Overview

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

As of 09/30/2016

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

Historical Returns (%)as of Sep 30, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
11/30/2016
Fund at NAV -0.24 0.20 10.56 8.80 4.45 7.60 6.16
Fund w/Max Sales Charge -4.93 -4.49 5.32 3.75 2.78 6.55 5.65
BofA Merrill Lynch U.S. High Yield Index2 -0.39 0.56 15.22 12.25 4.23 7.45 7.25
09/30/2016
Fund at NAV 0.66 4.40 11.07 10.41 5.57 8.50 6.53
Fund w/Max Sales Charge -4.05 -0.62 5.80 5.28 3.86 7.46 6.01
BofA Merrill Lynch U.S. High Yield Index2 0.65 5.49 15.32 12.82 5.27 8.23 7.58
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 Oct 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 Oct 31, 2016

Sprint Corp
Sabine Pass Liquefaction LLC
Seven Generations Energy
T-Mobile USA Inc
Dell Inc
Charter Comm Hlds
HCA Inc
Albertsons LLC
Alere Inc
Multiplan Inc
Total 14.02

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 Sep 30, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
10/31/2016
Fund at NAV -0.22 2.03 10.82 7.35 4.71 7.28 6.35
Fund w/Max Sales Charge -4.88 -2.80 5.57 2.24 3.03 6.26 5.83
BofA Merrill Lynch U.S. High Yield Index2 0.31 3.21 15.68 10.16 4.53 7.06 7.46
Morningstar™ High Yield Bond Category5 0.22 2.62 11.69 6.95 3.07 5.93 6.02
09/30/2016
Fund at NAV 0.66 4.40 11.07 10.41 5.57 8.50 6.53
Fund w/Max Sales Charge -4.05 -0.62 5.80 5.28 3.86 7.46 6.01
BofA Merrill Lynch U.S. High Yield Index2 0.65 5.49 15.32 12.82 5.27 8.23 7.58
Morningstar™ High Yield Bond Category5 0.56 4.70 11.45 9.13 3.76 7.05 6.15
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 Oct 31, 2016

Distribution Rate at NAV 5.34%
SEC 30-day Yield 4.34%

Morningstar™ Ratingsas of Oct 31, 2016

Time Period Rating Rating (Load Waived) Funds in
High Yield Bond
Category
Overall *** **** 656
3 Years *** ***** 656
5 Years *** ***** 528
10 Years ** *** 371
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
Dec 02, 2016 $4.43 $0.00
Dec 01, 2016 $4.43 $0.00
Nov 30, 2016 $4.43 $0.01
Nov 29, 2016 $4.42 -$0.01
Nov 28, 2016 $4.43 $0.01
Nov 25, 2016 $4.42 -$0.01
Nov 23, 2016 $4.43 $0.00
Nov 22, 2016 $4.43 $0.02
Nov 21, 2016 $4.41 $0.01
Nov 18, 2016 $4.40 -$0.01

Distribution History7

Ex-Date Distribution Reinvest NAV
Nov 30, 2016 $0.01951 $4.43
Oct 31, 2016 $0.02016 $4.46
Sep 30, 2016 $0.01951 $4.49
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
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 Oct 31, 2016

Corporate Bonds 85.33
Floating-Rate Loans 7.58
Cash 3.95
Other Investments 1.41
Common Stocks 1.38
Preferred Stock 0.35
Total 100.00

Portfolio Statisticsas of Oct 31, 2016

Number of Issuers 307
Number of Holdings 587
Average Yield to Maturity 6.08%
Average Coupon 6.41%
Average Maturity 6.15 yrs.
Average Effective Maturity 4.51 yrs.
Average Duration 3.46 yrs.
Average Price $101.33

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

Energy 14.77
Healthcare 12.16
Technology 9.17
Telecommunications 8.54
Cable/Satellite TV 7.25
Services 4.88
Retail 3.78
Gaming 3.60
CASH 3.04
Utilities 2.67
View All

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

BBB 6.20
BB 35.69
B 41.90
CCC or Lower 13.85
Not Rated 2.36
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 Oct 31, 2016

Less Than 1 Year 1.25
1 To 3 Years 6.42
3 To 5 Years 21.80
5 To 10 Years 67.13
10 To 20 Years 2.82
20 To 30 Years 0.37
More Than 30 Years 0.21
Total 100.00

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

United States 86.32
Canada 4.84
Luxembourg 2.34
Netherlands 1.00
Other 5.50

Fund Holdings4,11as of Oct 31, 2016

Holding Coupon Rate Maturity Date % of Net Assets
EV Cash Reserves Fund LLC 0.00% 3.60%
PENINSULA GAMING LLC 01JUL16 CALL 0.00% 12/31/2049 0.91%
Sprint Corp 7.88% 09/15/2023 0.86%
MPH Acquisition Holdings LLC 7.13% 06/01/2024 0.85%
T-Mobile USA Inc 6.50% 01/15/2026 0.80%
HCA Inc 5.88% 02/15/2026 0.68%
Laureate Education Inc 9.25% 09/01/2019 0.67%
Seven Generations Energy Ltd 6.75% 05/01/2023 0.65%
Change Healthcare Holdings Inc 6.00% 02/15/2021 0.61%
MDC Partners Inc 6.50% 05/01/2024 0.58%
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 Sep 30, 2016

Market conditions were largely favorable for high-yield bonds in the third quarter, as central banks worldwide remained accommodative following Britain's vote in late June to exit the European Union. In the U.S., solid consumer spending, a pickup in exports and modestly positive levels of corporate investment drove estimates of 3% annualized economic growth for the quarter, up from 1.4% in the second quarter and 0.8% in the first quarter. Oil prices began and ended the three-month period near the $48 per barrel level, which was low by historic averages but well above the mid-$20s bottom seen in February.

U.S. high-yield bonds further benefited from growing demand and lighter supply. Low interest rates worldwide fueled continued demand for yield, resulting in approximately $6 billion of net retail inflows into the asset class in the quarter. Markets became temporarily unsettled in mid-September when a typically dovish Fed Board member stated that a hike might come sooner than later, briefly contributing to outflows from high yield. This quickly reversed when the Fed remained on hold at its late-September meeting. New issue supply was light in the first two months before picking up significantly in September.

Fundamentals in the asset class remained adequately healthy. Average debt levels crept up modestly, interest coverage decreased, but remained near the highs, and defaults were relatively flat at about 3.5%. Bonds with B/CCC or lower credit ratings represented only 9% of new issue supply. In addition, a recent report showed high-yield issuers, excluding energy and metals/mining, had returned to positive revenue growth in the second quarter for the first time in three quarters.

The BofA Merrill Lynch U.S. High Yield Index (the Index)2 finished the three months ended September 30, 2016, with a 5.49% return. The Index beat the 0.46% return of the Bloomberg Barclays U.S. Aggregate Bond Index,12 which focuses on investment-grade debt, and the 3.85% gain of the S&P 500 Index,13 a measure of broad equity market performance.

Performance Summary 

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

  • An underweighting in banks & thrifts and homebuilders and credit selection within the chemicals and leisure segments helped the Fund versus the Index. Credit selection and an underweighting in the BB segment as well as credit selection among bonds with 5- to 10- year durations, also contributed.
  • By contrast, credit selection and a slight underweight in the CCC segment detracted from relative performance, as the Fund focused on more liquid, less volatile issues, which lagged lower-quality bonds in the Index.
  • Choices in the shorter duration segments hampered performance, largely because the Fund was underexposed to more volatile, distressed CCC-rated securities with shorter durations. A small, out-of-Index, equity position performed well, but trailed the Index return.
  • Positioning in the weaker-performing healthcare sector and strong-performing metals/mining sector had a modestly negative impact.

Historical Returns (%)as of Sep 30, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
Fund at NAV 0.66 4.40 11.07 10.41 5.57 8.50 6.53
Fund w/Max Sales Charge -4.05 -0.62 5.80 5.28 3.86 7.46 6.01
BofA Merrill Lynch U.S. High Yield Index2 0.65 5.49 15.32 12.82 5.27 8.23 7.58
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 Sep 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:

  • An underweight and favorable credit selection among BB-rated bonds helped, as the segment lagged lower-quality issues.
  • An underweight in banks & thrifts and homebuilders and credit selection in the chemicals and leisure sectors had a positive impact.
  • Top individual contributors included a large allocation to a top U.S. wireless company and an out-of-Index equity position in a Canadian exploration & production company.
  • Credit selection was favorable in bonds with a duration from five- to 10-years.

Detractors 

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

  • Credit selection in the CCC-rated segment hurt the most, largely because the Fund favored higher-quality, less volatile bonds, which underperformed.
  • A sizable underweighting in metals/mining, along with a quality bias in this sector and in energy weighed on performance. An overweight and credit selection in healthcare further hampered results.
  • Credit selection and a small underweight among bonds with durations below five years had a negative impact, as did an overweighting in bonds with durations under two years.
  • An elevated cash position was an added headwind as high-yield bonds rallied.

Investment Outlook And Fund Positioning 

We believe the outlook for high-yield bonds remains favorable, given expectations for slow, steady growth in the U.S. economy, near full employment and modest inflation. However, when weighing upside and downside risk to this base case expectation, we feel the downside risk is increasing. The Fed recently signaled its intent to hike short-term interest rates later this year, a move that could stir short-term market volatility, dampen investors' appetite for risk and temporarily curtail high-yield asset inflows. While we believe the volatility will be short lived and remain low overall, it poses a risk, especially if inflation begins to overshoot expectations and prompts the Fed to act more aggressively then currently anticipated.

However, we expect demand for U.S. high-yield bonds to remain healthy, driven by the ongoing search for yield in a world with over $11 trillion of debt that has negative yields. At the same time, new supply is expected to be modest. Uncertainty — around the exact timing of the next Fed rate increase, the upcoming U.S. Presidential election, and the terms of Britain's exit from the European Union — coupled with high equity valuations could keep a lid on merger-and-acquisition activity, helping to curb new issuance. Though this may inhibit supply, the magnitude to which these same risks may inhibit demand for risky assets is less quantifiable and may warrant a more conservative posturing.

Fundamentals in the high-yield asset class have deteriorated somewhat, but still appear supportive. Valuations seem reasonable, with the opportunity for spreads — the difference between yields on U.S. Treasuries and high-yield bonds — to modestly tighten. The roughly 80% of the high-yield market that is outside of the energy and metals/mining sectors has a default rate of only about 0.5%, which is well below historical averages. The average default rate across the asset class could modestly increase if we see further distress in commodity-related sectors or if we see additional deterioration in the fundamentals across the asset class.

Going forward, we expect to maintain the portfolio's relatively conservative positioning. We think this approach is prudent, especially considering that the high-yield asset class has already risen 20% from its bottom last February and the current credit cycle is seven years old. Credit spreads on CCC-rated bonds have tightened by approximately 9% since the peaks in February and are currently near their long-term historic average. BB and B-rated credit spreads have compressed by over 2% and 3%, respectively, since February, and are currently about a half-percent inside their long-term average, potentially signaling they are trading slightly rich, compared to their long-term average. In short, while we remain cautiously optimistic that we will see further spread tightening, we see risk increasing given current valuations. By seeking to protect downside risk and minimizing volatility, we believe we can help the Fund stay ahead of the Index in downturns, while still capturing most of the upside during rallies, helping to drive superior long-term performance.

The Fund's conservative positioning includes a shorter duration than the Index. We also maintained a bias toward higher-quality, lower-yielding, less volatile CCC-rated issues. Lastly, we modestly increased the Fund's stake in higher-quality bonds with credit ratings of BB or higher, as well as its loan and equity exposure.

We added to our energy allocation this quarter, bringing it closer to that of the Index. However, we kept our focus on high-quality, low-cost producers, mid-stream companies and refiners that we believe can survive a lower-for-longer oil price environment. Lastly, we increased our technology weight, taking advantage of new issues coming to market with attractive pricing, strong fundamental growth prospects and attractive free cash flow.

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

BBB 6.20
BB 35.13
B 41.93
CCC or Lower 13.83
Not Rated 2.91
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 the high-yield bond department 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 was an analyst specializing in distressed debt securities at Cowen & Company and later at Amroc Investments, L.P.

Mike earned a B.S. from the from the University at Albany - SUNY and an MBA from the University of Chicago. He is a member of the CFA Institute, the Boston Security Analysts Society, the Dean’s Advisory Board, School of Business, University at Albany - SUNY and a member of the board of trustees for the University at Albany Foundation. 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: Sep 30, 2016

Commentary

Download - Last updated: Sep 30, 2016

Attribution

Download - Last updated: Sep 30, 2016

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

Download

SAI

Download - Last updated: Mar 1, 2016

Think Performance Think Eaton Vance

Download - Last updated: Sep 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