Table of Contents
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: 811-23240
Eaton Vance Floating-Rate 2022 Target Term Trust
(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)
June 30
Date of Fiscal Year End
December 31, 2020
Date of Reporting Period
Table of Contents
| Item 1. | Reports to Stockholders |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust (EFL)
Semiannual Report
December 31, 2020
Table of Contents
Commodity Futures Trading Commission Registration. The Commodity Futures Trading Commission (“CFTC”) has adopted regulations that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a prescribed level of its assets in certain CFTC-regulated instruments (including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. The investment adviser has claimed an exclusion from the definition of “commodity pool operator” under the Commodity Exchange Act with respect to its management of the Fund. Accordingly, neither the Fund nor the adviser with respect to the operation of the Fund is subject to CFTC regulation. Because of its management of other strategies, the Fund’s adviser is registered with the CFTC as a commodity pool operator. The adviser is also registered as a commodity trading advisor.
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.
Table of Contents
Semiannual Report December 31, 2020
Eaton Vance
Floating-Rate 2022 Target Term Trust
| 2 | ||||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| 34 | ||||
| 39 | ||||
| 40 |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Portfolio Managers Craig P. Russ, Andrew N. Sveen, CFA, Catherine C. McDermott, William E. Holt, CFA and Daniel P. McElaney, CFA
| % Average Annual Total Returns | Inception Date | Six Months | One Year | Five Years | Since Inception | |||||||||||||||
| Fund at NAV |
07/31/2017 | 9.98 | % | 2.20 | % | — | 3.60 | % | ||||||||||||
| Fund at Market Price |
— | 12.96 | 0.56 | — | 2.56 | |||||||||||||||
|
| ||||||||||||||||||||
| S&P/LSTA Leveraged Loan Index |
— | 8.11 | % | 3.12 | % | 5.23 | % | 3.95 | % | |||||||||||
| % Premium/Discount to NAV3 | ||||||||||||||||||||
| –3.37 | % | |||||||||||||||||||
| Distributions4 | ||||||||||||||||||||
| Total Distributions per share for the period |
$ | 0.253 | ||||||||||||||||||
| Distribution Rate at NAV |
4.70 | % | ||||||||||||||||||
| Distribution Rate at Market Price |
4.86 | |||||||||||||||||||
| % Total Leverage5 | ||||||||||||||||||||
| Borrowings |
24.64 | % | ||||||||||||||||||
| Variable Rate Term Preferred Shares (VRTP Shares) |
9.68 | |||||||||||||||||||
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated net of management fees and other expenses by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested in accordance with the Fund’s Dividend Reinvestment Plan. Performance at market price will differ from performance at NAV due to variations in the Fund’s market price versus NAV, which may reflect factors such as fluctuations in supply and demand for Fund shares, changes in Fund distributions, shifting market expectations for the Fund’s future returns and distribution rates, and other considerations affecting the trading prices of closed-end funds. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month-end, please refer to eatonvance.com.
| 2 |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
See Endnotes and Additional Disclosures in this report.
| 3 |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Endnotes and Additional Disclosures
| 4 |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Portfolio of Investments (Unaudited)
| 5 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Portfolio of Investments (Unaudited) — continued
| 6 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Portfolio of Investments (Unaudited) — continued
| 7 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Portfolio of Investments (Unaudited) — continued
| 8 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Portfolio of Investments (Unaudited) — continued
| 9 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Portfolio of Investments (Unaudited) — continued
| 10 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Portfolio of Investments (Unaudited) — continued
| 11 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Portfolio of Investments (Unaudited) — continued
| 12 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Portfolio of Investments (Unaudited) — continued
| 13 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Portfolio of Investments (Unaudited) — continued
| 14 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Portfolio of Investments (Unaudited) — continued
| 15 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Portfolio of Investments (Unaudited) — continued
| 16 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Portfolio of Investments (Unaudited) — continued
| 17 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Portfolio of Investments (Unaudited) — continued
| 18 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Portfolio of Investments (Unaudited) — continued
| 19 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Portfolio of Investments (Unaudited) — continued
| 20 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Portfolio of Investments (Unaudited) — continued
| 21 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Portfolio of Investments (Unaudited) — continued
| 22 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Statement of Assets and Liabilities (Unaudited)
| Assets | December 31, 2020 | |||
| Unaffiliated investments, at value (identified cost, $326,330,498) |
$ | 323,015,444 | ||
| Affiliated investment, at value (identified cost, $8,517,434) |
8,517,434 | |||
| Cash |
3,711,864 | |||
| Interest receivable |
859,367 | |||
| Dividends receivable from affiliated investment |
469 | |||
| Receivable for investments sold |
373,947 | |||
| Prepaid upfront fees on notes payable |
12,974 | |||
| Prepaid expenses |
6,589 | |||
| Total assets |
$ | 336,498,088 | ||
| Liabilities | ||||
| Notes payable |
$ | 81,500,000 | ||
| Variable rate term preferred shares, at liquidation value |
32,000,000 | |||
| Payable for investments purchased |
4,279,673 | |||
| Distributions payable |
850,378 | |||
| Payable to affiliates: |
||||
| Investment adviser fee |
196,515 | |||
| Trustees’ fees |
4,355 | |||
| Interest expense and fees payable |
276,081 | |||
| Accrued expenses |
150,826 | |||
| Total liabilities |
$ | 119,257,828 | ||
| Net assets applicable to common shares |
$ | 217,240,260 | ||
| Sources of Net Assets | ||||
| Common shares, $0.01 par value, unlimited number of shares authorized, 23,621,612 shares issued and outstanding |
$ | 236,216 | ||
| Additional paid-in capital |
231,986,037 | |||
| Accumulated loss |
(14,981,993 | ) | ||
| Net assets applicable to common shares |
$ | 217,240,260 | ||
| Net Asset Value Per Common Share | ||||
| ($217,240,260 ÷ 23,621,612 common shares issued and outstanding) |
$ | 9.20 | ||
| 23 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Statement of Operations (Unaudited)
| Investment Income | Six Months Ended December 31, 2020 |
|||
| Interest and other income |
$ | 6,959,456 | ||
| Dividends from affiliated investment |
4,405 | |||
| Total investment income |
$ | 6,963,861 | ||
| Expenses |
| |||
| Investment adviser fee |
$ | 1,144,762 | ||
| Trustees’ fees and expenses |
13,061 | |||
| Custodian fee |
72,470 | |||
| Transfer and dividend disbursing agent fees |
10,726 | |||
| Legal and accounting services |
61,332 | |||
| Printing and postage |
11,712 | |||
| Interest expense and fees |
866,249 | |||
| Miscellaneous |
30,614 | |||
| Total expenses |
$ | 2,210,926 | ||
| Net investment income |
$ | 4,752,935 | ||
| Realized and Unrealized Gain (Loss) |
| |||
| Net realized gain (loss) — |
| |||
| Investment transactions |
$ | (3,439,178 | ) | |
| Investment transactions — affiliated investment |
(158 | ) | ||
| Net realized loss |
$ | (3,439,336 | ) | |
| Change in unrealized appreciation (depreciation) — |
||||
| Investments |
$ | 18,541,965 | ||
| Net change in unrealized appreciation (depreciation) |
$ | 18,541,965 | ||
| Net realized and unrealized gain |
$ | 15,102,629 | ||
| Net increase in net assets from operations |
$ | 19,855,564 | ||
| 24 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Statements of Changes in Net Assets
| Increase (Decrease) in Net Assets | Six Months Ended December 31, 2020 |
Year Ended June 30, 2020 |
||||||
| From operations — |
||||||||
| Net investment income |
$ | 4,752,935 | $ | 11,070,683 | ||||
| Net realized loss |
(3,439,336 | ) | (3,762,601 | ) | ||||
| Net change in unrealized appreciation (depreciation) |
18,541,965 | (15,848,659 | ) | |||||
| Net increase (decrease) in net assets from operations |
$ | 19,855,564 | $ | (8,540,577 | ) | |||
| Distributions to common shareholders |
$ | (5,976,268 | ) | $ | (12,350,732 | ) | ||
| Capital share transactions — |
||||||||
| Reinvestment of distributions to common shareholders |
$ | — | $ | 94,119 | ||||
| Net increase in net assets from capital share transactions |
$ | — | $ | 94,119 | ||||
| Net increase (decrease) in net assets |
$ | 13,879,296 | $ | (20,797,190 | ) | |||
| Net Assets Applicable to Common Shares |
| |||||||
| At beginning of period |
$ | 203,360,964 | $ | 224,158,154 | ||||
| At end of period |
$ | 217,240,260 | $ | 203,360,964 | ||||
| 25 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Statement of Cash Flows (Unaudited)
| Cash Flows From Operating Activities | Six Months Ended December 31, 2020 |
|||
| Net increase in net assets from operations |
$ | 19,855,564 | ||
| Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities: |
||||
| Investments purchased |
(39,144,861 | ) | ||
| Investments sold and principal repayments |
43,849,072 | |||
| Increase in short-term investments, net |
(5,472,899 | ) | ||
| Net amortization/accretion of premium (discount) |
(280,793 | ) | ||
| Amortization of prepaid upfront fees on variable rate term preferred shares |
10,263 | |||
| Amortization of deferred debt issuance costs on variable rate term preferred shares |
7,063 | |||
| Amortization of prepaid upfront fees on notes payable |
25,626 | |||
| Decrease in interest receivable |
268,209 | |||
| Decrease in dividends receivable from affiliated investment |
836 | |||
| Decrease in prepaid expenses |
7,784 | |||
| Increase in payable to affiliate for investment adviser fee |
15,943 | |||
| Decrease in payable to affiliate for Trustees’ fees |
(40 | ) | ||
| Decrease in interest expense and fees payable |
(92,205 | ) | ||
| Increase in accrued expenses |
4,347 | |||
| Decrease in unfunded loan commitments |
(17,490 | ) | ||
| Net change in unrealized (appreciation) depreciation from investments |
(18,541,965 | ) | ||
| Net realized loss from investments |
3,439,336 | |||
| Net cash provided by operating activities |
$ | 3,933,790 | ||
| Cash Flows From Financing Activities | ||||
| Cash distributions paid to common shareholders |
$ | (5,125,890 | ) | |
| Proceeds from notes payable |
2,000,000 | |||
| Net cash used in financing activities |
$ | (3,125,890 | ) | |
| Net increase in cash |
$ | 807,900 | ||
| Cash at beginning of period |
$ | 2,903,964 | ||
| Cash at end of period |
$ | 3,711,864 | ||
| Supplemental disclosure of cash flow information: |
| |||
| Cash paid for interest and fees on borrowings and variable rate term preferred shares |
$ | 915,502 | ||
| 26 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Financial Highlights
Selected data for a common share outstanding during the periods stated
| Six Months Ended December 31, 2020 (Unaudited) |
Year Ended June 30, | Period Ended June 30, 2018(1) |
||||||||||||||
| 2020 | 2019 | |||||||||||||||
| Net asset value — Beginning of period (Common shares) |
$8.610 | $ | 9.490 | $ | 9.680 | $ | 9.850 | (2) | ||||||||
| Income (Loss) From Operations | ||||||||||||||||
| Net investment income(3) |
$ | 0.201 | $ | 0.469 | $ | 0.502 | $ | 0.404 | ||||||||
| Net realized and unrealized gain (loss) |
0.642 | (0.826 | ) | (0.159 | ) | (0.152 | ) | |||||||||
| Total income (loss) from operations |
$ | 0.843 | $ | (0.357 | ) | $ | 0.343 | $ | 0.252 | |||||||
| Less Distributions to Common Shareholders | ||||||||||||||||
| From net investment income |
$ | (0.253 | ) | $ | (0.523 | ) | $ | (0.533 | ) | $ | (0.406 | ) | ||||
| Total distributions to common shareholders |
$ | (0.253 | ) | $ | (0.523 | ) | $ | (0.533 | ) | $ | (0.406 | ) | ||||
| Offering costs charged to paid-in capital(3) |
$ | — | $ | — | $ | — | $ | (0.020 | ) | |||||||
| Premium related to exercise of underwriters’ over-allotment option(3) |
$ | — | $ | — | $ | — | $ | 0.004 | ||||||||
| Net asset value — End of period (Common shares) |
$ | 9.200 | $ | 8.610 | $ | 9.490 | $ | 9.680 | ||||||||
| Market value — End of period (Common shares) |
$ | 8.890 | $ | 8.100 | $ | 9.290 | $ | 9.440 | ||||||||
| Total Investment Return on Net Asset Value(4) |
9.98 | %(5) | (3.65 | )% | 3.86 | % | 2.55 | %(5)(6) | ||||||||
| Total Investment Return on Market Value(4) |
12.96 | %(5) | (7.36 | )% | 4.20 | % | 0.01 | %(5)(6) | ||||||||
| 27 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Financial Highlights — continued
Selected data for a common share outstanding during the periods stated
| Six Months Ended December 31, 2020 (Unaudited) |
Year Ended June 30, | Period Ended June 30, 2018(1) |
||||||||||||||
| Ratios/Supplemental Data | 2020 | 2019 | ||||||||||||||
| Net assets applicable to common shares, end of period (000’s omitted) |
$ | 217,240 | $ | 203,361 | $ | 224,158 | $ | 228,461 | ||||||||
| Ratios (as a percentage of average daily net assets applicable to common shares):† |
||||||||||||||||
| Expenses excluding interest and fees |
1.26 | %(7) | 1.24 | % | 1.25 | % | 1.24 | %(7) | ||||||||
| Interest and fee expense(8) |
0.81 | %(7) | 1.68 | % | 2.12 | % | 1.53 | %(7) | ||||||||
| Total expenses |
2.07 | %(7) | 2.92 | % | 3.37 | % | 2.77 | %(7) | ||||||||
| Net investment income |
4.45 | %(7) | 5.16 | % | 5.25 | % | 4.50 | %(7) | ||||||||
| Portfolio Turnover |
12 | %(5) | 32 | % | 22 | % | 30 | %(5) | ||||||||
| Senior Securities: |
||||||||||||||||
| Total notes payable outstanding (in 000’s) |
$ | 81,500 | $ | 79,500 | $ | 92,000 | $ | 100,000 | ||||||||
| Asset coverage per $1,000 of notes payable(9) |
$ | 4,058 | $ | 3,961 | $ | 3,784 | $ | 3,605 | ||||||||
| Total variable rate term preferred shares outstanding |
320 | 320 | 320 | 320 | ||||||||||||
| Asset coverage per variable rate term preferred share(10) |
$ | 291,401 | $ | 282,387 | $ | 280,773 | $ | 273,077 | ||||||||
| Involuntary liquidation preference per variable rate term preferred share(11) |
$ | 100,000 | $ | 100,000 | $ | 100,000 | $ | 100,000 | ||||||||
| Approximate market value per variable rate term preferred share(11) |
$ | 100,000 | $ | 100,000 | $ | 100,000 | $ | 100,000 | ||||||||
| (1) | For the period from the start of business, July 31, 2017, to June 30, 2018. |
| (2) | Net asset value at beginning of period reflects the deduction of the sales charge of $0.15 per share paid by the shareholders from the $10.00 offering price. |
| (3) | Computed using average common shares outstanding. |
| (4) | 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 Trust’s dividend reinvestment plan. |
| (5) | Not annualized. |
| (6) | Total investment return on net asset value is calculated assuming a purchase at the offering price of $10.00 less the sales load of $0.15 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period reported with all distributions reinvested. Total investment return on market value is calculated assuming a purchase at the offering price of $10.00 less the sales load of $0.15 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported with all distributions reinvested. |
| (7) | Annualized. |
| (8) | Interest and fee expense relates to the variable rate term preferred shares (see Note 2) and the notes payable (see Note 7) for the purpose of financial leverage. |
| (9) | Calculated by subtracting the Trust’s total liabilities (not including the notes payable and variable rate preferred shares) from the Trust’s total assets, and dividing the result by the notes payable balance in thousands. |
| (10) | Calculated by subtracting the Trust’s total liabilities (not including the notes payable and variable rate term preferred shares) from the Trust’s total assets, dividing the result by the sum of the value of the notes payable and liquidation value of the variable rate term preferred shares, and multiplying the result by the liquidation value of one variable rate term preferred share. Such amount equates to 291%, 282%, 281% and 273% at December 31, 2020 and June 30, 2020, 2019 and 2018, respectively. |
| (11) | Plus accumulated and unpaid dividends. |
| † | Ratios based on net assets applicable to common shares plus variable rate term preferred shares and borrowings are presented below. Ratios for periods less than one year are annualized. |
| Six Months Ended December 31, 2020 (Unaudited) |
Year Ended June 30, | Period Ended June 30, 2018(1) |
||||||||||||||
| 2020 | 2019 | |||||||||||||||
| Expenses excluding interest and fees |
0.82 | % | 0.80 | % | 0.80 | % | 0.83 | % | ||||||||
| Interest and fee expense |
0.53 | % | 1.08 | % | 1.35 | % | 1.02 | % | ||||||||
| Total expenses |
1.35 | % | 1.88 | % | 2.15 | % | 1.85 | % | ||||||||
| Net investment income |
2.91 | % | 3.32 | % | 3.35 | % | 3.00 | % | ||||||||
| (1) | For the period from the start of business, July 31, 2017, to June 30, 2018. |
| 28 | See Notes to Financial Statements. |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Notes to Financial Statements (Unaudited)
1 Significant Accounting Policies
Eaton Vance Floating-Rate 2022 Target Term Trust (the Trust) 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 Trust’s investment objectives are high current income and to return $9.85 per share, the original net asset value per common share before deducting offering costs of $0.02 per common share (“Original NAV”), to holders of common shares of record on or about October 31, 2022 (the “Termination Date”). On or about the Termination Date, the Trust intends to cease its investment operations, liquidate its portfolio, retire or redeem its leverage facilities, and seek to return Original NAV to common shareholders, unless the term is extended for one period of up to twelve months and one additional period of up to six months by a vote of the Trust’s Board of Trustees.
The following is a summary of significant accounting policies of the Trust. The policies are in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The Trust 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.
Senior Floating-Rate Loans. Interests in senior floating-rate loans (Senior Loans) for which reliable market quotations are readily available are valued generally at the average mean of bid and ask quotations obtained from a third party pricing service. Other Senior Loans are valued at fair value by the investment adviser under procedures approved by the Trustees. In fair valuing a Senior Loan, the investment adviser utilizes one or more of the valuation techniques described in (i) through (iii) below to assess the likelihood that the borrower will make a full repayment of the loan underlying such Senior Loan relative to yields on other Senior Loans issued by companies of comparable credit quality. If the investment adviser believes that there is a reasonable likelihood of full repayment, the investment adviser will determine fair value using a matrix pricing approach that considers the yield on the Senior Loan. If the investment adviser believes there is not a reasonable likelihood of full repayment, the investment adviser will determine fair value using analyses that include, but are not limited to: (i) a comparison of the value of the borrower’s outstanding equity and debt to that of comparable public companies; (ii) a discounted cash flow analysis; or (iii) when the investment adviser believes it is likely that a borrower will be liquidated or sold, an analysis of the terms of such liquidation or sale. In certain cases, the investment adviser will use a combination of analytical methods to determine fair value, such as when only a portion of a borrower’s assets are likely to be sold. In conducting its assessment and analyses for purposes of determining fair value of a Senior Loan, the investment adviser will use its discretion and judgment in considering and appraising relevant factors. Fair value determinations are made by the portfolio managers of the Trust based on information available to such managers. The portfolio managers of other funds managed by the investment adviser that invest in Senior Loans may not possess the same information about a Senior Loan borrower as the portfolio managers of the Trust. At times, the fair value of a Senior Loan determined by the portfolio managers of other funds managed by the investment adviser that invest in Senior Loans may vary from the fair value of the same Senior Loan determined by the portfolio managers of the Trust. The fair value of each Senior Loan is periodically reviewed and approved by the investment adviser’s Valuation Committee and by the Trustees based upon procedures approved by the Trustees. Junior Loans (i.e., subordinated loans and second lien loans) are valued in the same manner as Senior Loans.
Debt Obligations. Debt obligations are generally valued on the basis of valuations provided by third party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and ask prices, broker/dealer quotations, prices or yields of securities with similar characteristics, interest rates, anticipated prepayments, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Short-term debt obligations purchased with a remaining maturity of sixty days or less for which a valuation from a third party pricing service is not readily available may be valued at amortized cost, which approximates fair value.
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 or, in the case of preferred equity securities that are not listed or traded in the over-the-counter market, by a third party pricing service that uses various techniques that consider factors including, but not limited to, prices or yields of securities with similar characteristics, benchmark yields, broker/dealer quotes, quotes of underlying common stock, issuer spreads, as well as industry and economic events.
Affiliated Fund. The Trust 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 Trust in a manner that most fairly reflects the security’s “fair value”, which is the amount that the Trust 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.
| 29 |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Notes to Financial Statements (Unaudited) — continued
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 — Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount. Fees associated with loan amendments are recognized immediately. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities.
D Federal Taxes — The Trust intends to make monthly distributions of net investment income and any net realized capital gains in amounts necessary to maintain its taxation as a regulated investment company for U.S. federal income tax purposes. For the purpose of pursuing its investment objective of returning Original NAV, the Trust may retain a portion of its net investment income and some or all of its net capital gains, which would result in the Trust paying U.S. federal excise and corporate income taxes.
As of December 31, 2020, the Trust had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. The Trust 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 Unfunded Loan Commitments — The Trust may enter into certain loan agreements all or a portion of which may be unfunded. The Trust is obligated to fund these commitments at the borrower’s discretion. These commitments, if any, are disclosed in the accompanying Portfolio of Investments. At December 31, 2020, the Trust had sufficient cash and/or securities to cover these commitments.
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 Trust’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 Trust. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as the Trust) could be deemed to have personal liability for the obligations of the Trust. However, the Trust’s Declaration of Trust contains an express disclaimer of liability on the part of Trust shareholders and the By-laws provide that the Trust shall assume, upon request by the shareholder, the defense on behalf of any Trust shareholders. Moreover, the By-laws also provide for indemnification out of Trust property of any shareholder held personally liable solely by reason of being or having been a shareholder for all loss or expense arising from such liability. Additionally, in the normal course of business, the Trust enters into agreements with service providers that may contain indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred.
H Interim Financial Statements — The interim financial statements relating to December 31, 2020 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Trust’s management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.
2 Variable Rate Term Preferred Shares
Variable rate term preferred shares are a form of preferred shares that represent stock of the Trust. They have a par value of $0.01 per share and a liquidation preference of $100,000 per share.
On September 6, 2017, the Trust issued 320 shares of Series C-1 Variable Rate Term Preferred Shares (VRTP Shares) in a private offering to a commercial paper conduit sponsored by a large financial institution (the Conduit), with a mandatory redemption date of September 8, 2020, unless extended. The Trust and Conduit agreed to extend the mandatory redemption date of the VRTP Shares for two years from September 8, 2020 through September 8, 2022 upon approval by the Trust’s Board of Trustees. The Conduit may elect at any time to revise the redemption date to an earlier date provided the Conduit gives notice to the Trust no less than 365 days prior to the proposed revised redemption date and the proposed revised redemption date is no earlier than September 8, 2021. The Trust and Conduit also agreed to a reduction to the spread to three-month LIBOR used to calculate the dividends on the VRTP Shares from 1.85% to 1.75%, effective August 13, 2020. Such spread is determined based on the current credit rating of the VRTP Shares, which is provided by Moody’s Investor Service. Dividends on the VRTP Shares are determined each day.
The VRTP Shares are redeemable at the option of the Trust at a redemption price equal to $100,000 per share, plus accumulated and unpaid dividends, on any business day and solely for the purpose of reducing the leverage of the Trust. The VRTP Shares are also subject to mandatory redemption at a redemption price equal to $100,000 per share, plus accumulated and unpaid dividends, if the Trust is in default for an extended period on its asset maintenance or leverage ratio requirements with respect to the VRTP Shares. Six months prior to the mandatory redemption date, the Trust is required to segregate in a liquidity account with its custodian investments equal to 110% of the VRTP Shares’ redemption price, and over the six-month period execute a series of liquidation transactions to assure sufficient liquidity to redeem the VRTP Shares. The holders of the VRTP Shares, voting as a class, are entitled to elect two Trustees of the Trust. If the dividends on the VRTP Shares remain unpaid in an amount equal to two full years’ dividends, the holders of the VRTP Shares as a class have the right to elect a majority of the Board of Trustees.
For financial reporting purposes, the liquidation value of the VRTP Shares is presented as a liability on the Statement of Assets and Liabilities and unpaid dividends are included in interest expense and fees payable. Dividends accrued on VRTP Shares are treated as interest payments for financial reporting
| 30 |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Notes to Financial Statements (Unaudited) — continued
purposes and are included in interest expense and fees on the Statement of Operations. In connection with the issuance of the VRTP Shares, the Trust paid an upfront fee of $160,000 and debt issuance costs of $110,112, both of which were amortized to interest expense and fees over a period of three years to the original mandatory redemption date of September 8, 2020.
The carrying amount of the VRTP Shares at December 31, 2020 represents its liquidation value, which approximates fair value. If measured at fair value, the VRTP Shares would have been considered as Level 2 in the fair value hierarchy (see Note 9) at December 31, 2020. The average liquidation preference of the VRTP Shares during the six months ended December 31, 2020 was $32,000,000.
3 Distributions to Shareholders and Income Tax Information
The Trust intends to make monthly distributions of net investment income to common shareholders, after payment of any dividends on any outstanding VRTP Shares. The Trust may also distribute net realized capital gains, if any, generally not more than once per year. Distributions to common shareholders are recorded on the ex-dividend date. Dividends to variable rate term preferred shareholders are accrued daily and payable quarterly. The dividend rate on the VRTP Shares at December 31, 2020 was 1.98%. The amount of dividends accrued and the average annual dividend rate of the VRTP Shares during the six months ended December 31, 2020 were $339,005 and 2.10%, respectively.
Distributions to shareholders are determined in accordance with income tax regulations, which may differ from U.S. GAAP. As required by U.S. GAAP, only distributions in excess of tax basis earnings and profits are reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.
At June 30, 2020, the Trust, for federal income tax purposes, had deferred capital losses of $6,420,714 which would reduce its taxable income arising from future net realized gains on investment transactions, if any, to the extent permitted by the Internal Revenue Code, and thus would reduce the amount of distributions to shareholders, which would otherwise be necessary to relieve the Trust of any liability for federal income or excise tax. The deferred capital losses are treated as arising on the first day of the Trust’s next taxable year and retain the same short-term or long-term character as when originally deferred. Of the deferred capital losses at June 30, 2020, $1,077,936 are short-term and $5,342,778 are long-term.
The cost and unrealized appreciation (depreciation) of investments of the Trust at December 31, 2020, as determined on a federal income tax basis, were as follows:
| Aggregate cost |
$ | 335,672,254 | ||
| Gross unrealized appreciation |
$ | 2,407,985 | ||
| Gross unrealized depreciation |
(6,547,361 | ) | ||
| Net unrealized depreciation |
$ | (4,139,376 | ) | |
4 Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by EVM, a wholly-owned subsidiary of Eaton Vance Corp., as compensation for investment advisory services rendered to the Trust. The fee is computed at an annual rate of 0.70% of the Trust’s average daily total managed assets and is payable monthly. During any extension period of the Trust’s term, the fee will be reduced to 0.35% of the Trust’s average daily total managed assets. Total managed assets as referred to herein represent total assets of the Trust (including assets attributable to borrowings, any outstanding preferred shares, or other forms of leverage) less accrued liabilities (other than liabilities representing borrowings or such other forms of leverage). For the six months ended December 31, 2020, the Trust’s investment adviser fee amounted to $1,144,762. The Trust invests its cash in Cash Reserves Fund. EVM does not currently receive a fee for investment advisory services provided to Cash Reserves Fund. EVM also serves as administrator of the Trust, but receives no compensation.
Trustees and officers of the Trust who are members of EVM’s organization receive remuneration for their services to the Trust out of the investment adviser fee. Trustees of the Trust 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 December 31, 2020, no significant amounts have been deferred. Certain officers and Trustees of the Trust are officers of EVM.
5 Purchases and Sales of Investments
Purchases and sales of investments, other than short-term obligations and including maturities, paydowns and principal repayments on Senior Loans, aggregated $37,142,345 and $43,426,444, respectively, for the six months ended December 31, 2020.
| 31 |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Notes to Financial Statements (Unaudited) — continued
6 Common Shares of Beneficial Interest
The Trust may issue common shares pursuant to its dividend reinvestment plan. There were no common shares issued by the Trust for the six months ended December 31, 2020. Common shares issued by the Trust pursuant to its dividend reinvestment plan for the year ended June 30, 2020 were 9,872.
7 Credit Agreement
The Trust has entered into a Credit Agreement, as amended (the Agreement) with a bank to borrow up to a limit of $109 million. Borrowings under the Agreement are secured by the assets of the Trust. Interest is charged at a rate above the London Interbank Offered Rate (LIBOR) and is payable monthly. Under the terms of the Agreement, in effect through March 16, 2021, the Trust pays a facility fee of 0.15% on the borrowing limit. In connection with the renewal of the Agreement on March 17, 2020, the Trust paid an upfront fee of $54,500, which is being amortized to interest expense over a period of one year. The unamortized balance at December 31, 2020 is approximately $13,000 and is included in prepaid upfront fees on notes payable on the Statement of Assets and Liabilities. The Trust is required to maintain certain net asset levels during the term of the Agreement. At December 31, 2020, the Trust had borrowings outstanding under the Agreement of $81,500,000 at an annual interest rate of 0.95%. Based on the short-term nature of the borrowings under the Agreement and the variable interest rate, the carrying amount of the borrowings at December 31, 2020 approximated its fair value. If measured at fair value, borrowings under the Agreement would have been considered as Level 2 in the fair value hierarchy (see Note 9) at December 31, 2020. For the six months ended December 31, 2020, the average borrowings under the Agreement and the average annual interest rate (excluding fees) were $80,608,696 and 0.97%, respectively.
8 Investments in Affiliated Funds
At December 31, 2020, the value of the Trust’s investment in affiliated funds was $8,517,434, which represents 3.9% of the Trust’s net assets applicable to common shares. Transactions in affiliated funds by the Trust for the six months ended December 31, 2020 were as follows:
| Name of affiliated fund | Value, beginning of period |
Purchases | Sales proceeds |
Net realized gain (loss) |
Change in unrealized appreciation (depreciation) |
Value, end of |
Dividend income |
Units, end of period |
||||||||||||||||||||||||
| Short-Term Investments |
| |||||||||||||||||||||||||||||||
| Eaton Vance Cash Reserves Fund, LLC |
$ | 3,044,693 | $ | 58,018,362 | $ | (52,545,463 | ) | $ | (158 | ) | $ | — | $ | 8,517,434 | $ | 4,405 | 8,517,434 | |||||||||||||||
9 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.
| 32 |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Notes to Financial Statements (Unaudited) — continued
At December 31, 2020, the hierarchy of inputs used in valuing the Trust’s investments, which are carried at value, were as follows:
| Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks |
$ | 142,369 | $ | 1,197,224 | $ | — | $ | 1,339,593 | ||||||||
| Corporate Bonds & Notes |
— | 19,583,367 | — | 19,583,367 | ||||||||||||
| Preferred Stocks |
— | 406,354 | — | 406,354 | ||||||||||||
| Senior Floating-Rate Loans (Less Unfunded Loan Commitments) |
— | 301,684,137 | — | 301,684,137 | ||||||||||||
| Warrants |
— | — | 1,993 | 1,993 | ||||||||||||
| Short-Term Investments |
— | 8,517,434 | — | 8,517,434 | ||||||||||||
| Total Investments |
$ | 142,369 | $ | 331,388,516 | $ | 1,993 | $ | 331,532,878 | ||||||||
| * | None of the unobservable inputs for Level 3 assets, individually or collectively, had a material impact on the Trust. |
Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the six months ended December 31, 2020 is not presented.
10 Risks and Uncertainties
Credit Risk
The Trust invests primarily in below investment grade floating-rate loans, which are considered speculative because of the credit risk of their issuers. Changes in economic conditions or other circumstances are more likely to reduce the capacity of issuers of these securities to make principal and interest payments. Such companies are more likely to default on their payments of interest and principal owed than issuers of investment grade bonds. An economic downturn generally leads to a higher non-payment rate, and a loan or other debt obligation may lose significant value before a default occurs. Lower rated investments also may be subject to greater price volatility than higher rated investments. Moreover, the specific collateral used to secure a loan may decline in value or become illiquid, which would adversely affect the loan’s value.
Pandemic Risk
An outbreak of respiratory disease caused by a novel coronavirus was first detected in China in December 2019 and subsequently spread internationally. This coronavirus has resulted in closing borders, enhanced health screenings, changes to healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. Health crises caused by outbreaks, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and economic risks and disrupt normal market conditions and operations. The impact of this outbreak has negatively affected the worldwide economy, the economies of individual countries, individual companies, and the market in general, and may continue to do so in significant and unforeseen ways, as may other epidemics and pandemics that may arise in the future. Any such impact could adversely affect the Trust’s performance, or the performance of the securities in which the Trust invests.
11 Additional Information
On October 8, 2020, Morgan Stanley and Eaton Vance Corp. (“Eaton Vance”) announced that they had entered into a definitive agreement under which Morgan Stanley would acquire Eaton Vance. Under the Investment Company Act of 1940, as amended, consummation of this transaction may be deemed to result in the automatic termination of an Eaton Vance Fund’s investment advisory agreement and, where applicable, any related sub-advisory agreement. On November 10, 2020, the Trust’s Board approved a new investment advisory agreement. Shareholders of record of the Trust at the close of business on October 29, 2020 who have voting power with respect to such shares are entitled to be present and vote at a joint special meeting of shareholders and at any adjournments or postponements thereof. The joint special meeting of shareholders was held on February 19, 2021 and adjourned to February 23, 2021 with respect to the Trust. The Board has approved an interim investment advisory agreement (the “Interim Agreement”) for the Trust to take effect upon the close of the transaction if Trust shareholders have not approved the new investment advisory agreement prior to the closing. The Interim Agreement would allow the Trust’s investment adviser to continue to manage the Trust for up to an additional 150 days to allow for further proxy solicitation and the Board’s consideration of different options for the Trust. While the Interim Agreement is in effect, the Trust’s investment adviser would continue to manage the Trust under the Board’s oversight. The terms of the Interim Agreement are substantially identical to those of the current investment advisory agreement except for term and escrow provisions required by applicable law.
| 33 |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Board of Trustees’ Contract Approval
Even though the following description of the Board’s (as defined below) consideration of investment advisory agreements covers multiple funds, for purposes of this shareholder report, the description is only relevant as to Eaton Vance Floating-Rate 2022 Target Term Trust.
At a meeting held on November 10, 2020 (the “November Meeting”), the Board of Trustees (each, a “Board” and, collectively, the “Board”) of each closed-end Fund (each, a “Fund” and, collectively, the “Funds”(1)) managed by Eaton Vance Management (“Eaton Vance”), including a majority of the Board members (the “Independent Trustees”) who are not “interested persons” (as defined in the Investment Company Act of 1940 (the “1940 Act”)) of the Funds or Eaton Vance, voted to approve a new investment advisory agreement between each Fund and Eaton Vance, each of which is intended to go into effect upon the completion of the Transaction (as defined below) (each, a “New Agreement” and, collectively, the “New Agreements”). The Board’s evaluative process is more fully described below. In voting its approval of the New Agreements at the November Meeting, the Board relied on an order issued by the Securities and Exchange Commission in response to the impacts of the COVID-19 pandemic that provided temporary relief from the in-person meeting requirements under Section 15 of the 1940 Act.
In voting its approval of the New Agreements, the Board of each Fund relied upon the recommendation of its Contract Review Committee, which is a committee comprised exclusively of Independent Trustees. Prior to and during meetings leading up to the November Meeting, the Contract Review Committee reviewed and discussed information furnished by Eaton Vance and Morgan Stanley, as requested by the Independent Trustees, that the Contract Review Committee considered reasonably necessary to evaluate the terms of the New Agreements and to form its recommendations. Such information included, among other things, the terms and anticipated impacts of Morgan Stanley’s pending acquisition of Eaton Vance Corp. (the “Transaction”) on the Funds and their shareholders. In addition to considering information furnished specifically to evaluate the impact of the Transaction on the Funds and their respective shareholders, the Board and its Contract Review Committee also considered information furnished for prior meetings of the Board and its committees, including, but not limited to, information provided in connection with the annual contract review process for the Funds, which most recently culminated in April 2020 (the “2020 Annual Approval Process”).
The Board of each Fund, including the Independent Trustees, concluded that the applicable New Agreement, including the fees payable thereunder, was fair and reasonable, and it voted to approve the New Agreement and to recommend that shareholders do so as well.
Shortly after the announcement of the Transaction, the Board, including all of the Independent Trustees, met with senior representatives from Eaton Vance and Morgan Stanley at its meeting held on October 13, 2020 to discuss certain aspects of the Transaction and the expected impacts of the Transaction on the Funds and their shareholders. As part of the Board’s evaluation process, counsel to the Independent Trustees, on behalf of the Contract Review Committee, requested additional information to assist the Independent Trustees in their evaluation of the New Agreements and the implications of the Transaction, as well as other contractual arrangements that may be affected by the Transaction. The Contract Review Committee considered information furnished by Eaton Vance and Morgan Stanley and their respective affiliates during meetings on November 5, 2020 and November 10, 2020.
The Contract Review Committee again met with senior representatives of Eaton Vance and Morgan Stanley at its meeting on November 10, 2020, to further discuss the approval of the New Agreements. The representatives from Eaton Vance and Morgan Stanley each made presentations to, and responded to questions from, the Independent Trustees. The Contract Review Committee considered Eaton Vance’s and Morgan Stanley’s responses related to the Transaction and specifically to the Funds, as well as information received in connection with the 2020 Annual Approval Process, with respect to its evaluation of the New Agreements. Among other information, the Board considered:
Information about the Transaction and its Terms
| • | Information about the material terms and conditions, and expected impact, of the Transaction that relate to the Funds, including the expected impact on the businesses conducted by Eaton Vance with respect to the Funds; |
| • | Information about the advantages of the Transaction as they relate to the Funds and their shareholders; |
| • | A commitment that the Funds would not bear any expenses, directly or indirectly, in connection with the Transaction, including with respect to the solicitation of shareholder approval of the New Agreements; |
| • | A commitment that, for a period of three years after the Closing, at least 75% of each Fund’s Board members must not be “interested persons” (as defined in the 1940 Act) of the investment adviser (or predecessor investment adviser, if applicable) pursuant to Section 15(f)(1)(A) of the 1940 Act; |
| • | A commitment that Morgan Stanley would use its reasonable best efforts to ensure that it did not impose any “unfair burden” (as that term is used in section 15(f)(1)(B) of the 1940 Act) on the Funds as a result of the Transaction; |
| • | Information with respect to the potential impact of the Transaction on personnel and/or other resources of Eaton Vance and its affiliates, as well as any expected changes to compensation, including any retention-based compensation intended to incentivize key personnel at Eaton Vance and its affiliates; |
| • | Information regarding any changes that are expected with respect to the Funds’ slate of officers as a result of the Transaction; |
Information about Morgan Stanley
| • | Information about Morgan Stanley’s overall business, including information about the advisory, brokerage and related businesses that Morgan Stanley operates; |
| (1) | References to the Funds do not include Eaton Vance Floating-Rate Income Plus Fund. |
| 34 |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Board of Trustees’ Contract Approval — continued
| • | Information about Morgan Stanley’s financial condition, including its access to capital and other resources required to support the investment advisory businesses related to the Funds; |
| • | Information on how the Funds are expected to fit within Morgan Stanley’s overall business strategy, and any changes that Morgan Stanley contemplates implementing to the Funds in the short- or long-term following the closing of the Transaction (the “Closing”); |
| • | Information regarding risk management functions at Morgan Stanley and its affiliates, including how existing risk management protocols and procedures may impact the Funds and/or the businesses of Eaton Vance and its affiliates as they relate to the Funds; |
| • | Information on the anticipated benefits of the Transaction to the Funds with respect to potential additional distribution capabilities and the ability to access new markets and customer segments through Morgan Stanley’s distribution network, including, in particular, its institutional client base; |
| • | Information regarding the financial condition and reputation of Morgan Stanley, its worldwide presence, experience as a fund sponsor and manager, commitment to maintain a high level of cooperation with, and support to, the Funds, strong client service capabilities, and relationships in the asset management industry; |
Information about the New Agreements
| • | A representation that, after the Closing, all of the Funds will continue to be advised by Eaton Vance, and will continue under the “Eaton Vance” brand; |
| • | Information regarding the terms of the New Agreements, including certain changes as compared to the current investment advisory agreement between each Fund and Eaton Vance (collectively, the “Current Agreements”); |
| • | Information confirming that the fee rates payable under the New Agreements are not changed as compared to the Current Agreements; |
| • | A representation that the New Agreements will not cause any diminution in the nature, extent and quality of services provided by Eaton Vance to the Funds and their respective shareholders, including with respect to compliance and other non-advisory services; |
Information about Fund Performance, Fees and Expenses
| • | A report from an independent data provider comparing the investment performance of each Fund (including, as relevant, total return data, income data, Sharpe ratios and information ratios) to the investment performance of comparable funds and, as applicable, benchmark indices, over various time periods as of the 2020 Annual Approval Process, as well as performance information as of a more recent date; |
| • | A report from an independent data provider comparing each Fund’s total expense ratio (and its components) to those of comparable funds as of the 2020 Annual Approval Process, as well as fee and expense information as of a more recent date; |
| • | In certain instances, data regarding investment performance relative to customized groups of peer funds and blended indices identified by Eaton Vance in consultation with the Portfolio Management Committee of the Board as of the 2020 Annual Approval Process, as well as corresponding performance information as of a more recent date; |
| • | Comparative information concerning the fees charged and services provided by Eaton Vance to each Fund in managing other accounts (which may include other mutual funds, collective investment funds and institutional accounts) using investment strategies and techniques similar to those used in managing such Fund(s), if any; |
| • | Profitability analyses of Eaton Vance with respect to each of the Funds as of the 2020 Annual Approval Process, as well as information regarding the impact of the Transaction on profitability; |
Information about Portfolio Management and Trading
| • | Descriptions of the investment management services currently provided and expected to be provided to each Fund after the Closing, 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 regarding any contemplated changes to the policies and practices of Eaton Vance with respect to trading, including their processes for seeking best execution of portfolio transactions; |
| • | Information regarding the impact on trading and access to capital markets associated with the Funds’ post-Closing affiliations with Morgan Stanley and its affiliates, including potential restrictions with respect to the Funds’ ability to execute portfolio transactions with Morgan Stanley and its affiliates; |
Information about Eaton Vance
| • | Information about the financial results and condition of Eaton Vance since the culmination of the 2020 Annual Approval Process and any material changes in financial condition that are reasonably expected to occur before and after the Closing; |
| • | Confirmation that there are no immediately contemplated post-Closing changes to 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, as applicable post-Closing; |
| • | The Code of Ethics of Eaton Vance and its affiliates, 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; |
| 35 |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Board of Trustees’ Contract Approval — continued
| • | Information concerning the resources devoted to compliance efforts undertaken by Eaton Vance and its affiliates, including descriptions of their various compliance programs and their record of compliance; |
| • | Information concerning the business continuity and disaster recovery plans of Eaton Vance and its affiliates; |
Other Relevant Information
| • | Information concerning the nature, cost and character of the administrative and other non-investment advisory services provided by Eaton Vance and its affiliates; |
| • | Information concerning oversight of the relationship with the custodian, subcustodians and fund accountants by Eaton Vance and/or administrator to each of the Funds; |
| • | Information concerning the benefits of the closed-end fund structure, as well as, where relevant, the closed-end fund’s market prices, trading volume data, distribution rates and other relevant matters; |
| • | Confirmation that Eaton Vance intends to continue to manage the Funds in a manner materially consistent with each Fund’s current investment objective(s) and principal investment strategies; |
| • | Information regarding Morgan Stanley’s commitment to maintaining competitive compensation arrangements to attract and retain highly qualified personnel; |
| • | Confirmation that Eaton Vance and Morgan Stanley will continue to keep the Board apprised of developments as the Transaction progresses and prior to and, as applicable, following the Closing; |
| • | Confirmation that the current senior management team at Eaton Vance has indicated its strong support of the Transaction; and |
| • | Information regarding the fact that Morgan Stanley and Eaton Vance Corp. will each derive benefits from the Transaction and that, as a result, they have a financial interest in the matters that were being considered. |
As indicated above, the Board and its Contract Review Committee also considered information received at its regularly scheduled meetings throughout the year, which included information from portfolio managers and other investment professionals of Eaton Vance regarding investment and performance matters, and considered various investment and trading strategies used in pursuing the Funds’ investment objectives. The Board 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 reports and participated in presentations provided by Eaton Vance and its affiliates with respect to such matters.
The Contract Review Committee was advised throughout the evaluation 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 the New Agreements and the weight to be given to each such factor. The conclusions reached with respect to the New Agreements were based on a comprehensive evaluation of all the information provided and not any single factor. Moreover, each Independent Trustee may have placed varying emphasis on particular factors in reaching conclusions with respect to the New Agreements.
Nature, Extent and Quality of Services
In considering whether to approve the New Agreements, the Board evaluated the nature, extent and quality of services currently provided to each Fund by Eaton Vance under the Current Agreements. In evaluating the nature, extent and quality of services to be provided by Eaton Vance under the New Agreements, the Board considered, among other information, the expected impact, if any, of the Transaction on the operations, facilities, organization and personnel of Eaton Vance, and that Morgan Stanley and Eaton Vance have advised the Board that, following the Closing, there is not expected to be any diminution in the nature, extent and quality of services provided by Eaton Vance to the Funds and their shareholders, including compliance and other non-advisory services, and that there are not expected to be any changes in portfolio management personnel as a result of the Transaction.
The Board also considered the financial resources of Morgan Stanley and Eaton Vance and the importance of having a Fund manager with, or with access to, significant organizational and financial resources. The Board considered the benefits to the Funds of being part of a larger combined organization with greater financial resources following the Closing, particularly during periods of market disruptions and volatility. In this regard, the Board considered information provided by Morgan Stanley regarding its business and operating structure, scale of operation, leadership and reputation, distribution capabilities and financial condition, as well as information on how the Funds are expected to fit within Morgan Stanley’s overall business strategy and any changes that Morgan Stanley contemplates in the short- or long-term following the Closing. The Board also noted Morgan Stanley’s and Eaton Vance’s commitment to keep the Board apprised of developments with respect to its long-term integration plans for Eaton Vance and existing Morgan Stanley affiliates and their respective personnel.
The Board considered Eaton Vance’s management capabilities, investment processes and investment performance in light of the types of investments held by each Fund, including the education, experience and number of investment professionals and other personnel who provide portfolio management, investment research, and similar services to each Fund. In particular, the Board considered the abilities and experience of Eaton Vance’s investment professionals in implementing each Fund’s investment strategies. The Board also took into account the resources dedicated to portfolio management and other services, the compensation methods of Eaton Vance and other factors, including the reputation and resources of Eaton Vance to recruit and retain highly qualified research, advisory and supervisory investment professionals. With respect to the recruitment and retention of key personnel, the Board
| 36 |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Board of Trustees’ Contract Approval — continued
noted information from Morgan Stanley and Eaton Vance regarding the benefits of joining Morgan Stanley. In addition, the Board considered the time and attention devoted to the Funds 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 Funds, including the provision of administrative services. With respect to the foregoing, the Board also considered information from Eaton Vance and Morgan Stanley regarding the anticipated impact of the Transaction on such matters. The Board also considered the business-related and other risks to which Eaton Vance or its affiliates may be subject in managing the Funds and in connection with the Transaction. The Board considered the deep experience of Eaton Vance and its affiliates with managing and operating funds organized as exchange-listed closed-end funds, such as the Funds. In this regard, the Board considered, among other things, Eaton Vance’s and its affiliates’ experience with implementing leverage arrangements, monitoring and assessing trading price discounts and premiums and adhering to the requirements of securities exchanges.
The Board considered the compliance programs of Eaton Vance 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 Eaton Vance and its affiliates to requests in recent years from regulatory authorities, such as the Securities and Exchange Commission and the Financial Industry Regulatory Authority. The Board also considered certain information relating to the compliance record of Morgan Stanley and its affiliates, including information requests in recent years from regulatory authorities. With respect to the foregoing, including the compliance programs of Eaton Vance, the Board noted information regarding the impact of the Transaction, as well as Eaton Vance’s and Morgan Stanley’s commitment to keep the Board apprised of developments with respect to its long-term integration plans for Eaton Vance and existing Morgan Stanley affiliates and their respective personnel.
The Board considered other administrative services provided and to be provided or overseen by Eaton Vance 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. The Board noted information that the Transaction was not expected to have any material impact on such matters in the near-term.
In evaluating the nature, extent and quality of the services to be provided under the New Agreements, the Board also considered investment performance information provided for each Fund in connection with the 2020 Annual Approval Process, as well as information provided as of a more recent date. In this regard, the Board compared each Fund’s investment performance to that of comparable funds identified by an independent data provider (the peer group), as well as appropriate benchmark indices and, for certain Funds, a custom peer group of similarly managed funds. The Board also considered, where applicable, Fund-specific performance explanations based on criteria established by the Board in connection with the 2020 Annual Approval Process and, where applicable, performance explanations as of a more recent date. In addition to the foregoing information, it was also noted that the Board has received and discussed with management information throughout the year at periodic intervals comparing each Fund’s performance against applicable benchmark indices and peer groups. In addition, the Board considered each Fund’s performance in light of overall financial market conditions. Where a Fund’s relative underperformance to its peers was significant during one or more specified periods, the Board noted the explanations from Eaton Vance concerning the Fund’s relative performance versus the peer group.
After consideration of the foregoing factors, among others, and based on their review of the materials provided and the assurances received from, and recommendations of, Eaton Vance and Morgan Stanley, the Board determined that the Transaction was not expected to adversely affect the nature, extent and quality of services provided to the Funds by Eaton Vance and its affiliates and that the Transaction was not expected to have an adverse effect on the ability of Eaton Vance and its affiliates to provide those services. The Board concluded that the nature, extent and quality of services expected to be provided by Eaton Vance, taken as a whole, are appropriate and expected to be consistent with the terms of the New Agreements.
Management Fees and Expenses
The Board considered contractual fee rates payable by each Fund for advisory and administrative services (referred to collectively as “management fees”) in connection with the 2020 Annual Approval Process, as well as information provided as of a more recent date. As part of its review, the Board considered each Fund’s management fees and total expense ratio over various periods, 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, and, where applicable, certain Fund-specific factors, that had an impact on a Fund’s total expense ratio relative to comparable funds, as identified by Eaton Vance in response to inquiries from the Contract Review Committee. The Board considered that the New Agreement does not change a Fund’s management fee rate or the computation method for calculating such fees, including any separately executed permanent contractual management fee reduction currently in place for the Fund.
The Board also received and considered, where applicable, information about the services offered and the fee rates charged by Eaton Vance to other types of accounts with investment objectives and strategies that are substantially similar to and/or managed in a similar investment style as a Fund. In this regard, the Board received information about the differences in the nature and scope of services Eaton Vance provides to the Funds as compared to other types of accounts and the material differences in compliance, reporting and other legal burdens and risks to Eaton Vance as between each Fund and other types of accounts.
| 37 |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Board of Trustees’ Contract Approval — continued
After considering the foregoing information, and in light of the nature, extent and quality of the services expected to be provided by Eaton Vance, the Board concluded that the management fees charged for advisory and related services are reasonable with respect to its approval of the New Agreements.
Profitability and “Fall-Out” Benefits
During the 2020 Annual Approval Process, the Board considered the level of profits realized by Eaton Vance and relevant affiliates thereof in providing investment advisory and administrative services to the Funds 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 Eaton Vance and its affiliates to third parties in respect of distribution or other services. In light of the foregoing factors and the nature, extent and quality of the services rendered, the profits realized by Eaton Vance and its affiliates were not deemed to be excessive by the Board.
The Board noted that Morgan Stanley and Eaton Vance are expected to realize, over time, cost savings from the Transaction based on eliminating duplicate corporate overhead expenses. The Board considered, however, information from Eaton Vance and Morgan Stanley that such cost savings are not expected to be realized immediately upon the Closing and that, accordingly, there are currently no specific expected changes in the levels of profitability associated with the advisory and other services provided to the Funds that are contemplated as a result of the Transaction. The Board noted that it will continue to receive information regarding profitability during its annual contract review processes, including the extent to which cost savings and/or other efficiencies result in changes to profitability levels.
The Board also considered direct or indirect fall-out benefits received by Eaton Vance and its affiliates in connection with their respective relationships with the Funds, including the benefits of research services that may be available to Eaton Vance and its affiliates as a result of securities transactions effected for the Funds and other investment advisory clients. In evaluating the fall-out benefits to be received by Eaton Vance and its affiliates under the New Agreements, the Board considered whether the Transaction would have an impact on the fall-out benefits currently realized by Eaton Vance and its affiliates in connection with services provided pursuant to the Current Agreements.
The Board of each Fund considered that Morgan Stanley may derive reputational and other benefits from its ability to use the names of Eaton Vance and its affiliates in connection with operating and marketing the Funds. The Board considered that the Transaction, if completed, would significantly increase Morgan Stanley’s assets under management and expand Morgan Stanley’s investment capabilities.
Economies of Scale
The Board also considered the extent to which Eaton Vance and its affiliates, on the one hand, and the Funds, on the other hand, can expect to realize benefits from economies of scale as the assets of the Funds 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. As part of the 2020 Annual Approval Process, the Board reviewed data summarizing the increases and decreases in the assets of the Funds and of all Eaton Vance funds as a group over various time periods, and evaluated the extent to which the total expense ratio of each Fund and the profitability of Eaton Vance and its affiliates may have been affected by such increases or decreases.
The Board noted that Morgan Stanley and Eaton Vance are expected to benefit from possible growth of the Funds resulting from enhanced distribution capabilities, including with respect to the Funds’ potential access to Morgan Stanley’s institutional client base. Based upon the foregoing, the Board concluded that the Funds currently share in the benefits from economies of scale, if any, when they are realized by Eaton Vance, and that the Transaction is not expected to impede a Fund from continuing to benefit from any future economies of scale realized by Eaton Vance. The Board also considered the fact that the Funds are not continuously offered in the same manner as an open-end fund and that the Funds’ assets may not increase materially in the foreseeable future.
Conclusion
Based on its consideration of the foregoing, and such other information it deemed relevant, including the factors and conclusions described above, the Contract Review Committee recommended to the Board approval of the New Agreements. Based on the recommendation of the Contract Review Committee, the Board, including a majority of the Independent Trustees, unanimously voted to approve the New Agreements for the Funds and recommended that shareholders approve the New Agreements.
| 38 |
Table of Contents
Eaton Vance
Floating-Rate 2022 Target Term Trust
December 31, 2020
Officers
Trustees
| * | Interested Trustee |
| 39 |
Table of Contents
Eaton Vance Funds
Privacy. The Eaton Vance organization is committed to ensuring your financial privacy. Each entity listed below has adopted privacy policy and procedures (“Privacy Program”) Eaton Vance believes is reasonably designed to protect your personal information and to govern when and with whom Eaton Vance may share your personal information.
| • | At the time of opening an account, Eaton Vance generally requires you to provide us with certain information such as name, address, social security number, tax status, account numbers, and account balances. This information is necessary for us to both open an account for you and to allow us to satisfy legal requirements such as applicable anti-money laundering reviews and know-your-customer requirements. |
| • | On an ongoing basis, in the normal course of servicing your account, Eaton Vance may share your information with unaffiliated third parties that perform various services for Eaton Vance and/or your account. These third parties include transfer agents, custodians, broker/dealers and our professional advisers including auditors, accountants, and legal counsel. Eaton Vance may share your personal information with our affiliates. Eaton Vance may also share your information as required or permitted by applicable law. |
| • | We have adopted a Privacy Program we believe is reasonably designed to protect the confidentiality of your personal information and to prevent unauthorized access to your information. |
| • | We reserve the right to change our Privacy Program at any time upon proper notification to you. You may want to review our Privacy Program periodically for changes by accessing the link on our homepage: www.eatonvance.com. |
Our pledge of protecting your personal information applies to the following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance WaterOak Advisors, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management (International) Limited, Eaton Vance Advisers International Ltd., Eaton Vance Global Advisors Limited, Eaton Vance Management’s Real Estate Investment Group, Boston Management and Research, Calvert Research and Management, and Calvert Funds. This notice supersedes all previously issued privacy disclosures. For more information about Eaton Vance’s Privacy Program or about how your personal information may be used, 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. Certain information filed on Form N-PORT may be viewed on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the 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.
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”.
| 40 |
Table of Contents
Table of Contents
27977 12.31.20
Table of Contents
| 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.
Table of Contents
| 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) |
| (a)(2)(ii) |
| (b) |
Table of Contents
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 Floating-Rate 2022 Target Term Trust | ||
| By: | /s/ Eric A. Stein | |
| Eric A. Stein | ||
| President | ||
| Date: | February 24, 2021 | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/ James F. Kirchner | |
| James F. Kirchner | ||
| Treasurer | ||
| Date: | February 24, 2021 | |
| By: | /s/ Eric A. Stein | |
| Eric A. Stein | ||
| President | ||
| Date: | February 24, 2021 | |