The funds investment objective is to achieve after-tax total return and invests mainly in common and preferred stocks that pay dividends that qualify for the new federal tax rules. Under the new legislation, the most dividends will be taxes is at 15%, compared to the 35% ceiling rate on ordinary return, according to the firm.
"The tax rules that apply to dividend income are complicated, and many dividends do not qualify for favorable tax treatment," said James B. Hawkes, chairman, president and chief executive of Eaton Vance Corp. "For investors who pay taxes on their mutual fund distributions, it is critical that the fund's advisor seek dividends that qualify for favorable tax treatment. The Fund gives taxpaying equity income investors the assurance that their objective of after-tax returns is shared by the Fund's advisor."
Michael R. Mach and Judith A. Saryan, both vice presidents at Eaton Vance Management are the Fund's managers. Mach also manages the Eaton Vance Tax-Managed Value Fund and Eaton Vance Large-Cap Value Fund. Saryan manages the Eaton Vance Utilities Fund.
