Form 497 EATON VANCE INVESTMENT
Important Notice Regarding Change in Name and Investment Policy
The following changes are effective January 1, 2022:
1.The name of Eaton Vance Floating-Rate Municipal Income Fund is changed to Eaton Vance National Ultra-Short Municipal Income Fund.
2.The Floating-Rate 80% Policy is removed. The Floating-Rate 80% Policy requires the Fund, under normal market circumstances, to invest at least 80% of its total assets in (i) municipal floating-rate bonds or obligations and (ii) fixed-rate municipal obligations with respect to which the Fund enters into agreements to swap the fixed rate for a floating rate.
The following replaces “Principal Investment Strategies” in “Fund Summary”:
Under normal circumstances, the Fund’s average effective maturity will be less than two years. The Fund is not a money market fund and does not seek to maintain a stable net asset value.
The Fund may invest up to 20% of its net assets in other debt obligations, including (but not limited to) taxable municipal obligations, U.S. Treasury securities and obligations of the U.S. Government, its agencies or instrumentalities. The Fund may purchase or sell derivative instruments (such as residual interest bonds, futures contracts and options thereon, interest rate swaps, total return swaps and forward rate agreements) for hedging purposes, to seek total return or as a substitute for the purchase or sale of securities. There is no stated limit on the Fund’s use of derivatives. The Fund may invest 25% or more of its total assets in certain types of municipal obligations (such as general obligations, municipal leases, principal only municipal investments, revenue bonds and industrial development bonds) and in one or more states, territories and economic sectors (such as education, transportation, housing, hospitals, healthcare facilities or utilities). The Fund may invest in pooled investment vehicles and exchange-traded funds (“ETFs”), a type of pooled investment vehicle, to seek exposure to the municipal markets or municipal market sectors.
The investment adviser’s process for selecting obligations for purchase and sale emphasizes the creditworthiness of the issuer or other person obligated to repay the obligation and the relative value of the obligation in the market. In evaluating creditworthiness, the investment adviser considers ratings assigned by rating agencies and generally performs additional credit and investment analysis. The portfolio managers may also consider financially material environmental, social and governance factors in evaluating an issuer. These considerations may be taken into account alongside other factors in the investment selection process. The portfolio managers also may trade securities to minimize taxable capital gains to shareholders. The Fund expects up to 25% of its annual distributions to be subject to the federal alternative minimum tax. The Fund may not be suitable for investors subject to the federal alternative minimum tax.
3.The following replaces corresponding disclosure under “Management” under “Management and Organization”:
The investment adviser manages the investments of the Fund. Under its investment advisory agreement with the Fund, BMR is entitled to receive from the Fund compensation as set forth below:
A daily asset-based fee, computed by applying the annual asset rate applicable to that portion of the total daily net assets of the Fund in each category as indicated below:
Category | Total Daily Net Assets | Annual |
1 | up to $500 million | 0.300% |
2 | $500 million but less than $1 billion | 0.275% |
3 | $1 billion but less than $1.5 billion | 0.250% |
4 | $1.5 billion but less than $2 billion | 0.225% |
5 | $2 billion but less than $3 billion | 0.200% |
6 | $3 billion and over | 0.175% |
Prior to January 1, 2022, BMR received a monthly advisory fee equal to the aggregate of a daily asset based fee and a daily income based fee as follows.
Category | Total Daily Net Assets | Annual | Daily |
1 | up to $500 million | 0.300% | 3.00% |
2 | $500 million but less than $1 billion | 0.275% | 2.75% |
3 | $1 billion but less than $1.5 billion | 0.250% | 2.50% |
4 | $1.5 billion but less than $2 billion | 0.225% | 2.25% |
5 | $2 billion but less than $3 billion | 0.200% | 2.00% |
6 | $3 billion and over | 0.175% | 1.75% |
39807 10.27.21 |
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