Eaton Vance Short Duration Diversified Income Fund

Two International Place

Boston, Massachusetts 02110

March 25, 2021

Dear Shareholder:

On behalf of the Board of Trustees (the "Board") of Eaton Vance Short Duration Diversified Income Fund (the "Fund"), I cordially invite you to attend the special meeting of shareholders scheduled to be held on May 7, 2021 at 11:30 a.m. Eastern Time (the "Meeting"). Due to the COVID-19 pandemic, the Meeting will take place in a virtual-only format using remote communication. The Meeting is being held to approve a matter important to your Fund relating to Morgan Stanley's recently completed acquisition of Eaton Vance Corp. ("EVC").

On March 1, 2021, EVC, the parent company of the Fund's investment adviser, Eaton Vance Management ("Eaton Vance"), was acquired by Morgan Stanley, a leading global financial services firm that provides a wide range of investment banking, securities, wealth management and investment management services (the "Transaction"). In connection with the Transaction, we are asking Fund shareholders to approve a new investment advisory agreement in order to maintain the continuity of the Fund's operations. The Board has unanimously approved this new agreement.

It is important to note that the Board has approved a tender offer and distribution rate increase that are conditional on shareholder approval of the new agreement. As announced on March 9, 2021, the Board has authorized a conditional cash tender offer pursuant to which the Fund will purchase up to 25 percent of the Fund's outstanding common shares at a price per share equal to 99 percent of the Fund's net asset value per share as of the close of regular trading on the New York Stock Exchange on the date the tender offer expires. If the new agreement is approved, the Fund will also increase its regular monthly shareholder distribution to an annual rate equal to 10 percent of the Fund's net asset value per share as of the date of shareholder approval, an increase of approximately 45 percent over the Fund's current monthly distribution rate. Please see the Proxy Statement for more information.

As more fully described in the enclosed Proxy Statement, the purpose of the Meeting is to seek your vote on the approval of a new investment advisory agreement. The Board carefully considered this proposal and, as described more fully in the enclosed Proxy Statement, unanimously recommends that shareholders vote FOR the proposal.

Shareholders were previously asked to approve a new investment advisory agreement with Eaton Vance at a special meeting of shareholders held on January 7, 2021. The proposal was not approved at the January meeting. Eaton Vance continues to manage the Fund under an interim investment advisory agreement that was approved by the Board. The interim agreement took effect upon the closing of the Transaction and may continue for a term of up to 150 days.

We hope that you will be able to attend the Meeting. Whether or not you plan to attend, and regardless of the number of shares you own, it is important that your shares be represented. We urge you to mark, sign, date and mail the enclosed proxy card in the postage-paid envelope provided or to record your voting instructions by telephone or via the internet as soon as possible to ensure that your shares are represented at the Meeting.

Your vote is important. We appreciate your consideration of this important matter. If you have questions about the proposal, please call our proxy information line at (877) 536-1562 or contact your financial intermediary.

Sincerely yours,

Thomas E. Faust Jr

Thomas E. Faust Jr.

President and Chief Executive Officer Eaton Vance Management

*******

YOUR VOTE IS IMPORTANT.

PLEASE RETURN YOUR PROXY CARD PROMPTLY.

It is important that your shares be represented at the Meeting. Whether or not you plan to attend the Meeting, you are requested to complete, sign and return the enclosed proxy card as soon as possible. You may withdraw your proxy if you attend the Meeting and desire to vote at the Meeting.

Table of Contents

Notice of Special Meeting of Shareholders

Proxy Statement

General Information Questions and Answers The Proposal

Further Information About Voting and the Special Meeting Appendix A - Form of New Investment Advisory Agreement Appendix B - Investment Advisory Agreement: Date and Approvals Appendix C - Board Considerations

Appendix D - Other Similar Funds Advised by Eaton Vance Appendix E - Fund Trustees and Officers

Appendix F - 5% Ownership

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A-1

B-1

C-1

D-1

E-1

F-1

NOTICE OF SPECIAL MEETING OF SHAREHOLDERS

To be held on May 7, 2021

EATON VANCE SHORT DURATION DIVERSIFIED INCOME FUND (EVG)

(the "Fund")

IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE MEETING OF THE FUND SCHEDULED TO BE HELD ON May 7, 2021: The notice of special meeting of shareholders, Proxy Statement, and the form of proxy card are available athttps://funds.eatonvance.com/closed-end-fund-and-term-trust-documents.php.

To the shareholders of the Fund:

The special meeting of shareholders of your Fund will be held on May 7, 2021 at 11:30 a.m., Eastern Time, by means of remote communication in a virtual-only format (the "Meeting"), to consider the following proposal (the "Proposal").

Proposal 1:Approval of a new investment advisory agreement for the Fund with Eaton Vance Management ("Eaton Vance") to continue to serve as the Fund's investment adviser

Holders of record of shares of the Fund at the close of business on March 19, 2021 who have voting power with respect to such shares are entitled to vote at the Meeting and at any adjournments or postponements thereof.

Due to the public health impact of the coronavirus pandemic (COVID-19), travel guidelines in Massachusetts and surrounding areas, and to support the health and well-being of our shareholders, the Meeting will be held in a virtual-only format via a web-based portal. To participate in and/or vote at the Meeting, shareholders of the Fund must submit the necessary credentials and enter the control number found on their proxy card or provided to them by AST Fund Solutions, LLC ("AST") as described further below. Shareholders may vote during the Meeting by following the instructions available on the Meeting website during the Meeting. Shareholders will not be able to attend the Meeting in person.

If, as of March 19, 2021, you were a holder of record of Fund shares (i.e., you held Fund shares in your own name directly with the Fund) and wish to participate in and vote at the Meeting, you should email your full name and address to AST atattendameeting@astfinancial.com. You will then be provided with credentials to participate in the Meeting. You will be able to vote by entering the control number found on the proxy card you previously received. All requests to participate in and/or vote at the Meeting must be received by AST no later than 3:00 p.m. Eastern Time on May 6, 2021.

If, as of March 19, 2021, you held Fund shares through an intermediary (such as a broker-dealer) and wish to participate in and vote at the Meeting, you will need to obtain a legal proxy from your intermediary reflecting the Fund's name, the number of Fund shares held and your name and email address. You may forward an email from your intermediary containing the legal proxy or attach an image of the legal proxy to an email and send it to AST atattendameeting@astfinancial.comwith "Legal Proxy" in the subject line. You will then be provided with credentials to participate in the Meeting, as well as a unique control number to vote your shares. If you would

liketoparticipatein,butNOTvoteat,theMeeting,pleasesendanemailtoASTatattendameeting@astfinancial.comwith proof of ownership of Fund shares. A statement, letter or the Vote Instruction Form from your intermediary will be sufficient proof of ownership. You will then be provided credentials to participate in the Meeting. All requests to participate in and/or vote at the Meeting must be received by AST no later than 3:00 p.m. Eastern Time on May 6, 2021.

Please contact AST atattendameeting@astfinancial.comwith any questions regarding access to the Meeting, and an AST representative will contact you to answer your questions. Whether or not you plan to participate in the Meeting, we urge you to vote and submit your vote in advance of the Meeting.

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Eaton Vance Short Duration Diversified Income Fund published this content on 25 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 March 2021 15:56:01 UTC.