Eaton Vance Offers Investors a New Way to Go Anywhere
Reported by Neil Anderson, Managing Editor
Eaton Vance [see profile] just launched a new go-anywhere mutual fund. Today the Boston-based asset manager unveiled its Multi-Strategy All Market Fund (EAAMX).
The Eaton Vance Customized Solutions Group, which runs the existing Multi-Strategy Absolute Return Fund, PMs the new fund, too. Those PMs include the group's co-directors, Jeffrey Rawlins and Dan Strelow, as well as two other PMs, Justin Bourgette and Thomas Shively.
"Market volatility often leads investors to act on emotion and to do the wrong thing at the wrong time," Rawlins stated. "Instead, we attempt to utilize volatility to the Fund's advantage."
Company Press Release
BOSTON, Nov. 2, 2011 -- Eaton Vance Management, a subsidiary of Eaton Vance Corp. (NYSE: EV), today announced the launch of Eaton Vance Multi-Strategy All Market Fund (Class A: EAAMX, Class C: ECAMX, Class I: EIAMX), a new mutual fund that has the flexibility to invest in a broad spectrum of asset classes, including stocks, bonds and alternatives, primarily by allocating its assets to various Eaton Vance-sponsored portfolios.
The Fund is managed by the Eaton Vance Customized Solutions Group, led by co-directors and co-portfolio managers Jeffrey Rawlins and Dan Strelow and including co-managers Justin Bourgette and Thomas Shively. The Eaton Vance Customized Solutions Group also manages Eaton Vance Multi-Strategy Absolute Return Fund.
In allocating the Fund's assets, the portfolio management team combines fundamental analysis, quantitative portfolio optimization and risk management techniques to invest in markets and market sectors that it believes offers favorable risk-adjusted return prospects. Designed as a core portfolio holding with a focus on risk-adjusted returns, the Fund is managed with a targeted volatility ranging between approximately 4% and 14% annually.
"We believe that a tactical asset allocation approach can be an important part of a well-diversified portfolio," said Mr. Rawlins. "Market volatility often leads investors to act on emotion and to do the wrong thing at the wrong time. Instead, we attempt to utilize volatility to the Fund's advantage."
"By using quantitative tools to support our valuation analysis, we develop risk/return frameworks for each asset class," said Mr. Strelow. "The flexible nature of the Fund allows us to pursue perceived opportunities, wherever they may be, regardless of the market environment."
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 managed $177.8 billion in assets as of September 30, 2011, offering individuals and institutions a broad array of investment strategies and wealth management solutions. The Company's long record of providing exemplary service 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 Fund Risks: While the Fund has a targeted annual performance volatility range, its actual, or realized, volatility for longer or shorter periods may be materially higher or lower than the target range depending on market conditions. 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 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. 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 effectiveness of the Fund's option strategy is dependent upon a general imbalance of natural buyers over natural sellers of index options. This imbalance could decrease or be eliminated, which could have an adverse effect on the Fund. 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. Investing in an exchange traded fund (ETF) exposes the Fund to all of the risks of that ETF and, in general, subjects the Fund to a pro rata portion of the Fund's fees and expenses. Investing in exchange traded notes (ETNs) exposes the Fund to the performance of the issuer. The Fund's investments may lose their entire value if the issuer fails. Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher rated investments. As interest rates rise, the value of certain income investments is likely to decline. Short sales risk includes, among other things, the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale may fail to honor its contract, causing a loss to the fund. 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 investment objective, 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.
Mutual fund shares are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.
The Fund is distributed by Eaton Vance Distributors, Inc., Two International Place, Boston, MA 02110.