Trustees of Eaton Vance Limited Duration Income Fund Approve Change in Investment Policies

BOSTON, March 17, 2011 /PRNewswire/ -- The Trustees of Eaton Vance Limited Duration Income Fund, a diversified closed-end investment company (NYSE Amex: EVV) (the "Fund"), have approved certain changes to the Fund's investment policies that they believe are in the best interests of shareholders.  The Fund's current policy provides that, under normal market conditions, the Fund invests at least 25% of its total assets in each of: (1) U.S. Government securities, which may include U.S. Treasuries and mortgage-backed securities ("MBS") or other securities issued, backed or otherwise backed by the U.S. Government or its agencies or instrumentalities, and (2) investments rated below investment grade, which may include senior loans and high-yield debt securities.  The Fund's revised investment policy expands the first category above to include other investments rated investment grade, providing the management team with increased flexibility in managing the higher quality securities in its portfolio.  The Fund's revised policy is as follows: under normal market conditions the Fund will invest at least 25% of its total assets in each of: (1) investments rated investment grade (defined as securities rated BBB- or higher by Standard & Poor's Ratings Group or Fitch Ratings, Baa3 or higher as determined by Moody's Investors Service, Inc. or, if not rated, determined to be of comparable credit quality by the Fund's management team), including, but not limited to, U.S. Government securities (which include U.S. Treasuries, MBS, and other securities issued, backed, or otherwise guaranteed by the U.S. Government, or its agencies or instrumentalities), commercial mortgage-backed securities and corporate debt obligations rated investment grade; and (2) investments rated below investment grade, including senior loans and high-yield debt securities.  The Fund's assets may also include, among other investments, unsecured loans and money market instruments.  The Fund's policy to maintain an average credit quality of investment grade under normal market conditions remains in place.  

The Trustees also approved a change to the Fund's duration policy to eliminate the requirement that the Fund maintain a minimum portfolio duration of at least two years.  Under the revised duration policy, the Fund will maintain a duration of no more than five years (including the effect of anticipated leverage).  This change will take effect on May 17, 2011.  In addition, the Trustees authorized the Fund to enter into positions in swaptions, which are instruments that give the owner the right (but not the obligation) to enter into or cancel a swap agreement at a future date.  

Eaton Vance is one of the oldest investment management firms in the United States, with a history dating to 1924. Eaton Vance and its affiliates managed $191.7 billion in assets as of January 31, 2011, offering individuals and institutions a broad array of investment strategies and wealth management solutions. The Company's long record of providing exemplary service and attractive returns through a variety of market conditions has made Eaton Vance the investment manager of choice for many of today's most discerning investors. For more information about Eaton Vance, visit www.eatonvance.com.

SOURCE Eaton Vance Management

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