

NO ACTION IS REQUIRED ON YOUR PART.

Eaton Vance Risk-Managed Diversified Equity Income Fund

March 29, 2019


LOGO

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 2019. You are receiving this notice as a requirement of the Fund’s 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 Fund’s distributions for the 2019 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 Fund’s 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 2019

Distribution Amount per Common Share: $0.0760

The following table sets forth an estimate of the sources of the Fund’s 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

   $ 0.0057        7.5   $ 0.0224        7.4

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)

   $ 0.0703        92.5   $ 0.2816        92.6
  

 

 

    

 

 

   

 

 

    

 

 

 

Total per common share

   $ 0.0760        100.0   $ 0.3040        100.0
  

 

 

    

 

 

   

 

 

    

 

 

 

 

1 

The Fund’s fiscal year is January 1, 2019 to December 31, 2019

IMPORTANT DISCLOSURE: You should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s 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 Fund’s 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 Fund’s 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 Fund’s 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, 20191

     4.89

Annualized current distribution rate expressed as a percentage of NAV as of March 31, 20192

     9.67

Cumulative total return at NAV for the fiscal year through March 31, 20193

     8.06

Cumulative fiscal year to date distribution rate as a percentage of NAV as of March 31, 20194

     2.42

 

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, 2019.

2 

The annualized current distribution rate is the cumulative distribution rate annualized as a percentage of the Fund’s NAV as of March 31, 2019.

3 

Cumulative total return at NAV is the percentage change in the Fund’s NAV for the period from the beginning of its fiscal year to March 31, 2019 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, 2019 measured on the dollar value of distributions in the year-to-date period as a percentage of the Fund’s NAV as of March 31, 2019.

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 2019 calendar year.

NO ACTION IS REQUIRED ON YOUR PART.

Eaton Vance Risk-Managed Diversified Equity Income Fund

April 30, 2019


LOGO

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 2019. You are receiving this notice as a requirement of the Fund’s 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 Fund’s distributions for the 2019 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 Fund’s 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 2019

Distribution Amount per Common Share: $0.0760

The following table sets forth an estimate of the sources of the Fund’s 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  

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

   $ 0.0052        6.8   $ 0.0276        7.3

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)

   $ 0.0708        93.2   $ 0.3524        92.7
  

 

 

    

 

 

   

 

 

    

 

 

 

Total per common share

   $ 0.0760        100.0   $ 0.3800        100.0
  

 

 

    

 

 

   

 

 

    

 

 

 

 

1 

The Fund’s fiscal year is January 1, 2019 to December 31, 2019

IMPORTANT DISCLOSURE: You should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s 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 Fund’s 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 Fund’s 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 Fund’s 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, 20191

     5.43

Annualized current distribution rate expressed as a percentage of NAV as of April 30, 20192

     9.49

Cumulative total return at NAV for the fiscal year through April 30, 20193

     11.00

Cumulative fiscal year to date distribution rate as a percentage of NAV as of April 30, 20194

     3.16

 

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, 2019.

2 

The annualized current distribution rate is the cumulative distribution rate annualized as a percentage of the Fund’s NAV as of April 30, 2019.

3 

Cumulative total return at NAV is the percentage change in the Fund’s NAV for the period from the beginning of its fiscal year to April 30, 2019 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, 2019 measured on the dollar value of distributions in the year-to-date period as a percentage of the Fund’s NAV as of April 30, 2019.

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 2019 calendar year.

NO ACTION IS REQUIRED ON YOUR PART.

Eaton Vance Risk-Managed Diversified Equity Income Fund

May 31, 2019


LOGO

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 2019. You are receiving this notice as a requirement of the Fund’s 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 Fund’s distributions for the 2019 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 Fund’s 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 2019

Distribution Amount per Common Share: $0.0760

The following table sets forth an estimate of the sources of the Fund’s 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  

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

   $ 0.0048        6.4   $ 0.0324        7.1

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)

   $ 0.0712        93.6   $ 0.4236        92.9
  

 

 

    

 

 

   

 

 

    

 

 

 

Total per common share

   $ 0.0760        100.0   $ 0.4560        100.0
  

 

 

    

 

 

   

 

 

    

 

 

 

 

1 

The Fund’s fiscal year is January 1, 2019 to December 31, 2019

IMPORTANT DISCLOSURE: You should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s 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 Fund’s 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 Fund’s 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 Fund’s 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, 20191

     4.00

Annualized current distribution rate expressed as a percentage of NAV as of May 31, 20192

     10.04

Cumulative total return at NAV for the fiscal year through May 31, 20193

     5.75

Cumulative fiscal year to date distribution rate as a percentage of NAV as of May 31, 20194

     4.19

 

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, 2019.

2 

The annualized current distribution rate is the cumulative distribution rate annualized as a percentage of the Fund’s NAV as of May 31, 2019.

3 

Cumulative total return at NAV is the percentage change in the Fund’s NAV for the period from the beginning of its fiscal year to May 31, 2019 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, 2019 measured on the dollar value of distributions in the year-to-date period as a percentage of the Fund’s NAV as of May 31, 2019.

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 2019 calendar year.

NO ACTION IS REQUIRED ON YOUR PART.

Eaton Vance Risk-Managed Diversified Equity Income Fund

June 28, 2019

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