Overview

Income Fund of Boston has generated mostly excess returns above its peer group since the current portfolio manager began managing the Fund.1

As of 03/31/2017

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

Historical Returns (%)as of Mar 31, 2017

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
05/31/2017
Fund at NAV 0.64 1.74 3.91 10.39 4.24 6.45 6.27
Fund w/Max Sales Charge -4.15 -3.11 -1.10 5.11 2.54 5.40 5.76
BofA Merrill Lynch U.S. High Yield Index2 0.89 1.82 4.80 13.85 4.73 7.32 7.34
03/31/2017
Fund at NAV -0.05 2.08 2.08 11.35 4.07 6.10 6.29
Fund w/Max Sales Charge -4.81 -2.84 -2.84 6.13 2.37 5.07 5.77
BofA Merrill Lynch U.S. High Yield Index2 -0.21 2.71 2.71 16.88 4.62 6.85 7.34
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 May 31, 2017

Class A Inception 06/15/1972
Investment Objective High current income
Total Net Assets $6.2B
Minimum Investment $1000
Expense Ratio3 0.99%
CUSIP 277907101

Top 10 Issuers (%)4as of May 31, 2017

Sprint Corp
Cablevision Systems Corp
Valeant Pharmaceuticals
First Data Corp
HCA Inc
Ardagh Packaging Finance
Multiplan Inc
Seven Generations Energy
Dell Inc
MGM Resort Intl
Total 14.21

Portfolio Management

Michael W. Weilheimer, CFA Managed Fund since 1996
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 increase both the risk and return potential of the Fund), 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. 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 Mar 31, 2017

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
05/31/2017
Fund at NAV 0.64 1.74 3.91 10.39 4.24 6.45 6.27
Fund w/Max Sales Charge -4.15 -3.11 -1.10 5.11 2.54 5.40 5.76
BofA Merrill Lynch U.S. High Yield Index2 0.89 1.82 4.80 13.85 4.73 7.32 7.34
Morningstar™ High Yield Bond Category5 0.71 1.50 4.06 11.53 3.27 6.09 5.85
03/31/2017
Fund at NAV -0.05 2.08 2.08 11.35 4.07 6.10 6.29
Fund w/Max Sales Charge -4.81 -2.84 -2.84 6.13 2.37 5.07 5.77
BofA Merrill Lynch U.S. High Yield Index2 -0.21 2.71 2.71 16.88 4.62 6.85 7.34
Morningstar™ High Yield Bond Category5 -0.21 2.31 2.31 13.52 3.15 5.56 5.86
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 (%)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Fund at NAV 2.25 -30.31 57.07 14.84 4.58 13.40 7.29 2.54 -2.05 12.66
BofA Merrill Lynch U.S. High Yield Index2 2.19 -26.39 57.51 15.19 4.38 15.58 7.42 2.50 -4.64 17.49

Fund Facts

Expense Ratio3 0.99%
Class A Inception 06/15/1972
Distribution Frequency Monthly

Yield Information6as of May 31, 2017

Distribution Rate at NAV 5.46%
SEC 30-day Yield 3.67%

Morningstar Rating™as of May 31, 2017

Time Period Rating Funds in
High Yield Bond
Category
Overall *** 591
3 Years **** 591
5 Years *** 468
10 Years *** 317
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
Jun 23, 2017 $5.80 $0.00
Jun 22, 2017 $5.80 $0.00
Jun 21, 2017 $5.80 -$0.01
Jun 20, 2017 $5.81 -$0.01
Jun 19, 2017 $5.82 $0.00
Jun 16, 2017 $5.82 $0.00
Jun 15, 2017 $5.82 -$0.01
Jun 14, 2017 $5.83 $0.00
Jun 13, 2017 $5.83 $0.01
Jun 12, 2017 $5.82 $0.00

Distribution History7

Ex-Date Distribution Reinvest NAV
May 31, 2017 $0.02697 $5.82
Apr 28, 2017 $0.02610 $5.81
Mar 31, 2017 $0.02697 $5.77
Feb 28, 2017 $0.02436 $5.80
Jan 31, 2017 $0.02765 $5.76
Dec 30, 2016 $0.02765 $5.73
Nov 30, 2016 $0.02676 $5.66
Oct 31, 2016 $0.02765 $5.70
Sep 30, 2016 $0.02676 $5.73
Aug 31, 2016 $0.02765 $5.72
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 increase both the risk and return potential of the Fund), 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. 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 May 31, 2017

Corporate Bonds 87.09
Floating-Rate Loans 7.24
Cash 4.61
Other Investments 0.54
Common Stocks 0.47
Preferred Stock 0.05
Total 100.00

Portfolio Statisticsas of May 31, 2017

Number of Issuers 299
Number of Holdings 554
Average Coupon 6.56%
Average Maturity 5.71 yrs.
Average Effective Maturity 3.68 yrs.
Average Duration 2.80 yrs.
Average Price $104.11

Sector Breakdown (%)4as of May 31, 2017

Energy 14.58
Healthcare 10.73
Technology 9.88
Telecommunications 8.98
Cable/Satellite TV 6.98
Services 5.19
Metals/Mining 3.55
Gaming 3.53
Retail 2.89
Containers 2.79
View All

Credit Quality (%)8as of May 31, 2017

BBB 5.41
BB 35.37
B 46.88
CCC or Lower 10.02
Not Rated 2.32
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 May 31, 2017

Less Than 1 Year 0.86
1 To 3 Years 7.01
3 To 5 Years 24.49
5 To 10 Years 65.89
10 To 20 Years 1.11
20 To 30 Years 0.47
More Than 30 Years 0.18
Total 100.00

Assets by Country (%)9,10as of May 31, 2017

United States 85.23
Canada 6.11
Ireland 2.22
Luxembourg 2.03
France 1.10
Other 3.31

Fund Holdings4,11as of Apr 30, 2017

Holding Coupon Rate Maturity Date % of Net Assets
EV Cash Reserves Fund LLC 0.00% 2.76%
MPH Acquisition Holdings LLC 7.13% 06/01/2024 0.99%
First Data Corp 7.00% 12/01/2023 0.85%
Sprint Corp 7.88% 09/15/2023 0.77%
Asurion 8.50% 03/03/2021 0.75%
Seven Generations Energy Ltd 6.75% 05/01/2023 0.58%
Laureate Education Inc 9.25% 09/01/2019 0.55%
Jaguar Holding Co II / Pharmaceutical Product Development LLC 6.38% 08/01/2023 0.55%
Valeant Pharmaceuticals International 6.38% 10/15/2020 0.54%
Zebra Technologies Corp 7.25% 10/15/2022 0.53%
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 increase both the risk and return potential of the Fund), 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. 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 Mar 31, 2017

High-yield bonds started the year strong, benefiting from post-election optimism regarding potential tax reform, deregulation and fiscal stimulus. Favorable fourth-quarter earnings reports and improving economic data also helped. Market conditions, however, weakened in March. Oil prices started to slide, pressuring returns in energy, the largest sector weighting in the BofA Merrill Lynch U.S. High Yield Index (the Index).2 In addition, concern about an accelerated timetable for interest rate hikes sapped investors' appetite for risk, undermining demand. Concurrently, new high-yield bond issuance surged as refinancings rose ahead of further interest-rate increases or possible tax changes affecting the deductibility of interest expenses. The Federal Reserve's (Fed's) March 15 decision to inch its key target rate higher had little impact on high yield, but the asset class did see inflows pick up as expectations for the pace of future rate increases eased. This tailwind was somewhat offset by Republicans' inability to repeal and replace the Affordable Care Act, raising questions about when and if the new administration would be able to pass much-anticipated tax reform and meaningful fiscal stimulus.

High-yield bond fundamentals continued to improve, as evidenced by better revenue and earnings growth numbers. Corporate leverage modestly decreased for the second consecutive quarter due to improved earnings and interest coverage, a measure of high-yield issuers' ability to service their debt obligations. The trailing 12-month default rate declined to 1.90% at quarter end, down from 3.57% at the start of the year, due to the fact that Q1 2016's elevated defaults in the energy and metals/mining sectors have now rolled off the trailing 12-month period. The default rate ex-energy and metals/mining issuers is currently 0.65%. Average yields on high-yield bonds tightened to 5.88%, and prices modestly improved.

For the three months ended March 31, 2017, the Index returned 2.71%, beating the 0.82% gain of the Bloomberg Barclays U.S. Aggregate Bond Index,12 but lagging the 6.07% return of the S&P 500 Index.13 Within the Index, lower-quality and longer-duration issues posted the strongest gains.

Performance Summary 

Eaton Vance Income Fund of Boston (the Fund) posted a modest gain at net asset value for the quarter that was slightly behind the return of the Index.

  • The Fund's higher-quality, lower-volatility bias, notably in the CCC- and B-rated segments and the energy sector, protected the Fund in March, but hindered performance for the quarter, as lower-quality issues outperformed.
  • Duration14 positioning hampered performance, largely because of the Fund's overweight in shorter-duration issues, which lagged longer-duration bonds, and credit selection in the two-to five-year duration segment.
  • By contrast, the Fund benefited from a small equity position, mostly acquired through restructuring, and an underweight in the weaker-performing BB category.
  • Credit selection was positive in the services, diversified financial services, air transportation and chemicals segments, which generally benefited from expectations of improved economic growth.

Historical Returns (%)as of Mar 31, 2017

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
Fund at NAV -0.05 2.08 2.08 11.35 4.07 6.10 6.29
Fund w/Max Sales Charge -4.81 -2.84 -2.84 6.13 2.37 5.07 5.77
BofA Merrill Lynch U.S. High Yield Index2 -0.21 2.71 2.71 16.88 4.62 6.85 7.34
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 Mar 31, 2017

Class A Inception 06/15/1972
Expense Ratio3 0.99%

Contributors 

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

  • A small post-restructuring equity position benefited performance most.
  • An underweight in the weaker-performing BB segment also had a positive impact.
  • Credit selection and an overweight in the services segment further benefited performance, led by an overweight in bonds issued by a commercial equipment rental company that returned over 40% for the quarter.
  • Credit selection in the air transportation, diversified financial services and chemicals categories positively affected Fund performance. Top individual contributors included overweights in bonds issued by a commercial equipment rental company, an aircraft leasing operation, a rebounding corporate jet charter operation and a producer of titanium dioxide.

Detractors 

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

  • Credit selection in the CCC- and B-rated segments hurt, largely because the Fund favored higher-quality, less volatile bonds that lagged lower-quality issues.
  • Credit selection among two- to five-year duration bonds, along with an overweight in securities with durations of two years or less detracted from Fund performance.
  • Credit selection and relative weighting in telecommunications and retail further detracted from Fund performance. The Fund's quality bias also hindered performance in energy.

Investment Outlook And Fund Positioning 

We think the backdrop for high-yield bonds remains supportive. Going forward, we expect modest economic growth to result in relatively stable bond prices. While short-term interest rates will likely increase, we don't think the economy will overheat to the point where the Fed becomes overly aggressive. What is less clear is when, or if, proposed pro-growth initiatives will be enacted and what impact that will have on investment markets.

Some of the government's proposed initiatives, if approved, could have a positive effect on high-yield bonds. For example, if the tax deductibility of corporate interest expense is no longer allowed, that could, on the margin, lead to less new issuance in high-yield. At the same time, a lower tax rate on interest income earned by high-income filers could boost demand for high yield. The implementation of tax reform or infrastructure spending plans could also help extend the duration of the U.S. economic recovery, in turn aiding high-yield fundamentals and driving down default rates.

We recognize, however, that there also are potential headwinds for the asset class. Volatility could be elevated, especially given uncertainty over the Republicans' ability to deliver on tax reform and fiscal stimulus. A choppy market may dampen demand for high-yield bonds. Disappointing progress in Washington or projected corporate earnings reports also could cause a stock market decline that could pressure high-yield bond returns. Additionally, if OPEC (Organization of the Petroleum Exporting Countries) doesn't follow through on its planned production cuts, oil prices could pull back further, hurting the energy sector.

Given relatively high valuations on high-yield bonds and the potential for a pickup in volatility, we've kept the Fund conservatively positioned, maintaining a shorter duration and higher-quality bias than the Index. By employing this strategy aimed at protecting the Fund's downside and minimizing volatility, we believe we can stay ahead of the Index in market declines and capture much of the upside in rallies, which would help drive long-term relative performance. At period end, the Fund's average duration was 3.2 years, compared to the Index's duration of 3.9 years. In addition, the Fund's biggest credit concentration was in B-rated bonds, which generally have less duration. Lower duration usually means bond prices decline less as credit spreads widen.

At period-end, the Fund had a small allocation to the higher-quality split-rated BB/BBB segment and in the CCC and B rated segments, representing a bias toward less volatile issues. In the energy sector, we've continued to favor higher-quality, lower-cost producers that, in our view, are less susceptible to price volatility. During the quarter, we added to some of our core exploration and production names and took advantage of opportunities in energy services. Our energy stake at quarter end was roughly in line with the sector's approximately 14% weight in the Index. In healthcare, the second largest sector in the Fund, we had a bias toward bonds issued by healthcare services providers and companies that serve to reduce cost, such as contract research organizations (CROs). The Fund was underweight hospital bonds, which could be vulnerable to a repeal of the Affordable Care Act, and had a shorter duration focus in the pharmaceutical segment.

Credit Quality (%)8as of Mar 31, 2017

BBB 4.90
BB 35.41
B 44.64
CCC or Lower 12.67
Not Rated 2.38
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 increase both the risk and return potential of the Fund), 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. 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 increase both the risk and return potential of the Fund), 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. 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 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
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. 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: Mar 31, 2017

Commentary

Download - Last updated: Mar 31, 2017

Attribution

Download - Last updated: May 31, 2017

Annual Report

Download - Last updated: Oct 31, 2016

Full Prospectus

Download - Last updated: Mar 1, 2017

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

Download

SAI

Download - Last updated: Mar 1, 2017

Semi-Annual Report

Download - Last updated: Apr 30, 2017

Summary Prospectus

Download - Last updated: Mar 1, 2017

XBRL

Download - Last updated: Mar 13, 2017