Floating-Rate Loan Strategy | Eaton Vance

Investment Overview

09/30/2018
This strategy provides "intelligent exposure" to the floating-rate loan market, thoughtfully diversifying while assuming a higher-quality bias that seeks lower volatility and better risk-adjusted performance over time.
Target excess return: 25-75 basis points.
Target tracking error range: 100-200 basis points.
We aim to maximize risk-adjusted performance through fundamental credit research and risk-weighted portfolio optimization.
Loans are analyzed through Eaton Vance's proprietary credit research process, and position sizes are guided by credit analyst risk rankings.
We take less input risk in delivering excess return by skewing weightings away from higher credit risk issuers.
We have experienced less output risk, resulting in lower absolute and relative volatility.
Eaton Vance is a leader in floating-rate loans, with one of the longest track records and longest-tenure teams, and largest AUM.* *eVestment Alliance/Morningstar, 12/31/2018. Based on combined eVestment Alliance Floating-Rate Bank Loan Fixed Income universe and Morningstar Bank Loan category using AUM and oldest investment offering for each firm.

Portfolio Construction

09/30/2018
Analysts assign relative risk rankings to each loan
Number of loans approximately equal weighted by risk quintile
Market value incrementally skewed toward lower risk
Initial position size ranges from 0.1% to 1.5% as determined by risk rank
Portfolio is perpetually optimized for risk and return

Investment Team

09/30/2018
Scott Page, CFA
Co-Director of floating-rate loans, portfolio manager
37 years of industry experience
29 years at Eaton Vance
BA, Williams College
MBA, Amos Tuck School, Dartmouth College
Craig Russ
Co-Director of floating-rate loans, portfolio manager
33 years of industry experience
22 years at Eaton Vance
BA, Middlebury College
John Redding
Portfolio Manager
34 years of industry experience
21 years at Eaton Vance
BS, State University of New York-Albany
Ralph Hinckley, CFA
Senior research analyst, portfolio manager
21 years of industry experience
15 years at Eaton Vance
BA, Bates College
MBA, Boston University Graduate School of Management
Andrew Sveen, CFA
Head of trading
24 years of industry experience
20 years at Eaton Vance
BA, Dartmouth College
MBA, University of Rochester

Benchmark

09/30/2018
S&P/LSTA Leveraged Loan Index

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The information contained in this section of the website is designed solely for professional clients. If you are not a professional client you should not proceed any further. The content should not be looked at or distributed to retail clients.

Certain products and services mentioned on this website may not be eligible for sale in some states or countries and they may not be suitable for all types of investors. This website does not constitute an offer or solicitation and is not directed at you if Eaton Vance Management (International) ltd (EVMI) is prohibited by any law of any jurisdiction from making the information on this website available to you and is not intended for any use that would be contrary to local law or regulation. No products and services mentioned on this website must be promoted in any jurisdiction where this would not be permitted.

This website does not constitute investment, legal or tax advice with respect to our products and services and it is important that you do not rely on its content when making an investment decision. You should obtain relevant and specific professional advice before making any decision to enter into an investment transaction. EVMI does not represent that the information on this website, including any third party information, is accurate or complete and it should not be relied upon as such. Past performance is not a guide to future returns.

The value of investment funds and the income therefrom may go down as well as up and you may not get back the original amount invested. Your capital could be at risk. You are not certain to make money from your investments and you may lose money. Exchange rates may cause the value of overseas investments and the income therefrom to rise and fall.

Information in this section may contain statements that are not historical facts, referred to as forward-looking statements. A Fund’s future results may differ significantly from those stated in forward-looking statements, depending on factors such as changes in securities or financial markets or general economic conditions, the volume of sales and purchases of Fund shares, the continuation of advisory, administrative and service contracts, and other risks.

All information in this section are for "Professional Client ONLY". To access this website users must qualify as a "Professional client". Any person who does not fall into the categories listed above should not rely on the information contained in this website.

By clicking the Okay button below, you confirm that you are from an eligible jurisdiction to review material relating to the Fund or Strategies (or are authorised to conduct investment business in the jurisdiction within which you are resident and under the law of that jurisdiction, you are authorised to view material relating to collective investment schemes) and that you are a Professional Client.

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By clicking the box below, you confirm that you are from an eligible jurisdiction to review material relating to the Fund (or are authorised to conduct investment business in the jurisdiction within which you are resident and under the law of that jurisdiction, you are authorised to view material relating to collective investment schemes).

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Certain products and services mentioned on this website may not be eligible for sale in some states or countries and they may not be suitable for all types of investors. This website does not constitute an offer or solicitation and is not directed at you if Eaton Vance Management (International) ltd (EVMI) is prohibited by any law of any jurisdiction from making the information on this website available to you and is not intended for any use that would be contrary to local law or regulation. No products and services mentioned on this website must be promoted in any jurisdiction where this would not be permitted.

This website does not constitute investment, legal or tax advice with respect to our products and services and it is important that you do not rely on its content when making an investment decision. You should obtain relevant and specific professional advice before making any decision to enter into an investment transaction. EVMI does not represent that the information on this website, including any third party information, is accurate or complete and it should not be relied upon as such. Past performance is not a guide to future returns.

The value of investment funds and the income therefrom may go down as well as up and you may not get back the original amount invested. Your capital could be at risk. You are not certain to make money from your investments and you may lose money. Exchange rates may cause the value of overseas investments and the income therefrom to rise and fall.

Information in this section may contain statements that are not historical facts, referred to as forward-looking statements. A Fund’s future results may differ significantly from those stated in forward-looking statements, depending on factors such as changes in securities or financial markets or general economic conditions, the volume of sales and purchases of Fund shares, the continuation of advisory, administrative and service contracts, and other risks.

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