Overview

Relative to traditional markets, historically this fund has had: lower volatility, limited drawdown and lower beta.1

As of 12/31/2016

  • Class A at NAV
  • S&P 500 Index
  • Bloomberg Barclays U.S. Aggregate Bond Index
  • BofA Merrill Lynch U.S. High Yield Index

Historical Returns (%)as of Dec 31, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
01/31/2017
Fund at NAV 0.30 0.12 0.30 6.88 4.84 2.77 2.43
Fund w/Max Sales Charge -0.70 -0.87 -0.70 5.88 4.84 2.77 2.43
BofA Merrill Lynch 3-Month U.S. Treasury Bill Index2 0.04 0.10 0.04 0.37 0.15 0.13 0.12
12/31/2016
Fund at NAV 1.24 -0.08 4.87 4.87 4.40 3.40 2.41
Fund w/Max Sales Charge 0.24 -1.07 3.87 3.87 4.40 3.40 2.41
BofA Merrill Lynch 3-Month U.S. Treasury Bill Index2 0.04 0.09 0.33 0.33 0.14 0.12 0.12
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: 1%.

Fund Factsas of Jan 31, 2017

Class C Inception 08/31/2010
Investment Objective Total return
Total Net Assets $1.9B
Minimum Investment $1000
Expense Ratio (Gross)3 2.30%
Expense Ratio (Net)3 2.27%
CUSIP 277923272

Morningstar™ Ratingsas of Jan 31, 2017

Time Period Rating Funds in
Nontraditional Bond
Category
Overall **** 235
3 Years ***** 235
5 Years *** 158
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

John R. Baur Managed Fund since inception
Michael A. Cirami, CFA Managed Fund since inception
Eric Stein, CFA Managed Fund since inception

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

About Risk 

The Fund employs an "absolute return" investment approach, benchmarking itself to an index of cash instruments and seeking to achieve returns that are largely independent of broad movements in stocks and bonds. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. In emerging or frontier countries, these risks may be more significant. An imbalance in supply and demand in the income market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of nonpayment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer's ability to make principal and interest payments. Derivative instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. Because the Fund may invest significantly in a particular geographic region or country, value of Fund shares may fluctuate more than a fund with less exposure to such areas. As interest rates rise, the value of certain income investments is likely to decline. The value of commodities investments will generally be affected by overall market movements and factors specific to a particular industry or commodity, including weather, embargoes, tariffs, or health, political, international and regulatory developments. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. A nondiversified fund may be subject to greater risk by investing in a smaller number of investments than a diversified 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

Historical Returns (%)as of Dec 31, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
01/31/2017
Fund at NAV 0.30 0.12 0.30 6.88 4.84 2.77 2.43
Fund w/Max Sales Charge -0.70 -0.87 -0.70 5.88 4.84 2.77 2.43
BofA Merrill Lynch 3-Month U.S. Treasury Bill Index2 0.04 0.10 0.04 0.37 0.15 0.13 0.12
Morningstar™ Nontraditional Bond Category4 0.72 1.10 0.72 7.09 1.96 2.64
12/31/2016
Fund at NAV 1.24 -0.08 4.87 4.87 4.40 3.40 2.41
Fund w/Max Sales Charge 0.24 -1.07 3.87 3.87 4.40 3.40 2.41
BofA Merrill Lynch 3-Month U.S. Treasury Bill Index2 0.04 0.09 0.33 0.33 0.14 0.12 0.12
Morningstar™ Nontraditional Bond Category4 0.88 0.66 5.28 5.28 1.69 2.85
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 or equal to one year is cumulative. Max Sales Charge: 1%.

Calendar Year Returns (%)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Fund at NAV -2.38 5.76 -1.76 5.27 3.09 4.87
BofA Merrill Lynch 3-Month U.S. Treasury Bill Index2 5.00 2.06 0.21 0.13 0.10 0.11 0.07 0.03 0.05 0.33

Fund Facts

Expense Ratio (Gross)3 2.30%
Expense Ratio (Net)3 2.27%
Class C Inception 08/31/2010
Distribution Frequency Annually

Morningstar™ Ratingsas of Jan 31, 2017

Time Period Rating Funds in
Nontraditional Bond
Category
Overall **** 235
3 Years ***** 235
5 Years *** 158
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
Feb 17, 2017 $9.90 $0.00
Feb 16, 2017 $9.90 -$0.02
Feb 15, 2017 $9.92 -$0.01
Feb 14, 2017 $9.93 $0.00
Feb 13, 2017 $9.93
Feb 10, 2017 $9.91 $0.01
Feb 09, 2017 $9.90 $0.02
Feb 08, 2017 $9.88 $0.00
Feb 07, 2017 $9.88 -$0.01
Feb 06, 2017 $9.89 $0.00
View All

Distribution History5

Ex-Date Distribution Reinvest NAV
Dec 29, 2016 $0.08230 $9.89
Dec 30, 2015 $0.55030 $9.48
Dec 19, 2014 $0.23720 $9.66
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 History5

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

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

About Risk 

The Fund employs an "absolute return" investment approach, benchmarking itself to an index of cash instruments and seeking to achieve returns that are largely independent of broad movements in stocks and bonds. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. In emerging or frontier countries, these risks may be more significant. An imbalance in supply and demand in the income market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of nonpayment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer's ability to make principal and interest payments. Derivative instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. Because the Fund may invest significantly in a particular geographic region or country, value of Fund shares may fluctuate more than a fund with less exposure to such areas. As interest rates rise, the value of certain income investments is likely to decline. The value of commodities investments will generally be affected by overall market movements and factors specific to a particular industry or commodity, including weather, embargoes, tariffs, or health, political, international and regulatory developments. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. A nondiversified fund may be subject to greater risk by investing in a smaller number of investments than a diversified 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

Portfolio Statisticsas of Jan 31, 2017

Countries Represented 61

Credit Quality (%)6as of Jan 31, 2017

AAA 8.46
AA 0.00
A 9.15
BBB 8.78
BB 32.74
B 36.80
CCC or Lower 0.00
Not Rated 4.06
Total 100.00
Ratings are based on Moody's, S&P or Fitch, as applicable. If securities are rated differently by the ratings agencies, the higher rating is applied. Ratings, which are subject to change, apply to the creditworthiness of the issuers of the underlying securities and not to the Fund or its shares. Credit ratings measure the quality of a bond based on the issuer's creditworthiness, with ratings ranging from AAA, being the highest, to D, being the lowest based on S&P's measures. Ratings of BBB or higher by S&P or Fitch (Baa or higher by Moody's) are considered to be investment-grade quality. Credit ratings are based largely on the ratings agency's analysis at the time of rating. The rating assigned to any particular security is not necessarily a reflection of the issuer's current financial condition and does not necessarily reflect its assessment of the volatility of a security's market value or of the liquidity of an investment in the security. Holdings designated as "Not Rated" are not rated by the national ratings agencies stated above.

Foreign Currency Exposure (%)7as of Jan 31, 2017

Sweden 10.01
Serbia 8.40
Sri Lanka 7.96
Iceland 7.89
Romania 6.09
U.A.E. -5.66
Euro -5.95
Singapore -7.75
China -7.91
Oman -9.40
View All

Credit Exposures by Country (contribution to credit spread duration in years)8as of Jan 31, 2017

Turkey 0.52
Cyprus 0.40
Mexico 0.37
Macedonia 0.20
Ecuador 0.17
Malaysia -0.18
Colombia -0.18
Italy -0.29
Qatar -0.33
South Africa -0.53
View All

Interest-Rate Exposures by Country (contribution to interest-rate duration in years)9as of Jan 31, 2017

United States 1.43
Russia 0.50
Poland 0.45
Australia 0.40
Serbia 0.33
Iceland 0.32
Hungary -0.44
Euro -0.45
Japan -0.50
Saudi Arabia -0.80
View All

Aggregate Exposure10as of Jan 31, 2017

Foreign Currency (%) Credit (yrs.) Interest Rate (yrs.)
Long 58.51 2.59 4.45
Short -41.20 -1.80 -2.97
Net 17.31 0.79 1.48

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

About Risk 

The Fund employs an "absolute return" investment approach, benchmarking itself to an index of cash instruments and seeking to achieve returns that are largely independent of broad movements in stocks and bonds. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. In emerging or frontier countries, these risks may be more significant. An imbalance in supply and demand in the income market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of nonpayment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer's ability to make principal and interest payments. Derivative instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. Because the Fund may invest significantly in a particular geographic region or country, value of Fund shares may fluctuate more than a fund with less exposure to such areas. As interest rates rise, the value of certain income investments is likely to decline. The value of commodities investments will generally be affected by overall market movements and factors specific to a particular industry or commodity, including weather, embargoes, tariffs, or health, political, international and regulatory developments. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. A nondiversified fund may be subject to greater risk by investing in a smaller number of investments than a diversified 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

Commentary

A Word On The Markets as of Dec 31, 2016

During the fourth quarter, the U.S. presidential election and Federal Reserve policy took center stage in the financial markets. The period began with a pickup in volatility as the presidential race tightened and a December rate hike from the Fed seemed increasingly likely. Volatility spiked on Election Day and risk assets sold off once it became clear that Donald Trump had upset front-runner Hillary Clinton. Domestic equities quickly regained their footing and continued to rally on optimism about Trump's pro-growth policies. However, U.S. and international bond markets remained weak, as concerns about the inflationary impact of his agenda pushed global yields higher. Emerging bond markets were among the hardest hit given a broad strengthening in the U.S. dollar and Trump's protectionist views on trade and foreign policy.

The Fed increased short-term interest rates 0.25% in December, as expected, and projected three rate increases for 2017. The Fed's actions reflected its confidence in the U.S. economy, which grew at an annual pace of 3.5% in the third quarter. Overseas, the Bank of Japan maintained its aggressive easing polices and the European Central Bank extended its asset purchase program to the end of 2017, albeit at €60 billion a month versus the current €80 billion.

In this environment, the global equity market generated a modestly positive return for the quarter, driven by gains in U.S. stocks. The broad commodity market also advanced amid increases in copper and oil prices. Treasury yields rose across the curve, and local currency and U.S. dollar-denominated emerging-market sovereign debt declined.

Performance Summary 

Eaton Vance Global Macro Absolute Return Fund and Eaton Vance Global Macro Absolute Return Advantage Fund outperformed their benchmark, the BofA Merrill Lynch 3 Month U.S. Treasury Bill Index (the Index),2 at net asset value during the quarter.

  • By risk factor, currency exposure contributed the most to Fund performance, followed by credit and then equity. Rates exposure was the primary detractor, and commodity investments also dampened returns, driven by short positions in copper and oil.
  • At the regional level, Western Europe added the most value, while Asia was the second-best performer. The positive results in Western Europe were due to currency exposures, particularly a short position in the euro and a long position in the Icelandic krona versus the euro. In Asia, gains in currency and equity exposures more than compensated for a loss in rates. Top-performing investments included a short in the Chinese yuan which, like most currencies, weakened against the U.S. dollar. A long in Japanese equities was helpful as well, since Japanese stocks surged in local currency terms, with financial shares benefiting from rising global yields and exporters benefiting from a weaker yen.
  • Investments in the Central and Eastern Europe region, and in Latin America, also boosted Fund performance. While rates exposures detracted in both regions, the negative impact was more than offset by strength in other areas. In Central and Eastern Europe, currency and credit allocations favorably affected results. A long position in the Russian ruble was especially advantageous given the rise in oil prices. Oil prices climbed more than 7% during the quarter as OPEC and several non-OPEC members, including Russia, pledged to cut output. Long credit positions in Cyprus and Armenia were helpful as well. Credit exposure drove the gain in Latin America.
  • The Middle East and Africa region negatively impacted returns, and the Dollar Bloc also detracted, although to a lesser degree. In the Middle East and Africa, rates and currency exposures produced losses. Rates subtracted the most from Fund performance, driven by short exposure in Saudi Arabia. Within the currency allocation, short positions in the South African rand and Omani rial were unfavorable. In the Dollar Bloc, rates exposure was the primary drag, namely a long in New Zealand.

Historical Returns (%)as of Dec 31, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
Fund at NAV 1.24 -0.08 4.87 4.87 4.40 3.40 2.41
Fund w/Max Sales Charge 0.24 -1.07 3.87 3.87 4.40 3.40 2.41
BofA Merrill Lynch 3-Month U.S. Treasury Bill Index2 0.04 0.09 0.33 0.33 0.14 0.12 0.12
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: 1%.

Fund Factsas of Dec 31, 2016

Class C Inception 08/31/2010
Expense Ratio (Gross)3 2.30%
Expense Ratio (Net)3 2.27%

Contributors 

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

  • At the individual position level, one of the best-performing investments was the short in the Chinese yuan. Other top contributors included the short in the euro and the long in the Icelandic krona versus the euro. The euro fell to a 14-year low versus the U.S. dollar, pressured by rising U.S. interest rates and political uncertainty in the region. The euro also weakened significantly versus the Icelandic krona, a currency that benefited from Iceland's thriving economy and attractive yields. Long credit positions in Brazil and Ecuador — both oil-exporting nations — also had a materially positive effect on Fund performance.

Detractors 

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

  • Major detractors included the short rates exposure in Saudi Arabia, where liquidity conditions eased, and the long in New Zealand rates — despite the Reserve Bank of New Zealand cutting its benchmark rate to a record low. Long positions in the Sri Lankan rupee and Indonesian rupiah also subtracted a meaningful amount from return. Lastly, results were hurt by a short investment in South African credit. While major ratings agencies continued to closely monitor political and economic turmoil in South Africa, the country maintained its investment-grade status in the fourth quarter.

Investment Outlook And Fund Positioning 

We expect a wide range of potential investment outcomes due to the change in U.S. political leadership. While markets appear to have priced in fiscal spending, lower taxes and less regulation, trade policy remains a key factor that will have a significant impact on the global economy and the individual countries the team covers. Beyond the United States, China's capital account management and multiple European elections are likely to drive volatility in financial markets, and further consolidation in oil markets may continue to stress those Middle East producers with inadequate fiscal capacity to absorb lower commodity prices. Against this backdrop, we have positioned the Funds to be more sensitive to country-level factors rather than broad macro factors and thus expect country-level factors to be the main drivers of their performance going forward.

At quarter-end, both Funds' currency positioning was net long. Long U.S. dollar positions versus the Chinese yuan and Omani rial balance short euro positions versus Serbia, Iceland and Sweden.

Credit spread duration was just above one-half year for Global Macro Absolute Return and a touch higher than one year for Global Macro Absolute Return Advantage. Long credit positions in Turkey, Cyprus and Mexico are somewhat offset by short credit positions in South Africa, Qatar and Italy.

U.S. interest-rate duration and non-U.S. interest-rate duration are also less than one year for both Funds. A long position in Russian rates and a short in Saudi Arabian rates are the largest duration contributors to overall interest-rate sensitivity.

Credit Quality (%)6as of Dec 31, 2016

AAA 7.44
AA 0.00
A 8.96
BBB 9.97
BB 31.68
B 37.95
CCC or Lower 0.00
Not Rated 4.00
Total 100.00
Ratings are based on Moody's, S&P or Fitch, as applicable. If securities are rated differently by the ratings agencies, the higher rating is applied. Ratings, which are subject to change, apply to the creditworthiness of the issuers of the underlying securities and not to the Fund or its shares. Credit ratings measure the quality of a bond based on the issuer's creditworthiness, with ratings ranging from AAA, being the highest, to D, being the lowest based on S&P's measures. Ratings of BBB or higher by S&P or Fitch (Baa or higher by Moody's) are considered to be investment-grade quality. Credit ratings are based largely on the ratings agency's analysis at the time of rating. The rating assigned to any particular security is not necessarily a reflection of the issuer's current financial condition and does not necessarily reflect its assessment of the volatility of a security's market value or of the liquidity of an investment in the security. Holdings designated as "Not Rated" are not rated by the national ratings agencies stated above.

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

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

About Risk 

The Fund employs an "absolute return" investment approach, benchmarking itself to an index of cash instruments and seeking to achieve returns that are largely independent of broad movements in stocks and bonds. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. In emerging or frontier countries, these risks may be more significant. An imbalance in supply and demand in the income market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of nonpayment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer's ability to make principal and interest payments. Derivative instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. Because the Fund may invest significantly in a particular geographic region or country, value of Fund shares may fluctuate more than a fund with less exposure to such areas. As interest rates rise, the value of certain income investments is likely to decline. The value of commodities investments will generally be affected by overall market movements and factors specific to a particular industry or commodity, including weather, embargoes, tariffs, or health, political, international and regulatory developments. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. A nondiversified fund may be subject to greater risk by investing in a smaller number of investments than a diversified 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 an affiliated investment company (Portfolio) with the same objective(s) and policies as the Fund and may also invest directly. References to investments are to the aggregate holdings of the Fund and the Portfolio.

About Risk 

The Fund employs an "absolute return" investment approach, benchmarking itself to an index of cash instruments and seeking to achieve returns that are largely independent of broad movements in stocks and bonds. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. In emerging or frontier countries, these risks may be more significant. An imbalance in supply and demand in the income market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of nonpayment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer's ability to make principal and interest payments. Derivative instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. Because the Fund may invest significantly in a particular geographic region or country, value of Fund shares may fluctuate more than a fund with less exposure to such areas. As interest rates rise, the value of certain income investments is likely to decline. The value of commodities investments will generally be affected by overall market movements and factors specific to a particular industry or commodity, including weather, embargoes, tariffs, or health, political, international and regulatory developments. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. A nondiversified fund may be subject to greater risk by investing in a smaller number of investments than a diversified 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
John R. Baur

John R. Baur

Vice President, Eaton Vance Management
Joined Eaton Vance 2005

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

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

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

Education
  • B.S. Massachusetts Institute of Technology
  • M.B.A. Johnson Graduate School of Management, Cornell University

Experience
  • Managed Fund since inception

Biography
Michael A. Cirami, CFA

Michael A. Cirami, CFA

Vice President, Eaton Vance Management
Joined Eaton Vance 2003

Michael Cirami is a vice president of Eaton Vance Management, co-director of global income and portfolio manager on Eaton Vance’s global income team. He is responsible for leading the 45-person global income team, as well as for buy and sell decisions, portfolio construction and risk management for the firm’s global income strategies. Michael focuses on emerging Europe, the Middle East and Africa. He joined Eaton Vance in 2003.

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

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

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

Education
  • B.S. Mary Washington College
  • M.B.A. William E. Simon School of Business, University of Rochester

Experience
  • Managed Fund since inception

Biography
Eric Stein, CFA

Eric Stein, CFA

Vice President, Eaton Vance Management
Joined Eaton Vance 2002; rejoined the firm in 2008

Eric Stein is a vice president of Eaton Vance Management, co-director of global income and portfolio manager in Eaton Vance’s global income group. He is responsible for leading the 45-person global income team, as well as for buy and sell decisions, portfolio construction and risk management for the firm’s global income strategies. He focuses on Asia, Western Europe and the Dollar Bloc. He also covers the policies and actions of the Federal Reserve and the U.S. Treasury. He originally joined Eaton Vance in 2002 and rejoined the company in 2008.

Eric previously worked on the Markets Desk of the Federal Reserve Bank of New York. He has additional experience at Citigroup Alternative Investments.

Eric earned a B.S., cum laude, from Boston University and an MBA, with honors, from the University of Chicago Booth School of Business. He is a term member of the Council on Foreign Relations. He is also a CFA charterholder and a member of the Boston Committee on Foreign Relations, Boston Economic Club, Business Associates Club, Enterprise Club, AEI Boston Council and Boston Security Analysts Society. Eric is on the board of overseers of Big Brothers Big Sisters of Massachusetts Bay. He also serves as a board member and member of the investment committee of the Boston Civic Symphony.

Eric’s commentary has appeared in The New York Times, The Wall Street Journal, Barron’s, Financial Times, The Washington Post, Bloomberg, Dow Jones, Reuters, Kiplinger’s and The Christian Science Monitor. He has been featured on CNBC, Fox News, Fox Business News, PBS, Bloomberg Radio and Bloomberg TV.

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

Experience
  • Managed Fund since inception


Literature

Literature

Fact Sheet

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Commentary

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Attribution

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Is it time to rethink traditional portfolios? GMAR-GMARA Brochure

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Monthly Update

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Annual Report

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Full Prospectus

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Global Macro Absolute Return Advantage Holdings

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

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SAI

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Performance Always Matters

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Semi-Annual Report

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Summary Prospectus

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XBRL

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