monthlymarketmonitor-august-2015

Product & Portfolio Strategy Group

Eaton Vance Monthly Market Monitor August 2015 (data as of July 31, 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.

2

Trends & Takeaways

3

Fixed Income

4

Equities

15

Alternatives

26

Asset Allocation

32

Additional Information

35

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 Trends & Takeaways

Viewpoints: Connecting Timely Insights to Market Data Select Viewpoints from Eaton Vance Advisory Blog: VISIT: eatonvance.com/blog Eric Stein, Co-Director of Global Income Tom Luster, Co-Director of Diversified Income Fed “Liftoff” Looming: Along with continued strength in the economic picture in the U.S., investor attention focused on the July FOMC meeting and the possible timing and trajectory of the Federal Reserve’s “liftoff” plans for short-term interest rates (see page 5). According to Eric Stein, “The Fed clearly has September on the table for the potential first rate increase since 2006.” Recognizing the “data dependent” nature of the Fed’s ongoing guidance, Eric added that he believes “the Fed has by no means pre-committed to hiking rates by then however.” At the same time, Eric interpreted the latest remarks as the Fed having lowered its bar insofar as the level of further economic improvement necessary before the Fed makes a move. Tom Luster agrees that the timing of a Fed move is near, saying, “I believe the Fed should and will raise rates before the market expects. If you believe monetary policy since the financial crisis has been one big macroeconomic experiment, then you might agree the Fed should act like the ensuing tightening cycle is of an experimental nature as well. If so, the Fed would be well-advised to start sooner and raise rates more slowly in order to better gauge the effects of higher rates on markets and the economy.” Read complete blog Eaton Vance Advisory Blog.

Edward J. Perkin, Chief Equity Investment Officer Oil Driving Bifurcated Equity Opportunities: Eddie Perkin believes Janet Yellen and her Fed colleagues are likely to find a two-speed economy as they assess incoming economic data, with the general health of the U.S. consumer improving rapidly, while the industrial side of the economy continues to struggle. In his latest blog, Eddie reasoned that while the collapse in oil prices (see page 30) has been good for the consumer, it’s bad news for many industrial companies. Eddie said, “Oil and gas is an important end market for capital goods and equipment manufacturers. We have been struck by how swiftly the energy sector cut expenses at the beginning of 2015. North American exploration and production companies tell us they have cut capital spending by roughly 35% this year. This has had a ripple effect throughout the supply chain, well beyond the direct exposure of oil and gas equipment.” Connecting the analysis to equity markets, Eddie emphasizes the importance of asking, “What’s not priced in”? It seems clear that the U.S. equity market has begun to “figure things out,” as consumer discretionary stocks have handily outperformed industrials over the past several months. This divergence of performance between the two sectors has led to widening valuation differentials: Consumer discretionary stocks were recently valued at 19.5x forward EPS estimates, whereas industrials stocks were only valued at 15.8x (see page 18). Read complete blog Eaton Vance Advisory Blog.

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The views expressed in this update are those of the authors and are current only through the date stated. These views are subject to change at any time based upon market or other conditions, and Eaton Vance disclaims any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions for Eaton Vance are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Eaton Vance fund. Eaton Vance does not provide legal or tax advice. The discussion herein is general in nature and is provided for informational purposes only. There is no guarantee as to its accuracy or completeness. Individuals should consult their own legal and tax counsel as to matters discussed.

Eaton Vance Monthly Market Monitor Fixed Income

Sovereign Bond Yields Developed Markets (10-Yr. Yield)

16%

Jul '15

1-Mo. ago

Emerging Markets (10-Yr. Yield)

16%

12-Mo. ago

Jul '15

14%

14%

12%

12%

10%

10%

8%

8%

6%

6%

4%

4%

2%

2%

0%

0%

1-Mo. ago

Source: Bloomberg as of 7/31/15

4

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

12-Mo. ago

Eaton Vance Monthly Market Monitor Fixed Income

Monetary Policy Central Bank Policy Rates U.S. Federal Reserve

25%

BOE

Last 12 Months BOJ

0.5% 0.4% 0.3% 0.2% 0.1% 0.0%

ECB

20% 15%

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 10% 5% 0%

10-year Sovereign Bond Yields U.S.

18%

U.K.

Japan

Last 12 Months 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0%

Germany

16% 14% 12%

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

10% 8% 6% 4% 2% 0% '74

'76

'78

'80

'82

'84

'86

'88

'90

'92

'94

'96

'98

'00

'02

'04

Source: Bloomberg as of 7/31/15

5

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

'06

'08

'10

'12

'14

Eaton Vance Monthly Market Monitor Fixed Income

U.S. Treasury Yields U.S. Treasury Yields & Performance

U.S. Treasury Yield Curves 4%

Security

Yield (%)

Total Return (%)

Current

1-Mo. ago

12-Mo. ago

1-Mo.

12-Mo.

3-mo. Treasury

0.08

0.01

0.03

0.00

0.01

6-mo. Treasury

0.14

0.11

0.05

-0.01

0.15

2Yr. Treasury

0.67

0.64

0.53

0.01

0.95

3Yr. Treasury

1.00

1.01

1.02

0.17

1.69

5Yr. Treasury

1.54

1.63

1.76

0.55

3.15

10Yr. Treasury

2.20

2.35

2.58

1.32

5.32

30Yr. Treasury

2.92

3.11

3.32

3.77

10.17

3%

2%

1%

0% 3M

2Y

5Y

10Y

Jul-15

30Y

1-Mo. ago

12-Mo. ago

Source: Bloomberg, Morningstar as of 7/31/15

6

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 Fixed Income

Fixed Income Characteristics and Performance Analysis Averages

Total Returns (%)

Coupon (%)

Price ($)

Yield (%)

Spread (bps)

3.21

104.4

2.35

55

7.9

U.S. Treasury

2.07

103.4

1.44

-

U.S. Agency

2.35

104.2

1.35

U.S. Mortgage Backed Securities

3.73

105.2

U.S. Asset Backed Securities

1.88

U.S. Commercial Mortgage Backed Securities U.S. Corp. Investment Grade

Index

Maturity Duration (yrs.) (yrs.)

1-Mo. 3-Mo.

YTD

1Y

3Y

5Y

10Y

5.6

0.70

-0.64

0.59

2.82

1.60

3.27

4.61

7.0

5.7

0.83

-0.24

0.87

3.33

0.83

2.77

4.28

18

4.6

3.5

0.44

0.03

1.04

2.55

1.16

2.01

3.81

2.68

28

6.8

4.3

0.63

-0.16

0.94

3.54

1.86

2.85

4.68

101.2

1.47

63

2.6

2.4

0.19

0.28

1.27

2.00

1.18

2.27

3.40

3.79

103.7

2.44

102

5.2

4.7

0.65

-0.34

1.34

2.82

2.93

5.22

5.32

4.32

104.7

3.36

154

10.7

7.2

0.67

-1.82

-0.25

1.49

2.49

4.84

5.37

Barclays Municipal Bond Index

4.82

108.0

2.25

-

13.1

6.6

0.72

0.35

0.84

3.56

2.81

4.39

4.57

BofAML US Inflation-Linked Treasury Index

1.07

105.9

0.35

-

9.6

6.8

0.23

-1.71

0.37

-1.48

-1.32

3.47

4.43

BofAML Preferred Index (Fixed Rate)

6.28

102.8

4.81

203

-

5.4

1.62

0.50

3.87

7.30

5.71

7.33

3.00

Barclays U.S. Corp. High Yield Index

6.77

97.3

6.87

513

6.3

4.3

-0.58

-1.76

1.93

0.36

5.93

7.73

7.64

S&P / LSTA Leveraged Loan Index

4.41

96.2

5.32

503

4.9

0.1

-0.01

-0.24

2.82

1.85

4.48

5.15

4.91

JPMorgan EM Bond Index Plus (EMBI+)

6.65

101.4

6.23

404

-

7.5

0.64

-1.73

1.63

-1.52

1.51

5.38

7.32

JPMorgan Corp. EM Bond Index (CEMBI) Diversified

5.36

101.0

5.34

359

-

5.6

0.03

-0.66

3.83

2.53

-

-

-

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

6.81

-

6.72

672

-

4.9

-2.56

-6.23

-7.32

-16.68 -5.31

-0.65

5.57

Barclays Global Aggregate Ex-U.S. Index

2.83

111.7

1.10

38

9.0

7.4

-0.14

-3.07

-5.56

-12.13

-3.18

0.06

2.89

BofAML U.K. Gilts Index

3.81

119.4

1.83

-

15.3

10.6

0.87

1.76

0.29

1.59

2.67

6.04

4.46

BofAML European Union Government Bond Index

3.46

118.6

1.02

36

10.4

8.0

1.29

-2.16

-6.09

-9.73

3.01

2.93

3.95

Barclays U.S. Aggregate Index

Source: Barclays, JPMorgan, BofA Merrill Lynch and Standard & Poor’s as of 7/31/15

7

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 Fixed Income

Fixed Income Spread Analysis (bps) 1971

2000 1800

1717

High

1699

1581

1600

Current Median

1400 1200

Low

1018

1000

Cheap

865

Rich

800 618

600 400 200 0

488

258 55 55

180 26

18

192 50

219

150

65

154

0

61

145 82

ABS

CMBS

Corporate

102

63

28

503 296

234

203

404

492

513

233

149

36

9

-13

Aggregate

Agency

MBS

Aggregate

Agency

MBS

ABS

CMBS

Corporate

Preferred

Max Spread Date

12/03/08

11/20/08

12/3/08

1/6/09

11/21/08

12/3/08

3/9/09

12/19/08

10/24/08

12/16/08

Min Spread Date

5/23/07

-3

-200 Preferred

Floating- Rate Emerging Loans Markets (USD) Emerging Floating-Rate Loans Markets (USD)

High Yield

High Yield

6/23/14

3/12/13

7/27/10

10/1/09

1/8/07

2/22/07

3/8/06

3/31/06

6/1/07

Spread on 12/31/14

48

16

27

58

98

131

217

518

387

483

Spread on 12/31/13

45

17

34

55

126

114

286

466

334

382

Spread on 12/31/12

53

13

50

43

124

141

242

529

248

511

Source: Barclays, JPMorgan, BofA Merrill Lynch, Standard & Poor’s as of 7/31/15. Spread history measures past 10 years.

8

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 Investment Grade 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 Fixed Income

Corporate Bond Market Update Averages

Total Returns (%)

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

Coupon (%)

Price ($)

4.32

104.7

3.36

154

10.7

AAA Index

3.43

102.9

2.88

87

AA Index

3.08

103.5

2.53

A Index

4.15

106.1

BBB Index

4.73

1-Mo.

3-Mo.

YTD

1Y

3Y

5Y

10Y

7.2

0.67

-1.82

-0.25

1.49

2.49

4.84

5.37

15.6

9.3

1.45

-1.69

-0.99

2.63

0.81

3.72

4.21

92

9.3

6.4

0.77

-1.13

0.31

2.61

1.34

3.61

4.53

2.97

123

10.0

7.0

0.89

-1.43

0.07

2.31

2.26

4.60

4.87

103.7

3.90

197

11.4

7.4

0.42

-2.35

-0.65

0.40

3.05

5.48

6.05

6.77

97.3

6.87

513

6.3

4.3

-0.58

-1.76

1.93

0.36

5.93

7.73

7.64

BB Index

5.96

101.8

5.15

344

6.9

4.8

0.20

-1.05

2.52

3.37

6.06

7.91

7.85

B Index

6.88

98.0

6.74

501

6.1

4.0

-0.84

-1.80

2.14

0.04

5.67

7.55

6.58

CCC Index

8.45

87.9

10.69

896

5.5

3.3

-1.96

-3.35

0.49

-4.74

6.48

7.90

6.87

Below CCC Index

8.55

29.2

87.85

8,166

4.9

3.0

-11.15

-22.01

-29.88

-53.67

-19.68

-10.23

-0.59

4.41

96.2

5.32

503

4.9

0.1

-0.01

-0.24

2.82

1.85

4.48

5.15

4.91

BBB Index

3.12

99.8

3.44

316

4.7

-

0.22

0.45

2.56

2.33

2.90

3.63

3.90

BB Index

3.74

99.2

4.22

394

5.0

-

0.34

0.43

3.64

3.54

3.92

4.63

3.98

B Index

4.75

96.7

5.89

560

4.9

-

0.06

-0.12

3.15

2.07

4.68

5.80

4.94

CCC Index

7.63

90.5

10.85

1,054

5.0

-

-0.01

-1.26

2.02

0.73

9.33

7.48

6.61

-

56.4

-

-

-

-

-8.54

-14.29

-16.70

-28.70

0.77

2.19

-6.03

Barclays U.S. Corp. Investment Grade Index

Barclays U.S. Corp. High Yield Index

S&P/LSTA Leveraged Loan Index

D Index

Source: Barclays, LCD, and Morningstar as of 7/31/15

9

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

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.

Eaton Vance Monthly Market Monitor Fixed Income

Corporate Bond Market Update Average Spread (bps) 2000

1500

1000

High Yield Corporate Median 492 488 145

Loans

Last 513 503 154

Investment Grade Corporate

Last 12 Months

600 500 400 300 200 100 0

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

500

0

Annual Default Rate 12% 10% 8%

High Yield Corporate Median 1.75 1.89

Loans Last 1.92 1.11

Last 12 Months

6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

6% 4% 2% 0%

Source: JPMorgan, LCD as of 7/31/15

10

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 Fixed Income

Municipal Bond Market Update Averages

Total Returns (%)

Coupon (%)

Price ($)

Yield To Worst (%)

4.82

108.0

2.25

13.1

AAA Index

4.66

110.3

1.80

AA Index

4.82

110.1

A Index

4.81

BBB Index

Maturity Duration (yrs.) (yrs.)

1-Mo.

3-Mo.

YTD

1Y

3Y

5Y

10Y

6.6

0.72

0.35

0.84

3.56

2.81

4.39

4.57

10.4

5.9

0.68

0.42

0.73

2.60

2.10

3.37

4.05

2.03

12.6

6.3

0.75

0.46

0.90

3.33

2.69

4.15

4.49

103.4

2.72

14.6

7.2

0.75

0.29

0.75

4.07

3.39

5.19

4.87

5.25

105.9

3.30

17.7

7.9

0.39

-0.38

0.91

2.30

2.81

5.17

3.66

5-Year Index

4.80

112.8

1.57

5.0

3.9

0.53

0.46

1.12

1.87

1.83

2.86

4.07

10-Year Index

4.80

112.3

2.25

9.9

5.9

0.75

0.21

0.86

3.46

2.84

4.59

5.01

22+ Year Index

4.90

102.0

3.21

26.5

11.1

1.06

0.40

1.02

5.67

3.79

6.04

4.95

5.45

51.1

6.91

20.3

9.8

-0.54

-3.13

-2.45

2.63

3.39

6.06

4.51

Hospital

6.04

103.3

4.89

20.9

8.8

0.40

0.45

2.41

7.53

6.07

8.18

6.10

IDR/PCR

5.15

33.3

5.98

21.3

11.3

1.53

-0.47

3.32

8.46

6.93

8.08

5.82

Tobacco

4.74

22.2

6.97

24.6

13.6

2.50

-0.60

4.17

9.41

7.10

8.22

-0.09

Puerto Rico

5.24

36.0

12.02

19.2

9.7

-4.52

-11.27

-15.01

-10.03

-12.83

-8.22

-1.19

Barclays Municipal Bond Index

Barclays High Yield Municipal Bond Index

Source: Barclays, Morningstar as of 7/31/15

11

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 Fixed Income

Municipal Bond Market Update AAA Muni-to-Treasury Yield Ratios 250%

5Y

225%

10Y

Median 82 92 102

200% 175%

30Y

Last 84 99 107

Last 12 Months

125% 100% 75% 50%

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

150% 125% 100% 75% 50%

Credit Quality Spreads vs. AAA (bps)

150

400

100

300

AA Median 20 68 138

A Last 20 55 97

BBB

Last 12 Months

50 0 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

200

100

0

Source: Barclays as of 7/31/15

12

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 Fixed Income

Emerging Markets Bond Market Update 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 7/31/15

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

Avg. Spread (bps) 404 314 296 865 149

Avg. Spread (bps) 359 357 330 1085 149

Current Average Median High Low

Price ($)

Averages Yield (%)

JPMorgan Emerging Markets Bond Index Plus (EMBI+)

6.65

101.4

JPMorgan Corporate Emerging Markets Bond Index (CEMBI) Diversified

5.36

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

6.81

Source: JPMorgan as of 7/31/15 Total Returns (%) Duration (yrs.)

1-Mo.

3-Mo.

YTD

1Y

3Y

5Y

10Y

6.23

7.5

0.64

-1.73

1.63

-1.52

1.51

5.38

7.32

101.0

5.34

5.6

0.03

-0.66

3.83

2.53

-

-

-

-

6.72

4.9

-2.56

-6.23

-7.32

-16.68

-5.31

-0.65

5.57

Source: JPMorgan, Morningstar as of 7/31/15

13

Avg. Yield (%) 6.72 6.83 6.80 9.72 5.16

Current Average Median High Low

Source: JPMorgan as of 7/31/15 Coupon (%)

'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '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 Fixed Income

Fixed Income Asset Class Return Analysis (%) Higher

Lower

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

YTD 7/15

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

Bank Loan 2.82

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

High Yield 1.93

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

MBS 0.94

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 0.87

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 0.84

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

Investment Grade -0.25

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

Global Agg Ex-U.S. -5.56

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

EM (Local Currency) -7.32

Source: Morningstar as of 7/31/15

14

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 Equities

Equity Performance – Market Barometer (%) 1-Year Returns

1 Month Returns

3-Year Returns

Value

Core

Growth

Value

Core

Growth

Value

Core

Growth

Large Cap

0.44

1.93

3.39

6.40

11.24

16.08

17.11

18.02

18.78

Mid Cap

-0.14

0.74

1.62

6.64

10.69

14.65

18.86

19.47

19.93

Small Cap

-2.76

-1.16

0.41

4.30

12.03

20.07

14.82

17.90

20.98

1 Month Returns

1-Year Returns

3-Year Returns

Global 0.87

US 2.10

Global 2.83

US 11.21

Global 12.83

US 17.58

International 2.08

Emerging Markets -6.93

International -0.28

Emerging Markets -13.38

International 12.32

Emerging Markets 0.61

<-20

-20 to -10

-10 to 0

0 to 10

10 to 20

>20

Source: Morningstar as of 7/31/15

15

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information. Returns over 1 year are annualized. Large Cap Value represented by Russell 1000 Value Index. Large Cap Core represented by Russell 1000 Index. Large Cap Growth represented by Russell 1000 Growth Index. Mid Cap Value represented by Russell Mid Cap Value Index. Mid Cap Core represented by Russell Mid Cap Index. Mid Cap Growth represented by Russell Mid Cap Growth Index. Small Cap Value represented by Russell 2000 Value Index. Small Cap Core represented by Russell 2000 Index. Small Cap Growth represented by Russell 2000 Growth Index. Global represented by MSCI ACWI Index. US represented by S&P 500 Index. International represented by MSCI EAFE Index. Emerging Markets represented by MSCI Emerging Markets Index.

Eaton Vance Monthly Market Monitor Equities

Dividend Yields and Volatility Analysis Historical Yields

Current Yields

4.5%

3.5%

4.0%

3.0% 2.5%

3.5% 3.0%

2.0%

2.5%

1.5%

2.0%

1.0%

1.5%

0.5%

1.0%

2.2 1.9

0.0% '10

'11

'12 MSCI EAFE

S&P 500

'13

'14

MSCI EM

'15

S&P 500

10 Yr Treasury MSCI World

MSCI EM

MSCI EAFE

MSCI World Source: FactSet as of 7/31/15

Source: FactSet as of 7/31/15

Correlation of S&P 500 Stocks

CBOE Market Volatility Index (VIX)

1.0

50.0

0.8

40.0

0.6

30.0

0.4

20.0

0.2

10.0 0.0

0.0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 S&P 500 Stocks Correlation Source: BA540, Ned Davis Research as of 7/31/15*

16

2.9

2.7 2.4

Average

'10

'11

'12

'13

'14 VIX

Source: FactSet as of 7/31/15

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

Average

'15

Eaton Vance Monthly Market Monitor Equities

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

Average

MSCI World Current P/E

Current

25.0

20.0

15.0

10.0

5.0

0.0

7/09

Russell 1000 Growth 8/05

Russell 1000 Value 2/15

9/11

11/08

9/11

14.13

19.77

16.07

12.97

High

17.19

25.27

19.29

Low

10.73

14.20

11.19

Current

16.57

23.85

18.94

S&P 500

Russell 2000

High Date

2/15

Low Date

9/11

Average

MSCI EAFE

MSCI EM

2/15

5/15

10/07

3/15

MSCI AC Asia Pac 7/09

10/08

10/08

10/08

10/08

10/08

13.43

12.73

10.97

11.94

13.81

15.98

16.80

15.83

14.98

16.00

20.23

9.68

9.25

8.28

6.86

7.72

9.27

15.31

16.39

15.47

11.21

15.53

13.50

MSCI World

Source: FactSet as of 7/31/15

17

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.

MSCI Europe

Eaton Vance Monthly Market Monitor Equities

Valuation Analysis S&P 500 Sectors: Current NTM P/E vs. 10-Year High, Low, Average 30.0

Average

Current

S&P 500 Current P/E

25.0

20.0

15.0

10.0

5.0

0.0

High Date

Consumer Discretionary 1/07

Consumer Staples 8/06

Energy

Financials

Health Care

Industrials

4/15

8/09

2/06

3/06

Information Technology 10/07

5/09

Telecom.

Services 7/12

Low Date

9/11

2/09

9/08

9/11

2/09

2/09

9/11

9/11

10/08

Average

16.42

2/09

16.74

12.69

12.14

14.39

14.78

15.64

14.87

14.80

14.40

High Low

20.23

20.74

29.62

17.53

18.28

17.62

21.76

25.01

19.58

17.81

12.45

11.76

8.12

8.61

10.05

9.04

11.12

9.29

10.11

10.17

Current

19.45

19.70

23.42

13.33

17.65

15.80

15.87

15.43

12.76

15.85

Materials

Source: FactSet as of 7/31/15

18

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.

Utilities 1/15

Eaton Vance Monthly Market Monitor Equities

Corporate Earnings Growth NTM EPS Growth

Regions/Styles

LTM EPS Growth

15.0 0.0 -15.0 -30.0 -45.0 Russell 2000

MSCI Emerging Markets

MSCI AC Asia Pacific

MSCI EAFE

MSCI Europe

Russell 1000 Growth

MSCI World

S&P 500 Sectors

S&P 500

NTM EPS Growth

Russell 1000 Value

LTM EPS Growth

15.0 0.0 -15.0 -30.0 -45.0 Discretionary

Financials

Health Care

Telecom.

Materials

Info. Tech.

Staples

Source: FactSet as of 7/31/15

19

NTM EPS Growth is market price per share divided by expected earnings per share over the next twelve months.

LTM EPS Growth is market price per share divided by historical earnings per share over the last 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.

Industrials

Utilities

Eaton Vance Monthly Market Monitor Equities

S&P 500 Index â&#x20AC;&#x201C; 1-Month Return Analysis 3-5 Year Earnings Growth 5.0%

5.0% 3.0% 2.0%

16.0%

4.2

4.0

4.0%

S&P 500 Quality Ranking

Trailing 12 Month P/E

2.1

1.0%

2.0%

0.6

0.0%

12.0%

2.7

3.0%

1.9

10.0%

2.1 1.6

1.9

8.0% 6.0%

1.0%

4.0

4.0%

-1.0% 0.0%

-2.0% -2.2

-3.0% S&P 500

13.0+

10.0 13.0

2.0% -0.4

-1.0% S&P 500

8.0 - 5.0 - 8.0 <5.0 10.0

31.6+

Market Cap

23.7 31.4

19.3 23.7

14.9 19.3

2.0%

1.0

1.0%

3.4 2.1

2.1

1.8

0.0%

0.0% -0.6

$50B+

$10B $50B

$5B $10B

-2.6 $0 - $5B

0.6

A+

A

A-

B+

B

B-

C

5.3

5.0% 4.0%

2.1

1.6

1.5

1.2

1.0% -6.2

-8.0% S&P 500

1.4+ 1.1 - 1.40.9 - 1.10.7 - 0.9 <0.7

0.0

0.0% S&P 500

Source: FactSet, Zephyr and Morningstar as of 7/31/15

20

0.4

6.0%

2.0%

-6.0% S&P 500

S&P 500

-4.0%

-2.0% -3.0%

1.2

3.0%

-2.0%

-1.0%

1.9

0.0%

<14.8

4.6

4.0%

2.1

2.2

Dividend Yield

6.0% 2.9

3.0%

2.1

Beta

4.0%

2.0%

14.4

14.0%

4.0%

2.7

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

3.5+

2.4 3.5

1.6 2.4

0.6 1.6

0.0 0.6

Eaton Vance Monthly Market Monitor Equities

S&P 500 Index â&#x20AC;&#x201C; YTD Analysis 3-5 Year Earnings Growth 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 -2.00 -4.00 -6.00 -8.00

12.3

10.0%

40.0%

6.2

6.0%

4.1

3.4

4.0%

1.2

30.0% 3.4

3.3

20.0%

2.0% -0.1

0.6

0.0%

14.1+

10.8 14.1

8.3 10.8

5.1 8.2

0.0%

S&P 500

30.5+

23.6 30.5

8.0%

4.4 1.7

19.2 23.6

4.0%

1.8

3.4

15.5 19.2

0.0%

6.2

0.8

0.0% -2.0%

-2.0%

-4.0% -4.0%

-6.0% -4.7

-6.0% $50B+

$10B $50B

S&P 500

<15.5

2.4

2.0%

S&P 500

-2.1 -2.3

$5B $10B

$0 - $5B

-5.8

-8.0% S&P 500

1.4+ 1.1 - 1.40.9 - 1.10.6 - 0.9 <.06

14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0%

A

A-

B+

B

B-

12.5

3.4 0.4

S&P 500

Source: FactSet, Zephyr and Morningstar as of 7/31/15

21

A+

Dividend Yield 6.6

6.0%

3.4

3.2

-10.0%

-4.0%

Beta

6.0%

0.4

0.3

-1.9

Market Cap

2.0%

6.6

10.0% 3.4

-2.0% -5.7 <5.1

45.7

50.0%

8.3

8.0%

S&P 500

4.0%

S&P 500 Quality Ranking

Trailing 12 Month P/E

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

-2.8 3.5+

2.4 3.5

1.8

1.6 2.4

3.5

0.6 1.6

0.0 0.6

C

Eaton Vance Monthly Market Monitor Equities

Index Sectors: Return Analysis

1 Month

Year-to-date

1 Year

1 Month

Year-to-date

Source: FactSet, Zephyr and Morningstar as of 7/31/15

22

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

1 Year

Utilities

Telecom.

Materials

Info. Tech.

Industrials

-30.00 Health Care

-30.00

Financials

-20.00

Energy

-20.00

Utilities

-10.00

Telecom.

-10.00

Materials

0.00

Info. Tech.

0.00

Industrials

10.00

Health Care

10.00

Financials

20.00

Energy

20.00

Staples

30.00

Discretionary

30.00

Staples

MSCI World

Discretionary

S&P 500

Eaton Vance Monthly Market Monitor Equities

Global Equity: Current Characteristics & Sector Weights S&P 500

R2000

R1000G

R1000V

MSCI World

MSCI EAFE

MSCI EM

MSCI Europe

MSCI Asia Pac

502

1975

644

684

1642

910

836

441

1002

$691.74B

$12.07B

$691.74B

$374.86B

$691.74B

$279.65B

$310.11B

$279.65B

$310.11B

$2.57M

$0.05M

$0.45M

$0.45M

$1.32M

$1.65M

$0.85M

$2.21M

$0.88M

Dividend Yield

1.92

1.31

1.78

2.47

2.41

2.78

2.73

3.17

2.49

NTM PE

16.57

23.85

18.94

15.31

16.39

15.47

11.21

15.53

13.50

Price to Book

2.72

2.21

5.76

1.75

2.22

1.75

1.38

1.87

1.48

Price to Cash Flow

11.44

14.48

15.06

9.35

10.07

8.52

6.59

8.17

8.13

Number of Holdings Market Capitalization Maximum Minimum

Price to Sales

1.78

1.24

2.19

1.44

1.48

1.17

0.98

1.21

1.02

Est 3-5YR EPS Growth

10.85

15.09

14.67

8.06

10.59

9.12

12.21

9.61

9.26

5YR Dividend Growth Rate

13.66

19.64

16.44

11.86

8.60

4.81

6.05

5.22

4.60

S&P 500

3% 2%

Discretionary

MSCI World

3%

Discretionary

13%

10%

20%

7%

Industrials

Financials Industrials Info. Tech

10%

10%

13%

Utilities

7% 11%

Materials 17%

Telecom.

15%

Telecom.

Utilities

Source: FactSet, Zephyr and Morningstar as of 7/31/15

23

13%

Health Care

Health Care

Materials

3%

Energy

Energy

Info. Tech

5%

Staples

Staples Financials

3%

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

14%

21%

Eaton Vance Monthly Market Monitor Equities

Equity Asset Class Return Analysis (%) 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. 2.10 2.60 -0.24 -0.19 3.39 0.44 0.74 -1.16 2.80

3-Mo. 1.41 2.22 -2.81 1.25 3.00 -0.38 0.10 1.85 3.31

YTD 3.35 2.54 0.28 4.61 7.49 -0.18 3.11 3.54 6.57

1Y 11.21 15.82 4.64 11.19 16.08 6.40 10.69 12.03 6.77

3Y 17.58 18.40 22.01 18.86 18.78 17.11 19.47 17.90 8.16

5Y 16.24 17.47 17.34 16.22 17.75 15.08 16.77 15.27 9.19

10Y 7.72 7.94 9.57 8.45 8.95 6.79 8.92 7.61 5.04

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

1.80 2.08 -6.93 -2.76 0.87 3.12 2.76 0.90 4.01 1.73

-0.23 -1.32 -12.98 -6.71 -1.63 -0.82 -3.13 2.05 1.01 5.46

4.47 7.72 -4.19 4.44 3.55 7.06 4.16 9.99 17.96 17.96

4.92 -0.28 -13.38 -2.30 2.83 -1.03 3.09 10.01 21.06 31.78

14.46 12.32 0.61 8.83 12.83 13.11 9.80 19.46 18.08 33.28

11.74 8.01 0.58 6.24 10.38 8.29 8.75 14.22 12.39 16.63

6.20 5.02 6.62 5.80 6.11 4.98 6.19 7.72 6.38 5.63

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

4.81 5.51 -7.65 3.12 2.80 0.20 2.99 -5.02 -0.01 6.06

6.87 4.46 -15.04 4.70 7.16 -2.02 0.83 -8.31 -4.05 0.36

11.95 4.69 -11.97 2.74 12.63 -2.87 3.78 -4.55 3.15 -5.26

23.68 19.29 -25.68 14.40 27.47 6.91 12.77 -4.23 -1.73 10.47

24.58 14.97 1.45 21.99 28.04 17.10 17.10 11.87 4.11 9.24

22.69 16.44 7.14 13.35 24.19 14.79 16.69 10.67 12.06 12.15

10.48 10.89 5.56 0.47 11.32 7.66 9.30 7.45 6.91 7.27

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 7/31/15

24

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 Equities

Equity Asset Class Return Analysis (%) Higher

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

YTD 7/15

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 7.72

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 7.49

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 3.55

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

Small-Cap 3.54

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

S&P 500 3.35

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

Mid-Cap 2.35

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

Value -0.18

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

Emerging Markets -4.19

Lower Source: FactSet, Zephyr and Morningstar as of 7/31/15

25

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 Alternatives

Developed Market Currency Performance & Interest Rates 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

-

-

-

-

-

1.97

10.67

22.48

4.02

3.61

0.06

0.15

0.31

Euro (EUR) *

-1.84

-9.63

-18.38

-3.86

-3.48

-

-

-

-

-

-0.31

-0.27

-0.25

British Pound (GBP)

-0.67

0.14

-7.61

-0.17

-0.12

1.26

10.81

13.16

3.84

3.48

0.48

0.54

0.52

Japanese Yen (JPY)

-1.32

-3.51

-17.19

-14.31

-6.98

0.60

6.73

1.42

-10.86

-3.63

-

-0.03

0.00

Australian Dollar (AUD)

-5.38

-10.75

-21.55

-11.45

-4.21

-3.54

-1.28

-3.90

-7.89

-0.75

1.96

-

1.93

Canadian Dollar (CAD)

-3.89

-10.61

-16.11

-8.28

-4.55

-2.01

-1.07

2.76

-4.60

-1.11

0.39

0.41

0.41

New Zealand Dollar (NZD)

-2.42

-15.33

-22.33

-6.54

-1.88

-0.48

-6.29

-4.86

-2.78

1.66

2.74

-

2.47

Norwegian Krone (NOK)

-3.91

-8.82

-23.09

-9.62

-5.76

-2.05

0.91

-5.81

-6.03

-2.35

0.90

0.85

0.78

Swedish Krona (SEK)

-3.90

-9.47

-20.02

-7.62

-3.52

-2.04

0.18

-2.02

-3.91

-0.03

-0.47

-0.48

-0.51

Danish Krone (DKK)

-1.94

-9.81

-18.41

-3.95

-3.51

-0.01

-0.19

-0.07

-0.09

-0.02

-0.69

-

-0.61

Swiss Franc (CHF)

-3.48

2.59

-6.23

0.25

1.44

-1.68

13.53

14.85

4.27

5.10

-0.74

-0.69

-0.86

Foreign Currencies Appreciation / (Depreciation) vs. USD Trailing 12-Mo. % Change

Foreign Currencies Appreciation / (Depreciation) vs. EUR Trailing 12-Mo. % Change

30%

30%

20%

20%

10%

10%

0%

0%

-10%

-10%

-20%

-20%

-30%

-30%

* German Rate

EUR*

GBP

JPY

AUD

NZD

USD

GBP

Source: Bloomberg as of 7/31/15

26

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

NOK

SEK

CHF

Eaton Vance Monthly Market Monitor Alternatives

Emerging Market Currency Performance & Interest Rates 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)

-0.14

-0.07

-0.58

0.81

1.76

1.67

10.76

21.39

4.64

5.36

-

-

2.54

Malaysian Ringgit (MYR)

-1.20

-8.42

-16.32

-6.41

-3.58

0.36

1.47

2.16

-2.88

-0.18

3.06

3.06

3.13

Indian Rupee (INR)

-0.61

-1.56

-5.44

-4.57

-6.24

1.39

9.16

15.42

-0.89

-2.91

7.43

7.49

7.59

Indonesian Rupiah (IDR)

-0.88

-7.95

-13.95

-11.06

-7.84

0.76

2.11

5.13

-7.69

-4.62

-

-

6.96

Philippine Peso (PHP)

-1.17

-2.02

-4.78

-2.92

-0.04

0.37

8.10

16.24

0.73

3.49

-

1.91

2.19

Singapore Dollar (SGD)

-2.04

-3.63

-9.28

-3.27

-0.22

-0.12

6.64

11.11

0.61

3.37

-

-

0.93

South Korean Won (KRW)

-4.51

-6.61

-12.02

-1.09

0.25

-2.69

3.46

7.41

2.67

3.79

1.51

2.10

1.67

Taiwanese Dollar (TWD)

-2.19

0.29

-4.89

-1.70

0.26

-0.32

11.28

16.24

2.07

3.84

-

-

0.52

Thai Baht (THB)

-3.86

-6.39

-8.44

-3.58

-1.72

-2.03

3.55

12.13

0.30

1.83

1.45

1.45

1.46

Brazilian Real (BRL)

-9.31

-22.32

-33.84

-15.60

-12.50

-6.26

-12.78

-17.80

-11.80

-9.08

14.21

14.23

14.00

Chilean Peso (CLP)

-4.88

-9.74

-14.85

-10.46

-4.95

-3.05

-0.08

4.26

-6.84

-1.53

-

-

3.20

Colombian Peso (COP)

-9.53

-17.49

-34.85

-14.63

-8.54

-7.17

-8.14

-19.76

-11.03

-5.13

-

-

4.53

Mexican Peso (MXN)

-2.30

-8.43

-17.95

-6.12

-4.73

-1.37

0.30

-0.49

-2.67

-1.48

3.21

3.29

3.58

Peruvian New Sol (PEN)

-0.36

-6.63

-12.22

-6.29

-2.44

1.66

3.59

7.65

-2.49

1.12

-

-

3.42

ASIA, EX. JAPAN

LATIN AMERICA

Source: Bloomberg as of 7/31/15

27

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 Alternatives

Emerging Market Currency Performance & Interest Rates 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)

-0.72

-7.25

-16.16

-5.83

-5.08

0.81

2.24

2.30

-2.17

-1.74

-0.03

-0.03

-0.01

Hungarian Forint (HUF)

1.07

-6.43

-16.22

-6.45

-4.89

1.98

2.52

1.59

-3.02

-1.66

0.88

0.89

0.87

Polish Zloty (PLN)

-0.28

-6.03

-17.25

-3.90

-4.03

1.18

3.49

0.86

-0.22

-0.66

-

-

1.65

Romanian Leu (RON)

0.11

-7.74

-17.59

-2.44

-4.09

1.63

1.82

0.56

1.34

-0.70

1.02

1.30

1.30

Russian Ruble (RUB)

-10.31

-1.57

-42.17

-19.49

-13.31

-5.62

12.57

-26.84

-15.34

-9.56

12.20

12.25

12.32

Turkish New Lira (TRY)

-3.22

-15.73

-22.70

-13.47

-11.46

-1.81

-7.17

-5.76

-10.15

-8.36

10.40

10.26

10.05

Ghanaian Cedi (GHS)

15.80

-14.54

-2.65

-19.62

-17.45

17.84

-5.54

19.08

-16.43

-14.55

25.33

-

22.50

Israeli Shekel (ILS)

-0.04

3.24

-9.27

1.80

-0.04

1.75

14.05

10.94

5.83

3.50

0.09

0.11

0.12

Kenyan Shilling (KES)

-3.03

-11.48

-14.22

-6.26

-4.77

-0.90

-1.85

5.36

-2.40

-1.24

12.72

12.77

12.88

Moroccan Dirham (MAD)

-0.77

-7.51

-14.97

-3.03

-2.76

1.08

1.79

3.91

0.73

0.66

-

-

2.56

Nigerian Naira (NGN)

0.13

-7.77

-18.62

-6.85

-5.46

1.77

1.58

-0.49

-3.17

-2.09

13.79

13.80

14.78

South African Rand (ZAR)

-4.04

-8.75

-15.56

-13.32

-10.46

-2.30

0.83

3.27

-9.88

-7.24

6.52

6.60

6.93

Ugandan Shilling (UGX)

-3.93

-19.33

-23.58

-10.29

-8.28

-1.34

-10.08

-5.88

-6.46

-4.83

13.78

14.68

14.90

Zambian Kwacha (ZMK)

-2.12

-16.79

-20.13

-13.50

-8.75

-0.13

-7.76

-1.98

-10.06

-5.43

-

-

22.90

EUROPE

MIDDLE EAST AND AFRICA

Source: Bloomberg as of 7/31/15

28

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 Alternatives

Local Sovereign Interest Rates Developed Market Local Interest Rates (1 Year) Swiss Franc (CHF)

-0.86 -0.03

Danish Krone (DKK)

Emerging Market Local Interest Rates (1 Year)

Jul ‘14

-0.61

-0.51 0.16

Euro (EUR) *

0.87 1.89

Thai Baht (THB)

1.46 2.11

Jul ‘15 0.05

Swedish Krona (SEK)

Hungarian Forint (HUF)

0.01

Japanese Yen (JPY)

0.00 0.05

U.S. Dollar (USD)

0.31 0.11

Polish Zloty (PLN) Philippine Peso (PHP)

2.19 1.71

0.41 1.02

British Pound (GBP)

0.52 0.41

Norwegian Krone (NOK)

3.13 3.25

Chilean Peso (CLP)

3.20 3.52

Peruvian New Sol (PEN)

3.42 3.45

Mexican Peso (MXN)

3.58 3.05

Colombian Peso (COP)

Canadian Dollar (CAD)

Jul ‘14

1.65 2.36

Malaysian Ringgit (MYR)

-0.25

Jul ‘15

4.53 4.83

South African Rand (ZAR)

6.93 6.77

Indonesian Rupiah (IDR)

6.96 6.86 10.05

Turkish New Lira (TRY)

0.78 1.24

8.10 12.32

Russian Ruble (RUB) Australian Dollar (AUD)

1.93 2.51

New Zealand Dollar (NZD) * German Rate

-5.00

5.00

14.00

Brazilian Real (BRL)

2.47 3.59

0.00

10.33 11.02 14.78

Nigerian Naira (NGN) 10.00

15.00

20.00

0.00

10.89

5.00

Source: Bloomberg as of 7/31/15

29

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 Alternatives

Commodities Return Analysis (%) 1-Mo.

3-Mo.

YTD

1Y

3Y

5Y

-7.30

-18.59

-16.90

-26.89

-10.49

-9.01

Aluminum

-4.76

-17.92

-15.35

-22.95

-11.37

-11.40

-13.91

Copper

-9.62

-18.25

-16.54

-27.23

-12.28

-7.64

-23.10

-0.72

Nickel

-7.97

-21.18

-27.78

-41.34

-12.84

-13.35

2.62

-2.06

3.21

Zinc

-4.39

-19.02

-13.01

-20.74

-2.62

-4.72

-6.35

-12.70

-5.57

6.88

-6.37

-7.99

-7.58

-18.70

-14.55

-2.50

-4.64

-7.27

-19.34

-19.43

-9.13

Gold

-6.73

-7.64

-7.92

-15.06

-12.52

-2.08

-10.66

-17.98

-24.78

-42.70

-29.81

-11.44

Platinum

-8.75

-13.76

-18.82

-33.17

-12.03

-9.78

-18.92

4.05

-16.07

-10.53

-22.31

-15.25

Silver

-5.36

-8.96

-6.21

-28.79

-20.13

-4.89

-14.47

-16.66

-12.91

-47.31

-18.27

-15.84

-2.17

-5.30

-13.08

-16.62

-1.98

-2.02

Brent Crude

-17.85

-23.07

-17.52

-56.30

-20.53

-7.25

Lean Hogs

0.45

-7.41

-24.14

-35.04

-10.52

-9.03

Heating Oil

-16.56

-20.96

-12.96

-44.54

-17.00

-6.32

Live Cattle

-3.54

-3.64

-5.95

-4.59

3.20

2.15

Natural Gas

-4.43

-4.54

-13.41

-38.69

-18.72

-30.03

Unleaded Gas

-11.38

-9.03

5.62

-40.09

-11.44

0.61

WTI Crude Oil

-21.24

-23.41

-21.21

-56.01

-20.64

-14.12

Index

1-Mo.

3-Mo.

YTD

1Y

3Y

5Y

Bloomberg Commodity Index

-10.62

-11.53

-12.01

-28.23

-13.93

-7.27

Bloomberg Sub Agriculture

-11.11

-3.24

-12.24

-18.05

-16.18

-3.05

Coffee

-5.40

-10.36

-28.67

-41.80

-18.81

Corn

-12.08

-0.65

-12.04

-8.33

Cotton

-5.45

-6.46

4.70

Soybean

-9.35

-0.86

Soybean Oil

-10.80

Sugar Wheat Bloomberg Sub Energy

Index Bloomberg Sub Industrial Metals

Bloomberg Sub Precious Metals

Bloomberg Sub Livestock

Source: Bloomberg, Morningstar as of 7/31/15

30

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.

Eaton Vance Monthly Market Monitor Alternatives

Alternatives Asset Class Return Analysis (%) 2005

Higher

2006

2007

2008

2009

Private Equity Real Estate Private Equity 28.42 35.50 19.53

Currency 4.80

MLP 76.41

Commodity Private Equity Commodity 21.36 28.71 16.23

Global Macro -0.33

Distressed 35.22

2010

2011

2012

YTD 6/15* Equity Mrkt.

MLP MLP Real Estate MLP Real Estate Neutral 35.85 13.88 18.93 27.58 27.24 5.57 Merger Real Estate Private Equity Distressed Private Equity Private Equity Arbitrage 26.93 11.03 18.06 20.77 11.09 1.96

Merger Real Estate Private Equity Real Estate Private Equity Arbitrage 30.81 20.37 6.05 13.95 -3.92 Equity Mrkt. Equity Mrkt.

Merger Global Macro Distressed Multi-Strategy Distressed Multi-Strategy Neutral Neutral Arbitrage 8.75 16.05 25.77 18.09 6.45 13.41 -5.46 0.68 Equity Mrkt.

Distressed Multi-Strategy Multi-Strategy Commodity Commodity MLP Distressed Neutral 8.26 15.45 12.72 -13.22 18.91 16.83 0.52 5.39 Merger Merger Merger Currency Multi-Strategy Multi-Strategy Private Equity Private Equity Arbitrage Arbitrage Arbitrage 0.14 8.10 10.56 -22.32 13.40 4.91 14.07 9.17 Merger Equity Mrkt.

Merger Equity Mrkt.

Distressed MLP MLP Multi-Strategy Arbitrage Neutral Arbitrage Neutral -23.35 4.80 6.32 9.01 13.16 13.17 7.94 -1.43 Merger Equity Mrkt.

Currency Global Macro Global Macro Global Macro Currency Commodity Arbitrage Neutral 8.02 10.21 7.11 -35.91 -2.65 3.65 5.12 11.79 Equity Mrkt.

Currency Distressed MLP Global Macro Global Macro Multi-Strategy Currency Neutral 7.22 4.91 -36.91 6.48 5.77 -4.10 3.44 5.17 Equity Mrkt.

Commodity Commodity Currency Commodity Real Estate Real Estate Currency Neutral -13.32 -1.06 2.81 2.07 -18.15 -40.07 3.96 Lower 3.72 Real Estate 9.64

MLP 26.07

Global Macro 15.67

2013

2014

Distressed 15.70

MLP 4.80

Multi-Strategy 0.99

Equity Mrkt.

Neutral 9.62

Currency 3.09

Global Macro 0.59

Multi-Strategy Global Macro 8.22 0.43 Merger Arbitrage 5.39 Global Macro 3.01 Real Estate 1.77 Currency 0.55 Commodity -9.52

Source: Morningstar as of 7/31/15. *Data is on a 1-month lag.

31

Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information. Real Estate represented by the Dow Jones US Real Estate Index. Global Macro represented by HFRI Global Macro Index. Merger Arbitrage represented by HFRI Merger Arbitrage Index. Multi-Strategy represented by HFRI Multi-Strategy Index. Currency represented by the HFRI Currency Index. Equity Market Neutral represented by HFRI Equity Market Neutral Index. Commodity represented by Bloomberg Commodity Index. MLP represented by Alerian MLP Index. Distressed represented by HFRI Distressed Securities Index. Private Equity represented Cambridge Associates LLC U.S. Private Equity Index速.

Currency -1.38

Multi-Strategy Commodity 0.26 -1.56 Equity Mrkt.

Neutral 0.19 Merger Arbitrage -2.11 Distressed -3.11

Distressed -2.46 Real Estate -5.19 MLP -11.00

Commodity Private Equity -17.01 -

Eaton Vance Monthly Market Monitor Asset Allocation

Major Asset Class Return Analysis (%) Higher

Lower

2005 Emerging Markets 34.00

2006 Emerging Markets 32.14

2007 Emerging Markets 39.42

2008 US Agg 5.24

2009 Emerging Markets 78.51

2010

2011

Small-Cap 26.85

Municipal 10.70

2012 Emerging Markets 18.22

2013

2014

YTD 7/15

Small-Cap 38.82

S&P 500 13.69

International 7.72

Commodities International Commodities 26.34 16.23 21.36

Municipal -2.47

High Yield 58.21

Emerging Markets 18.88

US Agg 7.84

International 17.32

S&P 500 32.39

Municipal 9.05

Small-Cap 3.54

International 13.54

Small-Cap 18.37

International 11.17

High Yield -26.16

Bank Loan 51.62

Commodities 16.83

High Yield 4.98

Small-Cap 16.35

International 22.78

US Agg 5.97

S&P 500 3.35

Asset Allocation 7.67

S&P 500 15.79

Asset Allocation 7.75

Asset Allocation -26.69

International 31.78

High Yield 15.12

S&P 500 2.11

S&P 500 16.00

Asset Allocation 13.83

Small-Cap 4.89

Bank Loan 2.82

Bank Loan 5.06

Asset Allocation 13.62

US Agg 6.97

Bank Loan -29.10

Small-Cap 27.17

S&P 500 15.06

Bank Loan 1.52

High Yield 15.81

High Yield 7.44

Asset Allocation 4.28

Asset Allocation 2.06

S&P 500 4.91

High Yield 11.85

S&P 500 5.49

Small-Cap -33.79

S&P 500 26.46

Asset Allocation 12.91

Asset Allocation -0.35

Asset Allocation 11.91

Bank Loan 5.29

High Yield 2.45

High Yield 1.93

Small-Cap 4.55

Bank Loan 6.74

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

Municipal 0.84

Municipal 3.51

Municipal 4.84

Bank Loan 2.08

S&P 500 -37.00

International -12.14

Municipal 6.78

Municipal -2.55

Emerging Markets -2.19

US Agg 0.59

High Yield 2.74

US Agg 4.33

High Yield 1.87

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 -4.19

US Agg 2.43

Commodities 2.07

Small-Cap -1.57

Emerging Markets -53.33

US Agg 5.93

Municipal 2.38

Emerging Markets -18.42

Commodities International 18.91 7.75

Commodities Commodities Commodities Commodities -1.06 -17.01 -9.52 -12.01

Source: FactSet, Zephyr and Morningstar as of 7/31/15 Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information. S&P 500 represented by the S&P 500 Index. International represented by MSCI EAFE Index. Emerging Markets represented by MSCI Emerging Markets Index. Small-Cap represented by Russell 2000 Index. US Aggregate represented by the Barclays Capital US Aggregate Bond Index. Municipal represented by Barclays Municipal Bond Index.

High Yield represented by Barclays US Corporate High Yield Index. Bank Loan represented by S&P/LSTA Leveraged Loan Index. Commodity represented by Bloomberg 32 Commodity Index. The Asset Allocation portfolio assumes the following weights: 25% in the S&P 500 Index, 15% in the MSCI EAFE Index, 5% in the MSCI Emerging Markets Index, 10% in the Russell 2000 Index, 25% in the Barclays Capital US Aggregate Bond Index, 5% in the Barclays Municipal Bond Index, 5% in the Barclays US Corporate High Yield Index, 5% in the S&P/LSTA Leveraged Loan Index, and 5% in the Bloomberg Commodity Index.

Eaton Vance Monthly Market Monitor Asset Allocation

Major Asset Classes Correlation Table 5 Years ended July 31, 2015

10 Years ended July 31, 2015

S&P 500

International

Emerging Markets

Small-Cap

US Aggregate

Municipal

High Yield

Bank Loan

Commodities

S&P 500

1.00

0.88

0.77

0.92

0.04

0.11

0.73

0.59

0.50

International

0.86

1.00

0.88

0.79

0.13

0.14

0.75

0.59

0.61

Emerging Markets

0.73

0.82

1.00

0.72

0.15

0.14

0.73

0.59

0.66

Small-Cap

0.90

0.73

0.69

1.00

-0.03

0.06

0.70

0.56

0.43

US Aggregate

-0.25

-0.10

-0.03

-0.28

1.00

0.54

0.24

-0.01

0.07

Municipal

-0.23

-0.08

-0.03

-0.28

0.82

1.00

0.36

0.30

-0.04

High Yield

0.76

0.81

0.79

0.69

0.16

0.08

1.00

0.86

0.49

Bank Loan

0.64

0.67

0.60

0.56

-0.09

-0.14

0.79

1.00

0.42

Commodities

0.58

0.63

0.69

0.54

-0.13

-0.16

0.61

0.39

1.00

Source: FactSet, Zephyr and Morningstar as of 7/31/15 The table above shows the return correlation between various asset classes (represented by market indices as defined in this disclosure) over the past five and ten years. Data provided is for informational use only. Past performance is no guarantee of future results. See end of report for important additional information. S&P 500 is represented by the S&P 500 Index. International is represented by MSCI EAFE Index. Emerging Markets is represented by MSCI Emerging Markets Index. Small-Cap is represented by Russell 2000 Index. US Aggregate is represented by the Barclays Capital US Aggregate Bond Index.

33 Municipal is represented by Barclays Municipal Bond Index. High Yield is represented by Barclays US Corporate High Yield Index. Bank Loan is represented by S&P/LSTA Leveraged Loan Index. Commodity is represented by Bloomberg Commodity Index.

Eaton Vance Monthly Market Monitor Asset Allocation

Fund & ETF Flows by Category Top 10 Open-End Mutual Fund Categories by Monthly Flows ($MM) 6/15

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

1 Mo.

3 Mo.

12 Mo.

1 Mo.

3 Mo.

12 Mo.

Foreign Large Blend

9,773

36,726

84,817

Foreign Large Blend

6/15

4,851

18,095

43,887

Health

1,749

5,160

18,520

Small Blend

3,155

852

7,988

2,662

3,484

12,221

3,597

1,608

Multialternative

1,647

5,057

12,779

Health

World Bond

1,615

9,551

21,124

Financial

2,367

Foreign Large Growth

1,282

4,879

(4,362)

Large Growth

1,688

796

2,241

713

5,058

19,801

Europe Stock

1,673

8,384

20,078

Intermediate-Term Bond

709

9,971

54,347

Miscellaneous Region

1,631

4,615

4,596

Mid-Cap Blend

674

1,565

10,153

Japan Stock

1,539

5,131

11,331

Diversified Emerging Mkts

Managed Futures

514

1,843

5,391

Intermediate-Term Bond

1,311

3,970

21,076

Multisector Bond

429

2,026

9,683

Mid-Cap Blend

1,263

2,994

8,932

Bottom 10 Open-End Mutual Fund Categories by Monthly Flows ($MM) 6/15 Mid-Cap Growth

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

1 Mo.

3 Mo.

12 Mo.

1 Mo.

3 Mo.

12 Mo.

(785)

(4,429)

(21,201)

Short Government

6/15

(330)

(1,214)

1,621

Mid-Cap Value

(927)

(3,573)

(10,412)

Natural Resources

(445)

(455)

(4,233)

Ultrashort Bond

(931)

(2,658)

(1,102)

Industrials

(445)

(1,345)

(4,690)

Emerging Markets Bond

(1,274)

(1,248)

(4,739)

Long Government

(468)

(1,665)

1,271

Bank Loan

(1,327)

(757)

(28,779)

Utilities

(477)

(848)

(2,225)

Real Estate

(1,592)

(2,595)

(565)

Diversified Emerging Mkts

(635)

3,078

390

Large Growth

(3,126)

(10,656)

(43,779)

Corporate Bond

(793)

(52)

8,602

Large Value

(3,631)

(9,228)

(17,830)

Real Estate

(1,137)

(3,417)

(11)

High Yield Bond

(3,035)

(4,121)

512

Large Blend

(3,046)

(10,511)

31,241

High Yield Bond

(4,303)

(3,489)

(23,128)

Large Blend

(4,353)

(14,660)

35,319

Source: Morningstar as of 7/31/15

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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

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. Asset Backed Securities (ABS) Index measures ABS with the following collateral type: credit and charge card, auto, and utility loans Barclays U.S. CMBS Index measures the market of conduit and fusion CMBS deals with a minimum current deal size of $300mn Barclays U.S. Corporate High Yield Index measures USD-denominated, non-Investment Grade corporate securities 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 Barclays U.S. Mortgage Backed Securities (MBS) Index measures agency mortgagebacked pass-through securities issued by GNMA, FNMA, and FHLMC Barclays U.S. Treasury Index measures public debt 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 fixedrate, 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 Bloomberg Commodity Index is a broadly diversified index tracking futures contracts on physical commodities

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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) Diversified is a market-cap weighted index that measures USD-denominated emerging market corporate bonds 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 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

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 & About Risk INDEX DEFINITIONS: 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 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: 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 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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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. LowerRated – 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.

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 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.

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