Eaton Vance Floating-Rate Advantaged Fund Class I (EIFAX)

Overview

This fund focuses on investments in income-producing floating rate loans and other floating rate debt securities. With a primary investment in senior floating rate loans of both domestic and foreign borrowers, it showcases a strategy inclined towards assets that adjust their interest rates periodically. By committing at least 80% of its total assets to such financial instruments, the fund aims to provide investors with returns that potentially adapt to changes in interest rates. The investments usually involve below investment grade quality loans and securities, which inherently carry higher risks and speculative characteristics commonly known as "junk." This approach indicates a willingness to engage in higher risk investments for the possibility of higher returns, aligning with investors who have a similar risk tolerance.

Products and Services

• Income Producing Floating Rate Loans

  Focused on generating income through investments in floating rate loans, these financial products adjust their interest rates periodically, typically in relation to an underlying benchmark interest rate. This offers a defense against inflation and rising interest rates, making them appealing under certain economic conditions.

• Other Floating Rate Debt Securities

  In addition to senior loans, the fund invests in a range of floating rate debt securities. These may include, but are not limited to, bonds or notes that also adjust their interest rates over time. Like floating rate loans, these securities aim to provide investors with more stable returns in fluctuating interest rate environments.

• Senior Floating Rate Loans of Domestic and Foreign Borrowers

  These are loans extended to companies or entities, prioritized in terms of repayment before other debts in the event of a default. The focus on senior loans is strategic, potentially offering a higher degree of security compared to subordinated loans. The fund's investment in both domestic and foreign senior loans diversifies the portfolio across geographical boundaries, spreading risk and opening opportunities in varying markets.

• High Risk, Speculative "Junk" Investments

  By choosing to invest in loans and securities of below investment grade quality, the fund takes on higher risk with the aim of achieving higher returns. These investments are often labeled as "junk" due to their speculative nature and the higher possibility of default. However, for informed investors seeking a balanced portfolio, such investments can offer beneficial high-return potential amidst their risks.