On January 24, 2024, Sit Investment Associates, Inc. delivered a letter to Eaton Vance California Municipal Bond Fund expressing concern about the persistently high Net Asset Value (NAV) discount (the share price relative to net asset value) for the Company. Sit Investment Associates expressed its view that the NAV discount is the result of the Company's significant underperformance versus the benchmark, increased volatility versus the benchmark, and considerable reduction in the size of the Company's monthly dividends. Sit Investment Associates also expressed that the overuse of leverage is the primary driver of these two factors.

Sit Investment Associates requested that the Company take corrective action, including proactive measures to reduce the NAV discount. Such action should include providing shareholders with the opportunity to redeem shares at the Fund's NAV. Sit Investment Associates stated that the investment adviser should refund to the Company any management fees collected which were based on the value of the borrowed assets during the periods in which the cost of borrowing exceeded the return on the Company's holdings.