Trustees of Eaton Vance Risk-Managed Diversified Equity Income Fund Approve Change in Investment Policies

BOSTON, Aug. 13 /PRNewswire/ -- The Trustees of Eaton Vance Risk-Managed Diversified Equity Income Fund, a diversified closed-end investment company (NYSE: ETJ) (the "Fund"), have approved a change to the Fund's investment policies effective November 1, 2010 to permit the sale of out-of-the-money index put options in combination with the purchase of index put options at a higher exercise price, a strategy known as buying "put option spreads."  Under normal market conditions, the Fund purchases index put options with respect to at least 80% of the value of its investments in common stocks to protect the Fund against loss of value in the event of a stock market decline.  By purchasing put option spreads rather than standalone put options, the Fund can lower the net cost of its market hedging activities, since the premiums received from selling index put options will offset, in part, the premiums paid to purchase the index put options.  Although less expensive than buying a standalone index put option, buying a put option spread will expose the Fund to incremental loss if the value of the index at contract expiration is below the exercise price of the put option sold.  Eaton Vance Management, the Fund's investment adviser, believes that it may be more advantageous for the Fund to purchase index put option spreads rather than standalone index put options under certain market conditions.

Eaton Vance Management is a subsidiary of Eaton Vance Corp. (NYSE: EV), one of the oldest investment management firms in the United States, with a history dating back to 1924. Eaton Vance and its affiliates managed $173.3 billion in assets as of July 31, 2010, offering individuals and institutions a broad array of investment strategies and wealth management solutions.  Eaton Vance'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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