Overview

Short-Duration High Yield investments have historically provided strong returns during periods of rising rates, compared to other fixed-income asset classes. Additionally, Eaton Vance has had strong risk-adjusted returns since fund inception.1

Historical Returns (%)as of Dec 31, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
Fund at NAV 1.20 1.67 9.39 9.39 3.59 4.69
BofA Merrill Lynch U.S. High Yield Cash Pay BB-B 1-3 Year Index2 1.01 1.47 10.56 10.56 4.18 5.75 5.42
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. Total return prior to the commencement of the class reflects returns of the Short Duration High Income Portfolio, the separate registered investment company in which the Fund invests. Prior returns are adjusted to reflect any applicable sales charge (but were not adjusted for other expenses). If adjusted for other expenses, returns would be lower. The share class has no sales charge.

Fund Factsas of Dec 31, 2016

Class I Inception 11/01/2013
Performance Inception 02/21/2012
Investment Objective Total return
Total Net Assets $39.0M
Total Net Assets of Portfolio3 $61.3M
Minimum Investment $250000
Expense Ratio (Gross)4 1.54%
Expense Ratio (Net)4,5 0.65%
CUSIP 27826A839

Top 10 Issuers (%)6as of Sep 30, 2016

Sprint Communications Inc
Schaeffler Hldg Fin BV
Sabine Pass LNG LP
Asurion LLC
Laureate Education Inc
McGraw-Hill Global Ed
DISH DBS Corp
National Pizza
Reynolds Group
Alere Inc
Total 23.30

Portfolio Management

Michael W. Weilheimer, CFA Managed Fund since inception

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

About Risk 

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. No Fund is a complete investment program and you may lose money investing in a Fund. The Fund may engage in other investment practices that may involve additional risks and you should review the Fund prospectus for a complete description.


Performance

Historical Returns (%)as of Dec 31, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
Fund at NAV 1.20 1.67 9.39 9.39 3.59 4.69
BofA Merrill Lynch U.S. High Yield Cash Pay BB-B 1-3 Year Index2 1.01 1.47 10.56 10.56 4.18 5.75 5.42
Morningstar™ High Yield Bond Category7 1.73 1.69 13.30 13.30 3.23 6.17
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. Total return prior to the commencement of the class reflects returns of the Short Duration High Income Portfolio, the separate registered investment company in which the Fund invests. Prior returns are adjusted to reflect any applicable sales charge (but were not adjusted for other expenses). If adjusted for other expenses, returns would be lower. The share class has no sales charge.

Calendar Year Returns (%)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Fund at NAV 6.07 1.43 0.20 9.39
BofA Merrill Lynch U.S. High Yield Cash Pay BB-B 1-3 Year Index2 3.43 -14.34 40.37 12.05 4.29 10.21 6.15 1.97 0.30 10.56

Fund Facts

Expense Ratio (Gross)4 1.54%
Expense Ratio (Net)4,5 0.65%
Class I Inception 11/01/2013
Performance Inception 02/21/2012
Distribution Frequency Monthly

Yield Information8as of Dec 31, 2016

Distribution Rate at NAV 4.39%
Subsidized SEC 30-day Yield 3.74%
Unsubsidized SEC 30-day Yield 3.51%

NAV History

Date NAV NAV Change
Jan 13, 2017 $9.82 $0.01
Jan 12, 2017 $9.81 $0.00
Jan 11, 2017 $9.81 -$0.01
Jan 10, 2017 $9.82 $0.01
Jan 09, 2017 $9.81 -$0.01
Jan 06, 2017 $9.82 $0.00
Jan 05, 2017 $9.82 $0.01
Jan 04, 2017 $9.81 $0.02
Jan 03, 2017 $9.79 $0.00
Dec 30, 2016 $9.79 $0.00

Distribution History9

Ex-Date Distribution Reinvest NAV
Dec 30, 2016 $0.03638 $9.79
Nov 30, 2016 $0.03746 $9.71
Oct 31, 2016 $0.03760 $9.73
Sep 30, 2016 $0.03609 $9.74
Aug 31, 2016 $0.03653 $9.72
Jul 29, 2016 $0.03541 $9.66
Jun 30, 2016 $0.03658 $9.59
May 31, 2016 $0.03467 $9.62
Apr 29, 2016 $0.03244 $9.59
Mar 31, 2016 $0.03224 $9.49
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 History9

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

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

About Risk 

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. 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 (%)6as of Sep 30, 2016

Corporate Bonds 81.69
Floating-Rate Loans 10.26
Other Investments 5.06
Cash 2.99
Total 100.00

Portfolio Statisticsas of Sep 30, 2016

Number of Issuers 102
Number of Holdings 125
Average Yield to Maturity 5.15%
Average Coupon 5.85%
Average Maturity 3.30 yrs.
Average Effective Maturity 2.62 yrs.
Average Price $101.88
Average Duration 1.45 yrs.

Sector Breakdown (%)6as of Sep 30, 2016

Telecommunications 10.79
Energy 10.46
Automotive & Auto Parts 6.39
Healthcare 6.17
Services 5.90
Technology 5.50
Div. Financial Services 5.22
Gaming 4.77
Cable/Satellite TV 4.59
Utilities 3.61
View All

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

BBB 10.08
BB 40.23
B 30.93
CCC or Lower 15.10
Not Rated 3.65
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 (%)6as of Sep 30, 2016

Less Than 1 Year 10.71
1 To 3 Years 38.38
3 To 5 Years 40.52
5 To 10 Years 6.81
10 To 20 Years 3.43
20 To 30 Years 0.16
More Than 30 Years 0.00
Total 100.00

Assets by Country (%)11,12as of Sep 30, 2016

United States 82.07
Canada 4.71
Luxembourg 3.48
Netherlands 2.73
Ireland 2.40
Bermuda 1.78
Other 2.83

Fund Holdings6,13as of Nov 30, 2016

Holding Coupon Rate Maturity Date % of Net Assets
EV Cash Reserves Fund LLC 0.00% 4.14%
MHGE Parent LLC / MHGE Parent Finance Inc 8.50% 08/01/2019 2.40%
Asurion 8.50% 03/03/2021 2.24%
Sprint Communications Inc 9.00% 11/15/2018 2.14%
Hilton USA Trust 2013-HLT 4.60% 11/05/2030 1.85%
MGM Resorts International 6.75% 10/01/2020 1.83%
CIT Group Inc 5.50% 02/15/2019 1.77%
PBF Holding Co LLC / PBF Finance Corp 8.25% 02/15/2020 1.75%
NXP BV / NXP Funding LLC 3.75% 06/01/2018 1.72%
General Motors Financial Co Inc 3.10% 01/15/2019 1.68%
View All

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

About Risk 

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. 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

No commentary information is currently available.

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

About Risk 

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. 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. Fund primarily invests in an affiliated investment company (Portfolio) with the same objective(s) and policies as the Fund and may also invest directly. References to investments are to the aggregate holdings of the Fund and the Portfolio.

About Risk 

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. 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 inception


Literature

Literature

Fact Sheet

Download - Last updated: Sep 30, 2016

Annual Report

Download - Last updated: Oct 31, 2016

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

Semi-Annual Report

Download - Last updated: Apr 30, 2016

Summary Prospectus

Download - Last updated: Mar 1, 2016

XBRL

Download - Last updated: Mar 22, 2016