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Eaton Vance Risk-Managed Diversified Equity Income Fund Announces Intention to Retain Long-term Capital Gains

^{Published on 2008-12-23 08:22:05, Last Modified on 2008-12-23 08:22:38 - Market Wire}
 

BOSTON--([ BUSINESS WIRE ])--Eaton Vance Risk-Managed Diversified Equity Income Fund (NYSE:ETJ), a diversified closed-end management investment company sponsored and managed by Eaton Vance Management, today announced that it intends to retain a portion of the Fund's net realized long-term capital gains for the year ending December 31, 2008 and to pay federal income tax on the gains. Shareholders of record on December 31, 2008 will each be allocated their proportionate share of the Fund's retained gains and will receive a 2008 federal income tax credit or refund for the amount of tax paid on their behalf by the Fund. In the first quarter of 2009, shareholders will receive an IRS Form 2439 setting forth the amount of the Fund's retained gains attributable to them and the federal income tax credit or refund to which they are entitled.

Retaining net realized long-term capital gains is a management tool available to regulated investment companies that allows electing funds to avoid the asset liquidations that would otherwise be required to meet their annual distribution requirements for federal income tax purposes. Given the large amounts of long-term capital gains realized by the Fund in 2008 on its hedging strategies and in consideration of current market conditions, Eaton Vance believes it is in the best interests of Fund shareholders for the Fund to retain a portion of its net realized long-term capital gains this year. The amount of the Fund's regular quarterly distributions to shareholders is not impacted by the decision to retain a portion of net realized gains.

As of December 29, 2008, the Fund's net asset value per share will be reduced by the amount of federal income taxes to be paid by the Fund on the year's net realized long-term capital gains. Current per share estimates are as follows:

Please visit [ www.eatonvance.com/closed_end/index ] for additional information.