Eaton Vance Closed-End Funds Release Estimated Sources of Distributions
MWN-AI** Summary
Eaton Vance recently published estimates regarding the sources of distributions for its closed-end funds for May 2025, as per its managed distribution plan approved by the Board of Trustees and sanctioned by the U.S. Securities and Exchange Commission. The press release serves as a notification for shareholders, detailing expected monthly cash distribution amounts per common share for various funds.
For example, the Eaton Vance Enhanced Equity Income Fund (NYSE: EOI) plans to distribute $0.1338 per share, entirely sourced from net realized long-term capital gains. In contrast, the Eaton Vance Enhanced Equity Income Fund II (NYSE: EOS) will distribute $0.1523 per share, again solely from long-term capital gains. Other funds, such as the Eaton Vance Risk-Managed Diversified Equity Income Fund (NYSE: ETJ), will see distributions of $0.0651 per share, with a notable return of capital playing a significant role, as it accounted for 100% of the current distribution.
Investors should be wary that the total regular distribution might fluctuate due to market conditions. Importantly, a portion of these distributions may be characterized as returns of capital, indicating that they could be payouts of the original investment rather than generated income or yield. This can complicate tax reporting, as definitive tax characterizations will only be determined at year-end.
The release further highlights performance metrics such as annual total returns at net asset value (NAV) and annualized current distribution rates as expressed in percentages. The estimates serve primarily as informational guidance, pending further evaluation over the fiscal year, with official reporting to be issued via Form 1099-DIV for taxation purposes.
MWN-AI** Analysis
In evaluating the recent distribution announcements from Eaton Vance's closed-end funds as of May 2025, investors should exercise caution, particularly in light of the significant portion of distributions characterized as returns of capital. Each fund, including popular choices like the Eaton Vance Enhanced Equity Income Fund (EOI) and Eaton Vance Tax-Managed Buy-Write Opportunities Fund (ETV), has disclosed that nearly all distributions derive from realized long-term capital gains rather than income, with some funds reporting return of capital components as high as 96%.
The implications of this are twofold. First, while high monthly distributions might be appealing, they can signify that funds are returning investors' own capital rather than generating income through successful investments. This can lead to a gradual depreciation of shareholder value over time if the trend continues, as the funds effectively pay investors with their invested capital.
Second, considering the cumulative annual performance figures, several funds show concerning negative returns year-to-date, indicating market volatility that could challenge future distributions. For instance, the EOI reported a cumulative total return of -3.25% and an 8.59% annualized distribution rate relative to NAV, highlighting inconsistent performance.
Investors contemplating entry or continuation with Eaton Vance closed-end funds should assess their risk tolerance and focus on the underlying fund fundamentals beyond just attractive cash flows. It may also be prudent to consider diversification or alternative investments that offer a more reliable income stream. Ultimately, the exhibited pattern of relying heavily on capital gains and returns of capital prompts a thorough review of long-term investment strategies and the potential impact on overall wealth accumulation.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
The Eaton Vance closed-end funds listed below released today the estimated sources of their May distributions (each a “Fund”). This press release is issued as required by the Funds’ managed distribution plan (Plan) and an exemptive order received from the U.S. Securities and Exchange Commission. The Board of Trustees has approved the implementation of the Plan to make monthly, as noted below, 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 a Fund’s distributions for the 2025 calendar year. Shareholders should note that each Fund’s total regular distribution amount is subject to change as a result of market conditions or other factors.
IMPORTANT DISCLOSURE : You should not draw any conclusions about each Fund’s investment performance from the amount of this distribution or from the terms of each Fund’s Plan. Each 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 each Fund is paid back to you. A return of capital distribution does not necessarily reflect each 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 each Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. Each 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.
The following tables set forth estimates of the sources of each Fund’s May distribution and its cumulative distributions paid for its fiscal year through May 30, 2025, and information relating to each Fund’s performance based on its net asset value (NAV) for certain periods.
Eaton Vance Enhanced Equity Income Fund (NYSE: EOI) | ||||
Distribution Period: | May- 2025 | |||
Distribution Amount per Common Share: | $0.1338 | |||
Distribution Frequency: | Monthly | |||
Fiscal Year End: | September | |||
Source | Current Distribution | % of Current Distribution | Cumulative Distributions for the Fiscal Year-to-Date | % of the Cumulative Distributions for the Fiscal Year-to-Date |
Net Investment Income | $0.0000 | 0.00% | $0.0000 | 0.00% |
Net Realized Short-Term Capital Gains | $0.0000 | 0.00% | $0.0000 | 0.00% |
Net Realized Long-Term Capital Gains | $0.1338 | 100.00% | $1.0704 | 100.00% |
Return of Capital or Other Capital Source(s) | $0.0000 | 0.00% | $0.0000 | 0.00% |
Total per common share | $0.1338 | 100.00% | $1.0704 | 100.00% |
Average annual total return at NAV for the 5-year period ended on April 30, 2025 1 | 14.12% | |||
Annualized current distribution rate expressed as a percentage of NAV as of April 30, 2025 2 | 8.59% | |||
Cumulative total return at NAV for the fiscal year through April 30, 2025 3 | -3.25% | |||
Cumulative fiscal year to date distribution rate as a percentage of NAV as of April 30, 2025 4 | 5.01% | |||
Eaton Vance Enhanced Equity Income Fund II (NYSE: EOS) | ||||
Distribution Period: | May- 2025 | |||
Distribution Amount per Common Share: | $0.1523 | |||
Distribution Frequency: | Monthly | |||
Fiscal Year End: | December | |||
Source | Current Distribution | % of Current Distribution | Cumulative Distributions for the Fiscal Year-to-Date | % of the Cumulative Distributions for the Fiscal Year-to-Date |
Net Investment Income | $0.0000 | 0.00% | $0.0000 | 0.00% |
Net Realized Short-Term Capital Gains | $0.0000 | 0.00% | $0.0000 | 0.00% |
Net Realized Long-Term Capital Gains | $0.1523 | 100.00% | $0.7615 | 100.00% |
Return of Capital or Other Capital Source(s) | $0.0000 | 0.00% | $0.0000 | 0.0% |
Total per common share | $0.1523 | 100.00% | $0.7615 | 100.00% |
Average annual total return at NAV for the 5-year period ended on April 30, 2025 1 | 13.89% | |||
Annualized current distribution rate expressed as a percentage of NAV as of April 30, 2025 2 | 8.61% | |||
Cumulative total return at NAV for the fiscal year through April 30, 2025 3 | -6.35% | |||
Cumulative fiscal year to date distribution rate as a percentage of NAV as of April 30, 2025 4 | 2.87% | |||
Eaton Vance Risk-Managed Diversified Equity Income Fund (NYSE: ETJ) | ||||
Distribution Period: | May- 2025 | |||
Distribution Amount per Common Share: | $0.0651 | |||
Distribution Frequency: | Monthly | |||
Fiscal Year End: | December | |||
Source | Current Distribution | % of Current Distribution | Cumulative Distributions for the Fiscal Year-to-Date | % of the Cumulative Distributions for the Fiscal Year-to-Date |
Net Investment Income | $0.0000 | 0.00% | $0.0000 | 0.00% |
Net Realized Short-Term Capital Gains | $0.0000 | 0.00% | $0.0000 | 0.00% |
Net Realized Long-Term Capital Gains | $0.0000 | 0.00% | $0.1178 | 36.2% |
Return of Capital or Other Capital Source(s) | $0.0651 | 100.00% | $0.2077 | 63.8% |
Total per common share | $0.0651 | 100.00% | $0.3255 | 100.00% |
Average annual total return at NAV for the 5-year period ended on April 30, 2025 1 | 9.12% | |||
Annualized current distribution rate expressed as a percentage of NAV as of April 30, 2025 2 | 8.52% | |||
Cumulative total return at NAV for the fiscal year through April 30, 2025 3 | -2.92% | |||
Cumulative fiscal year to date distribution rate as a percentage of NAV as of April 30, 2025 4 | 2.84% | |||
Eaton Vance Tax-Advantaged Dividend Income Fund (NYSE: EVT) | ||||
Distribution Period: | May- 2025 | |||
Distribution Amount per Common Share: | $0.1646 | |||
Distribution Frequency: | Monthly | |||
Fiscal Year End: | October | |||
Source | Current Distribution | % of Current Distribution | Cumulative Distributions for the Fiscal Year-to-Date | % of the Cumulative Distributions for the Fiscal Year-to-Date |
Net Investment Income | $0.0263 | 16.0% | $0.1970 | 17.1% |
Net Realized Short-Term Capital Gains | $0.0000 | 0.0% | $0.0600 | 5.2% |
Net Realized Long-Term Capital Gains | $0.1383 | 84.0% | $0.8952 | 77.7% |
Return of Capital or Other Capital Source(s) | $0.0000 | 0.00% | $0.0000 | 0.00% |
Total per common share | $0.1646 | 100.00% | $1.1522 | 100.00% |
Average annual total return at NAV for the 5-year period ended on April 30, 2025 1 | 12.45% | |||
Annualized current distribution rate expressed as a percentage of NAV as of April 30, 2025 2 | 8.17% | |||
Cumulative total return at NAV for the fiscal year through April 30, 2025 3 | -4.17% | |||
Cumulative fiscal year to date distribution rate as a percentage of NAV as of April 30, 2025 4 | 4.08% | |||
Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund (NYSE: ETO) | ||||
Distribution Period: | May- 2025 | |||
Distribution Amount per Common Share: | $0.1733 | |||
Distribution Frequency: | Monthly | |||
Fiscal Year End: | October | |||
Source | Current Distribution | % of Current Distribution | Cumulative Distributions for the Fiscal Year-to-Date | % of the Cumulative Distributions for the Fiscal Year-to-Date |
Net Investment Income | $0.0872 | 50.3% | $0.2669 | 22.0% |
Net Realized Short-Term Capital Gains | $0.0000 | 0.0% | $0.0000 | 0.0% |
Net Realized Long-Term Capital Gains | $0.0861 | 49.7% | $0.9462 | 78.0% |
Return of Capital or Other Capital Source(s) | $0.0000 | 0.0% | $0.0000 | 0.0% |
Total per common share | $0.1733 | 100.00% | $1.2131 | 100.00% |
Average annual total return at NAV for the 5-year period ended on April 30, 2025 1 | 14.17% | |||
Annualized current distribution rate expressed as a percentage of NAV as of April 30, 2025 2 | 7.85% | |||
Cumulative total return at NAV for the fiscal year through April 30, 2025 3 | -0.44% | |||
Cumulative fiscal year to date distribution rate as a percentage of NAV as of April 30, 2025 4 | 3.92% | |||
Eaton Vance Tax-Managed Buy-Write Income Fund (NYSE: ETB) | ||||
Distribution Period: | May- 2025 | |||
Distribution Amount per Common Share: | $0.1058 | |||
Distribution Frequency: | Monthly | |||
Fiscal Year End: | December | |||
Source | Current Distribution | % of Current Distribution | Cumulative Distributions for the Fiscal Year-to-Date | % of the Cumulative Distributions for the Fiscal Year-to-Date |
Net Investment Income | $0.0047 | 4.4% | $0.0222 | 4.2% |
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) | $0.1011 | 95.6% | $0.5068 | 95.8% |
Total per common share | $0.1058 | 100.00% | $0.5290 | 100.00% |
Average annual total return at NAV for the 5-year period ended on April 30, 2025 1 | 11.41% | |||
Annualized current distribution rate expressed as a percentage of NAV as of April 30, 2025 2 | 8.82% | |||
Cumulative total return at NAV for the fiscal year through April 30, 2025 3 | -4.80% | |||
Cumulative fiscal year to date distribution rate as a percentage of NAV as of April 30, 2025 4 | 2.94% | |||
Eaton Vance Tax-Managed Buy-Write Opportunities Fund (NYSE: ETV) | ||||
Distribution Period: | May- 2025 | |||
Distribution Amount per Common Share: | $0.0993 | |||
Distribution Frequency: | Monthly | |||
Fiscal Year End: | December | |||
Source | Current Distribution | % of Current Distribution | Cumulative Distributions for the Fiscal Year-to-Date | % of the Cumulative Distributions for the Fiscal Year-to-Date |
Net Investment Income | $0.0026 | 2.6% | $0.0091 | 1.8% |
Net Realized Short-Term Capital Gains | $0.0000 | 0.00% | $0.0000 | 0.00% |
Net Realized Long-Term Capital Gains | $0.0000 | 0.00% | $0.0000 | 0.00% |
Return of Capital or Other Capital Source(s) | $0.0967 | 97.4% | $0.4874 | 98.2% |
Total per common share | $0.0993 | 100.00% | $0.4965 | 100.00% |
Average annual total return at NAV for the 5-year period ended on April 30, 2025 1 | 10.98% | |||
Annualized current distribution rate expressed as a percentage of NAV as of April 30, 2025 2 | 8.74% | |||
Cumulative total return at NAV for the fiscal year through April 30, 2025 3 | -6.12% | |||
Cumulative fiscal year to date distribution rate as a percentage of NAV as of April 30, 2025 4 | 2.91% | |||
Eaton Vance Tax-Managed Diversified Equity Income Fund (NYSE: ETY) | ||||
Distribution Period: | May- 2025 | |||
Distribution Amount per Common Share: | $0.0992 | |||
Distribution Frequency: | Monthly | |||
Fiscal Year End: | October | |||
Source | Current Distribution | % of Current Distribution | Cumulative Distributions for the Fiscal Year-to-Date | % of the Cumulative Distributions for the Fiscal Year-to-Date |
Net Investment Income | $0.0000 | 0.00% | $0.0000 | 0.00% |
Net Realized Short-Term Capital Gains | $0.0000 | 0.00% | $0.0000 | 0.00% |
Net Realized Long-Term Capital Gains | $0.0992 | 100.00% | $0.6944 | 100.0% |
Return of Capital or Other Capital Source(s) | $0.0000 | 0.00% | $0.0000 | 0.00% |
Total per common share | $0.0992 | 100.0% | $0.6944 | 100.0% |
Average annual total return at NAV for the 5-year period ended on April 30, 2025 1 | 14.27% | |||
Annualized current distribution rate expressed as a percentage of NAV as of April 30, 2025 2 | 8.50% | |||
Cumulative total return at NAV for the fiscal year through April 30, 2025 3 | -2.28% | |||
Cumulative fiscal year to date distribution rate as a percentage of NAV as of April 30, 2025 4 | 4.25% | |||
Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund (NYSE: ETW) | ||||
Distribution Period: | May- 2025 | |||
Distribution Amount per Common Share: | $0.0664 | |||
Distribution Frequency: | Monthly | |||
Fiscal Year End: | December | |||
Source | Current Distribution | % of Current Distribution | Cumulative Distributions for the Fiscal Year-to-Date | % of the Cumulative Distributions for the Fiscal Year-to-Date |
Net Investment Income | $0.0107 | 16.1% | $0.0389 | 11.7% |
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) | $0.0557 | 83.9% | $0.2932 | 88.3% |
Total per common share | $0.0664 | 100.00% | $0.3321 | 100.00% |
Average annual total return at NAV for the 5-year period ended on April 30, 2025 1 | 9.86% | |||
Annualized current distribution rate expressed as a percentage of NAV as of April 30, 2025 2 | 8.83% | |||
Cumulative total return at NAV for the fiscal year through April 30, 2025 3 | 0.13% | |||
Cumulative fiscal year to date distribution rate as a percentage of NAV as of April 30, 2025 4 | 2.94% | |||
Eaton Vance Tax-Advantaged Global Dividend Income (NYSE: ETG) | ||||
Distribution Period: | May- 2025 | |||
Distribution Amount per Common Share: | $0.1293 | |||
Distribution Frequency: | Monthly | |||
Fiscal Year End: | October | |||
Source | Current Distribution | % of Current Distribution | Cumulative Distributions for the Fiscal Year-to-Date | % of the Cumulative Distributions for the Fiscal Year-to-Date |
Net Investment Income | $0.0891 | 68.9% | $0.2217 | 24.5% |
Net Realized Short-Term Capital Gains | $0.0000 | 0.0% | $0.0000 | 0.0% |
Net Realized Long-Term Capital Gains | $0.0000 | 0.0% | $0.4838 | 53.5% |
Return of Capital or Other Capital Source(s) | $0.0402 | 31.1% | $0.1996 | 22.0% |
Total per common share | $0.1293 | 100.00% | $0.9051 | 100.00% |
Average annual total return at NAV for the 5-year period ended on April 30, 2025 1 | 14.74% | |||
Annualized current distribution rate expressed as a percentage of NAV as of April 30, 2025 2 | 7.86% | |||
Cumulative total return at NAV for the fiscal year through April 30, 2025 3 | 0.38% | |||
Cumulative fiscal year to date distribution rate as a percentage of NAV as of April 30, 2025 4 | 3.93% | |||
Eaton Vance Tax-Managed Global Diversified Equity Income Fund (NYSE: EXG) | ||||
Distribution Period: | May- 2025 | |||
Distribution Amount per Common Share: | $0.0657 | |||
Distribution Frequency: | Monthly | |||
Fiscal Year End: | October | |||
Source | Current Distribution | % of Current Distribution | Cumulative Distributions for the Fiscal Year-to-Date | % of the Cumulative Distributions for the Fiscal Year-to-Date |
Net Investment Income | $0.0056 | 8.6% | $0.0634 | 13.8% |
Net Realized Short-Term Capital Gains | $0.0000 | 0.00% | $0.0045 | 1.0% |
Net Realized Long-Term Capital Gains | $0.0407 | 61.9% | $0.3726 | 81.0% |
Return of Capital or Other Capital Source(s) | $0.0194 | 29.5% | $0.0194 | 4.2% |
Total per common share | $0.0657 | 100.00% | $0.4599 | 100.00% |
Average annual total return at NAV for the 5-year period ended on April 30, 2025 1 | 12.68% | |||
Annualized current distribution rate expressed as a percentage of NAV as of April 30, 2025 2 | 9.02% | |||
Cumulative total return at NAV for the fiscal year through April 30, 2025 3 | -0.41% | |||
Cumulative fiscal year to date distribution rate as a percentage of NAV as of April 30, 2025 4 | 4.51% | |||
1 Average annual total return at NAV represents the change in NAV of the Fund, with all distributions reinvested, for the 5-year period ended on April 30, 2025 | ||||
2 The annualized current distribution rate is the cumulative distribution rate annualized as a percentage of the Fund's NAV as of April 30, 2025 | ||||
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, 2025 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, 2025 measured on the dollar value of the distributions in year-to-date period as a percentage of the Fund's NAV as of April 30, 2025 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250530902434/en/
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FAQ**
How does the distribution strategy of the Eaton Vance Tax-Managed Global Diversified Equity Income Fund of Beneficial Interest EXG impact its long-term investment performance compared to traditional equity funds?
Given the estimated return of capital in the Eaton Vance Tax-Managed Global Diversified Equity Income Fund of Beneficial Interest EXG, how should investors adjust their income expectations for the 20fiscal year?
What factors contribute to the deviations in net investment income for the Eaton Vance Tax-Managed Global Diversified Equity Income Fund of Beneficial Interest EXG, and how can shareholders anticipate changes in future distributions?
How does the recent performance data of the Eaton Vance Tax-Managed Global Diversified Equity Income Fund of Beneficial Interest EXG align with broader market trends, particularly in the context of its average annual total return?
**MWN-AI FAQ is based on asking OpenAI questions about Eaton Vance Enhance Equity Income Fundd Equity Income Fund Shares of Beneficial Interest (NYSE: EOI).
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