Overview

 

Attractive risk-adjusted returns since manager inception (as measured by Sharpe ratio).1

On 7/1/2009 a new team with years of prior experience was put in place to manage the Fund with a focus on investing in asset classes believed to offer attractive risk-adjusted returns.

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

1 Month 3 Months YTD 1 Year 3 Years 5 Years Life of Fund
Fund at NAV 0.14 0.42 0.42 -1.37 0.40 6.62 3.39
Fund w/Max Sales Charge -4.66 -4.39 -4.39 -6.03 -1.21 5.59 2.85
BofA Merrill Lynch 3-Month U.S. Treasury Bill Index2 0.00 0.01 0.01 0.07 0.08 0.12 1.68
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. Prior to 7/1/09, the Fund had a predetermined fixed allocation approach investing equally among portfolios investing in mortgage-backed securities, senior floating-rate loans and high-yield bonds. The Fund has changed its objectives and investment strategies to permit investment in multiple Eaton Vance Portfolios and Funds. Max Sales Charge: 4.75%.

Fund Facts as of Mar 31, 2014

Class A Inception 12/07/2004
Investment Objective Total return
Total Net Assets $283.1M
Minimum Investment $1000
Expense Ratio (Gross)3 1.33%
Expense Ratio (Net)4 1.25%
CUSIP 277923504


Portfolio Management

Dan R. Strelow, CFA Managed Fund since 2009
Justin H. Bourgette, CFA Managed Fund since 2011
Thomas A. Shively Managed Fund since 2011

 

Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding. Fund primarily invests in one or more affiliated investment companies (Portfolios) and may also invest directly. Unless otherwise noted, references to investments are to the aggregate holdings of the Fund, including its pro rata share of each Portfolio or Fund in which it invests.

About Risk 

While the Fund has a targeted annual performance volatility range, its actual, or realized, volatility for longer or shorter periods may be materially higher or lower than the target range depending on market conditions. 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 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. Fund share values are sensitive to stock market volatility. Derivatives 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 effectiveness of the Fund's option strategy is dependent upon a general imbalance of natural buyers over natural sellers of index options. This imbalance could decrease or be eliminated, which could have an adverse effect on the Fund. 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. Investing in an exchange traded fund (ETF) exposes the Fund to all of the risks of that ETF and, in general, subjects the Fund to a pro rata portion of the Fund's fees and expenses. Investing in exchange traded notes (ETNs) exposes the Fund to the performance of the issuer. The Fund's investments may lose their entire value if the issuer fails. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of non–payment 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. Securities with longer durations tend to be more sensitive to interest rate changes than securities with shorter durations. A portfolio with negative duration generally incurs a loss when interest rates and yields fall. As interest rates rise, the value of certain income investments is likely to decline. Short sales risk includes, among other things, the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale may fail to honor its contract, causing a loss to the fund. 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 Mar 31, 2014

1 Month 3 Months YTD 1 Year 3 Years 5 Years Life of Fund
Fund at NAV 0.14 0.42 0.42 -1.37 0.40 6.62 3.39
Fund w/Max Sales Charge -4.66 -4.39 -4.39 -6.03 -1.21 5.59 2.85
BofA Merrill Lynch 3-Month U.S. Treasury Bill Index2 0.00 0.01 0.01 0.07 0.08 0.12 1.68
Morningstar™ Nontraditional Bond Category5 0.36 1.10 1.10 0.34 2.45 6.85
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. Prior to 7/1/09, the Fund had a predetermined fixed allocation approach investing equally among portfolios investing in mortgage-backed securities, senior floating-rate loans and high-yield bonds. The Fund has changed its objectives and investment strategies to permit investment in multiple Eaton Vance Portfolios and Funds. Max Sales Charge: 4.75%.

Calendar Year Returns (%)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Fund at NAV 3.78 7.05 3.80 -19.40 33.14 7.25 0.67 2.33 -1.21
BofA Merrill Lynch 3-Month U.S. Treasury Bill Index2 1.33 3.06 4.83 5.03 2.06 0.21 0.13 0.10 0.11 0.07

Fund Facts

Expense Ratio (Gross)3 1.33%
Expense Ratio (Net)4 1.25%
Class A Inception 12/07/2004
Distribution Frequency Monthly


Morningstar™ Ratings as of Mar 31, 2014

Time Period Rating Rating (Load Waived) Funds in
Nontraditional Bond
Category
Overall * ** 150
3 Years * ** 150
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.

© 2013 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
Apr 16, 2014 $8.74 $0.00
Apr 15, 2014 $8.74 $0.00
Apr 14, 2014 $8.74 $0.00
Apr 11, 2014 $8.74 $0.00
Apr 10, 2014 $8.74 $0.00
Apr 09, 2014 $8.74 $0.01
Apr 08, 2014 $8.73 $0.00
Apr 07, 2014 $8.73 $0.00
Apr 04, 2014 $8.73 $0.01
Apr 03, 2014 $8.72 $0.00

Distribution History6

Ex-Date Distribution Reinvest NAV
Mar 28, 2014 $0.02260 $8.72
Feb 27, 2014 $0.01780 $8.73
Jan 30, 2014 $0.01620 $8.73
Dec 30, 2013 $0.02110 $8.74
Nov 27, 2013 $0.01570 $8.75
Oct 30, 2013 $0.01580 $8.77
Sep 27, 2013 $0.01850 $8.76
Aug 29, 2013 $0.01930 $8.74
Jul 30, 2013 $0.01480 $8.82
Jun 27, 2013 $0.01770 $8.82
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 History6

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 primarily invests in one or more affiliated investment companies (Portfolios) and may also invest directly. Unless otherwise noted, references to investments are to the aggregate holdings of the Fund, including its pro rata share of each Portfolio or Fund in which it invests.

About Risk 

While the Fund has a targeted annual performance volatility range, its actual, or realized, volatility for longer or shorter periods may be materially higher or lower than the target range depending on market conditions. 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 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. Fund share values are sensitive to stock market volatility. Derivatives 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 effectiveness of the Fund's option strategy is dependent upon a general imbalance of natural buyers over natural sellers of index options. This imbalance could decrease or be eliminated, which could have an adverse effect on the Fund. 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. Investing in an exchange traded fund (ETF) exposes the Fund to all of the risks of that ETF and, in general, subjects the Fund to a pro rata portion of the Fund's fees and expenses. Investing in exchange traded notes (ETNs) exposes the Fund to the performance of the issuer. The Fund's investments may lose their entire value if the issuer fails. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of non–payment 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. Securities with longer durations tend to be more sensitive to interest rate changes than securities with shorter durations. A portfolio with negative duration generally incurs a loss when interest rates and yields fall. As interest rates rise, the value of certain income investments is likely to decline. Short sales risk includes, among other things, the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale may fail to honor its contract, causing a loss to the fund. 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

Fund Weightings (%)7 as of Mar 31, 2014

Absolute Return Strategies 41.43
Global Macro Absolute Return Advantage Portfolio 14.91
Parametric Absolute Return Strategy 5.06
Parametric Market Neutral Portfolio 21.46
Income Strategies 52.23
CMBS Portfolio 16.19
Floating Rate Portfolio 23.66
Government Obligations Portfolio 7.43
Short-Term U.S. Government Portfolio 4.95
Other 18.52
Euro Futures -0.97
Equity Swaps and Options8 3.69
U.S. Treasury Futures8 15.80
Cash & Equivalents 10.46

Portfolio Statistics as of Mar 31, 2014

Average Weighted Duration 1.47 yrs.


Credit Quality (%)9 as of Mar 31, 2014

AAA 49.10
AA 3.99
A 4.44
BBB 4.90
BB 17.85
B 16.96
CCC or Lower 0.40
Not Rated 2.37
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's 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.

Portfolio Allocations (%)10,11 as of Mar 31, 2014

Floating Rate Portfolio 23.66
MSAR Completion Portfolio 22.30
Parametric Market Neutral Portfolio 21.46
Global Macro Absolute Return Advantage Portfolio 14.91
Government Obligations Portfolio 7.43
CMBS Portfolio 5.28
Short-Term U.S. Government Portfolio 4.95


 

Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding. Fund primarily invests in one or more affiliated investment companies (Portfolios) and may also invest directly. Unless otherwise noted, references to investments are to the aggregate holdings of the Fund, including its pro rata share of each Portfolio or Fund in which it invests.

About Risk 

While the Fund has a targeted annual performance volatility range, its actual, or realized, volatility for longer or shorter periods may be materially higher or lower than the target range depending on market conditions. 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 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. Fund share values are sensitive to stock market volatility. Derivatives 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 effectiveness of the Fund's option strategy is dependent upon a general imbalance of natural buyers over natural sellers of index options. This imbalance could decrease or be eliminated, which could have an adverse effect on the Fund. 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. Investing in an exchange traded fund (ETF) exposes the Fund to all of the risks of that ETF and, in general, subjects the Fund to a pro rata portion of the Fund's fees and expenses. Investing in exchange traded notes (ETNs) exposes the Fund to the performance of the issuer. The Fund's investments may lose their entire value if the issuer fails. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of non–payment 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. Securities with longer durations tend to be more sensitive to interest rate changes than securities with shorter durations. A portfolio with negative duration generally incurs a loss when interest rates and yields fall. As interest rates rise, the value of certain income investments is likely to decline. Short sales risk includes, among other things, the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale may fail to honor its contract, causing a loss to the fund. 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 Mar 31, 2014

During the first quarter, the world's stock markets delivered uneven performance, but rose 1.08% overall, as measured by the MSCI All Country World Index.12 The S&P 500 Index13 managed a 1.81% gain, despite signs of slowing U.S. economic growth, the withdrawal of Federal Reserve (Fed) stimulus and rich valuations following last year's rally. Events in emerging markets also weighed on U.S. equities. Economic data coming out of China was soft, and political turmoil erupted in Ukraine, Venezuela, Brazil and elsewhere.

The geopolitical tensions and concerns about global growth contributed to a 1.84% gain in the Barclays U.S. Aggregate Index.14 Credit outperformed Treasurys, as investors continued to pursue income in the low rate environment. Longer-maturity securities outpaced shorter issues, as shorter rates rose slightly and longer rates fell, resulting in a flattening of the yield curve.15 Emerging-market currencies were mixed relative to the U.S. dollar. Following a broad sell-off in January, they regained their footing to varying degrees as the period progressed.

Weaker consumer spending related to severe winter weather was partly to blame for the U.S. economy's loss of momentum. However, data was also soft in other areas less affected by weather, such as capital spending and trade. Signs of sluggish growth did not deter the Fed from continuing to taper its bond-buying program. At each of its two policy meetings during the quarter, the central bank trimmed its monthly bond purchases by $10 billion. The Fed held short-term interest rates near zero, but said that it would base future rate decisions on a broad range of indicators. This clouded the outlook for monetary policy, as previous guidance had referenced 6.5% unemployment as the central bank's threshold for considering rate hikes.

Performance Summary 

Eaton Vance Multi Strategy Absolute Return Fund (the Fund) outperformed its benchmark, the BofA Merrill Lynch 3 Month U.S. Treasury Bill Index (the Index),2 at net asset value during the quarter.

  • The Fund's allocation to income strategies benefited results, with investments in higher-yielding segments of the credit markets adding the most to return. In total, absolute return strategies also made a positive contribution to Fund performance.
  • The Fund's duration16 positioning favorably impacted results given the decline in longer-term bond yields during the period. At quarter-end, portfolio average duration was 1.47 years.
  • Management continued to target the Fund’s volatility to be near the low end of its 2% to 6.5% range throughout the first quarter.

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

1 Month 3 Months YTD 1 Year 3 Years 5 Years Life of Fund
Fund at NAV 0.14 0.42 0.42 -1.37 0.40 6.62 3.39
Fund w/Max Sales Charge -4.66 -4.39 -4.39 -6.03 -1.21 5.59 2.85
BofA Merrill Lynch 3-Month U.S. Treasury Bill Index2 0.00 0.01 0.01 0.07 0.08 0.12 1.68
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. Prior to 7/1/09, the Fund had a predetermined fixed allocation approach investing equally among portfolios investing in mortgage-backed securities, senior floating-rate loans and high-yield bonds. The Fund has changed its objectives and investment strategies to permit investment in multiple Eaton Vance Portfolios and Funds. Max Sales Charge: 4.75%.

Fund Facts as of Mar 31, 2014

Class A Inception 12/07/2004
Expense Ratio (Gross)3 1.33%
Expense Ratio (Net)4 1.25%


Contributors 

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

  • Long positions in high-yield bonds within MSAR Completion Portfolio and exposure to floating-rate loans via Floating-Rate Portfolio significantly boosted results. These high-yielding securities benefited from strong demand for income.
  • With the decline in longer-term interest rates during the quarter, long positions in Treasury futures within MSAR Completion Portfolio were helpful, as was exposure to seasoned mortgage-backed securities (MBS). The Fund's MBS exposure also benefited from a modest narrowing in MBS yields versus Treasury yields. For the quarter, MBS spreads – the yield advantage MBS have over Treasurys – tightened.
  • The option absolute return strategy employed within MSAR Completion Portfolio boosted results. This strategy generally adds value when the S&P 500 Index trades in a relatively narrow range, which it did this quarter.

Detractors 

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

  • The Fund's volatility hedge negatively impacted results. Volatility was relatively subdued throughout the period except for a brief spike in late January and early February.
  • While overall results from Parametric Market Neutral Portfolio were positive, its hedged U.S. equity and hedged commodity sleeves were a drag on Fund performance.

Investment Outlook And Fund Positioning 

The U.S. economy has faced several recent headwinds — higher taxes, lower unemployment benefits, bad weather — and should improve somewhat going forward. However, this already seems heavily discounted in risky asset prices, such as high-yield bonds, which have been driven by the Fed's easy policies rather than economic fundamentals. Based on our metrics, investors cannot expect much in incremental return for taking on incremental risk at his point; hence, we continue to target low portfolio volatility.

We have felt that risky assets, such as high-yield bonds were fully valued for some time. It is possible that some improvement in growth, combined with a diminished Fed role, will begin a return to markets driven more by fundamentals and less by policy. We believe the Fund is positioned appropriately for what may be a difficult transition.

 

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 one or more affiliated investment companies (Portfolios) and may also invest directly. Unless otherwise noted, references to investments are to the aggregate holdings of the Fund, including its pro rata share of each Portfolio or Fund in which it invests.

About Risk 

While the Fund has a targeted annual performance volatility range, its actual, or realized, volatility for longer or shorter periods may be materially higher or lower than the target range depending on market conditions. 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 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. Fund share values are sensitive to stock market volatility. Derivatives 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 effectiveness of the Fund's option strategy is dependent upon a general imbalance of natural buyers over natural sellers of index options. This imbalance could decrease or be eliminated, which could have an adverse effect on the Fund. 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. Investing in an exchange traded fund (ETF) exposes the Fund to all of the risks of that ETF and, in general, subjects the Fund to a pro rata portion of the Fund's fees and expenses. Investing in exchange traded notes (ETNs) exposes the Fund to the performance of the issuer. The Fund's investments may lose their entire value if the issuer fails. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of non–payment 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. Securities with longer durations tend to be more sensitive to interest rate changes than securities with shorter durations. A portfolio with negative duration generally incurs a loss when interest rates and yields fall. As interest rates rise, the value of certain income investments is likely to decline. Short sales risk includes, among other things, the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale may fail to honor its contract, causing a loss to the fund. 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 one or more affiliated investment companies (Portfolios) and may also invest directly. Unless otherwise noted, references to investments are to the aggregate holdings of the Fund, including its pro rata share of each Portfolio or Fund in which it invests.

About Risk 

While the Fund has a targeted annual performance volatility range, its actual, or realized, volatility for longer or shorter periods may be materially higher or lower than the target range depending on market conditions. 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 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. Fund share values are sensitive to stock market volatility. Derivatives 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 effectiveness of the Fund's option strategy is dependent upon a general imbalance of natural buyers over natural sellers of index options. This imbalance could decrease or be eliminated, which could have an adverse effect on the Fund. 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. Investing in an exchange traded fund (ETF) exposes the Fund to all of the risks of that ETF and, in general, subjects the Fund to a pro rata portion of the Fund's fees and expenses. Investing in exchange traded notes (ETNs) exposes the Fund to the performance of the issuer. The Fund's investments may lose their entire value if the issuer fails. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of non–payment 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. Securities with longer durations tend to be more sensitive to interest rate changes than securities with shorter durations. A portfolio with negative duration generally incurs a loss when interest rates and yields fall. As interest rates rise, the value of certain income investments is likely to decline. Short sales risk includes, among other things, the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale may fail to honor its contract, causing a loss to the fund. 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
Dan R. Strelow, CFA

Dan R. Strelow, CFA

Vice President, Eaton Vance Management
Joined Eaton Vance 2005

Dan Strelow is a vice president of Eaton Vance Management, co-director of Customized Solutions and portfolio manager on Eaton Vance's customized solutions team.

Dan joined Eaton Vance in June 2005. Previously, beginning in 1988, he was affiliated with State Street Research and Management as managing director, CIO fixed income and fixed income portfolio manager. From 1981-1988, Dan was affiliated with First Chicago Investment Advisors in various capacities, including analyst, portfolio manager and vice president.

Dan earned a B.A. in economics from Pacific Lutheran University and an M.B.A. in finance from the University of Chicago. He is a CFA charterholder and has published various white papers including "Pension Management In A World of Balance" (October 2005), "Solving the Pension Management Riddle" (December 2006), "The Slow March to LDI" (July 2007) and "LDI: More Than Duration-Matching" (Institutional Investor Magazine 2008).

Education
  • B.A. Pacific Lutheran University
  • M.B.A Booth School of Business, University of Chicago
Experience
  • Managed Fund since 2009
Other funds managed
 
Biography
Justin H. Bourgette, CFA

Justin H. Bourgette, CFA

Vice President, Eaton Vance Management
Joined Eaton Vance 2006

Justin Bourgette is a vice president of Eaton Vance Management and portfolio manager on Eaton Vance's customized solutions team.

Justin joined Eaton Vance in 2006. Previously, he was affiliated with Investors Financial Services as an analyst in corporate finance and with National Grid, where he worked in business planning and engineering.

Justin earned a B.S. in electrical engineering from Worcester Polytechnic Institute and an M.S. in investment management, with High Honors, from Boston University. He is a CFA charterholder and a member of Eaton Vance's Asset Allocation Committee.

Education
  • B.S. Worcester Polytechnic Institute
  • M.S. Investment Management, Boston University
Experience
  • Managed Fund since 2011
Other funds managed
 
Biography
Thomas A. Shively

Thomas A. Shively

Vice President, Eaton Vance Management
Joined Eaton Vance 2011

Thomas Shively is a vice president of Eaton Vance Management and portfolio manager on Eaton Vance's customized solutions team.

Tom joined Eaton Vance in 2011 and had previously been affiliated with the Customized Solutions Group from 2005-2007 as a part-time consultant. Prior experience includes positions with Brandeis University as an adjunct professor of finance, fixed-income portfolio manager and fixed-income chief investment officer with State Street Research and Management, and affiliations with Paine Webber Jackson Curtis and First Chicago Investment Advisors.

Tom earned an A.B. in economics, cum laude, from Kenyon College and an M.B.A. in finance from the University of Chicago Graduate School of Business.

Education
  • A.B. Kenyon College
  • M.B.A. Booth School of Business, University of Chicago
Experience
  • Managed Fund since 2011
Other funds managed
 

Fund Literature

Fund Literature

Report of Organizational Actions Affecting Basis of Securities

Annual Report

Attribution

Commentary

Fact Sheet

Full Prospectus

MSAR Completion Portfolio Holdings

Short Term US Gov't Portfolio Holdings

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

SAI

Think Performance Think Eaton Vance

EXCLUSIVE CONTENT

Volatility Drag Got You Down? (EADDX).pdf

Semi-Annual Report

Summary Prospectus

XBRL


 

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