Eaton Vance Global Macro Absolute Return Fund Class R6 (EGMSX)

Overview

The fund operates as a sophisticated investment vehicle aimed at achieving total return, which encompasses both income generation and capital appreciation. It adopts a global investment approach, engaging in both long and short investment exposures across various countries. This method not only allows for a broad market reach but also leverages opportunities from fluctuations in foreign currencies and global interest rates. By focusing on sovereign exposures, which include currencies, interest rates, and debt instruments issued or guaranteed by sovereign entities, the fund positions itself to capitalize on macroeconomic trends. Although it is non-diversified, meaning it may concentrate its investments more than a diversified fund, this strategy aims to exploit specific opportunities with potentially higher returns.

Products and Services

• Sovereign Exposures

  The fund primarily invests in long and short positions in sovereign exposures. These include currencies, which allow the fund to profit from fluctuations in foreign exchange rates; interest rates, offering a way to capitalize on changes in global economic policies; and debt instruments issued or guaranteed by sovereign entities, providing income through interest yields. By leveraging these types of investments, the fund seeks to achieve a balance between risk and return, exploiting the global economic environment to benefit its investors.

• Derivatives and Other Instruments

  To further enhance its investment strategy, the fund also engages in transactions involving derivatives and other financial instruments. These tools can include futures, options, swaps, and other contract-based financial instruments that derive their value from underlying assets, rates, or indices. This approach allows the fund to implement complex strategies aimed at hedging risks or speculating on future price movements, potentially boosting the fund's total return. The use of derivatives and other instruments is a critical component of the fund’s ability to establish both long and short positions in a wide range of markets and asset classes around the world.