Overview

Historical Returns (%)as of Sep 30, 2017

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
Fund at NAV 0.76 1.63 5.79 7.51 5.69 4.99
BofA Merrill Lynch U.S. High Yield Index1 0.90 2.04 7.05 9.06 5.86 6.38 5.22
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. Source: Eaton Vance and RIMES.

Fund Factsas of Sep 30, 2017

Class I2$ Inception 03/18/2014
Investment Objective High current income
Total Net Assets $254.4M
Minimum Investment $5000000
CUSIP G2918S702

Top 10 Issuers (%)2as of Sep 30, 2017

Sprint Corp
Cablevision System Corp
Valeant Pharmaceuticals
Ardagh Packaging Finance
HCA Holdings Inc
Burger King
Charter Comm Hlds
Seven Generations Energy
Dell Inc
Western Digital Corp
Total 14.49

Portfolio Management

Michael W. Weilheimer, CFA Managed Fund since inception
Linda Carter, CFA Managed Fund since inception
Kelley G. Baccei Managed Fund since 2014
Jeffrey D. Mueller Managed Fund since 2016

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 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 Sep 30, 2017

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
Fund at NAV 0.76 1.63 5.79 7.51 5.69 4.99
BofA Merrill Lynch U.S. High Yield Index1 0.90 2.04 7.05 9.06 5.86 6.38 5.22
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. Source: Eaton Vance and RIMES.

Calendar Year Returns (%)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Fund at NAV -1.88 13.32
BofA Merrill Lynch U.S. High Yield Index1 2.19 -26.39 57.51 15.19 4.38 15.58 7.42 2.50 -4.64 17.49

Fund Facts

Class I2$ Inception 03/18/2014

NAV History

Date NAV NAV Change
Oct 18, 2017 $11.91 $0.00
Oct 17, 2017 $11.91 $0.01
Oct 16, 2017 $11.90 $0.01
Oct 13, 2017 $11.89 $0.00
Oct 12, 2017 $11.89 -$0.01
Oct 11, 2017 $11.90 -$0.01
Oct 10, 2017 $11.91 $0.01
Oct 06, 2017 $11.90 $0.00
Oct 05, 2017 $11.90 $0.01

Distribution History3

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 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 (%)2as of Sep 30, 2017

Corporate Bonds 91.98
Floating-Rate Loans 4.18
Cash 3.01
Common Stocks 0.48
Other Investments 0.35
Total 100.00

Portfolio Statisticsas of Sep 30, 2017

Number of Issuers 271
Number of Holdings 483
Average Coupon 6.63%
Average Maturity 6.07 yrs.
Average Effective Maturity 3.61 yrs.
Average Duration 2.71 yrs.
Average Price $104.94

Sector Breakdown (%)2as of Sep 30, 2017

Energy 14.62
Telecommunications 9.81
Healthcare 9.60
Technology 9.34
Cable/Satellite TV 7.01
Services 6.35
Gaming 3.90
Containers 3.45
Metals/Mining 3.16
Utilities 2.66
View All

Credit Quality (%)4as of Sep 30, 2017

BBB 4.41
BB 36.46
B 48.25
CCC or Lower 8.70
Not Rated 2.18
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 (%)2as of Sep 30, 2017

Less Than 1 Year 0.13
1 To 3 Years 7.14
3 To 5 Years 19.52
5 To 10 Years 71.55
10 To 20 Years 1.18
20 To 30 Years 0.34
More Than 30 Years 0.13
Total 100.00

Assets by Country (%)5,6as of Sep 30, 2017

United States 84.44
Canada 6.66
Luxembourg 2.70
Ireland 1.78
United Kingdom 1.48
Other 2.92

Fund Holdings2,7as of Aug 31, 2017

Holding Coupon Rate Maturity Date % of Net Assets
USD FX SPOT RECEIVABLE 34.26%
United States Dollar 4.52%
EUR FX SPOT RECEIVABLE 4.35%
Sprint Corp 7.88% 09/15/2023 1.19%
First Data Corp 7.00% 12/01/2023 0.76%
HCA Healthcare Inc 6.25% 02/15/2021 0.76%
Antero Resources Corp 5.38% 11/01/2021 0.65%
Concho Resources Inc 5.50% 04/01/2023 0.62%
Owens-Brockway Glass Container Inc 5.88% 08/15/2023 0.62%
Tronox Finance LLC 6.38% 08/15/2020 0.61%
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 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

A Word On The Markets as of Jun 30, 2017

High-yield bonds posted a solid gain in the second quarter, benefiting early on from strong first-quarter earnings reports and optimism over potential tax changes under President Trump. Signs that the U.S. economy was slowly recovering prompted the Federal Reserve (the Fed) to move ahead with its second short-term interest rate increase this year, but 10-year Treasury bond yields actually pulled back slightly. A rally in the equity market and improved fundamentals were added tailwinds.

Data released in the second quarter showed improvement in the fundamentals of the average high yield issuer. First-quarter revenue for high-yield bond issuers grew for the fifth consecutive quarter. Earnings growth also saw modest improvement, helping to reduce high-yield issuers' debt levels. According to JPMorgan, the trailing 12-month (par-weighted) default rate fell to 1.50%, down from 3.57% at the beginning of the year. New issuance saw a significant decrease compared to first-quarter levels, while demand for high-yield bonds slowed, with net-outflows perhaps reflecting investors' growing sense that valuations were becoming full. Over the three-month period, average yields in the asset class contracted from 5.88% to 5.68%.

The biggest headwind this quarter was energy, the largest sector in the BofA Merrill Lynch U.S. High Yield Index (the Index).1 Energy bonds were pressured by volatile oil prices, which dipped in June below $43 per barrel. The remaining sectors in the Index, however, posted modest or solid gains, led by banks & thrifts, leisure and healthcare.

For the three months ending 30 June 2017, the Index returned 2.14%, beating the 1.45% gain of the Bloomberg Barclays U.S. Aggregate Bond Index,8 but lagging the 3.09% return of the S&P 500 Index.9 Within the Index, higher-quality and longer-duration issues posted the strongest returns.

Performance Summary 

Eaton Vance International (Ireland) U.S. High Yield Fund Class M2$ (the Fund) posted a total return of 2.04% this quarter, which was slightly behind the return of the Index.

  • The Fund's conservative positioning aided relative performance, as higher-quality issues outperformed. Our lower-risk posture helped drive favourable credit selection, particularly in the CCC-rated segment and the energy sector. In terms of sectors, credit selection in the services and healthcare sectors was the largest contributor to outperformance.
  • Credit selection across most duration segments was favourable, led by outperformance from bonds in the two- to five-year duration category.
  • By contrast, our underweight in longer-duration issues hurt relative performance, as longer-duration bonds outperformed.
  • Sector allocations also nicked relative performance, largely because of a sizable underweight in the top-performing banks & thrifts sector. A small non-Index cash position was an added headwind in an up market.

Historical Returns (%)as of Jun 30, 2017

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
Fund at NAV 0.17 2.10 4.10 10.60 4.44 4.86
BofA Merrill Lynch U.S. High Yield Index1 0.11 2.14 4.91 12.75 4.47 6.91
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. Source: Eaton Vance and RIMES.

Fund Factsas of Jun 30, 2017

Class I2$ Inception 03/18/2014

Contributors 

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

  • Credit selection in the two- to five-year duration category helped most, with an added contribution from bonds with durations between zero and two years.
  • Our higher-quality bias drove favourable selection in the CCC-rated category, while an underweight in this segment also helped.
  • Selection in the services helped, largely due to an overweight in a for-profit education issue that outperformed. Our focus on higher-quality exploration and production companies aided selection in the energy sector.
  • Healthcare, the second largest sector in the portfolio also outperformed, led by an out-of-Index position in a point-of-care diagnostics company.

Detractors 

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

  • A sizable overweight in bonds with durations under two years detracted, as shorter duration bonds underperformed.
  • An underweight and credit selection in the BB-rated segment hindered performance.
  • Underweights and credit selection in the top-performing banks & thrifts and diversified financial services sectors, as well as selection in the metals/mining sector nicked results.
  • A small non-Index position in the equity of high yield issuers was a slight headwind.

Investment Outlook And Fund Positioning 

We believe the economic backdrop for high-yield bonds remains supportive, given modest U.S. economic growth, near full employment and the Fed's measured approach to increasing interest rates. In addition, fundamentals within the asset class have been modestly improving. New high-yield bond issuance seems likely to moderate going forward, while low yields around the world should continue to fuel demand.

There are potential downside risks. Valuations in the asset class are near the upper end of their historical range. Despite increased geopolitical volatility, the yield differential between the high-yield and Treasury bond markets has continued to narrow, which may indicate that investors searching for yield have become complacent. Due in part to uncertainty over Congress's ability to deliver on tax reform and meaningful fiscal stimulus, we think there's increased potential for elevated volatility moving forward. A stock market decline or further energy price volatility could present further headwinds for the asset class.

The Fund is maintaining a slightly defensive posture, with less credit risk than the Index. The Fund is underweighted the CCC-rated segment, favoring higher-quality, lower yielding CCC-rated issues. The Fund ended the quarter with an average duration of about 3.0 years, versus the Index duration of 3.7 years. To reduce volatility, we have a non-benchmark, roughly 5% stake in bank loans. The Fund ended the quarter with overweights in technology and services. Another notable bias is in healthcare, the third largest sector in the Fund. Going forward, we hope to offset the Fund's conservative positioning with above-average credit selection.

Credit Quality (%)4as of Jun 30, 2017

BBB 4.74
BB 35.23
B 48.40
CCC or Lower 10.14
Not Rated 1.49
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.

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 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.

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

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

 
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. She is responsible for buy and sell decisions, portfolio construction and risk management for the firm’s high-yield strategies. She joined Eaton Vance in 1998.

Linda began her career in the investment management industry in 1983. Before joining Eaton Vance, she was a portfolio manager at John Hancock Investment Advisers. She also served as a senior investment officer at Allmerica Financial and was affiliated with United Business Services.

Linda earned a B.S. from the University of Massachusetts and an M.S. from Boston College. She is a member of the Boston Security Analysts Society and is a CFA charterholder.

Education
  • B.S. University of Massachusetts
  • M.S. Boston College

Experience
  • Managed Fund since inception

 
Biography

Kelley G. Baccei

Vice President, Eaton Vance Management
Joined Eaton Vance 2005

Kelley Baccei is a vice president of Eaton Vance Management and a portfolio manager on Eaton Vance’s high-yield team. She is responsible for buy and sell decisions and portfolio construction. She joined Eaton Vance in 2005.

Kelley began her career in the investment management industry in 2000. Before joining Eaton Vance, she was the director of high-yield distressed research at Fieldstone Capital Group. Previously, she was associate director of fixed-income research at Scotia Capital Markets, Inc.

Kelley earned a B.A. from Boston College and a certificate in credit analysis from New York University.

Education
  • B.A. Boston College

Experience
  • Managed Fund since 2014

 
Biography

Jeffrey D. Mueller

Vice President, Eaton Vance Management (International) Limited
Joined Eaton Vance 2015

Jeffrey Mueller is a vice president of Eaton Vance Management (International) Limited and a global 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 leads investment management and credit research for all non-U.S. high-yield opportunities. He joined Eaton Vance in 2015.

Jeff began his career in the investment management industry in 2004. Before joining Eaton Vance, he was a high-yield portfolio manager with Threadneedle Asset Management. He was previously affiliated with Centaurus Capital Ltd. and Amaranth Advisors LLC.

Jeff earned a B.B.A. from the University of Wisconsin at Madison. He was named in Financial News’ high-profile "Rising Stars in Asset Management" list in 2016, which highlights the top 40 investment management professionals in Europe under the age of 40.

Education
  • B.B.A. University of Wisconsin at Madison

Experience
  • Managed Fund since 2016

 

Literature

Literature

Fact Sheet (English)

Download - Last updated: Sep 30, 2017

Fact Sheet (Latin America)

Download - Last updated: Aug 31, 2017

Commentary (English)

Download - Last updated: Sep 30, 2017

Commentary (Latin America)

Download - Last updated: Jun 30, 2017

Attribution

Download - Last updated: Jun 30, 2017

Annual Report (Spanish)

Download - Last updated: Dec 31, 2016

Annual Report (English)

Download - Last updated: Dec 31, 2016

Eaton Vance International (Ireland) Funds Full Prospectus (English)

Download - Last updated: Dec 23, 2016

Prospectus Supplement (English)

Download - Last updated: Dec 23, 2016

Semiannual Report (Spanish)

Download - Last updated: Jun 30, 2016

Semiannual Report (English)

Download - Last updated: Jun 30, 2016