November 9, 2017
We bought Eaton Vance High Income Trust back in June 2017: EHT
It pays just under 6% and is going ex-dividend on November 10. So this is an opportunity to buy at a price of $10.10……….after it pulls back on Friday. Below is a link to our post and some additional info. We are going to be ADDING to our Core Portfolio position.
EHT holds approx. 112 corporate bonds all maturing in 2021 at which time the fund will liquidate the portfolio and all monies are returned to the investors. This is DIFFERENT than the typical bond fund which goes on ‘forever’. So in effect, EHT acts similar to the numerous individual corporate bonds that we hold in the Core Portfolio, but giving you the diversification of numerous bonds.
FUND DESCRIPTION: Eaton Vance High Income 2021 Target Term Trust is an exchange-traded closed-end fund or a closed-end ETF which is officially described as a diversified, closed-end management investment company.
INVESTMENT OBJECTIVE: The Eaton Vance High Income 2021 Target Term Trust seeks high current income.
STRATEGY: The Trust seeks to achieve its investment objectives by investing, under normal circumstances, at least 80% of its Managed Assets in corporate debt obligations and separately at least 80% of its Managed Assets in corporate debt obligations that, at the time of investment, are rated below investment grade (BB+ or lower) or are unrated but deemed equivalent, commonly referred to as junk bonds. To limit the Trust’s exposure to interest rate and reinvestment risk, the longest maturity of any Trust holding will be not more than six months beyond the Termination Date. The Trust intends to utilize a limited duration strategy, which declines over time. Such strategy seeks to be less sensitive to high yield interest rate risk than longer duration funds. The Adviser monitors the credit quality of instruments held by the Trust and other instruments available to the Trust. Although the Adviser considers ratings assigned by the rating services when making investment decisions, it performs its own credit and investment analysis utilizing various methodologies including both bottom up and top down investment analysis and consideration of macroeconomic and technical factors. The average maturity of the Trust’s holdings is generally expected to shorten as the Trust approaches its Termination Date, which may reduce interest rate risk over time but which may also reduce amounts otherwise available for distribution to Common Shareholders.
FUND MANAGEMENT: Eaton Vance Management serves as the investment adviser to the Fund.
The Edward Klein book All Out War (that we talked about last week) is out and we just picked up our copy from the local Library. We are taxed so heavily by the library that we are determined to get our money’s worth lol—-have you looked at your tax bill to see how much money flows to the library????
So far the book is just a rehash of what we already know, so it is somewhat of a disappointment.
According to a POLITICO/Morning Consult poll conducted on the eve of the first anniversary of Trump’s historic election, 82 percent of those who say they supported Trump last year would vote for him again if they had to do it over. That’s slightly more than those who say they would vote for Democrat Hillary Clinton again — 78 percent — if they had the chance.