Eaton Vance Short Duration Diversified Income Fund and Eaton Vance Limited Duration Income Fund Announce Changes to Principal Investment Strategies

BOSTON--(BUSINESS WIRE)--Eaton Vance Short Duration Diversified Income Fund (NYSE: EVG) and Eaton Vance Limited Duration Income Fund (NYSE American: EVV) (each a “Fund” and, together, the “Funds”) announced that, effective October 17, 2025, each Fund will revise its principal investment strategies to: (i) remove the Fund's 25% minimum investment requirement in each of the Fund's stated investment categories; (ii) remove the Fund's current weighted average credit quality restriction; and, for EV.

Business Wire • Oct 17, 2025

EVV: High Use Of Leverage Limits The Appeal

EVV offers an attractive 8.5% yield and trades at a slight discount to NAV, but distribution coverage is inconsistent. Heavy leverage offsets the low-duration strategy, making EVV sensitive to interest rates and potentially amplifying losses in a high-rate environment. A significant portion of assets are below investment grade, increasing default risk if rates stay elevated or economic conditions worsen.

Seeking Alpha • Sep 10, 2025

EVV: Multi-Sector Fixed-Income Fund Providing Monthly Distributions

EVV offers diversified exposure to both investment-grade and below-investment-grade bonds, with a focus on limited duration and high current income. The fund's leverage has help to drive benchmark-beating returns in favorable markets, but also increases volatility and risk for investors. The distribution yield is high and based on a managed policy that is reset each month.

Seeking Alpha • Jun 23, 2025

EVV: This Bond Fund Has More Risks Than One Might Think

The Eaton Vance Limited Duration Income Fund offers an 8.83% yield, higher than most investment-grade bonds, but its heavy reliance on junk bonds poses recession risks. The fund's leverage ratio of 40.40% is higher than its peers, increasing risk, especially if the U.S. enters a recession. The fund appears to be struggling to cover its distributions, despite the recent cuts.

Seeking Alpha • Mar 30, 2025

CEF Weekly Review: Explaining Preferred CEFs Double-Digit Gains

We review the CEF market valuation and performance through the first week of February and highlight recent market action. CEFs had a strong week, with most sectors in the green, driven by EM Equity and Muni sectors, and year-to-date gains in both NAVs and discounts. We take a look at why preferred CEFs have sharply outperformed their ETF counterparts last year.

Seeking Alpha • Feb 15, 2025

EVV: Attractive Distribution Rate, But Valuation Isn't Appealing

EVV's discount has narrowed, driving attractive total returns, but it's less appealing now compared to earlier in the year. The fund's leverage is quite high, which can drive strong returns during the good times but can also work against the fund during the bad. EVV's managed 9% distribution policy adjusts monthly based on NAV, providing some predictability as NAV can be watched to see what direction the distribution would head in.

Seeking Alpha • Dec 17, 2024

EVV: This 9%-Yielding CEF Is Smartly Reducing Its Interest-Rate Risk

The Eaton Vance Limited Duration Income Fund offers a high level of current income with a yield of 9.57%. The fund invests in low-duration assets, which have lower interest rate risk and are more attractive in the current yield curve environment. The fund has outperformed major bond indices and delivered a 2.40% gain year-to-date, but its total return of 5.77% since January 2024 is not as attractive as some equity funds.

Seeking Alpha • Jun 3, 2024

Building A 10% Income Portfolio Today

Six years ago, I wrote my first article on investing, in which I outlined the criteria that had guided me when constructing my first income portfolio. I have tried to retrace here the steps leading up to that article and then subsequent developments in creating my current portfolio. Today, I favor CEFs and ETFs that, in addition to providing regular income, show a positive NAV performance since inception, thereby demonstrating their ability to also generate value over time.

Seeking Alpha • May 30, 2024

How To Tap Steady 9%+ Payouts As The Bond Market Booms

It's no secret that corporate bonds are booming. But what might come as a surprise to some folks is that we're not too late to get in.

Forbes • Apr 6, 2024

EVV: Near-Term Share Price Declines Likely, But Remains A Hold

Eaton Vance Limited Duration Income Fund offers a high level of income with a current yield of 10.04%, which is higher than many other fixed-income funds. EVV's recent performance has been respectable, with shares up 10.60% since late October, outperforming the Bloomberg U.S. Aggregate Bond Index. The fund's portfolio includes a mix of bonds, debt securities, and leveraged loans, providing some protection against interest rate changes.

Seeking Alpha • Jan 18, 2024