BOSTON, Oct. 28, 2015 /PRNewswire/ -- Eaton Vance Tax-Managed Diversified Equity Income Fund (NYSE: ETY) and Eaton Vance Tax-Managed Global Diversified Equity Income Fund (NYSE: EXG) ("Global Fund"), each a diversified closed-end investment company, (each a "Fund" and together, the "Funds") have modified their policies relating to use of derivatives and Global Fund has modified its policy relating to investing in securities of non-U.S. issuers.

Each Fund invests in a diversified portfolio of common stocks and writes (sells) index call options with respect to a portion of the value of its common stock portfolio to generate current cash flow from the options premium received. In seeking its primary objective of current income and gains, each Fund may engage in dividend capture trading. In a dividend capture trade, a Fund buys a stock prior to its ex-dividend date and sells the stock on or after the ex-dividend date. Dividend capture trading can result in a Fund having more or less exposure to individual sectors and/or markets than would otherwise apply. Each Fund has modified its investment policies to permit broader use of derivatives, principally seeking to manage exposure to certain sectors and/or markets in connection with its use of dividend capture trading. Each Fund expects primarily to buy and sell equity index futures contracts for this purpose, but may also engage in other types of derivatives to manage such exposures. Each Fund may also use derivatives for other purposes, such as hedging, to enhance return, or as a substitute for the purchase or sale of securities or currencies. Other permitted derivatives include futures contracts on securities, non-equity indices and currencies, options on futures contracts, equity and interest rate swaps, covered short sales, forward sales of stocks, and forward currency exchange contracts. Each Fund may invest in derivatives without limitation and use of derivatives may be extensive. Previously each Fund's use of derivatives (other than index call options and options on index futures contracts) was limited to 20% of its total assets, no more than 10% of total assets could be so invested for non-hedging purposes.

Under normal market conditions, Global Fund currently invests at least 40% of its total assets in securities of non-U.S. issuers (unless the adviser deems market conditions and/or company valuations less favorable to non-U.S. companies, in which case Global Fund will invest at least 30% of its total assets in securities of non-U.S. companies). Global Fund also normally invests in issuers located in at least three countries including the United States. Pursuant to the revised policy, under normal market conditions, Global Fund will invest (i) at least 30% of its total assets in securities of non-U.S. issuers, including issuers located in emerging market countries and (ii) in issuers located in at least five different countries (including the United States). Issuers will be considered to be located outside the United States if domiciled in and tied economically to one or more non-U.S. countries, irrespective of whether their securities trade in the U.S.

The Funds are managed by Eaton Vance Management, a subsidiary of Eaton Vance Corp. (NYSE: EV). Based in Boston, Eaton Vance is one of the oldest investment management firms in the United States, with a history dating back to 1924. Eaton Vance and its affiliates managed $298.9 billion in assets as of September 30, 2015, offering individuals and institutions a broad array of investment strategies and wealth management solutions. For more information about Eaton Vance, visit www.eatonvance.com.

Fund performance is sensitive to stock market volatility. Changes in the dividend policies of companies could make it difficult to provide a predictable level of income. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. Dividend capture strategies may result in higher portfolio turnover, increased trading costs and potential for capital loss or gains. When interest rates rise, the value of preferred securities will generally decline. Derivative instruments can be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the net asset value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty.

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. Common shares of the Fund are only available for purchase and sale at current market price on a stock exchange. There is no assurance that the Fund will achieve its investment objective. Shares of closed-end funds often trade at a discount from their net asset value. The Fund is not a complete investment program and you may lose money investing in the Fund. An investment in the Fund may not be appropriate for all investors. Investors should review and consider carefully the Fund's investment objective, risks, charges and expenses.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/eaton-vance-tax-managed-equity-income-funds-announce-changes-in-investment-policies-300168198.html

SOURCE Eaton Vance Management