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Eaton Vance Municipal Closed-End Funds Announce Changes To Investment Objective And Strategies

BOSTON, April 24, 2019 /PRNewswire/ -- The Board of Trustees of each of Eaton Vance Municipal Bond Fund (EIM), Eaton Vance California Municipal Bond Fund (EVM) and Eaton Vance New York Municipal Bond Fund (ENX) (each a "Fund" and, collectively, the "Funds") has approved changes to each Fund's investment objective and investment policies in order to permit each Fund to invest up to 20% of its net assets in municipal obligations rated below investment grade and to permit each Fund to invest up to 20% of its net assets in municipal obligations on which the interest may be subject to the alternative minimum tax ("AMT") ("AMT bonds"), as described below. Each of the foregoing changes will be effective immediately.

Investment Objectives. Each Fund's investment objective has been revised to eliminate references to the AMT, however, each Fund will continue to invest at least 80% of its net assets in municipal obligations which are exempt from the AMT. Each Fund's current and revised investment objective is set forth below:

Fund

Current Objective

Revised Objective

EIM

To provide current income exempt from federal income tax, including AMT

To provide current income exempt from federal income tax

EVM

To provide current income exempt from federal income tax, including AMT, and California personal income tax

To provide current income exempt from federal income tax and California personal income tax

ENX

To provide current income exempt from federal income tax, including the AMT and New York State and  New York City personal income tax

To provide current income exempt from federal income tax and New York State and  New York City personal income tax

Investment Policies. Pursuant to its revised investment policies, each Fund may invest up to 20% of its net assets in municipal obligations rated BBB/Baa or below (or unrated obligations deemed by the Fund's adviser, Eaton Vance Management ("Eaton Vance"), to be of equivalent quality), provided that not more than 15% of its net assets may be invested in municipal obligations rated below B (or unrated obligations deemed by Eaton Vance to be of equivalent quality) and may invest up to 20% of its net assets in AMT bonds. Each Fund's investment policy to seek at all times to avoid investments in AMT bonds has been eliminated.

Each Fund's policy to invest at least 80% of its net assets in municipal obligations, the interest on which is exempt from federal income tax, including AMT, and for EVM and ENX the state and/or local taxes noted above, and that are rated A or better is unchanged.

Additional information about the changes to each Fund's investment objective and investment policies is available online at funds.eatonvance.com

The Fund's investment adviser is Eaton Vance Management, a subsidiary of Eaton Vance Corp.  Eaton Vance Corp. (EV) provides advanced investment strategies and wealth management solutions to forward-thinking investors around the world. Through principal investment affiliates Eaton Vance Management, Parametric, Atlanta Capital, Hexavest and Calvert, the Company offers a diversity of investment approaches, encompassing bottom-up and top-down fundamental active management, responsible investing, systematic investing and customized implementation of client-specified portfolio exposures. As of March 31, 2019, Eaton Vance had consolidated assets under management of $457.6 billion. For more information, visit eatonvance.com.

The information contained herein is provided for informational purposes only and does not constitute a solicitation of an offer to buy or sell Fund shares. Shares of each Fund are available for purchase and sale only through secondary market trading on an exchange or alternative trading venue.

There is no assurance that a Fund will achieve its investment objective. Investments rated below investment grade and comparable unrated investments (sometimes referred to as "junk") have speculative characteristics because of the credit risk associated with their issuers. Changes in economic conditions or other circumstances typically have a greater effect on the ability of issuers of lower rated investments to make principal and interest payments than they do on issuers of higher rated investments. An economic downturn generally leads to a higher non-payment rate, and a lower rated investment may lose significant value before a default occurs. Lower rated investments typically are subject to greater price volatility and illiquidity than higher rated investments.

Interest on certain municipal obligations in which each Fund may invest, such as certain private activity bonds, is included as an item of tax preference in determining the amount of a taxpayer's alternative minimum taxable income. To the extent that a Fund receives income from such municipal obligations, a portion of the dividends paid by the Fund, although exempt from regular federal income tax, will be taxable to common shareholders to the extent that their tax liability is determined under the alternative minimum tax ("AMT"). Furthermore, exempt-interest dividends are included in determining what portion, if any, of a person's social security and railroad retirement benefits will be includible in gross income subject to regular federal income tax. Each Fund will annually provide a report indicating the percentage of the Fund's income attributable to municipal obligations subject to the AMT. Each Fund may not be suitable for investors subject to the AMT. Each Fund may engage in other investment practices that may involve additional risks.

Shares of closed-end funds often trade at a discount from their net asset value. The market price of Fund shares may vary from net asset value based on factors affecting the supply and demand for shares, such as Fund distribution rates relative to similar investments, investors' expectations for future distribution changes, the clarity of the Fund's investment strategy and future return expectations, and investors' confidence in the underlying markets in which the Fund invests. Fund shares are subject to investment risk, including possible loss of principal invested. A Fund is not a complete investment program and investors may lose money investing in a Fund. An investment in a Fund may not be appropriate for all investors. Before investing, an investor should consider carefully a Fund's investment objective, risks, charges and expenses.

Statements in this press release that are not historical facts are forward-looking statements as defined by the U.S. securities laws. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to uncertainties and other factors which are, in some cases, beyond the Fund's control and could cause actual results to differ materially from those set forth in the forward-looking statements.

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