Hedging Rising Rates
Investment IncomeOverview
| 3 Months | YTD | 1 Year | 3 Years | 5 Years | Life of Fund | |
| 4/30/2012 | ||||||
|---|---|---|---|---|---|---|
| Fund at NAV | 3.12 | 5.71 | — | — | — | 5.60 |
| Fund w/Max Sales Charge | 3.12 | 5.71 | — | — | — | 5.60 |
| 3/31/2012 | ||||||
| Fund at NAV | 4.30 | 4.30 | — | — | — | 4.20 |
| Fund w/Max Sales Charge | 4.30 | 4.30 | — | — | — | 4.20 |
| 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 one year is cumulative. | ||||||
| Class I2€ Inception | 07/20/2011 |
| Investment Objective | High current income |
| Total Net Assets of Fund | $118.4M |
| Minimum Investment1 | $5000000 |
| CUSIP | G2918S751 |
| Sprint Nextel Corp. | |
| ILFC | |
| Laureate Education Inc. | |
| Limited Brands Inc. | |
| Ford Motor Credit Co. | |
| Intelsat Ltd. | |
| Harrah's Entertainment | |
| Mandalay Resort Group | |
| Lyondell Chemical Co. | |
| GMAC | |
| Total | 19.95 |
| Michael W. Weilheimer, CFA | Managed Fund since inception | ||
| Thomas P. Huggins | Managed Fund since inception | ||
| Linda Carter, CFA | Managed Fund since inception | ||
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 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 non–payment 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. Derivatives 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
| 3 Months | YTD | 1 Year | 3 Years | 5 Years | Life of Fund | |
| 4/30/2012 | ||||||
|---|---|---|---|---|---|---|
| Fund at NAV | 3.12 | 5.71 | — | — | — | 5.60 |
| Fund w/Max Sales Charge | 3.12 | 5.71 | — | — | — | 5.60 |
| 3/31/2012 | ||||||
| Fund at NAV | 4.30 | 4.30 | — | — | — | 4.20 |
| Fund w/Max Sales Charge | 4.30 | 4.30 | — | — | — | 4.20 |
| 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 one year is cumulative. | ||||||
| 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | |
| Fund at NAV | — | — | — | — | — | — | — | — | — | — |
| Class I2€ Inception | 07/20/2011 |
| Date | NAV | NAV Change |
| May 15, 2012 | $10.54 | $-0.02 |
| May 14, 2012 | $10.56 | $-0.03 |
| May 11, 2012 | $10.59 | $0.00 |
| May 10, 2012 | $10.59 | $0.01 |
| May 09, 2012 | $10.58 | $-0.02 |
| May 08, 2012 | $10.60 | $0.00 |
| May 07, 2012 | $10.60 | $0.00 |
| May 04, 2012 | $10.60 | $0.00 |
| May 03, 2012 | $10.60 | $0.02 |
| May 02, 2012 | $10.58 | $0.00 |
| Ex-Date | Distribution | Reinvest NAV |
|
No records in this table indicates that there has not been a distribution 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 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 non–payment 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. Derivatives 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
| Cash & Equivalents | 7.74 |
| U.S. Common Stocks | 0.98 |
| U.S. Corporate Bonds | 89.43 |
| Floating-Rate Loans | 1.51 |
| Other | 0.34 |
| Number of Issuers | 197 |
| Number of Holdings | 311 |
| Average Maturity | 5.98 yrs. |
| Average Price | $104.78 |
| Average Duration | 3.33 yrs. |
| Average Coupon | 7.73% |
| Average Yield to Maturity | 6.71% |
| Average Effective Maturity | 4.44 yrs. |
| Energy | 10.35 |
| Telecommunications | 9.26 |
| Services | 7.04 |
| Gaming | 5.75 |
| Health Care | 5.46 |
| Automotive & Auto Parts | 5.08 |
| Super Retail | 4.82 |
| Div. Financial Services | 4.80 |
| Cable/Satellite TV | 4.32 |
| Chemicals | 3.83 |
| BBB | 4.77 |
| BB | 35.67 |
| B | 45.26 |
| CCC or Lower | 13.07 |
| Not Rated | 1.23 |
| TOTAL | 100.00 |
| Ratings are based on Moody's, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency's investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer's current financial condition. The rating assigned to a security by a rating agency 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. If securities are rated differently by the rating agencies, the higher rating is applied. | |
| Less Than 1 Year | 8.21 |
| 1 To 3 Years | 9.54 |
| 3 To 5 Years | 19.26 |
| 5 To 10 Years | 56.32 |
| 10 To 20 Years | 5.43 |
| 20 To 30 Years | 0.24 |
| Equity/Other | 1.00 |
| TOTAL | 100 |
| Holding | Coupon Rate | Maturity Date | Weighting |
| Laureate Education Inc | 11.25% | 08/15/2015 | 1.8796% |
| Nextel Communications Inc | 6.88% | 10/31/2013 | 1.3826% |
| Mediacom Broadband LLC / Mediacom Broadband Corp | 8.50% | 10/15/2015 | 1.3112% |
| Intelsat Luxembourg SA | 11.50% | 02/04/2017 | 1.2389% |
| PVH Corp | 7.75% | 11/15/2023 | 1.1020% |
| NRG Energy Inc | 8.25% | 09/01/2020 | 1.0904% |
| Ford Motor Co | 7.45% | 07/16/2031 | 1.0688% |
| E*TRADE Financial Corp | 12.50% | 11/30/2017 | 1.0634% |
| Ford Motor Credit Co LLC | 8.00% | 12/15/2016 | 0.9862% |
| TransDigm Inc | 7.75% | 12/15/2018 | 0.9848% |
| View All | |||
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 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 non–payment 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. Derivatives 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
Quarterly Commentary
No commentary information is available.
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.
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 non–payment 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. Derivatives 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 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 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 non–payment 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. Derivatives 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
Vice President, Eaton Vance Management
Joined Eaton Vance 1990
Mike Weilheimer is a vice president of Eaton Vance Management, co-director of high-yield investments and portfolio manager on Eaton Vance's high-yield team.
Prior to joining Eaton Vance in 1990, Mike worked from 1987-1990 as an analyst specializing in distressed debt securities at Cowen & Company and then later at Amroc Investments, L.P.
Mike earned a B.S. from the University at Albany, State University of New York in 1983 and an M.B.A. from the University of Chicago in 1987. He is a CFA charterholder and a member of the CFA Institute, The Boston Securities Analyst Society and the Dean's Advisory Board, School of Business, University at Albany, State University of New York. Mike is also a member of the Board of Trustees and treasurer, Gann Academy.
Mike's commentary has appeared in Barron's, The Wall Street Journal, Barron's Online, 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
Biography
Thomas P. Huggins
Vice President, Eaton Vance Management
Joined Eaton Vance 1997
Tom Huggins is a vice president of Eaton Vance Management, co-director of high-yield investments and portfolio manager on Eaton Vance's high-yield team.
Tom joined Eaton Vance in 1997 as head trader in the high-yield department. He became co-portfolio manager in January 2000. Prior to joining Eaton Vance, Tom was affiliated with John Hancock in portfolio manager positions for three years.
Tom earned a B.S. in economics in 1990 from Northeastern University in Boston.
Tom's commentary has appeared in Bloomberg, Financial Times, The New York Times, Pittsburgh Post-Gazette, TheStreet.com and The Wall Street Journal.
Education
- B.S. Northeastern University
Experience
- Managed Fund since inception
Biography
Linda Carter, CFA
Vice President, Eaton Vance Management
Joined Eaton Vance 1998
Linda Carter is a vice president of Eaton Vance Management and portfolio manager on Eaton Vance's high-yield team.
Prior to joining Eaton Vance in 1998, Linda was a portfolio manager at John Hancock Investment Advisers. Previously, she served as a senior investment officer at Allmerica Financial. In 1983, she began her investment career as an investment analyst with United Business Services.
Linda earned a B.S. in business administration from the University of Massachusetts and an M.S. from Boston College. She is a CFA charterholder and is a member of the Boston Security Analysts Society and the CFA Institute.
Education
- B.S. University of Massachusetts
Experience
- Managed Fund since inception
Fund Literature
Fund Literature
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