SEC Form 424B3 filed by Eaton Vance Enhance Equity Income Fund II
$EOS
Trusts Except Educational Religious and Charitable
Finance
Filed pursuant to Rule 424(b)(3)
File No. 333-264149
EATON VANCE ENHANCED EQUITY INCOME FUND II
Supplement to Prospectus dated April 5, 2022
The following replaces the Financial Highlights contained in the Prospectus:
| Year Ended December 31, | |||||
| 2023 | 2022 | 2021 | 2020 | 2019 | |
| Net asset value – Beginning of year | $15.750 | $23.720 | $21.200 | $17.530 | $14.820 |
| Income (Loss) From Operations | |||||
| Net investment loss(1) | $(0.049) | $(0.020) | $(0.082) | $(0.063) | $(0.026) |
| Net realized and unrealized gain (loss) | 5.389 | (6.352) | 3.971 | 4.819 | 4.015 |
| Total income (loss) from operations | $5.340 | $(6.372) | $3.889 | $4.756 | $3.989 |
| Less Distributions | |||||
| From net realized gain | $(1.272) | $(1.062) | $(1.284) | $(0.037) | $(1.284)(2) |
| Tax return of capital | (0.110) | (0.541) | (0.094) | (1.050) | — |
| Total distributions | $(1.382) | $(1.603) | $(1.378) | $(1.087) | $(1.284) |
| Premium from common shares sold through shelf offering(1) | $0.002 | $0.005 | $0.009 | $0.001 | $0.005 |
| Net asset value – End of year | $19.710 | $15.750 | $23.720 | $21.200 | $17.530 |
| Market value – End of year | $18.720 | $16.550 | $24.590 | $21.690 | $17.830 |
| Total Investment Return on Net Asset Value(3) | 35.54% | (27.40)% | 18.82% | 28.55% | 27.71% |
| Total Investment Return on Market Value(3) | 22.51% | (26.42)% | 20.40% | 29.31% | 31.22% |
| Ratios/Supplemental Data | |||||
| Net assets, end of year (000’s omitted) | $1,031,206 | $820,142 | $1,212,024 | $1,055,567 | $859,315 |
| Ratios (as a percentage of average daily net assets): | |||||
| Expenses | 1.09%(4) | 1.09%(4) | 1.08% | 1.09% | 1.09% |
| Net investment loss | (0.27)% | (0.11)% | (0.36)% | (0.35)% | (0.16)% |
| Portfolio Turnover | 27% | 15% | 18% | 38% | 40% |
(See related footnotes.)
| Financial Highlights (continued) | |||||
| Year Ended December 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | |
| Net asset value – Beginning of year | $15.770 | $13.660 | $14.410 | $14.540 | $14.170 |
| Income (Loss) From Operations | |||||
| Net investment income (loss)(1) | $(0.027) | $(0.023) | $0.025 | $0.129 | $0.024 |
| Net realized and unrealized gain | 0.127 | 3.183 | 0.275 | 0.791 | 1.396 |
| Total income from operations | $0.100 | $3.160 | $0.300 | $0.920 | $1.420 |
| Less Distributions | |||||
| From net investment income | $— | $— | $(0.054) | $(0.128) | $(0.205) |
| From net realized gain | (1.050) | (0.423) | (0.126) | (0.551) | (0.845) |
| Tax return of capital | — | (0.627) | (0.870) | (0.371) | — |
| Total distributions | $(1.050) | $(1.050) | $(1.050) | $(1.050) | $(1.050) |
| Net asset value – End of year | $14.820 | $15.770 | $13.660 | $14.410 | $14.540 |
| Market value – End of year | $14.670 | $15.220 | $12.800 | $13.640 | $13.830 |
| Total Investment Return on Net Asset Value(3) | 0.21% | 24.04%(5) | 2.72% | 6.87% | 10.98% |
| Total Investment Return on Market Value(3) | 2.78% | 27.76% | 1.68% | 6.43% | 15.07% |
| Ratios/Supplemental Data | |||||
| Net assets, end of year (000’s omitted) | $707,577 | $751,565 | $651,080 | $686,627 | $693,110 |
| Ratios (as a percentage of average daily net assets): | |||||
| Expenses(6) | 1.10% | 1.10% | 1.11% | 1.10% | 1.11% |
| Net investment income (loss) | (0.17)% | (0.15)% | 0.18% | 0.88% | 0.17% |
| Portfolio Turnover | 44% | 48% | 58% | 52% | 77% |
| (1) | Computed using average shares outstanding. |
| (2) | The tax character of a portion of the distribution ($0.069 per share) was based on management’s estimate and was subsequently determined to be $0.063 per share of tax return of capital and $0.006 per share from net realized gain. |
| (3) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. |
| (4) | Includes a reduction by the investment adviser of a portion of its adviser fee due to the Fund’s investment in the Liquidity Fund (equal to less than 0.005% of average daily net assets for the years ended December 31, 2023 and 2022). |
| (5) | During the year ended December 31, 2017, the Fund received a payment from an affiliate as reimbursement for certain losses. Excluding this payment, total return at net asset value would have been 23.72%. |
| (6) | Excludes the effect of custody fee credits, if any, of less than 0.005%. Effective September 1, 2015, custody fee credits, which were earned on cash deposit balances, were discontinued by the custodian. |
March 27, 2024