Overview

Foreign currency investments have historically maintained low correlations with traditional fixed income investments, providing diversification benefits.2

Fund offers broad diversification across local currencies and is not focused on the dollar, euro or yen like some other currency funds.

Average Annual Returns (%) as of Dec 31, 2014

1 Month 3 Months YTD 1 Year 3 Years 5 Years Life of Fund
02/28/2015
Fund at NAV -0.21 -1.63 -0.48 -0.44 -0.09 1.49 4.59
Fund w/Max Sales Charge -4.97 -6.31 -5.19 -5.15 -1.69 0.50 3.93
JPMorgan Emerging Local Markets Index Plus (ELMI+)3 0.98 -4.45 -1.82 -7.98 -3.44 -0.69 1.71
Barclays Global Ex-USD Benchmark Currency (Trade-Weighted) Index4 0.21 -4.17 -2.38 -8.28 -3.20 -0.47 0.27
12/31/2014
Fund at NAV -1.16 -1.69 -0.51 -0.51 1.47 1.80 4.76
Fund w/Max Sales Charge -5.86 -6.39 -5.24 -5.24 -0.15 0.80 4.08
JPMorgan Emerging Local Markets Index Plus (ELMI+)3 -2.67 -5.41 -7.03 -7.03 -0.72 -0.39 1.99
Barclays Global Ex-USD Benchmark Currency (Trade-Weighted) Index4 -1.83 -3.84 -6.45 -6.45 -1.38 -0.20 0.60
Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund's current performance may be lower or higher than quoted. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) with all distributions reinvested. Returns for other classes of shares offered by the Fund are different. Performance less than one year is cumulative. Max Sales Charge: 4.75%.

Fund Facts as of Feb 28, 2015

Class A Inception 06/27/2007
Investment Objective Total return
Total Net Assets $376.6M
Minimum Investment $1000
Expense Ratio (Gross)5 1.25%
Expense Ratio (Net)5,6 1.10%
CUSIP 277923710


Portfolio Management

John R. Baur Managed Fund since 2008
Michael A. Cirami, CFA Managed Fund since 2008

Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding. Fund primarily invests in an affiliated investment company (Portfolio) with the same objective(s) and policies as the Fund and may also invest directly. References to investments are to the aggregate holdings of the Fund and the Portfolio.

About Risk 

The value of foreign currencies as measured in U.S. dollars will fluctuate and may be unpredictably affected by changes in foreign currency rates and exchange control regulations, application of foreign tax laws, governmental administration of economic or monetary policies, intervention by U.S. or foreign governments or central banks, and relations between nations. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. In emerging or frontier countries, these risks may be more significant. An imbalance in supply and demand in the income market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of nonpayment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer's ability to make principal and interest payments. Derivative instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. The value of commodities investments will generally be affected by overall market movements and factors specific to a particular industry or commodity, including weather, embargoes, tariffs, or health, political, international and regulatory developments. As interest rates rise, the value of certain income investments is likely to decline. Because the Fund may invest significantly in a particular geographic region or country, value of Fund shares may fluctuate more than a fund with less exposure to such areas. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. No Fund is a complete investment program and you may lose money investing in a Fund. The Fund may engage in other investment practices that may involve additional risks and you should review the Fund prospectus for a complete description.


Performance

Average Annual Returns (%) as of Dec 31, 2014

1 Month 3 Months YTD 1 Year 3 Years 5 Years Life of Fund
01/31/2015
Fund at NAV -0.27 -2.09 -0.27 0.25 0.13 1.59 4.66
Fund w/Max Sales Charge -4.99 -6.78 -4.99 -4.49 -1.47 0.60 3.99
JPMorgan Emerging Local Markets Index Plus (ELMI+)3 -2.77 -7.59 -2.77 -7.54 -3.01 -0.88 1.60
Barclays Global Ex-USD Benchmark Currency (Trade-Weighted) Index4 -2.59 -5.92 -2.59 -7.49 -3.00 -0.53 0.25
Morningstar™ Multicurrency Category7 0.81 -1.00 0.81 0.60 -1.01 -0.26
12/31/2014
Fund at NAV -1.16 -1.69 -0.51 -0.51 1.47 1.80 4.76
Fund w/Max Sales Charge -5.86 -6.39 -5.24 -5.24 -0.15 0.80 4.08
JPMorgan Emerging Local Markets Index Plus (ELMI+)3 -2.67 -5.41 -7.03 -7.03 -0.72 -0.39 1.99
Barclays Global Ex-USD Benchmark Currency (Trade-Weighted) Index4 -1.83 -3.84 -6.45 -6.45 -1.38 -0.20 0.60
Morningstar™ Multicurrency Category7 -0.42 -2.16 -1.64 -1.64 -0.43 -0.48
Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund's current performance may be lower or higher than quoted. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) with all distributions reinvested. Returns for other classes of shares offered by the Fund are different. Performance less than one year is cumulative. Max Sales Charge: 4.75%.

Calendar Year Returns (%)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Fund at NAV 9.10 6.50 4.76 -0.12 7.62 -2.42 -0.51
JPMorgan Emerging Local Markets Index Plus (ELMI+)3 3.21 12.30 16.04 -3.85 11.69 5.68 -5.19 7.45 -2.04 -7.03
Barclays Global Ex-USD Benchmark Currency (Trade-Weighted) Index4 -6.71 7.95 3.91 -0.66 3.14 -0.59 -6.45

Fund Facts

Expense Ratio (Gross)5 1.25%
Expense Ratio (Net)5,6 1.10%
Class A Inception 06/27/2007
Distribution Frequency Monthly

Yield Information8 as of Jan 31, 2015

Distribution Rate at NAV 5.36%
Subsidized SEC 30-day Yield 3.26%
Unsubsidized SEC 30-day Yield 2.90%


NAV History

Date NAV NAV Change
Mar 04, 2015 $9.70 $-0.01
Mar 03, 2015 $9.71 $0.00
Mar 02, 2015 $9.71 $-0.02
Feb 27, 2015 $9.73 $0.04
Feb 26, 2015 $9.69 $-0.03
Feb 25, 2015 $9.72 $0.01
Feb 24, 2015 $9.71 $-0.01
Feb 23, 2015 $9.72 $-0.04
Feb 20, 2015 $9.76 $0.00
Feb 19, 2015 $9.76 $-0.01

Distribution History9

Ex-Date Distribution Reinvest NAV
Feb 26, 2015 $0.03940 $9.69
Jan 29, 2015 $0.04370 $9.81
Dec 30, 2014 $0.04370 $9.87
Nov 26, 2014 $0.04220 $10.05
Oct 30, 2014 $0.04370 $10.14
Sep 29, 2014 $0.04220 $10.14
Aug 28, 2014 $0.04370 $10.32
Jul 30, 2014 $0.04370 $10.37
Jun 27, 2014 $0.04220 $10.35
May 29, 2014 $0.04370 $10.36
View All
No records in this table indicates that there has not been a distribution greater than .0001 within the past 3 years.
Fund prospectus

Capital Gain History9

Ex-Date Short-Term Long-Term Reinvest NAV
No records in this table indicates that there has not been a capital gain greater than .0001 within the past 3 years.
Fund prospectus

Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding. Fund primarily invests in an affiliated investment company (Portfolio) with the same objective(s) and policies as the Fund and may also invest directly. References to investments are to the aggregate holdings of the Fund and the Portfolio.

About Risk 

The value of foreign currencies as measured in U.S. dollars will fluctuate and may be unpredictably affected by changes in foreign currency rates and exchange control regulations, application of foreign tax laws, governmental administration of economic or monetary policies, intervention by U.S. or foreign governments or central banks, and relations between nations. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. In emerging or frontier countries, these risks may be more significant. An imbalance in supply and demand in the income market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of nonpayment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer's ability to make principal and interest payments. Derivative instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. The value of commodities investments will generally be affected by overall market movements and factors specific to a particular industry or commodity, including weather, embargoes, tariffs, or health, political, international and regulatory developments. As interest rates rise, the value of certain income investments is likely to decline. Because the Fund may invest significantly in a particular geographic region or country, value of Fund shares may fluctuate more than a fund with less exposure to such areas. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. No Fund is a complete investment program and you may lose money investing in a Fund. The Fund may engage in other investment practices that may involve additional risks and you should review the Fund prospectus for a complete description.


Portfolio

Asset Mix (%)10,11 as of Dec 31, 2014

Foreign Sovereign Bonds 78.0
U.S. Treasury & Govt. Agency Bonds 15.6
Cash Equivalents 4.3
U.S. Govt. Agency Mortgage Backed Securities 1.9
Other Net Assets 0.3

Portfolio Statistics as of Dec 31, 2014

Average Duration 1.21 yrs.
Countries Represented 37


Credit Quality (%)12 as of Dec 31, 2014

AAA 21.06
AA 1.42
A 5.17
BBB 24.61
BB 33.07
B 14.67
CCC or Lower 0.00
Not Rated 0.00
Total 100.00
Ratings are based on Moody's, S&P or Fitch, as applicable. If securities are rated differently by the ratings agencies, the higher rating is applied. Ratings, which are subject to change, apply to the creditworthiness of the issuers of the underlying securities and not to the Fund or its shares. Credit ratings measure the quality of a bond based on the issuer's creditworthiness, with ratings ranging from AAA, being the highest, to D, being the lowest based on S&P's measures. Ratings of BBB or higher by S&P or Fitch (Baa or higher by Moody's) are considered to be investment-grade quality. Credit ratings are based largely on the ratings agency's analysis at the time of rating. The rating assigned to any particular security is not necessarily a reflection of the issuer's current financial condition and does not necessarily reflect its assessment of the volatility of a security's market value or of the liquidity of an investment in the security. Holdings designated as "Not Rated" are not rated by the national ratings agencies stated above.


Foreign Currency Allocations (%)10,13 as of Dec 31, 2014

Africa 17.52
Ugandan Shilling 5.59
Zambian Kwacha 5.03
Kenyan Shilling 4.29
Mauritian Rupee 1.96
Egyptian Pound 0.65
Asia 36.72
Bangladeshi Taka 6.80
Sri Lankan Rupee 5.21
Indian Rupee 4.94
Philippine Peso 4.64
Indonesian Rupiah 4.63
Viet Nam Dong 2.94
Chinese Renminbi (offshore) 2.91
Malaysian Ringgit 2.43
Singapore Dollar 2.22
Europe 34.80
Icelandic Kronur 6.06
Polish Zloty 4.93
Serbian Dinar 4.80
Norwegian Krone 2.90
Turkish Lira 2.84
British Pound Sterling 2.55
Bosnia and Herzegovina Marka 2.45
Georgian Lari 2.33
Romanian Leu 2.23
Swedish Kronor 2.21
Azerbaijani New Manat 1.49
Latin America 21.87
Uruguayan Peso 5.87
Mexican Peso 5.16
Dominican Republic Peso 3.27
Colombian Peso 2.56
Chilean Peso 2.50
Brazilian Real 1.22
Costa Rican Colon 1.15
Peruvian Nuevo Sole 0.13
Middle East 8.69
Lebanese Pound 5.22
Jordanian Dinars 3.47


Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding. Fund primarily invests in an affiliated investment company (Portfolio) with the same objective(s) and policies as the Fund and may also invest directly. References to investments are to the aggregate holdings of the Fund and the Portfolio.

About Risk 

The value of foreign currencies as measured in U.S. dollars will fluctuate and may be unpredictably affected by changes in foreign currency rates and exchange control regulations, application of foreign tax laws, governmental administration of economic or monetary policies, intervention by U.S. or foreign governments or central banks, and relations between nations. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. In emerging or frontier countries, these risks may be more significant. An imbalance in supply and demand in the income market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of nonpayment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer's ability to make principal and interest payments. Derivative instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. The value of commodities investments will generally be affected by overall market movements and factors specific to a particular industry or commodity, including weather, embargoes, tariffs, or health, political, international and regulatory developments. As interest rates rise, the value of certain income investments is likely to decline. Because the Fund may invest significantly in a particular geographic region or country, value of Fund shares may fluctuate more than a fund with less exposure to such areas. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. No Fund is a complete investment program and you may lose money investing in a Fund. The Fund may engage in other investment practices that may involve additional risks and you should review the Fund prospectus for a complete description.


Insights & Analysis

Quarterly Commentary

A Word On The Markets  as of Dec 31, 2014

The drop in oil prices that began last summer accelerated in the fourth quarter amid rising U.S. production, weakening global demand and the decision of the Organization of Petroleum Exporting Countries (OPEC) not to cut output. During the first part of the quarter, asset prices in emerging markets that import oil rallied, while prices in exporting countries declined. Russia, the world's second-largest oil exporter, was especially hard hit – pressure that intensified as more aggressive military action in Ukraine prompted new economic sanctions from the West. As the quarter progressed, risk appetites diminished more broadly, and the selloff that had largely been confined to oil exporters spread across emerging markets.

As expected, the Federal Reserve (Fed) ended its monthly bond purchases in October and held short-term interest rates near zero. However, the central bank’s economic projections and comments from Chair Janet Yellen following December’s policy meeting were more positive on the U.S. economy than previously, solidifying expectations for rate hikes in 2015. Overseas, the Bank of Japan expanded its asset-purchase program, and Japan’s public pension announced it would invest more in stocks—moves that caused Japanese assets to rally and the yen to weaken. The European Central Bank (ECB) disappointed investors by failing to unveil new stimulus measures but signaled it might do so in January. As 2014 drew to a close, political uncertainty in Greece raised the possibility of another sovereign debt restructuring in the new year.

Against this backdrop, the U.S. Treasury yield curve flattened—short-term yields rose modestly on expectations of higher rates from the Fed, and long-term yields declined due to strong demand for long-dated Treasuries from pensions and foreign investors. Most developed and emerging currencies weakened against the U.S. dollar, while local rates in emerging markets were generally unchanged. Credit spreads widened globally.

Performance Summary 

Eaton Vance Diversified Currency Income Fund (the Fund) outperformed its benchmark, the JPMorgan Emerging Local Markets Index Plus (the Index),3 at net asset value for the quarter.

  • The Middle East and North Africa region, along with Sub-Saharan Africa, made positive contributions to Fund performance, boosted by gains in the Lebanese pound and Zambian kwacha.
  • In contrast, Latin America was the biggest detractor, where exposure to the Mexican peso and the Colombian peso hurt results.
  • Returns were also negative in Western Europe and Asia, as well as in Central and Eastern Europe. In these regions, positions in the Norwegian krone, Malaysian ringgit and Georgian lari were particularly unfavorable.

Average Annual Returns (%) as of Dec 31, 2014

1 Month 3 Months YTD 1 Year 3 Years 5 Years Life of Fund
Fund at NAV -1.16 -1.69 -0.51 -0.51 1.47 1.80 4.76
Fund w/Max Sales Charge -5.86 -6.39 -5.24 -5.24 -0.15 0.80 4.08
JPMorgan Emerging Local Markets Index Plus (ELMI+)3 -2.67 -5.41 -7.03 -7.03 -0.72 -0.39 1.99
Barclays Global Ex-USD Benchmark Currency (Trade-Weighted) Index4 -1.83 -3.84 -6.45 -6.45 -1.38 -0.20 0.60
Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund's current performance may be lower or higher than quoted. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) with all distributions reinvested. Returns for other classes of shares offered by the Fund are different. Performance less than one year is cumulative. Max Sales Charge: 4.75%.

Fund Facts as of Dec 31, 2014

Class A Inception 06/27/2007
Expense Ratio (Gross)5 1.26%
Expense Ratio (Net)5,14 1.10%


Contributors 

Factors contributing to the Fund’s performance during the quarter:

  • While Latin America generated a negative return overall, the Uruguayan peso strengthened and was the top individual contributor in the portfolio. The peso benefited from the election of a very popular former president as Uruguay’s new president.
  • An allocation to the Lebanese pound was beneficial, since the currency is pegged to the U.S. dollar while the yield is quite attractive.
  • Exposure to the Zambian kwacha added value as, even though economic growth in the country is slowing, it remains robust by global standards.

Detractors 

Factors detracting from the Fund’s performance during the quarter:

  • Exposure to the Mexican peso detracted. The peso fell to its lowest level against the U.S. dollar in more than two years due the selloff in oil. Mexico is one of the world’s leading oil exporters and funds about one-third of its federal budget with oil revenues.
  • Owning the Colombian peso was unfavorable. Like the Mexican peso, the Colombian peso came under pressure because of the decline in oil—oil exports are the leading source of foreign exchange for Colombia.
  • The drop in oil also hurt the Fund’s position in the Norwegian krone. Norway is the largest oil producer in Western Europe.

Investment Outlook And Fund Positioning 

The U.S. economy is healthier than other developed economies, and the Fed is reining in stimulus while the Bank of Japan and ECB remain in easing mode. Consequently, we continue to be more constructive in our investment outlook for the United States versus the rest of the developed world and believe the U.S. dollar could strengthen further against other major currencies. In emerging markets, we remain highly selective in our pursuit of opportunities given the challenges facing various countries, including the falling price of oil and other commodities. That said, we continue to find many interesting opportunities in select markets.

As such, we continue to employ our intensive, proprietary research process in order to identify the most compelling investment ideas from around the world.

Credit Quality (%)12 as of Dec 31, 2014

AAA 21.06
AA 1.42
A 5.17
BBB 24.61
BB 33.07
B 14.67
CCC or Lower 0.00
Not Rated 0.00
Total 100.00
Ratings are based on Moody's, S&P or Fitch, as applicable. If securities are rated differently by the ratings agencies, the higher rating is applied. Ratings, which are subject to change, apply to the creditworthiness of the issuers of the underlying securities and not to the Fund or its shares. Credit ratings measure the quality of a bond based on the issuer's creditworthiness, with ratings ranging from AAA, being the highest, to D, being the lowest based on S&P's measures. Ratings of BBB or higher by S&P or Fitch (Baa or higher by Moody's) are considered to be investment-grade quality. Credit ratings are based largely on the ratings agency's analysis at the time of rating. The rating assigned to any particular security is not necessarily a reflection of the issuer's current financial condition and does not necessarily reflect its assessment of the volatility of a security's market value or of the liquidity of an investment in the security. Holdings designated as "Not Rated" are not rated by the national ratings agencies stated above.


The views expressed in this report are those of portfolio manager(s) and are current only through the date stated at the top of this page. These views are subject to change at any time based upon market or other conditions, and Eaton Vance disclaims any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Eaton Vance fund. This commentary may contain statements that are not historical facts, referred to as "forward looking statements". The Fund's actual future results may differ significantly from those stated in any forward-looking statement, depending on factors such as changes in securities or financial markets or general economic conditions, the volume of sales and purchases of Fund shares, the continuation of investment advisory, administrative and service contracts, and other risks discussed from time to time in the Fund's filings with the Securities and Exchange Commission.

Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding. Fund primarily invests in an affiliated investment company (Portfolio) with the same objective(s) and policies as the Fund and may also invest directly. References to investments are to the aggregate holdings of the Fund and the Portfolio.

About Risk 

The value of foreign currencies as measured in U.S. dollars will fluctuate and may be unpredictably affected by changes in foreign currency rates and exchange control regulations, application of foreign tax laws, governmental administration of economic or monetary policies, intervention by U.S. or foreign governments or central banks, and relations between nations. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. In emerging or frontier countries, these risks may be more significant. An imbalance in supply and demand in the income market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of nonpayment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer's ability to make principal and interest payments. Derivative instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. The value of commodities investments will generally be affected by overall market movements and factors specific to a particular industry or commodity, including weather, embargoes, tariffs, or health, political, international and regulatory developments. As interest rates rise, the value of certain income investments is likely to decline. Because the Fund may invest significantly in a particular geographic region or country, value of Fund shares may fluctuate more than a fund with less exposure to such areas. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. No Fund is a complete investment program and you may lose money investing in a Fund. The Fund may engage in other investment practices that may involve additional risks and you should review the Fund prospectus for a complete description.


Attribution

Attribution available in Fund Literature tab.

Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding. Fund primarily invests in an affiliated investment company (Portfolio) with the same objective(s) and policies as the Fund and may also invest directly. References to investments are to the aggregate holdings of the Fund and the Portfolio.

About Risk 

The value of foreign currencies as measured in U.S. dollars will fluctuate and may be unpredictably affected by changes in foreign currency rates and exchange control regulations, application of foreign tax laws, governmental administration of economic or monetary policies, intervention by U.S. or foreign governments or central banks, and relations between nations. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. In emerging or frontier countries, these risks may be more significant. An imbalance in supply and demand in the income market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of nonpayment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer's ability to make principal and interest payments. Derivative instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. The value of commodities investments will generally be affected by overall market movements and factors specific to a particular industry or commodity, including weather, embargoes, tariffs, or health, political, international and regulatory developments. As interest rates rise, the value of certain income investments is likely to decline. Because the Fund may invest significantly in a particular geographic region or country, value of Fund shares may fluctuate more than a fund with less exposure to such areas. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. No Fund is a complete investment program and you may lose money investing in a Fund. The Fund may engage in other investment practices that may involve additional risks and you should review the Fund prospectus for a complete description.


Management

Biography
John R. Baur

John R. Baur

Vice President, Eaton Vance Management
Joined Eaton Vance 2005

John Baur is a vice president of Eaton Vance Management, director of global portfolio analysis and portfolio manager on Eaton Vance’s global income group. He is responsible for buy and sell decisions, portfolio construction and risk management for the firm’s global income strategies. He joined Eaton Vance in 2005.

John began his career in the investment management industry in 2005. Before joining Eaton Vance, he was employed by Applied Materials in an engineering capacity, spending five of his seven years at the firm in Asia.

John earned a B.S. from MIT and an MBA from the Johnson Graduate School of Management at Cornell University.

Education
  • B.S. Massachusetts Institute of Technology
  • M.B.A. Johnson Graduate School of Management, Cornell University
Experience
  • Managed Fund since 2008
Biography
Michael A. Cirami, CFA

Michael A. Cirami, CFA

Vice President, Eaton Vance Management
Joined Eaton Vance 2003

Michael Cirami is a vice president of Eaton Vance Management, co-director of global income and portfolio manager on Eaton Vance’s global income team, focusing on emerging Europe, the Middle East and Africa. He is responsible for buy and sell decisions, portfolio construction and risk management for the firm’s global income strategies. He joined Eaton Vance in 2003.

Michael began his career in the investment management industry in 1998. Before joining Eaton Vance, he was employed at State Street Bank in Boston, Luxemburg and Munich, and with BT&T Asset Management in Zurich.

Michael earned a B.S., cum laude, from Mary Washington College and an MBA with honors from the William E. Simon School at the University of Rochester. He also studied at WHU Otto Beisheim School of Management in Koblenz, Germany. He is a member of the Boston Security Analysts Society, the Boston Committee on Foreign Relations and the Ludwig von Mises Institute. He also serves as a board member and chairman of the investment committee of the Boston Civic Symphony and the University of Mary Washington Foundation. Additionally, he is on the board of overseers for the New England Conservatory. He is a CFA charterholder.

Michael’s commentary has appeared in The Wall Street Journal, Barron’s, Bloomberg and Reuters. He has been a featured speaker at Schwab, Bloomberg European Debt Crisis and Standard Chartered forums.

Education
  • B.S. Mary Washington College
  • M.B.A. William E. Simon School of Business, University of Rochester
Experience
  • Managed Fund since 2008

Fund Literature

Fund Literature

Report of Organizational Actions Affecting Basis of Securities

Annual Report

Attribution

Income, Volatility and Taxes Guide

Commentary

Income Markets Review

Income Markets Snapshot

Discover Opportunities in the Income Markets with Eaton Vance

Fact Sheet

Income: Breaking from tradition in today’s bond market

Full Prospectus

Diversified Currency Income Holdings

Holdings-1st or 3rd fiscal quarters-www.sec.gov

SAI

EXCLUSIVE CONTENT

Seeking income without adding more volatility

Semi-Annual Report

Summary Prospectus


 

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