monthly-market-monitor-032017

Trends & Takeaways

Monthly Market Monitor |

2017 Product & PortfolioMarch Strategy Group

Fixed income Equities

Alternatives

Asset Allocation Ideas

Additional Information EATON VANCE

March 2017

Fixed Income

4

Equities

15

Alternatives

26

Asset Allocation Ideas

32

Additional Information

40

Asset Allocation Ideas Additional Information

EATON VANCE

Alternatives

EATON VANCE

3

Equities

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Trends & Takeaways

Fixed income

Eaton Vance Monthly Market Monitor presents a concise review of economic and asset class data through clear and impactful charts. Providing timely information across a broad array of markets and investment topics, this guide serves as a helpful resource in providing connectivity between changing market events and implications for investor portfolios. Use Eaton Vance Monthly Market Monitor as a critical desk reference that enables more informed discussion and understanding of financial markets.

Trends & Takeaways

Monthly Market Monitor |

Trends & Takeaways

Monthly Market Monitor | March 2017

Additional Information

EATON VANCE

Asset Allocation Ideas

As the world's reserve currency, the direction of the U.S. dollar has a huge impact on investors as well as global markets and economies. Despite President Donald Trump's "America First" policies, our baseline view is that the dollar could weaken after a strong run (see page 26). Thinking about the byproducts of Trump policy is one way to handicap his likely actions. The President is likely aware of the risks associated with his protectionist policies. If the U.S. runs a narrower deficit, which would go hand in hand with a stronger dollar, global growth and liquidity would be impacted negatively. A persistent U.S. current account surplus would exaggerate a slowdown. The dollar could improve and we could see a short squeeze, but this would be dangerous to global growth. We believe that political incentives are lined up to avoid a stronger dollar. We believe that investors will be rewarded by having exposure to securities and sectors that will benefit from a decline in the value of the dollar over the long term. This includes local and hard currency non-U.S. debt, cyclicals and inflation-sensitive assets. For complete blog, visit the Eaton Vance Advisory Blog.

Alternatives

After a solid year for U.S. investment grade corporate bonds, the consensus seems bullish for 2017 based on the pro-growth policies in Washington and expectations of further economic expansion. However, we have a somewhat contrarian view that this asset class could provide a bumpier ride than many expect. Investors should keep in mind that the recent popularity of investment grade corporates has quickly compressed credit spreads (see page 10). At the current spread level of 125 basis points over Treasurys and with almost $3 trillion of corporate debt priced at a spread less than 100 basis points, investors are receiving a relatively small amount of extra yield relative to U.S. Treasurys of similar duration. And if interest rates rise, already-tight spreads might not provide much of a cushion. While lower spread bonds seem to be priced to perfection, we are seeing opportunities in some parts of the market. We believe caution and diligent credit research will be more important than ever in 2017. For complete blog, visit the Eaton Vance Advisory Blog.

Equities

High-yield bonds have been on a solid run due to improving economic data, tightening credit spreads and fund inflows (see page 39). Most of the recent rally has been driven by tightening credit spreads in a market characterized by low volatility and a deep bid for risk. Since the election, the average yield on the BofA Merrill Lynch US High Yield Master II Index has compressed by approximately 80 basis points to 5.76%, as of February 20. Over the same period, the average yield on CCC-rated bonds, the riskiest segment of the market, has compressed by over 300 basis points. The takeaway is that the market is trading relatively tight and, overall, valuations seem relatively full. However, it's not all doom and gloom for high-yield bonds, which are sensitive to the health of the economy. Overall, the positive trend in earnings growth which we witnessed in the second and third quarters of 2016 seems to be continuing as companies report fourth quarter earnings. For complete blog, visit the Eaton Vance Advisory Blog.

Fixed income

Select Viewpoints from Eaton Vance Advisory Blog (eatonvance.com/blog)

Trends & Takeaways

Monthly Market Monitor | March 2017

14%

Emerging Markets (10-Yr. Yield)

Fixed income

Developed Markets (10-Yr. Yield)

16% 12-Mo. ago 14%

8%

1-Mo. ago

12%

4%

6%

4% 2%

-2%

0%

Asset Allocation Ideas

0%

Alternatives

8%

Feb ‘17

1-Mo. ago

10%

6%

2%

Equities

12-Mo. ago

10%

Feb ‘17

12%

Additional Information

EATON VANCE

Trends & Takeaways

Monthly Market Monitor | March 2017

20%

U.S. Federal Reserve

15%

BOE

Current

1-Mo. ago

12-Mo. ago

U.S. Federal Reserve

0.75%

0.75%

0.50%

BoE

0.25%

0.25%

0.50%

BoJ

-0.10%

-0.10%

-0.10%

ECB

0.00%

0.00%

0.05%

Current

1-Mo. ago

12-Mo. ago

U.S.

2.39%

2.46%

1.74%

U.K.

1.07%

1.41%

1.34%

Japan

0.05%

0.09%

-0.07%

Germany

0.21%

0.44%

0.11%

Fixed income

Central Bank Policy Rates

10%

Equities

BOJ

5%

ECB 0%

U.K. U.S.

Asset Allocation Ideas

16% 14% 12% 10% 8% 6% 4% 2% 0% -2%

Germany Japan

'74

'76

'78

'80

'82

'84

'86

'88

'90

'92

'94

'96

'98

'00

'02

'04

'06

'08

'10

'12

'14

Alternatives

10-year Sovereign Bond Yields

'16

Additional Information

EATON VANCE

Trends & Takeaways

Monthly Market Monitor | March 2017

Security

4%

Total Return (%)

Current

1-Mo. ago

12-Mo. ago

1-Mo.

12-Mo.

3-mo. Treasury

0.61

0.52

0.32

0.04

0.39

6-mo. Treasury

0.75

0.63

0.43

0.06

0.68

2Yr. Treasury

1.26

1.21

0.77

0.09

0.20

3Yr. Treasury

1.52

1.46

0.97

0.13

-0.24

5Yr. Treasury

1.93

1.92

1.33

0.24

-1.69

10Yr. Treasury

2.39

2.46

1.92

0.86

-4.09

30Yr. Treasury

3.00

3.07

2.75

1.74

-5.43

Equities

1-Mo. ago Feb-17

3%

Yield (%)

Fixed income

U.S. Treasury Yields & Performance

U.S. Treasury Yield Curves

12-Mo. ago

0%

3M

2Y

5Y

10Y

30Y

Additional Information

EATON VANCE

Asset Allocation Ideas

1%

Alternatives

2%

Trends & Takeaways

Monthly Market Monitor | March 2017

Averages

Total Returns (%) Maturity (yrs.)

Duration (yrs.)

1-Mo.

3-Mo.

YTD

1Y

3Y

5Y

10Y

3.07

103.0

2.57

43

8.2

5.9

0.67

1.01

0.87

1.42

2.64

2.24

4.28

U.S. Treasury

2.06

101.3

1.87

-

7.5

6.1

0.49

0.61

0.72

-1.24

1.99

1.41

3.89

U.S. Agency

2.13

103.1

1.74

16

4.7

3.7

0.34

0.54

0.67

0.24

1.82

1.42

3.36

U.S. Mortgage Backed Securities

3.53

103.4

2.85

22

7.1

4.7

0.48

0.44

0.44

0.44

2.57

2.05

4.19

U.S. Asset Backed Securities

1.89

100.2

1.89

59

2.4

2.3

0.14

0.21

0.36

1.14

1.61

1.56

2.94

U.S. Commercial Mortgage Backed Securities

3.24

102.2

2.75

75

6.2

5.5

0.22

0.43

0.84

1.81

2.52

3.07

5.01

U.S. Corp. Investment Grade

4.07

104.9

3.26

115

10.8

7.4

1.15

2.14

1.46

6.42

3.76

3.81

5.40

Bloomberg Barclays Municipal Bond Index

4.76

107.5

2.44

-

12.9

6.4

0.69

2.55

1.36

0.25

3.53

3.07

4.28

Bloomberg Barclays Taxable Municipal Bond

5.38

113.2

3.67

-

17.8

9.3

1.15

1.84

1.85

2.54

5.81

4.75

6.09

BofAML US Inflation-Linked Treasury Index

0.92

106.3

0.03

-

9.1

5.4

0.57

1.26

1.41

3.40

2.08

0.82

4.35

BofAML Preferred Index (Fixed Rate)

6.07

103.3

4.80

154

-

4.8

1.82

4.79

4.53

7.18

7.83

6.44

3.08

BofAML US High Yield Index

6.49

101.6

5.64

374

6.3

4.1

1.56

4.95

2.92

22.30

4.78

6.87

7.39

L+3.85

98.4

5.01

441

4.91

-

0.50

2.23

1.06

12.66

3.66

4.72

4.59

JPMorgan EM Bond Index (EMBI) Global Diversified

6.09

104.1

5.43

312

-

6.6

2.00

4.85

3.48

12.05

6.58

5.80

7.09

JPMorgan Corp. EM Bond Index (CEMBI) Broad Diversified

5.29

103.5

4.71

262

-

4.8

1.39

3.45

2.65

11.81

5.43

5.50

6.26

JPMorgan Govt. Bond Index-EM (GBI-EM) Global Diversified

6.78

-

6.75

-

-

4.9

1.80

6.04

4.09

12.42

-2.52

-2.46

4.18

Bloomberg Barclays Global Aggregate Ex-U.S. Index

2.37

111.6

0.74

44

9.3

7.8

0.29

1.19

2.17

-0.30

-2.78

-1.36

2.58

BofAML U.K. Gilts Index

3.62

127.9

1.04

-

16.2

11.7

2.05

2.79

2.01

-5.02

-2.13

0.02

1.74

BofAML European Union Government Bond Index

3.09

119.0

0.67

60

10.7

8.4

-0.01

0.55

0.26

-3.25

-3.76

0.33

2.58

Bloomberg Barclays U.S. Aggregate Index

S&P / LSTA Leveraged Loan Index

Additional Information

EATON VANCE

Asset Allocation Ideas

Spread (bps)

Alternatives

Yield to Worst (%)

Equities

Price ($)

Fixed income

Coupon (%)

Index

Trends & Takeaways

Monthly Market Monitor | March 2017

2474

2147

2400

Current Median Low

Fixed income

2600

High

2200 2000

Cheap

1800

Rich

1600

1644

1581

1400

901

1000 618

800 600 400 0 -200

258 43 36

57

180 16

21

192 22

59 41

9

-13

Aggregate

Agency

MBS

12/3/2008 6/23/2014 43 56 48

11/20/2008 3/12/2013 21 21 16

12/3/2008 7/27/2010 15 24 27

67

75

147

115

154 155

67

85

ABS

CMBS

Corporate

Preferred

1/6/2009 10/1/2009 59 72 58

11/21/2008 3/23/2007 75 121 98

12/3/2008 2/28/2007 123 165 131

3/9/2009 4/9/2007 213 158 217

0

213

567

374

312

562

325 230

162

241

15 Floating-Rate Loans 12/19/2008 5/31/2007 465 714 561

Emerging Markets (USD) 10/24/2008 6/1/2007 342 415 352

High Yield 12/15/2008 6/1/2007 422 695 504

Additional Information

EATON VANCE

Asset Allocation Ideas

Max Spread Date Min Spread Date Spread on 12/31/16 Spread on 12/31/15 Spread on 12/31/14

441

Alternatives

200

Equities

1018

1200

Trends & Takeaways

Monthly Market Monitor | March 2017

Total Returns (%)

Spread (bps)

Maturity (yrs.)

Duration (yrs.)

1-Mo.

3-Mo.

YTD

1Y

3Y

5Y

10Y

4.07

104.9

3.26

115

10.8

7.4

1.15

2.14

1.46

6.42

3.76

3.81

5.40

AAA Index

3.30

101.7

3.09

72

17.2

10.5

1.75

1.57

1.10

1.55

3.70

2.54

4.12

AA Index

3.11

103.4

2.65

69

9.4

6.5

0.97

1.57

1.13

3.00

3.22

2.67

4.39

A Index

3.89

105.5

3.05

94

10.9

7.6

1.08

1.81

1.25

4.10

3.66

3.61

4.84

BBB Index

4.47

104.8

3.58

144

10.9

7.3

1.22

2.56

1.71

9.36

3.92

4.25

6.18

6.49

101.6

5.64

374

6.3

4.1

1.56

4.95

2.92

22.30

4.78

6.87

7.39

BB Index

5.82

104.1

4.45

250

6.8

4.5

1.11

3.60

2.14

15.19

5.39

6.76

7.62

B Index

6.70

102.7

5.55

364

6.2

3.9

1.51

4.93

2.84

22.06

4.12

6.43

6.20

CCC- Index

8.00

91.9

9.79

804

5.0

3.3

3.19

9.75

5.79

53.24

5.21

8.41

8.28

L+3.85

98.4

5.01

441

4.91

-

0.50

2.23

1.06

12.66

3.66

4.72

4.59

BBB Index

L+2.52

100.5

3.18

233

5.03

-

0.22

0.92

0.32

5.54

3.38

3.45

3.62

BB Index

L+3.23

100.3

3.94

311

5.26

-

0.39

1.35

0.53

8.22

3.70

4.04

3.67

B Index

L+4.28

98.9

5.37

472

4.77

-

0.44

2.08

0.98

13.69

3.72

4.80

4.55

CCC Index

L+6.04

87.3

11.37

1,177

4.09

-

2.09

10.04

5.48

43.75

8.75

11.30

6.89

-

87.3

-

-

-

-

-0.73

6.28

3.04

43.37

-12.62

-0.57

-7.50

Bloomberg Barclays U.S. Corp. Investment Grade Index

BofAML US High Yield Index

S&P/LSTA Leveraged Loan Index

D Index

Additional Information

EATON VANCE

Asset Allocation Ideas

Yield to Worst (%)

Alternatives

Price ($)

Equities

Coupon (%)

Fixed income

Averages

Trends & Takeaways

Monthly Market Monitor | March 2017

Current

1-Mo. ago 12-Mo. ago

Median

2400

HY Corporate

374

388

726

548

2000

Loans

441

457

775

569

IG Corporate

115

121

197

153

1600

Loans

1200

Equities

High Yield Corporate

800 400 0

Investment Grade Corporate

Current

12% Loans

8%

4%

Median

HY Corporate

2.82

3.59

2.38

1.89

Loans

1.41

1.56

1.41

1.71

Asset Allocation Ideas

6%

1-Mo. ago 12-Mo. ago

Alternatives

Annual Default Rate 10%

Fixed income

Average Spread (bps)

High Yield Corporate

2% 0%

Additional Information

EATON VANCE

Trends & Takeaways

Monthly Market Monitor | March 2017

Total Returns (%) Duration (yrs.)

1-Mo.

3-Mo.

YTD

1Y

3Y

5Y

10Y

4.76

107.5

2.44

12.9

6.4

0.69

2.55

1.36

0.25

3.53

3.07

4.28

AAA Index

4.65

110.1

2.05

10.5

6.1

0.66

2.42

1.25

-0.21

2.57

2.26

3.68

AA Index

4.76

109.4

2.21

12.2

6.1

0.63

2.47

1.29

0.01

3.22

2.85

4.16

A Index

4.74

103.2

2.86

14.4

6.9

0.77

2.70

1.47

0.90

4.23

3.76

4.64

BBB Index

5.16

104.4

3.65

17.4

7.9

1.00

2.92

1.75

0.68

5.20

3.60

3.23

5-Year Index

4.84

112.4

1.75

4.9

3.9

0.82

2.38

1.87

-0.06

1.73

1.87

3.86

10-Year Index

4.73

111.6

2.45

10.0

6.1

0.70

2.91

1.45

-0.27

3.47

3.10

4.76

22+ Year Index

4.74

102.1

3.35

26.7

10.6

0.78

3.00

1.40

0.92

5.54

4.38

4.57

5.18

54.8

6.13

20.7

9.8

2.38

5.26

3.82

5.17

5.54

5.76

4.28

Hospital

5.81

102.9

4.92

22.1

9.3

1.07

3.46

2.09

2.37

7.45

6.54

5.50

IDR/PCR

5.00

39.7

6.09

19.8

9.5

3.96

8.98

6.58

6.18

9.40

8.97

5.62

Tobacco

4.71

28.5

5.46

23.3

10.9

6.75

15.10

10.86

12.50

13.17

11.92

1.17

Puerto Rico

4.49

27.2

10.32

23.1

12.6

2.98

4.98

5.12

15.14

0.68

-3.27

-1.46

Bloomberg Barclays Municipal Bond Index

Bloomberg Barclays High Yield Municipal Bond Index

EATON VANCE

Additional Information

Maturity (yrs.)

Asset Allocation Ideas

Yield To Worst (%)

Alternatives

Price ($)

Equities

Coupon (%)

Fixed income

Averages

Trends & Takeaways

Monthly Market Monitor | March 2017

250%

5Y

200% 150%

Current

1-Mo. ago

12-Mo. ago

Median

5Y

80

86

76

86

10Y

97

95

101

95

30Y

103

101

107

103

Equities

10Y

30Y

Fixed income

AAA Muni-to-Treasury Yield Ratios

100% 50%

Current

400 300

Median

AA

21

21

22

21

A

60

60

54

68

BBB

96

96

94

137

Asset Allocation Ideas

BBB

1-Mo. ago 12-Mo. ago

200 100

Alternatives

Credit Quality Spreads vs. AAA (bps)

A AA

0

Additional Information

EATON VANCE

Trends & Takeaways

Monthly Market Monitor | March 2017

Local EMD Yields (%)

Corporate EMD Spreads (USD) 1300

900

900

12% 10%

bps

bps

bps

1300

500

500

Current 1-Mo. ago 12-Mo. ago Median

Avg. Spread (bps) 262 277 467 351

Averages

Total Returns (%)

Coupon (%)

Price ($)

Yield (%)

Duration (yrs.)

1-Mo.

3-Mo.

YTD

1Y

3Y

5Y

10Y

6.09

104.1

5.43

6.6

2.00

4.85

3.48

12.05

6.58

5.80

7.09

5.29

103.5

4.71

4.8

1.39

3.45

2.65

11.81

5.43

5.50

6.26

6.78

-

6.75

4.9

1.80

6.04

4.09

12.42

-2.52

-2.46

4.18

Additional Information

EATON VANCE

Asset Allocation Ideas

JPMorgan Emerging Markets Bond Index (EMBI) Global Diversified JPMorgan Corporate Emerging Markets Bond Index (CEMBI) Broad Diversified JPMorgan Government Bond Index-Emerging Markets (GBI-EM) Global Diversified

Avg. Yield (%) 6.75 6.67 6.85 6.80

Current 1-Mo. ago 12-Mo. ago Median

Alternatives

Avg. Spread (bps) 312 328 454 328

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

Equities

4% '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

Current 1-Mo. ago 12-Mo. ago Median

8% 6%

100

100

Fixed income

Sovereign EMD Spreads (USD)

Trends & Takeaways

Monthly Market Monitor | March 2017

2011

2012

2013

2014

2015

2016

YTD 2/17

EM (Local Currency) 18.11

Treasury 13.74

High Yield 57.51

EM (Local Currency) 15.68

Municipal 10.70

EM (Local Currency) 16.76

High Yield 7.42

Municipal 9.05

Municipal 3.30

High Yield 17.49

EM (Local Currency) 4.09

Global Agg Ex-U.S. 11.03

MBS 8.34

Bank Loan 51.62

High Yield 15.19

Treasury 9.81

High Yield 15.58

Bank Loan 5.29

Investment Grade 7.46

MBS 1.51

Bank Loan 10.16

High Yield 2.92

Treasury 9.01

Global Agg Ex-U.S. 4.40

EM (Local Currency) 21.98

Bank Loan 10.13

Investment Grade 8.15

Investment Grade 9.82

MBS -1.41

MBS 6.08

Treasury 0.84

EM (Local Currency) 9.94

Global Agg Ex-U.S. 2.17

MBS 6.90

Municipal -2.47

Investment Grade 18.68

Investment Grade 9.00

MBS 6.23

Bank Loan 9.66

Investment Grade -1.53

Treasury 5.05

Investment Grade -0.68

Investment Grade 6.11

Investment Grade 1.46

Investment Grade 4.56

Investment Grade -4.94

Municipal 12.91

Treasury 5.87

High Yield 4.38

Municipal 6.78

Municipal -2.55

High Yield 2.50

Bank Loan -0.69

MBS 1.67

Municipal 1.36

Municipal 3.36

EM (Local Currency) -5.22

Global Agg Ex-U.S. 7.53

MBS 5.37

Global Agg Ex-U.S. 4.36

Global Agg Ex-U.S. 4.09

Treasury -2.75

Bank Loan 1.60

High Yield -4.64

Global Agg Ex-U.S. 1.49

Bank Loan 1.06

High Yield 2.19

High Yield -26.39

MBS 5.89

Global Agg Ex-U.S. 4.95

Bank Loan 1.52

MBS 2.59

Global Agg Ex-U.S. -3.08

Global Agg Ex-U.S. -3.08

Global Agg Ex-U.S. -6.02

Treasury 1.04

Treasury 0.72

Bank Loan 1.87

Bank Loan -29.10

Treasury -3.57

Municipal 2.38

EM (Local Currency) -1.75

Treasury 1.99

EM (Local Currency) -8.98

EM (Local Currency) -5.72

EM (Local Currency) -14.92

Municipal 0.25

MBS 0.44

Additional Information

EATON VANCE

Asset Allocation Ideas

2010

Alternatives

2009

Equities

Lower

2008

Fixed income

Higher

2007

Trends & Takeaways

Monthly Market Monitor | March 2017

1-Year Returns

3-Year Returns

Core

Growth

Value

Core

Growth

Value

Core

Growth

Large Cap

3.59

3.87

4.15

29.13

25.53

22.15

9.90

10.19

10.47

Mid Cap

2.79

2.83

2.88

31.84

26.81

21.54

9.77

8.44

7.01

Small Cap

1.45

1.93

2.45

41.29

36.11

30.91

8.37

6.93

5.42

Alternatives

<-20 -20 to -10 -10 to 0

10 to 20

US 3.97

Global 22.07

US 24.98

Global 4.81

US 10.63

International 1.43

Emerging Markets 3.06

International 15.75

Emerging Markets 29.46

International -0.62

Emerging Markets 1.35

Asset Allocation Ideas

0 to 10

Global 2.81

Equities

Value

Fixed income

1-Month Returns

>20

Additional Information

EATON VANCE

Trends & Takeaways

Monthly Market Monitor | March 2017

4.5%

4.0%

MSCI EAFE

4.0%

Fixed income

Current Yields

Historical Yields

3.1 3.0%

3.5% MSCI EM 3.0%

2.5

10 Yr Treasury

MSCI World

MSCI EM

Equities

MSCI World

2.0%

2.4

1.9

2.0%

2.5%

2.4

1.0%

S&P 500

1.5%

0.0%

1.0% '12

'13

'14

'15

'16

MSCI EAFE

Alternatives

Correlation of S&P 500 Stocks

CBOE Market Volatility Index (VIX)

1.0

30.0

S&P 500 Stocks Correlation

0.8

S&P 500

'17

Average

VIX

20.0

0.4

Asset Allocation Ideas

0.6

10.0 Average

0.2 0.0

0.0 '02

'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

'13

'14

'15

'16

'17

'12

'13

'14

'15

'16

'17

Additional Information

EATON VANCE

Trends & Takeaways

Monthly Market Monitor | March 2017

Fixed income

Regions/Styles: Current NTM P/E vs. 10-Year High, Low, Average 30.0

24.3

25.0

24.0

20.0

20.2 19.5

17.7

Current

16.1

Average

16.6 16.6

Low

16.6

15.8

15.0

13.4

MSCI World Current P/E 10.8

13.6

12.8

14.8

13.7 13.4

12.2

11.9 11.0

11.4 9.8

9.2

9.3 6.9

7.7

S&P 500

Russell 2000

Russell 1000 Growth

Russell 1000 Value

MSCI World

MSCI EAFE

MSCI EM

MSCI Europe

MSCI AC Asia Pac

2/17 9/11

7/09 11/08

2/17 11/08

2/17 9/11

2/15 10/08

5/15 10/08

10/07 10/08

3/15 10/08

7/09 10/08

Additional Information

EATON VANCE

Asset Allocation Ideas

8.3

5.0

High Date Low Date

16.0

14.8

14.4 14.0

10.0

16.8

Alternatives

15.0

19.6

17.7

High

Equities

19.5

Trends & Takeaways

Monthly Market Monitor | March 2017

Fixed income

S&P 500 Sectors: Current NTM P/E vs. 10-Year High, Low, Average 85.0

76.9 75.0

Equities

65.0 55.0 45.0

S&P 500 Current P/E

29.0

22.8

21.1 20.5

18.3

16.7 11.8 Consumer Staples 6/16 2/09

17.5

18.0 15.9 14.0

14.4 12.2

25.0 19.6

18.4 18.4

17.9

18.2

14.7

15.6

15.2

8.1 Energy

8.6 Financials

10.0

9.0

Health Care

Industrials

4/16 9/08

8/09 9/11

2/15 2/09

2/17 2/09

11.5 Information Technology 10/07 9/11

9.3 Materials 5/09 9/11

14.5 13.8 10.1 Telecom.

Services 7/12 10/08

18.6 18.0 14.7 10.2 Utilities 6/16 2/09

Additional Information

EATON VANCE

Asset Allocation Ideas

25.0 High 19.8 Current 19.2 15.0 16.5 Average 12.5 Low 5.0 Consumer Discretionary 5/07 High Date 9/11 Low Date

Alternatives

35.0

Trends & Takeaways

Monthly Market Monitor | March 2017

26.0

NTM EPS Growth 16.5

16.5

14.4

13.3

12.6

12.6

10.5

8.7 7.4

LTM EPS Growth -9.4 Russell 2000

-0.6 MSCI EM

MSCI Europe

-1.6

MSCI Asia Pac

MSCI World

-5.0

-8.9

MSCI EAFE

-0.4

-3.0

-5.4 Russell 1000 Value

S&P 500

Russell 1000 Growth

Alternatives

S&P 500 Sectors 262.6

-107.0 Energy

NTM EPS Growth

12.5

12.1

8.8

7.7

6.0

5.7

-3.2

-4.4

4.3

7.2

8.4

9.6

Materials

Info. Tech.

Discretionary

Staples

Health Care

5.2

2.6

22.6

1.4 -13.1

-5.4

LTM EPS Growth Financials

Industrials

Utilities

Asset Allocation Ideas

300.0 250.0 200.0 150.0 100.0 50.0 0.0 -50.0 -100.0 -150.0

Equities

30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 -10.0 -15.0

Fixed income

Regions/Styles

Telecom.

Additional Information

EATON VANCE

Trends & Takeaways

Monthly Market Monitor | March 2017

5.6

6.0% 4.8

5.0% 4.0%

7.0%

4.3

4.0

6.0%

6.6

5.0%

6.0% 5.0%

3.3

4.0%

3.0%

1.0%

3.6

4.1

13.2+

9.7 13.2

7.4 9.7

4.7 7.4

<4.6

5.0%

0.0%

4.0

-1.0% S&P 500

33.2+ 23.0 - 18.9 - 14.1 - <14.1 33.1 23.0 18.9

5.6

6.0%

A+

A

4.0

3.6

2.0%

3.3

3.5

4.8

B

B-

-0.5 C

4.0%

2.0%

4.7

4.0

3.0%

2.5

1.0%

B+

3.4

0.6 1.6

0.0 0.6

2.5

2.0% 1.0%

0.0% -1.0% S&P 500 $50B+

$10B $50B

$5B $10B

-0.5 $0 - $5B

0.0%

0.0% S&P 500

1.7+

1.3 1.7

1.0 - 0.6- 1.0 <0.6 1.3

S&P 500

3.5+

2.4 3.5

1.6 2.4

EATON VANCE

Additional Information

3.5

Asset Allocation Ideas

4.0%

2.4

A-

6.0% 5.0%

3.3

3.0%

S&P 500

Dividend Yield

Beta 4.4

2.3

Alternatives

Market Cap

3.3

1.0%

0.0% S&P 500

3.6

2.0%

1.0%

0.0%

4.0

4.8

4.1

3.0%

2.3

2.0%

4.0%

5.0

Equities

1.4

4.7

4.0

3.0%

2.0%

4.0%

S&P 500 Quality Ranking

Trailing 12 Month P/E

Fixed income

3-5 Year Earnings Growth

Trends & Takeaways

Monthly Market Monitor | March 2017

8.6 7.0

6.5

5.9

4.5

0.6 S&P 500

12.5+

9.3 12.5

7.0 9.3

4.5 7.0

<4.5

8.8 5.9

6.2

5.5

8.0% 6.0%

6.7

5.9

7.0

6.3 4.8

3.9

2.0% 0.0%

0.0% S&P 500 $50B+

$5B $10B

$0 - $5B

4.3

S&P 500

A+

A

A-

B+

B

B-

C

S&P 500

1.6+

1.3 1.6

1.0 - 0.6- 1.0 <0.6 1.3

10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%

8.6 7.5 6.2

5.9 4.2 2.3

S&P 500

3.5+

2.4 3.5

1.6 2.4

0.6 1.6

0.0 0.6

EATON VANCE

Additional Information

$10B $50B

4.3

Asset Allocation Ideas

1.8

5.8

Dividend Yield

4.0%

2.0%

5.7

5.6

0.0% 32.4+ 22.4 - 18.5 - 14.2 - <14.2 32.4 22.4 18.5

4.7 4.0%

5.9

2.0% S&P 500

6.0%

5.6

7.9

4.0%

8.0% 6.2

12.2

12.0% 10.0%

5.9

Beta

8.0% 5.9

6.3

14.0%

Alternatives

Market Cap

6.0%

10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%

Equities

10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%

S&P 500 Quality Ranking

Trailing 12 Month P/E

Fixed income

3-5 Year Earnings Growth

MSCI World 40.00

35.00

25.00

20.00

10.00 5.00

0.00

Additional Information

EATON VANCE

Asset Allocation Ideas

Utilities

Telecom

Real Estate

Materials

Technology

Industrials

-10.00 Health Care

-5.00

Financials

0.00

Energy

10.00

Staples

20.00

1 month YTD 1 year

30.00

Discretionary

Utilities

Telecom

Real Estate

Materials

Technology

Industrials

Health Care

Financials

Energy

Staples

40.00

Alternatives

1 month YTD 1 year

50.00

Equities

Discretionary

S&P 500

Fixed income

-10.00

Trends & Takeaways

Monthly Market Monitor | March 2017

30.00

15.00

Trends & Takeaways

Monthly Market Monitor | March 2017

R1000G

R1000V

MSCI World

MSCI EAFE

MSCI EM

MSCI Europe

MSCI Asia Pac

505

1988

644

691

1652

928

832

446

1023

Maximum

$718.72B

$16.74B

$718.72B

$718.72B

$718.72B

$230.74B

$266.26B

$230.74B

$266.26B

Minimum

$2.54M

$0.02M

$0.10M

$0.23M

$1.21M

$2.09M

$0.89M

$2.55M

$0.89M

1.92

1.51

1.60

2.65

2.43

3.12

2.53

3.42

2.50

17.70

24.02

19.52

16.61

16.60

14.75

11.93

14.79

13.66

2.91

2.25

5.71

1.92

2.28

1.68

1.53

1.81

1.51

12.65

13.07

14.95

10.71

10.78

8.65

6.17

8.61

7.45

Market Capitalization

Dividend Yield NTM PE Price to Book Price to Cash Flow Price to Sales

2.01

1.29

2.21

1.74

1.62

1.20

1.16

1.23

1.14

Est 3-5 Yr EPS Growth

11.37

13.42

13.35

9.59

11.50

11.24

13.88

11.93

11.57

5Yr. Div Growth Rate

14.20

3.49

14.33

14.12

6.16

0.58

-6.25

0.70

0.26

Real Estate 3% Telecomm 2%

Technology 22%

Utilities 3% Discretionary 12% Staples 9%

Health Care 14% Financials 15%

Technology 15% Industrials 11%

Discretionary 12%

Health Care 13%

Utilities 3%

Staples 10% Financials 18%

Energy 7%

EATON VANCE

Additional Information

Energy 7%

Real Estate 3% Telecomm 3%

Asset Allocation Ideas

Industrials 10%

Materials 5%

Alternatives

Materials 3%

Equities

R2000

Fixed income

S&P 500 Number of Holdings

Trends & Takeaways

Monthly Market Monitor | March 2017

3Y 10.63 10.43 9.82 7.33 10.47 9.90 8.44 6.93 6.48

5Y 14.01 13.59 14.07 13.10 13.79 14.02 13.63 12.89 7.29

10Y 7.62 7.85 7.19 7.82 9.07 6.20 8.04 7.22 4.58

2016 11.96 10.04 13.71 17.59 7.08 17.34 13.80 21.31 7.07

2015 1.38 2.54 -0.71 -2.90 5.67 -3.83 -2.44 -4.41 5.24

2014 13.69 13.80 12.64 7.07 13.05 13.45 13.22 4.89 5.64

2013 32.39 30.90 35.29 36.80 33.48 32.53 34.76 38.82 13.26

2012 16.00 12.75 20.21 17.88 15.26 17.51 17.28 16.35 5.20

2.77 1.43 3.06 2.50 2.81 1.19 1.97 0.69 1.33 1.08

7.77 7.94 8.94 7.28 7.90 8.71 7.58 7.73 8.83 6.53

5.25 4.37 8.70 7.57 5.62 3.30 3.23 4.10 3.50 4.33

21.26 15.75 29.46 24.75 22.07 12.15 10.85 11.50 11.62 22.21

5.20 -0.62 1.35 4.21 4.81 -3.13 -3.86 -2.18 -2.92 7.05

9.41 5.16 -0.37 4.96 8.25 4.68 3.07 8.94 5.12 8.97

4.29 1.03 2.86 2.49 4.08 0.67 0.87 1.55 0.91 2.99

7.51 1.00 11.19 4.89 7.86 -0.40 -0.17 -4.02 -1.22 5.18

-0.87 -0.81 -14.92 -1.96 -2.36 -2.84 -6.72 3.46 -1.61 10.24

4.94 -4.90 -2.19 0.00 4.16 -6.18 -5.16 -4.58 -5.86 -4.82

26.68 22.78 -2.60 11.97 22.80 25.23 20.91 35.70 26.24 30.85

15.83 17.32 18.22 16.78 16.13 19.12 15.03 33.05 20.02 11.56

1.95 4.95 -2.19 5.20 6.43 3.82 5.13 0.69 4.68 -0.39 5.28

6.33 10.07 -3.90 9.56 9.62 5.82 11.48 5.48 9.17 5.03 11.87

6.27 6.68 -5.71 5.45 8.82 5.29 9.77 5.35 4.61 -2.85 6.60

18.29 11.55 26.19 46.36 15.16 27.67 32.95 27.75 14.57 9.41 15.88

10.83 12.25 -3.91 13.90 9.80 10.51 15.95 5.68 11.22 10.05 12.62

16.83 13.73 1.24 17.72 17.77 14.61 15.19 9.44 11.37 10.81 12.44

10.33 10.82 4.09 0.39 10.43 8.32 11.13 5.90 4.18 5.75 7.14

6.03 5.38 27.36 22.80 -2.69 18.86 13.85 16.69 3.39 23.49 16.29

10.11 6.60 -21.12 -1.53 6.89 -2.53 5.92 -8.38 4.68 3.40 -4.85

9.68 15.98 -7.78 15.20 25.34 9.83 20.12 6.91 30.19 2.99 28.98

43.08 26.14 25.07 35.63 41.46 40.68 28.43 25.60 1.60 11.47 13.21

23.92 10.76 4.61 28.82 17.89 15.35 14.82 14.97 19.74 18.31 1.29 EATON VANCE

Additional Information

1Y 24.98 19.43 31.78 31.75 22.15 29.13 26.81 36.11 14.00

Asset Allocation Ideas

YTD 5.94 5.70 6.21 3.83 7.66 4.33 5.31 2.33 3.64

Alternatives

3-Mo. 8.04 8.09 7.82 5.85 9.00 6.94 6.51 5.20 3.75

Equities

1-Mo. 3.97 4.35 3.43 2.41 4.15 3.59 2.83 1.93 1.39

Fixed income

U.S. Equities S&P 500 Russell 1000 Defensive Russell 1000 Dynamic Russell 2500 Russell 1000 Growth Russell 1000 Value Russell Mid Cap Russell 2000 CBOE S&P 500 Buywrite BXM Global Equities MSCI World MSCI EAFE MSCI EM MSCI AC Asia Pac MSCI ACWI MSCI Europe FTSE 100 FTSE All Small STOXX Europe 600 Nikkei 225 Average Sectors S&P 500 Cons Disc S&P 500 Cons Staples S&P 500 Energy S&P 500 Financials S&P 500 Health Care S&P 500 Industrials S&P 500 Info Tech S&P 500 Materials S&P 500 Real Estate S&P 500 Telecom Services S&P 500 Utilities

Trends & Takeaways

Monthly Market Monitor | March 2017

2010

2011

2012

2013

2014

2015

2016

YTD 2/17

Emerging Markets 39.42

Small-Cap -33.79

Emerging Markets 78.51

Small-Cap 26.85

Growth 2.64

Emerging Markets 18.22

Small-Cap 38.82

S&P 500 13.69

Growth 5.67

Small-Cap 21.31

Emerging Markets 8.70

Growth 11.81

Value -36.85

Mid-Cap 40.48

Mid-Cap 25.48

S&P 500 2.11

Value 17.51

Mid-Cap 34.76

Value 13.45

S&P 500 1.38

Value 17.34

Growth 7.66

Global 11.66

S&P 500 -37.00

Growth 37.21

Emerging Markets 18.88

Value 0.39

International 17.32

Growth 33.48

Mid-Cap 13.22

International -0.81

Mid-Cap 13.80

S&P 500 5.94

International 11.17

Growth -38.44

Global 34.63

Growth 16.71

Mid-Cap -1.55

Mid-Cap 17.28

Value 32.53

Growth 13.05

Global -2.36

S&P 500 11.96

Global 5.62

Mid-Cap 5.60

Mid-Cap -41.46

International 31.78

Value 15.51

Small-Cap -4.18

Small-Cap 16.35

S&P 500 32.39

Small-Cap 4.89

Mid-Cap -2.44

Emerging Markets 11.19

Mid-Cap 5.31

S&P 500 5.49

Global -42.19

Small-Cap 27.17

S&P 500 15.06

Global -7.35

Global 16.13

Global 22.80

Global 4.16

Value -3.83

Global 7.86

International 4.37

Value -0.17

International -43.38

S&P 500 26.46

Global 12.67

International -12.14

S&P 500 16.00

International 22.78

Emerging Markets -2.19

Small-Cap -4.41

Growth 7.08

Value 4.33

Small-Cap -1.57

Emerging Markets -53.33

Value 19.69

International 7.75

Emerging Markets -18.42

Growth 15.26

Emerging Markets -2.60

International -4.90

Emerging Markets -14.92

International 1.00

Small-Cap 2.33

Additional Information

EATON VANCE

Asset Allocation Ideas

2009

Alternatives

2008

Equities

Lower

2007

Fixed income

Higher

Trends & Takeaways

Monthly Market Monitor | March 2017

5Y -4.51 -4.90 -6.37 -6.53 -5.74 -2.92 -7.80 -6.04 -4.51 -2.10

1-Mo. 2.10 0.48 2.12 3.05 0.02 0.43 0.30 -1.24 0.04 0.40

Local Interest Rates (%) 3-Mo. 6-Mo. 1Y 0.61 0.74 0.82 -0.93 -0.89 -0.92 0.19 0.16 0.08 -0.28 -0.28 -0.26 1.59 1.59 0.50 0.50 0.59 1.89 0.44 0.49 0.50 -0.70 -0.70 -0.69 -0.71 -0.72 -0.73 -0.73 -0.68 -1.04

5Y 4.73 -0.40 -1.94 -2.11 -1.28 1.67 -3.44 -1.59 0.00 2.53

Equities

1-Mo. -2.05 -1.60 0.03 0.95 -2.04 -1.62 -1.76 -3.25 -2.01 -1.65

Spot Returns vs. EUR (%) YTD 1Y 3Y -0.56 2.81 9.28 -0.09 -8.54 -1.18 3.10 2.73 5.61 5.68 10.22 3.83 0.47 4.66 2.77 3.08 12.19 3.81 2.36 6.47 -2.27 0.18 -2.54 -2.55 0.01 0.35 0.13 0.78 2.04 4.52

Fixed income

Currency U.S. Dollar (USD) Euro (EUR) * British Pound (GBP) Japanese Yen (JPY) Australian Dollar (AUD) Canadian Dollar (CAD) New Zealand Dollar (NZD) Norwegian Krone (NOK) Swedish Krona (SEK) Danish Krone (DKK) Swiss Franc (CHF)

Spot Returns vs. USD (%) YTD 1Y 3Y 0.54 -2.73 -8.49 0.28 -11.05 -9.58 3.72 -0.07 -3.35 6.33 7.23 -4.98 1.05 1.80 -5.95 3.80 9.13 -4.98 2.94 3.57 -10.57 0.77 -5.19 -10.82 0.57 -2.38 -8.37 1.31 -0.74 -4.35

Alternatives

U.S. Dollar Index 160 140

Asset Allocation Ideas

120 100 80 60 '70

'72

'74

'76

'78

'80

'82

'84

'86

'88

'90

'92

'94

'96

'98

'00

'02

'04

'06

'08

'10

'12

'14

'16

Additional Information

EATON VANCE

Trends & Takeaways

Monthly Market Monitor | March 2017

Currency

Spot Returns vs. EUR (%)

Local Interest Rates (%)

1Y

3Y

5Y

1-Mo.

YTD

1Y

3Y

5Y

3-Mo.

6-Mo.

1Y

Chinese Renminbi (CNY)

0.25

1.14

-4.59

-3.63

-1.73

1.80

0.60

-2.37

4.92

3.04

-

-

3.97

Malaysian Ringgit (MYR)

-0.27

1.03

-5.35

-9.63

-7.58

0.82

0.44

-2.34

-1.48

-3.03

2.64

2.95

3.09

Indian Rupee (INR)

1.76

1.85

2.60

-2.53

-5.97

2.78

1.40

5.38

6.45

-1.40

6.10

6.16

6.32

Indonesian Rupiah (IDR)

0.23

1.01

0.28

-4.52

-7.52

1.20

0.30

3.46

4.07

-2.98

-

-

6.43

Philippine Peso (PHP)

-0.89

-1.33

-5.49

-3.88

-3.20

0.15

-1.93

-2.60

4.78

1.56

1.40

1.33

1.17

Singapore Dollar (SGD)

0.47

3.11

0.24

-3.33

-2.26

2.57

2.53

3.05

5.64

2.36

-

0.82

0.97

South Korean Won (KRW)

2.75

6.68

9.41

-1.88

-0.20

3.87

6.10

12.97

6.88

4.70

1.32

1.40

1.46

Taiwanese Dollar (TWD)

2.31

5.37

8.55

-0.39

-0.86

3.33

4.58

12.27

8.56

4.01

-

-

0.44

Thai Baht (THB)

0.47

2.57

2.00

-2.32

-2.70

2.58

1.97

4.85

6.74

1.89

1.43

1.50

1.52

Brazilian Real (BRL)

1.23

4.66

29.11

-8.99

-11.20

3.62

4.46

33.10

-0.47

-6.96

12.08

11.37

10.29

Chilean Peso (CLP)

-0.43

3.12

7.06

-4.92

-5.91

1.20

2.56

9.55

3.78

-1.49

-

-

3.22

Colombian Peso (COP)

-0.08

2.60

12.54

-11.23

-9.59

1.47

1.95

15.45

-3.07

-5.32

-

-

-

Mexican Peso (MXN)

3.60

3.07

-9.81

-12.98

-8.55

5.76

2.55

-7.29

-4.91

-4.23

6.41

6.63

6.50

Peruvian New Sol (PEN)

0.14

2.71

7.80

-5.03

-3.90

1.81

1.94

10.47

3.69

0.60

-

-

3.93

ASIA, EX. JAPAN

Alternatives

YTD

Equities

1-Mo.

Fixed income

Spot Returns vs. USD (%)

LATIN AMERICA

Asset Allocation Ideas Additional Information

EATON VANCE

Trends & Takeaways

Monthly Market Monitor | March 2017

Currency

Spot Returns vs. EUR (%)

Local Interest Rates (%)

5Y

1-Mo.

YTD

1Y

3Y

5Y

3-Mo.

6-Mo.

1Y

Czech Koruna (CZK)

-2.05

0.58

-2.57

-8.15

-6.06

0.00

-0.03

0.17

0.38

-1.62

-0.90

-1.06

-0.85

Hungarian Forint (HUF)

-1.50

1.03

-2.10

-8.30

-5.72

0.58

0.42

0.66

0.16

-1.26

0.09

0.11

0.22

Polish Zloty (PLN)

-1.69

2.83

-1.78

-9.55

-5.31

0.38

2.29

0.98

-1.14

-0.83

-

-

1.64

Romanian Leu (RON)

-2.57

0.84

-3.87

-8.62

-5.25

-0.61

0.33

-1.27

-0.15

-0.76

-

0.57

0.87

Russian Ruble (RUB)

3.10

5.41

28.80

-14.99

-12.95

5.22

4.79

31.67

-7.10

-8.78

10.47

10.48

10.26

Turkish New Lira (TRY)

3.49

-3.37

-18.66

-15.42

-13.67

5.63

-3.95

-16.39

-7.57

-9.59

10.52

10.55

10.65

Ghanaian Cedi (GHS)

-7.06

-9.80

-17.76

-18.09

-18.36

-5.24

-8.92

-15.54

-10.53

-14.53

24.20

-

19.00

Israeli Shekel (ILS)

3.53

5.84

7.18

-1.41

0.76

5.49

5.18

10.05

7.68

5.49

0.17

0.18

0.12

Kenyan Shilling (KES)

0.96

-0.38

-1.23

-5.71

-4.21

3.00

-0.95

1.82

3.12

0.36

10.61

10.90

11.46

Moroccan Dirham (MAD)

-1.35

0.30

-1.93

-6.87

-3.64

0.68

-0.24

0.93

1.76

0.91

2.33

2.26

2.20

Nigerian Naira (NGN)

-1.12

0.03

-36.86

-19.38

-12.94

2.22

-0.34

-34.96

-11.84

-8.79

14.66

19.39

22.01

South African Rand (ZAR)

2.64

4.66

20.89

-6.43

-10.58

4.79

4.08

24.28

2.27

-6.35

7.34

7.57

7.87

Ugandan Shilling (UGX)

-0.04

0.28

-4.81

-10.93

-7.87

1.98

0.10

-4.16

-2.69

-3.64

12.17

12.13

12.17

Zambian Kwacha (ZMK)

3.26

3.41

18.52

-15.37

-11.39

6.60

4.00

23.21

-7.18

-6.97

-

-

21.00

EUROPE

MIDDLE EAST AND AFRICA

EATON VANCE

Additional Information

3Y

Asset Allocation Ideas

1Y

Alternatives

YTD

Equities

1-Mo.

Fixed income

Spot Returns vs. USD (%)

Trends & Takeaways

Monthly Market Monitor | March 2017

Swiss Franc (CHF) Euro (EUR) *

Feb ‘17 Feb ‘16

-1.04 -1.11

Hungarian Forint (HUF) Philippine Peso (PHP)

-0.92 -0.52

Thai Baht (THB)

-0.73 -0.61

Polish Zloty (PLN)

Swedish Krona (SEK)

-0.69 -0.67

Malaysian Ringgit (MYR)

Japanese Yen (JPY)

Peruvian New Sol (PEN) 0.08 0.31

Indonesian Rupiah (IDR)

Norwegian Krone (NOK)

0.50 0.49

Mexican Peso (MXN)

Canadian Dollar (CAD)

0.59 0.50 0.82 0.60

Brazilian Real (BRL)

Australian Dollar (AUD)

1.59 1.92

Turkish New Lira (TRY)

New Zealand Dollar (NZD)

1.89 2.19

Nigerian Naira (NGN)

-5.00

0.00

10.26 11.91 10.29 14.16 10.65 10.59

Russian Ruble (RUB)

5.00

10.00

15.00

20.00

0.00

22.01

8.82 5.00

10.00

15.00

20.00

Asset Allocation Ideas

U.S. Dollar (USD)

South African Rand (ZAR)

Alternatives

British Pound (GBP)

Chilean Peso (CLP)

-0.26 -0.18

Feb ‘17 0.22 Feb ‘16 1.00 1.17 0.99 1.52 1.45 1.64 1.33 3.09 2.89 3.22 3.95 3.93 5.06 6.43 6.98 6.50 4.09 7.87 7.85

Equities

Danish Krone (DKK)

Fixed income

Emerging Market Local Interest Rates % (1 Year)

Developed Market Local Interest Rates % (1 Year)

25.00

Additional Information

EATON VANCE

Trends & Takeaways

Monthly Market Monitor | March 2017

YTD

1Y

3Y

5Y

Bloomberg Commodity Index

0.21

2.15

0.34

15.95

-13.02

-9.82

Bloomberg Sub Agriculture

-0.28

0.70

3.03

9.08

-10.12

-6.93

Coffee

-6.16

-6.74

2.44

13.25

-15.91

Corn

1.86

5.25

4.16

-4.31

Cotton

0.28

5.08

6.42

Soybean

0.10

-1.61

Soybean Oil

-0.54

Sugar Wheat

3-Mo.

YTD

1Y

3Y

5Y

2.24

4.32

9.86

29.28

-2.56

-6.94

Aluminum

5.65

10.82

13.30

19.70

-1.05

-9.10

-15.28

Copper

-0.97

2.68

7.86

25.10

-6.01

-7.89

-15.32

-11.58

Nickel

10.20

-2.73

9.34

26.89

-10.73

-12.03

32.86

-2.27

-1.31

Zinc

-1.16

4.38

9.72

58.07

8.48

2.75

2.20

18.30

-5.03

3.63

3.93

8.06

10.45

5.94

-3.09

-8.13

-9.56

-2.82

4.62

-10.31

-12.31

Gold

3.55

6.68

8.69

0.57

-2.27

-6.57

-5.82

-2.69

-1.23

27.99

-8.87

-12.92

Platinum

3.50

13.05

13.93

9.69

-11.08

-10.04

2.58

7.26

5.84

-15.91

-17.15

-14.85

Silver

4.92

11.78

15.17

21.62

-5.91

-12.95

-2.72

-1.98

-10.11

24.29

-28.51

-18.25

1.26

9.92

-0.07

-7.81

-8.50

-5.09

Brent Crude

1.11

5.74

-2.28

33.33

-29.30

-18.80

Lean Hogs

-2.34

15.25

-3.82

-13.06

-17.61

-9.39

Heating Oil

0.06

2.11

-6.07

32.71

-23.90

-16.14

Live Cattle

3.33

6.20

2.40

-4.69

-2.63

-2.62

Natural Gas

-11.87

-17.01

-25.40

14.01

-33.53

-20.86

Unleaded Gas

-1.62

0.37

-9.53

17.13

-22.13

-12.39

WTI Crude Oil

1.23

4.34

-2.15

27.63

-31.26

-21.50

Bloomberg Sub Industrial Metals

Bloomberg Sub Precious Metals

Bloomberg Sub Livestock

Additional Information

EATON VANCE

Asset Allocation Ideas

1-Mo.

Bloomberg Sub Energy

Index

Alternatives

3-Mo.

Equities

1-Mo.

Fixed income

Index

Trends & Takeaways

Monthly Market Monitor | March 2017

2010

2011

2012

2013

2014

2015

2016

1/31*

Private Equity 18.85

Managed Futures 18.33

MLP 76.41

MLP 35.85

MLP 13.88

Private Equity 14.19

MLP 27.58

Managed Futures 18.37

Private Equity 5.66

MLP 18.31

MLP 39.60

Global Macro 17.36

Currency -3.85

Private Equity 20.73

Private Equity 11.34

Multi-Strategy 11.19

Private Equity 21.32

Private Equity 11.13

Multi-Strategy 3.84

Commodity 11.77

Commodity 13.83

Commodity 16.23

Global Macro -4.62

Commodity 16.83

Global Macro 6.44

Fixed Income Arbitrage 11.04

Long/Short Equity 17.74

Multi-Strategy 6.09

Long/Short Equity 3.55

Convertible Arbitrage 6.60

Convertible Arbitrage 10.17

Currency 16.04

Event Driven -17.74

Event Driven 10.63

Event Driven 15.47

Long/Short Equity 5.55

Multi-Strategy 4.41

Event Driven 7.33

Long/Short Equity 8.21

Multi-Strategy 11.23

MLP 4.80

Fixed Income Arbitrage 4.29

Currency 6.68

Equity Market Neutral 9.27 Convertible Arbitrage 6.03

Fixed Income Arbitrage 4.37

Equity Market Neutral 1.69 Convertible Arbitrage 0.81 Fixed Income Arbitrage 0.59

Global Macro 3.58

Fixed Income Arbitrage 6.09

Global Macro 3.11

Global Macro 0.18

Currency 3.54

Multi-Strategy 5.76

Managed Futures -0.93

Event Driven 2.68

Global Macro 3.88

Long/Short Equity Long/Short Equity 13.66 -19.76

Multi-Strategy 24.62

Global Macro 13.47

Event Driven 20.38

Event Driven 12.63

Fixed Income Arbitrage 4.69 Equity Market Neutral 4.49

Private Equity -22.61

Long/Short Equity 19.47

Fixed Income Arbitrage 12.51

Multi-Strategy 1.83

Convertible Arbitrage 7.82

MLP 12.72

Multi-Strategy -23.63

Commodity 18.91

Managed Futures 12.22

Convertible Arbitrage 1.13

Currency 7.45

Private Equity 13.30

Convertible Arbitrage 10.95

Managed Futures -4.19

MLP 4.80

Global Macro 4.32

Event Driven 1.57

Currency 11.69

Multi-Strategy 9.29

Currency -5.19

Global Macro 4.58

Fixed Income Arbitrage 3.80

Equity Market Neutral 0.85

Currency -2.04

Equity Market Neutral -1.19 Convertible Arbitrage -1.68

Equity Market Neutral 9.27

Fixed Income Arbitrage -28.82 Convertible Arbitrage -31.59

Managed Futures 6.01

Commodity -35.65

Global Macro 11.55

MLP -36.91

Equity Market Neutral 4.05

Currency 5.68

Event Driven -9.09

Commodity -1.06

Managed Futures -2.56

Equity Market Neutral -40.32

Managed Futures -6.57

Equity Market Neutral -0.85

Commodity -13.32

Managed Futures -2.93

Commodity -9.52

Convertible Arbitrage 5.17 Fixed Income Arbitrage 3.83

Long/Short Equity Long/Short Equity 9.28 -7.31

Event Driven -6.29

Long/Short Equity Long/Short Equity -3.43 0.45

Currency -7.61

Equity Market Neutral -4.58

Equity Market Neutral -1.50

Currency -7.03

Commodity -24.66

Managed Futures -6.84

Managed Futures -6.84

Commodity -17.01

MLP -32.59

Private Equity --

Private Equity --

Additional Information

EATON VANCE

Asset Allocation Ideas

Event Driven 13.20

Multi-Strategy 10.10

Lower

Convertible Arbitrage 47.35 Fixed Income Arbitrage 27.41

Alternatives

2009

Equities

2008

Fixed income

Higher

2007

Trends & Takeaways

Monthly Market Monitor | March 2017

Canada 2.81%

United Kingdom 3.91%

United States 2.00%

Sweden 3.71%

Russia 4.51% Italy 4.25% Japan 2.00%

China 2.03%

Spain 4.43%

Equities

France 3.37%

Fixed income

Germany 2.64%

Mexico 2.04%

Alternatives

Korea 1.79% India 1.35%

Asset Allocation Ideas

Brazil 3.03% Australia 4.24% South Africa 3.05%

Additional Information

EATON VANCE

Trends & Takeaways

Monthly Market Monitor | March 2017

Fixed income

Market Capitalization % of World Total

GDP % of World Total

18% 30%

United States

41%

United States India

Japan

Japan

Hong Kong

Germany

France

Rest of World

3%

4%

3%

Rest of World

5% 8%

Asset Allocation Ideas

7%

China Alternatives

16%

52%

Equities

China

13%

Additional Information

EATON VANCE

Trends & Takeaways

Monthly Market Monitor | March 2017

1.00

8%

Fixed income

10 Year Correlation with US Treasuries

Yield/Duration

1.00 0.93 0.85

0.81

0.75 High Yield Corp

Yield

Floating-Rate Loan

EM Sovereign (USD)

0.50

0.25

Aggregate Treasury

-0.25

4

6

8

10

-0.25

-0.46

Duration

Additional Information

EATON VANCE

Asset Allocation Ideas

-0.50

0% 2

Alternatives

0.00

Municipal

Agency

0.19

Investment Grade Corp

MBS

0

0.42 0.32

4%

2%

Equities

6%

Trends & Takeaways

Monthly Market Monitor | March 2017

1.00

6%

1.00

0.78

5%

0.75

0.74

Equities

4.40%

Fixed income

5 Year Correlation with Municipals

Tax-Equivalent Yield

4% 0.50

3%

2.85% 2.57% 2.44%

2%

1.74%

0.25

Alternatives

Yield

3.26%

0.20

1.87%

0.00 -0.01 -0.11 -0.25

0% Agency

Treasury

Aggregate

MBS

Investment Grade Corp

Municipal

Municipal

Treasury

Investment Grade Corp

High Yield Corp

Floating-Rate Loan

S&P 500

Additional Information

EATON VANCE

Asset Allocation Ideas

1%

Trends & Takeaways

Monthly Market Monitor | March 2017

Fixed income

20 Year Correlation with U.S. Stocks

Asset Allocation

1.00 Alts 25%

U.S. Stocks 40%

Bonds 40%

Intl Stocks 20%

Intl Stocks 15%

0.75 0.45

0.50 0.25

0.20

0.00 -0.09

-0.25

Portfolio 1

Equities

Bonds 30%

U.S. Stocks 30%

Global Macro

Portfolio 2

Multi-Strategy

Managed Futures

Alternatives

20 Year Correlation with Bonds Maximum Drawdown (%)

Portfolio 1

6.37

9.21

-34.06

Portfolio 2

6.77

7.45

-27.88

20 Years ending 1/31/17

1.00 0.75

0.50 0.25

0.32

0.24 0.04

0.00 -0.25 Global Macro

Multi-Strategy

Managed Futures

Additional Information

EATON VANCE

Asset Allocation Ideas

Return (%)

Standard Deviation (%)

Trends & Takeaways

Monthly Market Monitor | March 2017

2007 Emerging Markets 39.42

2008 US Agg 5.24

2010

2011

Small-Cap 26.85

Municipal 10.70

2012 Emerging Markets 18.22

2013

2014

2015

2016

Small-Cap 38.82

S&P 500 13.69

Municipal 3.30

Small-Cap 21.31

YTD 2/17 Emerging Markets 8.70

High Yield 57.51

Emerging Markets 18.88

US Agg 7.84

International 17.32

S&P 500 32.39

Municipal 9.05

S&P 500 1.38

High Yield 17.49

S&P 500 5.94

International 11.17

High Yield -26.39

Bank Loan 51.62

Commodities 16.83

High Yield 4.38

Small-Cap 16.35

International 22.78

US Agg 5.97

US Agg 0.55

S&P 500 11.96

International 4.37

International 31.78

High Yield 15.19

S&P 500 2.11

S&P 500 16.00

Asset Allocation 13.83

Small-Cap 4.89

Bank Loan -0.69

Commodities 11.77

Asset Allocation 3.30

S&P 500 15.06

Bank Loan 1.52

High Yield 15.58

High Yield 7.42

Asset Allocation 4.28

International -0.81

Emerging Markets 11.19

High Yield 2.92

Bank Loan 5.29

High Yield 2.50

Asset Allocation -2.03

Bank Loan 10.16

Small-Cap 2.33

Bank Loan -29.10

Small-Cap 27.17

S&P 500 5.49

Small-Cap -33.79

S&P 500 26.46

Municipal 3.36

Commodities -35.65

Asset Allocation 26.35

Bank Loan 10.13

Small-Cap -4.18

Bank Loan 9.66

US Agg -2.02

Bank Loan 1.60

Small-Cap -4.41

Asset Allocation 8.61

Municipal 1.36

High Yield 2.19

S&P 500 -37.00

Commodities 18.91

International 7.75

International -12.14

Municipal 6.78

Municipal -2.55

Emerging Markets -2.19

High Yield -4.64

US Agg 2.65

Bank Loan 1.06

Bank Loan 2.08

International -43.38

Municipal 12.91

US Agg 6.54

Commodities -13.32

US Agg 4.21

Emerging Markets -2.60

International -4.90

Emerging Markets -14.92

International 1.00

US Agg 0.87

Small-Cap -1.57

Emerging Markets -53.33

US Agg 5.93

Municipal 2.38

Emerging Markets -18.42

Commodities -1.06

Commodities -9.52

Commodities -17.01

Commodities -24.66

Municipal 0.25

Commodities 0.34

Asset Allocation Asset Allocation Asset Allocation 12.91 -0.35 11.91

Additional Information

EATON VANCE

Asset Allocation Ideas

US Agg 6.97

Alternatives

Municipal -2.47

Equities

Commodities 16.23

Asset Allocation Asset Allocation 7.75 -26.69

Lower

2009 Emerging Markets 78.51

Fixed income

Higher

Trends & Takeaways

Monthly Market Monitor | March 2017

US Aggregate

Municipal

High Yield

Bank Loan

Commodities

S&P 500

1.00

0.89

0.79

0.92

0.03

0.08

0.74

0.59

0.51

International

0.81

1.00

0.88

0.79

0.13

0.13

0.78

0.60

0.59

Emerging Markets

0.63

0.77

1.00

0.71

0.18

0.15

0.77

0.61

0.66

Small-Cap

0.82

0.62

0.46

1.00

-0.06

0.01

0.70

0.56

0.43

US Aggregate

-0.11

0.03

0.20

-0.23

1.00

0.55

0.25

-0.01

0.06

Municipal

-0.11

0.07

0.16

-0.26

0.83

1.00

0.33

0.28

-0.05

High Yield

0.65

0.74

0.74

0.54

0.30

0.20

1.00

0.86

0.54

Bank Loan

0.53

0.63

0.60

0.46

0.10

-0.01

0.83

1.00

0.44

Commodities

0.30

0.41

0.49

0.26

-0.02

-0.01

0.58

0.54

1.00

5 Years ended February 28, 2017

10 Years ended February 28, 2017

Additional Information

EATON VANCE

Asset Allocation Ideas

Small-Cap

Alternatives

Emerging Markets

Equities

International

Fixed income

S&P 500

Trends & Takeaways

Monthly Market Monitor | March 2017

1 Mo.

3 Mo.

12 Mo.

01/17

1 Mo.

3 Mo.

12 Mo.

10,189

8,376

12,384

Foreign Large Blend

5,120

11,693

24,661

Foreign Large Blend

5,512

12,931

32,023

Large Blend

3,443

38,693

78,113

Intermediate-Term Bond

4,224

5,284

93,975

Large Value

3,436

14,947

36,582

World Bond

4,135

4,422

(2,657)

Corporate Bond

3,190

763

14,447

3,011

2,234

26,062

01/17 Large Blend

3,679

12,011

11,670

Ultrashort Bond

2,404

6,750

12,131

Mid-Cap Blend

2,485

7,913

11,598

Mid-Cap Blend

2,185

4,928

2,935

Small Blend

2,248

14,082

18,861

Inflation-Protected Bond

1,896

4,150

8,599

Intermediate-Term Bond

2,067

3,615

26,188

Small Blend

1,862

2,426

2,575

Technology

1,695

3,436

3,689

High Yield Muni

1,610

(3,838)

4,410

Short-Term Bond

1,547

2,315

8,216

01/17

1 Mo.

3 Mo.

12 Mo.

01/17

1 Mo.

3 Mo.

12 Mo.

Short Government

(667)

(1,186)

(1,394)

Allocation--50% to 70% Equity

(207)

(4)

53

(317)

2,446

(2,730)

(916)

(2,430)

(11,735)

Mid-Cap Value

(949)

(1,862)

(10,828)

China Region

(320)

(1,351)

(2,866)

Intermediate Government

(1,150)

(3,401)

2,426

Europe Stock

(341)

(1,015)

(23,214)

Large Value

(1,347)

(6,463)

(14,902)

Consumer Defensive

(359)

(1,593)

(3,452)

World Stock

(1,375)

(5,112)

(17,980)

Long Government

(487)

(1,883)

(5,002)

(488)

(7,008)

7,681

(1,662)

(5,231)

(22,400)

World Allocation

(1,690)

(7,233)

(32,377)

Utilities

(763)

(1,551)

143

Health

(2,087)

(6,884)

(19,068)

Trading--Leveraged Equity

(989)

(457)

(5,097)

(10,060)

(30,621)

(107,303)

(2,617)

2,015

284

Large Growth

Large Growth

EATON VANCE

Additional Information

Mid-Cap Growth

Commodities Precious Metals

Asset Allocation Ideas

Small Growth

Health

Alternatives

Bottom 10 Exchange-Traded Fund Categories by Monthly Flows ($MM)

Bottom 10 Open-End Mutual Fund Categories by Monthly Flows ($MM)

Equities

Bank Loan

Diversified Emerging Mkts

Fixed income

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Monthly Market Monitor | March 2017

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with maturities of more than one year issued by emerging markets governments.

JPMorgan Government Bond Index-Emerging Markets (GBI-EM) Global Diversified is an unmanaged index of local-currency bonds with maturities of more than one year issued by emerging market governments Morgan Stanley Capital International (MSCI) Emerging Markets Index is an unmanaged index of emerging markets common stocks Morgan Stanley Capital International All Country Asia Pacific Index (MSCI AC Asia Pac) is an unmanaged total return, capitalization-weighted index that measures the performance of stock markets in 15 Pacific region countries, including Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Sri Lanka, Taiwan and Thailand Morgan Stanley Capital International (MSCI) Japan Index is an unmanaged index designed to measure the performance of the large and mid cap segments of the Japan market Morgan Stanley Capital International (MSCI) World Index is an unmanaged index of equity securities in the developed markets Morgan Stanley Capital International All Country World (MSCI AC World) Index is an unmanaged free float-adjusted market-capitalization-weighted index designed to measure the equity market performance of developed and emerging markets Morgan Stanley Capital International Europe (MSCI Europe) Index is an unmanaged free float-adjusted market-capitalization-weighted index designed to measure the equity market performance of the developed markets in Europe

Equities

instruments issued by the U.S. Treasury BofA Merrill Lynch US Inflation-Linked Treasury Index tracks the performance of USD denominated inflation linked sovereign debt publicly issued by the US government BofA Merrill Lynch Fixed Rate Preferred Securities Index is an unmanaged index of fixed-rate, preferred securities issued in the U.S. BofA Merrill Lynch UK Gilts Index tracks the performance of GBP denominated sovereign debt publicly issued by the UK government in its domestic market.

BofA Merrill Lynch European Union Government Bond Index tracks the performance of sovereign debt publicly issued by countries that are members of the European Union BofA Merrill Lynch U.S. High Yield Index is an unmanaged index of below-investment grade U.S. corporate bonds.

Bloomberg Commodity Index is a broadly diversified index tracking futures contracts on physical commodities CBOE Volatility Index (VIX) tracks the implied volatilities of a wide range of S&P 500 Index options CBOE S&P 500 BuyWrite Index measures the performance of a hypothetical buy-write strategy on the S&P 500 Index FTSE 100 Index is an unmanaged market-capitalization weighted index representing the performance of the 100 largest UK listed blue chip companies, which pass screening for size and liquidity FTSE All Small Index consists of all the companies in the FTSE SmallCap and FTSE Fledgling indices JPMorgan Corporate Emerging Markets Bond Index (CEMBI) Broad Diversified is an unmanaged index of USD-denominated emerging market corporate bonds.

JPMorgan Emerging Markets Bond Index (EMBI) Global Diversified is an unmanaged index of USD-denominated bonds

Fixed income

Bloomberg Barclays Global Aggregate Ex-USD Index is a broad-based measure of global Investment Grade fixed-rate debt investments, excluding USD-denominated debt Bloomberg Barclays High Yield Municipal Bond Index is an unmanaged index of non-Investment Grade Municipal bonds traded in the U.S. Bloomberg Barclays Municipal Bond Index is an unmanaged index of Municipal bonds traded in the U.S. Bloomberg Barclays Taxable Municipal Bond Index is an unmanaged index of Taxable Municipal bonds traded in the U.S. Bloomberg Barclays U.S. Agency Index measures agency securities issued by U.S government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. government Bloomberg Barclays U.S. Aggregate Index is an unmanaged index of domestic investment-grade bonds, including corporate, government and mortgage-backed securities Bloomberg Barclays U.S. Asset Backed Securities (ABS) Index measures ABS with the following collateral type: credit and charge card, auto, and utility loans Bloomberg Barclays U.S. CMBS Index measures the market of conduit and fusion CMBS deals with a minimum current deal size of $300mn Bloomberg Barclays U.S. Corporate Investment Grade Index is an unmanaged index that measures the performance of investment-grade corporate securities within the Barclays U.S. Aggregate Index Bloomberg Barclays U.S. Mortgage Backed Securities (MBS) Index measures agency mortgage-backed pass-through securities issued by GNMA, FNMA, and FHLMC Bloomberg Barclays U.S. Treasury Index measures public debt

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Monthly Market Monitor | March 2017

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calculated by making worst-case scenario assumptions by calculating the returns that would be received if provisions, including prepayment, call or sinking fund, are used by the issuer.

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Municipal-to-Treasury Yield Ratios are relative value indicators that measure the richness or cheapness of Municipal bond yields to comparable maturity Treasury bond yields.

Yield to Worst is a measure which reflects the lowest potential yield earned on a bond without the issuer defaulting. The yield to worst is

Bank Loans – There can be no assurance that the liquidation of collateral securing an investment will satisfy the issuer’s obligation in the event of non-payment or that collateral can be readily liquidated. The ability to realize the benefits of any collateral may be delayed or limited.

Commodities – The value of commodities investments will generally be affected by overall market movements and factors specific to a particular industry or commodity including weather, embargoes, tariffs, or health, political, international and regulatory developments. Credit – Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of non-payment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer’s ability to make principal and interest payments.

Duration – Securities with longer durations tend to be more sensitive to interest rate changes than securities with shorter durations. Equity – Equity investment values are sensitive to stock market volatility. Foreign – Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical, or other conditions. In emerging countries, these risks may be more significant. Gov’t Agency – While certain U.S. Government-sponsored agencies may be chartered or sponsored by acts of Congress, their securities are neither issued nor guaranteed by the U.S. Treasury. Income Market – An imbalance in supply and demand in the income market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. There generally is limited public information about Municipal issuers. Inflation-Linked – Interest payments on inflation-linked securities may vary widely and will fluctuate as principal and interest are adjusted for inflation. Investments in inflation-linked securities may lose value in the event that the actual rate of inflation is different than the rate of the inflation index. Interest Rate – As interest rates rise, the value of certain income investments is likely to decline. Lower-Rated – Investments rated below Investment Grade (typically referred to as “junk”) are generally subject to greater price volatility and illiquidity than higher rated investments. Maturity – Longer-term bonds typically are more sensitive to interest rate changes than shorter-term bonds. Preferred Stocks – When interest rates rise, the value of preferred stocks will generally decline. Prepayment - MBS – Mortgage-backed securities are subject to prepayment risk. Prepayment - Bank Loan – Bank Loans are subject to prepayment risk. Real Estate – Changes in real estate values or economic downturns can have a significant negative effect on issuers in the real estate industry, including REITs.

Equities

index of large-cap stocks commonly used as a measure of U.S. stock market performance S&P/LSTA Leveraged Loan Index is an unmanaged index of the institutional leveraged loan market STOXX Europe 600 Index is a fixed component number index designed to provide a broad yet liquid representation of large, mid and small capitalization companies in Europe BofA Merrill Lynch Indexes: BofA Merrill Lynch™ indices not for redistribution or other uses; provided "as is", without warranties, and with no liability. Eaton Vance has prepared this report, BofAML does not endorse it, or guarantee, review, or endorse Eaton Vance's products.

MSCI Indexes: Source: MSCI. MSCI data may not be reproduced or used for any other purpose. MSCI provides no warranties, has not prepared or approved this report, and has no liability hereunder.

Fixed income

Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index is an unmanaged index of equities in the developed markets, excluding the U.S. and Canada Nikkei 225 Stock Average Index is unmanaged price-weighted index of 225 top-rated Japanese companies listed in the First Section of the Tokyo Stock Exchange Russell 1000 Index is an unmanaged index of 1,000 U.S. large-cap stocks Russell 1000 Growth Index is an unmanaged index of 1,000 U.S. large-cap growth stocks Russell 1000 Value Index is an unmanaged index of 1,000 U.S. large-cap value stocks Russell 2000 Index is an unmanaged index of 2,000 U.S. small-cap stocks Russell 2500 Index is an unmanaged index of approximately 2,500 U.S. small- and mid-cap U.S. stocks Russell Midcap Index is an unmanaged index of U.S. mid-cap stocks Standard & Poor’s 500 Index is an unmanaged

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Monthly Market Monitor | March 2017

Fixed income

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Monthly Market Monitor | March 2017

Before investing, investors should consider carefully the investment objectives, risks, charges and expenses of a mutual fund. This and other important information is contained in the prospectus and summary prospectus which can be obtained from a financial advisor. Prospective investors should read the prospectus carefully before investing.

Equities

Eaton Vance Management (EVM) is an investment advisor with its headquarters located at Two International Place, Boston, MA 02110. This material is for illustrative and informational purposes only and should not be considered investment advice, a recommendation to purchase or sell any particular securities or to adopt any particular investment strategy. Investing entails risks and there can be no assurance that EVM or its affiliates will achieve profits or avoid incurring losses.

Fixed income

Mutual Funds are distributed by Eaton Vance Distributors, Inc. Two International Place, Boston, MA 02110, (800) 225-6265. Member FINRA/ SIPC.

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