Eaton Vance Total Return Bond Fund Class I (EIBAX)

Overview

This fund focuses on capitalizing on the economic prospects of emerging markets through a diversified investment strategy that prioritizes income instruments and derivatives tied to these regions. By investing a significant portion of its assets in securities issued by emerging market entities or sovereign nations, as well as in derivatives influenced by the economies of these countries, the fund aims to leverage the growth potential of the developing world. This strategy involves a deliberate focus on instruments denominated in developed market currencies, which may mitigate some of the currency risk associated with emerging market investments. It is important to note that the fund maintains a non-diversified status, meaning it may concentrate its investments more than a diversified fund might, potentially leading to higher volatility and investment risk.

Products and Services

The fund primarily offers two types of investment vehicles for those interested in emerging markets:

• Income Instruments:

  These are securities issued by emerging market entities or sovereign nations designed to provide income. By focusing at least 80% of its net assets in these instruments, the fund seeks to generate returns through the receipt of interest or dividends. These investments may include bonds, debt securities, and other forms of financial instruments that provide regular income.

• Derivative Instruments:

  This category encompasses derivatives based on the currencies, interest rates, or other financial issues of emerging market countries. Derivatives are complex financial instruments that derive their value from underlying assets, rates, or indexes. These can include futures contracts, forward contracts, options, and swaps. The fund utilizes these financial vehicles to potentially hedge against risks or to speculate on the future values of emerging market currencies and interest rates, thereby aiming to achieve its investment objectives.