Results of Special Shareholder Meeting of Eaton Vance Short Duration Diversified Income Fund

BOSTON, May 7, 2021 /PRNewswire/ -- Eaton Vance Short Duration Diversified Income Fund EVG (the "Fund") held a special meeting of shareholders earlier today (the "Special Meeting").  At the Special Meeting, Fund shareholders approved a new investment advisory agreement with Eaton Vance Management, the Fund's investment adviser (the "New Agreement").  The vote tabulation, as certified by the Fund's proxy tabulator, AST Fund Solutions LLC, will be published in the Fund's next report to shareholders.

Conditional Tender Offer.  As previously announced on March 9, 2021, the Board of Trustees of the Fund authorized a conditional cash tender offer for up to 25% of the Fund's outstanding common shares at a price per share equal to 99% of the Fund's net asset value ("NAV") per share as of the close of regular trading on the New York Stock Exchange on the date the tender offer expires (the "Tender Offer").  The Tender Offer is conditional on Fund shareholders' approving the New Agreement, which this condition has now been met.  The terms and conditions of the Tender Offer will be set forth in the associated Fund offering materials and additional press releases.  If the number of shares tendered in the Tender Offer exceeds 25% of the Fund's outstanding common shares, the Fund will purchase shares from tendering shareholders on a pro rata basis (disregarding fractional shares).  Accordingly, there is no assurance that the Fund will purchase all of a shareholder's tendered common shares in the Tender Offer.

Conditional Distribution Rate Increase.  The Fund also announced on March 9, 2021 that, if shareholders approved the New Agreement, it would increase its regular monthly distribution on common shares to an annual rate equal to 10% of the Fund's then-current NAV.  Because this condition has now been met, the Fund will increase its regular monthly distribution on common shares accordingly beginning in June 2021.  Fund distributions may include amounts from sources other than net investment income.  When that is estimated to be the case, shareholders will be notified on a monthly basis.  The final determination of the tax character of Fund distributions will occur after the end of each calendar year, at which time that determination will be reported to shareholders.  Fund distributions in any period may be more or less than the net return earned by the Fund on investments, and therefore should not be used as a measure of performance or confused with "yield" or "income." Distributions in excess of Fund returns will cause the Fund's net assets and NAV per share to decline.

About the Fund

Eaton Vance Corp. was acquired by Morgan Stanley on March 1, 2021.  Its Eaton Vance Management, Parametric, Atlanta Capital and Calvert investment affiliates are now part of Morgan Stanley Investment Management, the asset management division of Morgan Stanley.

Except pursuant to a tender offer, common shares of the Fund are available for purchase or sale only through secondary market trading at their current market price. Shares of closed-end funds often trade at a discount from their NAV. The market price of Fund shares may vary from NAV 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. Shares of the Fund are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. The Fund is not a complete investment program and you may lose money investing therein. An investment in the Fund may not be appropriate for all investors. Before investing, prospective investors should consider carefully the Fund's investment objective, strategies, risks, charges and expenses.

This announcement is not a recommendation, an offer to purchase or a solicitation of an offer to sell shares of the Fund.  The Fund has not commenced the Tender Offer described in this release.  The Tender Offer will be made only if the condition described above is satisfied, and only by an offer to purchase, a related letter of transmittal and other documents filed with the SEC as exhibits to a tender offer statement on Schedule TO, with all such documents available on the SEC's website at www.sec.gov.  For the Tender Offer, the Fund will also make available to shareholders without charge the offer to purchase and the letter of transmittal.  Shareholders should read these documents carefully, as they would contain important information about the Tender Offer. 

This press release is for informational purposes only and is not intended to, and does not, constitute an offer to purchase or sell shares of the Fund. Additional information about the Fund, including performance and portfolio characteristic information, is available at eatonvance.com.

Statements in this press release that are not historical facts may be 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 that may be beyond the Fund's control and could cause actual results to differ materially from those set forth in the forward-looking statements.

SOURCE Eaton Vance Management