Fund Description: Eaton Vance Short Duration Diversified Income Fund is a diversified, closed-end management investment company. INVESTMENT OBJECTIVE: The Fund's investment objective is to provide a high level of current income. The Fund may, as a secondary objective, also seek capital appreciation to the extent consistent with its primary goal of high current income. FUND STRATEGY: Under normal market conditions, the Fund will maintain a duration of no more than three years (including the effect of anticipated leverage). Initially, the Fund is expected to have a duration of approximately 1.5 to 2 years (including the effect of anticipated leverage). Duration is a measure of the price volatility of a debt instrument as a result of changes in market rates of interest, based on the weighted average timing of the instrument's expected fixed interest and principal payments. The Adviser's staff monitors the credit quality and price of securities held by the Fund, as well as other securities that are available to the Fund. Under normal market conditions, the Fund expects to maintain a weighted average portfolio credit quality of investment grade (which is at least BBB- as determined by S&P, or Fitch Ratings Inc., or Baa3 as determined by Moody's Investors Service, Inc. or, if unrated, determined to be of comparable quality by the Fund's investment adviser. FUND MANAGEMENT: The Fund's investment adviser is Eaton Vance Management.