BOSTON, Dec. 21, 2020 /PRNewswire/ -- Eaton Vance
High Income 2021 Target Term Trust (NYSE: EHT) (Trust) announced
today that, effective January 4,
2021, the Trust will enter into wind-up in anticipation of
its termination on July 1, 2021. The
Trust is a "target term" fund that, on the Trust's designated
termination date, will cease investment operations, liquidate its
portfolio and distribute the net proceeds to shareholders, unless
the term is extended for a period of up to six months by a vote of
the Trust's Board of Trustees.
The Trust has as its investment objective to provide a high
level of current income and to return the Trust's original
$9.85 net asset value per share to
shareholders at termination. The Trust's objective is not a
guarantee, and there can be no assurance it will be attained. Under
normal circumstances, the Trust invests at least 80% of its managed
assets in corporate debt obligations, including obligations that,
at the time of investment, are rated below investment grade (i.e.,
those rated BB+/Ba1 or lower) or are unrated but deemed equivalent
by the Trust's investment adviser, Eaton Vance Management.
During the wind-up period, the Trust may deviate from its normal
investment policies, and may invest up to 100% of its managed
assets in high quality, short-term securities. High quality,
short-term securities include securities rated investment grade
(BBB-/Baa3 or higher, or unrated but deemed equivalent by the
Trust's investment adviser) with a final or remaining maturity of
397 days or less. From January 4,
2021 through the remainder of its term, the Trust will
invest at least 80% of its managed assets in (i) corporate debt
obligations, including high yield obligations; and (ii) short-term
investment grade securities that have a final or remaining maturity
of 397 days or less, so long as the maturity of any security in the
Trust is no later than January 1,
2022. These expanded investment parameters are intended to
provide the Trust additional flexibility to reinvest the proceeds
of matured or called portfolio securities, or securities sold by
the Trust's portfolio managers, in higher quality, short-term
securities. As the Trust gets closer to its termination date, the
Trust will begin to transition its remaining below investment grade
portfolio holdings to high quality, short-term securities to
enhance the Trust's ability to efficiently liquidate its portfolio
at termination. In August 2020, the
Trust retired its leverage in anticipation of termination. In
connection with the investment policy changes, effective
January 4, 2021, the Trust's name
will change to Eaton Vance 2021 Target Term Trust. The Trust
will continue to be listed on the New York Stock Exchange under the
ticker symbol "EHT".
As described in the Trust's prospectus, as the Trust approaches
its termination date, the elimination of financial leverage, the
general shortening of the time-to-maturity of the Trust's portfolio
securities and the repositioning of the Trust's portfolio into
higher-quality securities will tend to reduce interest rate risk
and credit risk and improve portfolio liquidity, but also tend to
reduce amounts of income available to pay as dividends to common
shareholders.
The Trust's investment adviser is Eaton Vance Management, a
subsidiary of Eaton Vance Corp. (NYSE: EV). Eaton Vance provides
advanced investment strategies and wealth 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 October 31,
2020, Eaton Vance had consolidated assets under management
of $515.7 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 Trust shares. Shares of the Trust are available for
purchase and sale only through secondary market trading on an
exchange or alternative trading venue.
Shares of closed-end funds often trade at a discount from their
net asset value. The market price of Trust shares may vary from net
asset value based on factors affecting the supply and demand for
shares, such as Trust distribution rates relative to similar
investments, investors' expectations for future distribution
changes, the clarity of the Trust's investment strategy and future
return expectations, and investors' confidence in the underlying
markets in which the Trust invests. Trust shares are subject to
investment risk, including possible loss of principal invested. The
Trust is not a complete investment program and investors may lose
money investing in the Trust. An investment in the Trust may not be
appropriate for all investors. Before investing, an investor should
consider carefully the Trust'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 Trust's control and could cause actual results to differ
materially from those set forth in the forward-looking
statements.
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SOURCE Eaton Vance Management