Overview

Strong Morningstar Ratings as of 12/31/2016.2

Historical Returns (%)as of Dec 31, 2016

Annualized
1 Mo. 3 Mo. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
02/28/2017
Fund at NAV 2.48 4.56 3.33 11.21 5.99 9.04 5.84
Fund w/Max Sales Charge -3.44 -1.45 -2.58 4.76 3.91 7.76 5.22
S&P 500 Index3 3.97 8.04 5.94 24.98 10.62 14.00 7.61
Bloomberg Barclays U.S. Aggregate Bond Index4 0.67 1.01 0.87 1.42 2.64 2.23 4.28
60% S&P 500 / 40% Bloomberg Barclays U.S. Aggregate Bond Index 2.65 5.19 3.90 15.10 7.52 9.31 6.58
12/31/2016
Fund at NAV 1.19 -0.12 4.60 4.60 5.58 9.67 5.72
Fund w/Max Sales Charge -4.62 -5.90 -1.42 -1.42 3.50 8.39 5.10
S&P 500 Index3 1.98 3.82 11.96 11.96 8.86 14.64 6.94
Bloomberg Barclays U.S. Aggregate Bond Index4 0.14 -2.98 2.65 2.65 3.03 2.23 4.34
60% S&P 500 / 40% Bloomberg Barclays U.S. Aggregate Bond Index 1.24 1.10 8.31 8.31 6.66 9.69 6.21
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 or equal to one year is cumulative. Max Sales Charge: 5.75%.

Fund Factsas of Feb 28, 2017

Class A Inception 04/01/1932
Investment Objective Current income and long-term growth of capital
Total Net Assets $862.8M
Minimum Investment $1000
Expense Ratio (Gross)5 1.02%
Expense Ratio (Net)5,6 0.98%
CUSIP 277905865

Top 10 Holdings (%)7,8as of Dec 31, 2016

United States Treasury Note/Bond
Apple Inc
JPMorgan Chase & Co
United States Treasury Note/Bond
Wells Fargo & Co
United States Treasury Note/Bond
Johnson & Johnson
General Electric Co
Alphabet Inc - CL C
Pfizer Inc
Total 22.73

Morningstar™ Ratingsas of Feb 28, 2017

Time Period Rating Funds in
Allocation--50% to 70% Equity
Category
Overall **** 723
3 Years **** 723
5 Years **** 616
10 Years *** 429
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds and exchange-traded funds) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product 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.

The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Star ratings do not reflect the effect of any applicable sales load.

©2017 Morningstar. 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 are responsible for any damages or losses arising from any use of this information.

Portfolio Management

Charles Gaffney Managed Fund since 2009
Thomas H. Luster, CFA Managed Fund since 2010
Bernard Scozzafava, CFA Managed Fund since 2010

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 Fund, including its pro rata share of each Portfolio in which it invests.

About Risk 

Fund performance is sensitive to stock market volatility. 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. As interest rates rise, the value of certain income investments is likely to decline. 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 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. 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

Historical Returns (%)as of Dec 31, 2016

Annualized
1 Mo. 3 Mo. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
02/28/2017
Fund at NAV 2.48 4.56 3.33 11.21 5.99 9.04 5.84
Fund w/Max Sales Charge -3.44 -1.45 -2.58 4.76 3.91 7.76 5.22
S&P 500 Index3 3.97 8.04 5.94 24.98 10.62 14.00 7.61
Bloomberg Barclays U.S. Aggregate Bond Index4 0.67 1.01 0.87 1.42 2.64 2.23 4.28
60% S&P 500 / 40% Bloomberg Barclays U.S. Aggregate Bond Index 2.65 5.19 3.90 15.10 7.52 9.31 6.58
12/31/2016
Fund at NAV 1.19 -0.12 4.60 4.60 5.58 9.67 5.72
Fund w/Max Sales Charge -4.62 -5.90 -1.42 -1.42 3.50 8.39 5.10
S&P 500 Index3 1.98 3.82 11.96 11.96 8.86 14.64 6.94
Bloomberg Barclays U.S. Aggregate Bond Index4 0.14 -2.98 2.65 2.65 3.03 2.23 4.34
60% S&P 500 / 40% Bloomberg Barclays U.S. Aggregate Bond Index 1.24 1.10 8.31 8.31 6.66 9.69 6.21
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 or equal to one year is cumulative. Max Sales Charge: 5.75%.

Calendar Year Returns (%)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Fund at NAV 16.10 -30.27 22.99 8.92 1.31 11.50 20.96 9.62 2.65 4.60
S&P 500 Index3 5.49 -37.00 26.46 15.06 2.11 16.00 32.39 13.69 1.38 11.96
Bloomberg Barclays U.S. Aggregate Bond Index4 6.97 5.24 5.93 6.54 7.84 4.21 -2.02 5.97 0.55 2.65
60% S&P 500 / 40% Bloomberg Barclays U.S. Aggregate Bond Index 6.22 -22.06 18.40 12.13 4.69 11.31 17.56 10.62 1.28 8.31

Fund Facts

Expense Ratio (Gross)5 1.02%
Expense Ratio (Net)5,6 0.98%
Class A Inception 04/01/1932
Distribution Frequency Quarterly

Yield Information9as of Feb 28, 2017

Distribution Rate at NAV 1.30%
SEC 30-day Yield 1.21%

Risk Measures (3 Year)10as of Feb 28, 2017

Alpha (%) -0.07
Beta 0.57
R-Squared (%) 88.15
Standard Deviation (%) 6.33
Sharpe Ratio 0.92

Morningstar™ Ratingsas of Feb 28, 2017

Time Period Rating Funds in
Allocation--50% to 70% Equity
Category
Overall **** 723
3 Years **** 723
5 Years **** 616
10 Years *** 429
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds and exchange-traded funds) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product 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.

The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Star ratings do not reflect the effect of any applicable sales load.

©2017 Morningstar. 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 are responsible for any damages or losses arising from any use of this information.

NAV History

Date NAV NAV Change
Mar 29, 2017 $8.65 $0.02
Mar 28, 2017 $8.63 $0.03
Mar 27, 2017 $8.60 $0.00
Mar 24, 2017 $8.60 -$0.01
Mar 23, 2017 $8.61 -$0.01
Mar 22, 2017 $8.62 $0.01
Mar 21, 2017 $8.61 -$0.05
Mar 20, 2017 $8.66 -$0.01
Mar 17, 2017 $8.67 $0.01
Mar 16, 2017 $8.66 -$0.01

Distribution History11

Ex-Date Distribution Reinvest NAV
Mar 09, 2017 $0.03520 $8.59
Dec 13, 2016 $0.02820 $8.47
Sep 09, 2016 $0.02860 $8.39
Jun 09, 2016 $0.03030 $8.39
Mar 09, 2016 $0.03590 $8.06
Dec 15, 2015 $0.02580 $8.16
Sep 09, 2015 $0.02980 $8.15
Jun 09, 2015 $0.03800 $8.41
Mar 10, 2015 $0.02280 $8.55
Dec 16, 2014 $0.02460 $8.23
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 History11

Ex-Date Short-Term Long-Term Reinvest NAV
Dec 13, 2016 $0.03160 $8.47
Dec 15, 2015 $0.03400 $0.09880 $8.16
May 21, 2015 $0.12200 $0.12620 $8.58
Dec 16, 2014 $0.04960 $0.47550 $8.23
Sep 09, 2014 $0.04990 $0.10770 $8.90
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 invests in one or more affiliated investment companies (Portfolios). Unless otherwise noted, references to investments are to the aggregate holdings of the Fund, including its pro rata share of each Portfolio in which it invests.

About Risk 

Fund performance is sensitive to stock market volatility. 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. As interest rates rise, the value of certain income investments is likely to decline. 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 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. 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 (%)8as of Dec 31, 2016

Stocks 60.32
U.S. Common Stocks 57.42
Foreign Common Stocks 2.90
Fixed Income 37.55
Investment Grade Corporate Bonds 11.58
U.S. Treasuries 10.40
Mortgage Backed Securities 10.28
Asset Backed Securities 2.79
U.S. Commercial Mortgage Backed Securities 2.51
Other 1.26
Cash 0.87
Total 100.00

Portfolio Statisticsas of Dec 31, 2016

Average Market Cap $150.2B
Price/Earnings Ratio 16.70
Price/Book 2.80
Average Coupon 3.37%
Average Maturity 7.51 yrs.
Average Duration 5.81 yrs.

GICS Sector Breakdown (%)12as of Dec 31, 2016

Sector Fund S&P 500 Index3
Consumer Discretionary 11.93 12.03
Consumer Staples 9.31 9.37
Energy 7.57 7.56
Financials 14.71 14.81
Health Care 13.57 13.63
Industrials 10.14 10.27
Information Technology 20.66 20.77
Materials 2.84 2.84
Real Estate 2.88 2.89
Telecom Services 2.64 2.66
Utilities 3.08 3.17
Cash 0.66 0.00

Credit Quality (%)13as of Dec 31, 2016

AAA 62.91
AA 2.63
A 13.40
BBB 17.81
BB 2.68
B 0.00
CCC or Lower 0.00
Not Rated 0.57
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.

Fund Holdings8,14as of Jan 31, 2017

Holding Coupon Rate Maturity Date % of Net Assets
United States Treasury Note/Bond 2.63% 08/15/2020 4.48%
Apple Inc 0.00% 2.64%
United States Treasury Note/Bond 3.88% 08/15/2040 2.18%
JPMorgan Chase & Co 0.00% 2.17%
Wells Fargo & Co 0.00% 2.05%
Johnson & Johnson 0.00% 1.86%
Alphabet Inc - CL C 0.00% 1.82%
Pfizer Inc 0.00% 1.64%
United States Treasury Note/Bond 1.50% 05/31/2019 1.57%
United Technologies Corp 0.00% 1.48%
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 Fund, including its pro rata share of each Portfolio in which it invests.

About Risk 

Fund performance is sensitive to stock market volatility. 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. As interest rates rise, the value of certain income investments is likely to decline. 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 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. 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

Commentary

A Word On The Markets as of Dec 31, 2016

Global stock markets delivered mixed performance in the fourth quarter of 2016. While U.S stocks rose sharply following the U.S. presidential election to finish the period with solid gains, major international markets recorded more subdued or negative returns.

Stocks opened the period on the downside amid retreating oil prices, uncertainty about the U.S. presidential election and fears of a possible interest rate increase by the U.S. Federal Reserve (the Fed). Donald Trump's victory in the U.S. presidential election marked a turning point for U.S. stocks, which soared following the November 8 election. The rally continued into December before stalling in the final weeks of the period.

The broad-based "Trump Bump" particularly favored financial stocks, which received another boost in mid-December when the Fed raised its benchmark interest rate. The Fed move came in response to continued improvement in the nation's economy, which helped boost stocks in the three-month period. Positive reports during the period included higher consumer spending, declining unemployment and stronger U.S. exports.

For the three-month period, the Dow Jones Industrial Average15 recorded an 8.66% gain, while the broader S&P 500 Index3 rose 3.82%. The technology-laden NASDAQ Index16 added 1.34%. Globally, the MSCI EAFE Index17 fell 0.71% in the quarter. Small-cap stocks outperformed their large-cap counterparts during the quarter. In terms of investing style, value stocks topped growth stocks in both the large-cap and small-cap categories.

Performance Summary 

Eaton Vance Balanced Fund (the Fund) returned -0.18% for Class I shares at net asset value for the quarter ended December 31, 2016. In comparison, the S&P 500 Index3 returned 3.82%, while the Bloomberg Barclays U.S. Aggregate Bond Index4 returned -2.98%.

  • Both the equity and fixed income portions of the Fund underperformed their benchmarks during the quarter.
  • Within the equity sleeve, the underperformance (relative to the S&P 500 Index) was due primarily to negative stock selection. Unfavorable stock selection in information technology, consumer discretionary and financials had a negative impact on relative performance for the quarter.
  • The Core Bond portfolio slightly trailed the Bloomberg Barclays U.S. Aggregate Bond Index. Sector allocation positively contributed while security selection detracted from performance during the quarter.

Historical Returns (%)as of Dec 31, 2016

Annualized
1 Mo. 3 Mo. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
Fund at NAV 1.19 -0.12 4.60 4.60 5.58 9.67 5.72
Fund w/Max Sales Charge -4.62 -5.90 -1.42 -1.42 3.50 8.39 5.10
S&P 500 Index3 1.98 3.82 11.96 11.96 8.86 14.64 6.94
Bloomberg Barclays U.S. Aggregate Bond Index4 0.14 -2.98 2.65 2.65 3.03 2.23 4.34
60% S&P 500 / 40% Bloomberg Barclays U.S. Aggregate Bond Index 1.24 1.10 8.31 8.31 6.66 9.69 6.21
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 or equal to one year is cumulative. Max Sales Charge: 5.75%.

Fund Factsas of Dec 31, 2016

Class A Inception 04/01/1932
Expense Ratio (Gross)5 1.02%
Expense Ratio (Net)5,6 0.98%

Contributors 

Equity Portfolio (relative to S&P 500 Index):

  • Of the 11 economic sectors in the Index, eight posted positive returns for the quarter. The Fund's stock portfolio had positive returns in six sectors.
  • At the individual stock level, the top three contributors to relative performance were financial companies. After the election of Donald Trump, the prospect of higher net interest margins and less industry regulation increased. As a result, top contributors JPMorgan, American Financial Group, and US Bancorp shares jumped following the announcement of the election results.
  • Fixed Income Portfolio (relative to Bloomberg Barclays U.S. Aggregate Bond Index):
  • Earlier in the year, management increased the Fund's exposure to corporate bonds, which had weakened on global economic growth concerns. The portfolio benefited from that overweight position as the sector recovered, and it was also helped by an overweight to commercial mortgage backed securities (CMBS). An underweight to U.S. Treasury notes also positively contributed to performance, as the sector lagged.
  • The Fund's allocation to high yield corporate bonds also contributed to performance, given management's focus on higher-quality issuers with improving credit profiles.

Detractors 

Equity Portfolio (relative to S&P 500 Index):

  • Unfavorable stock selection in information technology, consumer discretionary and financials had a negative impact on relative Fund performance for the quarter.
  • At the individual stock level, Zimmer Biomet Holdings and Newell Brands came under pressure for the period. After reporting a third quarter miss for expected revenues and announcing supply chain issues during the Biomet integration, the share price for Zimmer Biomet Holdings sank. Meanwhile for Newell, there was a rotation out of a high multiple consumer staples sector and into more cyclical and cheaper parts of the market. Beyond this shift, market participants recognized they wouldn't benefit as much from the new administration's agendas or the strong U.S. dollar.
  • Fixed Income Portfolio (relative to Bloomberg Barclays U.S. Aggregate Bond Index):
  • Interest rate management slightly detracted from performance as management's preference for 10 year maturity corporate bonds and TIPS resulted in an overweight to intermediate rates, which lagged during the period.
  • Security selection, most notably in the pharmaceutical space, also detracted from the Fund's results in the quarter.

Investment Outlook And Fund Positioning 

Much of investors' attention will be directed at how effective the president-elect is in executing on his agenda. It appears that his first order of business is to repeal the Affordable Care Act. This will likely be followed by targeted cuts in regulation for certain industries as well as a restructuring of corporate taxes.

Third quarter earnings reports (announced in Q4) illustrated that the market emerged from an EPS recession. Investors will be keeping a close eye on cyclical forces such as the U.S. dollar and the price of oil. In recent years, both have been volatile and have produced headwinds for profits.

Another observation worth noting is that the environment for stock pickers is improving. Two cyclical forces that have challenged active equity managers over the past decade have been the high level of stock correlations and their below-average return dispersions. If stocks are moving together in unison, the talent of the manager is muted. However, pairwise correlations have now fallen to some of their lowest levels in a decade and return dispersions have risen to their long-term average.

Top 10 Holdings (%)7,8as of Dec 31, 2016

United States Treasury Note/Bond 4.79
Apple Inc 2.55
JPMorgan Chase & Co 2.21
United States Treasury Note/Bond 2.02
Wells Fargo & Co 2.00
United States Treasury Note/Bond 1.93
Johnson & Johnson 1.89
General Electric Co 1.84
Alphabet Inc - CL C 1.82
Pfizer Inc 1.68
Total 22.73

Credit Quality (%)13as of Dec 31, 2016

AAA 62.91
AA 2.63
A 13.40
BBB 17.81
BB 2.68
B 0.00
CCC or Lower 0.00
Not Rated 0.57
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 invests in one or more affiliated investment companies (Portfolios). Unless otherwise noted, references to investments are to the aggregate holdings of the Fund, including its pro rata share of each Portfolio in which it invests.

About Risk 

Fund performance is sensitive to stock market volatility. 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. As interest rates rise, the value of certain income investments is likely to decline. 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 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. 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 currently 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 Fund, including its pro rata share of each Portfolio in which it invests.

About Risk 

Fund performance is sensitive to stock market volatility. 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. As interest rates rise, the value of certain income investments is likely to decline. 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 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. 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
Charles Gaffney

Charles Gaffney

Vice President, Eaton Vance Management
Joined Eaton Vance 2003

Charles Gaffney is a vice president of Eaton Vance Management and portfolio manager on Eaton Vance’s global core team. He is responsible for buy and sell decisions, portfolio construction and risk management for a number of the firm’s global core equity strategies. He is a member of the firm’s Equity Strategy Committee. He joined Eaton Vance in 2003.

Charlie began his career in the investment management industry in 1996. Before joining Eaton Vance, he was affiliated with Brown Brothers Harriman as a sector portfolio manager and Morgan Stanley Dean Witter as a senior equity analyst.

Charlie earned a B.A. from Bowdoin College in 1995 and an MBA from Fordham University in 2002.

Education
  • B.A. Bowdoin College
  • M.B.A. Graduate School of Business, Fordham University

Experience
  • Managed Fund since 2009

Biography
Thomas H. Luster, CFA

Thomas H. Luster, CFA

Vice President, Eaton Vance Management
Joined Eaton Vance 1995

Thomas Luster is a vice president of Eaton Vance Management, co-director of diversified fixed income and lead portfolio manager on Eaton Vance’s diversified fixed-income team. He is responsible for buy and sell decisions, portfolio construction and risk management for the firm’s diversified fixed-income strategies. He began his career in the investment management industry with Eaton Vance in 1995.

Before entering the investment management industry, Tom was affiliated with Deloitte & Touche Consulting and the Naval Center for Space Technology.

Tom earned a B.S. from George Washington University and an MBA from the University of Chicago. Tom is a member of the Boston Security Analysts Society and was formerly chairman and a governor’s appointee to the board of trustees of Health Care Security, which oversees the investment of Tobacco Litigation Settlement funds for the Commonwealth of Massachusetts. He is a CFA charterholder.

Tom’s commentary has appeared in The Wall Street Journal, Reuters, Investor’s Business Daily and American Banker, and he has been featured on New England Cable News and Bloomberg Radio.

Education
  • B.S. George Washington University
  • M.B.A. Booth School of Business, University of Chicago

Experience
  • Managed Fund since 2010

Biography
Bernard Scozzafava, CFA

Bernard Scozzafava, CFA

Vice President, Eaton Vance Management
Joined Eaton Vance 2006

Bernard Scozzafava is a vice president of Eaton Vance Management, director of diversified fixed-income quantitative research and portfolio manager on Eaton Vance’s diversified fixed-income team. He is responsible for buy and sell decisions, portfolio construction and risk management for the firm’s core fixed-income portfolios. He joined Eaton Vance in 2006.

Bernie began his career in the investment management industry in 1984. Before joining Eaton Vance, he was a portfolio manager and credit analyst with MFS Investment Management.

Bernie earned a B.A. from Hamilton College and an M.S. from the MIT Sloan School of Management. He is a member of the Boston Security Analysts Society and is a CFA charterholder.

Education
  • B.S. Hamilton College
  • M.S. Sloan School of Management, Massachusetts Institute of Technology

Experience
  • Managed Fund since 2010

Other funds managed
 

Literature

Literature

Fact Sheet

Download - Last updated: Dec 31, 2016

Commentary

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Brochure

Download - Last updated: Dec 31, 2016

Annual Report

Download - Last updated: Dec 31, 2016

Full Prospectus

Download - Last updated: May 1, 2016

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

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SAI

Download - Last updated: May 1, 2016

EXCLUSIVE CONTENT

Sometimes the simplest tools are the most effective

Download - Last updated: Dec 31, 2016

Performance Always Matters

Download - Last updated: Dec 31, 2016

Semi-Annual Report

Download - Last updated: Jun 30, 2016

Summary Prospectus

Download - Last updated: May 1, 2016

XBRL

Download - Last updated: May 12, 2016