Eaton Vance Is Done With MA Trust Fund

March 3, 2004 ( - Jacked up administrative, legal and regulatory costs are the major reasons Eaton Vance Corp is saying via con dios to the investment management of the Massachusetts Health & Education Tax-Exempt Trust.

The Boston-based investment management firm will continue to run the $32.9 million trust for at least the next 120 days, or until the fund’s board has time to find a new manager, Eaton Vance announced.   The closed-end, non-diversified management investment company seeks to earn a high level of current income exempt from regular federal income taxes and Massachusetts personal income taxes consistent with preservation of capital, according to a Dow Jones report.

The fund invests primarily in Massachusetts “investment-grade” tax-exempt obligations issued on behalf of participating not-for-profit health and education institutions.   The trust’s board of trustees indicated to the investment firm it intends to explore alternative arrangements.  

Fallout from the decision by Eaton Vance led to the resignation of the fund’s president – Thomas Fetter – who also serves as an officer of Eaton Vance.   Fetter said he would continue to serve at the trust’s helm until a new investment manager can be found.