Eaton Vance Income Fund of Boston - Class C (ECIBX)

Overview

The fund described specializes in investment strategies that focus on high yield, high risk corporate bonds, often known as "junk bonds". These financial instruments are characterized by their low credit quality ratings, typically falling below investment grade standards set by major credit rating agencies such as Moody's Investors Service, Inc., S&P Global Ratings, and Fitch Ratings. Despite their high-risk profile, these bonds attract investors with the prospect of higher returns compared to more conservative bond investments. The investment approach of this fund is targeted towards bonds that are rated lower than Baa by Moody's, lower than BBB by S&P, or lower than an equivalent grade by Fitch, including bonds that have not been rated but are deemed by the investment adviser to be of comparable risk and quality.

Products and Services

The primary product offerings of this fund focus on the investment in various types of high yield, high risk corporate bonds. Each product is specifically tailored to maximize returns while managing the inherent risks associated with such investments. The investment strategy encompasses a portfolio that diversifies across different sectors and industries to mitigate risk.

• High Yield Corporate Bonds

  This core service involves investing in bonds that offer higher yields due to their lower credit ratings. Despite the increased risk of default, these bonds can provide significant income opportunities for investors. The selection process leverages in-depth credit analysis and market research to identify bonds with favorable risk-reward profiles. By investing in a broad range of high yield bonds, the fund aims to generate substantial returns while distributing risk across various issuers and sectors.

• Investment Grade Analysis

  While the fund primarily targets bonds rated below investment grade, it also engages in thorough evaluation of bonds that are on the cusp of investment grade ratings. This analysis is crucial for identifying potential investment opportunities in bonds that may be upgraded to investment grade or possess qualities that are underappreciated by the market. Through rigorous assessment, the fund seeks to uncover hidden gems that offer both safety and attractive yields.

• Risk Assessment and Management

  Given the high-risk nature of junk bonds, the fund employs sophisticated risk assessment and management strategies. These strategies involve continuous monitoring of the bond portfolio for changes in creditworthiness, market conditions, and economic indicators that may affect the performance of the investments. The fund's management team uses proprietary models and analytical tools to adjust holdings proactively, aiming to safeguard investments and optimize returns through careful risk mitigation.