Eaton Vance Short Duration Government Income Fund (EASDX)

Overview

The fund described is a financial investment entity that primarily focuses on investing in securities that are issued, guaranteed, or backed by the United States government or its various agencies and instrumentalities. This investment strategy ensures a high level of safety and reliability, given the backing by the federal government. The fund allocates at least 90% of its net assets, including any potential borrowings for investment purposes, towards these secure financial instruments. This allocation strategy showcases the fund's conservative investment approach, aiming to provide investors with stable returns while minimizing risk.

Products and Services

• Government Securities Investments

  The fund primarily invests in government securities, which include any financial instruments issued or guaranteed by the U.S. government. This category encompasses a wide range of investments, from treasury bills and bonds to securities of government agencies or entities. These investments are considered low-risk due to the backing of the U.S. government, making them an attractive option for conservative investors seeking steady returns.

• Non-Agency Mortgage-Backed Securities (MBS)

  Up to 10% of the fund's net assets may be directed towards non-agency MBS. These are types of asset-backed securities that are secured by mortgage payments and are not guaranteed by any government agency. While they carry a higher risk compared to government-secured investments, they potentially offer higher returns, providing a balance in the fund's investment portfolio.

• Asset-Backed Securities

  Including in its portfolio, the fund may also invest in other types of asset-backed securities (ABS). These securities are supported by loan payments or receivables from various assets, excluding mortgages. Investing in ABS allows the fund to diversify its portfolio further and tap into returns from different sectors of the credit market.

• Corporate Bonds and Loans

  The fund may allocate a portion of its assets to invest in corporate bonds and loans. These are debt securities issued by corporations to fund their operations, expansion, or other projects. While they come with higher risk due to reliance on corporate financial health, they also offer the potential for higher yields compared to government securities.

• Money Market Securities

  A small component of the fund's portfolio may consist of money market securities. These short-term investments are known for their liquidity and lower risk. They include treasury bills, commercial paper, and certificates of deposit, among others. Investing in money market securities allows the fund to maintain liquidity and manage short-term operational needs effectively.