eUnits 2 Year Trust II to sell units tied to S&P 500 Composite

By Toni Weeks

San Diego, April 25 - eUnits 2 Year U.S. Market Participation Trust II: Upside to Cap / Buffered Downside plans to sell units of beneficial interest in its initial public offering, according to an N-2 filing with the Securities and Exchange Commission.

The trust seeks to provide returns based on the S&P 500 Composite Stock Price Index that are equal to the percentage change in the price of the index, up to a maximum return of 15% to 20%. Investors will receive the initial net asset value of the units if the index declines by 15% or less and will lose 1% for every 1% that the index declines beyond 15%.

The trust will invest substantially all of its initial net assets in U.S. Treasury obligations and over-the-counter private derivate contracts that will mature on or just before the termination date. The contracts will be structured so that the trust will receive cash from the counterparties if the index increases over the term of the contracts or pay cash to the counterparties if the index decreases by more than 15%.

The trust will conclude its investment activities on May 21, 2014, at which time it will distribute its net assets to unitholders.

The initial net asset value is $10.00 per unit, and the purchase price for non-fee accounts will be $10.20, which includes a 2%, or $0.20, sales load per unit. Units placed to fee accounts will be offered at $10.00 apiece. The units are subject to an annual management fee of 0.75%.

The trust has applied to list the units on NYSE Arca under the symbol "ETUB."

Eaton Vance Distributors, Inc. is the underwriter of the offering.

The trust's investment adviser is Boston-based Eaton Vance Management. The subadviser is Parametric Risk Advisors LLC.

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