Overview

High Income Opportunities Fund has historically provided strong returns relative to its peer group.1

As of 06/30/2016

  • Class A at NAV
  • Morningstar High Yield Bond Category Average

Historical Returns (%)as of Jun 30, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
08/31/2016
Fund at NAV 1.58 3.97 10.34 6.78 5.75 7.66 6.57
Fund w/Max Sales Charge -3.22 -1.01 5.11 1.75 4.02 6.63 6.04
BofA Merrill Lynch U.S. High Yield Index2 2.23 5.95 14.58 9.18 5.39 7.31 7.65
06/30/2016
Fund at NAV 0.25 3.10 6.39 1.72 5.07 6.17 6.38
Fund w/Max Sales Charge -4.56 -1.71 1.35 -3.17 3.41 5.15 5.86
BofA Merrill Lynch U.S. High Yield Index2 1.08 5.88 9.32 1.71 4.18 5.70 7.43
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: 4.75%.

Fund Factsas of Aug 31, 2016

Class A Inception 03/11/2004
Performance Inception 08/19/1986
Investment Objective High current income
Total Net Assets $1.5B
Minimum Investment $1000
Expense Ratio3 0.90%
CUSIP 277923405

Top 10 Issuers (%)4as of Aug 31, 2016

Sprint Corp
iShares iBoxx High Yield
Sabine Pass Liquefaction LLC
Albertsons LLC
T-Mobile USA Inc
Dell Inc
XPO Logistics Inc
Seven Generations Energy
Charter Comm Hlds
HCA Inc
Total 14.05

Portfolio Management

Michael W. Weilheimer, CFA Managed Fund since 1996
Kelley G. Baccei Managed Fund since 2014
Stephen C. Concannon, CFA Managed Fund since 2014

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

About Risk 

An imbalance in supply and demand in the income market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of nonpayment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer's ability to make principal and interest payments. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. As interest rates rise, the value of certain income investments is likely to decline. Derivative instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. The Fund will incur a loss as a result of a short sale if the price of the security sold short increases in value between the date of the short sale and the date on which the Fund purchases the security to replace the borrowed security. 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 Jun 30, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
08/31/2016
Fund at NAV 1.58 3.97 10.34 6.78 5.75 7.66 6.57
Fund w/Max Sales Charge -3.22 -1.01 5.11 1.75 4.02 6.63 6.04
BofA Merrill Lynch U.S. High Yield Index2 2.23 5.95 14.58 9.18 5.39 7.31 7.65
Morningstar™ High Yield Bond Category5 1.82 4.83 10.82 5.91 3.91 6.23 6.22
06/30/2016
Fund at NAV 0.25 3.10 6.39 1.72 5.07 6.17 6.38
Fund w/Max Sales Charge -4.56 -1.71 1.35 -3.17 3.41 5.15 5.86
BofA Merrill Lynch U.S. High Yield Index2 1.08 5.88 9.32 1.71 4.18 5.70 7.43
Morningstar™ High Yield Bond Category5 0.68 4.23 6.43 -0.46 2.92 4.58 5.97
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: 4.75%.

Calendar Year Returns (%)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Fund at NAV 11.83 1.51 -36.77 64.30 15.89 4.10 15.43 8.55 3.45 -1.12
BofA Merrill Lynch U.S. High Yield Index2 11.77 2.19 -26.39 57.51 15.19 4.38 15.58 7.42 2.50 -4.64

Fund Facts

Expense Ratio3 0.90%
Class A Inception 03/11/2004
Performance Inception 08/19/1986
Distribution Frequency Monthly

Yield Information6as of Aug 31, 2016

Distribution Rate at NAV 5.31%
SEC 30-day Yield 4.30%

Morningstar™ Ratingsas of Aug 31, 2016

Time Period Rating Rating (Load Waived) Funds in
High Yield Bond
Category
Overall *** **** 654
3 Years *** ***** 654
5 Years **** ***** 524
10 Years ** *** 368
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.

© 2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers is responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on how a fund ranks on a Morningstar Risk-Adjusted Return measure against other funds in the same category. This measure takes into account variations in a fund's monthly performance after adjusting for sales loads (except for load-waived A shares) redemption fees, and the risk-free rate, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. Load-waived A share star ratings do not include any front-end sales load and are intended for those investors who have access to such purchase terms (e.g., plan participants of a defined contribution plan). Not all A share mutual funds for which Morningstar calculates a load-waived A share star rating may actually waive their front-end sales load. Therefore, Morningstar strongly encourages investors to contact their investment professional to determine whether they are eligible to purchase the A share without paying the front load. The Morningstar Rating may differ among share classes of a mutual fund as a result of different sales loads and/or expense structure.

NAV History

Date NAV NAV Change
Sep 23, 2016 $4.48 $0.00
Sep 22, 2016 $4.48 $0.02
Sep 21, 2016 $4.46 $0.01
Sep 20, 2016 $4.45 $0.00
Sep 19, 2016 $4.45 $0.00
Sep 16, 2016 $4.45 $0.00
Sep 15, 2016 $4.45 $0.00
Sep 14, 2016 $4.45 $0.00
Sep 13, 2016 $4.45 -$0.01
Sep 12, 2016 $4.46 -$0.01
View All

Distribution History7

Ex-Date Distribution Reinvest NAV
Aug 31, 2016 $0.02016 $4.48
Jul 29, 2016 $0.02143 $4.43
Jun 30, 2016 $0.02074 $4.36
May 31, 2016 $0.02143 $4.37
Apr 29, 2016 $0.02074 $4.36
Mar 31, 2016 $0.02143 $4.29
Feb 29, 2016 $0.02005 $4.18
Jan 29, 2016 $0.02143 $4.16
Dec 31, 2015 $0.02149 $4.22
Nov 30, 2015 $0.02103 $4.31
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 History7

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 invests in an affiliated investment company (Portfolio) with the same objective(s) and policies as the Fund. References to investments are to the Portfolio's holdings.

About Risk 

An imbalance in supply and demand in the income market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of nonpayment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer's ability to make principal and interest payments. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. As interest rates rise, the value of certain income investments is likely to decline. Derivative instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. The Fund will incur a loss as a result of a short sale if the price of the security sold short increases in value between the date of the short sale and the date on which the Fund purchases the security to replace the borrowed security. 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 (%)4as of Aug 31, 2016

Corporate Bonds 85.15
Floating-Rate Loans 6.13
Cash 5.52
Other Investments 1.57
Common Stocks 1.15
Preferred Stock 0.30
Mortgage Backed Securities 0.18
Total 100.00

Portfolio Statisticsas of Aug 31, 2016

Number of Issuers 304
Number of Holdings 581
Average Yield to Maturity 5.90%
Average Coupon 6.45%
Average Maturity 6.07 yrs.
Average Effective Maturity 4.28 yrs.
Average Duration 3.27 yrs.
Average Price $100.49

Sector Breakdown (%)4as of Aug 31, 2016

Energy 13.88
Healthcare 11.70
Technology 8.52
Telecommunications 7.91
Cable/Satellite TV 6.45
Services 5.07
Retail 3.67
Gaming 3.54
Utilities 2.77
Food/Beverage/Tobacco 2.51
View All

Credit Quality (%)8as of Aug 31, 2016

BBB 5.34
BB 35.68
B 41.56
CCC or Lower 13.93
Not Rated 3.49
Total 100.00
Credit ratings are categorized using S&P. If S&P does not publish a rating, then the Moody's 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 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.

Maturity Distribution (%)4as of Aug 31, 2016

Less Than 1 Year 1.65
1 To 3 Years 6.30
3 To 5 Years 21.27
5 To 10 Years 67.91
10 To 20 Years 2.26
20 To 30 Years 0.39
More Than 30 Years 0.21
Total 100.00

Assets by Country (%)9,10as of Aug 31, 2016

United States 85.09
Canada 5.64
Luxembourg 2.95
United Kingdom 1.30
Netherlands 1.02
Bermuda 1.02
Ireland 1.00
France 0.84
Cayman Islands 0.32
Australia 0.29
View All

Fund Holdings4,11as of Jul 31, 2016

Holding Coupon Rate Maturity Date % of Net Assets
EV Cash Reserves Fund 0.12% 07/25/2016 8.80%
SPDR Barclays High Yield Bond ETF 0.00% 1.04%
MPH Acquisition Holdings LLC 7.13% 06/01/2024 0.81%
PENINSULA GAMING LLC 01JUL16 CALL 0.00% 12/31/2049 0.79%
T-Mobile USA Inc 6.50% 01/15/2026 0.76%
Sprint Corp 7.88% 09/15/2023 0.71%
HCA Inc 5.88% 02/15/2026 0.70%
Laureate Education Inc 9.25% 09/01/2019 0.65%
MDC Partners Inc 6.50% 05/01/2024 0.63%
Kinetic Concepts Inc / KCI USA Inc 10.50% 11/01/2018 0.62%
View All

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

About Risk 

An imbalance in supply and demand in the income market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of nonpayment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer's ability to make principal and interest payments. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. As interest rates rise, the value of certain income investments is likely to decline. Derivative instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. The Fund will incur a loss as a result of a short sale if the price of the security sold short increases in value between the date of the short sale and the date on which the Fund purchases the security to replace the borrowed security. 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 Jun 30, 2016

Market conditions shifted throughout the second quarter. The U.S. economy muddled along, vacillating between weak and favorable reports. Oil prices closed the quarter in the high $40s, below their peak in early June of just over $50 a barrel but well above the mid-$30s level seen in April. Volatility was significant leading up to – and following – Britain's surprise vote in late June to leave the European Union. Expectations for an increase in short-term U.S. interest rates this summer disappeared after the Brexit vote, with most investors anticipating lower-for-longer rates. Yields on the 10-year U.S. Treasury bond declined from 1.83% to 1.49% over the quarter.

In aggregate, however, this backdrop was supportive for U.S. high-yield bond returns. Energy, the biggest sector in the Index, and metals/mining posted sizable gains as commodity prices rallied, with some of the lowest-quality CCC-rated issues rising exponentially. Demand for high-yield bonds exceeded new issue supply, which was significantly higher than the first quarter but year-to-date down 19% compared to 2015. Most of the money coming into the asset class came from institutional investors, including foreign investors searching for yield in the U.S. due to low, and in some cases negative, interest rates overseas. A sizable year-over-year slowdown in acquisition-related financing needs reduced new issuance, outweighing the effect of increased refinancing activity. The trailing 12-month default rate on high-yield bonds rose slightly, but still ended the quarter below the long-term average of 3.9%. Excluding energy and metals and mining, the default rate was only 0.53% on June 30.

These tailwinds helped high-yield bonds outperform other asset classes. The BofA Merrill Lynch U.S. High Yield Index2 (the Index) finished the three months ended June 30, 2016, with a 5.88% return. By comparison, the Barclays U.S. Aggregate Bond Index12, which focuses on investment-grade debt, returned 2.21%, and the S&P 500 Index13, a measure of broad equity market performance, advanced 2.46%.

Performance Summary 

Eaton Vance High Income Opportunities Fund (the Fund) posted a solid gain at net asset value for the quarter, but lagged the Index.

  • Our focus on higher-quality, less volatile CCC-and B-rated issues hampered performance, as lower-quality, higher-yielding bonds in both categories posted the biggest gains.
  • Credit selection in energy, underweights in this sector and in metals/mining, and a small cash position in an up market further detracted.
  • Credit selection among shorter duration14 segments, particularly among bonds with durations of five years or less, also cost the Fund ground. An underweight in the two- to five-year segment was an added headwind.
  • Underweights in the banks & thrifts and diversified financials services sectors aided performance, as did credit selection in the gaming sector. A small position in equities also boosted results.

Historical Returns (%)as of Jun 30, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
Fund at NAV 0.25 3.10 6.39 1.72 5.07 6.17 6.38
Fund w/Max Sales Charge -4.56 -1.71 1.35 -3.17 3.41 5.15 5.86
BofA Merrill Lynch U.S. High Yield Index2 1.08 5.88 9.32 1.71 4.18 5.70 7.43
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: 4.75%.

Fund Factsas of Jun 30, 2016

Class A Inception 03/11/2004
Performance Inception 08/19/1986
Expense Ratio3 0.90%

Contributors 

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

  • The Fund's underexposure to financials helped, as continued low interest rates kept a lid on their returns.
  • An underweight in higher-quality (BB-rated) bonds contributed, as the segment lagged the Index. Allocation to the even higher-quality BBB category also was a modest positive.
  • An, out-of-Index, equity investment in a privately-held casino operator performed very well in the quarter.

Detractors 

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

  • In the energy and metals/mining sectors, the Fund's bias toward high-quality, low-cost producers proved costly, as the lowest-quality issues posted the biggest gains.
  • An above-average cash position, partly driven by significant Fund inflows in the quarter, hindered performance. Positioning in retail, which was a small overweight, further detracted as the sector underperformed the Index.
  • Credit selection in the CCC, B and non-rated segments hurt, largely because of the Fund's underexposure to more volatile, distressed securities with short durations.
  • Credit selection detracted across most duration segments, but particularly those of five years or less.

Investment Outlook And Fund Positioning 

The short-term market technicals (supply and demand) look supportive. The corporate credit fundamentals also appear supportive in the short-term, but are still fragile enough to pose downside risk in the intermediate term. A backdrop of positive but slow growth in the U.S. economy would be supportive of the asset class, helping to keep default rates in check. In addition, lower-for-longer U.S. interest rates – and Federal Reserve chairwoman Janet Yellen's intent to take a measured approach once the Fed does start raising interest rates – bode well for the bond market. Low and negative yields globally and in other asset classes should draw yield-hungry investors to U.S. bonds, particularly high-yield issues. We expect ongoing shifts in commodity prices coupled with political uncertainty in the U.S. and Europe to lead to continued market volatility. In turbulent market conditions, the U.S. dollar and U.S. bonds typically are seen as safe havens.

Although spreads – the difference between yields on high-yield bonds and comparable maturity U.S. Treasury bonds – have narrowed, they generally remain attractive, given the low level of credit risk in most of the high-yield asset class. The exceptions are energy and metals/mining, two sectors which we believe still have significant credit risk and the continued likelihood of a relatively high level of defaults. Absent energy and metals/mining, the high-yield spread is near the long-term average, with below-average credit risk.

New issuance should be limited in the second half of 2016 and below the level seen in 2015. Many companies have already locked in long-term financing at low rates. In addition, merger and acquisition activity has trailed off due to uncertainty around global economic growth, upcoming elections and legislation.

We take a long-term perspective in investing. We recognize that in strong up markets when lower quality, distressed securities outperform, the Fund will likely underperform, as it did this past quarter. However, the Fund also is positioned to outperform in more volatile and down markets. Over the long term, we think protecting the Fund's downside and minimizing volatility can lead to better long-term performance even if we have to sacrifice some upside in market rallies.

Given our market outlook, we think it makes sense to maintain the Fund's relatively conservative positioning. In energy, we expect to stay focused on the lowest-cost producers with the highest-quality assets because we believe these are the companies that can make it through a prolonged period of low oil and gas prices. The Fund's CCC weighting remains roughly in line with that of the Index, but we're keeping our bias toward the higher-quality portion of the segment, favoring lower-yielding, more liquid, less volatile issues that we think have been mis-rated as CCC bonds. As an example, the average yield on the Fund's CCC-rated securities at Period end was 8%, versus over 15% for the CCC bonds in the Index. We also anticipate maintaining a shorter duration than the Index to limit volatility.

At the end of the period, the Fund still had a significant underweight in the metals/mining sector, although we did add some secured and guaranteed bonds issued by higher-quality miners over the quarter. The Fund also has a sizable underweight in financials, which seems timely given the volatility affecting European banks and the pressure from continued low interest rates on U.S. banks. Overweights include technology, a sector where we've found attractive valuations and expect to see continued merger and acquisition (M&A) activity.

Credit Quality (%)8as of Jun 30, 2016

BBB 5.33
BB 36.29
B 41.26
CCC or Lower 14.52
Not Rated 2.58
Total 100.00
Credit ratings are categorized using S&P. If S&P does not publish a rating, then the Moody's 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 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 an affiliated investment company (Portfolio) with the same objective(s) and policies as the Fund. References to investments are to the Portfolio's holdings.

About Risk 

An imbalance in supply and demand in the income market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of nonpayment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer's ability to make principal and interest payments. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. As interest rates rise, the value of certain income investments is likely to decline. Derivative instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. The Fund will incur a loss as a result of a short sale if the price of the security sold short increases in value between the date of the short sale and the date on which the Fund purchases the security to replace the borrowed security. 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 invests in an affiliated investment company (Portfolio) with the same objective(s) and policies as the Fund. References to investments are to the Portfolio's holdings.

About Risk 

An imbalance in supply and demand in the income market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of nonpayment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer's ability to make principal and interest payments. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. As interest rates rise, the value of certain income investments is likely to decline. Derivative instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. The Fund will incur a loss as a result of a short sale if the price of the security sold short increases in value between the date of the short sale and the date on which the Fund purchases the security to replace the borrowed security. 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
Michael W. Weilheimer, CFA

Michael W. Weilheimer, CFA

Vice President, Eaton Vance Management
Joined Eaton Vance 1990

Michael Weilheimer is a vice president of Eaton Vance Management, director of high-yield investments and a portfolio manager on Eaton Vance’s high-yield team. He is responsible for buy and sell decisions, portfolio construction and risk management for the firm’s high-yield strategies. He joined Eaton Vance in 1990.

Mike began his career in the investment management industry in 1987. Before joining Eaton Vance, he worked for Cowen & Company as an analyst specializing in distressed debt securities and was also affiliated with Amroc Investments, L.P.

Mike earned a B.S. from the University at Albany, State University of New York and an MBA from the University of Chicago. He is a member of the Boston Security Analysts Society, is on the board of trustees for Gann Academy, and on the dean’s advisory board for the School of Business, University at Albany, State University of New York. He is a CFA charterholder.

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

Education
  • B.S. State University of New York at Albany
  • M.B.A. Booth School of Business, University of Chicago
Experience
  • Managed Fund since 1996
Biography
Kelley G. Baccei

Kelley G. Baccei

Vice President, Eaton Vance Management
Joined Eaton Vance 2005

Kelley Baccei is a vice president of Eaton Vance Management and a portfolio manager on Eaton Vance’s high-yield team. She is responsible for buy and sell decisions and portfolio construction. She joined Eaton Vance in 2005.

Kelley began her career in the investment management industry in 2000. Before joining Eaton Vance, she was the director of high-yield distressed research at Fieldstone Capital Group. Previously, she was associate director of fixed-income research at Scotia Capital Markets, Inc.

Kelley earned a B.A. from Boston College and a certificate in credit analysis from New York University.

Education
  • B.A. Boston College
Experience
  • Managed Fund since 2014
Other funds managed
 
Biography
Stephen C. Concannon, CFA

Stephen C. Concannon, CFA

Vice President, Eaton Vance Management
Joined Eaton Vance 2000

Stephen Concannon is a vice president and portfolio manager on Eaton Vance’s high-yield team, also contributing to the firm’s multisector bond strategy. He is responsible for buy and sell decisions, portfolio construction and risk management for the firm’s high-yield strategies. He joined Eaton Vance in 2000.

Steve began his career in the investment management industry in 1993. Before joining Eaton Vance, he was a research analyst for Wellington Management.

Steve earned a B.A. from Bates College. He is a member of the Boston Security Analysts Society and is a CFA charterholder.

Education
  • B.A. Bates College
Experience
  • Managed Fund since 2014

Literature

Literature

Fact Sheet

Download - Last updated: Jun 30, 2016

Fact Sheet

Download - Last updated: Jun 30, 2016

Commentary

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Attribution

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Annual Report

Download - Last updated: Oct 31, 2015

Full Prospectus

Download - Last updated: Mar 1, 2016

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

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SAI

Download - Last updated: Mar 1, 2016

How cheap are floating rate loans and high yield bonds

Download - Last updated: Aug 31, 2016

Think Performance Think Eaton Vance

Download - Last updated: Jun 30, 2016

EXCLUSIVE CONTENT

An Opportunistic High Yield Bond Fund

Download - Last updated: Jun 30, 2016

Semi-Annual Report

Download - Last updated: Apr 30, 2016

Summary Prospectus

Download - Last updated: Mar 1, 2016

XBRL

Download - Last updated: Mar 22, 2016