Overview

Historical Returns (%)as of Sep 30, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
11/30/2016
Fund at NAV -4.24 -5.53 -0.41 0.35 5.65 4.78 5.26
Fund w/Max Sales Charge -8.77 -10.01 -5.17 -4.39 3.94 3.76 4.33
Return After Taxes on Dist w/Max Sales Charge -4.49 3.85 3.49 4.09
Return After Taxes on Dist & Sales of Fund Shares w/Max Sales Charge -1.84 3.40 3.24 3.71
Bloomberg Barclays Municipal Bond Index1 -3.73 -5.21 -0.92 -0.22 3.64 3.42 3.92
09/30/2016
Fund at NAV -0.27 0.02 5.14 7.24 7.83 6.00 6.51
Fund w/Max Sales Charge -4.99 -4.72 0.12 2.13 6.08 4.97 5.54
Return After Taxes on Dist w/Max Sales Charge 2.02 5.98 4.70 5.29
Return After Taxes on Dist & Sales of Fund Shares w/Max Sales Charge 1.87 5.05 4.18 4.64
Bloomberg Barclays Municipal Bond Index1 -0.50 -0.30 4.01 5.58 5.53 4.48 4.99
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. After-tax returns are calculated using certain assumptions, including using the highest historical individual federal income tax rates, and do not reflect the impact of state/local taxes. Actual after-tax returns depend on a shareholder's tax situation and the actual characterization of distributions and may differ from those shown. After-tax returns are not relevant to shareholders who hold shares in tax-deferred accounts or shares held by nontaxable entities. Return After Taxes on Distributions may be the same as Return Before Taxes for the same period because no taxable distributions were made during that period. Return After Taxes on Distributions and Sale of Fund Shares may be greater than or equal to Return After Taxes on Distributions for the same period because of losses realized on the sale of Fund shares. Before-tax and after-tax returns for other classes of shares offered by the Fund are different. Max Sales Charge: 4.75%.

Fund Factsas of Oct 31, 2016

Class A Inception 05/31/2011
Investment Objective Maximize after-tax total return
Total Net Assets $774.3M
Minimum Investment $1000
Expense Ratio (Gross)2 1.06%
Expense Ratio (Net)2,3 1.00%
CUSIP 27826Y571

Top 10 Holdings (%)4,5as of Oct 31, 2016

State of California Department of Water Resources
Hartford HealthCare Obligated Group
State of Illinois
State of Illinois
Care New England Health System
Tender Option Bond Trust Receipts/Certificates
Nassau County Interim Finance Authority
JPMorgan Chase Putters/Drivers Trust
Triborough Bridge & Tunnel Authority
Lancaster Port Authority
Total 14.49

Morningstar™ Ratingsas of Oct 31, 2016

Time Period Rating Rating (Load Waived) Funds in
Muni National Interm
Category
Overall **** **** 314
3 Years **** ***** 314
5 Years **** **** 274
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.

Portfolio Management

Adam A. Weigold, CFA Managed Fund since inception

The information included herein does not reflect securities deemed to be held by the Fund pursuant to financial accounting standard 140 (FAS 140).

Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding.

About Risk 

An imbalance in supply and demand in the municipal market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. There generally is limited public information about municipal issuers. As interest rates rise, the value of certain income investments is likely to decline. Longer-term bonds typically are more sensitive to interest-rate changes than shorter-term bonds. 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. Because the Fund may invest significantly in a particular sector, the Fund share value may fluctuate more than a fund with less exposure to such sector. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. 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. 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. Life of Fund
10/31/2016
Fund at NAV -1.09 -1.05 4.00 5.61 7.09 5.85 6.19
Fund w/Max Sales Charge -5.79 -5.74 -0.97 0.59 5.37 4.82 5.24
Return After Taxes on Dist w/Max Sales Charge 0.49 5.27 4.55 4.99
Return After Taxes on Dist & Sales of Fund Shares w/Max Sales Charge 0.99 4.49 4.06 4.41
Bloomberg Barclays Municipal Bond Index1 -1.05 -1.41 2.92 4.06 4.89 4.33 4.71
Morningstar™ Muni National Interm Category6 -0.85 -1.06 2.51 3.49 3.93 3.71
09/30/2016
Fund at NAV -0.27 0.02 5.14 7.24 7.83 6.00 6.51
Fund w/Max Sales Charge -4.99 -4.72 0.12 2.13 6.08 4.97 5.54
Return After Taxes on Dist w/Max Sales Charge 2.02 5.98 4.70 5.29
Return After Taxes on Dist & Sales of Fund Shares w/Max Sales Charge 1.87 5.05 4.18 4.64
Bloomberg Barclays Municipal Bond Index1 -0.50 -0.30 4.01 5.58 5.53 4.48 4.99
Morningstar™ Muni National Interm Category6 -0.36 -0.24 3.37 4.80 4.47 3.80
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. After-tax returns are calculated using certain assumptions, including using the highest historical individual federal income tax rates, and do not reflect the impact of state/local taxes. Actual after-tax returns depend on a shareholder's tax situation and the actual characterization of distributions and may differ from those shown. After-tax returns are not relevant to shareholders who hold shares in tax-deferred accounts or shares held by nontaxable entities. Return After Taxes on Distributions may be the same as Return Before Taxes for the same period because no taxable distributions were made during that period. Return After Taxes on Distributions and Sale of Fund Shares may be greater than or equal to Return After Taxes on Distributions for the same period because of losses realized on the sale of Fund shares. Before-tax and after-tax returns for other classes of shares offered by the Fund are different. Max Sales Charge: 4.75%.

Calendar Year Returns (%)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Fund at NAV 9.17 -4.99 14.15 4.03
Bloomberg Barclays Municipal Bond Index1 4.84 3.36 -2.47 12.91 2.38 10.70 6.78 -2.55 9.05 3.30

Fund Facts

Expense Ratio (Gross)2 1.06%
Expense Ratio (Net)2,3 1.00%
Class A Inception 05/31/2011
Distribution Frequency Monthly

Yield Information7as of Oct 31, 2016

Distribution Rate at NAV 1.68%
Taxable-Equivalent Distribution Rate at NAV 2.97%
SEC 30-day Yield 1.32%
Taxable-Equivalent SEC 30-day Yield 2.32%

Morningstar™ Ratingsas of Oct 31, 2016

Time Period Rating Rating (Load Waived) Funds in
Muni National Interm
Category
Overall **** **** 314
3 Years **** ***** 314
5 Years **** **** 274
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 $11.44 $0.02
Dec 01, 2016 $11.42 -$0.12
Nov 30, 2016 $11.54 -$0.05
Nov 29, 2016 $11.59 -$0.03
Nov 28, 2016 $11.62 -$0.01
Nov 25, 2016 $11.63 $0.00
Nov 23, 2016 $11.63 -$0.02
Nov 22, 2016 $11.65 -$0.02
Nov 21, 2016 $11.67 -$0.02
Nov 18, 2016 $11.69 -$0.03

Distribution History8

Ex-Date Distribution Reinvest NAV
Nov 30, 2016 $0.01848 $11.54
Oct 31, 2016 $0.01712 $12.07
Sep 30, 2016 $0.01730 $12.22
Aug 31, 2016 $0.01736 $12.27
Jul 29, 2016 $0.01739 $12.25
Jun 30, 2016 $0.01708 $12.27
May 31, 2016 $0.01559 $12.06
Apr 29, 2016 $0.01694 $12.05
Mar 31, 2016 $0.01627 $11.96
Feb 29, 2016 $0.01775 $11.91
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 History8

Ex-Date Short-Term Long-Term Reinvest NAV
Dec 01, 2016 $0.05060 $11.42
Dec 11, 2014 $0.00550 $0.00330 $11.48
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.

About Risk 

An imbalance in supply and demand in the municipal market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. There generally is limited public information about municipal issuers. As interest rates rise, the value of certain income investments is likely to decline. Longer-term bonds typically are more sensitive to interest-rate changes than shorter-term bonds. 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. Because the Fund may invest significantly in a particular sector, the Fund share value may fluctuate more than a fund with less exposure to such sector. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. 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. 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 (%)4,9as of Oct 31, 2016

Municipal Bonds 95.65
Cash 2.13
U.S. Corporate Bonds 1.28
Municipal Closed End Fund 0.94
Total 100.00

Portfolio Statisticsas of Oct 31, 2016

Number of Holdings 474
Average Coupon 4.17%
Average Maturity 9.69 yrs.
Average Effective Maturity 7.77 yrs.
Average Duration 5.94 yrs.
Average Call 7.73 yrs.
Average Price $111.86
% Subject to AMT 8.57%

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

General Obligations 23.29
Hospital 21.88
Transportation 11.58
Special Tax Revenue 6.66
Insured-General Obligations 4.60
Education 4.53
Other Revenue 3.99
Water and Sewer 3.90
Electric Utilities 2.64
Lease Revenue/Certificates of Participation 2.51
View All

Credit Quality (%)10as of Oct 31, 2016

AAA 11.45
AA 33.50
A 23.36
BBB 23.61
BB 2.34
B 1.45
CCC or Lower 1.02
Not Rated 3.27
Total 100.00
Ratings are based on Moody's, S&P or Fitch, as applicable. If securities are rated differently by the ratings agencies, the higher rating is applied. Ratings, which are subject to change, apply to the creditworthiness of the issuers of the underlying securities and not to the Fund or its shares. Credit ratings measure the quality of a bond based on the issuer's creditworthiness, with ratings ranging from AAA, being the highest, to D, being the lowest based on S&P's measures. Ratings of BBB or higher by S&P or Fitch (Baa or higher by Moody's) are considered to be investment-grade quality. Credit ratings are based largely on the ratings agency's analysis at the time of rating. The rating assigned to any particular security is not necessarily a reflection of the issuer's current financial condition and does not necessarily reflect its assessment of the volatility of a security's market value or of the liquidity of an investment in the security. Holdings designated as "Not Rated" are not rated by the national ratings agencies stated above.

Maturity Distribution (%)10as of Oct 31, 2016

Less Than 1 Year 5.57
1 To 3 Years 4.77
3 To 5 Years 7.70
5 To 10 Years 37.13
10 To 20 Years 41.16
20 To 30 Years 3.35
More Than 30 Years 0.31
Total 100.00

Assets by State (%)10,11as of Oct 31, 2016

New York 13.19
Illinois 12.80
California 10.04
Michigan 9.81
New Jersey 8.52
Texas 5.41
Pennsylvania 4.93
Massachusetts 4.31
Florida 4.12
Rhode Island 3.10
View All

Fund Holdings4,12as of Oct 31, 2016

Holding Coupon Rate Maturity Date % of Net Assets
US DOLLARS 2.29%
State of California Department of Water Resources 5.00% 12/01/2031 2.02%
Hartford HealthCare Obligated Group 1.31% 07/01/2049 1.76%
State of Illinois 5.00% 06/01/2026 1.45%
State of Illinois 5.00% 02/01/2027 1.43%
Care New England Health System 5.50% 09/01/2026 1.37%
Tender Option Bond Trust Receipts/Certificates 0.68% 09/01/2020 1.29%
Nassau County Interim Finance Authority 0.55% 11/15/2019 1.29%
JPMorgan Chase Putters/Drivers Trust 0.58% 09/01/2017 1.29%
Triborough Bridge & Tunnel Authority 1.05% 01/01/2032 1.29%
View All

The information included herein does not reflect securities deemed to be held by the Fund pursuant to financial accounting standard 140 (FAS 140).

Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding.

About Risk 

An imbalance in supply and demand in the municipal market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. There generally is limited public information about municipal issuers. As interest rates rise, the value of certain income investments is likely to decline. Longer-term bonds typically are more sensitive to interest-rate changes than shorter-term bonds. 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. Because the Fund may invest significantly in a particular sector, the Fund share value may fluctuate more than a fund with less exposure to such sector. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. 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. 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

The U.S. municipal bond market posted modestly negative returns for the third quarter of 2016, with the Bloomberg Barclays Municipal Bond Index (the Index)1 returning -0.30% for the three-month period. Following 14 consecutive months of positive performance, the Index returned -0.50% in September.

Despite the negative total return, municipal mutual fund flows were consistently positive throughout the quarter, as investors sought the tax-free income, less risk and diversification benefits of the municipal asset class. In August and September, this strong demand was met with elevated supply, resulting in a somewhat weaker technical environment at quarter-end. As of the end of the quarter, year-to-date muni bond issuance hit approximately $335 billion, up 4% compared to the same period last year, according to Thomson Reuters. The year-to-date increase in supply was due to a 15% increase in new money deals compared to the same period in 2015, an indication of renewed willingness for issuers to take on new debt to fund infrastructure and other projects.

As the quarter progressed and economic data improved, U.S. Treasury market volatility increased amid fresh uncertainty surrounding central bank policies. Short-term Treasury yields rose significantly, while the 30-year yield remained flat. Short- and intermediate-term municipal yields rose in line with Treasurys. However, the 30-year AAA municipal yield rose 29 basis points (bps), significantly underperforming its Treasury counterpart. At quarter-end, the 10-year muni/Treasury ratio stood at 94%, compared to 91% at the beginning of the quarter. Meanwhile, the 30-year ratio ended at 99%, compared to 87% on June 30.

Overall, the municipal yield curve steepened slightly during the quarter, with the two-year AAA muni yield increasing 24bps and the 30-year AAA yield increasing 29bps. Longer-duration muni bonds generally underperformed shorter-duration municipals. In terms of credit quality, below-investment-grade bonds continued to outperform higher-quality, primarily due to strength in Puerto Rico bonds.

Performance Summary 

Eaton Vance Municipal Opportunities Fund (the Fund) outperformed its benchmark, the Bloomberg Barclays Municipal Bond Index (the Index),1 at net asset value for the quarter.

  • Overweight exposure in insured Puerto Rico credits contributed to return.
  • Overweight exposure in taxable municipal bonds also aided performance relative to the Index.
  • An overweight exposure to BBB and below investment-grade credits also aided performance relative to the Index.
  • The Fund's security selection in the Electric sector hurt performance relative to the Index.

Historical Returns (%)as of Sep 30, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
Fund at NAV -0.27 0.02 5.14 7.24 7.83 6.00 6.51
Fund w/Max Sales Charge -4.99 -4.72 0.12 2.13 6.08 4.97 5.54
Return After Taxes on Dist w/Max Sales Charge 2.02 5.98 4.70 5.29
Return After Taxes on Dist & Sales of Fund Shares w/Max Sales Charge 1.87 5.05 4.18 4.64
Bloomberg Barclays Municipal Bond Index1 -0.50 -0.30 4.01 5.58 5.53 4.48 4.99
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. After-tax returns are calculated using certain assumptions, including using the highest historical individual federal income tax rates, and do not reflect the impact of state/local taxes. Actual after-tax returns depend on a shareholder's tax situation and the actual characterization of distributions and may differ from those shown. After-tax returns are not relevant to shareholders who hold shares in tax-deferred accounts or shares held by nontaxable entities. Return After Taxes on Distributions may be the same as Return Before Taxes for the same period because no taxable distributions were made during that period. Return After Taxes on Distributions and Sale of Fund Shares may be greater than or equal to Return After Taxes on Distributions for the same period because of losses realized on the sale of Fund shares. Before-tax and after-tax returns for other classes of shares offered by the Fund are different. Max Sales Charge: 4.75%.

Fund Factsas of Sep 30, 2016

Class A Inception 05/31/2011
Expense Ratio (Gross)2 1.06%
Expense Ratio (Net)2,3 1.00%

Contributors 

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

  • Security selection was a key driver for the Fund's outperformance for the quarter. Specifically, the Fund's overweight position in insured Puerto Rico credits helped performance versus the Index, as Puerto Rico was the best performing U.S. state or territory in the Index.
  • The Fund's relative performance was also boosted by an overweight exposure in taxable municipal bonds. The Bloomberg Barclays Taxable Municipal Bond Index13 outpaced the Bloomberg Barclays Municipal Index1 for the quarter.
  • The Fund's larger exposure to BBB and below investment-grade credits aided performance, as they outpaced the Index. Lower-quality bonds generally outperformed higher-quality bonds for the quarter.

Detractors 

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

  • The fund's security selection within the Electric sector detracted from performance in the quarter.

Investment Outlook And Fund Positioning 

Despite the recent volatility in Treasurys, the municipal market is likely to remain well-supported in the near term, as the intermediate and long end of the curve will likely remain anchored by slow growth, contained inflation and the expectation for low rates worldwide.

Given this outlook, we believe tax-sensitive investors will continue to seek munis as a source of yield and portfolio diversification. Attractive valuations may be another lure, as municipals ended the period cheap relative to Treasurys.

Over the next several months, we will remain highly focused on money market reform, the presidential election and Puerto Rico. Money market reform, which goes into effect in October, has driven short rates higher and we will continue to watch this development for its potential impact on longer maturity bonds.

In addition, we will monitor the presidential election and the potential for tax reform. And finally, we will closely monitor events in Puerto Rico. With the PROMESA bill signed and the federal oversight board in place, a clearer path toward bankruptcy now exists. However, cash reserves remain very tight and additional defaults in the Commonwealth may be inevitable. If future defaults in Puerto Rico disrupt the broader market, we may consider any price volatility a buying opportunity.

Additionally, given our flexible approach to the municipal bond market, we will continue to search for opportunities in taxable municipal bonds and insured bonds with distressed underlying credits. We will also continue to monitor activist- and event-driven opportunities, adding exposure when we think it is appropriate. Given this view, we believe that credit research will remain paramount. An experienced, skilled investment manager can help navigate the muni market during times of increased volatility

Credit Quality (%)10as of Sep 30, 2016

AAA 7.75
AA 38.30
A 24.77
BBB 21.23
BB 2.53
B 1.56
CCC or Lower 1.09
Not Rated 2.77
Total 100.00
Ratings are based on Moody's, S&P or Fitch, as applicable. If securities are rated differently by the ratings agencies, the higher rating is applied. Ratings, which are subject to change, apply to the creditworthiness of the issuers of the underlying securities and not to the Fund or its shares. Credit ratings measure the quality of a bond based on the issuer's creditworthiness, with ratings ranging from AAA, being the highest, to D, being the lowest based on S&P's measures. Ratings of BBB or higher by S&P or Fitch (Baa or higher by Moody's) are considered to be investment-grade quality. Credit ratings are based largely on the ratings agency's analysis at the time of rating. The rating assigned to any particular security is not necessarily a reflection of the issuer's current financial condition and does not necessarily reflect its assessment of the volatility of a security's market value or of the liquidity of an investment in the security. Holdings designated as "Not Rated" are not rated by the national ratings agencies stated above.

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

Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding.

The information included herein does not reflect securities deemed to be held by the Fund pursuant to financial accounting standard 140 (FAS 140).

About Risk 

An imbalance in supply and demand in the municipal market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. There generally is limited public information about municipal issuers. As interest rates rise, the value of certain income investments is likely to decline. Longer-term bonds typically are more sensitive to interest-rate changes than shorter-term bonds. 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. Because the Fund may invest significantly in a particular sector, the Fund share value may fluctuate more than a fund with less exposure to such sector. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. 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. No Fund is a complete investment program and you may lose money investing in a Fund. The Fund may engage in other investment practices that may involve additional risks and you should review the Fund prospectus for a complete description.

Attribution

No attribution information is currently available.

Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding.

About Risk 

An imbalance in supply and demand in the municipal market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. There generally is limited public information about municipal issuers. As interest rates rise, the value of certain income investments is likely to decline. Longer-term bonds typically are more sensitive to interest-rate changes than shorter-term bonds. 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. Because the Fund may invest significantly in a particular sector, the Fund share value may fluctuate more than a fund with less exposure to such sector. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. 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. 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
Adam A. Weigold, CFA

Adam A. Weigold, CFA

Vice President, Eaton Vance Management
Joined Eaton Vance 1998

Adam Weigold is a vice president of Eaton Vance Management and senior portfolio manager on Eaton Vance’s municipal bond team. He is responsible for buy and sell decisions, portfolio construction and risk management for the firm’s municipal bond strategies. He began his career in the investment management industry with Eaton Vance in 1998.

Adam earned a B.A. from Dartmouth College and an MBA from Boston University. He is a member of the Boston Security Analysts Society and the National Federation of Municipal Analysts. He is a CFA charterholder.

Education
  • B.A. Dartmouth College
  • M.B.A. Boston University

Experience
  • Managed Fund since inception


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: Jul 31, 2016

Full Prospectus

Download - Last updated: Dec 1, 2016

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

Download

SAI

Download - Last updated: Dec 1, 2016

Think Performance Think Eaton Vance

Download - Last updated: Sep 30, 2016

Semiannual Report

Download - Last updated: Jan 31, 2016

Summary Prospectus

Download - Last updated: Dec 1, 2016