Overview

 

Help combat rising interest rates with a floating-rate loan investment leader.2

Floating-rate loans have historically performed well in rising rate environments. Eaton Vance offers deep credit research and 20+ years of experience.

Not based on the return of any specific fund.

Average Annual Returns (%) as of Jun 30, 2014

1 Month 3 Months YTD 1 Year 3 Years 5 Years 10 Years
08/31/2014
Fund at NAV 0.32 0.51 1.88 3.98 6.39 7.10 4.56
Fund w/Max Sales Charge -1.94 -1.75 -0.40 1.64 5.58 6.60 4.32
S&P/LSTA Leveraged Loan Index3 0.15 0.70 2.73 4.73 7.01 7.26 5.20
06/30/2014
Fund at NAV 0.40 0.99 1.77 4.87 5.09 8.44 4.61
Fund w/Max Sales Charge -1.85 -1.28 -0.50 2.50 4.29 7.93 4.37
S&P/LSTA Leveraged Loan Index3 0.58 1.38 2.60 5.59 5.43 8.72 5.24
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. Total return prior to the commencement of the class reflects returns of another Fund class. Prior returns are adjusted to reflect applicable sales charge (but were not adjusted for other expenses). If adjusted for other expenses, returns would be lower. Max Sales Charge: 2.25%.

Fund Facts as of Aug 31, 2014

Class A Inception 05/07/2003
Performance Inception 09/07/2000
Investment Objective High current income
Total Net Assets $2.5B
Minimum Investment $1000
Expense Ratio4 1.07%
CUSIP 277911137

Top 10 Issuers (%)5 as of Aug 31, 2014

Asurion LLC
Dell Inc.
Intelsat Jackson Holdings SA
FMG Resources (August 2006) Pty Ltd.
H.J. Heinz Company
RP Crown Parent LLC
Infor (US) Inc.
Transdigm Inc.
Avago Technologies Cayman Ltd.
US Foods Inc.
Total 8.77


Portfolio Management

Scott H. Page, CFA Managed Fund since inception
Craig P. Russ Managed Fund since 2007
Michael W. Weilheimer, CFA Managed Fund since inception

Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding. Fund invests in one or more affiliated investment companies (Portfolios). Unless otherwise noted, references to investments are to the aggregate holdings of the Portfolios. Top 10 Issuers and Sectors are shown as a percentage of Floating Rate Portfolio's total investments.

About Risk 

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. There can be no assurance that the liquidation of collateral securing an investment will satisfy the issuer's obligation in the event of nonpayment or that collateral can be readily liquidated. The ability to realize the benefits of any collateral may be delayed or limited. 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. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. As interest rates rise, the value of certain income investments is likely to decline. Bank loans are subject to prepayment risk. 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. 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. 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 Jun 30, 2014

1 Month 3 Months YTD 1 Year 3 Years 5 Years 10 Years
08/31/2014
Fund at NAV 0.32 0.51 1.88 3.98 6.39 7.10 4.56
Fund w/Max Sales Charge -1.94 -1.75 -0.40 1.64 5.58 6.60 4.32
S&P/LSTA Leveraged Loan Index3 0.15 0.70 2.73 4.73 7.01 7.26 5.20
Morningstar™ Bank Loan Category6 0.20 0.57 2.06 4.20 6.51 6.65 3.89
06/30/2014
Fund at NAV 0.40 0.99 1.77 4.87 5.09 8.44 4.61
Fund w/Max Sales Charge -1.85 -1.28 -0.50 2.50 4.29 7.93 4.37
S&P/LSTA Leveraged Loan Index3 0.58 1.38 2.60 5.59 5.43 8.72 5.24
Morningstar™ Bank Loan Category6 0.49 1.01 1.97 5.11 5.06 7.77 3.95
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. Total return prior to the commencement of the class reflects returns of another Fund class. Prior returns are adjusted to reflect applicable sales charge (but were not adjusted for other expenses). If adjusted for other expenses, returns would be lower. Max Sales Charge: 2.25%.

Calendar Year Returns (%)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Fund at NAV 4.53 4.32 7.01 1.57 -31.03 48.13 10.31 2.45 9.20 5.02
S&P/LSTA Leveraged Loan Index3 5.17 5.08 6.77 2.02 -29.10 51.62 10.13 1.52 9.66 5.29

Fund Facts

Expense Ratio4 1.07%
Class A Inception 05/07/2003
Performance Inception 09/07/2000
Distribution Frequency Monthly

Yield Information7 as of Aug 29, 2014

Distribution Rate at NAV 3.72%
SEC 30-day Yield 3.22%


Morningstar™ Ratings as of Aug 31, 2014

Time Period Rating Rating (Load Waived) Funds in
Bank Loan
Category
Overall *** **** 172
3 Years ** *** 172
5 Years *** **** 111
10 Years **** **** 45
Based on Risk-Adjusted Returns.

The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics.

© 2014 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers is responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on how a fund ranks on a Morningstar Risk-Adjusted Return measure against other funds in the same category. This measure takes into account variations in a fund's monthly performance after adjusting for sales loads (except for load-waived A shares) redemption fees, and the risk-free rate, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. Load-waived A share star ratings do not include any front-end sales load and are intended for those investors who have access to such purchase terms (e.g., plan participants of a defined contribution plan). Not all A share mutual funds for which Morningstar calculates a load-waived A share star rating may actually waive their front-end sales load. Therefore, Morningstar strongly encourages investors to contact their investment professional to determine whether they are eligible to purchase the A share without paying the front load. The Morningstar Rating may differ among share classes of a mutual fund as a result of different sales loads and/or expense structure.

NAV History

Date NAV NAV Change
Sep 29, 2014 $9.45 $-0.02
Sep 26, 2014 $9.47 $-0.01
Sep 25, 2014 $9.48 $-0.01
Sep 24, 2014 $9.49 $-0.01
Sep 23, 2014 $9.50 $-0.01
Sep 22, 2014 $9.51 $-0.01
Sep 19, 2014 $9.52 $0.00
Sep 18, 2014 $9.52 $0.01
Sep 17, 2014 $9.51 $0.00
Sep 16, 2014 $9.51 $-0.01

Distribution History8

Ex-Date Distribution Reinvest NAV
Sep 30, 2014 $0.02930 $9.46
Aug 29, 2014 $0.03020 $9.56
Jul 31, 2014 $0.02962 $9.56
Jun 30, 2014 $0.02869 $9.61
May 30, 2014 $0.02818 $9.60
Apr 30, 2014 $0.02754 $9.57
Mar 31, 2014 $0.02895 $9.60
Feb 28, 2014 $0.02644 $9.62
Jan 31, 2014 $0.02943 $9.62
Dec 31, 2013 $0.03710 $9.61
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 History8

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

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 as of month-end for the stated time period only; due to market volatility, the Fund's current performance may be lower or higher than quoted. For the Eaton Vance Fund's performance as of the most recent month-end, please refer to eatonvance.com. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) with all distributions reinvested. Returns shown at NAV unless noted otherwise. Returns for other classes of shares offered by the Fund are different. It is not possible to invest in an index.

Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding. Fund invests in one or more affiliated investment companies (Portfolios). Unless otherwise noted, references to investments are to the aggregate holdings of the Portfolios. Top 10 Issuers and Sectors are shown as a percentage of Floating Rate Portfolio's total investments.

About Risk 

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. There can be no assurance that the liquidation of collateral securing an investment will satisfy the issuer's obligation in the event of nonpayment or that collateral can be readily liquidated. The ability to realize the benefits of any collateral may be delayed or limited. 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. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. As interest rates rise, the value of certain income investments is likely to decline. Bank loans are subject to prepayment risk. 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. 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. 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 (%)9 as of Aug 31, 2014

Floating-Rate Loans 79.14
U.S. Corporate Bonds 15.33
Other 2.88
Cash & Equivalents 2.65
Total 100.00

Portfolio Statistics as of Aug 31, 2014

Number of Issuers 771
Number of Holdings 1111
Average Coupon 4.84%
Average Maturity 5.21 yrs.
Average Duration 0.67 yrs.
Average Price $100.02


Sector Breakdown (%)5 as of Aug 31, 2014

Health Care 9.84
Electronics/Electrical 8.80
Business Equipment & Services 8.71
Retailers (except food & drug) 5.09
Chemicals & Plastics 4.48
Food Products 4.38
Oil & Gas 4.28
Financial Intermediaries 4.10
Automotive 3.67
Lodging & Casinos 3.50
View All

Credit Quality (%)10 as of Aug 31, 2014

AAA 0.00
AA 0.00
A 0.00
BBB 1.65
BB 41.60
B 47.95
CCC or Lower 4.59
Not Rated 4.21
Total 100.00
Ratings are based on Moody's, S&P or Fitch, as applicable. If securities are rated differently by the rating 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 rating 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 rating agencies stated above.


Assets by Country (%)9 as of Aug 31, 2014

US 84.04
Canada 3.97
Luxembourg 3.22
UK 2.60
Netherlands 2.46
Other 3.71

Maturity Distribution (%)9,11 as of Aug 31, 2014

Less Than 1 Year 3.00
1 To 3 Years 6.10
3 To 5 Years 30.74
5 To 10 Years 58.41
10 To 20 Years 0.77
20 To 30 Years 0.00
More Than 30 Years 0.04
Equity/Other 0.94
Total 100.00


Loan Type (%)5,12 as of Aug 31, 2014

First Lien13 90.28
Second Lien 2.20


Fund Holdings9,14,15 as of Jul 31, 2014

Holding Coupon Rate Maturity Date % of Net Assets
EV Cash Reserves Fund 0.12% 07/31/2014 2.51%
Dell Inc. 4.50% 04/29/2020 0.93%
Asurion 5.00% 05/24/2019 0.89%
Fortescue Metals Group 3.75% 06/30/2019 0.80%
Intelsat Jackson Holdings 3.75% 06/30/2019 0.78%
H.J. Heinz Company 3.50% 06/05/2020 0.73%
RedPrairie 6.00% 12/21/2018 0.63%
Hilton Worldwide Finance, LLC 3.50% 10/26/2020 0.61%
MEG Energy Corp. 3.75% 03/31/2020 0.60%
Avago 3.75% 05/06/2021 0.60%
View All

Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding. Fund invests in one or more affiliated investment companies (Portfolios). Unless otherwise noted, references to investments are to the aggregate holdings of the Portfolios. Top 10 Issuers and Sectors are shown as a percentage of Floating Rate Portfolio's total investments.

About Risk 

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. There can be no assurance that the liquidation of collateral securing an investment will satisfy the issuer's obligation in the event of nonpayment or that collateral can be readily liquidated. The ability to realize the benefits of any collateral may be delayed or limited. 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. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. As interest rates rise, the value of certain income investments is likely to decline. Bank loans are subject to prepayment risk. 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. 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. 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 Jun 30, 2014

The U.S. floating-rate loan market continued its positive performance in the second quarter, with the S&P/LSTA Leveraged Loan Index (the Index)3 advancing 1.38% for the three months ended June 30, 2014. The Index returned 0.11%, 0.69% and 0.58% in April, May and June, respectively. Second-quarter results lifted the Index’s year-to-date return to 2.60%, approximately halfway to the calendar year “clip-the-coupon” expectation of many loan investors.

Aside from a brief bout of weakness in technical conditions as the quarter opened, overall market tone was firm for the quarter as a whole. Investor demand in retail funds eased during the period, turning modestly net negative following nearly two years of positive demand. However, collateralized loan obligation (CLO) demand provided an offset to the mild ebb in retail attention to the asset class, helping keep volatility at bay, while prices across the market mainly moved sideways. The exception for the period was, again, big-mover Energy Future Holdings (EFH, formerly TXU Corp.), which advanced markedly in price following its April 29 bankruptcy filing. Excluding EFH, adjusted year-to-date Index performance was 2.26%, with the single issuer thus adding 34 basis points to 2014 results to date.

Following EFH’s default, the Index was “defaultless” in May and June, lowering the last-twelve-months default rate by principal amount to 4.41%. The Ex-EFH tally ended the quarter at 1.08%, a 21-month low. Given the absence of defaults and the technical picture balanced, higher-coupon loans again outperformed during the period. Loans rated B and CCC outperformed loans rated BB for the quarter. This was a result of a recent slowing of retail demand, higher-yield-seeking CLOs accounting for a greater percentage of the demand composition and overall fewer dollars chasing the lower-credit-risk segment of the market.

Performance Summary 

Eaton Vance Floating-Rate & High Income Fund (the Fund) underperformed the Index at net asset value for the quarter.

  • Lack of defaulted EFH loans was again the largest detractor to relative results, as this Index constituent – it’s largest – was the greatest individual contributor to Index results. In a similar vein, underweight exposure to second-lien loans was a relative headwind, as these loans outperformed the Index’s more traditional first-lien fare.
  • The remainder of relative results was broadly explained by the Fund’s up-in-quality positioning, with results driven by overweight to loans rated BB, underweight to loans rated B and significant underweight to loans rated CCC. By credit tier, loans within the Index rated BB, B and CCC returned 0.92%, 1.13% and 3.43%, respectively. As of June 30, 2014, the Fund was positioned for lower yield potential in the short run and, importantly, markedly lower credit risk longer term.
  • Off-Index exposure to high-yield bonds, a strategic element of the Fund’s strategy, was additive to relative results, as bonds outperformed loans during the quarter.

Average Annual Returns (%) as of Jun 30, 2014

1 Month 3 Months YTD 1 Year 3 Years 5 Years 10 Years
Fund at NAV 0.40 0.99 1.77 4.87 5.09 8.44 4.61
Fund w/Max Sales Charge -1.85 -1.28 -0.50 2.50 4.29 7.93 4.37
S&P/LSTA Leveraged Loan Index3 0.58 1.38 2.60 5.59 5.43 8.72 5.24
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. Total return prior to the commencement of the class reflects returns of another Fund class. Prior returns are adjusted to reflect applicable sales charge (but were not adjusted for other expenses). If adjusted for other expenses, returns would be lower. Max Sales Charge: 2.25%.

Fund Facts as of Jun 30, 2014

Class A Inception 05/07/2003
Performance Inception 09/07/2000
Expense Ratio4 1.07%


Contributors 

Factors contributing to the Fund’s relative performance compared to the Index during the quarter:

  • Off-Index exposure in a limited number of foreign loans, which outperformed the domestic loan market, was additive to relative results on the margin.
  • Insofar as sectors, an underweight to lodging & casinos, telecom and air transport – which together underperformed the Index at large – helped relative results on the margin.
  • Off-Index exposure to high-yield bonds, a strategic element of the Fund’s strategy, was additive to relative results, as bonds outperformed loans during the quarter.

Detractors 

Factors detracting from the Fund’s relative performance compared to the Index during the quarter:

  • While delivering lower overall credit risk compared to the Index, the Fund’s quality bias served as a detractor given the market’s appetite for more aggressive, lower-rated loans during the period.
  • Lack of exposure to defaulted EFH loans was the largest individual detractor, as the issuer’s loan continued to trade up following its bankruptcy filing.
  • Significant underweight to Index second-lien loans detracted, as these junior issues outperformed the traditional senior loans that compose the majority of the Index.
  • The principal sector-specific detractor was an underweight to utilities, driven by EFH, as discussed.

Investment Outlook And Fund Positioning 

We find that outperformance over the long term may often mean bouts of shorter-term underperformance, particularly during this stage in the credit cycle, as the aggressive loans that may likely be trouble in the future are still performing, with higher coupons, providing the Index and aggressively positioned managers a leg up, at least temporarily.

As a baseline, we believe there will be primarily income-driven returns ahead. We believe upside remains limited. The average price for the Index ended June at $99.01, with loans rated BB, B, CCC and D (default) at $99.95, $99.83, $97.70 and $76.67, respectively. These figures suggest the loan market is fairly fully priced.

We believe the market may remain range-bound in the second half, with upside potential only in distressed names and loans in default. As to the technical backdrop, retail flows appear to us to be a bit of a wild card, though CLO issuance appears poised to continue to track along with new issue supply. The forward calendar ended June at a postcredit crunch high of $43 billion, however we believe it remains in a digestible zone given the CLO issuance trends of late.

Likely buoying the market from a major upswing in defaults, we believe, are limited near-term maturities, ongoing cash-flow growth and relatively strong credit profiles. Still, while the credit outlook may be bright for now, the cycle will eventually turn — albeit likely not for a couple years — underscoring the importance of credit selection in the years ahead.

Credit Quality (%)10 as of Jun 30, 2014

AAA 0.00
AA 0.00
A 0.00
BBB 2.15
BB 42.05
B 46.93
CCC or Lower 4.66
Not Rated 4.21
Total 100.00
Ratings are based on Moody's, S&P or Fitch, as applicable. If securities are rated differently by the rating 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 rating 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 rating 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 invests in one or more affiliated investment companies (Portfolios). Unless otherwise noted, references to investments are to the aggregate holdings of the Portfolios. Top 10 Issuers and Sectors are shown as a percentage of Floating Rate Portfolio's total investments.

About Risk 

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. There can be no assurance that the liquidation of collateral securing an investment will satisfy the issuer's obligation in the event of nonpayment or that collateral can be readily liquidated. The ability to realize the benefits of any collateral may be delayed or limited. 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. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. As interest rates rise, the value of certain income investments is likely to decline. Bank loans are subject to prepayment risk. 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. 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. 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

No attribution information is available.

Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding. Fund invests in one or more affiliated investment companies (Portfolios). Unless otherwise noted, references to investments are to the aggregate holdings of the Portfolios. Top 10 Issuers and Sectors are shown as a percentage of Floating Rate Portfolio's total investments.

About Risk 

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. There can be no assurance that the liquidation of collateral securing an investment will satisfy the issuer's obligation in the event of nonpayment or that collateral can be readily liquidated. The ability to realize the benefits of any collateral may be delayed or limited. 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. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. As interest rates rise, the value of certain income investments is likely to decline. Bank loans are subject to prepayment risk. 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. 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. 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
Scott H. Page, CFA

Scott H. Page, CFA

Vice President, Eaton Vance Management
Joined Eaton Vance 1989

Scott Page is a vice president of Eaton Vance Management, director and portfolio manager with Eaton Vance’s Floating-Rate Loan Group.

Scott joined Eaton Vance in 1989 as an analyst with the group. He was promoted to lead the firm’s floating-rate loan practice in 1996. His previous experience includes an affiliation with the Dartmouth College Investment Office, as well as corporate finance/lending and credit review at Citicorp and Chase Manhattan Bank.

Scott earned a B.A. from Williams College in 1981 and an MBA from the Amos Tuck School at Dartmouth College in 1987. He is a CFA charterholder and has served as a member of the Board of Directors of the LSTA (Loan Syndications and Trading Association).

Scott's commentary has appeared in Bloomberg, Business Week, Dow Jones Investment Advisor, Forbes, Investor's Business Daily, Smart Money, Kiplinger's, USA Today, and The Wall Street Journal, and he has been featured on CNBC. He co-authored "An Overview of the Loan Market" in the Handbook of Loan Syndications and Trading (2007).

Education
  • B.A. Williams College
  • M.B.A. Amos Tuck School of Business Administration, Dartmouth College
Experience
  • Managed Fund since inception
Biography
Craig P. Russ

Craig P. Russ

Vice President, Eaton Vance Management
Joined Eaton Vance 1997

Craig Russ is a vice president of Eaton Vance Management, director of credit analysis and portfolio manager on Eaton Vance's bank loan team.

Craig joined Eaton Vance 1997 as an analyst and became co-manager of institutional bank loan funds in 2001. Prior to joining Eaton Vance, he worked for 10 years in commercial lending with State Street Bank.

Craig earned a B.A., cum laude, from Middlebury College in 1985 and studied at the London School of Economics and Political Science. He is chairman of the Loan Syndications and Trading Association (LSTA). His commentary has appeared in Bloomberg, Grant's Interest Rate Observer and The Wall Street Journal.

Education
  • B.A. Middlebury College
Experience
  • Managed Fund since 2007
Biography
Michael W. Weilheimer, CFA

Michael W. Weilheimer, CFA

Vice President, Eaton Vance Management
Joined Eaton Vance 1990

Mike Weilheimer is a vice president of Eaton Vance Management, director of high-yield investments and portfolio manager on Eaton Vance's high-yield team.

Prior to joining Eaton Vance in 1990, Mike worked from 1987-1990 as an analyst specializing in distressed debt securities at Cowen & Company and then later at Amroc Investments, L.P.

Mike earned a B.S. from the University at Albany, State University of New York in 1983 and an M.B.A. from the University of Chicago in 1987. He is a CFA charterholder and a member of the CFA Institute, The Boston Securities Analyst Society and the Dean's Advisory Board, School of Business, University at Albany, State University of New York. Mike is also a member of the Board of Trustees and treasurer, Gann Academy.

Mike's commentary has appeared in Barron's, The Wall Street Journal, Barron's Online, Reuters and USA Today.

Education
  • B.S. State University of New York at Albany
  • M.B.A. Booth School of Business, University of Chicago
Experience
  • Managed Fund since inception

Fund Literature

Fund Literature

Annual Report

Income, Volatility and Taxes Guide

Commentary

Discover Opportunities in the Income Markets with Eaton Vance

Income Markets Review

Income Markets Snapshot

Floating-Rate Loan Chart Book

Fact Sheet

Income: Looking beyond traditional sources of yield

Full Prospectus

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

SAI

EXCLUSIVE CONTENT

Who Says You Can't Increase Yield (EAFAX, EVFHX, EVBLX)

Think Performance Think Eaton Vance

Semi-Annual Report

Floating-Rate Loan Funds Monthly Review

Summary Prospectus

Investing in the Wake of the Great Moderation: Floating-Rate Loans as a Strategic Allocation

XBRL


 

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