Launch of Eaton Vance Currency Income Advantage Fund

BOSTON, Aug. 29, 2013 /PRNewswire/ -- Eaton Vance Management, a subsidiary of Eaton Vance Corp. (NYSE: EV), today announced the launch of Eaton Vance Currency Income Advantage Fund (Class A: ECIAX, Class I: ECIIX), a new mutual fund seeking total return by investing at least 80% of net assets in (i) income instruments denominated in foreign currencies and/or issued by foreign entities or sovereign nations, (ii) derivative instruments relating to foreign entities or sovereign nations and (iii) precious metals and commodities-related instruments.   The Fund expects to normally maintain foreign currency exposures across developed, emerging and frontier markets.    

The Fund is the second Eaton Vance-sponsored currency income fund, joining Eaton Vance Diversified Currency Income Fund (Diversified Currency Fund) (Class A: EAIIX, Class C: ECIMX; Class I: EIIMX), which was launched in 2007 and had net assets of approximately $800 million as of July 31, 2013.  Compared to Diversified Currency Fund, the Fund seeks to earn higher income and total returns, with commensurately higher risk. 

"We believe investments in foreign currencies can provide investors with an attractive income stream and potentially reduce portfolio volatility and hedge against potential U.S. price inflation," said Payson F. Swaffield, CFA, chief income investment officer for Eaton Vance.

The Fund is managed by a team led by Eric Stein, CFA, Vice President and Co-Director of Eaton Vance's Global Income Group, Michael Cirami, CFA, Vice President and Co-Director of Eaton Vance's Global Income Group and John Baur, Vice President of Eaton Vance and Director of Global Portfolio Analysis.

"We employ a macroeconomic and political research process to evaluate the relative attractiveness of countries and currencies," said Mr. Cirami. "We typically invest in countries where we deem the policy mix and economic environment as being supportive of long-term growth – these are the places we believe will attract capital investment and, thus, experience currency strength."

In allocating the Fund's assets, the portfolio management team utilizes its time-tested investment process, combining macroeconomic and political analysis of countries to gain exposures to currencies that it believes have the potential to appreciate.   

"We believe many investors in the U.S. have little to no active foreign currency exposure within their portfolios, resulting in a nearly 100% allocation to U.S. dollar-denominated assets," said Mr. Stein. "Based on their historically low correlation to traditional stock and bond investments, allocating assets to foreign currency instruments can provide meaningful portfolio diversification and potentially lower overall portfolio volatility."

The Fund is managed by Eaton Vance Management, a wholly owned subsidiary of Eaton Vance Corp.  Eaton Vance is one of the oldest investment management firms in the United States, with a history dating back to 1924. Eaton Vance and its affiliates managed $268.8 billion in assets as of July 31, 2013, offering individuals and institutions a broad array of investment strategies and wealth management solutions. Eaton Vance's long record of providing 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. For more information about Eaton Vance, visit www.eatonvance.com.

Primary Risks: The value of foreign currencies as measured in U.S. dollars will fluctuate and may be unpredictably affected by changes in foreign currency rates and exchange control regulations, application of foreign tax laws, governmental administration of economic or monetary policies, intervention by U.S. or foreign governments or central banks, and relations between nations. 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 or frontier countries, these risks may be more significant. 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. 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. Derivatives instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. 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. As interest rates rise, the value of certain income investments is likely to decline. Because the Fund may invest significantly in a particular geographic region or country, value of Fund shares may fluctuate more than a fund with less exposure to such areas. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher rated investments. No Fund is a complete investment program and you may lose money investing in a Fund. The Fund may engage in other investment practices that may involve additional risks and you should review the Fund prospectus for a complete description.

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

The Fund is distributed by Eaton Vance Distributors, Inc., Two International Place, Boston, MA 02110. Member FINRA/ SIPC

Not FDIC Insured - Not Bank Guaranteed - May Lose Value

SOURCE Eaton Vance Management