BOSTON, Jan. 28, 2014 /PRNewswire/ -- Eaton Vance
Corp. (NYSE: EV) announced that eUnits™ 2 Year U.S.
Market Participation Trust: Upside to Cap / Buffered Downside (the
"Trust") today made a liquidating cash distribution to the holders
of the Trust's units ("Units") of $11.7914 per Unit. Consistent with its investment
objective, the Trust provided a total return of 17.91% on the
initial net asset value of the Units over the two-year term of the
Trust.
At its initial public offering on January
27, 2012, the Trust issued 2.62 million Units at
$10 per Unit, raising $26.2 million. Consistent with the terms of
the Trust, the Trust terminated its operations and closed its books
at the close of business on January 24,
2014 (the "Termination Date"). The Termination Date is the
record date for determining the Unit holders entitled to receive
liquidating distributions. Trading of the Units on NYSE MKT, under
the symbol ETUA, was suspended at 4:00 p.m.
ET on January 24,
2014.
eUnits™ are a type of
exchange-traded structured investment developed by Eaton Vance that
seek to enable holders to participate in the returns of a specified
market benchmark over a defined term, typically up to a cap, while
reducing exposure to loss in the event of a decline in the
benchmark. Market exposures are provided by combining third-party
dealer contracts with a portfolio of term-matched U.S. Treasuries.
Different from structured notes, eUnits™ are
registered under the Investment Company Act of 1940 as closed-end
investment companies and avoid a concentrated credit exposure to a
single corporate issuer. Unlike traditional closed-end funds,
eUnits™ are fixed-term instruments with substantially
fixed holdings, and seek to mitigate secondary market trading
discounts by facilitating arbitrage versus a disclosed hedge
portfolio using a methodology that is the subject of a pending U.S.
patent.
The Trust's objective was to provide purchasers of Units in the
initial public offering the opportunity to earn returns over the
investment life of the Trust based on the price performance of the
S&P 500 Composite Stock Price Index® (the "Index"). If the
Index appreciated over the investment life of the Trust, the Trust
sought to provide a return on the initial net asset value of the
Units equal to the percentage change in the price of the Index, up
to a maximum return of 17.85 percent. If the Index declined over
the investment life of the Trust by 15 percent or less, the Trust
sought to return the initial net asset value of the Units. If the
Index had declined by more than 15 percent, the Trust sought to
outperform the Index price change by 15 percent of initial Index
value. Because the actual appreciation of the Index over the
term of the Trust was more than the return cap, the Trust's target
return was 17.85 percent.
"eUnits™ exemplify Eaton Vance's commitment to
offering innovative fund structures that respond to investor
needs," said Thomas E. Faust Jr.,
chairman and chief executive officer of Eaton Vance Corp. "We
are pleased that the initial eUnits™ offering was
successful in achieving its investment objective."
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 $283.3 billion in assets as of December 31, 2013, offering individuals and
institutions a broad array of investment strategies and wealth
management solutions. The Company's long record of providing
exemplary service, timely innovation 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 Corp.