Floating-Rate Loan Chart Book Q4 2014

Product & Portfolio Strategy Group

Floating-Rate Loan Chart Book Q4 2014

Eaton Vance

Floating-Rate Loan Chart Book

About Risk Floating-Rate Loans: 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. There can be no assurance that the liquidation of collateral securing an investment will satisfy the issuer’s obligation in the event of nonpayment or that collateral can be readily liquidated. The ability to realize the benefits of any collateral may be delayed or limited. 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. Borrowing to increase investments (leverage) will exaggerate the effect of any increase or decrease in the value of Fund investments. 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. Bank loans are subject to prepayment risk. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. Changes in the value of investments entered for hedging purposes may not match those of the position being hedged. No Fund is a complete investment program and you may lose money investing in a Fund. A Fund may engage in other investment practices that may involve additional risks and you should review a Fund prospectus for a complete description. Floating-Rate Loans – There can be no assurance that the liquidation of collateral securing an investment will satisfy the issuer’s obligation in the event of non-payment or that collateral can be readily liquidated. The ability to realize the benefits of any collateral may be delayed or limited. Commodities – The value of commodities investments will generally be affected by overall market movements and factors specific to a particular industry or commodity including weather, embargoes, tariffs, or health, political, international and regulatory developments. Credit – 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. Duration – Securities with longer durations tend to be more sensitive to interest rate changes than securities with shorter durations. Equity – Equity investment values are sensitive to stock market volatility. Foreign – Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical, or other conditions. In emerging countries, these risks may be more significant. Gov’t Agency – While certain U.S. Government-sponsored agencies may be chartered or sponsored by acts of Congress, their securities are neither issued nor guaranteed by the U.S. Treasury. Income Market – 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. There generally is limited public information about municipal issuers. InflationLinked – Interest payments on inflation-linked securities may vary widely and will fluctuate as principal and interest are adjusted for inflation. Investments in inflation-linked securities may lose value in the event that the actual rate of inflation is different than the rate of the inflation index. Interest Rate – As interest rates rise, the value of certain income investments is likely to decline. Limited Issuance – BABs – The ability of municipalities to issue Build America Bonds expired on December 31, 2010 and there can be no certainty as to whether future legislation will be enacted that would again permit such issuance. Given the limited issuance of Build America Bonds they may not be actively traded. Lower-Rated – Investments rated below investment grade (typically referred to as “junk”) are generally subject to greater price volatility and illiquidity than higher rated investments. Maturity – Longer-term bonds typically are more sensitive to interest rate changes than shorter-term bonds. Negative Duration – A portfolio with negative duration generally incurs a loss when interest rates and yields fall. Preferred Stocks – When interest rates rise, the value of preferred stocks will generally decline. Prepayment – MBS – Mortgage-backed securities are subject to prepayment risk. Prepayment – Bank loan – Bank loans are subject to prepayment risk. Real Estate – Changes in real estate values or economic downturns can have a significant negative effect on issuers in the real estate industry, including REITs. Smaller Companies – Smaller companies are generally subject to greater price fluctuations, limited liquidity, higher transaction costs and higher investment risk than larger, established companies.

2

Eaton Vance

Floating-Rate Loan Chart Book

Table of Contents A leader in floating-rate loan investment management, Eaton Vance presents Floating-Rate Loan Chart Book, an in-depth review of the loan market through clear and impactful charts. Providing timely information across a broad array of topics relating to this distinctive asset class, Floating-Rate Loan Chart Book serves as a helpful resource in providing connectivity between changing market events and implications for investors’ loan allocation. Use Floating-Rate Loan Chart Book to educate on the loan market, provide updates on loan market conditions and pricing and explain the role of loans within portfolios. Asset Class Review

6

Market Update

13

Market Pricing

20

Portfolio Applications

25

Comparative Characteristics & Performance

34

Eaton Vance for Floating-Rate Loans

40

Additional Information

46

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information. Not FDIC Insured • Not Bank Guaranteed • May Lose Value 3

Eaton Vance

Floating-Rate Loan Chart Book

List of Exhibits Asset Class Review

Market Pricing

The Case for Floating-Rate Loans

6

Prices & Spreads

20

Floating-Rate Loan Primer

7

Historical Spread Analysis

21

Fundamental Lending Proposition

8

Special Topic: LIBOR Floors

22

Sample Issuers

9

All-In Primary Market Spreads

23

Market Size

10

Comparative Yield to Maturity

24

Credit Rating Distribution

11

Portfolio Applications

Maturity Distribution

12

Yield Per Unit of Duration

25

Performance Skew

26

Market Update Debt & Enterprise Values as EBITDA Multiples

13

Return Tendencies

27

EBITDA Growth Rates

14

Correlation Analysis

28

Default Rates

15

Loans vs. Bonds Performance Analysis

29

New Issue Volume & Repayments

16

Loans vs. Bonds Forward Return Hypotheticals

30

Demand vs. Change in Market Outstandings

17

Performance in Rising Rate Environments

31

Loan Market Demand

18

Volatility Analysis

32

Distribution of Demand Over Time

19

Blended Portfolio Hypotheticals

33

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information. Not FDIC Insured • Not Bank Guaranteed • May Lose Value 4

Eaton Vance

Floating-Rate Loan Chart Book

List of Exhibits Comparative Characteristics & Performance

Additional Information

Fixed Income Characteristics & Performance Analysis

34

Glossary of Terms

46

Fixed Income Spread Analysis

35

Important Information & Disclosure

47

Floating-Rate Loan Market Update

36

About Eaton Vance

49

Floating-Rate Loan Performance by Industry

37

For More Information

50

Fixed Income Asset Class Return Analysis (tabular)

38

Fixed Income Asset Class Return Analysis (chart)

39

Eaton Vance for Floating-Rate Loans Advantage of Eaton Vance Experience

40

Vehicles & Strategy Assets

41

Investment Team Leadership

42

Investment Team

43

Investment Process

44

Why Eaton Vance for Floating-Rate Loans

45

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information. Not FDIC Insured • Not Bank Guaranteed • May Lose Value 5

Eaton Vance

Floating-Rate Loan Chart Book Asset Class Review

The Case for Loans: Not Just for Rising-Rate Periods A compelling strategic allocation, particularly today Strategically

Today

– High yield per unit of duration

– Instant relief for today’s ZIRP environment

– Negative correlation with U.S. Treasurys

– Hedge heightened bond risk with near-zero

historically

duration and “anti-bond” characteristics

– Senior/secured fundamental lending

– Scenarios that favor loans – those with flat

proposition, with low loan-to-value

or rising rates – dominate potential return

– Income-centric returns have composed majority of performance over time – May blend well with traditional fixed

outcomes ahead – Strong fundamentals (low defaults); favorable technical factors

income Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. ZIRP is zero interest rate policy. Anti-bond characteristics refers to loans floating-rate, as opposed to fixed-rate, structure. 6

Eaton Vance

Floating-Rate Loan Chart Book Asset Class Review

Floating-Rate Loan Primer The basics

– Corporate debt issued by below-investment-grade borrowers – Most issuers are significant in size and scale – and many are familiar household names – Companies undertake loans for recapitalizations, acquisitions and refinancings – Coupon income from floating-rate loans resets regularly (about every 40-60 days on average) to maintain a fixed spread over a variable base rate, usually LIBOR – Loans are often referred to as “senior and secured”: They typically have the highest priority of claims in an issuer’s capital structure and are secured by specific collateral – Other common monikers: bank loans, leveraged loans, senior loans (all are synonymous)

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. 7

Eaton Vance

Floating-Rate Loan Chart Book Asset Class Review

Fundamental Lending Proposition

Senior secured, low loan-to-value lending to significant corporate issuers – Floating-rate loans represent a senior layer of issuer capital

Weighted Average Company Capital Structure: Sample $5.2B Revenue & $828M EBITDA $9.4 Billion Enterprise Value

structure $3,146 Million US$2 B

Floating-Rate Loans

3.9x (33% of cap structure)

– Substantial junior capital cushion provides low loan-to-value

– Secured by collateral including

$1,490 Million

High-Yield Bonds

$4,764 Million

Equity

issuer accounts receivable, inventory, property, plant, equipment and/or stock

5.6x (16% of cap structure)

11.3x (51% of cap structure)

Fixed Charge Coverage: 2.1x Interest Coverage: 3.9x Source: Eaton Vance, 12/31/14

8

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. This information is for illustrative purposes only, is subject to change at any time and should not be considered investment advice or a recommendation to buy or sell any particular security or adopt any particular strategy. The sample is an average of all loans currently tracked across the Eaton Vance loan platform as of 12/31/2013. Does not represent any particular issuer or product. EBITDA is defined as earnings before interest taxes depreciation and amortization.

Eaton Vance

Floating-Rate Loan Chart Book Asset Class Review

Sample Loan Market Issuers

Larger, more liquid names as reported by S&P/LCD Maturity Date

Corp. Ratings

Avaya

Oct-17

B-/B3

Burger King

Oct-21

B+/B2

Charter Communication

Sept-21

BB-/Ba3

Community Health

Jan-21

B+/B1

Dell

Mar-20

BB+/Ba3

First Data

Mar-18

B/B3

Fortescue Metal

Jun-19

BB/Ba1

HCA

May-18

BB/Ba3

Hilton

Sep-20

BB-/B1

H.J. Heinz

Jun-20

BB-/Ba3

Intelsat Jackson

Jun-19

B+/B3

Neiman Marcus

Oct-20

B/B3

NRG

Jul-18

BB-/Ba3

Reynolds Group

Sep-18

B/B3

Univision

Feb-20

B/B3

Source: S&P/LCD, 12/31/14

9

Data provided is for informational and illustrative purposes only. This is an example only and is not intended to represent the allocation of any fund/account/strategy. This list represents a sample of some of the larger and more liquid loans in the S&P/LSTA Leverage Loan Index as determined by S&P. This sample is not necessarily representative of the other issuers in this index, which will vary based on factors including size and liquidity. This information is not to be construed as investment advice or a recommendation to buy or sell any particular security. Investors should consult an investment professional prior to making any investment decisions. Actual investments may differ significantly from the information presented in terms of portfolio holdings, characteristics and performance. There is no guarantee that an investment or strategy will hold any or all of the securities mentioned. It is not possible to invest directly in an index. Past performance is no guarantee of future results. See end of the report for additional information.

Eaton Vance

Floating-Rate Loan Chart Book Asset Class Review

Market Has Experienced Continued Growth at $800+ Billion

A major income market segment; About half the size of the high-yield bond market Par Amount of Outstanding Loans ($B) $832

$800B $700B $600B $500B $400B $300B $200B $100B $0B '96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

'13

'14

Source: S&P/LCD and S&P/LSTA Leveraged Loan Index, 12/31/14

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. 10

Eaton Vance

Floating-Rate Loan Chart Book Asset Class Review

Rating Distribution Profile

Near-zero duration = pure credit instrument

25% 21.55%

Understanding Risk Factors:

19.49%

20%

Investment-Grade Bonds: Mostly Duration Risk; Limited Credit Risk High-Yield Bonds: Combination of Duration & Credit Risks Floating-Rate Loans: Pure Credit; Near-Zero Duration Risk

14.95%

15%

13.50%

10% 7.72% 5.80% 4.78%

5%

3.95%

2.54%

1.77% 0.71%

0.63%

CCC

CCC-

0% BBB

BBB-

BB+

BB

BB-

B+

B

B-

CCC+

2.60%

0.00% C

D

NR

Source: S&P/LCD and S&P/LSTA Leveraged Loan Index, 12/31/14

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. 11

Eaton Vance

Floating-Rate Loan Chart Book Asset Class Review

Maturity Distribution Profile

Maturity wall has been refinanced; Now much more a molehill As of 12/31/2009

As of 12/31/14 50%

50%

47.6% NOW

THEN 40%

40%

30%

30%

28.2%

26.6%

19.2%

20%

20%

12.1%

12.0% 10%

10%

8.0%

0.7%

2.7% 0.1%

'11

7.3%

2.8%

2.3%

0% '10

'12

28.2%

'13

'14

'15

Source: S&P/LCD and S&P/LSTA Leveraged Loan Index, 12/31/14

'16

'17

0%

2.3%

0.1% '15

'16

'17

'18

'19

'20

'21

'22

Source: S&P/LCD and S&P/LSTA Leveraged Loan Index, 12/31/14

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. 12

Eaton Vance

Floating-Rate Loan Chart Book Market Update

Debt & Enterprise Values as EBITDA Multiples

Borrowing levels well in check; Lending about 3.9x EBITDA to companies worth 8-12x

14x 12.6x 12x

11.3x

11.7x

12.7x

11.6x

11.3x

12.1x 10.0x 10x

8.9x

Total Enterprise Values here

9.8x 9.2x

9.8x 9.0x

8x

6x

Lending here

4x 2.4x

2.3x

'02

'03

2.7x

3.1x

3.3x

'05

'06

3.6x 2.8x

2.9x

2.9x

'08

'09

'10

3.3x

3.4x

3.6x

'11

'12

'13

3.9x

2x

0x '04

'07

Senior Debt/EBITDA

'14

Enterprise Value/EBITDA

Source: S&P/LCD/Bloomberg, 12/31/14

13

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. Defined as issuers with EBITDA of more than $50M. Prior to 2011, media and telecom deals were excluded. EBITDA adjusted for prospective cost savings or synergies. Chart reflects the levels of floating-rate debt among floating-rate loan issuers in Standard & Poor’s universe. Total enterprise values reflect multiples of S&P 1500 as reported by Standard & Poor’s.

Eaton Vance

Floating-Rate Loan Chart Book Market Update

EBITDA Growth

Positive EBITDA & GDP Growth (despite low GDP environment) 30%

10% Average YOY EBITDA Growth of S&P / LSTA Issuers

U.S. GDP Growth

8%

20%

6% 4%

10%

2% 0%

0% -2%

-10%

-4% -6%

-20%

-8% -30%

-10% 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

Source: S&P/LCD, Bureau of Economic Analysis, 12/31/14

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. 14

Eaton Vance

Floating-Rate Loan Chart Book Market Update

Default Rates Well Below Long-Term Averages Sound fundamentals have helped limit default scenarios

Lagging Twelve-Month Default Rate by Principal Amount

Amount to Default $70B

12%

$60B

10%

$50B

Actual Default Rate

Default Rate

Amount Recovered on Defaults (Assumes 70% Recoveries)

8%

$40B 6% Credit Loss Given Defaults (Assumes 70% Recoveries)

$30B 4% $20B 2%

$10B

0%

$0B '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14

Source: S&P/LCD and S&P/LSTA Leveraged Loan Index, 12/31/14

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14

Source: S&P/LCD and S&P/LSTA Leveraged Loan Index, 12/31/14

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. Default rate is calculated as the amount default over the last twelve months divided by the amount outstanding at the beginning of the twelve-month period. 15

Eaton Vance

Floating-Rate Loan Chart Book Market Update

Supply/Demand Equilibrium – Part I

Repayment activity has limited net new supply hitting market

$600 B

New Issue Volume & Repayments

$500 B Understanding Repayments: $400 B

$300 B

While loans have 5-7 year maturities, average lives tend to be shorter (3 years on average) About 1/3 of the loan market has historically repaid itself each year (i.e., about 8% per quarter) Repayments help absorb new issue supply coming to market.

$200 B

$100 B

$0 B '97

'98

'99

'00

'01

'02

'03

'04

New Issue Volume

'05

'06

'07

'08

'09

'10

'11

'12

'13

'14

Repayments

Source: S&P/LCD, 12/31/14

16

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. Data as of 9/30/14 for new issue volume and repayments. Excludes Existing Tranches of Addons and Amendments & Restatements with No New Money. These numbers comprise loans US dollar denominated in and are subject to revision as Standard & Poor’s LCD collects additional data. Repayments are estimated for the last week of December.

Eaton Vance

Floating-Rate Loan Chart Book Market Update

Supply/Demand Equilibrium – Part II Demand has kept pace with growth in supply

Demand vs. Changes in Market Outstandings $200B

$150B

$100B

$50B

$0B

-$50B '01

'02

'03

'04

'05

'06

Total demand

'07

'08

'09

'10

'11

'12

'13

'14

Change in Outstandings

Source: S&P/LCD, 12/31/14

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. CLO issuance for March 2008 excludes 3 Market Value vehicles restructured to cash flow; Repayments are estimated for the last week of December. 17

Eaton Vance

Floating-Rate Loan Chart Book Market Update

Loan Market Demand Analysis

Distribution of Floating-Rate Loan Demand Distribution of Institutional Primary Market Demand Q4 2007

Distribution of Institutional Primary Market Demand Q4 2014

Finance Cos.: 0.9% Finance Cos.: 3.6% Insurance Cos.: 5.3% Insurance Cos.: 3.8%

Retail Funds: 8.5% Retail Funds: 21.8% CLOs: 62.2% CLOs: 57.4% High Yield/Distressed/Hedge: 26.8% High Yield/Distressed/Hedge: 9.8%

Source: S&P/LCD, 12/31/14

Source: S&P/LCD, 12/31/14

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. CLOs are collateralized loan obligations, structured products designed to invest in loans. See end of report for important additional information. 18

Eaton Vance

Floating-Rate Loan Chart Book Market Update

Distribution of Demand over Time Flows by Demand Source

$160 $140 $120 $100 $80 $60 $40 $20 $0 -$20 -$40 '01

'02

'03

'04

'05 CLO Issuance

'06

'07

'08

CLO Pipeline Change

'09 Prime Funds

'10

'11

'12

'13

'14

Total

Source: S&P/LCD, 12/31/14

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. CLO issuance for March 2008 excludes 3 Market Value vehicles restructured to cash flow; Repayments are estimated for the last week of December. 19

Eaton Vance

Floating-Rate Loan Chart Book Market Pricing

Prices & Spreads

Elevated spreads; Discounted valuations

$120

L+2000

1641

95.9

Prices

L+1000

$90 Discounted Spreads

518 442 Nominal Spreads 61.74

$60 '03

'04

'05

'06

'07

'08

'09

L+ '10

'11

'12

'13

'14

Source: S&P/LCD and S&P/LSTA Leveraged Loan Index, 12/31/14

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. * Excludes Facilities in Default. 20

Eaton Vance

Floating-Rate Loan Chart Book Market Pricing

Historical Spread Analysis

Spreads over time and across ratings Breakdown

YE 2004

YE 2005

YE 2006

YE 2007

YE 2008

YE 2009

YE 2010

YE 2011

YE 2012

YE 2013

YE 2014

All Loans Index

L+257

L+237

L+250

L+461

L+2373

L+703

L+555

L+717

L+559

L+482

L+561

BB Loans Index

L+200

L+170

L+193

L+397

L+1719

L+456

L+394

L+474

L+408

L+360

L+448

B Loans Index

L+279

L+257

L+264

L+519

L+3014

L+759

L+630

L+698

L+546

L+484

L+617

CCC Only Index

L+480

L+591

L+613

L+1042

L+5544

L+1459

L+1123

L+2097

L+1483

L+1330

L+1044

Second-Lien Index

L+551

L+533

L+512

L+892

L+5633

L+1899

L+1015

L+1146

L+898

L+772

L+1071

Middle-Market Index

L+350

L+299

L+330

L+515

L+2430

L+1225

L+799

L+787

L+695

L+655

L+777

All Loans Index

L+263

L+241

L+251

L+412

L+1885

L+614

L+517

L+652

L+538

L+472

L+534

BB Loans Index

L+208

L+175

L+194

L+355

L+1370

L+416

L+389

L+456

L+412

L+361

L+430

B Loans Index

L+286

L+261

L+266

L+462

L+2381

L+657

L+576

L+644

L+537

L+483

L+586

CCC Only Index

L+489

L+584

L+606

L+929

L+4385

L+1262

L+967

L+1730

L+1264

L+1177

L+985

Second-Lien Index

L+553

L+533

L+514

L+810

L+4527

L+1603

L+915

L+1045

L+870

L+774

L+1014

Middle-Market Index

L+348

L+301

L+326

L+469

L+1961

L+1123

L+731

L+742

L+680

L+648

L+736

All Loans Index

L+267

L+244

L+252

L+372

L+1641

L+609

L+512

L+633

L+529

L+466

L+518

BB Loans Index

L+213

L+180

L+196

L+320

L+1198

L+415

L+388

L+447

L+413

L+361

L+419

B Loans Index

L+293

L+264

L+268

L+409

L+2006

L+635

L+568

L+629

L+532

L+483

L+566

CCC Only Index

L+496

L+577

L+602

L+822

L+3605

L+1262

L+974

L+1688

L+1276

L+1119

L+949

Second-Lien Index

L+553

L+533

L+516

L+727

L+3787

L+1517

L+928

L+1041

L+852

L+776

L+954

Middle-Market Index

L+346

L+303

L+323

L+444

L+1929

L+1123

L+762

L+736

L+678

L+644

L+711

Spread to Call – 3 years

Spread to Call – 4 years

Spread to Maturity

Source: S&P/LCD and S&P/LSTA Leveraged Loan Index, 12/31/14

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. *Excludes Facilities in Default. 21

Eaton Vance

Floating-Rate Loan Chart Book Market Pricing

Special Topic: LIBOR Floors

Majority of new issue loans have LIBOR floors today; Yield enhancer 350 bps

100% 90%

300 bps

90%

250 bps

80% 70% 60%

200 bps

50% 150 bps 102 bps 100 bps

40% 30% 20%

50 bps 10% 0 bps Mar-09

0% Sep-09

Mar-10

Sep-10

Mar-11

Sep-11

Average LIBOR Floor

Mar-12

Sep-12

Mar-13

Sep-13

Mar-14

Sep-14

Percent With Floors by Par Amount

Source: S&P/LCD and S&P/LSTA Leveraged Loan Index, 12/31/14

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. *Excludes Facilities in Default. 22

Eaton Vance

Floating-Rate Loan Chart Book Market Pricing

All-In Primary Market Spreads

No longer L+250 bps; More than double the historical spread for same fundamental risk B+/B Loans

BB/BB- Loans L+800

L+800

L+700

L+700

L+600

L+600

L+500

L+458

L+581

L+500

L+400

L+400

L+300

L+300

L+200

L+200

L+100

L+100 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 LIBOR Floor Benefit

Upfront fee over three year assumed maturity

Source: S&P/LCD, 12/31/14

Straight Spread

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 LIBOR Floor Benefit

Upfront fee over three year assumed maturity

Straight Spread

Source: S&P/LCD, 12/31/14

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. Assumes upfront fee is amortized evenly over an assumed three-year life; Upfront fee includes original issue discount. As of 10/5/06 LCD began using Corporate Credit Ratings by S&P and Corporate Family Ratings by Moody’s for rated spread and fee calculations. Straight spread is the fixed nominal spread paid by issuers over the floating base rate. Up-front fees generally refer to original issue discounts (OID) paid by the issuer as a form of yield 23 enhancement. LIBOR floor benefit refers to the incremental spread paid above reported LIBOR.

Eaton Vance

Floating-Rate Loan Chart Book Market Pricing

Comparative Yield to Maturity

Loans (Avg. Price = $98.3) vs. HY Bonds (Avg. Price = $101.8) 25%

20%

15%

10% High Yield: 7.0%

5% Loans: 5.4%

0%

Source: S&P/LCD, 12/31/14

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. Loans are represented by S&P/LSTA Leveraged Loan Index. High Yield is represented by BofA Merrill Lynch U.S. High Yield Index. 24

Eaton Vance

Floating-Rate Loan Chart Book Portfolio Applications

High Yield Per Unit of Duration

Loans may help amplify yield today, while significantly shortening portfolio duration Floating-Rate Loans vs. Select Asset Classes 8

7

6

Yield to Worst (%)

EM Sovereign (USD)

High-Yield Corp. Floating-Rate Loans

5

4

Investment Grade Corp. MBS

3

Aggregate

2

Municipal

Treasury 1

Agency

0 0

1

Source: Morningstar, 12/31/14

2

3

4

5

6

7

8

9

Duration

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. Yield to worst is the lowest potential yield that can be received on a bond without an issuer actually defaulting. Yield to worst is generally calculated by making worst-case scenario assumptions by calculating the returns that would be received if certain provisions, including prepayment, call or others, are used by issuers. Duration is a measure of the sensitivity of a bond’s price to a change in interest rates. It represents the 25 number of years until a bond’s interest and principal payments are received. Treasury represented by Barclays Capital U.S. Treasury Index. Agency represented by Barclays Capital U.S. Agency Index. Aggregate represented by Barclays Capital U.S. Aggregate Index. MBS represented by Barclays Capital U.S. Mortgage Backed Securities (MBS) Index. Investment-Grade Corporate represented by Barclays Vance Capital U.S. Corporate Index. Municipal represented by Barclays Capital Municipal Bond Index. Emerging Markets Sovereign (USD) represented by JPMorgan Emerging Markets BondEaton Index Plus (EMBI+). High Yield represented by Barclays Capital U.S. Corporate High Yield Index. Floating-Rate Loans represented by S&P/LSTA Leveraged Loan Index.

Floating-Rate Loan Chart Book Portfolio Applications

Income-Oriented Performance Skew

Income tilt has provided a solid “base” for returns; Key in a low-return environment Observations:

Credit Suisse Leveraged Loan Index: Calendar Year Total Returns 50%

2009: - Technical rebound - Leverage squeezed out - Return of demand - Elimination of supply glut

– Asset class return composition predominantly

40% 30% 20% 10%

comprised of income

0%

– In limited years led by price gains, returns driven by mean reversion rather than net capital appreciation

-10%

Income Return Price Return

-20%

2008: - Credit crisis - Technical dislocation - Deleveraging - Excess supply

-30% -40% -50%

'92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14

Source: Credit Suisse Leveraged Loan Index, 12/31/14

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. 26

Eaton Vance

Floating-Rate Loan Chart Book Portfolio Applications

Positive Return Tendencies for 20 Years

1%-2% per quarter most common historically; Skew has helped drive tendencies positive Distribution of All Quarterly Total Returns: 1992-Q3 2014 40

Negative Quarters

36

Positive Quarters

35

#of Quarters

30

Returns have been positive in 87% of quarters since 1992.

25 20

17

Q1 2008 Q3 2008 Q4 2008

15

12

10 5

8 5 3 0

0 5%

Source: Zephyr, 12/31/14

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. Loan performance is represented by the Credit Suisse Leveraged Loan Index. 27

Eaton Vance

Floating-Rate Loan Chart Book Portfolio Applications

Negative Correlation a Hedge for High-Quality Bonds

“Anti-bond” characteristics: May help offset core bond positions driven by interest rates 1.0

10-Year Correlation with U.S. Treasurys

0.8 0.6 0.4 0.2 0.0 -0.2 -0.4 -0.6 -0.8 -1.0 Treasury

Agency

Aggregate

MBS

Investment Grade Corp.

Municipal

EM Sovereign (USD)

High-Yield Corp.

Floating Rate Loans

Source: Morningstar, 12/31/14

28

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. Correlation is a statistical measure of how two securities perform in relation to each other. Treasury represented by Barclays Capital U.S. Treasury Index. Agency represented by Barclays Capital U.S. Agency Index. Aggregate represented by Barclays Capital U.S. Aggregate Index. MBS represented by Barclays Capital U.S. Mortgage Backed Securities (MBS) Index. Investment-Grade Corporate represented by Barclays Capital U.S. Corporate Index. Municipal represented by Barclays Capital Municipal Bond Index. Emerging Markets Sovereign (USD) represented by JPMorgan Emerging Markets Bond Index Plus (EMBI+). High Yield represented by Barclays Capital U.S. Corporate High Yield Index. Floating-Rate Loans represented by S&P/LSTA Leveraged Loan Index.

Eaton Vance

Floating-Rate Loan Chart Book Portfolio Applications

Despite a Historic “Bull Run” in Bonds…

…Loans outperformed bonds in majority of intra 1-year periods Distribution of All Rolling 1-Year Return Periods: 1992-2014

Bonds Outperformed

Distribution of All Rolling 1-Year Return Periods: 1992-2014

85 Rising Rate Periods Summary: Avg. Return for 85 1-Year Periods Loans: 7.35% Bonds: 4.64%

100 Falling Rate Periods

85 Rising Rate Periods

80 Flat Rate Periods Summary: Avg. Return for 80 1-Year Periods Loans: 9.24% Bonds: 5.72%

100 Falling Rate Periods

80 Flat Rate Periods

Summary: Avg. Return for 100 1-Year Periods Loans: 2.84% Source: Eaton Vance, 12/31/14

29

Loans Outperformed

Bonds: 7.69%

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. Loans are represented by Credit Suisse Leveraged Loan Index and bonds are represented by the Barclays Capital U.S. Aggregate Index. Analysis includes all rolling one-year periods since inception of Credit Suisse Leveraged Loan Index in January 1992.

Eaton Vance

Floating-Rate Loan Chart Book Portfolio Applications

The Future: Will Rates Rise, Stay Level or Fall?

Looking ahead, most interest-rate scenarios favor loans (thanks to generationally low rates) Loans vs. Bonds: Hypothetical Returns in Various Rate Scenarios 12% 7.9%

Total Return

8%

4%

4.3%

3.8%

5.1%

4.7%

4.7%

5.6%

6.1%

6.5%

6.7%

2.3%

0% -0.6% -4%

-3.4% -6.2%

-8% Floating Rate Loans

-9.0%

U.S. Aggregate Index

-10.1%

-12% -100

-50

flat

50

100

150

200

220

Interest-Rate Changes (in basis points) Source: Eaton Vance, 12/31/14 Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. Bonds are represented by the Barclays Capital U.S. Aggregate Index, with a yield of 2.3% and duration of 5.6 years. For loans, we use the S&P/LSTA Index, with a net yield of 4.7%, based on a market yield of 5.4%, reduced by 0.7% to account for expected defaults and recoveries—the average level observed by Eaton Vance over 20 years. Duration is 0.1 years. Calculations are based on standard duration formula, assuming instantaneous rises in interest rates and adjustments of benchmark yields on loans. Chart represents projections based 30 on various interest rate scenarios but is not intended to predict any particular scenario. The information is based, in part, hypothetical assumptions and the experience of Eaton Vance. Certain of the assumptions have been made for modeling purposes and are unlikely to be realized. Changes in the assumptions and scenarios may have a material impact on the information shown.

Eaton Vance

Floating-Rate Loan Chart Book Portfolio Applications

Easy Monetary Conditions May Persist…

…But should tightening ultimately come, loans should benefit Cumulative Loan Performance During Prior Rising Rate Environments 8.00

6/99-5/00

6/04-6/06

Loans: 3.93%

Loans: 12.66%

Bonds: 2.11%

Bonds: 6.55%

Fed Funds Target Rate

6.00

4.00

2/94–2/95 Loans: 10.39% Bonds: 0.01%

2.00

0.00 '92

'93

'94

'95

'96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

'13

'14

Source: Morningstar, 12/31/14

31

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. Performance is cumulative and rising rates are defined as any period where rates increased at least 1%. Loan performance is represented by Credit Suisse Leveraged Loan Index (which has a longer history than the S&P/LSTA Leveraged Loan Index) represents the investable universe of the U.S. dollar denominated leveraged loan market and bond performance is represented by Barclays Capital U.S. Aggregate Index, an unmanaged index of domestic investment-grade bonds, including corporate, government and mortgage-backed securities.

Eaton Vance

Floating-Rate Loan Chart Book Portfolio Applications

Low Volatility Has Returned Post Credit Crisis Period

Long a 1% standard deviation asset class; Market has settled in sub-2% range Rolling 1-Year Total Returns & Standard Deviation 2009: - Technical rebound - Leverage squeezed out - Return of demand - Elimination of supply glut

70% 60% 50%

35% 30% 25%

40%

20%

30%

Standard Deviation

Returns

15%

20%

10%

10%

5%

0%

0%

2008: - Credit crisis - Technical dislocation - Deleveraging - Excess supply

-10% -20% -30%

-5% -10% -15%

-40%

-20% '03

'04

'05

'06

'07

'08

'09

'10

'11

'12

'13

'14

Source: Zephyr, 12/31/14

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. *Excludes Facilities in Default. 32

Eaton Vance

Floating-Rate Loan Chart Book Portfolio Applications

Optimizing Risk & Return in Bond Portfolios

Loans may help fixed income investors enhance their risk/return experience Hypothetical Blended Loan and Bond Portfolios: Past Three Years 5.0%

Lowest Risk Blend: 50% Aggregate 50% Loans

4.5%

60% Aggregate 40% Loans 70% Aggregate 30% Loans

Total Return

4.0%

80% Aggregate 20% Loans

3.5%

90% Aggregate 10% Loans

3.0%

100% Barclays Capital U.S. Aggregate Index

2.5%

2.0% 1.8

2.0

2.2

2.4

2.6

2.8

3.0

Standard Deviation Source: Zephyr/Eaton Vance, 12/31/14

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index or the blends as constructed by Eaton Vance. See end of report for important additional information. Aggregate represented by Barclays Capital U.S. Aggregate Index. Floating-Rate Loans represented by Credit Suisse Leveraged Loan Index. This material is for informational and discussion purposes only. Information is meant to be generic in nature and does not reflect the actual or implied experience of any Eaton Vance managed product. Blended investment results shown are hypothetical and processed 33 in a backtesting (historical) environment with the benefit of hindsight. Certain of the assumptions have been made for modeling purposes and are unlikely to be realized. Actual performance results will differ, and may differ substantially, from the hypothetical performance presented above.

Eaton Vance

Floating-Rate Loan Chart Book Comparative Characteristics & Performance

Fixed Income Characteristics and Performance Analysis Below par valuations and high yield per unit of duration Averages

Total Returns (%)

Coupon (%)

Price ($)

Yield (%)

Maturity (yrs.)

Duration (yrs.)

1-Mo.

3-Mo.

YTD

1Y

3Y

5Y

10Y

3.28

105.8

2.25

7.7

5.6

0.09

1.79

5.97

5.97

2.66

4.45

4.71

U.S. Treasury

2.08

104.0

1.43

6.8

5.6

0.14

1.93

5.05

5.05

1.38

3.91

4.38

U.S. Agency

2.46

104.6

1.38

4.8

3.7

0.01

1.16

3.58

3.58

1.43

2.68

3.85

U.S. Mortgage Backed Securities

3.82

105.9

2.60

6.5

4.3

0.15

1.79

6.08

6.08

2.37

3.73

4.75

U.S. Asset Backed Securities

1.84

101.1

1.47

2.7

2.5

-0.22

0.55

1.88

1.88

1.74

3.23

3.38

U.S. Commercial Mortgage Backed Securities

4.06

104.6

2.33

4.8

4.3

-0.15

1.45

3.86

3.86

4.52

7.82

5.29

U.S. Investment Grade Corporate

4.46

108.4

3.11

10.7

7.2

0.06

1.77

7.46

7.46

5.13

6.49

5.53

0.94

3.63

14.15

14.15

6.09

8.62

6.54

Index Barclays Capital U.S. Aggregate Index

U.S. Aggregate Local Authorities

5.13

118.9

3.29

18.2

9.6

Barclays Capital Municipal Bond Index

4.84

108.8

2.09

13.4

6.1

0.50

1.37

9.05

9.05

4.30

5.16

4.74

BofAML US Inflation-Linked Treasury Index

1.15

106.4

0.45

9.3

6.3

-1.01

0.29

4.49

4.49

0.55

4.28

4.46

BofAML Preferred Index (Fixed Rate)

6.36

102.5

4.67

-

5.7

-0.17

2.72

15.44

15.44

8.11

8.38

2.65

Barclays Capital U.S. Corporate High Yield Index

6.89

99.1

6.61

6.5

4.3

-1.45

-1.00

2.45

2.45

8.43

9.03

7.74

S&P / LSTA Leveraged Loan Index JPMorgan Emerging Markets Bond Index Plus (EMBI+) JPMorgan Corporate Emerging Markets Bond Index (CEMBI) Diversified JPMorgan Government Bond Index-Emerging Markets (GBI-EM) Global Diversified Barclays Capital Global Aggregate Ex-U.S. Index

-

95.9

5.42

-

0.1

-1.25

-0.51

1.60

1.60

5.46

5.57

4.90

6.73

104.2

6.02

-

7.8

-2.45

-0.94

6.15

6.15

4.73

7.01

7.70

5.39

100.3

5.47

-

5.8

-2.16

-1.22

5.70

5.70

-

-

-

6.85

-

6.50

-

4.9

-5.93

-5.71

-5.72

-5.72

0.07

2.63

6.65

2.99

112.9

1.09

8.9

7.3

-1.21

-2.99

-3.08

-3.08

-0.75

1.38

2.81

BofAML U.K. Gilts Index

3.80

121.0

1.70

15.3

10.7

1.42

2.59

7.96

7.96

4.24

6.52

3.93

BofAML European Union Government Bond Index

3.58

119.7

1.02

10.3

7.9

-1.21

-0.72

1.04

1.04

5.69

3.26

3.91

Source: Barclays Capital, JPMorgan, BofA Merrill Lynch and Standard & Poor’s as of 12/31/14 34

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Eaton Vance

Floating-Rate Loan Chart Book Comparative Characteristics & Performance

Fixed Income Spread Analysis (bps) 300

240%

276

220%

250 218

2500 High

1581

1600 209%

1971

2000

1400

200%

1717

1200

200

168

150 100 50 0

1800

180% 160%

800

140%

600

120%

400

100% 4 10Y TIPS Breakeven

80%

1018

1000

200

104% 102

0

Cheap

865

Rich

565 180

192

33

57

Agency

10Y TIPS Muni Break-Even Ratio (%)

Low

1000

16

-13

251

175

143 27

98

58

76

53

0

131

MBS

ABS

CMBS

Corporate

518

500

224 117 121 35

-200

30Y Muni Ratio

1699

1500

618

9

84%

Current Avg

234

0

MBS

ABS

CMBS

Corporate

311 149

Rate Loans

Markets (USD)

Taxable FloatingPreferred Muni/BABs Rate Loans

483

387

217 234 -3 Preferred Floating- Emerging

Taxable Muni/BABs

Agency

511

233 High Yield

Emerging Markets High Yield (USD)

Max Spread Date

3/22/05

12/18/08

11/20/08

12/3/08

1/6/09

11/21/08

12/3/08

4/29/09

3/9/09

12/19/08

10/24/08

12/16/08

Min Spread Date

11/20/08

1/29/07

3/12/13

7/27/10

10/1/09

2/25/05

3/11/05

3/9/05

3/8/06

3/31/06

6/1/07

5/23/07

Spread on 12/31/13

224

106

17

34

55

126

114

133

286

466

334

382

Spread on 12/31/12

245

96

13

50

43

124

141

140

242

529

248

511

Spread on 12/31/11

196

123

33

75

99

308

234

189

315

633

377

699

Source: Barclays, JPMorgan, BofA Merrill Lynch, Standard & Poor’s and U.S. Dept. of the Treasury as of 12/31/14. Spread history measures past 10 years.

35

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information. All spreads are in basis points and measure option-adjusted yield spread relative to comparable maturity U.S. Treasuries with the exception of floating-rate loans, which is the average discounted spread over Libor. Agency represented by Barclays U.S. Agency Index. MBS represented by Barclays U.S. Mortgage Backed Securities (MBS) Index. ABS represented by Barclays U.S. Asset Backed Securities (ABS) Index. CMBS represented by Barclays U.S. CMBS Investment Grade Index. Corporate represented by Barclays U.S. Corporate Index. Taxable Muni/BABs represented by Barclays U.S. Aggregate Local Authorities Index. Preferred represented by BofA Merrill Lynch Fixed Rate Preferred Securities Index. Floating-Rate Loans represented by S&P/LSTA Leveraged Loan Index. Emerging Markets(USD) represented by JPMorgan Emerging Markets Bond Index Plus(EMBI+). High Yield represented by Barclays U.S. Corporate High Yield Index.

Eaton Vance

Floating-Rate Loan Chart Book Comparative Characteristics & Performance

Floating-Rate Loan Market Update

Characterized by strong fundamentals, low defaults and discount prices Spreads and Prices

Annual Default Rate

2000

$125

12%

Price

10%

1500

bps

$100

8%

1000

6% Spread

$75

4%

500

2% 0

$50 '04

'05

'06

'07

'08

'09

'10

Avg. Spread (bps) Current 518 Average 511 Median 483 High 1699 Low 234 Source: Standard & Poor’s and LCD as of 12/31/14

S&P/LSTA Leveraged Loan Index BBB BB B CCC D

'11

'12

'13

0%

'14

Avg. Price ($) 95.9 94.4 97.0 101.0 62.0

Default Rate 3.2% 2.6% 1.7% 10.8% 0.2%

Current Average Median High Low Source: Standard & Poor’s and LCD as of 12/31/14

Averages Nominal Secondary Spread Spread (bps) (bps)

Total Returns (%)

Price ($)

Yield (%)

Life (yrs.)

95.9

5.42

442

561

5.05

98.3 98.0 96.4 93.4 60.3

3.84 4.43 5.89 9.74 -

320 371 476 756 -

382 448 617 1044 -

4.83 5.09 5.12 5.02 -

Duration (yrs.)

1-Mo.

3-Mo.

YTD

1Y

3Y

5Y

10Y

0.1

-1.25

-0.51

1.60

1.60

5.46

5.57

4.90

-

-0.46 -0.74 -1.45 -0.83 -10.24

0.02 0.34 -0.72 -0.46 -11.84

1.16 1.52 1.43 6.09 2.30

1.16 1.52 1.43 6.09 2.30

3.06 4.14 5.85 11.49 12.73

3.74 4.59 6.12 9.84 7.04

3.91 3.90 4.93 6.65 -4.69

Source: Standard & Poor’s as of 12/31/14

36

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information. All spreads are in basis points and measure the average discounted spread over Libor.

Eaton Vance

Floating-Rate Loan Chart Book Comparative Characteristics & Performance

Floating-Rate Loan Performance by Industry (%) Returns by S&P Industry Classification

By Sector

2011

2012

2013

2014

By Sector (cont.)

2011

2012

2013

2014

Aerospace and Defense

0.85

2.10

4.33

2.79

Forest Products

3.38

9.18

6.95

3.74

Automotive

3.62

8.29

5.30

3.21

Healthcare

1.63

8.71

4.96

2.87

Beverage & Tobacco

-5.13

20.34

6.15

3.25

Home Furnishings

7.32

10.52

5.98

2.43

Building and Development

3.77

10.85

4.33

2.64

Industrial Equipment

5.16

8.43

4.18

1.37

Business Equipment and Services

1.13

9.67

5.77

1.56

Industrials

2.70

7.64

4.82

2.38

Cable and Satellite TV

2.26

7.58

3.17

2.29

Leisure Goods-Activities-Movies

4.49

6.35

4.01

1.26

Chemicals and Plastics

1.98

8.49

4.70

2.24

Lodging and Casinos

3.40

10.49

6.46

1.71

Clothing – Textiles

7.87

4.86

3.82

2.36

Media

-3.83

14.02

7.20

4.32

Conglomerates

4.08

6.40

2.93

1.85

Nonferrous Metals - Minerals

3.34

7.83

4.30

-4.57

Containers and Glass Products

5.43

7.65

4.53

2.48

Oil and Gas

5.70

6.91

6.52

-10.02

Cosmetics – Toiletries

0.89

10.80

3.41

3.55

Publishing

-10.03

20.32

5.83

7.37

Ecological Services and Equipment

2.42

4.73

6.39

2.23

Radio and Television

-1.01

13.98

10.76

3.19

Electronics – Electrical

4.44

9.95

5.98

2.55

Retailers (Not Food and Drug)

2.11

8.09

4.46

1.89

Financial Intermediaries

2.13

12.45

5.90

1.96

Surface Transport

1.64

5.70

6.22

1.89

Food and Drug Retailers

4.76

7.04

5.85

2.48

Telecom

2.82

7.44

6.14

2.61

Food Products

1.04

8.75

2.90

1.64

Utilities

-1.37

12.00

5.01

0.70

Food Service

1.85

8.09

2.70

1.23

Total Index

1.52

9.66

5.29

1.60

Source: S&P/LCD 12/31/14

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information. 37

Eaton Vance

Floating-Rate Loan Chart Book Comparative Characteristics & Performance

Fixed Income Asset Class Return Analysis (%) Loan returns have normalized in mid-single-digit range

Index

1-Mo.

Barclays U.S. Aggregate Index

3-Mo.

YTD

1Y

3Y

5Y

10Y

2013

2012

2011

2010

2009

0.09

1.79

5.97

5.97

2.66

4.45

4.71

-2.02

4.21

7.84

6.54

5.93

U.S. Treasury

0.14

1.93

5.05

5.05

1.38

3.91

4.38

-2.75

1.99

9.81

5.87

-3.57

U.S. Agency

0.01

1.16

3.58

3.58

1.43

2.68

3.85

-1.38

2.16

4.82

4.36

1.53

U.S. Mortgage Backed Securities

0.15

1.79

6.08

6.08

2.37

3.73

4.75

-1.41

2.59

6.23

5.37

5.89

U.S. Asset Backed Securities

-0.22

0.55

1.88

1.88

1.74

3.23

3.38

-0.27

3.66

5.14

5.85

24.71

U.S. Commercial Mortgage Backed Securities

-0.15

1.45

3.86

3.86

4.52

7.82

5.29

0.23

9.66

6.02

20.40

28.45

U.S. Investment Grade Corporate

0.06

1.77

7.46

7.46

5.13

6.49

5.53

-1.53

9.82

8.15

9.00

18.68

U.S. Aggregate Local Authorities

0.94

3.63

14.15

14.15

6.09

8.62

6.54

-4.56

9.61

18.10

7.22

0.72

Barclays Municipal Bond Index

0.50

1.37

9.05

9.05

4.30

5.16

4.74

-2.55

6.78

10.70

2.38

12.91

BofAML US Inflation-Linked Treasury Index

-1.01

0.29

4.49

4.49

0.55

4.28

4.46

-9.35

7.33

14.10

6.34

10.03

BofAML Preferred Index (Fixed Rate)

-0.17

2.72

15.44

15.44

8.11

8.38

2.65

-3.65

13.60

4.11

13.66

20.07

Barclays U.S. Corporate High Yield Index

-1.45

-1.00

2.45

2.45

8.43

9.03

7.74

7.44

15.81

4.98

15.12

58.21

S&P / LSTA Leveraged Loan Index

-1.25

-0.51

1.60

1.60

5.46

5.57

4.90

5.29

9.66

1.52

10.13

51.62

-2.45

-0.94

6.15

6.15

4.73

7.01

7.70

-8.31

18.04

9.20

11.83

25.95

-2.16

-1.22

5.70

5.70

-

-

-

-1.73

16.95

3.24

13.50

38.61

-5.93

-5.71

-5.72

-5.72

0.07

2.63

6.65

-8.98

16.76

-1.75

15.68

21.98

Barclays Global Aggregate Ex-U.S. Index

-1.21

-2.99

-3.08

-3.08

-0.75

1.38

2.81

-3.08

4.09

4.36

4.95

7.53

BofAML U.K. Gilts Index

1.42

2.59

7.96

7.96

4.24

6.52

3.93

-2.44

7.54

16.04

4.32

10.90

BofAML European Union Government Bond Index

-1.21

-0.72

1.04

1.04

5.69

3.26

3.91

4.67

11.62

3.12

-3.55

8.07

JPMorgan Emerging Markets Bond Index Plus (EMBI+) JPMorgan Corporate Emerging Markets Bond Index (CEMBI) Diversified JPMorgan Government Bond Index-Emerging Markets (GBI-EM) Global Diversified

Source: Morningstar as of 12/31/14

38

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Eaton Vance

Floating-Rate Loan Chart Book Comparative Characteristics & Performance

Fixed Income Asset Class Return Analysis (%)

Complementary performance experience over time for bond investors

Higher

Lower

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

EM (Local Currency) 22.97

EM (Local Currency) 6.27

EM (Local Currency) 15.22

EM (Local Currency) 18.11

Treasury 13.74

High Yield 58.21

EM (Local Currency) 15.68

Municipal 10.70

EM (Local Currency) 16.76

High Yield 7.44

Municipal 9.05

Global Agg Ex-U.S. 12.55

Bank Loan 5.06

High Yield 11.85

Global Agg Ex-U.S. 11.03

MBS 8.34

Bank Loan 51.62

High Yield 15.12

Treasury 9.81

High Yield 15.81

Bank Loan 5.29

Investment Grade 7.46

High Yield 11.13

Municipal 3.51

Global Agg Ex-U.S. 8.16

Treasury 9.01

Global Agg Ex-U.S. 4.40

EM (Local Currency) 21.98

Bank Loan 10.13

Investment Grade 8.15

Investment Grade 9.82

MBS -1.41

MBS 6.08

Investment Grade 5.39

Treasury 2.79

Bank Loan 6.74

MBS 6.90

Municipal -2.47

Investment Grade 18.68

Investment Grade 9.00

MBS 6.23

Bank Loan 9.66

Investment Grade -1.53

Treasury 5.05

Bank Loan 5.17

High Yield 2.74

MBS 5.22

Investment Grade 4.56

Investment Grade -4.94

Municipal 12.91

Treasury 5.87

High Yield 4.98

Municipal 6.78

Municipal -2.55

High Yield 2.45

MBS 4.70

MBS 2.61

Municipal 4.84

Municipal 3.36

EM (Local Currency) -5.22

Global Agg Ex-U.S. 7.53

MBS 5.37

Global Agg Ex-U.S. 4.36

Global Agg Ex-U.S. 4.09

Treasury -2.75

Bank Loan 1.60

Municipal 4.48

Investment Grade 1.68

Investment Grade 4.30

Bank Loan 2.08

High Yield -26.16

MBS 5.89

Global Agg Ex-U.S. 4.95

Bank Loan 1.52

MBS 2.59

Global Agg Ex-U.S. -3.08

Global Agg Ex-U.S. -3.08

Treasury 3.54

Global Agg Ex-U.S. -8.65

Treasury 3.08

High Yield 1.87

Bank Loan -29.10

Treasury -3.57

Municipal 2.38

EM (Local Currency) -1.75

Treasury 1.99

EM (Local Currency) -8.98

EM (Local Currency) -5.72

Source: Morningstar as of 12/31/14

39

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information. Investment Grade represented by Barclays Capital U.S. Corporate Index. MBS represented by Barclays Capital U.S. Mortgage Backed Securities (MBS) Index. Treasury represented by Barclays Capital U.S. Treasury Index. High Yield represented by Barclays Capital U.S. Corporate High Yield Index. Municipal represented by Barclays Capital Municipal Bond Index. Bank Loan represented by S&P/LSTA Leveraged Loan Index. Global Agg Ex-U.S. represented by Barclays Capital Global Aggregate Ex-USD Index. EM(Local Currency) represented by JPMorgan Government Bond Index-Emerging Markets (GBI-EM) Global Diversified.

Eaton Vance

Floating-Rate Loan Chart Book Eaton Vance for Floating-Rate Loans

The Advantage of Eaton Vance’s Experience

A Pioneer in Floating-Rate Loan Investment Management

– Measurable track record since 1989

0

5

10

15

– Significant floating-rate loan

20

25 Eaton Vance (Since 1989)

investment resources and specialization – Extensive contiguous experience of investment team – Strong long-term record of delivering

Median 8.9 Years

incremental outperformance with lower volatility than the S&P/LSTA Leveraged Loan Index and peers – Continuity of philosophy, process and team over time – Systematic risk-weighted portfolio construction underpinned by bottom-up credit research

Eaton Vance (1989)

Competitor Floating-Rate Loan Managers (Institutional & Retail)

Source: eVestment Alliance/Morningstar, 12/31/14

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. Based on combined eVestment Alliance Floating-Rate Bank Loan Fixed Income universe and Morningstar Bank Loan category using oldest investment offering for each firm. 40

Eaton Vance

Floating-Rate Loan Chart Book Eaton Vance for Floating-Rate Loans

Floating-Rate Loan Strategy Assets Vehicles and Assets Managed

Floating-Rate Loan AUM: $40.8 b (by vehicle)

Floating-Rate Loan AUM: $40.8 b (by calendar year)

Institutional ($9,867 m)

$50 $45 $40.8b

$40 $35

Structured Products ($2,497 m)

$30 $25

Closed End Funds and Sleeves ($4,026 m)

$20 $15 $10

Sub-Advised ($2,813 m)

$5

Source: Eaton Vance Management, and affiliates, 12/31/14

$0 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14

Mutual Funds ($21,611 m)

Source: Eaton Vance Management, and affiliates, 12/31/14

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. 41

Eaton Vance

Floating-Rate Loan Chart Book Eaton Vance for Floating-Rate Loans

Investment Team Leadership Scott Page, CFA –

Co-Director of Floating-Rate Loans, Portfolio Manager

–

33 years of investment experience

–

25-year tenure at Eaton Vance

–

BA from Williams College; MBA from Amos Tuck School of Dartmouth College

Craig Russ –

Co-Director of Floating-Rate Loans, Portfolio Manager

–

29 years of investment experience

–

18-year tenure at Eaton Vance

–

BA from Middlebury College

John Redding

From left to right: Scott H. Page, Craig P. Russ

Source: Eaton Vance Management as of December 31, 2014

–

Portfolio Manager

–

30 years of investment experience

–

17-year tenure at Eaton Vance

–

BS from State University of New York at Albany

Andrew Sveen, CFA –

Head of Trading

–

20 years of investment experience

–

16-year tenure at Eaton Vance

–

BA from Dartmouth College; MBA from University of Rochester Simon Graduate School of Business

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. 42

Eaton Vance

Floating-Rate Loan Chart Book Eaton Vance for Floating-Rate Loans

Investment Team

Investment Team with Extensive Contiguous Experience

Team Leadership Scott Page, CFA

Craig Russ

John Redding

Andrew Sveen, CFA

33 Years Experience (25 with Eaton Vance)

29 Years Experience (18 with Eaton Vance)

30 Years Experience (17 with Eaton Vance)

20 Years Experience (16 with Eaton Vance)

Ralph Hinckley, CFA

Catherine McDermott

Peter Campo, CFA

Michael Turgel, CFA

Broadcast/Cable TV, Telecom, Publishing 17 Years Experience (11 with Eaton Vance)

Auto, Gaming, Packaging 26 Years Experience (14 with Eaton Vance)

Building Products, Insurance, Oil & Gas 19 Years Experience (11 with Eaton Vance)

Food, Metals, Utilities 12 Years Experience (8 with Eaton Vance)

Jeff Hesselbein, CFA

Heath Christensen, CFA

Daniel McElaney, CFA

Cyril Legrand

Healthcare, Pharmaceuticals, Theme Parks 18 Years Experience (15 with Eaton Vance)

Aerospace/Defense, Software, Travel 11 Years Experience (11 with Eaton Vance)

Business Equip/Services, Chemicals/Plastics, Consumer Products 11 Years Experience (10 with Eaton Vance)

4 Years Experience (4 with Eaton Vance)

Credit Research

Brad Richards 3 Years Experience (3 with Eaton Vance)

Brian Keenan

William Holt, CFA

Elizabeth Chou

Business Equip/Services, Healthcare, Telecom 5 Years Experience (5 with Eaton Vance)

Casinos, Financials, Restaurants, Technology, Semiconductors 13 Years Experience (10 with Eaton Vance)

Retailers (excl Food & Drug) 5 Years Experience (5 with Eaton Vance)

Trading

Samuel Tripp 1 Year Experience (1with Eaton Vance Audrey S. Grant 1 Year Experience (1with Eaton Vance)

Recovery Management / Credit Advisory

Andrew Sveen, CFA

Jake Lemle

David Aloise

David McKown

20 Years Experience (16 with Eaton Vance)

7 Years Experience (7 with Eaton Vance)

40 Years Experience (15 with Eaton Vance)

57 Years Experience (15 with Eaton Vance)

Structured Products

Operations & Compliance

Product & Portfolio Strategy

Michael Kinahan, CFA

Michael Botthof

Christopher Remington

Howard Tiffen

28 Years Experience (17 with Eaton Vance) Additional Staff: 2 structured product professionals

23 Years Experience (17 with Eaton Vance) Additional Staff: 7 operations/compliance professionals

16 Years Experience (6 with Eaton Vance)

43 Years Experience (2 with Eaton Vance)

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. 43

Eaton Vance

Floating-Rate Loan Chart Book Eaton Vance for Floating-Rate Loans

Investment Process

Centered upon credit research and return/risk optimization Investable Universe

Select Universe

Target Portfolio

1100 Loans

1100 Loans Qualitative Analysis

Quantitative Analysis

Structural Analysis

Relative Value Analysis

350-450 Loans

800 Loans

– Investment team identifies most appropriate opportunity set

– Select universe analyzed through fundamental credit research process

– Systematic risk-weighted construction driven by relative risk rankings

– S&P/LSTA Leveraged Loan Index & select non-U.S. loans

– Time-tested bottom-up credit research

– Focus on diversification*

– Relative risk rankings assigned by analysts

– Position sizing optimized for optimal risk/return profile

– Apply criteria (examples): • Minimum deal size • Maximum leverage • Qualitative assessments

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. * Diversification cannot assure a profit or eliminate the risk of loss. 44

Eaton Vance

Floating-Rate Loan Chart Book Eaton Vance for Floating-Rate Loans

Why Eaton Vance for Floating-Rate Loans Experience, expertise, track record

– Market leader and pioneer in the management of floating-rate loans – Large and experienced investment team with extensive contiguous experience – Significant floating-rate loan investment resources and specialization – Strong long-term track record with a focus on delivering incremental outperformance with lower volatility than the S&P/LSTA Leveraged Loan Index and peers – Continuity of process and philosophy over time with a performance history over multiple market cycles – Systematic risk-weighted portfolio construction process underpinned by bottom-up research

Data provided is for informational use only. Past performance is no guarantee of future results. It is not possible to invest directly in an Index. See end of report for important additional information. 45

Eaton Vance

Floating-Rate Loan Chart Book

Glossary of Terms INDEX DEFINITIONS: Barclays Capital Global Aggregate Ex-USD Index is a broad-based measure of global investment grade fixed-rate debt investments, excluding USD-denominated debt. Barclays Capital Municipal Bond Index is an unmanaged index of municipal bonds traded in the U.S.

BofA Merrill Lynch UK Gilt Index tracks the performance of GBP denominated sovereign debt publicly issued by the UK government in its domestic market. BofA Merrill Lynch European Union Government Bond Index tracks the performance of sovereign debt publicly issued by countries that are members of the European Union.

Credit Suisse Leveraged Loan Index is an unmanaged index of the institutional leveraged loan Barclays Capital U.S. Agency Index measures agency securities issued by U.S government market. agencies, quasi-federal corporations, and corporate or foreign debt JPMorgan Corporate Emerging Markets Bond Index (CEMBI) Diversified is a market-cap guaranteed by the U.S. government. weighted index that measures USD-denominated emerging market corporate bonds. Barclays Capital U.S. Aggregate Index is an unmanaged index of domestic investmentJPMorgan Emerging Markets Bond Index Plus (EMBI+) is a market-cap weighted index that grade bonds, including corporate, government and mortgage-backed securities. measures USD-denominated Brady Bonds, Eurobonds, and traded loans issued by sovereigns. Barclays Capital U.S. Aggregate Local Authorities Index measures the performance of U.S. investment-grade fixed-rate debt issued directly or indirectly by local government authorities.

JPMorgan Government Bond Index-Emerging Markets (GBI-EM) Global Diversified is an unmanaged index of local-currency bonds with maturities of more than one year issued by emerging market governments.

Barclays Capital U.S. Asset Backed Securities (ABS) Index measures ABS with the following collateral type: credit and charge card, auto, and utility loans.

Standard & Poor’s 500 Index is an unmanaged index of large-cap stocks commonly used as a measure of U.S. stock market performance.

Barclays Capital U.S. CMBS Investment Grade Index measures the market of conduit and S&P/LSTA Leveraged Loan Index is an unmanaged index of the institutional leveraged loan fusion CMBS deals with a minimum current deal size of $300mn. market. Barclays Capital U.S. Corporate High Yield Index measures USD-denominated, non-investment grade corporate securities. Barclays Capital U.S. Corporate Index is an unmanaged index that measures the performance of investment-grade corporate securities within the Barclays Capital U.S. Aggregate Index. Barclays Capital U.S. Mortgage Backed Securities (MBS) Index measures agency mortgage-backed pass-through securities issued by GNMA, FNMA, and FHLMC.

TERMS: 10-Year TIPS Break-Even is a measure of the market’s expectations for future U.S. inflation. It is calculated by subtracting the yield on the 10-year U.S. Treasury Inflation-Protected Security from the yield on the 10-year U.S. Treasury note. Municipal-to-Treasury Yield Ratios are relative value indicators that measure the richness or cheapness of municipal bond yields to comparable maturity Treasury bond yields.

Nominal Spread is the stated spread over LIBOR paid by a floating-rate loan issuer. Barclays Capital U.S. Treasury Index measures public debt instruments issued by the U.S. Secondary Spread is a yield-to-maturity measure that accounts for the current market price of a Treasury. floating-rate loan. BofA Merrill Lynch Fixed Rate Preferred Securities Index is an unmanaged index of fixedrate, preferred securities issued in the U.S.

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information. 46

Eaton Vance

Floating-Rate Loan Chart Book

Important Information & Disclosure This presentation is for informational and illustrative purposes only. This material does not constitute investment advice and should not be viewed as a current or past recommendation or a solicitation of an offer to buy or sell any particular securities or to adopt any investment strategy. This information has been prepared on the basis of publicly available information, internally developed data and other third party sources believed to be reliable. However, no assurances are provided regarding the reliability of such information and Eaton Vance has not sought to independently verify information taken from public and third party sources. Any investment views and market opinions/analyses expressed constitute judgments as of the date of this presentation and are subject to change at any time without notice. Different views may be expressed based on different investment styles, objectives, views or philosophies. Each managed product is individually managed and may differ significantly from the information discussed in terms of portfolio holdings, characteristics and performance. It should not be assumed that any investments in securities, companies, sectors or markets described were or will be profitable. It should not be assumed that any managed product will have an investment experience similar to any returns shown or to any previous or existing managed product. There are no guarantees concerning the achievement of investment objectives, allocations, target returns or measurements such as alpha, tracking error, stock weightings and information ratios. The use of tools cannot guarantee performance. There is no assurance that any portfolio characteristics, holdings, sectors or securities mentioned are currently held in a managed product or will remain in a managed product at the time you receive this report or that securities have not been sold or repurchased. The specific securities mentioned are not representative of all the securities purchased, sold or recommended for managed products. It should not be assumed that any of the securities were or will be profitable, or that any recommendations in the future will be profitable or will equal the performance of the listed securities. Not all of Eaton Vance’s recommendations have been or will be profitable. Actual holdings will vary for each managed product, and there is no guarantee that a particular managed product will hold any, or all, or the securities identified. The views and strategies described may not be suitable for all investors. Not all of Eaton Vance’s recommendations have been or will be profitable. Hypothetical scenarios, blended portfolios, forecasts and estimates and certain information contained herein are based, in part, upon proprietary research and the experience of Eaton Vance, and are not to be relied upon as advice or interpreted as a recommendation. The information does not reflect the experience or holdings of a managed product. Hypothetical scenarios, blended portfolios, forecasts and estimates have certain inherent limitations and do not reflect actual trading, liquidity constraints, fees and other costs. In addition, references to future yield/returns should not be construed as an estimate or promise of the results a managed product may achieve. Information may not reflect the impact that material economic and market factors might have had on Eaton Vance’s decision-making. Any references to future returns should not be construed as an estimate or promise of the results a managed product may achieve. Actual portfolio holdings will vary for each managed product. The returns experienced by a particular managed product will be different from those included in this presentation. This presentation may include statements that are not historical facts, referred to as forward-looking statements. Future results may differ significantly from those stated in forward-looking statements, depending on factors such as changes in securities or financial markets or general economic conditions. Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, fees, expenses, taxes or leverage, as applicable. It is not possible to directly invest in an index or the hypothetical blended portfolios as constructed by Eaton Vance. Past performance does not predict future results. Investing entails risk and there can be no assurance that Eaton Vance, or its affiliates, will achieve profits or avoid incurring losses. 47

Eaton Vance

Floating-Rate Loan Chart Book

Important Information & Disclosure ABOUT ASSET CLASS COMPARISONS: Elements of this report include comparisons of different asset classes, each of which has distinct risk and return characteristics. Every investment carries risk, and principal values and performance will fluctuate with all asset classes shown, sometimes substantially. Asset classes shown are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. All asset classes shown are subject to risks, including possible loss of principal invested. The principal risks involved with investing in the asset classes shown are interest-rate risk, credit risk and liquidity risk, with each asset class shown offering a distinct combination of these risks. Generally, considered along a spectrum of risks and return potential, U.S. Treasury securities (which are guaranteed as to the payment of principal and interest by the U.S. government) offer lower credit risk, higher levels of liquidity, higher interest-rate risk and lower return potential, whereas asset classes such as high-yield corporate bonds and emerging market bonds offer higher credit risk, lower levels of liquidity, lower interest-rate risk and higher return potential. Other asset classes shown carry different levels of each of these risk and return characteristics, and as a result generally fall varying degrees along the risk/return spectrum. Costs and expenses associated with investing in asset classes shown will vary, sometimes substantially, depending upon specific investment vehicles chosen. No investment in the asset classes shown is insured or guaranteed, unless explicitly stated for a specific investment vehicle. Interest income earned on asset classes shown is subject to ordinary federal, state and local income taxes, excepting U.S. Treasury securities (exempt from state and local income taxes) and municipal securities (exempt from federal income taxes, with certain securities exempt from federal, state and local income taxes). In addition, federal and/or state capital gains taxes may apply to investments that are sold at a profit. Eaton Vance does not provide tax or legal advice. Prospective investors should consult with a tax or legal advisor before making any investment decision. BofA Merrill Lynch Indexes: Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index. Historical performance of indexes illustrates market trends and does not represent the past or future performance of any fund. BofA Merrill Lynch™ indices not for redistribution or other uses; provided "as is", without warranties, and with no liability. Eaton Vance has prepared this report, BofAML does not endorse it, or guarantee, review, or endorse Eaton Vance's products. MSCI Indexes: Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index. Historical performance of the index illustrates market trends and does not represent the past or future performance of the fund. Source: MSCI. MSCI data may not be reproduced or used for any other purpose. MSCI provides no warranties, has not prepared or approved this report, and has no liability hereunder. Credit ratings that may be referenced 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. Ratings of BBB or higher by Standard and Poor's or Fitch (Baa or higher by Moody's) are considered to be investment grade quality.

48

Eaton Vance

Floating-Rate Loan Chart Book

About Eaton Vance Eaton Vance Corp. is one of the oldest investment management firms in the United States, with a history dating to 1924. Eaton Vance and its affiliates offer individuals and institutions a broad array of investment strategies and wealth management solutions. The Company’s long record of exemplary service, timely innovation and attractive returns through a variety of market conditions has made Eaton Vance the investment manager of choice for many of today’s most discerning investors.

49

Eaton Vance

Floating-Rate Loan Chart Book

For More Information Mutual Funds are distributed by Eaton Vance Distributors, Inc. Two International Place, Boston, MA 02110, (800) 225-6265. Member FINRA/ SIPC. Before investing, investors should consider carefully the investment objectives, risks, charges and expenses of a mutual fund. This and other important information is contained in the prospectus and summary prospectus, which can be obtained from a financial advisor. Prospective investors should read the prospectus carefully before investing. Eaton Vance Management (EVM) is an investment advisor with its headquarters located at Two International Place, Boston, MA 02110. This material is for illustrative and informational purposes only and should not be considered investment advice, a recommendation to purchase or sell any particular securities or to adopt any particular investment strategy. Investing entails risks and there can be no assurance that EVM or its affiliates will achieve profits or avoid incurring losses. Notice to UK Investors: Eaton Vance Management (International) Limited is authorised and regulated in the United Kingdom by the Financial Services Authority. Eaton Vance Management (International) Limited, 125 Old Broad Street, London, EC2N 1AR, United Kingdom and assumes responsibility for this material. ©2014 Eaton Vance Distributors, Inc. www.eatonvance.com 6140

01.21.15

Not FDIC Insured • Not Bank Guaranteed • May Lose Value 50

Eaton Vance