BOSTON, Aug. 7, 2012 /PRNewswire/ -- Eaton Vance Tax-Advantaged Dividend Income Fund (NYSE: EVT), Eaton Vance Tax-Advantaged Global Dividend Income Fund (NYSE: ETG) and Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund (NYSE: ETO), each a diversified closed-end investment company (collectively, the "Funds" and each a "Fund"), are announcing a change to their investment policies. Each Fund currently invests at least 80% of its total assets in dividend-paying common and preferred stocks that the investment adviser believes at the time of investment are eligible to pay dividends that qualify for federal income taxation at rates applicable to long-term capital gains. With respect to its preferred stock investments, each Fund expects to invest primarily in preferred stocks of investment grade quality (which is at least BBB- as determined by Standard & Poor's Ratings Group or Fitch Ratings or Baa3 as determined by Moody's Investors Service, Inc. or, if unrated, determined to be of comparable quality by the investment adviser). Not more than 10% of a Fund's total assets may be invested in securities rated below investment grade.
Under the revised policies, each Fund will continue to invest at least 80% of its total assets in common and preferred stocks as described above; however, effective today, each Fund has eliminated the requirement that it invest primarily in preferred stocks of investment grade quality. In addition, each Fund is authorized to invest up to 30% of its total assets in securities rated below investment grade.
Investments in lower rated obligations and comparable unrated securities ("junk bonds") have speculative characteristics because of the credit risk associated with their issuers. Changes in economic conditions or other circumstances typically have a greater effect on the ability of issuers of lower rated investments to make principal and interest payments than they do on issuers of higher rated investments. An economic downturn generally leads to a higher non-payment rate, and a lower rated investment may lose significant value before a default occurs. Lower rated investments generally are subject to greater price volatility and illiquidity than higher rated investments.