Eaton Vance Preferred Dividend Income Trust seeks investment funding

By Susanna Moon

Chicago, March 8 - Eaton Vance Preferred Dividend Income Trust registered to sell common shares at $20 each for investing in dividend-paying preferred stocks and other preferred securities, according to an N-2 filing with the Securities and Exchange Commission.

At least 80% of the fund's total assets will be invested in preferreds, including convertible preferred securities, of U.S. and non-U.S. issuers, the filing noted.

The fund expects to invest in preferreds that are investment-grade but may also invest in lower-rated preferreds.

Investments with less than B ratings will be no more than 5% of total fund assets. The preferreds will be rated at the time of purchase or, if unrated, determined by its investment adviser to be of comparable credit quality.

The fund will invest at least a quarter of total assets in securities of issuers in the banking industry and may also invest substantially in the broader financial services sector.

The fund will allocate its investments among various other industry sectors and among issuers in sectors based on the evaluation of market and economic conditions.

In addition to preferreds, the fund may also invest in debt obligations, including those rated below investment grade or deemed of comparable quality by the adviser, and common stocks or other equity securities that are not considered preferred securities.

Shortly after the completion of the share offering, the fund said it expects to borrow money for the purpose of financial leverage, initially up to about 30% of its total assets.

The initial registration is for 50,000 shares.

The fund's investment adviser is Boston-based Eaton Vance Management.

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