monthly-market-monitor-march-2015

Product & Portfolio Strategy Group

Eaton Vance Monthly Market Monitor March 2015 (data as of February 28, 2015)

eatonvance.com/MarketMonitor

Eaton Vance Monthly Market Monitor

Table of Contents 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.

Economic Review

2

5

Inflation Watch

11

Income Markets

13

Equity Markets

22

Alternative Markets

34

Flows Monitor

40

Additional Information

41

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value

Eaton Vance Monthly Market Monitor

List of Exhibits Income Markets

Economic Review Global Growth

5

Fixed Income Characteristics and Performance Analysis

13

U.S. Yields

6

Fixed Income Spread Analysis

14

Global Government Bond Yields

7

Investment Grade Corporate Bond Market Update

15

U.S. Federal and Personal Finances

8

High Yield Corporate Bond Market Update

16

U.S. Corporate Finances

9

Floating-Rate Loan Market Update

17

Municipal Bond Market Update

18

Emerging Markets Bond Market Update

19

Fixed Income Asset Class Return Analysis (tabular)

20

Fixed Income Asset Class Return Analysis (chart)

21

U.S. Housing and Unemployment

10

Inflation Watch

3

Global Inflation

11

Central Bank Target Rates

12

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value

Eaton Vance Monthly Market Monitor

List of Exhibits Flows Monitor

Equity Markets

Fund Flows by Category

22

Dividend Analysis

23

Valuation Analysis

24

Additional Information

Regional/Style Valuation Analysis

25

Glossary of Terms

41

S&P 500 Sector Valuation Analysis

26

About Risk

43

S&P 500 Index Return Analysis

27

About Eaton Vance

44

S&P 500 Index Sectors Return Analysis

29

For More Information

45

MSCI World Index Sectors Return Analysis

30

Global Equity Characteristics & Sector Weights

31

Equity Asset Class Return Analysis (tabular)

32

Equity Asset Class Return Analysis (chart)

33

Alternative Markets

4

40

Equity Performance and Volatility Analysis

Developed Market Currency Performance & Interest Rates

34

Emerging Market Currency Performance & Interest Rates

35

Local Sovereign Interest Rates

37

Commodities Return Analysis

38

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value

Eaton Vance Monthly Market Monitor Economic Review

Global Growth

EM has exhibited higher GDP growth over the years than Developed Markets Developed Markets Real GDP Growth

Emerging Markets Real GDP Growth

% Change YOY

% Change YOY

16%

16%

14%

14%

12%

12%

10%

10%

8%

8%

6%

6%

4%

4%

2%

2%

0%

0%

-2%

-2%

-4%

-4%

-6%

-6%

-8%

-8% '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 est.

'14 Developed Markets Avg. United Kingdom Eurozone

United States Japan

Source: International Monetary Fund and Bureau of Economic Analysis as of 2/28/15

5

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 est.

'14 Emerging Markets Avg. Russia China Source: International Monetary Fund as of 2/28/15

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Brazil India

Eaton Vance Monthly Market Monitor Economic Review

U.S. Yields

Short-term rates remain low; yields rose across the Treasury curve month-over-month U.S. Treasury Yields

10-Year U.S. Treasury Yield

18%

6%

16% 5% 14% 12%

4%

10% 3% 8% 6%

2%

4% 1% 2% 0%

0% 3M

2Y

5Y

Source: Bloomberg as of 2/28/15

6

10Y

30Y

Feb-15

Jan-15

Dec-12

Dec-10

Dec-08

Dec-06

'54 '57 '60 '63 '66 '69 '72 '75 '78 '81 '84 '87 '90 '93 '96 '99 '02 '05 '08 '11 '14

Source: Federal Reserve as of 2/28/15

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Eaton Vance Monthly Market Monitor Economic Review

Global Government Bond Yields

10-year government bond yields have generally declined 10-Year Government Bond Yields Greece

10-Year Government Bond Yields 35%

9.3%

New Zealand

3.3%

Australia

2.5%

United States

30%

2.0%

Portugal

1.8%

United Kingdom

1.8%

Norway

1.4%

Italy

1.3%

Canada

1.3%

Spain

1.3%

Ireland

25%

20%

0.9%

Sweden

0.7%

France

0.6%

Belgium

15%

0.6%

Austria

0.4%

Netherlands

0.4%

Finland

0.3%

Japan

0.3%

Germany

0.3%

Denmark

10%

5%

0.3%

Switzerland

0.0% 0%

0% 2%

4%

6%

8%

10%

12%

14%

'88

'90

'92

'94

Germany Source: Bloomberg as of 2/28/15

7

'96

'98

'00

'02

United Kingdom

Source: Bloomberg as of 2/28/15

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

'04

'06 Japan

'08

'10

'12 Greece

'14

Eaton Vance Monthly Market Monitor Economic Review

U.S. Federal and Personal Finances

Continuous government spending remains status quo, while the rate of savings fluctuates U.S. Personal Savings Rate and Household Debt Service Ratio (% of disposable annual income)

U.S. Federal Budget and Debt (% of GDP) 140%

10% Budget Surplus / Deficit

16%

Federal Debt

5%

120%

0%

14%

12% 100%

-5% 10% 80%

-10%

8% -15%

60% 6%

-20% 40% 4%

-25% 20%

-30% -35%

0% '42 '46 '50 '54 '58 '62 '66 '70 '74 '78 '82 '86 '90 '94 '98 '02 '06 '10 '14

2%

0% '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 Personal Savings Rate

Source: White House Office of Management and Budget as of 2/28/15

8

Source: Federal Reserve as of 2/28/15

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Household Debt Service Ratio

Eaton Vance Monthly Market Monitor Economic Review

U.S. Corporate Finances

Corporate America has benefited, as revenues and earnings increase S&P 500 Earnings and Revenues Per Share $140

$1,200 Earnings per Share

Revenues per Share $1,100

$120

$1,000

$100

$900

$80

$800

$60

$700

$40

$600

$20

$0

$500 '00

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

Source: Baseline as of 2/28/15

9

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

'13

'14

est. '15

Eaton Vance Monthly Market Monitor Economic Review

U.S. Housing and Unemployment

Home prices have risen; unemployment and payroll data has improved U.S. Median Existing Home Prices

U.S. Unemployment and Jobs 14%

$250

142,000 Total Jobs

Unemployment Rate $230

140,000

12% 138,000

$210 10%

136,000 134,000

8%

$170

132,000 $150

6%

130,000

$130

128,000

4% $110

126,000 2%

$90

124,000 0%

$70 '93

'96

'99

Source: Standard & Poor’s as of 2/28/15

10

'02

'05

'08

'11

'14

122,000 '03

'04

'05

'06

'07

'08

'09

'10

'11

Source: U.S. Bureau of Labor Statistics as of 2/28/15

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

'12

'13

'14

'15

Thousands

Thousands

$190

Eaton Vance Monthly Market Monitor Inflation Watch

Global Inflation

Inflation is low in most developed countries; EM average inflation has hovered around 6% Emerging Markets Inflation

Developed Markets Inflation

% Change YOY

% Change YOY 22%

22%

20%

20%

18%

18%

16%

16%

14%

14%

12%

12%

10%

10%

8%

8%

6%

6%

4%

4%

2%

2%

0%

0%

-2%

-2% '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 est.

'14 Developed Markets Avg. Eurozone Japan United Kingdom United States

Source: International Monetary Fund, U.S. Bureau of Labor Statistics as of 2/28/15

11

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 est.

'14 Emerging Markets Avg. Brazil Russia India China Source: International Monetary Fund as of 2/28/15

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Eaton Vance Monthly Market Monitor Inflation Watch

Central Bank Target Rates

Banks continue to anchor short-term rates near zero Bank of England

18% 16% 14% 12% 10% 8% 6% 4% 2% 0%

Bank of Japan 18% 16% 14% 12% 10% 8% 6% 4% 2% 0%

'74 '76 '78 '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 Source: Bank of England as of 2/28/15

'74 '76 '78 '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 Source: Bank of Japan as of 2/28/15

European Central Bank 18% 16% 14% 12% 10% 8% 6% 4% 2% 0%

18% 16% 14% 12% 10% 8% 6% 4% 2% 0% '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Source: European Central Bank as of 2/28/15

12

U.S. Federal Reserve Bank

'84

'86

'88

'90

'92

'94

'96

'98

'00

'02

Source: Federal Reserve as of 2/28/15

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

'04

'06

'08

'10

'12

'14

Eaton Vance Monthly Market Monitor Income Markets

Fixed Income Characteristics and Performance Analysis Premium price valuations exist in current environment Averages

Total Returns (%)

Coupon (%)

Price ($)

Yield (%)

Maturity (yrs.)

Duration (yrs.)

1-Mo.

3-Mo.

YTD

1Y

3Y

5Y

10Y

3.25

106.5

2.12

7.7

5.5

-0.94

1.23

1.14

5.05

2.76

4.29

4.82

U.S. Treasury

2.07

104.7

1.34

6.9

5.7

-1.54

1.15

1.00

4.40

1.82

3.71

4.49

U.S. Agency

2.42

104.8

1.27

4.6

3.5

-0.79

0.75

0.74

3.12

1.59

2.52

3.94

U.S. Mortgage Backed Securities

3.80

106.2

2.46

6.2

3.7

-0.16

0.84

0.68

4.80

2.44

3.56

4.81

U.S. Asset Backed Securities

1.86

101.3

1.44

2.7

2.5

-0.38

0.27

0.48

1.68

1.55

2.88

3.44

U.S. Commercial Mortgage Backed Securities

3.99

105.1

2.21

4.9

4.4

-0.64

0.98

1.13

3.59

3.80

6.71

5.43

U.S. Investment Grade Corporate

4.42

109.6

2.93

10.8

7.4

-1.01

2.05

1.99

6.54

4.76

6.49

5.72

U.S. Aggregate Local Authorities

3.18

18.2

9.6

-1.95

2.68

1.73

10.76

5.57

8.38

6.65

Index Barclays U.S. Aggregate Index

5.13

120.3

Barclays Municipal Bond Index

4.84

109.1

2.00

13.3

6.1

-1.03

1.23

0.72

6.49

3.73

5.00

4.75

BofAML US Inflation-Linked Treasury Index

1.12

109.5

-0.05

9.6

6.9

-1.33

0.92

1.96

3.79

0.55

4.60

4.71

BofAML Preferred Index (Fixed Rate)

6.35

104.3

4.53

-

5.3

0.67

2.54

2.72

11.92

6.84

8.23

2.89

Barclays U.S. Corporate High Yield Index

6.85

101.4

5.88

6.5

4.1

2.41

1.59

3.09

2.80

7.60

9.38

7.92

S&P / LSTA Leveraged Loan Index JPMorgan Emerging Markets Bond Index Plus (EMBI+) JPMorgan Corporate Emerging Markets Bond Index (CEMBI) Diversified JPMorgan Government Bond Index-Emerging Markets (GBI-EM) Global Diversified Barclays Global Aggregate Ex-U.S. Index

-

97.0

5.17

-

0.1

1.41

0.47

1.75

2.52

5.04

5.45

4.99

6.69

104.1

5.97

-

7.9

0.73

-1.19

1.30

5.36

3.75

6.97

7.68

5.37

102.0

5.21

-

5.9

1.37

0.00

2.20

5.42

-

-

-

6.85

-

6.15

-

4.9

-1.34

-6.88

-1.01

-5.83

-3.53

2.14

6.16

2.91

113.9

0.93

9.0

7.4

-0.78

-3.78

-2.60

-8.17

-2.28

0.94

2.68

BofAML U.K. Gilts Index

3.86

121.3

1.76

15.6

10.9

-1.69

0.69

-0.72

3.60

3.41

7.54

3.87

BofAML European Union Government Bond Index

3.56

122.1

0.81

10.6

8.2

-0.25

-4.81

-3.64

-5.67

2.47

3.23

3.69

Source: Barclays, JPMorgan, BofA Merrill Lynch and Standard & Poor’s as of 2/28/15 13

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Eaton Vance Monthly Market Monitor Income Markets

Fixed Income Spread Analysis (bps)

Compression of spreads trending below average levels

300

240%

276

220%

250 216

2500 High

1581

1600 209%

183

150 100

180%

1717

800

140%

600

120%

400 110%

50

100% 4 10Y TIPS Breakeven

80%

1018

1000

160%

200

103

0

84%

618

180

192

33

57 16

9

-13

Agency

MBS

252 143 18

10Y TIPS Muni Break-Even Ratio (%)

Current Avg

1699

1500

176

94

63 56

ABS

CMBS

Cheap

123

Corporate

865

119 35

121

492

MBS

ABS

CMBS

Corporate

312 149

181 234 Rate Loans

233

Markets (USD)

Taxable FloatingPreferred Muni/BABs Rate Loans

431

399

-3 Preferred Floating- Emerging

Taxable Muni/BABs

Agency

568

236 0

Rich

516

500

224

76

0

Low

1000

-200

30Y Muni Ratio

1971

2000

1400

200%

1200

200

0

1800

High Yield

Emerging Markets High Yield (USD)

Max Spread Date

3/22/05

12/18/08

11/20/08

12/3/08

1/6/09

11/21/08

12/3/08

4/29/09

3/9/09

12/19/08

10/24/08

12/16/08

Min Spread Date

11/20/08

1/29/07

3/12/13

7/27/10

10/1/09

3/7/05

3/11/05

3/9/05

3/8/06

3/31/06

6/1/07

5/23/07

Spread on 12/31/14

168

104

16

27

58

98

131

121

217

518

387

483

Spread on 12/31/13

224

106

17

34

55

126

114

133

286

466

334

382

Spread on 12/31/12

245

96

13

50

43

124

141

140

242

529

248

511

Source: Barclays, JPMorgan, BofA Merrill Lynch, Standard & Poor’s and U.S. Dept. of the Treasury as of 2/28/15. Spread history measures past 10 years.

14

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

All spreads are in basis points and measure option-adjusted yield spread relative to comparable maturity U.S. Treasuries with the exception of floating-rate loans, which is the average discounted spread over Libor. Agency represented by Barclays U.S. Agency Index. MBS represented by Barclays U.S. Mortgage Backed Securities (MBS) Index. ABS represented by Barclays U.S. Asset Backed Securities (ABS) Index. CMBS represented by Barclays U.S. CMBS Investment Grade Index. Corporate represented by Barclays U.S. Corporate Index. Taxable Muni/BABs represented by Barclays U.S. Aggregate Local Authorities Index. Preferred represented by BofA Merrill Lynch Fixed Rate Preferred Securities Index. Floating-Rate Loans represented by S&P/LSTA Leveraged Loan Index. Emerging Markets(USD) represented by JPMorgan Emerging Markets Bond Index Plus(EMBI+). High Yield represented by Barclays U.S. Corporate High Yield Index.

Eaton Vance Monthly Market Monitor Income Markets

Investment Grade Corporate Bond Market Update

Narrow spreads and premium prices have resulted in rich valuations Spreads and Prices

Spreads and Prices $125

700

Avg. Spread (bps)

Avg. Price ($)

Current

123

109.6

Average

176

105.2

Median

143

106.7

High

618

115.4

Low

76

83.7

600

bps

500

$100

400 Spread

300

Price $75

200 100

$50

0 '05

'06

'07

'08

'09

'10

'11

'12

'13

'14

'15

Source: Barclays as of 2/28/15

Source: Barclays as of 2/28/15 Averages Yield to Worst Spread (%) (bps)

Coupon (%)

Price ($)

Barclays U.S. Corp Index

4.42

109.6

2.93

AAA Index

3.57

108.1

2.58

AA Index

3.09

106.6

2.17

A Index

4.22

110.1

BBB Index

4.93

109.7

Total Returns (%) Maturity (yrs.)

Duration (yrs.)

1-Mo.

3-Mo.

YTD

1Y

3Y

5Y

10Y

123

10.8

7.4

-1.01

2.05

1.99

6.54

4.76

6.49

5.72

69

16.6

9.8

-2.29

2.31

1.56

7.88

3.13

5.59

4.65

66

9.4

6.5

-1.30

2.01

1.75

5.84

3.16

4.89

4.82

2.63

98

10.3

7.2

-1.21

2.15

1.85

6.43

4.49

6.25

5.23

3.41

162

11.5

7.6

-0.71

1.94

2.20

6.77

5.42

7.24

6.41

Source: Barclays and Morningstar as of 2/28/15

15

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

All spreads are in basis points and measure option-adjusted yield spread relative to comparable maturity U.S. Treasuries.

Eaton Vance Monthly Market Monitor Income Markets

High Yield Corporate Bond Market Update Potentially attractive yields along with below average defaults may offer opportunity Annual Default Rate

Spreads and Prices 2000

$125

15%

Price

bps

1500 $100

10%

$75

5%

$50

0%

1000 Spread 500 0 '05

'06

'07

'08

Current Average Median High Low Source: Barclays as of 2/28/15

'09

'10

'11

Avg. Spread (bps) 431 568 491 1971 233

'12

'13

'14

'82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14

'15

Avg. Price ($) 101.4 96.4 99.3 107.4 55.1

Default Rate 3.0% 3.7% 2.8% 11.5% 0.4%

Current Average Median High Low Source: JPMorgan as of 2/28/15

Coupon (%)

Price ($)

Averages Yield to Worst Spread Maturity (%) (bps) (yrs.)

Total Returns (%) Duration (yrs.)

1-Mo.

3-Mo.

YTD

1Y

3Y

5Y

10Y

Barclays U.S. Corp High Yield Index BB Index B Index CCC Index

6.85

101.4

5.88

431

6.5

4.1

2.41

1.59

3.09

2.80

7.60

9.38

7.92

5.98 7.04 8.52

105.4 101.2 92.6

4.45 6.00 9.36

285 444 779

7.1 6.1 5.6

4.8 3.8 3.2

1.85 2.70 3.33

2.51 1.52 -0.28

3.17 3.20 2.80

5.57 2.14 -1.06

7.67 7.28 8.45

9.52 9.07 9.76

8.17 6.82 7.19

Below CCC Index

9.26

69.7

19.05

1,652

5.0

3.3

-0.14

-9.28

-2.12

-40.42

-10.41

-2.20

2.30

Source: Barclays and Morningstar as of 2/28/15

16

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

All spreads are in basis points and measure option-adjusted yield spread relative to comparable maturity U.S. Treasuries.

Eaton Vance Monthly Market Monitor Income Markets

Floating-Rate Loan Market Update Strong fundamentals and discount prices

Annual Default Rate

Spreads and Prices 2000

12%

$125 Price

10%

bps

1500

8%

$100

6%

1000 Spread

4%

$75

500

2%

0

0%

$50 '05

'06

'07

'08

'09

'10

'11

'12

Avg. Spread (bps) Current 492 Average 516 Median 483 High 1699 Low 234 Source: Standard & Poor’s and LCD as of 2/28/15

'13

'14

'15

Avg. Price ($) 97.0 93.3 95.9 101.0 62.0

Default Rate 3.9% 2.6% 1.9% 10.8% 0.2%

Current Average Median High Low

Averages Nominal Secondary Spread Spread (bps) (bps)

Source: Standard & Poor’s and LCD as of 2/28/15 Total Returns (%)

Price ($)

Yield (%)

Life (yrs.)

S&P/LSTA Leveraged Loan Index

97.0

5.17

443

518

4.99

BBB BB B CCC D

99.4 99.2 97.4 94.4 66.4

3.58 4.21 5.71 9.46 -

317 377 478 764 -

341 407 582 1006 -

4.71 5.03 5.04 5.37 -

Duration (yrs.)

1-Mo.

3-Mo.

YTD

1Y

3Y

5Y

10Y

0.1

1.41

0.47

1.75

2.52

5.04

5.45

4.99

-

1.08 1.28 1.62 0.63 -0.50

0.98 1.13 0.29 0.53 -11.74

1.44 1.89 1.77 1.36 -1.67

2.19 3.01 2.32 5.27 -12.30

3.10 4.04 5.05 11.80 8.50

3.69 4.60 6.09 8.66 6.11

3.98 3.99 5.01 6.70 -4.75

Source: Standard & Poor’s as of 2/28/15

17

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

All spreads are in basis points and measure the average discounted spread over Libor.

Eaton Vance Monthly Market Monitor Income Markets

Municipal Bond Market Update

Munis offer a potentially attractive alternative to taxable income investments Credit Quality Spreads vs. AAA

AAA Municipal Yields (%) 400

5Y 10Y 30Y

6%

250%

AA A BBB

300

bps

8%

AAA Muni-to-Treasury Yield Ratios (%)

5Y 200%

4%

200

150%

2%

100

100%

0%

0 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Current Average Median High Low

5Y 1.19 2.06 1.68 3.97 0.62

10Y 2.02 2.95 2.95 4.86 1.47

Source: Barclays as of 2/28/15

Barclays Municipal Bond Index

30Y 2.87 4.03 4.20 5.94 2.47

10Y 30Y

50% '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Current Average Median High Low

AA 22 18 19 32 8

A 56 67 68 160 21

Source: Barclays as of 2/28/15 Averages Coupon Price Yield To Worst Maturity (%) ($) (%) (yrs.)

4.84 109.1 2.00 13.3

'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

BBB 97 141 138 354 32

5Y 79 87 80 220 59

Current Average Median High Low

10Y 101 93 91 187 75

30Y 110 103 100 209 84

Source: Barclays as of 2/28/15 Total Returns (%) Duration (yrs.)

6.1

1-Mo.

3-Mo.

YTD

1Y

3Y

5Y

10Y

-1.03

1.23

0.72

6.49

3.73

5.00

4.75

Barclays 5-Year Municipal Bond Index

4.85

113.8

1.36

4.9

3.9

-0.67

0.51

0.83

2.14

2.10

3.29

4.11

Barclays 10-Year Municipal Bond Index

4.82

113.7

1.96

9.9

5.6

-1.14

1.32

0.85

6.26

3.77

5.34

5.16

Barclays 22+ Year Municipal Bond Index

4.94

103.3

2.88

26.5

9.8

-1.43

2.11

1.07

11.14

5.42

6.89

5.33

Barclays High Yield Municipal Bond Index

5.44

53.9

6.29

20.4

9.8

-0.40

1.92

1.38

9.48

7.21

8.04

5.42

Source: Barclays as of 2/28/15

18

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

All spreads are in basis points.

Eaton Vance Monthly Market Monitor Income Markets

Emerging Markets Bond Market Update

EM debt may provide enhanced income and portfolio diversification Sovereign EMD Spreads (USD)

Local EMD Yields (%)

Corporate EMD Spreads (USD)

1300

1300

900

900

12%

bps

bps

10% 8%

500

500

100

6%

100 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Current Average Median High Low Source: JPMorgan as of 2/28/15

4% '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Avg. Spread (bps) 399 312 296 865 149

Avg. Spread (bps) 355 350 322 1085 149

Current Average Median High Low

Price ($)

Averages Yield (%)

JPMorgan Emerging Markets Bond Index Plus (EMBI+)

6.69

104.1

JPMorgan Corporate Emerging Markets Bond Index (CEMBI) Diversified

5.37

JPMorgan Government Bond Index-Emerging Markets (GBI-EM) Global Diversified

6.85

Avg. Yield (%) 6.15 6.83 6.80 9.72 5.16

Current Average Median High Low

Source: JPMorgan as of 2/28/15 Coupon (%)

'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Source: JPMorgan as of 2/28/15 Total Returns (%) Duration (yrs.)

1-Mo.

3-Mo.

YTD

1Y

3Y

5Y

10Y

5.97

7.9

0.73

-1.19

1.30

5.36

3.75

6.97

7.68

102.0

5.21

5.9

1.37

0.00

2.20

5.42

-

-

-

-

6.15

4.9

-1.34

-6.88

-1.01

-5.83

-3.53

2.14

6.16

Source: Morningstar and JPMorgan as of 2/28/15

19

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

All spreads are in basis points and measure option-adjusted yield spread relative to comparable maturity U.S. Treasuries.

Diversification does not guarantee profit or eliminate the risk of loss.

Eaton Vance Monthly Market Monitor Income Markets

Fixed Income Asset Class Return Analysis (%) U.S. income sector performance was positive year-to-date

Index Barclays U.S. Aggregate Index

1-Mo.

3-Mo.

YTD

1Y

3Y

5Y

10Y

2014

2013

2012

2011

2010

-0.94

1.23

1.14

5.05

2.76

4.29

4.82

5.97

-2.02

4.21

7.84

6.54

-2.75

1.99

9.81

5.87

U.S. Treasury

-1.54

1.15

1.00

4.40

1.82

3.71

4.49

5.05

U.S. Agency

-0.79

0.75

0.74

3.12

1.59

2.52

3.94

3.58

-1.38

2.16

4.82

4.36

U.S. Mortgage Backed Securities

-0.16

0.84

0.68

4.80

2.44

3.56

4.81

6.08

-1.41

2.59

6.23

5.37

U.S. Asset Backed Securities

-0.38

0.27

0.48

1.68

1.55

2.88

3.44

1.88

-0.27

3.66

5.14

5.85

U.S. Commercial Mortgage Backed Securities

-0.64

0.98

1.13

3.59

3.80

6.71

5.43

3.86

0.23

9.66

6.02

20.40

U.S. Investment Grade Corporate

-1.01

2.05

1.99

6.54

4.76

6.49

5.72

7.46

-1.53

9.82

8.15

9.00

U.S. Aggregate Local Authorities

-1.95

2.68

1.73

10.76

5.57

8.38

6.65

14.15

-4.56

9.61

18.10

7.22

Barclays Municipal Bond Index

-1.03

1.23

0.72

6.49

3.73

5.00

4.75

9.05

-2.55

6.78

10.70

2.38

BofAML US Inflation-Linked Treasury Index

-1.33

0.92

1.96

3.79

0.55

4.60

4.71

4.49

-9.35

7.33

14.10

6.34

BofAML Preferred Index (Fixed Rate)

0.67

2.54

2.72

11.92

6.84

8.23

2.89

15.44

-3.65

13.60

4.11

13.66

7.44

15.81

4.98

15.12

Barclays U.S. Corporate High Yield Index

2.41

1.59

3.09

2.80

7.60

9.38

7.92

2.45

S&P / LSTA Leveraged Loan Index

1.41

0.47

1.75

2.52

5.04

5.45

4.99

1.60

5.29

9.66

1.52

10.13

0.73

-1.19

1.30

5.36

3.75

6.97

7.68

6.15

-8.31

18.04

9.20

11.83

1.37

0.00

2.20

5.42

-

-

-

5.70

-1.73

16.95

3.24

13.50

-1.34

-6.88

-1.01

-5.83

-3.53

2.14

6.16

-5.72

-8.98

16.76

-1.75

15.68

Barclays Global Aggregate Ex-U.S. Index

-0.78

-3.78

-2.60

-8.17

-2.28

0.94

2.68

-3.08

-3.08

4.09

4.36

4.95

BofAML U.K. Gilts Index

-1.69

0.69

-0.72

3.60

3.41

7.54

3.87

7.96

-2.44

7.54

16.04

4.32

BofAML European Union Government Bond Index

-0.25

-4.81

-3.64

-5.67

2.47

3.23

3.69

1.04

4.67

11.62

3.12

-3.55

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

Source: Morningstar as of 2/28/15

20

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Eaton Vance Monthly Market Monitor Income Markets

Fixed Income Asset Class Return Analysis (%) U.S. income sector performance was positive year-to-date

Higher

Lower

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

YTD 2/15

EM (Local Currency) 6.27

EM (Local Currency) 15.22

EM (Local Currency) 18.11

Treasury 13.74

High Yield 58.21

EM (Local Currency) 15.68

Municipal 10.70

EM (Local Currency) 16.76

High Yield 7.44

Municipal 9.05

High Yield 3.09

Bank Loan 5.06

High Yield 11.85

Global Agg Ex-U.S. 11.03

MBS 8.34

Bank Loan 51.62

High Yield 15.12

Treasury 9.81

High Yield 15.81

Bank Loan 5.29

Investment Grade 7.46

Investment Grade 1.99

Municipal 3.51

Global Agg Ex-U.S. 8.16

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

Bank Loan 1.75

Treasury 2.79

Bank Loan 6.74

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

Treasury 1.00

High Yield 2.74

MBS 5.22

Investment Grade 4.56

Investment Grade -4.94

Municipal 12.91

Treasury 5.87

High Yield 4.98

Municipal 6.78

Municipal -2.55

High Yield 2.45

Municipal 0.72

MBS 2.61

Municipal 4.84

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

MBS 0.68

Investment Grade 1.68

Investment Grade 4.30

Bank Loan 2.08

High Yield -26.16

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

EM (Local Currency) -1.01

Global Agg Ex-U.S. -8.65

Treasury 3.08

High Yield 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

Global Agg Ex-U.S. -2.60

Source: Morningstar as of 2/28/15

21

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information. Investment Grade represented by Barclays U.S. Corporate Index. MBS represented by Barclays U.S. Mortgage Backed Securities (MBS) Index. Treasury represented by Barclays U.S. Treasury Index. High Yield represented by Barclays U.S. Corporate High Yield Index.

Municipal represented by Barclays Municipal Bond Index. Bank Loan represented by S&P/LSTA Leveraged Loan Index. Global Agg Ex-U.S. represented by Barclays Global Aggregate Ex-USD Index. EM(Local Currency) represented by JPMorgan Government Bond Index-Emerging Markets (GBI-EM) Global Diversified.

Eaton Vance Monthly Market Monitor Equity Markets

Equity Performance and Volatility Analysis Volatility fell during the month

Value vs. Growth

15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% 2/11

8/11

2/12

8/12

2/13

Source: FactSet, Zephyr and Morningstar as of 2/28/15

8/13

2/14

8/14

2/15

Russell 1000 Russell 2000

12-Mo Rolling Excess Returns

12-Mo Rolling Excess Returns

Large Cap vs. Small Cap 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% 2/11

2/12

8/12

2/13

8/13

Correlation of S&P 500 Stocks

2/14

8/14

2/15

Russell 1000 Value Russell 1000 Growth

Source: FactSet, Zephyr and Morningstar as of 2/28/15

CBOE Market Volatility Index (VIX)

1.00

50

0.80

40

0.60

30

0.40

20

0.20

10

0.00 2/91

8/11

0 2/95

2/99

Source: BA540, Ned Davis Research as of 2/28/15*

2/03

2/07

2/11

2/15

S&P 500 Stocks Correlation Average

2/10

2/11

2/12

Source: FactSet, Zephyr and Morningstar as of 2/28/15

*Copyright 2015 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Rights Reserved. See NDR Disclaimer at www.ndr.com/copyright.html. For data vendor disclaimers refer to www.ndr.com/vendorinfo/.

22 Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

2/13

2/14 VIX Average

2/15

Eaton Vance Monthly Market Monitor Equity Markets

Dividend Yields

Yields are steadily from their peak three years ago Historical Yields

Current Yields

4.5%

3.5%

4.0%

3.0%

2.9 2.6

3.5%

2.5%

3.0%

2.0%

2.5%

1.5%

2.0%

1.0%

1.5%

0.5%

1.0%

1.9

2.0

0.0% 2/10 7/10 12/10 5/11 10/11 3/12 8/12 1/13 6/13 11/13 4/14 9/14 2/15

Source: FactSet, Zephyr and Morningstar as of 2/28/15

23

2.3

S&P 500

MSCI EM

MSCI EAFE

MSCI World

S&P 500

10 Yr Treasury MSCI World

Source: FactSet, Zephyr and Morningstar as of 2/28/15

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

MSCI EM

MSCI EAFE

Eaton Vance Monthly Market Monitor Equity Markets

Valuation Analysis

P/E Multiples continue to expanded globally S&P 500 Forward P/E

MSCI World Forward P/E

22x

22x

19x

19x

16x

16x

13x

13x

10x

10x

7x

7x

4x 2/05

2/06

2/07

2/08

2/09

2/10

2/11

2/12

2/13

2/14

2/15

S&P 500 Forward P/E Average

Source: FactSet, Zephyr and Morningstar as of 2/28/15

4x 2/05

2/06

2/07

2/09

2/10

2/11

2/12

2/13

2/14

2/15

MSCI World Forward P/E Average

Source: FactSet, Zephyr and Morningstar as of 2/28/15

MSCI EAFE Forward P/E

MSCI EM Forward P/E 22x

22x

19x

19x

16x

16x

13x

13x

10x

10x

7x

7x 4x

4x 2/05

2/06

2/07

2/08

2/09

2/10

Source: FactSet, Zephyr and Morningstar as of 2/28/15

24

2/08

2/11

2/12

2/13

2/14

2/15

MSCI EM Forward P/E Average

2/05

2/06

2/07

2/08

2/09

2/10

Source: FactSet, Zephyr and Morningstar as of 2/28/15

Forward P/E is market price per share divided by expected earnings per share over the next twelve months.

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

2/11

2/12

2/13

2/14

2/15

MSCI EAFE Forward P/E Average

Eaton Vance Monthly Market Monitor Equity Markets

Valuation Analysis

Many regions are trading at their 10 year highs Regions/Styles: Current NTM P/E vs. 10-Year High, Low, Average 30.00

25.00 Average

20.00

Current Current P/E MSCI World

15.00

10.00

5.00

0.00 SP500

R2000

R1000G

R1000V

MSCI World

MSCI EAFE

MSCI EM

MSCI Europe

MSCI AC Asia Pac

SP500

R2000

R1000G

R1000V

MSCI World

MSCI EAFE

MSCI EM

MSCI Europe

MSCI AC Asia Pac

Average

13.87

19.77

16.04

12.68

13.37

12.67

10.89

11.85

13.81

High

17.18

28.26

19.30

15.98

16.80

15.65

14.98

15.95

20.23

Low

10.58

14.33

11.10

9.53

9.25

8.28

6.86

7.72

9.27

Current

17.18

23.32

18.99

15.98

16.80

15.65

11.40

15.95

13.67

Source: FactSet as of 2/28/15

25

NTM P/E is market price per share divided by expected earnings per share over the next twelve months.

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Eaton Vance Monthly Market Monitor Equity Markets

Valuation Analysis

9 out of 10 sectors are trading above their long term average S&P 500 Sectors: Current NTM P/E vs. 10-Year High, Low, Average

45.00 40.00 35.00 30.00 Average

25.00

Current 20.00 Current P/E S&P 500

15.00 10.00 5.00 0.00 Consumer Discretionary

Consumer Staples

Energy

Financials

Health Care

Industrials

Information Technology

Materials

Telecom

Utilities

Consumer Discretionary

Consumer Staples

Energy

Financials

Health Care

Industrials

Information Technology

Materials

Telecom

Utilities

Average

16.62

15.93

11.89

11.97

14.07

14.64

15.45

14.68

14.61

14.24

High

29.37

20.20

27.29

17.44

17.93

18.09

21.10

25.70

19.31

17.81

Low

12.30

11.51

7.86

8.57

9.61

8.92

10.82

9.28

9.91

10.05

Current

19.34

20.20

27.29

13.40

17.92

16.58

16.28

17.93

14.14

16.71

Source: FactSet as of 2/28/15

26

NTM P/E is market price per share divided by expected earnings per share over the next twelve months.

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Eaton Vance Monthly Market Monitor Equity Markets

S&P 500 Index – 1-Month Return Analysis Smaller cap, lower quality stocks performed best Trailing 12 Month P/E

Market Cap 9.9

10.0%

10.0% 8.4

8.0% 6.0% 4.0%

6.5

5.9

5.8

8.0%

5.8

6.0%

3.4

5.8

6.0

S&P 500

$50B+

5.1

4.0%

2.0%

2.0%

0.0%

0.0% S&P 500

28.1+

18.6 - 28.1

14.1 - 18.6

9.3 - 14.1

<9.3

Source: FactSet, Zephyr and Morningstar as of 2/28/15

9.1 6.6 5.8

5.1

$0 - $5B

10.0%

6.0%

4.8

7.7

8.0%

6.9

6.2

4.3 4.0%

2.0%

2.0%

6.2

5.9

5.8

4.1

4.0%

0.0%

4.5

0.0% S&P 500

A+

A

A-

Source: FactSet, Zephyr and Morningstar as of 2/28/15

27

$5B - $10B

Dividend Yield

10.0% 8.0%

$10B - $50B

Source: FactSet, Zephyr and Morningstar as of 2/28/15

S&P 500 Quality Ranking

6.0%

6.8

B+

B

B-

C

S&P 500

3.5+

2.4 - 3.5

1.6 - 2.4

Source: FactSet, Zephyr and Morningstar as of 2/28/15

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

0.6 - 1.6

0.0 - 0.6

Eaton Vance Monthly Market Monitor Equity Markets

S&P 500 Index â&#x20AC;&#x201C; YTD Analysis Mid-quality companies lead year to date Trailing 12 Month P/E

Market Cap

10.0% 8.0

8.0%

6.0% 4.3

6.0% 4.0%

4.0% 3.1 2.6

3.3

2.4

2.7

2.6

2.0%

2.3

2.0%

1.4

0.0% -0.3 -2.0%

0.0% S&P 500

28.0+

18.5 - 28.0

14.0 - 18.5

9.4 - 14.0

<9.4

Source: FactSet, Zephyr and Morningstar as of 2/28/15

S&P 500

$50B+

$5B - $10B

$0 - $5B

Source: FactSet, Zephyr and Morningstar as of 2/28/15

S&P 500 Quality Ranking

Dividend Yield

28.4

30.0%

$10B - $50B

6.0%

5.2

4.9

25.0% 4.0%

20.0% 15.0% 11.0

10.0% 5.0%

2.6

16.4

13.5

12.2

7.4 2.6

0.0% 1.4

0.0%

-0.2 -2.0%

S&P 500

A+

A

A-

Source: FactSet, Zephyr and Morningstar as of 2/28/15

28

2.0

1.6

2.0%

B+

B

B-

C

S&P 500

3.5+

2.4 - 3.5

1.6 - 2.4

Source: FactSet, Zephyr and Morningstar as of 2/28/15

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

0.6 - 1.6

0.0 - 0.6

Eaton Vance Monthly Market Monitor Equity Markets

S&P 500 Index Sectors: 1-Month & YTD Return Analysis Utilities continue to fall behind

Sectors â&#x20AC;&#x201C; YTD

Sectors â&#x20AC;&#x201C; 1-Month Total Consumer Discretionary

8.6

2.6

Materials

6.0

Information Technology

8.2

Health Care

Materials

8.0

Telecommunication Services

5.4

Consumer Discretionary

5.3

Telecommunication Services

6.6

Financials

5.9

Information Technology

Industrials

5.6

Consumer Staples

Health Care

4.3

Industrials

Consumer Staples

4.2

Energy

4.1

Energy Utilities -10%

Utilities -5%

0%

5%

5.6

4.0 3.1 1.8 -1.0

Financials

-6.4

Source: FactSet, Zephyr and Morningstar as of 2/28/15

29

Total

5.8

10%

-10%

-1.5 -4.2 -5%

Source: FactSet, Zephyr and Morningstar as of 2/28/15

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

0%

5%

10%

Eaton Vance Monthly Market Monitor Equity Markets

MSCI World Index Sectors: 1-Month & YTD Return Analysis Globally, Utilities were the only negative sector in February

Sectors â&#x20AC;&#x201C; YTD

Sectors â&#x20AC;&#x201C; 1-Month

MSCI World

MSCI World

5.9

Materials

8.3

Materials

Information Technology

7.8

Health Care

Consumer Discretionary

7.8

Consumer Discretionary

Financials

Telecommunication Services

4.5

Industrials

Health Care

4.5

Financials

Utilities -10%

3.7

Source: FactSet, Zephyr and Morningstar as of 2/28/15

30

Utilities 0%

5%

6.1 5.1 4.4 4.1 1.2

Energy

-3.7 -5%

6.4

Information Technology

5.3

Consumer Staples

6.9

Consumer Staples

6.2

Energy

7.5

Telecommunication Services

6.6

Industrials

3.9

10%

-5%

-0.4 -2.6 0%

Source: FactSet, Zephyr and Morningstar as of 2/28/15

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

5%

10%

Eaton Vance Monthly Market Monitor Equity Markets

Global Equity: Characteristics & Sector Weights

The average company market cap has increased 20% over its 5-year average MSCI World Index

S&P 500 Index Current

3 Mo. Ago

1 Yr Ago

5-Yr Avg.

3 Mo. Ago

1 Yr Ago

5-Yr Avg.

Weighted Avg. Market Cap

$138B

$136.9B

$116.5B

$104.4B

Weighted Avg. Market Cap

$101B

$100.3B

$89.5B

$78.8B

Median Market Cap

$19.1B

$18.7B

$17.1B

$13.4B

Median Market Cap

$11.5B

$11.2B

$11.2B

$9.2B

Dividend Yield

1.87

1.86

1.87

1.94

Dividend Yield

2.33

2.38

2.45

2.59

P/E NTM

17.18

16.12

15.43

13.69

P/E NTM

16.80

15.46

14.84

12.24

P/B

2.88

2.81

2.60

2.31

P/B

2.29

2.22

2.11

1.87

Sector Weights

Sector Weights Consumer Discretionary

12.45

11.96

12.49

11.15

Consumer Discretionary

12.81

12.34

12.38

11.11

Consumer Staples

9.80

9.89

9.47

10.62

Consumer Staples

9.97

9.96

9.73

10.32

Energy

8.14

8.37

10.05

11.07

Energy

7.61

7.92

9.33

10.34

Financials

16.01

16.33

16.06

15.82

Financials

20.41

20.86

20.73

20.17

Health Care

14.75

14.33

13.66

12.38

Health Care

13.01

12.80

11.93

10.71

Industrials

10.31

10.42

10.66

10.50

Industrials

10.95

10.89

11.27

11.02

Information Technology

19.92

19.97

18.76

18.93

Information Technology

13.48

13.38

12.23

12.06

Materials

3.28

3.21

3.52

3.50

Materials

5.33

5.17

5.81

6.61

Telecom Services

2.32

2.41

2.36

2.70

Telecom Services

3.29

3.38

3.40

3.77

Utilities

3.01

3.10

2.98

3.33

Utilities

3.15

3.32

3.18

3.60

Source: FactSet, Zephyr and Morningstar as of 2/28/15

31

Current Index Characteristics

Index Characteristics

Source: FactSet, Zephyr and Morningstar as of 2/28/15

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Eaton Vance Monthly Market Monitor Equity Markets

Equity Asset Class Return Analysis (%)

Most major equity markets posted strong returns in the month

U.S. Equities S&P 500 S&P 500 High Quality S&P 500 Low Quality 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 Telecom Services S&P 500 Utilities

1-Mo. 5.75 5.15 6.78 5.96 6.67 4.84 5.54 5.94 2.78

3-Mo. 2.31 2.87 2.93 5.20 3.94 1.27 4.11 5.45 2.49

YTD 2.57 2.28 3.13 3.79 5.03 0.65 3.89 2.53 1.33

1Y 15.51 18.51 11.91 8.24 16.24 13.49 13.31 5.63 4.76

3Y 18.00 19.27 21.87 17.45 18.05 18.11 18.95 16.58 7.26

5Y 16.18 18.34 18.39 16.89 17.21 15.51 17.74 15.97 7.47

10Y 7.99 8.24 10.65 9.25 9.28 7.21 9.92 8.31 4.84

2014 13.69 16.40 13.71 7.07 13.05 13.45 13.22 4.89 5.64

2013 32.39 32.44 42.69 36.80 33.48 32.53 34.76 38.82 13.26

2012 16.00 15.18 21.12 17.88 15.26 17.51 17.28 16.35 5.20

2011 2.11 6.59 -6.83 -2.51 2.64 0.39 -1.55 -4.18 5.72

2010 15.06 22.14 23.54 26.71 16.71 15.51 25.48 26.85 5.86

5.86 5.98 3.10 4.32 5.57 6.28 3.32 3.06 6.98 6.36

2.26 2.81 -1.07 4.26 1.91 1.70 3.90 4.69 13.28 7.66

3.94 6.50 3.71 6.23 3.92 6.27 6.31 4.59 14.74 7.72

7.87 -0.03 5.01 8.69 7.55 -3.34 5.61 1.78 19.12 26.66

13.26 9.41 -0.34 6.95 11.57 10.14 9.64 16.73 17.41 24.58

11.69 7.78 3.64 7.04 10.71 8.31 9.12 13.31 13.04 13.17

6.35 4.84 7.89 5.89 6.37 4.92 7.23 7.57 7.07 4.82

4.94 -4.90 -2.19 0.00 4.16 -6.18 -5.16 -4.58 -5.86 -6.10

26.68 22.78 -2.60 11.97 22.80 25.23 18.66 33.18 20.79 56.72

15.83 17.32 18.22 16.78 16.13 19.12 9.97 27.20 18.18 22.94

-5.54 -12.14 -18.42 -15.11 -7.35 -11.06 -2.18 -12.50 -8.61 -17.34

11.76 7.75 18.88 17.02 12.67 3.88 12.62 19.76 11.61 -3.01

8.61 4.24 4.05 5.85 4.32 5.62 8.17 8.04 6.58 -6.40

6.31 2.02 -0.46 0.33 4.21 1.65 2.24 5.30 -1.06 -0.81

5.29 3.10 -0.95 -1.45 5.60 1.79 4.01 6.00 5.40 -4.18

15.53 21.69 -7.23 14.21 23.51 12.61 22.48 11.08 13.25 16.05

22.69 17.86 3.60 20.45 28.33 18.16 16.81 13.89 12.38 13.45

22.05 16.40 9.05 12.56 20.50 17.09 16.85 13.59 14.83 13.81

10.17 10.91 7.23 0.25 11.26 8.19 9.89 7.78 7.77 8.71

9.68 15.98 -7.78 15.20 25.34 9.83 20.12 6.91 2.99 28.98

43.08 26.14 25.07 35.63 41.46 40.68 28.43 25.60 11.47 13.21

23.92 10.76 4.61 28.82 17.89 15.35 14.82 14.97 18.31 1.29

6.13 13.99 4.72 -17.06 12.73 -0.59 2.41 -9.75 6.27 19.91

27.66 14.11 20.46 12.13 2.90 26.73 10.19 22.20 18.97 5.46

Source: FactSet, Zephyr and Morningstar as of 2/28/15

32

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Eaton Vance Monthly Market Monitor Equity Markets

Equity Asset Class Return Analysis (%) International stocks lead in 2015

Higher

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

YTD 2/15

Emerging Markets 34.00

Emerging Markets 32.14

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

International 6.50

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

Growth 5.03

International International 13.54 26.34 Mid-Cap 12.65

Value 22.25

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

Global 3.92

Global 10.84

Global 20.95

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

Mid-Cap 3.89

Value 7.05

Small-Cap 18.37

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

Emerging Markets 3.71

Growth 5.26

S&P 500 15.79

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

S&P 500 2.57

S&P 500 4.91

Mid-Cap 15.26

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 2.53

Small-Cap 4.55

Growth 9.07

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

Value 0.65

Lower Source: FactSet, Zephyr and Morningstar as of 2/28/15

33

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information. Small-Cap represented by Russell 2000 Index. Emerging Markets represented by MSCI Emerging Markets Index. Value represented

by Russell 1000 Value Index. Mid-Cap represented by Russell Midcap Index. Global represented by MSCI ACWI Index. Growth represented by Russell 1000 Growth Index. International represented by MSCI EAFE Index.

Eaton Vance Monthly Market Monitor Alternative Markets

Developed Market Currency Performance & Interest Rates

The U.S. dollar has strengthened versus other developed market currencies over the past 3yrs Spot Returns vs. USD (%)

Currency

1-Mo.

U.S. Dollar (USD)

YTD

1Y

3Y

Spot Returns vs. EUR (%)

Local Interest Rates (%)

5Y

1-Mo.

YTD

1Y

3Y

5Y

3-Mo.

6-Mo.

1Y

-

-

-

-

-

0.85

8.06

23.28

5.97

4.01

0.01

0.07

0.19

Euro (EUR) *

-0.78

-7.45

-18.87

-5.63

-3.86

-

-

-

-

-

-0.27

-0.25

-0.21

British Pound (GBP)

2.44

-0.94

-7.84

-1.02

0.25

3.33

7.05

13.65

4.90

4.28

0.38

0.45

0.31

Japanese Yen (JPY)

-1.79

0.13

-14.90

-12.13

-5.75

-0.96

8.15

4.89

-6.89

-1.97

-

0.00

0.00

Australian Dollar (AUD)

0.53

-4.40

-12.47

-10.05

-2.70

1.47

3.24

7.86

-4.68

1.21

2.10

-

1.91

Canadian Dollar (CAD)

1.73

-7.14

-11.59

-7.52

-3.42

2.59

0.37

9.01

-1.99

0.46

0.57

0.57

0.56

New Zealand Dollar (NZD)

4.28

-2.98

-9.78

-3.21

1.62

5.09

4.84

11.15

2.57

5.69

3.36

-

3.09

Norwegian Krone (NOK)

0.83

-2.79

-21.68

-9.98

-5.07

1.67

5.04

-3.46

-4.60

-1.26

1.10

0.81

0.80

Swedish Krona (SEK)

-0.62

-6.36

-23.13

-7.40

-3.10

0.20

1.18

-5.23

-1.87

0.79

-

-0.14

-0.15

Danish Krone (DKK)

-1.09

-7.64

-18.87

-5.75

-3.91

-0.28

-0.20

0.01

-0.12

-0.05

-

-1.07

-0.93

Swiss Franc (CHF)

-3.57

4.19

-7.75

-1.77

2.38

-2.70

12.63

13.75

4.11

6.50

-0.85

-0.73

-0.95

Foreign Currencies Appreciation / (Depreciation) vs. EUR Trailing 5-Year % Change

Foreign Currencies Appreciation / (Depreciation) vs. USD Trailing 5-Year % Change

60% 48% 36% 24% 12% 0% -12% -24% -36%

60% 48% 36% 24% 12% 0% -12% -24% -36% '10

'11 EUR*

'12 GBP

'13 JPY

'14 AUD

'15 NZD

'10

'11 USD

'12 GBP

'13 NOK

* German Rate

Source: Bloomberg as of 2/28/15

34

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

'14 SEK

'15 CHF

Eaton Vance Monthly Market Monitor Alternative Markets

Emerging Market Currency Performance & Interest Rates

Select Asian currencies have strengthened versus the U.S. dollar and Euro over the past 5yrs Spot Returns vs. USD (%)

Currency

Spot Returns vs. EUR (%)

Local Interest Rates (%)

1-Mo.

YTD

1Y

3Y

5Y

1-Mo.

YTD

1Y

3Y

5Y

3-Mo.

6-Mo.

1Y

Chinese Renminbi (CNY)

-0.30

-1.02

-1.98

0.13

1.72

0.83

7.35

19.88

6.43

5.77

-

-

3.21

Malaysian Ringgit (MYR)

0.70

-2.97

-9.08

-5.99

-1.14

1.81

5.12

11.14

-0.12

2.69

3.22

3.30

3.32

Indian Rupee (INR)

0.05

1.95

-0.13

-7.45

-5.71

1.06

10.30

22.72

-1.75

-1.99

8.35

8.28

8.34

Indonesian Rupiah (IDR)

-2.01

-4.21

-10.22

-11.31

-6.29

-0.95

3.81

9.69

-5.77

-2.56

-

-

6.23

Philippine Peso (PHP)

0.04

1.42

1.22

-1.05

0.91

0.57

9.41

23.75

5.14

4.91

2.14

2.44

2.37

Singapore Dollar (SGD)

-0.64

-2.74

-6.98

-2.79

0.63

0.22

5.11

14.68

3.02

4.67

0.75

0.80

0.80

South Korean Won (KRW)

-0.39

-0.64

-2.77

0.63

1.10

0.68

7.71

18.78

6.97

5.13

2.35

2.00

2.02

Taiwanese Dollar (TWD)

0.22

0.63

-3.61

-2.24

0.39

1.29

9.08

17.90

3.90

4.28

-

-

0.52

Thai Baht (THB)

1.25

1.71

0.63

-1.99

0.43

1.95

9.86

24.04

3.85

4.46

1.99

2.00

1.99

Brazilian Real (BRL)

-5.57

-6.46

-17.49

-15.45

-8.65

-4.95

0.94

1.58

-10.45

-5.03

12.81

13.01

13.05

Chilean Peso (CLP)

2.77

-1.81

-9.54

-8.09

-3.21

3.43

5.96

11.36

-2.59

0.67

-

-

3.09

Colombian Peso (COP)

-2.37

-4.92

-18.13

-10.92

-5.07

-1.55

2.79

0.99

-5.52

-1.26

-

-

4.53

Mexican Peso (MXN)

0.18

-1.33

-11.38

-4.89

-3.10

0.99

6.57

9.24

0.79

0.79

3.00

3.16

3.64

Peruvian New Sol (PEN)

-1.12

-3.69

-9.52

-4.69

-1.65

-0.22

4.24

11.62

1.04

2.29

-

-

2.87

ASIA, EX. JAPAN

LATIN AMERICA

Source: Bloomberg as of 2/28/15

35

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Eaton Vance Monthly Market Monitor Alternative Markets

Emerging Market Currency Performance & Interest Rates EM currencies generally weakened versus the U.S. dollar over the year Spot Returns vs. USD (%) Currency

Spot Returns vs. EUR (%)

Local Interest Rates (%)

1-Mo.

YTD

1Y

3Y

5Y

1-Mo.

YTD

1Y

3Y

5Y

3-Mo.

6-Mo.

1Y

Czech Koruna (CZK)

0.01

-6.97

-19.44

-8.73

-5.00

0.87

0.53

-0.67

-3.27

-1.18

0.04

0.05

0.05

Hungarian Forint (HUF)

1.80

-3.23

-16.91

-7.07

-6.05

2.69

4.60

2.30

-1.51

-2.28

1.59

1.60

1.63

Polish Zloty (PLN)

0.03

-4.36

-18.69

-5.77

-4.83

0.87

3.35

0.31

-0.14

-1.01

-

-

1.59

Romania Leu (RON)

-0.83

-6.58

-17.66

-6.24

-5.32

0.09

1.15

1.60

-0.59

-1.50

1.05

1.33

1.38

Russian Ruble (RUB)

12.49

-1.65

-41.92

-22.12

-13.47

13.74

6.93

-27.97

-17.21

-9.93

17.08

17.08

17.00

Turkish New Lira (TRY)

-2.65

-6.91

-12.04

-11.33

-9.18

-1.83

0.63

8.45

-6.03

-5.61

9.39

8.93

8.95

Ghanaian Cedi (GHS)

-3.70

-8.46

-26.60

-21.47

-16.49

-4.14

-1.05

-9.49

-16.78

-13.14

25.92

-

22.75

Israeli Shekel (ILS)

-1.36

-2.12

-12.42

-1.72

-1.05

-0.46

5.82

8.05

4.17

2.92

0.06

0.09

0.08

Kenyan Shilling (KES)

0.30

-0.88

-5.63

-3.16

-3.49

1.07

7.05

16.58

2.68

0.40

11.18

11.18

11.20

Moroccan Dirham (MAD)

-0.63

-5.89

-15.45

-4.55

-3.12

0.34

1.62

4.30

1.17

0.75

-

-

-

Nigerian Naira (NGN)

-7.48

-9.53

-18.53

-8.05

-5.81

-6.14

-1.91

1.08

-2.36

-1.91

15.08

15.83

15.97

South African Rand (ZAR)

-0.09

-0.75

-7.75

-13.65

-7.92

0.68

7.23

13.74

-8.49

-4.23

6.31

6.33

6.38

Ugandan Shilling (UGX)

-1.21

-4.12

-12.32

-6.27

-6.71

-0.43

3.61

8.03

-0.88

-2.97

-

-

15.88

Zambian Kwacha (ZMK)

-5.54

-6.92

-15.10

-8.53

-7.11

-4.78

0.57

4.65

-3.04

-3.39

-

-

21.41

EUROPE

MIDDLE EAST AND AFRICA

Source: Bloomberg as of 2/28/15

36

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Eaton Vance Monthly Market Monitor Alternative Markets

Local Sovereign Interest Rates

Developed short-term rates remain low, while EM may offer income opportunity Developed Market Local Interest Rates (1 Year) Swiss Franc (CHF)

-0.95

Danish Krone (DKK)

-0.93

Emerging Market Local Interest Rates (1 Year) Polish Zloty (PLN)

1.59

Hungarian Forint (HUF)

1.63

Thai Baht (THB)

1.99

Euro (EUR) *

-0.21

Philippine Peso (PHP)

Swedish Krona (SEK)

-0.15

Peruvian New Sol (PEN)

2.87

Chilean Peso (CLP)

3.09

Japanese Yen (JPY)

0.00 Malaysian Ringgit (MYR)

3.32

U.S. Dollar (USD)

0.19

British Pound (GBP)

0.31

Canadian Dollar (CAD)

0.56

Norwegian Krone (NOK)

0.80

Australian Dollar (AUD)

Mexican Peso (MXN) Colombian Peso (COP)

2.37

3.64 4.53

Indonesian Rupiah (IDR)

6.23

South African Rand (ZAR)

6.38

Turkish New Lira (TRY)

8.95

Brazilian Real (BRL)

1.91

13.05

Nigerian Naira (NGN) New Zealand Dollar (NZD) -5.00

3.09 0.00

5.00

15.97

Russian Ruble (RUB) 10.00

15.00

20.00

0.00

17.00 5.00

German Rate Rate ** German

Source: Bloomberg as of 2/28/15

37

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

10.00

15.00

20.00

Eaton Vance Monthly Market Monitor Alternative Markets

Commodities Return Analysis (%)

Commodities have experienced mostly negative performance year-to-date

Index

1-Mo.

3-Mo.

YTD

1Y

3Y

5Y

Bloomberg Commodity Index

2.58

-8.41

-0.85

-22.77

-11.21

-4.95

Bloomberg Sub Agriculture

2.21

-5.50

-3.65

-21.20

-8.82

-0.29

-14.69

-26.32

-17.10

-28.75

-19.43

Corn

4.09

-0.92

-2.99

-22.41

Cotton

8.92

7.62

7.28

Soybean

6.83

0.45

Soybean Oil

9.12

Sugar Wheat

1-Mo.

3-Mo.

YTD

1Y

3Y

5Y

1.13

-8.45

-4.29

-8.07

-11.49

-6.74

Aluminum

-2.78

-10.59

-2.31

-1.21

-14.14

-8.90

-6.31

Copper

7.91

-5.42

-4.73

-15.37

-12.24

-5.23

-11.61

0.29

Nickel

-7.19

-13.82

-7.20

-5.90

-11.35

-9.00

-17.32

-6.05

3.08

Zinc

-3.12

-7.39

-5.53

-3.07

-4.55

-5.17

0.31

-14.23

6.17

10.08

-4.87

3.82

3.17

-12.32

-14.26

0.85

0.70

1.86

-23.64

-18.13

-7.75

Gold

-5.17

3.13

2.38

-8.45

-11.29

1.05

-6.65

-11.43

-4.91

-37.75

-25.60

-11.13

Platinum

-4.25

-2.26

-1.97

-18.38

-11.89

-5.99

2.06

-11.30

-12.99

-20.86

-14.59

-11.55

Silver

-4.03

6.17

5.88

-23.03

-22.71

-0.93

8.43

-21.19

1.12

-42.18

-16.71

-14.24

-2.66

-15.26

-10.95

-10.88

-3.59

-0.82

Brent Crude

14.82

-15.37

3.43

-45.20

-18.20

-3.55

Lean Hogs

-6.61

-24.91

-18.42

-33.88

-10.28

-7.40

Heating Oil

15.68

-7.04

8.27

-33.41

-14.43

-2.54

Live Cattle

-0.38

-9.57

-6.44

6.30

0.28

3.07

Natural Gas

0.51

-33.56

-6.60

-44.51

-16.29

-29.92

Unleaded Gas

14.37

-9.30

12.45

-36.89

-11.63

1.11

WTI Crude Oil

3.81

-24.77

-6.74

-48.05

-21.89

-12.30

Coffee

Bloomberg Sub Energy

Index Bloomberg Sub Industrial Metals

Bloomberg Sub Precious Metals

Bloomberg Sub Livestock

Source: Morningstar as of 2/28/15

38

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information. Commodity represented by Bloomberg Commodity Index. Agriculture represented by Bloomberg Agriculture Subindex. Energy represented by Bloomberg Energy Subindex. Grains represented by Bloomberg Grains Subindex. Industrial Metals represented by Bloomberg Industrial Metals Subindex. Livestock represented by Bloomberg Livestock Subindex. Precious Metals represented by Bloomberg Precious Metals Subindex. Softs represented by Bloomberg Softs Subindex.

Eaton Vance Monthly Market Monitor Alternative Markets

Commodities Return Analysis (%)

Commodities have experienced mostly negative performance year-to-date

Higher

Lower

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

YTD 2/15

Energy 42.16

Industrial Metals 72.35

Grains 42.07

Precious Metals -4.06

Industrial Metals 79.98

Softs 59.90

Precious Metals 4.56

Grains 18.25

Energy 5.20

Livestock 11.56

Precious Metals 3.17

Industrial Metals 33.47

Precious Metals 27.11

Agriculture 29.89

Grains -26.32

Softs 44.24

Precious Metals 42.66

Livestock -2.30

Precious Metals 6.29

Livestock -3.54

Precious Metals -6.71

Energy 1.12

Commodity 21.36

Grains 23.61

Precious Metals 25.96

Agriculture -27.47

Precious Metals 29.20

Agriculture 38.49

Commodity -13.32

Agriculture 3.98

Commodity -9.52

Industrial Metals -6.87

Commodity -0.85

Precious Metals 20.44

Agriculture 14.25

Energy 20.69

Livestock -28.41

Commodity 18.91

Grains 30.28

Softs -13.97

Industrial Metals 0.67

Industrial Metals -13.63

Agriculture -9.22

Agriculture -3.65

Softs 9.31

Commodity 2.07

Commodity 16.23

Softs -28.43

Agriculture 13.72

Commodity 16.83

Agriculture -14.35

Commodity -1.06

Agriculture -14.28

Grains -9.37

Industrial Metals -4.29

Agriculture 1.08

Livestock -6.12

Softs -3.45

Commodity -35.65

Grains -1.65

Industrial Metals 16.24

Grains -14.41

Livestock -3.54

Softs -16.86

Softs -10.10

Grains -4.79

Livestock -0.26

Softs -11.97

Industrial Metals -9.86

Energy -47.33

Energy -5.30

Livestock 9.27

Energy -15.97

Energy -9.36

Grains -16.90

Commodity -17.01

Softs -5.20

Grains -3.32

Energy -41.41

Livestock -10.67

Industrial Metals -48.27

Livestock -15.07

Energy -10.55

Industrial Metals -24.23

Softs -22.39

Precious Metals -30.80

Energy -39.34

Livestock -10.95

Source: Morningstar as of 2/28/15

39

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information. Commodity represented by Bloomberg Commodity Index. Agriculture represented by Bloomberg Agriculture Subindex. Energy represented by Bloomberg Energy Subindex. Grains represented by Bloomberg Grains Subindex. Industrial Metals represented by Bloomberg Industrial Metals Subindex. Livestock represented by Bloomberg Livestock Subindex. Precious Metals represented by Bloomberg Precious Metals Subindex. Softs represented by Bloomberg Softs Subindex.

Eaton Vance Monthly Market Monitor Flows Monitor

Fund & ETF Flows by Category Where is the money going?

Top 10 Open-End Mutual Fund Categories by Monthly Flows ($MM) 1/15

1 Mo.

3 Mo.

12 Mo.

Large Blend

11,247

18,908

72,006

Intermediate-Term Bond

9,147

25,790

Top 10 Exchange-Traded Fund Categories by Monthly Flows ($MM) 1 Mo.

3 Mo.

12 Mo.

Europe Stock

1/15

3,615

5,941

6,928

41,205

Foreign Large Blend

2,677

9,615

22,993

2,396

894

(705)

2,307

3,423

7,054

Foreign Large Blend

5,003

14,693

71,866

Commodities Precious Metals

Health

2,319

5,617

8,538

Health

Muni National Interm

2,084

5,637

16,732

Equity Energy

1,893

5,466

8,790

High Yield Bond

1,902

(4,178)

(16,274)

Commodities Energy

1,622

3,137

3,389

Foreign Large Value

1,656

1,623

10,579

High Yield Bond

1,615

2,195

4,057

Moderate Allocation

1,631

4,432

13,156

Corporate Bond

1,418

3,704

8,572

Mid-Cap Blend

1,461

1,923

12,765

Long Government

1,403

3,877

7,973

Real Estate

1,299

1,545

7,334

Large Value

1,396

7,216

22,029

Bottom 10 Open-End Mutual Fund Categories by Monthly Flows ($MM) 1/15 Mid-Cap Value

1 Mo.

3 Mo.

12 Mo.

(845)

(2,295)

(6,970)

Bottom 10 Exchange-Traded Fund Categories by Monthly Flows ($MM) 1/15 Ultrashort Bond

1 Mo.

3 Mo.

12 Mo.

(378)

(1,500)

514

Small Growth

(1,051)

(3,542)

(13,358)

Miscellaneous Region

(390)

(2,844)

347

Foreign Large Growth

(1,098)

(2,922)

(11,035)

Consumer Cyclical

(498)

4,318

3,297

Market Neutral

(1,195)

(4,170)

(1,724)

Japan Stock

(562)

2,454

442

Large Value

(1,262)

(2,886)

1,092

World Stock

(911)

754

4,090

World Allocation

(1,269)

(4,535)

5,506

Industrials

(944)

(858)

(1,011)

Short-Term Bond

(2,336)

(3,177)

11,636

Diversified Emerging Mkts

(1,628)

(3,694)

3,994

Mid-Cap Growth

(2,963)

(5,746)

(17,428)

Large Growth

(2,084)

(101)

(1,277)

Bank Loan

(3,982)

(12,075)

(28,096)

Financial

(3,932)

249

654

Large Growth

(4,160)

(9,250)

(39,059)

Large Blend

(21,158)

11,192

59,565

Source: Morningstar as of 2/28//15

40

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Eaton Vance Monthly Market Monitor

Glossary of Terms INDEX DEFINITIONS: Barclays Global Aggregate Ex-USD Index is a broad-based measure of global Investment Grade fixed-rate debt investments, excluding USD-denominated debt.

Barclays High Yield Municipal Bond Index is an unmanaged index of non-Investment Grade Municipal bonds traded in the U.S. Barclays Municipal Bond Index is an unmanaged index of Municipal bonds traded in the U.S. 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.

Barclays U.S. Aggregate Index is an unmanaged index of domestic investment-grade bonds, including corporate, government and mortgage-backed securities.

Barclays U.S. Aggregate Local Authorities Index measures the performance of U.S. investment-grade fixed-rate debt issued directly or indirectly by local government authorities.

BofA Merrill Lynch UK Gilt 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.

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.

Dow Jones-UBS Commodity Index is a broadly diversified index tracking futures contracts on physical commodities.

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.

Barclays U.S. Asset Backed Securities (ABS) Index measures ABS with the following collateral type: credit and charge card, auto, and utility loans.

JPMorgan Corporate Emerging Markets Bond Index (CEMBI) Diversified is a market-cap weighted index that measures USD-denominated emerging market corporate bonds.

Barclays U.S. CMBS Investment Grade Index measures the market of conduit and fusion CMBS deals with a minimum current deal size of $300mn.

JPMorgan Emerging Markets Bond Index Plus (EMBI+) is a market-cap weighted index that measures USD-denominated Brady Bonds, Eurobonds, and traded loans issued by sovereign entities.

Barclays U.S. Corporate High Yield Index measures USD-denominated, non-Investment Grade corporate securities.

Barclays U.S. Corporate Index is an unmanaged index that measures the performance of investment-grade corporate securities within the Barclays U.S. Aggregate Index.

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.

Barclays U.S. Mortgage Backed Securities (MBS) Index measures agency mortgagebacked pass-through securities issued by GNMA, FNMA, and FHLMC.

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) Index is an unmanaged total return, capitalization-weighted index that measures the BofA Merrill Lynch Fixed Rate Preferred Securities Index is an unmanaged index of fixed- performance of stock markets in 15 Pacific region countries, including Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Pakistan, the Philippines, rate, preferred securities issued in the U.S. Singapore, Sri Lanka, Taiwan and Thailand.

Barclays U.S. Treasury Index measures public debt instruments issued by the U.S. Treasury.

41

Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index.

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Eaton Vance Monthly Market Monitor

Glossary of Terms INDEX DEFINITIONS: 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.

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 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.

U.S. Dollar Index represented by ICE Futures U.S. Dollar Index which measures the value of the U.S. dollar versus six major foreign currencies including the Euro, Japanese Yen, United Kingdom Pound, Canadian Dollar, Swedish Krona and Swiss Franc.

BofA Merrill Lynch US Inflation-Linked Treasury Index tracks the performance of USD denominated inflation linked sovereign debt publicly issued by the US government.

42

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.

TERMS: 10-Year TIPS Break-Even is a measure of the market’s expectations for future U.S. inflation. It is calculated by subtracting the yield on the 10-year U.S. Treasury Inflation-Protected Security from the yield on the 10-year U.S. Treasury note.

CPI, or Consumer Price Index, is a measure of the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. The CPI is calculated by taking price changes for each item in the predetermined basket and averaging them; the goods are weighted according to their importance. Also referred to as Headline CPI. Core CPI equals CPI, or Headline CPI, less food and energy. prices.

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.

Nominal GDP is a measure that reflects the value of all goods and services produced in a given country, in a given year.

Nominal Spread is the stated spread over LIBOR paid by a floating-rate loan issuer.

Real GDP is an inflation-adjusted measure that reflects the value of all goods and services produced in a given country, in a given year, expressed in base-year prices.

Secondary Spread is a yield-to-maturity measure that accounts for the current market price of a floating-rate loan.

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 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.

Velocity of money is the dollar value of Gross Domestic Product (GDP) divided by Money Supply (M2).

Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index.

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Eaton Vance Monthly Market Monitor

About Risk 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. Limited Issuance – BABs – The ability of Municipalities to issue Build America Bonds expired on December 31, 2010 and there can be no certainty as to whether future legislation will be enacted that would again permit such issuance. Given the limited issuance of Build America Bonds they may not be actively traded. 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. Negative Duration – A portfolio with negative duration generally incurs a loss when interest rates and yields fall. 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. Smaller Companies – Smaller companies are generally subject to greater price fluctuations, limited liquidity, higher transaction costs and higher investment risk than larger, established companies.

43

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Eaton Vance Monthly Market Monitor

About Eaton Vance Eaton Vance Corp. is one of the oldest investment management firms in the United States, with a history dating to 1924. Eaton Vance and its affiliates offer individuals and institutions a broad array of investment strategies and wealth management solutions. The Companyâ&#x20AC;&#x2122;s long record of exemplary service, timely innovation and attractive returns through a variety of market conditions has made Eaton Vance the investment manager of choice for many of todayâ&#x20AC;&#x2122;s most discerning investors.

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Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information.

Eaton Vance Monthly Market Monitor

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

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.

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