Eaton Vance repackages high-yield portfolio into new fixed-income fund

By Toni Weeks

San Luis Obispo, Calif., Aug. 16 - Eaton Vance Mutual Funds Trust announced in an N-1A filing with the Securities and Exchange Commission its plans to offer a high-yield, fixed-income fund that has an already-established high-yield portfolio.

The Eaton Vance Short Duration High Income Fund will seek total return by investing primarily in fixed-income securities rated below investment grade, including preferred stock, subordinated floating-rate loans and convertible securities. The fund intends to maintain a dollar-weighted average duration of three years or less but may invest in securities of any maturity and from any ratings category.

Michael Weilheimer has managed the portfolio since its Feb. 21, 2012 inception and will also manage the fund when it launches in November.

The fund will offer class A, class C and class I shares. Ticker symbols have not yet been set.

Shareholder fees consist of a 4.75% maximum sales charge for class A shares and a 1% maximum deferred sales charge for class C shares.

Including management fees of 0.6%, and taking into account the effects of an expense reimbursement agreement with the investment adviser, total annual fund operating expenses are expected to be 1.05% for class A, 1.8% for class C and 0.8% for class I shares.

Boston-based Eaton Vance Management will serve as the investment adviser to the fund. Boston Management and Research serves as investment adviser to the portfolio.

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