eUNITS Trust increases maximum size of S&P 500 Composite-linked units

By Angela McDaniels

Tacoma, Wash., May 24 - eUNITS 2 Year U.S. Market Participation Trust II: Upside to Cap / Buffered Downside increased the maximum number of units of beneficial interest it plans to sell in its initial public offering to 2,450,981 from 5,000, according to an N-2 filing with the Securities and Exchange Commission.

At the proposed maximum offering price of $10.20 per unit, the total price would be $25 million.

The units are linked to the performance of the S&P 500 Composite Stock Price index.

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

The trust seeks to provide a return equal to any percentage increase in the index, subject to a maximum return of 15% to 20%. It seeks to return only the initial net asset value of the units if the index declines by 15% or less and a loss of 1% for every 1% that the index declines beyond 15%.

The trust will invest substantially all of its initial net assets in Treasuries 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 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.

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

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