Eaton Vance Monthly Market Monitor October 2013 (Data As of September 30, 2013)

Product & Portfolio Strategy Group Eaton Vance Monthly Market Monitor October 2013 (data as of September 30, 2013)

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 5

Inflation Watch 11

Income Markets 13

Equity Markets 22

Alternative Markets 34

Flows Monitor 40

Additional Information 41

2 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

Economic Review Income Markets 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 U.S. Housing and Unemployment 10 Municipal Bond Market Update 18 Emerging Markets Bond Market Update 19 Inflation Watch Fixed Income Asset Class Return Analysis (tabular) 20 Global Inflation 11 Fixed Income Asset Class Return Analysis (chart) 21 Central Bank Target Rates 12

3 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

Equity Markets Flows Monitor Equity Performance and Volatility Analysis 22 Fund Flows by Category 40 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 Developed Market Currency Performance & Interest Rates 34 Emerging Market Currency Performance & Interest Rates 35 Local Sovereign Interest Rates 37 Commodities Return Analysis 38

4 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

Developed Markets Real GDP Growth Emerging Markets Real GDP Growth % Change YOY % Change YOY

8% 16% 14% 6% 12%

4% 10%

8% 2% 6%

0% 4%

2% -2% 0%

-4% -2%

-4% -6% -6%

-8% -8% '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12

Developed Markets Avg. United States Emerging Markets Avg. Brazil United Kingdom Japan Russia India Eurozone China

Source: International Monetary Fund and Bureau of Economic Analysis as of 9/30/13 Source: International Monetary Fund as of 9/30/13

5 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

U.S. Yields

U.S. Treasury Yields 10-Year U.S. Treasury Yield

6% 18%

16% 5% 14%

4% 12%

10% 3% 8%

2% 6%

4% 1% 2%

0% 0% 3M 2Y 5Y 10Y 30Y '53 '56 '59 '62 '65 '68 '71 '74 '77 '80 '83 '86 '89 '92 '95 '98 '01 '04 '07 '10 '13

Sep-13 Aug-13 Dec-12 Dec-10 Dec-08 Dec-06 Source: Bloomberg as of 9/30/13 Source: Federal Reserve as of 9/30/13

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 Economic Review

Global Government Bond Yields

10-Year Government Bond Yields 10-Year Government Bond Yields

Greece 9.7% 35% Portugal 6.7% New Zealand 4.6% Italy 4.6% 30% Spain 4.3% Australia 3.9% Ireland 3.9% 25% Norway 2.8% United Kingdom 2.7% United States 2.6% 20% Belgium 2.6% Canada 2.6% 15% Sweden 2.5% France 2.3% Austria 2.2% 10% Netherlands 2.2% Finland 2.0% Denmark 2.0% 5% Germany 1.8% Switzerland 1.0% Japan 0.7% 0% 0% 5% 10% 15% 20% 25% 30% '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13

Germany United Kingdom Japan Greece Source: Thomson Reuters as of 9/30/13 Source: Bloomberg as of 9/30/13

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 Economic Review

U.S. Federal and Personal Finances

U.S. Federal Budget and Debt (% of GDP) U.S. Personal Savings Rate and Household Debt Service Ratio (% of disposable annual income) 10% 140% 16% Budget Surplus / Deficit Federal Debt

5% 14% 120%

0% 12% 100% -5% 10% -10% 80% 8%

-15% 60% 6% -20% 40% 4% -25%

20% -30% 2%

-35% 0% 0% '41 '49 '57 '65 '73 '81 '89 '97 '05 est. '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '13 Personal Savings Rate Household Debt Service Ratio Source: White House Office of Management and Budget as of 9/30/13 Source: Federal Reserve as of 9/30/13

8 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

U.S. Corporate Finances

S&P 500 Earnings and Revenues Per Share $1,200 $120

Revenues per Share Earnings per Share $1,100 $100

$1,000 $80

$900

$60

$800

$40 $700

$20 $600

$500 $0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 est. '13

Source: Baseline as of 9/30/13

9 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

U.S. Housing and Unemployment

U.S. Median Existing Home Prices U.S. Unemployment and Jobs

$250 14% 142,000

Unemployment Rate Total Jobs 140,000 $230 12% 138,000 $210

10% 136,000 $190

134,000 Thousands 8% $170 132,000 Thousands

$150 6% 130,000

$130 4% 128,000

$110 126,000 2% $90 124,000

$70 0% 122,000 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12

Source: Standard & Poor’s as of 9/30/13 Source: U.S. Bureau of Labor Statistics as of 9/30/13

10 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

Global Inflation

Developed Markets Inflation Emerging 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 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 Developed Markets Avg. Eurozone Emerging Markets Avg. Brazil Japan United Kingdom Russia India United States China Source: International Monetary Fund, U.S. Bureau of Labor Statistics as of 9/30/13 Source: International Monetary Fund as of 9/30/13

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 Inflation Watch

Central Bank Target Rates

Bank of England Bank of Japan

18% 18% 16% 16% 14% 14% 12% 12% 10% 10% 8% 8% 6% 6% 4% 4% 2% 2% 0% 0% '73 '75 '77 '79 '81 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '73 '75 '77 '79 '81 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13

Source: Bank of England as of 9/30/13 Source: Bank of Japan as of 9/30/13

European Central Bank U.S. Federal Reserve Bank

18% 18% 16% 16% 14% 14% 12% 12% 10% 10% 8% 8% 6% 6% 4% 4% 2% 2% 0% 0% '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13

Source: European Central Bank as of 9/30/13 Source: Federal Reserve as of 9/30/13

12 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 Characteristics and Performance Analysis

Averages Total Returns (%) Coupon Price Yield Maturity Duration Index 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y (%) ($) (%) (yrs.) (yrs.) Barclays Capital U.S. Aggregate Index 3.36 104.2 2.34 7.5 5.5 0.95 0.57 -1.89 -1.68 2.86 5.41 4.59 U.S. Treasury 2.07 102.8 1.24 6.2 5.1 0.70 0.10 -2.01 -2.09 2.24 4.03 4.25 U.S. Agency 2.28 103.5 1.24 4.6 3.7 0.72 0.28 -1.22 -1.09 1.56 3.57 3.82 U.S. Mortgage Backed Securities 3.95 104.2 3.07 7.4 5.4 1.41 1.03 -1.00 -1.20 2.65 4.66 4.75 U.S. Asset Backed Securities 1.95 101.9 1.26 2.9 2.6 0.56 0.16 -0.59 -0.38 2.20 5.91 3.49 U.S. Commercial Mortgage Backed Securities 4.93 106.4 2.24 3.6 3.2 0.92 1.02 -0.30 0.91 5.36 9.16 5.27 U.S. Investment Grade Corporate 4.69 106.3 3.30 10.2 6.8 0.69 0.82 -2.62 -1.58 4.40 9.24 5.27 U.S. Aggregate Local Authorities 5.03 108.0 3.96 17.1 8.9 0.53 -0.79 -5.31 -3.96 5.32 6.52 5.67 Barclays Capital Municipal Bond Index 4.87 102.2 3.08 13.4 8.3 2.15 -0.19 -2.87 -2.21 3.24 5.98 4.40 BofAML US Inflation-Linked Treasury Index 1.32 108.5 0.05 9.3 8.4 1.49 0.64 -7.35 -6.63 3.97 5.29 5.24 BofAML Preferred Index (Fixed Rate) 6.51 96.2 5.86 - 8.5 -0.65 -4.07 -3.72 -3.05 4.36 11.26 1.94 Barclays Capital U.S. Corporate High Yield Index 7.43 101.8 6.23 6.6 4.3 0.99 2.28 3.73 7.14 9.19 13.53 8.86 S&P / LSTA Leveraged Loan Index - 98.2 5.12 - 0.1 0.24 1.20 3.53 5.00 5.95 8.20 5.32 JPMorgan Emerging Markets Bond Index Plus (EMBI+) 7.25 106.6 5.43 - 7.4 2.90 0.51 -8.89 -5.94 4.69 9.51 8.74 JPMorgan Corporate Emerging Markets 5.44 99.4 5.29 - 5.9 1.89 1.16 -3.59 -0.66 - - - Bond Index (CEMBI) Diversified JPMorgan Government Bond Index-Emerging Markets 6.86 - 6.58 - 4.7 4.40 -0.43 -7.56 -3.74 1.84 7.28 10.05 (GBI-EM) Global Diversified Barclays Capital Global Aggregate Ex-U.S. Index 3.11 107.0 1.80 8.3 6.7 2.82 4.38 -2.38 -3.39 1.52 4.80 5.12 BofAML U.K. Gilts Index 4.02 112.3 2.31 14.4 9.8 5.53 7.31 -3.19 -2.85 5.47 4.51 5.24 BofAML European Union Government Bond Index 3.77 109.1 2.19 9.5 7.1 3.81 5.58 2.08 6.52 3.83 4.63 5.88

Source: Barclays Capital, JPMorgan, BofA Merrill Lynch and Standard & Poor’s as of 9/30/13

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)

300 240% 1800 2500 276 1581 High 220% 1600 250 209% 1971 Current 1400 2000 200% 1717 221 1699 Avg 219 200 1200 180% 1018 1500 1000 Low 150 160% 800 Cheap 618 1000 140% 600 865 Rich 100 563 120% 400 500 492 112% 192 247 224 50 200 180 145 173 483 461 100% 141 296 350 101 35 57 64 141 108 153 324 0 21 43 76 210 234 0 53 35 149 233 0 80% 9 -13 0 4 84% Preferred-3 Floating- Emerging High 10Y TIPS 30Y Muni -200 Agency MBS ABS CMBS Corporate Taxable Rate Markets Yield Break- Ratio Loans (USD) even Muni/BABs

Emerging 10Y TIPS Muni Taxable Floating- Agency MBS ABS CMBS Corporate Preferred Markets High Yield Break-Even Ratio (%) Muni/BABs Rate Loans (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 12/08/04 3/11/05 12/28/04 3/8/06 3/31/06 6/1/07 5/23/07 Spread on 12/31/12 245 96 13 50 43 124 141 140 242 529 248 511 Spread on 12/31/11 196 123 33 75 99 308 234 189 315 633 377 699 Spread on 12/31/10 230 108 20 42 82 254 156 168 193 512 248 526

Source: Barclays Capital, JPMorgan, BofA Merrill Lynch, Standard & Poor’s and U.S. Dept. of the Treasury as of 9/30/13. Spread history measures past 10 years.

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 Capital U.S. Agency Index. MBS represented by Barclays Capital U.S. Mortgage Backed Securities (MBS) Index. ABS represented by Barclays Capital U.S. Asset Backed Securities (ABS) Index. CMBS represented by Barclays Capital U.S. CMBS Investment Grade Index. Corporate 14 represented by Barclays Capital U.S. Corporate Index. Taxable Muni/BABs represented by Barclays Capital 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 Capital U.S. Corporate High Yield Index. Eaton Vance Monthly Market Monitor Income Markets

Investment Grade Corporate Bond Market Update

Spreads and Prices Spreads and Prices

700 $125 Avg. Avg. 600 Spread Price (bps) ($) 500

$100 Current 141 106.3 400 bps Spread Price Average 173 105.1 300 $75 Median 143 106.3 200 High 618 115.4 100 Low 76 83.7 0 $50 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13

Source: Barclays Capital as of 9/30/13 Source: Barclays Capital as of 9/30/13

Averages Total Returns (%) Coupon Price Yield to Worst Spread Maturity Duration 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y (%) ($) (%) (bps) (yrs.) (yrs.) Barclays U.S. Corp Index 4.69 106.3 3.30 141 10.2 6.8 0.69 0.82 -2.62 -1.58 4.40 9.24 5.27 AAA Index 4.07 105.9 2.93 73 15.4 8.8 0.31 -0.11 -4.66 -5.33 2.59 5.98 3.99 AA Index 3.17 103.3 2.38 78 8.7 6.1 0.69 0.48 -2.68 -2.52 2.93 7.19 4.31 A Index 4.49 107.0 2.96 116 9.8 6.7 0.73 0.89 -2.69 -1.98 4.05 9.07 4.74 BBB Index 5.25 106.2 3.86 184 10.8 7.1 0.66 0.83 -2.48 -0.86 5.26 10.02 6.00 Source: Barclays Capital and Morningstar as of 9/30/13

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

Spreads and Prices Annual Default Rate 2000 $125 15% Price

1500

$100 10%

bps 1000

$75 5% 500

Spread 0 $50 0% '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '83 '86 '89 '92 '95 '98 '01 '04 '07 '10 '13 Avg. Spread Avg. Price (bps) ($) Default Rate Current 461 101.8 Current 1.1% Average 563 96.2 Average 3.7% Median 484 99.1 Median 2.8% High 1971 107.4 High 11.5% Low 233 55.1 Low 0.4% Source: Barclays Capital as of 9/30/13 Source: JPMorgan as of 9/30/13 Averages Total Returns (%) Coupon Price Yield to Worst Spread Maturity Duration 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y (%) ($) (%) (bps) (yrs.) (yrs.) Barclays U.S. Corp 7.43 101.8 6.23 461 6.6 4.3 0.99 2.28 3.73 7.14 9.19 13.53 8.86 High Yield Index BB Index 6.41 103.0 5.03 332 7.2 4.9 1.00 1.77 1.84 4.69 8.25 12.68 8.55 B Index 7.62 103.5 5.98 446 6.4 4.0 0.99 2.33 3.55 7.28 9.18 11.36 7.78 CCC Index 8.96 100.3 8.22 664 6.2 3.7 1.25 3.67 9.15 12.77 11.43 13.63 8.97 Below CCC Index 9.99 45.3 36.03 3,239 4.9 3.1 -4.27 -5.15 -4.70 1.94 5.77 25.24 10.08 Source: Barclays Capital and Morningstar as of 9/30/13

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

Spreads and Prices Annual Default Rate

2000 $125 12% Price 10% 1500

$100 8%

bps 1000 6% Spread $75 4% 500 2%

0 $50 0% '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 Avg. Spread Avg. Price (bps) ($) Default Rate Current 483 98.2 Current 2.4% Average 492 94.5 Average 2.4% Median 479 97.0 Median 1.4% High 1699 101.0 High 10.8% Low 234 62.0 Low 0.2% Source: Standard & Poor’s and LCD as of 9/30/13 Source: Standard & Poor’s and LCD as of 9/30/13 Averages Total Returns (%) Nominal Secondary Price Yield Life Duration Spread Spread 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y ($) (%) (yrs.) (yrs.) (bps) (bps) S&P/LSTA Leveraged Loan 98.2 5.12 439 507 5.01 0.1 0.24 1.20 3.53 5.00 5.95 8.20 5.32 Index BBB 100.0 4.03 301 302 4.71 - 0.12 0.94 1.87 2.95 3.95 5.29 4.11 BB 99.8 4.03 371 376 5.11 - 0.14 1.10 2.51 3.97 4.98 5.91 4.19 B 99.3 5.21 474 503 5.07 - 0.26 1.39 3.87 4.90 6.83 8.85 5.41 CCC 83.2 12.34 612 1407 4.34 - 0.47 0.54 7.06 9.57 8.37 12.85 7.25 Source: Standard & Poor’s as of 9/30/13

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

AAA Municipal Yields (%) Credit Quality Spreads vs. AAA AAA Muni-to-Treasury Yield Ratios (%)

400 8% 5Y 250% AA 10Y 5Y 300 A 6% 30Y 200% BBB 10Y bps 4% 200 150% 30Y

2% 100 100%

0% 0 50% '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13

5Y 10Y 30Y AA A BBB 5Y 10Y 30Y Current 1.32 2.54 4.12 Current 22 75 149 Current 95 97 112 Average 2.27 3.14 4.22 Average 16 63 134 Average 88 92 101 Median 2.38 3.40 4.36 Median 13 62 132 Median 81 87 98 High 3.97 4.86 5.94 High 32 160 354 High 220 187 209 Low 0.62 1.47 2.47 Low 8 21 32 Low 59 75 84 Source: Barclays Capital as of 9/30/13 Source: Barclays Capital as of 9/30/13 Source: Barclays Capital as of 9/30/13 Averages Total Returns (%) Coupon Price Yield To Worst Maturity Duration 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y (%) ($) (%) (yrs.) (yrs.) Barclays Capital Municipal Bond Index 4.87 102.2 3.08 13.4 8.3 2.15 -0.19 -2.87 -2.21 3.24 5.98 4.40 Barclays Capital 5-Year Municipal Bond Index 4.88 112.6 1.71 5.0 3.9 0.96 0.87 -0.03 -0.24 2.71 4.90 3.85 Barclays Capital 10-Year Municipal Bond Index 4.85 108.9 2.84 9.9 6.7 2.38 0.72 -2.07 -1.30 3.85 6.42 4.80 Barclays Capital 22+ Year Municipal Bond Index 5.02 90.0 4.78 26.7 14.3 3.24 -2.14 -6.13 -5.06 3.58 7.24 4.83 Barclays Capital High Yield Municipal Bond Index 5.58 48.9 6.60 19.8 10.4 3.30 -2.96 -5.08 -1.54 5.59 6.66 5.63 Source: Barclays Capital as of 9/30/13

18 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

Emerging Markets Bond Market Update

Sovereign EMD Spreads (USD) Corporate EMD Spreads (USD) Local EMD Yields (%)

1300 1300 12%

10% 900 900

8% bps bps 500 500 6%

100 100 4% '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13

Avg. Spread Avg. Spread Avg. Yield (bps) (bps) (%) Current 350 Current 361 Current 6.58 Average 324 Average 338 Average 6.90 Median 296 Median 308 Median 6.88 High 865 High 1085 High 9.72 Low 149 Low 149 Low 5.16 Source: JPMorgan as of 9/30/13 Source: JPMorgan as of 9/30/13 Source: JPMorgan as of 9/30/13

Averages Total Returns (%) Coupon Price Yield Duration 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y (%) ($) (%) (yrs.) JPMorgan Emerging Markets 7.25 106.6 5.43 7.4 2.90 0.51 -8.89 -5.94 4.69 9.51 8.74 Bond Index Plus (EMBI+) JPMorgan Corporate Emerging Markets 5.44 99.4 5.29 5.9 1.89 1.16 -3.59 -0.66 - - - Bond Index (CEMBI) Diversified

JPMorgan Government Bond Index-Emerging 6.86 - 6.58 4.7 4.40 -0.43 -7.56 -3.74 1.84 7.28 10.05 Markets (GBI-EM) Global Diversified Source: Morningstar and JPMorgan as of 9/30/13

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. Eaton Vance Monthly Market Monitor Income Markets

Fixed Income Asset Class Return Analysis (%)

Index 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y 2012 2011 2010 2009 2008

Barclays Capital U.S. Aggregate Index 0.95 0.57 -1.89 -1.68 2.86 5.41 4.59 4.21 7.84 6.54 5.93 5.24 U.S. Treasury 0.70 0.10 -2.01 -2.09 2.24 4.03 4.25 1.99 9.81 5.87 -3.57 13.74 U.S. Agency 0.72 0.28 -1.22 -1.09 1.56 3.57 3.82 2.16 4.82 4.36 1.53 9.26 U.S. Mortgage Backed Securities 1.41 1.03 -1.00 -1.20 2.65 4.66 4.75 2.59 6.23 5.37 5.89 8.34 U.S. Asset Backed Securities 0.56 0.16 -0.59 -0.38 2.20 5.91 3.49 3.66 5.14 5.85 24.71 -12.72 U.S. Commercial Mortgage Backed Securities 0.92 1.02 -0.30 0.91 5.36 9.16 5.27 9.66 6.02 20.40 28.45 -20.52 U.S. Investment Grade Corporate 0.69 0.82 -2.62 -1.58 4.40 9.24 5.27 9.82 8.15 9.00 18.68 -4.94 U.S. Aggregate Local Authorities 0.53 -0.79 -5.31 -3.96 5.32 6.52 5.67 9.61 18.10 7.22 0.72 6.97 Barclays Capital Municipal Bond Index 2.15 -0.19 -2.87 -2.21 3.24 5.98 4.40 6.78 10.70 2.38 12.91 -2.47 BofAML US Inflation-Linked Treasury Index 1.49 0.64 -7.35 -6.63 3.97 5.29 5.24 7.33 14.10 6.34 10.03 -1.13 BofAML Preferred Index (Fixed Rate) -0.65 -4.07 -3.72 -3.05 4.36 11.26 1.94 13.60 4.11 13.66 20.07 -25.24 Barclays Capital U.S. Corporate High Yield Index 0.99 2.28 3.73 7.14 9.19 13.53 8.86 15.81 4.98 15.12 58.21 -26.16 S&P / LSTA Leveraged Loan Index 0.24 1.20 3.53 5.00 5.95 8.20 5.32 9.66 1.52 10.13 51.62 -29.10 JPMorgan Emerging Markets Bond 2.90 0.51 -8.89 -5.94 4.69 9.51 8.74 18.04 9.20 11.83 25.95 -9.70 Index Plus (EMBI+) JPMorgan Corporate Emerging Markets 1.89 1.16 -3.59 -0.66 - - - 16.95 3.24 13.50 38.61 -15.36 Bond Index (CEMBI) Diversified JPMorgan Government Bond Index-Emerging 4.40 -0.43 -7.56 -3.74 1.84 7.28 10.05 16.76 -1.75 15.68 21.98 -5.22 Markets (GBI-EM) Global Diversified Barclays Capital Global Aggregate Ex-U.S. Index 2.82 4.38 -2.38 -3.39 1.52 4.80 5.12 4.09 4.36 4.95 7.53 4.40 BofAML U.K. Gilts Index 5.53 7.31 -3.19 -2.85 5.47 4.51 5.24 7.54 16.04 4.32 10.90 -18.35 BofAML European Union Government Bond Index 3.81 5.58 2.08 6.52 3.83 4.63 5.88 11.62 3.12 -3.55 8.07 0.43

Source: Morningstar as of 9/30/13

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 (%)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD 9/13 Higher EM (Local EM (Local EM (Local EM (Local EM (Local EM (Local High Yield Treasury High Yield Municipal High Yield Currency) Currency) Currency) Currency) Currency) Currency) 28.97 13.74 58.21 10.70 3.73 22.97 6.27 15.22 18.11 15.68 16.76 Global Agg Global Agg Global Agg Bank Loan High Yield MBS Bank Loan High Yield Treasury High Yield Bank Loan Ex-U.S. Ex-U.S. Ex-U.S. 5.06 11.85 8.34 51.62 15.12 9.81 15.81 3.53 19.36 12.55 11.03 EM (Local Global Agg Global Agg EM (Local Investment Investment High Yield Municipal Treasury Bank Loan MBS Currency) Ex-U.S. Ex-U.S. Currency) Grade Grade 11.13 3.51 9.01 10.13 -1.00 16.92 8.16 4.40 21.98 8.15 9.82 Investment Investment Investment Bank Loan Treasury Bank Loan MBS Municipal MBS Bank Loan Treasury Grade Grade Grade 9.97 2.79 6.74 6.90 -2.47 6.23 9.66 -2.01 5.39 18.68 9.00 Investment Investment Investment Global Agg Bank Loan High Yield MBS Municipal Treasury High Yield Municipal Grade Grade Grade Ex-U.S. 5.17 2.74 5.22 12.91 5.87 4.98 6.78 8.24 4.56 -4.94 -2.38 EM (Local Global Agg Global Agg Global Agg Investment Municipal MBS MBS Municipal Municipal MBS Currency) Ex-U.S. Ex-U.S. Ex-U.S. Grade 5.31 4.70 2.61 4.84 3.36 5.37 -5.22 7.53 4.36 4.09 -2.62 Investment Investment Global Agg MBS Municipal Bank Loan High Yield MBS Bank Loan MBS Municipal Grade Grade Ex-U.S. 3.07 4.48 2.08 -26.16 5.89 1.52 2.59 -2.87 1.68 4.30 4.95 Global Agg EM (Local EM (Local Treasury Treasury Treasury High Yield Bank Loan Treasury Municipal Treasury Ex-U.S. Currency) Currency) 2.24 3.54 3.08 1.87 -29.10 -3.57 2.38 1.99 Lower -8.65 -1.75 -7.56

Source: Morningstar as of 9/30/13

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 Capital U.S. Corporate Index. MBS represented by Barclays Capital U.S. Mortgage Backed Securities (MBS) Index. Treasury represented by Barclays Capital U.S. Treasury Index. High Yield represented by Barclays Capital U.S. Corporate 21 High Yield Index. Municipal represented by Barclays Capital Municipal Bond Index. Bank Loan represented by S&P/LSTA Leveraged Loan Index. Global Agg Ex-U.S. represented by Barclays Capital 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

Large Cap vs. Small Cap Value vs. Growth

10.0% 15.0% 5.0% 10.0% 5.0% 0.0% 0.0% -5.0% -5.0% -10.0% -10.0% -15.0% -15.0%

Mo Mo Rolling Excess Returns -20.0% Mo Rolling ExcessReturns -20.0%

12 - 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 12 - 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 Russell 1000 Russell 1000 Value Source: FactSet, Zephyr and Morningstar as of 9/30/13 Source: FactSet, Zephyr and Morningstar as of 9/30/13 Russell 2000 Russell 1000 Growth

Correlation of S&P 500 Stocks CBOE Market Volatility Index (VIX) 1.00 70

0.80 60 50 0.60 40 0.40 30 20 0.20 10 0.00 0 9/89 9/93 9/97 9/01 9/05 9/09 9/13 9/08 9/09 9/10 9/11 9/12 9/13

Source: BA540, Ned Davis Research as of 9/30/13* S&P 500 Stocks Correlation Source: FactSet, Zephyr and Morningstar as of 9/30/13 VIX Average Average

*Copyright 2013 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. Eaton Vance Monthly Market Monitor Equity Markets

Dividend Yields

Historical Yields Current Yields

6.0% 3.5% 3.08 5.0% 3.0% 2.74 2.55 2.61 2.5% 4.0% 2.03 2.0% 3.0% 1.5%

2.0% 1.0%

1.0% 0.5%

0.0% 0.0% 9/08 2/09 7/09 12/09 5/10 10/10 3/11 8/11 1/12 6/12 11/12 4/13 9/13 S&P 500 MSCI World 10 Yr Treasury MSCI EM MSCI EAFE S&P 500 MSCI EM MSCI EAFE MSCI World

Source: FactSet, Zephyr and Morningstar as of 9/30/13 Source: FactSet, Zephyr and Morningstar as of 9/30/13

23 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

S&P 500 Forward P/E MSCI World Forward P/E 22x 22x 19x 19x 16x 16x 13x 13x 10x 10x 7x 7x 4x 4x 9/03 9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/03 9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 S&P 500 Forward P/E MSCI World Forward P/E Average Source: FactSet, Zephyr and Morningstar as of 9/30/13 Source: FactSet, Zephyr and Morningstar as of 9/30/13 Average

MSCI EM Forward P/E MSCI EAFE Forward P/E 22x 22x 19x 19x 16x 16x 13x 13x 10x 10x 7x 7x 4x 4x 9/03 9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/03 9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13

MSCI EM Forward P/E MSCI EAFE Forward P/E Source: FactSet, Zephyr and Morningstar as of 9/30/13 Average Source: FactSet, Zephyr and Morningstar as of 9/30/13 Average

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 Equity Markets

Valuation Analysis

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

45.00

40.00

35.00

30.00

25.00 Average Current 20.00

15.00 Current P/E MSCI World 10.00

5.00

0.00 SP500 R2000 R1000G R1000V MSCI World MSCI EAFE MSCI EM MSCI Europe MSCI Japan MSCI AC Asia Pac

MSCI AC SP500 R2000 R1000G R1000V MSCI World MSCI EAFE MSCI EM MSCI Europe MSCI Japan Asia Pac Average 14.02 19.75 16.33 12.69 13.42 12.71 11.07 11.69 17.06 14.36 High 18.07 28.26 21.53 15.64 16.54 15.29 15.17 14.05 41.17 21.40 Low 10.58 14.33 11.10 9.53 9.80 8.85 7.48 8.20 11.08 10.09 Current 14.20 21.02 16.93 12.80 13.89 13.25 10.38 12.75 14.43 12.71 Source: Factset as of 9/30/13

25 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

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

45.00

40.00

35.00

30.00

25.00 Average Current 20.00

15.00 Current P/E S&P 500 10.00

5.00

0.00 Consumer Consumer Energy Financials Health Care Industrials Information Materials Telecom Utilities Discretionary Staples Technology Consumer Consumer Information Energy Financials Health Care Industrials Materials Telecom Utilities Discretionary Staples Technology Average 16.68 15.95 11.77 11.87 14.22 14.99 17.00 14.79 15.00 13.92 High 29.55 20.23 17.19 17.44 19.13 20.22 29.37 25.68 19.28 16.76 Low 12.35 11.36 7.86 8.54 9.65 8.91 11.24 9.28 9.91 10.05 Current 17.32 16.13 12.27 11.89 15.59 14.95 13.69 15.32 13.76 14.94 Source: Factset as of 9/30/13

26 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

Trailing 12 Month P/E Market Cap 16.0% 16.0%

12.0% 12.0%

8.0% 8.0% 4.6 4.0 3.7 3.90 4.07 3.97 4.0% 3.1 3.0 4.0% 3.1 2.53 1.3 0.0% 0.0% S&P 500 25.0+ 17.7 - 24.9 12.7 - 17.7 8.6 - 12.7 <8.6 S&P 500 $50B+ $10B - $50B $5B - $10B $0 - $5B

Source: FactSet, Zephyr and Morningstar as of 9/30/13 Source: FactSet, Zephyr and Morningstar as of 9/30/13

S&P 500 Quality Ranking Dividend Yield

16.0% 15.2 16.0%

12.0% 12.0%

8.0% 8.0% 5.1 4.9 3.9 3.7 4.0% 3.1 2.9 3.2 2.8 4.0% 3.1 3.1 1.9 1.6 1.4 0.0% 0.0% S&P 500 A+ A A- B+ B B- C S&P 500 3.5+ 2.4 - 3.5 1.6 - 2.4 0.6 - 1.6 0.0 - 0.6

Source: FactSet, Zephyr and Morningstar as of 9/30/13 Source: FactSet, Zephyr and Morningstar as of 9/30/13

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 Equity Markets

S&P 500 Index – YTD Return Analysis

Trailing 12 Month P/E Market Cap

60.0% 60.0%

50.0% 50.0%

40.0% 40.0% 31.47 30.0% 30.0% 23.6 23.02 19.8 20.7 24.38 20.0% 18.2 20.1 19.8 16.49 14.2 20.0% 10.0% 10.0%

0.0% 0.0% S&P 500 25.5+ 17.6 - 25.5 13.2 - 17.6 9.7 - 13.2 <13.2 S&P 500 $50B+ $10B - $50B $5B - $10B $0 - $5B

Source: FactSet, Zephyr and Morningstar as of 9/30/13 Source: FactSet, Zephyr and Morningstar as of 9/30/13

S&P 500 Quality Ranking Dividend Yield 60.0% 55.4 60.0% 50.0% 50.0% 40.0% 40.0% 30.0% 25.6 23.8 28.4 20.1 30.0% 19.8 21.6 18.4 20.6 20.0% 17.2 19.8 14.0 20.0% 15.9 16.5 10.0% 10.0% 0.0% 0.0% S&P 500 A+ A A- B+ B B- C S&P 500 3.5+ 2.4 - 3.5 1.6 - 2.4 0.6 - 1.6 0.0 - 0.6

Source: FactSet, Zephyr and Morningstar as of 9/30/13 Source: FactSet, Zephyr and Morningstar as of 9/30/13

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 Equity Markets

S&P 500 Index Sectors: 1-Month & YTD Return Analysis

Sectors – 1-Month Sectors – YTD

S&P 500 3.1 S&P 500 19.8

Industrials 5.7 Consumer Discretionary 29.1

Consumer Discretionary 5.4 Health Care 28.4

Materials 4.4 Industrials 23.9

Health Care 3.2 Financials 22.9

Information Technology 2.9 Consumer Staples 16.1

Financials 2.8 Energy 15.4

Energy 1.8 Materials 13.7

Consumer Staples 1.3 Information Technology 13.5

Utilities 1.1 Utilities 10.1

Telecommunication Services -0.5 Telecommunication Services 5.7

-5% 0% 5% 10% 15% 20% 25% 30% 35% -5% 0% 5% 10% 15% 20% 25% 30% 35%

Source: FactSet, Zephyr and Morningstar as of 9/30/13 Source: FactSet, Zephyr and Morningstar as of 9/30/13

29 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

MSCI World Index Sectors: 1-Month & YTD Return Analysis

Sectors – 1-Month Sectors – YTD

MSCI World 5.0 MSCI World 17.3

Industrials 7.3 Consumer Discretionary 28.8

Consumer Discretionary 6.9 Health Care 25.1

Telecommunication Services 6.3 Industrials 21.1

Materials 5.8 Telecommunication Services 19.6

Financials 5.5 Financials 18.1

Utilities 4.6 Information Technology 15.0

Information Technology 4.4 Consumer Staples 14.4

Health Care 3.6 Energy 10.5

Consumer Staples 3.2 Utilities 10.5

Energy 2.6 Materials -0.9

-5% 0% 5% 10% 15% 20% 25% 30% 35% -5% 0% 5% 10% 15% 20% 25% 30% 35%

Source: FactSet, Zephyr and Morningstar as of 9/30/13 Source: FactSet, Zephyr and Morningstar as of 9/30/13

30 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

Global Equity: Characteristics & Sector Weights

S&P 500 Index MSCI World Index Current 3 Mo. Ago 1 Yr Ago 5-Yr Avg. Current 3 Mo. Ago 1 Yr Ago 5-Yr Avg. Index Characteristics Index Characteristics Weighted Avg. Market Cap $106.7B $105.5B $121.3B $91.1B Weighted Avg. Market Cap $82.6B $80.0B $86.4B $69.4B

Median Market Cap $15.3B $14.7B $12.5B $10.6B Median Market Cap $10.4B $9.4B $8.4B $7.7B

Dividend Yield 2.03 2.05 2.06 2.25 Dividend Yield 2.55 2.65 2.82 2.81

P/E NTM 14.2 14.1 13.9 13.8 P/E NTM 13.9 13.7 13.6 13.4

P/B 2.48 2.37 2.17 2.12 P/B 2.01 1.91 1.71 1.73 Sector Weights Sector Weights Consumer Discretionary 12.48 12.21 10.92 10.19 Consumer Discretionary 12.25 11.96 10.65 9.95

Consumer Staples 10.05 10.49 10.86 11.29 Consumer Staples 10.13 10.62 10.89 10.38

Energy 10.47 10.53 11.30 11.79 Energy 9.62 9.75 10.86 11.10

Financials 16.26 16.66 14.72 15.02 Financials 20.90 20.82 19.19 20.07

Health Care 13.01 12.72 12.00 12.42 Health Care 11.16 11.33 10.71 10.30

Industrials 10.73 10.13 9.76 10.68 Industrials 11.34 11.00 10.64 10.98

Information Technology 17.90 17.80 20.12 18.53 Information Technology 11.74 11.70 12.57 11.56

Materials 3.52 3.30 3.53 3.47 Materials 5.82 5.61 6.84 7.06

Telecom Services 2.42 2.84 3.28 3.00 Telecom Services 3.75 3.80 4.10 4.35

Utilities 3.16 3.31 3.51 3.60 Utilities 3.29 3.41 3.55 4.22

Source: FactSet, Zephyr and Morningstar as of 9/30/13 Source: FactSet, Zephyr and Morningstar as of 9/30/13

31 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 (%)

U.S. Equities 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y 2012 2011 2010 2009 2008 S&P 500 3.14 5.24 19.79 19.34 16.27 10.02 7.57 16.00 2.11 15.06 26.46 -37.00 S&P 500 High Quality 3.34 5.58 21.06 22.66 17.69 12.47 7.82 15.18 6.59 22.14 25.52 -32.84 S&P 500 Low Quality 5.60 7.89 28.99 34.52 18.71 14.74 11.18 21.12 -6.83 23.54 64.85 -46.11 Russell 2500 5.73 9.08 25.89 29.79 18.44 12.68 10.38 17.88 -2.51 26.71 34.39 -36.79 Russell 1000 Growth 4.46 8.11 20.87 19.27 16.94 12.07 7.82 15.26 2.64 16.71 37.21 -38.44 Russell 1000 Value 2.51 3.94 20.47 22.30 16.25 8.86 7.99 17.51 0.39 15.51 19.69 -36.85 Russell Mid Cap 4.58 7.70 24.34 27.91 17.53 12.97 10.78 17.28 -1.55 25.48 40.48 -41.46 Russell 2000 6.38 10.21 27.69 30.06 18.29 11.15 9.64 16.35 -4.18 26.85 27.17 -33.79 CBOE S&P 500 Buywrite BXM 0.79 0.82 5.72 3.09 7.52 4.35 5.09 5.20 5.72 5.86 25.91 -28.65 Global Equities 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y 2012 2011 2010 2009 2008 MSCI World 5.00 8.18 17.29 20.21 11.82 7.84 7.58 15.83 -5.54 11.76 29.99 -40.71 MSCI EAFE 7.39 11.56 16.14 23.77 8.47 6.35 8.01 17.32 -12.14 7.75 31.78 -43.38 MSCI EM 6.50 5.77 -4.35 0.98 -0.33 7.22 12.80 18.22 -18.42 18.88 78.51 -53.33 MSCI AC Asia Pac 6.91 7.05 9.47 15.93 5.85 7.96 8.14 16.78 -15.11 17.02 37.59 -41.85 MSCI ACWI 5.17 7.90 14.43 17.73 10.21 7.71 7.86 16.13 -7.35 12.67 34.63 -42.19 MSCI Europe 7.19 13.61 16.09 24.23 8.73 6.03 8.47 19.12 -11.06 3.88 35.83 -46.42 FTSE 100 5.61 12.02 12.49 17.08 10.09 7.64 8.25 15.03 -2.90 9.19 43.01 -48.23 FTSE All Small 7.75 18.38 25.08 34.79 16.29 13.19 9.07 33.05 -13.14 16.11 76.99 -59.10 STOXX Europe 600 7.30 13.92 16.91 25.22 9.12 6.40 8.78 20.02 -11.56 4.36 36.65 -46.54 Nikkei 225 Average 7.96 7.00 22.54 29.21 9.52 6.79 4.88 9.40 -12.86 11.33 15.91 -28.67 Sectors 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y 2012 2011 2010 2009 2008 S&P 500 Cons Disc 5.44 7.79 29.12 31.84 24.13 18.77 9.79 23.92 6.13 27.66 41.30 -33.49 S&P 500 Cons Staples 1.33 0.80 16.08 14.05 15.86 10.87 9.89 10.76 13.99 14.11 14.89 -15.43 S&P 500 Energy 1.77 5.15 15.42 12.25 15.38 6.60 14.15 4.61 4.72 20.46 13.82 -34.87 S&P 500 Financials 2.76 2.87 22.93 30.20 13.58 1.72 -0.12 28.82 -17.06 12.13 17.22 -55.32 S&P 500 Health Care 3.16 6.82 28.45 28.55 20.95 13.07 8.18 17.89 12.73 2.90 19.70 -22.81 S&P 500 Industrials 5.68 8.91 23.92 28.50 16.69 10.62 8.71 15.35 -0.59 26.73 20.93 -39.92 S&P 500 Info Tech 2.88 6.62 13.39 6.91 13.70 12.03 7.13 14.82 2.41 10.19 61.72 -43.14 S&P 500 Materials 4.43 10.30 13.50 16.55 11.92 8.16 9.41 14.97 -9.75 22.20 48.59 -45.66 S&P 500 Telecom Services -0.47 -4.40 5.69 -0.68 12.56 11.17 8.93 18.31 6.27 18.97 8.93 -30.49 S&P 500 Utilities 1.13 0.19 10.14 6.99 10.58 7.06 9.76 1.29 19.91 5.46 11.91 -28.98

Source: FactSet, Zephyr and Morningstar as of 9/30/13

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 (%)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD 9/13 Emerging Emerging Emerging Emerging Emerging Emerging Emerging Higher Small-Cap Small-Cap Growth Small-Cap Markets Markets Markets Markets Markets Markets Markets -33.79 26.85 2.64 27.69 55.82 25.55 34.00 32.17 39.39 78.51 18.22

Small-Cap International International International Growth Value Mid-Cap Mid-Cap S&P 500 Value Mid-Cap 47.25 20.25 13.54 26.34 11.81 -36.85 40.48 25.48 2.11 17.51 24.34

Emerging Mid-Cap Mid-Cap Mid-Cap Value Global S&P 500 Growth Value International Growth Markets 40.06 20.22 12.65 22.25 11.66 -37.00 37.21 0.39 17.32 20.74 18.88 International Small-Cap Global Global International Growth Global Growth Mid-Cap Mid-Cap Value 38.59 18.33 10.84 20.95 11.17 -38.44 34.63 16.71 -1.55 17.28 20.47

Global Value Value Small-Cap Mid-Cap Mid-Cap International Value Small-Cap Small-Cap S&P 500 33.99 16.49 7.05 18.37 5.60 -41.46 31.78 15.51 -4.18 16.35 19.79

Value Global Growth S&P 500 S&P 500 Global Small-Cap S&P 500 Global Global International 30.03 15.23 5.26 15.79 5.49 -42.20 27.17 15.06 -7.35 16.13 16.14

Growth S&P 500 S&P 500 Mid-Cap Value International S&P 500 Global International S&P 500 Global 29.75 10.88 4.91 15.26 -0.17 -43.38 26.46 12.67 -12.14 16.00 14.43

Emerging Emerging Emerging S&P 500 Growth Small-Cap Growth Small-Cap Value International Growth Markets Markets Markets 28.68 6.30 4.55 9.07 -1.57 19.69 7.75 15.26 -53.33 -18.42 -4.35 Lower Source: FactSet, Zephyr and Morningstar as of 9/30/13

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 33 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

Spot Returns vs. USD (%) Spot Returns vs. EUR (%) Local Interest Rates (%) Currency 1-Mo. YTD 1Y 3Y 5Y 1-Mo. YTD 1Y 3Y 5Y 1-Mo. 3-Mo. 6-Mo. 9-Mo. 1Y U.S. Dollar (USD) ------2.25 -2.47 -4.93 0.26 0.82 0.02 0.01 0.03 - 0.09 Euro (EUR) * 2.31 2.53 5.19 -0.27 -0.82 ------0.01 -0.01 0.01 - 0.09 British Pound (GBP) 4.42 -0.39 0.11 0.99 -1.89 2.07 -2.84 -4.80 1.26 -1.08 0.30 0.33 - - 0.39 Japanese Yen (JPY) -0.10 -11.72 -20.67 -5.27 1.55 -2.35 -13.89 -24.61 -5.03 2.39 - 0.03 0.04 - 0.09 Australian Dollar (AUD) 4.68 -10.37 -10.24 -1.23 3.29 2.33 -12.57 -14.64 -0.97 4.14 - 2.15 - - 2.40 Canadian Dollar (CAD) 2.21 -3.76 -4.58 -0.05 0.64 -0.09 -6.09 -9.29 0.21 1.47 - 0.97 0.98 - 1.04 New Zealand Dollar (NZD) 7.42 0.17 -0.01 4.17 4.38 5.00 -2.30 -4.93 4.45 5.25 - 2.42 - - 3.01 Norwegian Krone (NOK) 1.69 -7.47 -4.80 -0.77 -0.51 -0.60 -9.74 -9.48 -0.50 0.32 - 1.50 1.54 1.55 1.62 Swedish Krona (SEK) 2.94 1.15 2.11 1.59 1.48 0.62 -1.34 -2.94 1.85 2.33 - 0.84 0.87 - 0.87 Danish Krone (DKK) 2.32 2.57 5.14 -0.29 -0.81 0.02 0.03 -0.04 -0.02 0.01 - -0.11 -0.07 -0.01 0.06 Swiss Franc (CHF) 2.75 1.16 3.86 2.78 4.40 0.45 -1.32 -1.26 3.06 5.26 - 0.02 0.08 - -0.10

Foreign Currencies Appreciation / (Depreciation) vs. USD Foreign Currencies Appreciation / (Depreciation) vs. EUR Trailing 5-Year % Change Trailing 5-Year % Change 60% 60% 48% 48% 36% 36% 24% 24% 12% 12% 0% 0% -12% -12% -24% -24% -36% -36% -48% -48% -60% -60% '08 '09 '10 '11 '12 '13 '08 '09 '10 '11 '12 '13 EUR* GBP JPY AUD NZD USD GBP NOK SEK CHF * German Rate

Source: Bloomberg as of 9/30/13

34 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

Spot Returns vs. USD (%) Spot Returns vs. EUR (%) Local Interest Rates (%) Currency 1-Mo. YTD 1Y 3Y 5Y 1-Mo. YTD 1Y 3Y 5Y 1-Mo. 3-Mo. 6-Mo. 9-Mo. 1Y

ASIA, EX. JAPAN Chinese Renminbi (CNY) -0.01 1.79 2.68 3.02 2.26 -1.97 -0.61 -1.67 3.40 3.14 - - - - 2.51

Malaysian Ringgit (MYR) 0.77 -6.18 -6.15 -1.79 1.07 -1.16 -8.31 -10.02 -1.50 2.34 - 2.95 2.95 - 2.90

Indian Rupee (INR) 4.93 -12.17 -15.58 -10.46 -5.59 3.02 -14.20 -19.17 -10.40 -4.78 - 9.57 9.39 - 9.22

Indonesia Rupiah (IDR) -1.95 -14.14 -15.91 -7.91 -3.58 -3.99 -16.23 -19.52 -7.65 -2.78 - - - - 6.53

Philippine Peso (PHP) 2.54 -5.68 -3.99 0.29 1.59 0.57 -7.92 -7.94 0.61 2.47 0.25 0.67 0.71 - 0.82

Singapore Dollar (SGD) 1.52 -2.71 -2.26 1.58 2.71 -0.75 -5.14 -7.08 1.85 3.56 0.24 0.27 - - 0.28

South Korean Won (KRW) 3.29 -0.95 3.42 1.99 2.35 1.38 -3.09 -0.89 2.21 3.24 - 3.49 2.63 - 2.73

Taiwanese Dollar (TWD) 1.01 -2.01 -1.07 1.78 1.68 -0.95 -4.25 -5.24 2.09 2.96 - - - - 0.52

Thai Baht (THB) 2.91 -2.08 -1.31 -0.96 1.62 0.61 -4.49 -6.18 -0.69 2.46 - 2.53 2.60 - 2.61

LATIN AMERICA Brazilian Real (BRL) 7.60 -7.46 -8.60 -8.70 -2.99 5.15 -9.73 -13.11 -8.47 -2.22 - 8.87 9.45 - 9.97

Chilean Peso (CLP) 1.10 -5.05 -5.94 -1.41 1.81 -1.28 -7.51 -10.49 -1.21 2.60 - 4.99 4.95 - 5.01

Colombian Peso (COP) 1.41 -7.29 -5.53 -1.85 2.84 -0.94 -9.56 -10.17 -1.62 3.68 - - - - 3.89

Mexican Peso (MXN) 2.20 -1.82 -1.78 -1.28 -3.53 -0.09 -4.22 -6.62 -1.02 -2.74 - 3.54 3.64 - 3.65

Peruvian New Sol (PEN) 0.86 -8.38 -6.73 0.01 1.38 -1.48 -10.63 -11.33 0.23 2.19 - - - - 3.55

Source: Bloomberg as of 9/30/13

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

Spot Returns vs. USD (%) Spot Returns vs. EUR (%) Local Interest Rates (%) Currency 1-Mo. YTD 1Y 3Y 5Y 1-Mo. YTD 1Y 3Y 5Y 1-Mo. 3-Mo. 6-Mo. 9-Mo. 1Y

EUROPE Czech Koruna (CZK) 2.55 0.13 2.94 -1.68 -1.75 0.23 -2.30 -2.15 -1.43 -0.94 - 0.10 0.15 - 0.26

Hungarian Forint (HUF) 3.50 0.44 0.90 -2.70 -4.81 1.16 -2.06 -4.08 -2.44 -4.03 - 3.55 3.62 - 3.60

Polish Zloty (PLN) 3.48 -0.88 2.56 -2.33 -5.04 1.18 -3.38 -2.47 -2.08 -4.26 - - - - 2.63

Romania Leu (RON) 2.06 2.49 7.38 -1.61 -4.13 0.03 0.26 2.36 -1.23 -3.28 - - 3.76 - 3.76

Russian Ruble (RUB) 2.78 -5.76 -3.74 -1.95 -4.56 0.30 -8.16 -8.38 -1.69 -3.78 6.65 6.82 7.15 - 6.73

Turkish New Lira (TRY) 0.97 -11.64 -10.97 -10.53 -8.86 -1.29 -13.81 -15.36 -10.28 -8.12 - 8.13 8.15 - 8.25

MIDDLE EAST AND AFRICA Ghanaian Cedi (GHS) -1.15 -12.64 -12.99 -13.26 -11.86 -3.70 -14.82 -17.29 -12.97 -11.14 17.94 18.66 - - 22.00

Israeli Shekel (ILS) 2.73 5.92 11.19 1.10 -0.38 0.63 3.30 5.68 1.40 0.42 - 1.03 1.08 1.14 1.17

Kenyan Shilling (KES) 1.68 0.00 -0.93 -2.12 -3.19 -0.83 -2.91 -7.00 -2.03 -2.46 - 9.11 9.67 - 10.31

Moroccan Dirham (MAD) 1.89 2.18 4.24 -0.19 -0.68 -0.39 -0.48 -0.96 -0.01 0.11 - - - - -

Nigerian Naira (NGN) 0.08 -3.17 -2.52 -1.42 -6.12 -1.04 -5.61 -7.38 -1.16 -5.35 10.43 11.01 12.15 12.36 12.59

South African Rand (ZAR) 2.51 -15.50 -17.08 -11.45 -3.74 0.21 -17.74 -21.21 -11.21 -2.95 - 5.46 5.56 5.47 5.25

Ugandan Shilling (UGX) 1.46 4.60 -0.39 -4.31 -8.19 -0.43 2.89 -4.94 -3.93 -7.36 9.56 9.22 - - 12.45

Zambian Kwacha (ZMK) 1.13 -1.96 -3.95 -3.01 -7.61 -1.14 -4.67 -8.69 -2.75 -6.85 - - - - 13.65

Source: Bloomberg as of 9/30/13

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 Market Local Interest Rates (1 Year) Emerging Market Local Interest Rates (1 Year)

Swiss Franc (CHF) -0.10 Philippine Peso (PHP) 0.82

Thai Baht (THB) 2.61 Danish Krone (DKK) 0.06 Polish Zloty (PLN) 2.63

Japanese Yen (JPY) 0.09 Malaysian Ringgit (MYR) 2.90

U.S. Dollar (USD) 0.09 Peruvian New Sol (PEN) 3.55 Hungarian Forint (HUF) 3.60 Euro (EUR) * 0.09 Mexican Peso (MXN) 3.65

British Pound (GBP) 0.39 Colombian Peso (COP) 3.89

Chilean Peso (CLP) 5.01 Swedish Krona (SEK) 0.87 South African Rand (ZAR) 5.25 Canadian Dollar (CAD) 1.04 Indonesia Rupiah (IDR) 6.53

Norwegian Krone (NOK) 1.62 Russian Ruble (RUB) 6.73

Turkish New Lira (TRY) 8.25 Australian Dollar (AUD) 2.40 Brazilian Real (BRL) 9.97 New Zealand Dollar (NZD) 3.01 Nigerian Naira (NGN) 12.59

-5.00 0.00 5.00 10.00 15.00 0.00 5.00 10.00 15.00 ** GermanGerman RateRate

Source: Bloomberg as of 9/30/13

37 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

Commodities Return Analysis (%)

Index 1-Mo. 3-Mo. YTD 1Y 3Y 5Y Index 1-Mo. 3-Mo. YTD 1Y 3Y 5Y

DJ UBS Commodity Index -2.55 2.13 -8.56 -14.35 -3.16 -5.29 DJ UBS Sub Industrial Metals 1.57 4.29 -13.87 -17.02 -9.60 -4.13

DJ UBS Sub Agriculture -1.94 -2.60 -9.90 -19.13 0.32 1.28 Aluminum 0.90 1.33 -16.70 -19.40 -13.30 -11.42

Coffee -2.23 -7.56 -26.60 -41.19 -20.94 -10.36 Copper 2.79 8.45 -10.50 -13.27 -4.77 0.67

Corn -8.40 -17.47 -25.15 -31.14 3.74 -3.31 Nickel 0.95 1.24 -19.38 -25.85 -16.82 -4.05

Cotton 4.46 3.82 14.11 20.25 4.68 10.13 Zinc 0.00 1.23 -12.35 -14.47 -8.53 -2.61

Soybean -5.50 2.47 8.32 -4.48 11.91 11.33 DJ UBS Sub Precious Metals -5.63 8.97 -23.25 -28.88 0.03 9.10

Soybean Oil -7.20 -8.90 -17.11 -23.05 -6.85 -6.52 Gold -4.95 8.26 -21.20 -25.64 -0.22 7.76

Sugar 7.82 4.14 -11.56 -15.48 -2.46 6.27 Platinum -7.73 5.17 -9.07 -16.16 -6.18 5.31

Wheat 3.75 1.06 -17.03 -29.62 -12.43 -14.15 Silver -7.67 11.22 -28.80 -37.91 -1.03 11.04

DJ UBS Sub Energy -4.31 2.81 0.77 -4.53 -5.90 -19.27 DJ UBS Sub Livestock 1.70 2.64 -1.85 2.74 -1.97 -6.22

Brent Crude -3.24 8.06 2.82 2.91 13.65 -3.29 Lean Hogs 2.48 4.43 4.00 12.65 -2.26 -8.89

Heating Oil -5.20 3.40 -2.67 -5.65 7.55 -6.85 Live Cattle 1.14 1.60 -5.73 -2.96 -2.09 -4.65

Natural Gas -3.36 -4.40 -5.40 -15.92 -30.25 -41.50

Unleaded Gas -7.89 3.08 -3.48 -3.73 18.53 1.92

WTI Crude Oil -4.43 7.92 10.60 8.22 1.73 -14.94

Source: Morningstar as of 9/30/13

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 Dow Jones-UBS Commodity Index. Agriculture represented by Dow Jones-UBS Agriculture Subindex. Energy represented by Dow Jones-UBS Energy Subindex. Grains represented by Dow Jones-UBS Grains Subindex. Industrial Metals represented 38 by Dow Jones-UBS Industrial Metals Subindex. Livestock represented by Dow Jones-UBS Livestock Subindex. Precious Metals represented by Dow Jones-UBS Precious Metals Subindex. Softs represented by Dow Jones-UBS Softs Subindex. Eaton Vance Monthly Market Monitor Alternative Markets

Commodities Return Analysis (%)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD 9/13 Higher Industrial Industrial Precious Industrial Precious Livestock Energy Grains Softs Grains Energy Metals Metals Metals Metals Metals 27.10 42.16 42.07 59.90 18.25 0.77 43.53 72.35 -4.06 79.98 4.56 Industrial Industrial Precious Precious Precious Energy Agriculture Grains Softs Livestock Livestock Metals Metals Metals Metals Metals 31.72 29.89 -26.32 44.24 -2.30 -1.85 25.27 33.47 27.11 42.66 6.29 Precious Precious Commodity Energy Commodity Grains Agriculture Agriculture Commodity Agriculture Commodity Metals Metals 23.93 19.12 21.36 23.61 -27.47 38.49 -13.32 3.98 -8.56 25.96 29.20 Precious Industrial Grains Commodity Agriculture Energy Livestock Commodity Grains Softs Agriculture Metals Metals 21.74 9.15 14.25 20.69 -28.41 18.91 30.28 -13.97 -9.90 20.44 0.67 Precious Precious Softs Commodity Commodity Softs Agriculture Commodity Agriculture Commodity Softs Metals Metals 9.31 2.07 16.23 -28.43 13.72 16.83 -14.35 -1.06 -10.53 20.29 7.40 Industrial Softs Softs Agriculture Livestock Softs Commodity Grains Grains Livestock Grains Metals -3.18 3.67 1.08 -6.12 -3.45 -35.65 -1.65 -14.41 -3.54 -12.13 16.24 Industrial Industrial Livestock Agriculture Livestock Softs Energy Energy Livestock Energy Energy Metals Metals -3.91 -12.85 -0.26 -11.97 -47.33 -5.30 9.27 -15.97 -9.36 -9.86 -13.87 Industrial Industrial Precious Grains Grains Energy Livestock Livestock Energy Softs Metals Metals Metals -23.68 -3.32 -41.41 -10.67 -15.07 -10.55 -22.39 Lower -48.27 -24.23 -23.25

Source: Morningstar as of 9/30/13

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 Dow Jones-UBS Commodity Index. Agriculture represented by Dow Jones-UBS Agriculture Subindex. Energy represented by Dow Jones-UBS Energy Subindex. Grains represented by Dow Jones-UBS Grains Subindex. Industrial Metals represented 39 by Dow Jones-UBS Industrial Metals Subindex. Livestock represented by Dow Jones-UBS Livestock Subindex. Precious Metals represented by Dow Jones-UBS Precious Metals Subindex. Softs represented by Dow Jones-UBS Softs Subindex. Eaton Vance Monthly Market Monitor Flows Monitor

Fund & ETF Flows by Category

Top 10 Open-End Mutual Fund Categories by Monthly Flows ($MM) Top 10 Exchange-Traded Fund Categories by Monthly Flows ($MM) 8/13 1 Mo. 3 Mo. 12 Mo. 8/13 1 Mo. 3 Mo. 12 Mo. Bank Loan 7,551 21,591 53,882 Europe Stock 3,236 4,767 10,292 Nontraditional Bond 5,002 18,759 46,832 Foreign Large Blend 2,781 4,710 12,466 Foreign Large Blend 4,524 13,882 36,384 Mid-Cap Blend 1,762 4,105 10,257 Large Blend 3,010 5,927 5,082 Short-Term Bond 1,415 4,021 11,795 Ultrashort Bond 2,236 3,912 11,356 Trading-Leveraged Equity 1,322 1,930 1,039 Long/Short Equity 2,173 6,106 14,427 Trading-Inverse Equity 905 1,098 3,332 Short-Term Bond 1,911 1,601 29,399 Technology 620 1,657 3,165 Multialternative 1,893 3,780 8,478 Ultrashort Bond 541 2,695 5,173 Moderate Allocation 1,793 4,836 4,229 Miscellaneous Region 491 1,561 4,651 Diversified Emerging Mkts 1,683 6,076 35,384 Bank Loan 463 1,265 5,179

Bottom 10 Open-End Mutual Fund Categories by Monthly Flows ($MM) Bottom 10 Exchange-Traded Fund Categories by Monthly Flows ($MM) 8/13 1 Mo. 3 Mo. 12 Mo. 8/13 1 Mo. 3 Mo. 12 Mo. Emerging Markets Bond (1,478) (4,447) 10,320 High Yield Bond (993) (296) 129 Multisector Bond (1,532) (5,343) 17,988 Financial (1,055) 2,323 8,979 Inflation-Protected Bond (2,078) (8,417) (12,882) Consumer Defensive (1,253) (836) (547) High Yield Muni (2,355) (8,374) (6,097) Japan Stock (1,435) (167) 14,162 High Yield Bond (2,922) (10,221) (8,288) Large Value (1,492) (171) 15,677 Muni National Interm (2,924) (9,420) (1,405) Consumer Cyclical (1,588) (827) 2,542 Muni National Long (2,963) (8,234) (7,192) Diversified Emerging Mkts (1,591) (6,167) 5,004 Large Growth (3,322) (6,666) (37,400) Intermediate Government (2,263) (1,258) (673) Intermediate Government (4,159) (13,960) (25,096) Long-Term Bond (2,433) (7,163) (4,543) Intermediate-Term Bond (18,205) (57,366) (8,793) Large Blend (14,886) 2,578 36,369

Source: Morningstar as of 9/30/13

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: BofA Merrill Lynch UK Gilt Index tracks the performance of GBP denominated sovereign debt Barclays Capital Global Aggregate Ex-USD Index is a broad-based measure of publicly issued by the UK government in its domestic market. global Investment Grade fixed-rate debt investments, excluding USD-denominated debt. BofA Merrill Lynch European Union Government Bond Index tracks the performance of Barclays Capital High Yield Municipal Bond Index is an unmanaged index of sovereign debt publicly issued by countries that are members of the European Union. non-Investment Grade Municipal bonds traded in the U.S. CBOE Volatility Index (VIX) tracks the implied volatilities of a wide range of S&P 500 Barclays Capital Municipal Bond Index is an unmanaged index of Municipal Index options. bonds traded in the U.S. CBOE S&P 500 BuyWrite Index measures the performance of a hypothetical buy-write Barclays Capital U.S. Agency Index measures agency securities issued by U.S government strategy on the S&P 500 Index. agencies, quasi-federal corporations, and corporate or foreign debt Dow Jones-UBS Commodity Index is a broadly diversified index tracking futures contracts on guaranteed by the U.S. government. physical commodities. Barclays Capital U.S. Aggregate Index is an unmanaged index of domestic investment- FTSE 100 Index is an unmanaged market-capitalization weighted index representing the grade bonds, including corporate, government and mortgage-backed securities. performance of the 100 largest UK listed blue chip companies, which pass screening for size Barclays Capital U.S. Aggregate Local Authorities Index measures the performance and liquidity. of U.S. investment-grade fixed-rate debt issued directly or indirectly by local FTSE All Small Index consists of all the companies in the FTSE SmallCap and FTSE Fledgling government authorities. indices. Barclays Capital U.S. Asset Backed Securities (ABS) Index measures ABS with the JPMorgan Corporate Emerging Markets Bond Index (CEMBI) Diversified is a market-cap following collateral type: credit and charge card, auto, and utility loans. weighted index that measures USD-denominated emerging market corporate bonds. Barclays Capital U.S. CMBS Investment Grade Index measures the market of conduit and JPMorgan Emerging Markets Bond Index Plus (EMBI+) is a market-cap weighted index that fusion CMBS deals with a minimum current deal size of $300mn. measures USD-denominated Brady Bonds, Eurobonds, and traded loans issued by sovereign Barclays Capital U.S. Corporate High Yield Index measures USD-denominated, entities. non-Investment Grade corporate securities. JPMorgan Government Bond Index-Emerging Markets (GBI-EM) Global Diversified is an Barclays Capital U.S. Corporate Index is an unmanaged index that measures the unmanaged index of local-currency bonds with maturities of more than one year issued by performance of investment-grade corporate securities within the Barclays Capital U.S. emerging market governments. Aggregate Index. Morgan Stanley Capital International (MSCI) Emerging Markets Index is an Barclays Capital U.S. Mortgage Backed Securities (MBS) Index measures agency unmanaged index of emerging markets common stocks. mortgage-backed pass-through securities issued by GNMA, FNMA, and FHLMC. Morgan Stanley Capital International All Country Asia Pacific Index (MSCI AC Asia Pac) Barclays Capital U.S. Treasury Index measures public debt instruments issued by the U.S. Index is an unmanaged total return, capitalization-weighted index that measures the Treasury. performance of stock markets in 15 Pacific region countries, including Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Pakistan, the Philippines, BofA Merrill Lynch Fixed Rate Preferred Securities Index is an unmanaged index of fixed- rate, preferred securities issued in the U.S. Singapore, Sri Lanka, Taiwan and Thailand.

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. 41 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: BofA Merrill Lynch Indexes: BofA Merrill Lynch™ indices not for redistribution or other uses; Morgan Stanley Capital International (MSCI) Japan Index is an unmanaged index provided "as is", without warranties, and with no liability. Eaton Vance has prepared this designed to measure the performance of the large and mid cap segments of the Japan report, BofAML does not endorse it, or guarantee, review, or endorse Eaton Vance's products. market. Morgan Stanley Capital International (MSCI) World Index is an unmanaged index of equity MSCI Indexes: Source: MSCI. MSCI data may not be reproduced or used for any other purpose. securities in the developed markets. MSCI provides no warranties, has not prepared or approved this report, and has no liability Morgan Stanley Capital International All Country World (MSCI AC World) Index is an hereunder. unmanaged free float-adjusted market-capitalization-weighted index designed to measure the TERMS: equity market performance of developed and emerging markets. 10-Year TIPS Break-Even is a measure of the market’s expectations for future U.S. inflation. It Morgan Stanley Capital International Europe (MSCI Europe) Index is an unmanaged free is calculated by subtracting the yield on the 10-year U.S. Treasury Inflation-Protected Security float-adjusted market-capitalization-weighted index designed to measure the equity market from the yield on the 10-year U.S. Treasury note. performance of the developed markets in Europe. Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index CPI, or Consumer Price Index, is a measure of the weighted average of prices of a basket of is an unmanaged index of equities in the developed markets, excluding the U.S. and Canada. consumer goods and services, such as transportation, food and medical care. The CPI is Nikkei 225 Stock Average Index is unmanaged price-weighted index of 225 top-rated calculated by taking price changes for each item in the predetermined basket and averaging Japanese companies listed in the First Section of the Tokyo Stock Exchange. them; the goods are weighted according to their importance. Also referred to as Headline CPI. Russell 1000 Index is an unmanaged index of 1,000 U.S. large-cap stocks. Core CPI equals CPI, or Headline CPI, less food and energy. prices. Russell 1000 Growth Index is an unmanaged index of 1,000 U.S. large-cap growth stocks. Municipal-to-Treasury Yield Ratios are relative value indicators that measure the richness or Russell 1000 Value Index is an unmanaged index of 1,000 U.S. large-cap value stocks. cheapness of Municipal bond yields to comparable maturity Treasury bond yields. Russell 2000 Index is an unmanaged index of 2,000 U.S. small-cap stocks. Nominal GDP is a measure that reflects the value of all goods and services produced in a given Russell 2500 Index is an unmanaged index of approximately 2,500 U.S. small- and mid-cap country, in a given year. U.S. stocks. Russell Midcap Index is an unmanaged index of U.S. mid-cap stocks. Nominal Spread is the stated spread over LIBOR paid by a floating-rate loan issuer. Standard & Poor’s 500 Index is an unmanaged index of large-cap stocks commonly used as Real GDP is an inflation-adjusted measure that reflects the value of all goods and services a measure of U.S. stock market performance. produced in a given country, in a given year, expressed in base-year prices. S&P/LSTA Leveraged Loan Index is an unmanaged index of the institutional leveraged loan Secondary Spread is a yield-to-maturity measure that accounts for the current market price of a market. floating-rate loan. 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. Yield to Worst is a measure which reflects the lowest potential yield earned on a bond without U.S. Dollar Index represented by ICE Futures U.S. Dollar Index which measures the value of the issuer defaulting. The yield to worst is calculated by making worst-case scenario the U.S. dollar versus six major foreign currencies including the Euro, Japanese Yen, United assumptions by calculating the returns that would be received if provisions, including Kingdom Pound, Canadian Dollar, Swedish Krona and Swiss Franc. prepayment, call or sinking fund, are used by the issuer. BofA Merrill Lynch US Inflation-Linked Treasury Index tracks the performance of USD Velocity of money is the dollar value of Gross Domestic Product (GDP) divided by Money denominated inflation linked sovereign debt publicly issued by the US government. 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.

42 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 Company’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 today’s most discerning investors.

44 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

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