Eaton Vance Floating-Rate Fund - Advisers Class (EABLX)

Overview

The described investment entity focuses on allocating a significant portion of its assets towards income-generating floating rate loans and other floating rate debt securities. With a strategic investment directive, at least 80% of the fund's total assets are dedicated to this asset class. The fund prioritizes investments in senior floating rate loans from both domestic and foreign borrowers, referred to as "Senior Loans". These loans are typically classified as below investment grade quality, carrying credit ratings that denote high risk or speculative characteristics, often labeled as "junk". This investment philosophy underscores a commitment to seeking returns through a portfolio that is largely composed of instruments subject to higher risk and volatility, with an emphasis on floating rate debt that may offer potential income benefits in varying interest rate environments.

Products and Services

• Income Producing Floating Rate Loans

  This product focuses on generating income through investments in floating rate loans. These loans adjust their interest rates periodically, typically based on an underlying benchmark interest rate. This adjustment mechanism aims to provide a hedge against inflation and rising interest rates, making them an appealing option for income-focused investors seeking to mitigate interest rate risk.

• Other Floating Rate Debt Securities

  In addition to floating rate loans, the fund invests in a broad array of other floating rate debt securities. This can include floating rate bonds, notes, and other debt instruments that, like the floating rate loans, adjust their interest payouts in response to changes in benchmark interest rates. This diversification allows the fund to explore various segments of the floating rate market, potentially enhancing income while striving to manage risk.

• Senior Floating Rate Loans of Domestic and Foreign Borrowers

  The core of the fund's investment strategy lies in senior floating rate loans, which are extended to both domestic and foreign entities. These loans are typically secured and hold precedence over other debts in the event of borrower default, providing a layer of protection for investors. However, they often involve issuers of below investment grade quality, reflecting a higher default risk that is counterbalanced by the possibility of higher returns compared to investment-grade debt securities.