UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-02258
Eaton Vance Series Trust II
(Exact Name of Registrant as Specified in Charter)
Two International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
Deidre E. Walsh
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
(617) 482-8260
(Registrant’s Telephone Number)
October 31
Date of Fiscal Year End
October 31, 2023
Date of Reporting Period
Item 1. Reports to Stockholders
% Average Annual Total Returns1,2 | Class Inception Date | Performance Inception Date | One Year | Five Years | Ten Years |
Class A at NAV | 06/15/1972 | 06/15/1972 | 5.85% | 3.05% | 3.49% |
Class A with 3.25% Maximum Sales Charge | — | — | 2.45 | 2.39 | 3.15 |
Class C at NAV | 06/21/2002 | 06/15/1972 | 5.02 | 2.29 | 2.86 |
Class C with 1% Maximum Deferred Sales Charge | — | — | 4.02 | 2.29 | 2.86 |
Class I at NAV | 07/01/1999 | 06/15/1972 | 5.90 | 3.28 | 3.73 |
Class R at NAV | 01/05/2004 | 06/15/1972 | 5.57 | 2.78 | 3.24 |
Class R6 at NAV | 07/01/2014 | 06/15/1972 | 6.00 | 3.37 | 3.82 |
ICE BofA U.S. High Yield Index | — | — | 5.82% | 2.88% | 3.78% |
ICE BofA U.S. High Yield Constrained Index | — | — | 5.81 | 2.86 | 3.77 |
% Total Annual Operating Expense Ratios3 | Class A | Class C | Class I | Class R | Class R6 |
Gross | 1.02% | 1.77% | 0.77% | 1.27% | 0.68% |
Net | 1.00 | 1.75 | 0.75 | 1.25 | 0.66 |
Growth of Investment2 | Amount Invested | Period Beginning | At NAV | With Maximum Sales Charge |
Class C | $10,000 | 10/31/2013 | $13,254 | N.A. |
Class I, at minimum investment | $1,000,000 | 10/31/2013 | $1,442,540 | N.A. |
Class R | $10,000 | 10/31/2013 | $13,758 | N.A. |
Class R6, at minimum investment | $5,000,000 | 10/31/2013 | $7,272,852 | N.A. |
Credit Quality (% of total investments)1 |
1 | Ratings are based on Moody’s Investors Service, Inc. (“Moody’s”), S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), as applicable. The breakdown assigns a numeric equivalent to the ratings from the aforementioned agencies and the mean is rounded to the nearest integer and converted to an equivalent S&P major rating category. Ratings, which are subject to change, apply to the creditworthiness of the issuers of the underlying securities and not to the Fund or its shares. Credit ratings measure the quality of a bond based on the issuer’s creditworthiness, with ratings ranging from AAA, being the highest, to D, being the lowest based on S&P’s measures. Ratings of BBB or higher by S&P or Fitch (Baa or higher by Moody’s) are considered to be investment-grade quality. Credit ratings are based largely on the ratings agency’s analysis at the time of rating. The rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition and does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. Holdings designated as “Not Rated” (if any) are not rated by the national ratings agencies stated above. |
† | The views expressed in this report are those of the portfolio manager(s) and are current only through the date stated at the top of this page. These views are subject to change at any time based upon market or other conditions, and Eaton Vance and the Fund(s) disclaim any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Eaton Vance fund. This commentary may contain statements that are not historical facts, referred to as “forward-looking statements.” The Fund’s actual future results may differ significantly from those stated in any forward-looking statement, depending on factors such as changes in securities or financial markets or general economic conditions, the volume of sales and purchases of Fund shares, the continuation of investment advisory, administrative and service contracts, and other risks discussed from time to time in the Fund’s filings with the Securities and Exchange Commission. |
1 | ICE BofA U.S. High Yield Index is an unmanaged index of below-investment grade U.S. corporate bonds. ICE BofA U.S. High Yield Constrained Index is an unmanaged index of below-investment grade U.S. corporate bonds, with issuer exposure capped at 2%. ICE® BofA® indices are not for redistribution or other uses; provided “as is”, without warranties, and with no liability. Eaton Vance has prepared this report and ICE Data Indices, LLC does not endorse it, or guarantee, review, or endorse Eaton Vance’s products. BofA® is a licensed registered trademark of Bank of America Corporation in the United States and other countries. 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. |
2 | Total Returns at NAV do not include applicable sales charges. If sales charges were deducted, the returns would be lower. Total Returns shown with maximum sales charge reflect the stated maximum sales charge. Unless otherwise stated, performance does not reflect the deduction of taxes on Fund distributions or redemptions of Fund shares.Performance prior to the inception date of a class may be linked to the performance of an older class of the Fund. This linked performance is adjusted for any applicable sales charge, but is not adjusted for class expense differences. If adjusted for such differences, the performance would be different. The performance of Class R6 is linked to Class I. Performance presented in the Financial Highlights included in the financial statements is not linked.Effective November 5, 2020, Class C shares automatically convert to Class A shares eight years after purchase. The average annual total returns listed for Class C reflect conversion to Class A shares after eight years. Prior to November 5, 2020, Class C shares automatically converted to Class A shares ten years after purchase. |
3 | Source: Fund prospectus. Net expense ratios reflect a contractual expense reimbursement that continues through 2/29/24. The expense ratios for the current reporting period can be found in the Financial |
Highlights section of this report. Performance reflects expenses waived and/or reimbursed, if applicable. Without such waivers and/or reimbursements, performance would have been lower. |
Fund profile subject to change due to active management. | |
Additional Information | |
Bloomberg U.S. Aggregate Bond Index is an unmanaged index of domestic investment-grade bonds, including corporate, government and mortgage-backed securities. | |
Duration is a measure of the expected change in price of a bond — in percentage terms — given a one percent change in interest rates, all else being constant. Securities with lower durations tend to be less sensitive to interest rate changes. | |
Risk asset is a term broadly used to describe any asset that is not a high-quality government bond. |
Beginning Account Value (5/1/23) | Ending Account Value (10/31/23) | Expenses Paid During Period* (5/1/23 – 10/31/23) | Annualized Expense Ratio | |
Actual | ||||
Class A | $1,000.00 | $ 994.90 | $5.03** | 1.00% |
Class C | $1,000.00 | $ 991.30 | $8.78** | 1.75% |
Class I | $1,000.00 | $ 994.20 | $3.77** | 0.75% |
Class R | $1,000.00 | $ 993.70 | $6.28** | 1.25% |
Class R6 | $1,000.00 | $ 994.60 | $3.32** | 0.66% |
Hypothetical | ||||
(5% return per year before expenses) | ||||
Class A | $1,000.00 | $1,020.16 | $5.09** | 1.00% |
Class C | $1,000.00 | $1,016.38 | $8.89** | 1.75% |
Class I | $1,000.00 | $1,021.43 | $3.82** | 0.75% |
Class R | $1,000.00 | $1,018.90 | $6.36** | 1.25% |
Class R6 | $1,000.00 | $1,021.88 | $3.36** | 0.66% |
* | Expenses are equal to the Fund’s annualized expense ratio for the indicated Class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on April 30, 2023. |
** | Absent an allocation of certain expenses to affiliate(s), expenses would be higher. |
Common Stocks — 0.5% |
Security | Shares | Value | |
Diversified Media — 0.1% | |||
National CineMedia, Inc.(1) | 1,461,304 | $ 5,713,699 | |
$ 5,713,699 | |||
Energy — 0.2% | |||
Ascent CNR Corp., Class A(1)(2)(3) | 32,029,863 | $ 7,046,570 | |
$ 7,046,570 | |||
Environmental — 0.2% | |||
GFL Environmental, Inc. | 300,300 | $ 8,654,646 | |
$ 8,654,646 | |||
Gaming — 0.0% | |||
New Cotai Participation Corp., Class B(1)(2)(3) | 36 | $ 0 | |
$ 0 | |||
Leisure — 0.0% | |||
iFIT Health and Fitness, Inc.(1)(2)(3) | 128,520 | $ 0 | |
$ 0 | |||
Total Common Stocks (identified cost $12,194,327) | $ 21,414,915 |
Convertible Bonds — 0.9% |
Security | Principal Amount (000's omitted) | Value | |
Containers — 0.4% | |||
CryoPort, Inc., 0.75%, 12/1/26(4) | $ | 21,292 | $ 16,780,237 |
$ 16,780,237 | |||
Leisure — 0.3% | |||
Peloton Interactive, Inc., 0.00%, 2/15/26 | $ | 19,532 | $ 14,503,994 |
$ 14,503,994 | |||
Utility — 0.2% | |||
NextEra Energy Partners, L.P., 2.50%, 6/15/26(4) | $ | 13,783 | $ 11,949,861 |
$ 11,949,861 | |||
Total Convertible Bonds (identified cost $47,753,881) | $ 43,234,092 |
Corporate Bonds — 87.5% |
Security | Principal Amount* (000's omitted) | Value | |
Aerospace — 3.1% | |||
Bombardier, Inc.: | |||
7.125%, 6/15/26(4) | 7,440 | $ 7,167,741 | |
7.875%, 4/15/27(4) | 6,477 | 6,239,606 | |
BWX Technologies, Inc.: | |||
4.125%, 6/30/28(4) | 8,345 | 7,352,988 | |
4.125%, 4/15/29(4) | 7,093 | 6,072,707 | |
Moog, Inc., 4.25%, 12/15/27(4) | 10,223 | 9,112,869 | |
Rolls-Royce PLC, 5.75%, 10/15/27(4) | 28,737 | 27,265,947 | |
Science Applications International Corp., 4.875%, 4/1/28(4) | 15,585 | 13,923,431 | |
Spirit AeroSystems, Inc.: | |||
4.60%, 6/15/28 | 4,641 | 3,676,117 | |
9.375%, 11/30/29(4) | 1,652 | 1,698,555 | |
TransDigm, Inc.: | |||
4.625%, 1/15/29 | 11,770 | 10,161,865 | |
5.50%, 11/15/27 | 18,419 | 17,165,854 | |
6.25%, 3/15/26(4) | 16,947 | 16,572,550 | |
6.75%, 8/15/28(4) | 15,849 | 15,408,926 | |
7.50%, 3/15/27 | 7,253 | 7,251,592 | |
$ 149,070,748 | |||
Air Transportation — 0.8% | |||
United Airlines, Inc.: | |||
4.375%, 4/15/26(4) | 8,188 | $ 7,603,455 | |
4.625%, 4/15/29(4) | 10,596 | 8,960,012 | |
VistaJet Malta Finance PLC/Vista Management Holding, Inc.: | |||
6.375%, 2/1/30(4) | 22,901 | 15,297,007 | |
9.50%, 6/1/28(4) | 8,740 | 6,705,825 | |
$ 38,566,299 | |||
Automotive & Auto Parts — 2.9% | |||
Ford Motor Co.: | |||
3.25%, 2/12/32 | 26,385 | $ 19,934,763 | |
4.75%, 1/15/43 | 17,531 | 12,199,765 | |
7.45%, 7/16/31 | 4,673 | 4,719,294 | |
9.625%, 4/22/30 | 2,055 | 2,293,683 | |
Ford Motor Credit Co., LLC: | |||
2.90%, 2/16/28 | 4,218 | 3,592,530 | |
3.37%, 11/17/23 | 4,486 | 4,484,696 | |
3.625%, 6/17/31 | 6,330 | 5,007,348 | |
3.815%, 11/2/27 | 18,089 | 16,146,140 |
Security | Principal Amount* (000's omitted) | Value | |
Automotive & Auto Parts (continued) | |||
Ford Motor Credit Co., LLC: (continued) | |||
4.00%, 11/13/30 | 9,839 | $ 8,112,427 | |
4.125%, 8/17/27 | 23,978 | 21,795,232 | |
4.271%, 1/9/27 | 4,368 | 4,046,029 | |
5.113%, 5/3/29 | 5,476 | 4,989,166 | |
5.125%, 6/16/25 | 9,083 | 8,846,192 | |
5.584%, 3/18/24 | 1,976 | 1,968,753 | |
Goodyear Tire & Rubber Co. (The), 5.00%, 7/15/29 | 6,304 | 5,431,103 | |
Real Hero Merger Sub 2, Inc., 6.25%, 2/1/29(4) | 14,088 | 11,220,881 | |
Wheel Pros, Inc., 6.50%, 5/15/29(4) | 8,996 | 2,739,622 | |
$ 137,527,624 | |||
Broadcasting — 0.7% | |||
Audacy Capital Corp., 6.75%, 3/31/29(4)(5) | 16,478 | $ 280,456 | |
Playtika Holding Corp., 4.25%, 3/15/29(4) | 14,461 | 11,678,125 | |
Townsquare Media, Inc., 6.875%, 2/1/26(4) | 10,374 | 9,598,887 | |
Univision Communications, Inc., 7.375%, 6/30/30(4) | 12,199 | 10,753,338 | |
$ 32,310,806 | |||
Building Materials — 2.1% | |||
Builders FirstSource, Inc.: | |||
4.25%, 2/1/32(4) | 20,950 | $ 16,698,239 | |
5.00%, 3/1/30(4) | 7,586 | 6,628,589 | |
Masonite International Corp., 5.375%, 2/1/28(4) | 10,664 | 9,832,795 | |
MIWD Holdco II, LLC/MIWD Finance Corp., 5.50%, 2/1/30(4) | 8,311 | 6,604,835 | |
PGT Innovations, Inc., 4.375%, 10/1/29(4) | 10,641 | 9,944,014 | |
Smyrna Ready Mix Concrete, LLC, 6.00%, 11/1/28(4) | 25,290 | 23,406,570 | |
Standard Industries, Inc.: | |||
2.25%, 11/21/26(6) | EUR | 2,250 | 2,095,029 |
3.375%, 1/15/31(4) | 1,448 | 1,097,442 | |
4.375%, 7/15/30(4) | 19,589 | 16,023,463 | |
4.75%, 1/15/28(4) | 5,000 | 4,480,298 | |
5.00%, 2/15/27(4) | 3,894 | 3,603,651 | |
$ 100,414,925 | |||
Cable & Satellite TV — 2.1% | |||
CCO Holdings, LLC/CCO Holdings Capital Corp.: | |||
4.25%, 2/1/31(4) | 9,055 | $ 7,053,599 | |
4.50%, 8/15/30(4) | 46,569 | 37,402,605 | |
4.75%, 3/1/30(4) | 23,215 | 19,183,782 | |
4.75%, 2/1/32(4) | 10,825 | 8,460,062 | |
5.375%, 6/1/29(4) | 4,414 | 3,869,487 | |
6.375%, 9/1/29(4) | 17,313 | 15,861,443 |
Security | Principal Amount* (000's omitted) | Value | |
Cable & Satellite TV (continued) | |||
DISH Network Corp., 11.75%, 11/15/27(4) | 10,514 | $ 10,423,475 | |
$ 102,254,453 | |||
Capital Goods — 1.6% | |||
Calderys Financing, LLC, 11.25%, 6/1/28(4) | 13,618 | $ 13,754,180 | |
Chart Industries, Inc., 9.50%, 1/1/31(4) | 17,766 | 18,319,854 | |
Dornoch Debt Merger Sub, Inc., 6.625%, 10/15/29(4) | 14,832 | 11,684,277 | |
Emerald Debt Merger Sub, LLC, 6.625%, 12/15/30(4) | 3,467 | 3,302,318 | |
Madison IAQ, LLC, 5.875%, 6/30/29(4) | 19,482 | 15,113,655 | |
Patrick Industries, Inc.: | |||
4.75%, 5/1/29(4) | 13,623 | 11,082,308 | |
7.50%, 10/15/27(4) | 1,955 | 1,864,317 | |
$ 75,120,909 | |||
Chemicals — 2.8% | |||
ASP Unifrax Holdings, Inc., 5.25%, 9/30/28(4) | 11,981 | $ 8,106,427 | |
Avient Corp., 7.125%, 8/1/30(4) | 14,980 | 14,428,159 | |
Compass Minerals International, Inc., 6.75%, 12/1/27(4) | 25,208 | 23,768,623 | |
NOVA Chemicals Corp.: | |||
4.25%, 5/15/29(4) | 12,262 | 9,080,634 | |
4.875%, 6/1/24(4) | 7,855 | 7,727,936 | |
Nufarm Australia, Ltd./Nufarm Americas, Inc., 5.00%, 1/27/30(4) | 16,823 | 14,612,792 | |
Olympus Water US Holding Corp., 9.75%, 11/15/28(4) | 19,150 | 18,727,761 | |
SNF Group SACA: | |||
2.625%, 2/1/29(6) | EUR | 13,094 | 12,144,145 |
2.625%, 2/1/29(4) | EUR | 1,150 | 1,066,578 |
Valvoline, Inc., 3.625%, 6/15/31(4) | 10,000 | 7,614,350 | |
W.R. Grace Holdings, LLC: | |||
4.875%, 6/15/27(4) | 12,574 | 11,311,674 | |
7.375%, 3/1/31(4) | 5,134 | 4,763,787 | |
$ 133,352,866 | |||
Consumer Products — 1.2% | |||
Acushnet Co., 7.375%, 10/15/28(4) | 7,177 | $ 7,196,988 | |
CD&R Smokey Buyer, Inc., 6.75%, 7/15/25(4) | 7,023 | 6,718,834 | |
Edgewell Personal Care Co., 4.125%, 4/1/29(4) | 12,520 | 10,486,940 | |
Energizer Gamma Acquisition B.V., 3.50%, 6/30/29(6) | EUR | 11,630 | 9,746,068 |
Spectrum Brands, Inc., 3.875%, 3/15/31(4) | 7,990 | 6,403,745 | |
Tempur Sealy International, Inc., 3.875%, 10/15/31(4) | 18,728 | 14,049,345 | |
$ 54,601,920 |
Security | Principal Amount* (000's omitted) | Value | |
Containers — 1.8% | |||
Ardagh Metal Packaging Finance USA, LLC/Ardagh Metal Packaging Finance PLC: | |||
3.00%, 9/1/29(6) | EUR | 7,900 | $ 6,190,427 |
4.00%, 9/1/29(4) | 7,805 | 5,864,476 | |
Ball Corp., 6.875%, 3/15/28 | 4,462 | 4,453,511 | |
Berry Global, Inc., 5.625%, 7/15/27(4) | 8,980 | 8,581,308 | |
Canpack S.A./Canpack US, LLC, 3.875%, 11/15/29(4) | 14,734 | 11,585,639 | |
Crown Americas, LLC/Crown Americas Capital Corp. V, 4.25%, 9/30/26 | 4,555 | 4,311,308 | |
Crown Americas, LLC/Crown Americas Capital Corp. VI, 4.75%, 2/1/26 | 5,205 | 5,011,358 | |
Owens-Brockway Glass Container, Inc., 7.25%, 5/15/31(4) | 21,663 | 19,848,724 | |
Sealed Air Corp./Sealed Air Corp. US, 6.125%, 2/1/28(4) | 2,303 | 2,194,907 | |
Trivium Packaging Finance B.V.: | |||
5.50%, 8/15/26(4) | 13,800 | 12,531,417 | |
8.50%, 8/15/27(4) | 7,640 | 6,386,444 | |
$ 86,959,519 | |||
Diversified Financial Services — 3.4% | |||
AG TTMT Escrow Issuer, LLC, 8.625%, 9/30/27(4) | 11,924 | $ 11,991,013 | |
Ally Financial, Inc., Series B, 4.70% to 5/15/26(7)(8) | 15,568 | 10,153,819 | |
Cargo Aircraft Management, Inc., 4.75%, 2/1/28(4) | 14,850 | 13,122,722 | |
Compass Group Diversified Holdings, LLC, 5.25%, 4/15/29(4) | 19,437 | 16,618,207 | |
GTCR W-2 Merger Sub, LLC, 7.50%, 1/15/31(4) | 12,373 | 12,227,617 | |
Jane Street Group/JSG Finance, Inc., 4.50%, 11/15/29(4) | 17,912 | 15,283,852 | |
Jefferson Capital Holdings, LLC, 6.00%, 8/15/26(4) | 12,728 | 11,128,560 | |
Macquarie Airfinance Holdings, Ltd., 8.125%, 3/30/29(4) | 7,534 | 7,428,562 | |
MSCI, Inc., 3.875%, 2/15/31(4) | 19,559 | 16,163,211 | |
Oxford Finance, LLC/Oxford Finance Co-Issuer II, Inc., 6.375%, 2/1/27(4) | 12,525 | 11,426,558 | |
PRA Group, Inc., 7.375%, 9/1/25(4) | 11,874 | 11,114,361 | |
PROG Holdings, Inc., 6.00%, 11/15/29(4) | 10,891 | 9,242,974 | |
Rocket Mortgage, LLC/Rocket Mortgage Co.-Issuer, Inc.: | |||
2.875%, 10/15/26(4) | 5,000 | 4,358,550 | |
3.625%, 3/1/29(4) | 15,487 | 12,606,467 | |
4.00%, 10/15/33(4) | 1,960 | 1,442,893 | |
$ 164,309,366 |
Security | Principal Amount* (000's omitted) | Value | |
Diversified Media — 2.0% | |||
Arches Buyer, Inc.: | |||
4.25%, 6/1/28(4) | 5,584 | $ 4,630,972 | |
6.125%, 12/1/28(4) | 18,713 | 15,133,484 | |
Cars.com, Inc., 6.375%, 11/1/28(4) | 15,581 | 13,884,463 | |
Clear Channel Outdoor Holdings, Inc.: | |||
5.125%, 8/15/27(4) | 12,883 | 11,461,563 | |
7.75%, 4/15/28(4) | 19,245 | 14,732,436 | |
Match Group Holdings II, LLC, 3.625%, 10/1/31(4) | 17,018 | 13,076,461 | |
Stagwell Global, LLC, 5.625%, 8/15/29(4) | 11,145 | 9,224,048 | |
TripAdvisor, Inc., 7.00%, 7/15/25(4) | 6,900 | 6,837,700 | |
Urban One, Inc., 7.375%, 2/1/28(4) | 9,378 | 7,719,645 | |
$ 96,700,772 | |||
Energy — 9.7% | |||
Aethon United BR, L.P./Aethon United Finance Corp., 8.25%, 2/15/26(4) | 7,695 | $ 7,650,138 | |
Antero Midstream Partners, L.P./Antero Midstream Finance Corp., 5.75%, 3/1/27(4) | 17,535 | 16,776,220 | |
Callon Petroleum Co.: | |||
7.50%, 6/15/30(4) | 5,657 | 5,485,303 | |
8.00%, 8/1/28(4) | 8,188 | 8,100,565 | |
Cheniere Energy Partners, L.P.: | |||
4.00%, 3/1/31 | 16,689 | 13,989,573 | |
4.50%, 10/1/29 | 10,945 | 9,808,558 | |
Civitas Resources, Inc., 8.625%, 11/1/30(4) | 4,272 | 4,352,680 | |
CrownRock, L.P./CrownRock Finance, Inc., 5.00%, 5/1/29(4) | 8,181 | 7,723,682 | |
CVR Energy, Inc., 5.75%, 2/15/28(4) | 18,358 | 16,511,277 | |
DT Midstream, Inc., 4.125%, 6/15/29(4) | 12,661 | 10,898,134 | |
Energy Transfer, L.P., 5.00%, 5/15/50 | 13,980 | 10,491,479 | |
EQM Midstream Partners, L.P.: | |||
4.50%, 1/15/29(4) | 13,348 | 11,718,823 | |
4.75%, 1/15/31(4) | 10,843 | 9,141,761 | |
6.00%, 7/1/25(4) | 2,269 | 2,221,120 | |
6.50%, 7/1/27(4) | 6,208 | 6,040,223 | |
7.50%, 6/1/30(4) | 9,265 | 9,099,999 | |
Kinetik Holdings, L.P., 5.875%, 6/15/30(4) | 17,417 | 15,998,031 | |
Neptune Energy Bondco PLC, 6.625%, 5/15/25(4) | 25,993 | 25,757,076 | |
New Fortress Energy, Inc., 6.50%, 9/30/26(4) | 17,497 | 15,688,280 | |
Occidental Petroleum Corp.: | |||
8.50%, 7/15/27 | 17,429 | 18,586,024 | |
8.875%, 7/15/30 | 14,937 | 16,600,832 | |
Parkland Corp.: | |||
4.50%, 10/1/29(4) | 4,534 | 3,904,137 | |
4.625%, 5/1/30(4) | 15,192 | 12,967,815 |
Security | Principal Amount* (000's omitted) | Value | |
Energy (continued) | |||
Permian Resources Operating, LLC: | |||
5.875%, 7/1/29(4) | 17,088 | $ 15,920,054 | |
7.00%, 1/15/32(4) | 11,393 | 11,055,286 | |
7.75%, 2/15/26(4) | 11,543 | 11,545,108 | |
Plains All American Pipeline, L.P., Series B, 9.736%, (3 mo. SOFR + 4.372%)(7)(9) | 14,008 | 13,233,542 | |
Precision Drilling Corp.: | |||
6.875%, 1/15/29(4) | 7,086 | 6,567,894 | |
7.125%, 1/15/26(4) | 4,397 | 4,336,629 | |
Seadrill Finance, Ltd., 8.375%, 8/1/30(4) | 4,763 | 4,769,716 | |
Southwestern Energy Co., 4.75%, 2/1/32 | 15,141 | 13,035,756 | |
Sunoco, L.P./Sunoco Finance Corp.: | |||
4.50%, 5/15/29 | 3,737 | 3,241,463 | |
4.50%, 4/30/30 | 17,021 | 14,555,835 | |
Superior Plus, L.P./Superior General Partner, Inc., 4.50%, 3/15/29(4) | 16,150 | 13,791,535 | |
Transocean Poseidon, Ltd., 6.875%, 2/1/27(4) | 6,020 | 5,905,384 | |
Transocean, Inc., 8.75%, 2/15/30(4) | 5,462 | 5,450,081 | |
Venture Global Calcasieu Pass, LLC, 4.125%, 8/15/31(4) | 9,904 | 7,973,035 | |
Venture Global LNG, Inc.: | |||
8.125%, 6/1/28(4) | 10,305 | 10,012,194 | |
8.375%, 6/1/31(4) | 16,491 | 15,748,905 | |
9.50%, 2/1/29(4) | 10,180 | 10,348,631 | |
9.875%, 2/1/32(4) | 10,248 | 10,397,760 | |
Vital Energy, Inc., 9.75%, 10/15/30 | 9,546 | 9,364,498 | |
Weatherford International, Ltd., 8.625%, 4/30/30(4) | 11,736 | 11,869,837 | |
Western Midstream Operating, L.P., 4.05%, 2/1/30 | 9,985 | 8,665,739 | |
$ 467,300,612 | |||
Entertainment & Film — 0.4% | |||
Cinemark USA, Inc.: | |||
5.25%, 7/15/28(4) | 15,025 | $ 12,990,122 | |
5.875%, 3/15/26(4) | 4,218 | 4,009,434 | |
8.75%, 5/1/25(4) | 1,846 | 1,867,266 | |
$ 18,866,822 | |||
Environmental — 1.8% | |||
Clean Harbors, Inc.: | |||
4.875%, 7/15/27(4) | 4,075 | $ 3,803,159 | |
5.125%, 7/15/29(4) | 4,445 | 4,002,921 | |
6.375%, 2/1/31(4) | 2,506 | 2,384,917 | |
Covanta Holding Corp.: | |||
4.875%, 12/1/29(4) | 15,831 | 12,372,560 | |
5.00%, 9/1/30 | 11,610 | 9,005,721 |
Security | Principal Amount* (000's omitted) | Value | |
Environmental (continued) | |||
GFL Environmental, Inc.: | |||
3.50%, 9/1/28(4) | 17,515 | $ 15,017,198 | |
3.75%, 8/1/25(4) | 7,155 | 6,775,231 | |
4.25%, 6/1/25(4) | 11,354 | 10,926,730 | |
4.75%, 6/15/29(4) | 26,153 | 22,920,806 | |
$ 87,209,243 | |||
Food & Drug Retail — 1.4% | |||
Albertsons Cos., Inc./Safeway, Inc./New Albertsons, L.P./Albertsons, LLC: | |||
4.875%, 2/15/30(4) | 21,488 | $ 19,208,887 | |
5.875%, 2/15/28(4) | 7,375 | 7,071,694 | |
7.50%, 3/15/26(4) | 4,000 | 4,067,442 | |
Arko Corp., 5.125%, 11/15/29(4) | 19,751 | 16,035,442 | |
Ingles Markets, Inc., 4.00%, 6/15/31(4) | 14,760 | 11,752,207 | |
Murphy Oil USA, Inc., 5.625%, 5/1/27 | 8,700 | 8,417,946 | |
$ 66,553,618 | |||
Food, Beverage & Tobacco — 2.2% | |||
BellRing Brands, Inc., 7.00%, 3/15/30(4) | 14,672 | $ 14,265,292 | |
Chobani, LLC/Chobani Finance Corp., Inc., 7.50%, 4/15/25(4) | 14,536 | 14,292,359 | |
Darling Ingredients, Inc., 6.00%, 6/15/30(4) | 16,233 | 15,245,214 | |
Herbalife Nutrition, Ltd./HLF Financing, Inc., 7.875%, 9/1/25(4) | 9,153 | 8,622,034 | |
Performance Food Group, Inc.: | |||
4.25%, 8/1/29(4) | 24,007 | 20,281,726 | |
6.875%, 5/1/25(4) | 4,425 | 4,407,145 | |
Pilgrim's Pride Corp., 3.50%, 3/1/32 | 20,222 | 15,430,195 | |
US Foods, Inc., 4.75%, 2/15/29(4) | 16,081 | 14,201,166 | |
$ 106,745,131 | |||
Gaming — 2.7% | |||
Allwyn Entertainment Financing UK PLC, 7.875%, 4/30/29(4) | 14,436 | $ 14,305,499 | |
Caesars Entertainment, Inc.: | |||
4.625%, 10/15/29(4) | 5,260 | 4,328,146 | |
6.25%, 7/1/25(4) | 12,288 | 12,099,776 | |
7.00%, 2/15/30(4) | 6,530 | 6,308,098 | |
8.125%, 7/1/27(4) | 23,616 | 23,419,491 | |
CDI Escrow Issuer, Inc., 5.75%, 4/1/30(4) | 15,610 | 13,962,283 | |
Fertitta Entertainment, LLC/Fertitta Entertainment Finance Co., Inc., 4.625%, 1/15/29(4) | 7,727 | 6,501,614 | |
International Game Technology PLC: | |||
5.25%, 1/15/29(4) | 5,000 | 4,553,950 |
Security | Principal Amount* (000's omitted) | Value | |
Gaming (continued) | |||
International Game Technology PLC: (continued) | |||
6.25%, 1/15/27(4) | 10,017 | $ 9,771,601 | |
6.50%, 2/15/25(4) | 3,777 | 3,755,141 | |
Jacobs Entertainment, Inc., 6.75%, 2/15/29(4) | 16,811 | 14,303,976 | |
Light & Wonder International, Inc., 7.00%, 5/15/28(4) | 16,866 | 16,456,804 | |
$ 129,766,379 | |||
Healthcare — 9.1% | |||
AHP Health Partners, Inc., 5.75%, 7/15/29(4) | 5,639 | $ 4,629,281 | |
athenahealth Group, Inc., 6.50%, 2/15/30(4) | 21,339 | 17,456,815 | |
Avantor Funding, Inc., 3.875%, 7/15/28(6) | EUR | 10,850 | 10,518,906 |
Bausch & Lomb Escrow Corp., 8.375%, 10/1/28(4) | 12,345 | 12,277,102 | |
Catalent Pharma Solutions, Inc., 3.50%, 4/1/30(4) | 17,981 | 14,132,526 | |
Centene Corp.: | |||
3.375%, 2/15/30 | 11,732 | 9,711,152 | |
4.625%, 12/15/29 | 7,310 | 6,536,169 | |
Endo DAC/Endo Finance, LLC/Endo Finco, Inc., 5.875%, 10/15/24(4)(5) | 6,987 | 4,698,757 | |
Endo Luxembourg Finance Co. I S.a.r.l./Endo US, Inc., 6.125%, 4/1/29(4)(5) | 15,196 | 10,045,392 | |
Fortrea Holdings, Inc., 7.50%, 7/1/30(4) | 17,669 | 17,072,671 | |
Grifols Escrow Issuer S.A., 4.75%, 10/15/28(4) | 19,694 | 16,559,897 | |
HCA, Inc., 5.625%, 9/1/28 | 8,537 | 8,262,463 | |
HealthEquity, Inc., 4.50%, 10/1/29(4) | 21,262 | 18,239,594 | |
Heartland Dental, LLC/Heartland Dental Finance Corp., 10.50%, 4/30/28(4) | 28,114 | 27,056,351 | |
IQVIA, Inc.: | |||
2.25%, 3/15/29(6) | EUR | 6,633 | 5,912,332 |
5.00%, 5/15/27(4) | 10,124 | 9,535,024 | |
6.50%, 5/15/30(4) | 7,663 | 7,442,689 | |
Legacy LifePoint Health, LLC, 4.375%, 2/15/27(4) | 6,907 | 5,717,822 | |
LifePoint Health, Inc.: | |||
5.375%, 1/15/29(4) | 24,350 | 14,776,391 | |
9.875%, 8/15/30(4) | 7,680 | 6,950,400 | |
Medline Borrower, L.P., 5.25%, 10/1/29(4) | 35,802 | 30,510,707 | |
ModivCare Escrow Issuer, Inc., 5.00%, 10/1/29(4) | 9,708 | 7,084,898 | |
ModivCare, Inc., 5.875%, 11/15/25(4) | 12,847 | 12,154,033 | |
Molina Healthcare, Inc.: | |||
3.875%, 11/15/30(4) | 17,921 | 14,637,780 | |
3.875%, 5/15/32(4) | 7,551 | 5,942,293 | |
Option Care Health, Inc., 4.375%, 10/31/29(4) | 19,183 | 16,053,822 | |
P&L Development, LLC/PLD Finance Corp., 7.75%, 11/15/25(4) | 13,000 | 8,744,515 | |
Perrigo Finance Unlimited Co.:��� | |||
4.65%, 6/15/30 | 16,473 | 13,774,854 |
Security | Principal Amount* (000's omitted) | Value | |
Healthcare (continued) | |||
Perrigo Finance Unlimited Co.: (continued) | |||
4.90%, 12/15/44 | 5,483 | $ 3,751,270 | |
RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc., 9.75%, 12/1/26(4) | 5,995 | 5,611,384 | |
Team Health Holdings, Inc., 6.375%, 2/1/25(4) | 18,643 | 14,792,661 | |
Tenet Healthcare Corp.: | |||
4.375%, 1/15/30 | 2,305 | 1,951,811 | |
4.875%, 1/1/26 | 11,694 | 11,218,335 | |
5.125%, 11/1/27 | 11,694 | 10,806,277 | |
6.125%, 10/1/28 | 15,216 | 14,126,230 | |
6.875%, 11/15/31 | 8,334 | 7,693,127 | |
US Acute Care Solutions, LLC, 6.375%, 3/1/26(4) | 24,976 | 21,273,163 | |
Varex Imaging Corp., 7.875%, 10/15/27(4) | 9,507 | 9,329,258 | |
$ 436,988,152 | |||
Homebuilders & Real Estate — 3.2% | |||
Ashton Woods USA, LLC/Ashton Woods Finance Co.: | |||
4.625%, 8/1/29(4) | 6,872 | $ 5,567,323 | |
4.625%, 4/1/30(4) | 3,622 | 2,808,058 | |
Brundage-Bone Concrete Pumping Holdings, Inc., 6.00%, 2/1/26(4) | 10,253 | 9,704,772 | |
CTR Partnership, L.P./CareTrust Capital Corp., 3.875%, 6/30/28(4) | 18,233 | 15,339,248 | |
Cushman & Wakefield US Borrower, LLC, 8.875%, 9/1/31(4) | 8,094 | 7,681,570 | |
Greystar Real Estate Partners, LLC, 7.75%, 9/1/30(4) | 17,181 | 16,902,925 | |
HAT Holdings I, LLC/HAT Holdings II, LLC: | |||
3.375%, 6/15/26(4) | 12,725 | 11,214,966 | |
3.75%, 9/15/30(4) | 12,698 | 9,129,015 | |
KB Home: | |||
4.00%, 6/15/31 | 751 | 587,343 | |
4.80%, 11/15/29 | 4,873 | 4,227,839 | |
M/I Homes, Inc., 4.95%, 2/1/28 | 10,706 | 9,585,450 | |
Outfront Media Capital, LLC/Outfront Media Capital Corp.: | |||
4.625%, 3/15/30(4) | 9,021 | 7,248,058 | |
6.25%, 6/15/25(4) | 8,819 | 8,706,205 | |
TopBuild Corp., 4.125%, 2/15/32(4) | 16,235 | 12,865,020 | |
VICI Properties, L.P./VICI Note Co., Inc.: | |||
3.75%, 2/15/27(4) | 2,441 | 2,198,731 | |
4.50%, 9/1/26(4) | 6,735 | 6,293,386 | |
4.625%, 12/1/29(4) | 8,800 | 7,620,099 | |
5.625%, 5/1/24(4) | 11,505 | 11,437,107 | |
5.75%, 2/1/27(4) | 4,084 | 3,912,467 | |
$ 153,029,582 |
Security | Principal Amount* (000's omitted) | Value | |
Hotels — 0.2% | |||
Resorts World Las Vegas, LLC/RWLV Capital, Inc.: | |||
4.625%, 4/16/29(6) | 3,700 | $ 2,845,485 | |
4.625%, 4/6/31(6) | 3,800 | 2,683,161 | |
8.45%, 7/27/30(4) | 6,100 | 5,630,412 | |
$ 11,159,058 | |||
Insurance — 1.1% | |||
Alliant Holdings Intermediate, LLC/Alliant Holdings Co-Issuer, 6.75%, 10/15/27(4) | 11,642 | $ 10,642,302 | |
BroadStreet Partners, Inc., 5.875%, 4/15/29(4) | 19,110 | 16,678,098 | |
GTCR AP Finance, Inc., 8.00%, 5/15/27(4) | 11,039 | 10,757,737 | |
Jones DesLauriers Insurance Management, Inc., 10.50%, 12/15/30(4) | 14,593 | 14,497,308 | |
$ 52,575,445 | |||
Leisure — 3.2% | |||
Boyne USA, Inc., 4.75%, 5/15/29(4) | 16,532 | $ 14,409,404 | |
Life Time, Inc.: | |||
5.75%, 1/15/26(4) | 12,585 | 12,199,435 | |
8.00%, 4/15/26(4) | 8,977 | 8,760,026 | |
Lindblad Expeditions Holdings, Inc., 9.00%, 5/15/28(4) | 6,583 | 6,338,152 | |
Lindblad Expeditions, LLC, 6.75%, 2/15/27(4) | 3,551 | 3,239,151 | |
NCL Corp., Ltd.: | |||
3.625%, 12/15/24(4) | 3,590 | 3,398,730 | |
5.875%, 3/15/26(4) | 6,558 | 5,891,642 | |
5.875%, 2/15/27(4) | 5,378 | 4,955,688 | |
7.75%, 2/15/29(4) | 4,500 | 3,931,087 | |
NCL Finance, Ltd., 6.125%, 3/15/28(4) | 13,824 | 11,571,820 | |
Royal Caribbean Cruises, Ltd., 11.625%, 8/15/27(4) | 13,833 | 15,016,275 | |
SeaWorld Parks & Entertainment, Inc., 5.25%, 8/15/29(4) | 15,950 | 13,909,995 | |
Speedway Motorsports, LLC/Speedway Funding II, Inc., 4.875%, 11/1/27(4) | 13,899 | 12,419,243 | |
Viking Cruises, Ltd.: | |||
5.875%, 9/15/27(4) | 23,162 | 20,887,607 | |
6.25%, 5/15/25(4) | 8,680 | 8,489,971 | |
7.00%, 2/15/29(4) | 6,622 | 5,998,505 | |
Viking Ocean Cruises Ship VII, Ltd., 5.625%, 2/15/29(4) | 4,238 | 3,760,547 | |
$ 155,177,278 | |||
Metals & Mining — 1.8% | |||
Eldorado Gold Corp., 6.25%, 9/1/29(4) | 13,023 | $ 11,182,975 | |
First Quantum Minerals, Ltd., 7.50%, 4/1/25(4) | 7,225 | 6,788,170 |
Security | Principal Amount* (000's omitted) | Value | |
Metals & Mining (continued) | |||
Freeport-McMoRan, Inc., 5.45%, 3/15/43 | 13,849 | $ 11,413,378 | |
Hudbay Minerals, Inc.: | |||
4.50%, 4/1/26(4) | 9,000 | 8,385,744 | |
6.125%, 4/1/29(4) | 5,478 | 4,908,603 | |
New Gold, Inc., 7.50%, 7/15/27(4) | 11,554 | 10,852,731 | |
Novelis Corp.: | |||
3.25%, 11/15/26(4) | 6,885 | 6,136,476 | |
4.75%, 1/30/30(4) | 15,432 | 13,110,169 | |
Roller Bearing Co. of America, Inc., 4.375%, 10/15/29(4) | 13,918 | 11,820,001 | |
$ 84,598,247 | |||
Paper — 0.3% | |||
Enviva Partners, L.P./Enviva Partners Finance Corp., 6.50%, 1/15/26(4) | 17,646 | $ 12,415,637 | |
$ 12,415,637 | |||
Publishing & Printing — 0.6% | |||
LABL, Inc.: | |||
5.875%, 11/1/28(4) | 5,099 | $ 4,324,569 | |
8.25%, 11/1/29(4) | 10,223 | 7,609,746 | |
McGraw-Hill Education, Inc.: | |||
5.75%, 8/1/28(4) | 4,355 | 3,675,185 | |
8.00%, 8/1/29(4) | 18,085 | 14,925,550 | |
$ 30,535,050 | |||
Railroad — 0.3% | |||
Watco Cos., LLC/Watco Finance Corp., 6.50%, 6/15/27(4) | 16,000 | $ 14,924,709 | |
$ 14,924,709 | |||
Restaurant — 1.8% | |||
1011778 B.C. Unlimited Liability Company/New Red Finance, Inc.: | |||
3.875%, 1/15/28(4) | 17,005 | $ 15,196,816 | |
4.00%, 10/15/30(4) | 21,200 | 17,383,519 | |
4.375%, 1/15/28(4) | 7,702 | 6,941,825 | |
5.75%, 4/15/25(4) | 2,861 | 2,840,315 | |
Dave & Buster's, Inc., 7.625%, 11/1/25(4) | 22,970 | 22,820,925 | |
IRB Holding Corp., 7.00%, 6/15/25(4) | 11,951 | 11,872,653 | |
Yum! Brands, Inc., 3.625%, 3/15/31 | 12,686 | 10,314,825 | |
$ 87,370,878 | |||
Services — 6.5% | |||
Adtalem Global Education, Inc., 5.50%, 3/1/28(4) | 16,268 | $ 14,831,855 |
Security | Principal Amount* (000's omitted) | Value | |
Services (continued) | |||
Allied Universal Holdco, LLC/Allied Universal Finance Corp.: | |||
6.625%, 7/15/26(4) | 16,803 | $ 15,749,869 | |
9.75%, 7/15/27(4) | 14,398 | 12,522,892 | |
Allied Universal Holdco, LLC/Allied Universal Finance Corp./Atlas Luxco 4 S.a.r.l., 4.625%, 6/1/28(4) | 7,816 | 6,376,662 | |
APi Group DE, Inc., 4.75%, 10/15/29(4) | 14,613 | 12,528,181 | |
BCPE Empire Holdings, Inc., 7.625%, 5/1/27(4) | 26,310 | 24,156,658 | |
Clarivate Science Holdings Corp., 4.875%, 7/1/29(4) | 19,324 | 16,322,019 | |
Gartner, Inc.: | |||
3.625%, 6/15/29(4) | 4,186 | 3,539,357 | |
3.75%, 10/1/30(4) | 8,478 | 7,029,827 | |
4.50%, 7/1/28(4) | 8,049 | 7,253,988 | |
GEMS MENASA Cayman, Ltd./GEMS Education Delaware, LLC, 7.125%, 7/31/26(4) | 24,846 | 23,942,102 | |
Hertz Corp. (The): | |||
4.625%, 12/1/26(4) | 2,214 | 1,856,614 | |
5.00%, 12/1/29(4) | 17,844 | 12,832,946 | |
Imola Merger Corp., 4.75%, 5/15/29(4) | 20,535 | 17,920,034 | |
Korn Ferry, 4.625%, 12/15/27(4) | 12,207 | 11,115,870 | |
Ritchie Bros Holdings, Inc.: | |||
6.75%, 3/15/28(4) | 4,959 | 4,865,910 | |
7.75%, 3/15/31(4) | 8,828 | 8,861,105 | |
SRS Distribution, Inc.: | |||
6.00%, 12/1/29(4) | 7,389 | 6,159,249 | |
6.125%, 7/1/29(4) | 12,045 | 10,098,709 | |
Summer (BC) Bidco B, LLC, 5.50%, 10/31/26(4) | 14,099 | 12,290,169 | |
VT Topco, Inc., 8.50%, 8/15/30(4) | 17,525 | 17,113,951 | |
WASH Multifamily Acquisition, Inc., 5.75%, 4/15/26(4) | 24,413 | 22,604,241 | |
WESCO Distribution, Inc., 7.25%, 6/15/28(4) | 7,946 | 7,904,046 | |
White Cap Buyer, LLC, 6.875%, 10/15/28(4) | 9,787 | 8,551,244 | |
White Cap Parent, LLC, 8.25%, (8.25% cash or 9.00% PIK), 3/15/26(4)(10) | 6,938 | 6,517,806 | |
Windsor Holdings III, LLC, 8.50%, 6/15/30(4) | 19,112 | 18,628,782 | |
$ 311,574,086 | |||
Steel — 0.8% | |||
Allegheny Ludlum, LLC, 6.95%, 12/15/25 | 9,369 | $ 9,339,769 | |
ATI, Inc., 5.875%, 12/1/27 | 2,447 | 2,272,982 | |
Big River Steel, LLC/BRS Finance Corp., 6.625%, 1/31/29(4) | 5,508 | 5,446,806 | |
Cleveland-Cliffs, Inc., 6.75%, 3/15/26(4) | 9,527 | 9,482,909 | |
TMS International Corp., 6.25%, 4/15/29(4) | 11,257 | 8,893,001 | |
$ 35,435,467 |
Security | Principal Amount* (000's omitted) | Value | |
Super Retail — 3.5% | |||
Asbury Automotive Group, Inc.: | |||
4.625%, 11/15/29(4) | 5,184 | $ 4,391,686 | |
4.75%, 3/1/30 | 8,395 | 7,134,734 | |
5.00%, 2/15/32(4) | 2,178 | 1,768,767 | |
Bath & Body Works, Inc.: | |||
6.75%, 7/1/36 | 3,883 | 3,353,253 | |
6.875%, 11/1/35 | 1,677 | 1,481,574 | |
6.95%, 3/1/33 | 9,848 | 8,525,686 | |
7.60%, 7/15/37 | 1,014 | 860,792 | |
9.375%, 7/1/25(4) | 1,599 | 1,648,366 | |
Evergreen AcqCo 1, L.P./TVI, Inc., 9.75%, 4/26/28(4) | 18,875 | 19,063,278 | |
Group 1 Automotive, Inc., 4.00%, 8/15/28(4) | 10,459 | 9,013,748 | |
Ken Garff Automotive, LLC, 4.875%, 9/15/28(4) | 7,199 | 6,094,886 | |
Kohl's Corp., 4.625%, 5/1/31 | 7,623 | 5,220,993 | |
LCM Investments Holdings II, LLC: | |||
4.875%, 5/1/29(4) | 13,822 | 11,597,731 | |
8.25%, 8/1/31(4) | 2,443 | 2,326,229 | |
Lithia Motors, Inc.: | |||
3.875%, 6/1/29(4) | 6,549 | 5,425,159 | |
4.375%, 1/15/31(4) | 9,784 | 7,931,883 | |
4.625%, 12/15/27(4) | 3,872 | 3,497,434 | |
Macy's Retail Holdings, LLC, 5.875%, 4/1/29(4) | 5,280 | 4,660,260 | |
Metis Merger Sub, LLC, 6.50%, 5/15/29(4) | 26,552 | 21,724,359 | |
PetSmart, Inc./PetSmart Finance Corp.: | |||
4.75%, 2/15/28(4) | 10,291 | 9,117,400 | |
7.75%, 2/15/29(4) | 17,595 | 16,215,680 | |
Sonic Automotive, Inc.: | |||
4.625%, 11/15/29(4) | 11,575 | 9,651,172 | |
4.875%, 11/15/31(4) | 9,394 | 7,492,813 | |
$ 168,197,883 | |||
Technology — 5.4% | |||
Black Knight InfoServ, LLC, 3.625%, 9/1/28(4) | 8,750 | $ 7,809,375 | |
Booz Allen Hamilton, Inc.: | |||
3.875%, 9/1/28(4) | 17,280 | 15,459,984 | |
4.00%, 7/1/29(4) | 7,232 | 6,390,448 | |
Central Parent, LLC/CDK Global II, LLC/CDK Financing Co., Inc., 8.00%, 6/15/29(4) | 9,994 | 9,881,544 | |
Ciena Corp., 4.00%, 1/31/30(4) | 13,145 | 10,967,728 | |
Clarios Global, L.P., 6.75%, 5/15/25(4) | 3,642 | 3,616,589 | |
Clarios Global, L.P./Clarios US Finance Co.: | |||
4.375%, 5/15/26(6) | EUR | 23,968 | 24,331,442 |
8.50%, 5/15/27(4) | 15,107 | 14,902,297 | |
Cloud Software Group, Inc.: | |||
6.50%, 3/31/29(4) | 9,170 | 8,059,584 |
Security | Principal Amount* (000's omitted) | Value | |
Technology (continued) | |||
Cloud Software Group, Inc.: (continued) | |||
9.00%, 9/30/29(4) | 15,626 | $ 13,321,243 | |
Coherent Corp., 5.00%, 12/15/29(4) | 16,235 | 13,798,532 | |
Fair Isaac Corp., 4.00%, 6/15/28(4) | 13,114 | 11,692,679 | |
McAfee Corp., 7.375%, 2/15/30(4) | 16,715 | 13,386,552 | |
NCR Voyix Corp.: | |||
5.125%, 4/15/29(4) | 10,574 | 9,104,128 | |
5.25%, 10/1/30(4) | 4,173 | 3,460,507 | |
ON Semiconductor Corp., 3.875%, 9/1/28(4) | 14,229 | 12,239,288 | |
Open Text Corp., 3.875%, 2/15/28(4) | 7,623 | 6,633,991 | |
Open Text Holdings, Inc., 4.125%, 2/15/30(4) | 6,669 | 5,534,296 | |
Presidio Holdings, Inc.: | |||
4.875%, 2/1/27(4) | 1,858 | 1,704,663 | |
8.25%, 2/1/28(4) | 22,823 | 21,620,191 | |
Seagate HDD Cayman: | |||
4.091%, 6/1/29 | 3,423 | 2,954,738 | |
9.625%, 12/1/32(4) | 7,137 | 7,615,778 | |
Sensata Technologies B.V., 5.00%, 10/1/25(4) | 593 | 577,204 | |
Sensata Technologies, Inc., 3.75%, 2/15/31(4) | 15,394 | 12,341,400 | |
Viavi Solutions, Inc., 3.75%, 10/1/29(4) | 8,715 | 6,793,415 | |
VM Consolidated, Inc., 5.50%, 4/15/29(4) | 18,612 | 16,500,190 | |
$ 260,697,786 | |||
Telecommunications — 3.2% | |||
Altice Financing S.A., 5.00%, 1/15/28(4) | 8,109 | $ 6,601,388 | |
Altice France S.A.: | |||
5.125%, 7/15/29(4) | 7,505 | 5,143,525 | |
5.50%, 1/15/28(4) | 6,163 | 4,585,040 | |
8.125%, 2/1/27(4) | 13,848 | 11,689,100 | |
Connect Finco S.a.r.l./Connect US Finco, LLC, 6.75%, 10/1/26(4) | 25,353 | 23,661,604 | |
Iliad Holding SASU: | |||
6.50%, 10/15/26(4) | 13,526 | 12,651,566 | |
7.00%, 10/15/28(4) | 4,558 | 4,128,442 | |
LCPR Senior Secured Financing DAC: | |||
5.125%, 7/15/29(4) | 8,082 | 6,304,126 | |
6.75%, 10/15/27(4) | 3,785 | 3,429,286 | |
Level 3 Financing, Inc., 4.25%, 7/1/28(4) | 16,265 | 9,212,545 | |
Sprint Capital Corp., 6.875%, 11/15/28 | 15,675 | 16,098,397 | |
Sprint, LLC: | |||
7.625%, 2/15/25 | 14,960 | 15,184,789 | |
7.625%, 3/1/26 | 6,584 | 6,766,759 | |
Viasat, Inc., 5.625%, 4/15/27(4) | 4,544 | 3,971,047 | |
Virgin Media Finance PLC, 5.00%, 7/15/30(4) | 5,464 | 4,301,116 |
Security | Principal Amount* (000's omitted) | Value | |
Telecommunications (continued) | |||
Virgin Media Vendor Financing Notes III DAC, 4.875%, 7/15/28(6) | GBP | 7,258 | $ 7,419,138 |
Virgin Media Vendor Financing Notes IV DAC, 5.00%, 7/15/28(4) | 11,193 | 9,512,600 | |
Ziggo B.V., 4.875%, 1/15/30(4) | 5,296 | 4,234,462 | |
$ 154,894,930 | |||
Transport Excluding Air & Rail — 0.3% | |||
Seaspan Corp., 5.50%, 8/1/29(4) | 16,368 | $ 12,573,570 | |
$ 12,573,570 | |||
Utility — 3.5% | |||
Calpine Corp.: | |||
4.50%, 2/15/28(4) | 8,179 | $ 7,382,598 | |
5.00%, 2/1/31(4) | 11,673 | 9,426,916 | |
5.125%, 3/15/28(4) | 11,510 | 10,311,601 | |
5.25%, 6/1/26(4) | 2,399 | 2,298,219 | |
Ferrellgas, L.P./Ferrellgas Finance Corp., 5.875%, 4/1/29(4) | 14,522 | 12,827,920 | |
FirstEnergy Corp.: | |||
2.65%, 3/1/30 | 4,218 | 3,406,386 | |
Series B, 4.15%, 7/15/27 | 15,324 | 14,196,558 | |
Leeward Renewable Energy Operations, LLC, 4.25%, 7/1/29(4) | 8,263 | 6,758,153 | |
NRG Energy, Inc.: | |||
3.375%, 2/15/29(4) | 6,548 | 5,337,092 | |
3.625%, 2/15/31(4) | 10,913 | 8,248,884 | |
3.875%, 2/15/32(4) | 8,645 | 6,437,499 | |
5.25%, 6/15/29(4) | 4,920 | 4,346,380 | |
10.25% to 3/15/28(4)(7)(8) | 12,034 | 11,629,986 | |
Pattern Energy Operations, L.P./Pattern Energy Operations, Inc., 4.50%, 8/15/28(4) | 10,699 | 9,336,831 | |
Suburban Propane Partners, L.P./Suburban Energy Finance Corp., 5.00%, 6/1/31(4) | 12,331 | 10,226,700 | |
TerraForm Power Operating, LLC: | |||
4.75%, 1/15/30(4) | 5,000 | 4,230,800 | |
5.00%, 1/31/28(4) | 13,722 | 12,584,515 | |
TransAlta Corp., 7.75%, 11/15/29 | 13,791 | 13,736,151 | |
Vistra Operations Co., LLC: | |||
4.375%, 5/1/29(4) | 9,360 | 7,960,774 | |
5.00%, 7/31/27(4) | 9,285 | 8,502,241 | |
$ 169,186,204 | |||
Total Corporate Bonds (identified cost $4,691,465,468) | $4,198,965,974 |
Preferred Stocks — 0.5% |
Security | Shares | Value | |
Services — 0.5% | |||
WESCO International, Inc., Series A, 10.625% to 6/22/25(8) | 898,591 | $ 23,956,436 | |
Total Preferred Stocks (identified cost $25,216,937) | $ 23,956,436 |
Senior Floating-Rate Loans — 5.5%(11) |
Borrower/Description | Principal Amount (000's omitted) | Value | |
Aerospace — 0.3% | |||
TransDigm, Inc., Term Loan, 8.64%, (SOFR + 3.25%), 8/24/28 | $ | 14,962 | $ 14,959,533 |
$ 14,959,533 | |||
Air Transportation — 0.8% | |||
Air Canada, Term Loan, 9.128%, (SOFR + 3.50%), 8/11/28 | $ | 12,317 | $ 12,313,538 |
Mileage Plus Holdings, LLC, Term Loan, 10.798%, (SOFR + 5.25%), 6/21/27 | 17,258 | 17,804,225 | |
SkyMiles IP, Ltd., Term Loan, 9.166%, (SOFR + 3.75%), 10/20/27 | 5,439 | 5,576,491 | |
$ 35,694,254 | |||
Broadcasting — 0.1% | |||
ABG Intermediate Holdings 2, LLC, Term Loan, 8.924%, (SOFR + 3.50%), 12/21/28 | $ | 5,812 | $ 5,806,656 |
$ 5,806,656 | |||
Capital Goods — 0.2% | |||
DexKo Global, Inc., Term Loan, 9.64%, (SOFR + 4.25%), 10/4/28 | $ | 6,934 | $ 6,715,149 |
EMRLD Borrower, L.P., Term Loan, 8.38%, (SOFR + 3.00%), 5/31/30 | 4,069 | 4,066,576 | |
$ 10,781,725 | |||
Gaming — 0.5% | |||
Peninsula Pacific Entertainment, LLC, Term Loan, 13.00%, 12/24/29(12) | $ | 9,952 | $ 9,952,156 |
Spectacle Gary Holdings, LLC, Term Loan, 9.674%, (SOFR + 4.25%), 12/10/28 | 15,926 | 15,562,743 | |
$ 25,514,899 |
Borrower/Description | Principal Amount (000's omitted) | Value | |
Healthcare — 1.0% | |||
Jazz Financing Lux S.a.r.l., Term Loan, 8.939%, (SOFR + 3.50%), 5/5/28 | $ | 16,409 | $ 16,426,800 |
Pluto Acquisition I, Inc., Term Loan, 9.684%, (SOFR + 4.00%), 6/22/26 | 19,216 | 16,333,293 | |
Verscend Holding Corp., Term Loan, 9.439%, (SOFR + 4.00%), 8/27/25 | 17,017 | 17,028,920 | |
$ 49,789,013 | |||
Leisure — 0.2% | |||
Peloton Interactive, Inc., Term Loan, 12.263%, (SOFR + 6.50%), 5/25/27 | $ | 10,204 | $ 10,265,061 |
$ 10,265,061 | |||
Restaurant — 0.3% | |||
IRB Holding Corp., Term Loan, 12/15/27(13) | $ | 15,360 | $ 15,213,811 |
$ 15,213,811 | |||
Services — 0.6% | |||
AlixPartners, LLP, Term Loan, 8.189%, (SOFR + 2.75%), 2/4/28 | $ | 20,430 | $ 20,431,760 |
Spin Holdco, Inc., Term Loan, 9.664%, (SOFR + 4.00%), 3/4/28 | 7,762 | 6,672,534 | |
$ 27,104,294 | |||
Super Retail — 0.9% | |||
Mavis Tire Express Services Corp., Term Loan, 9.439%, (SOFR + 4.00%), 5/4/28 | $ | 10,677 | $ 10,536,562 |
Michaels Companies, Inc., Term Loan, 9.902%, (SOFR + 4.25%), 4/15/28 | 8,285 | 6,944,826 | |
PetSmart, Inc., Term Loan, 9.174%, (SOFR + 3.75%), 2/11/28 | 23,536 | 23,302,977 | |
$ 40,784,365 | |||
Technology — 0.6% | |||
Clarios Global, L.P., Term Loan, 9.074%, (SOFR + 3.75%), 5/6/30 | $ | 8,548 | $ 8,545,333 |
Riverbed Technology, Inc., Term Loan, 9.891%, (SOFR + 4.50%), 7/1/28 | 3,522 | 2,301,281 | |
Travelport Finance (Luxembourg) S.a.r.l., Term Loan, 12.652%, (SOFR + 7.00%), 2/28/25 | 18,896 | 18,010,615 | |
$ 28,857,229 | |||
Total Senior Floating-Rate Loans (identified cost $269,050,645) | $ 264,770,840 |
Miscellaneous — 0.3% |
Security | Principal Amount/ Shares | Value | |
Cable & Satellite TV — 0.0% | |||
ACC Claims Holdings, LLC, Exp. 4/26/23(2) | 11,599,560 | $ 0 | |
$ 0 | |||
Diversified Media — 0.0% | |||
National CineMedia, Inc., Escrow Certificates(1)(2) | $ | 12,070,000 | $ 0 |
$ 0 | |||
Gaming — 0.3% | |||
PGP Investors, LLC, Membership Interests(1)(2)(3) | 57,265 | $ 15,908,514 | |
$ 15,908,514 | |||
Services — 0.0%(14) | |||
Hertz Corp., Escrow Certificates(1) | $ | 3,679,000 | $ 331,110 |
$ 331,110 | |||
Total Miscellaneous (identified cost $0) | $ 16,239,624 |
Short-Term Investments — 3.3% |
Security | Shares | Value | |
Morgan Stanley Institutional Liquidity Funds - Government Portfolio, Institutional Class, 5.25%(15) | 161,394,075 | $ 161,394,075 | |
Total Short-Term Investments (identified cost $161,394,075) | $ 161,394,075 | ||
Total Investments — 98.5% (identified cost $5,207,075,333) | $4,729,975,956 | ||
Other Assets, Less Liabilities — 1.5% | $ 70,087,674 | ||
Net Assets — 100.0% | $4,800,063,630 |
The percentage shown for each investment category in the Portfolio of Investments is based on net assets. | |
* | In U.S. dollars unless otherwise indicated. |
(1) | Non-income producing security. |
(2) | For fair value measurement disclosure purposes, security is categorized as Level 3 (see Note 12). |
(3) | Restricted security (see Note 8). |
(4) | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be sold in certain transactions in reliance on an exemption from registration (normally to qualified institutional buyers). At October 31, 2023, the aggregate value of these securities is $3,559,136,149 or 74.1% of the Fund's net assets. |
(5) | Issuer is in default with respect to interest and/or principal payments. |
(6) | Security exempt from registration under Regulation S of the Securities Act of 1933, as amended, which exempts from registration securities offered and sold outside the United States. Security may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933, as amended. At October 31, 2023, the aggregate value of these securities is $83,886,133 or 1.7% of the Fund's net assets. |
(7) | Perpetual security with no stated maturity date but may be subject to calls by the issuer. |
(8) | Security converts to variable rate after the indicated fixed-rate coupon period. |
(9) | Variable rate security. The stated interest rate represents the rate in effect at October 31, 2023. |
(10) | Represents a payment-in-kind security which may pay interest in additional principal at the issuer’s discretion. |
(11) | Senior floating-rate loans (Senior Loans) often require prepayments from excess cash flows or permit the borrowers to repay at their election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, Senior Loans will typically have an expected average life of approximately two to four years. Senior Loans typically have rates of interest which are redetermined periodically by reference to a base lending rate, plus a spread. These base lending rates are primarily the Secured Overnight Financing Rate (“SOFR”) (or the London Interbank Offered Rate (“LIBOR”) for those loans whose rates reset prior to the discontinuance of LIBOR on June 30, 2023) and secondarily, the prime rate offered by one or more major United States banks (the “Prime Rate”). Base lending rates may be subject to a floor, or minimum rate. Rates for SOFR are generally 1 or 3-month tenors and may also be subject to a credit spread adjustment. Senior Loans are generally subject to contractual restrictions that must be satisfied before they can be bought or sold. |
(12) | Fixed-rate loan. |
(13) | This Senior Loan will settle after October 31, 2023, at which time the interest rate will be determined. |
(14) | Amount is less than 0.05%. |
(15) | May be deemed to be an affiliated investment company. The rate shown is the annualized seven-day yield as of October 31, 2023. |
Forward Foreign Currency Exchange Contracts (OTC) | |||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized (Depreciation) | ||
USD | 34,290,276 | EUR | 32,250,102 | State Street Bank and Trust Company | 1/31/24 | $ 20,449 | $ — |
USD | 38,731,467 | EUR | 36,460,702 | State Street Bank and Trust Company | 1/31/24 | — | (12,657) |
USD | 7,459,357 | GBP | 6,134,371 | State Street Bank and Trust Company | 1/31/24 | — | (2,087) |
$20,449 | $(14,744) |
Abbreviations: | |
OTC | – Over-the-counter |
PIK | – Payment In Kind |
SOFR | – Secured Overnight Financing Rate |
Currency Abbreviations: | |
EUR | – Euro |
GBP | – British Pound Sterling |
USD | – United States Dollar |
October 31, 2023 | |
Assets | |
Unaffiliated investments, at value (identified cost $5,045,681,258) | $ 4,568,581,881 |
Affiliated investments, at value (identified cost $161,394,075) | 161,394,075 |
Cash | 158,342 |
Deposits for derivatives collateral — forward foreign currency exchange contracts | 350,000 |
Foreign currency, at value (identified cost $2,663) | 2,666 |
Interest receivable | 75,913,571 |
Dividends receivable from affiliated investments | 834,558 |
Receivable for investments sold | 23,423,438 |
Receivable for Fund shares sold | 12,403,127 |
Receivable for open forward foreign currency exchange contracts | 20,449 |
Receivable from affiliates | 224,974 |
Trustees' deferred compensation plan | 268,475 |
Total assets | $4,843,575,556 |
Liabilities | |
Cash collateral due to brokers | $ 350,000 |
Payable for investments purchased | 16,772,569 |
Payable for Fund shares redeemed | 19,895,618 |
Payable for open forward foreign currency exchange contracts | 14,744 |
Distributions payable | 837,511 |
Payable to affiliates: | |
Investment adviser fee | 2,411,444 |
Distribution and service fees | 156,510 |
Trustees' fees | 9,222 |
Trustees' deferred compensation plan | 268,475 |
Accrued expenses | 2,795,833 |
Total liabilities | $ 43,511,926 |
Net Assets | $4,800,063,630 |
Sources of Net Assets | |
Paid-in capital | $ 5,723,751,013 |
Accumulated loss | (923,687,383) |
Net Assets | $4,800,063,630 |
Class A Shares | |
Net Assets | $ 557,879,516 |
Shares Outstanding | 115,467,832 |
Net Asset Value and Redemption Price Per Share (net assets ÷ shares of beneficial interest outstanding) | $ 4.83 |
Maximum Offering Price Per Share (100 ÷ 96.75 of net asset value per share) | $ 4.99 |
Class C Shares | |
Net Assets | $ 34,242,475 |
Shares Outstanding | 7,065,532 |
Net Asset Value and Offering Price Per Share* (net assets ÷ shares of beneficial interest outstanding) | $ 4.85 |
Class I Shares | |
Net Assets | $ 3,061,661,762 |
Shares Outstanding | 633,559,536 |
Net Asset Value, Offering Price and Redemption Price Per Share (net assets ÷ shares of beneficial interest outstanding) | $ 4.83 |
October 31, 2023 | |
Class R Shares | |
Net Assets | $ 17,773,714 |
Shares Outstanding | 3,673,825 |
Net Asset Value, Offering Price and Redemption Price Per Share (net assets ÷ shares of beneficial interest outstanding) | $ 4.84 |
Class R6 Shares | |
Net Assets | $1,128,506,163 |
Shares Outstanding | 233,477,531 |
Net Asset Value, Offering Price and Redemption Price Per Share (net assets ÷ shares of beneficial interest outstanding) | $ 4.83 |
On sales of $100,000 or more, the offering price of Class A shares is reduced. | |
* | Redemption price per share is equal to the net asset value less any applicable contingent deferred sales charge. |
Year Ended | |
October 31, 2023 | |
Investment Income | |
Dividend income (net of foreign taxes withheld of $2,297) | $ 6,920,546 |
Dividend income from affiliated investments | 8,993,689 |
Interest and other income | 295,479,685 |
Total investment income | $311,393,920 |
Expenses | |
Investment adviser fee | $ 28,447,823 |
Distribution and service fees: | |
Class A | 1,486,074 |
Class C | 402,822 |
Class R | 96,774 |
Trustees’ fees and expenses | 108,681 |
Custodian fee | 841,694 |
Transfer and dividend disbursing agent fees | 4,057,800 |
Legal and accounting services | 253,280 |
Printing and postage | 1,975,055 |
Registration fees | 207,860 |
Miscellaneous | 182,871 |
Total expenses | $ 38,060,734 |
Deduct: | |
Waiver and/or reimbursement of expenses by affiliates | $ 1,404,531 |
Total expense reductions | $ 1,404,531 |
Net expenses | $ 36,656,203 |
Net investment income | $274,737,717 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss): | |
Investment transactions | $ 6,108,012 |
Foreign currency transactions | 167,340 |
Forward foreign currency exchange contracts | (2,465,032) |
Net realized gain | $ 3,810,320 |
Change in unrealized appreciation (depreciation): | |
Investments | $ (16,299,745) |
Foreign currency | 3,581 |
Forward foreign currency exchange contracts | (860,850) |
Net change in unrealized appreciation (depreciation) | $ (17,157,014) |
Net realized and unrealized loss | $ (13,346,694) |
Net increase in net assets from operations | $261,391,023 |
Year Ended October 31, | ||
2023 | 2022 | |
Increase (Decrease) in Net Assets | ||
From operations: | ||
Net investment income | $ 274,737,717 | $ 256,899,293 |
Net realized gain (loss) | 3,810,320 | (58,215,649) |
Net change in unrealized appreciation (depreciation) | (17,157,014) | (714,283,855) |
Net increase (decrease) in net assets from operations | $ 261,391,023 | $ (515,600,211) |
Distributions to shareholders: | ||
Class A | $ (32,470,826) | $ (34,820,430) |
Class C | (1,891,059) | (2,260,719) |
Class I | (172,956,802) | (180,194,555) |
Class R | (1,008,164) | (1,031,313) |
Class R6 | (64,827,903) | (67,257,071) |
Total distributions to shareholders | $ (273,154,754) | $ (285,564,088) |
Tax return of capital to shareholders: | ||
Class A | $ (1,376,919) | $ (2,499,362) |
Class C | (78,875) | (161,450) |
Class I | (7,477,415) | (12,800,566) |
Class R | (42,496) | (74,675) |
Class R6 | (2,780,377) | (4,968,962) |
Total tax return of capital to shareholders | $ (11,756,082) | $ (20,505,015) |
Transactions in shares of beneficial interest: | ||
Class A | $ (38,633,462) | $ (141,990,377) |
Class C | (9,910,052) | (13,800,807) |
Class I | 387,333,661 | (1,054,136,788) |
Class R | (2,115,461) | (1,980,156) |
Class R6 | (76,890,316) | 79,446,848 |
Net increase (decrease) in net assets from Fund share transactions | $ 259,784,370 | $(1,132,461,280) |
Net increase (decrease) in net assets | $ 236,264,557 | $(1,954,130,594) |
Net Assets | ||
At beginning of year | $ 4,563,799,073 | $ 6,517,929,667 |
At end of year | $4,800,063,630 | $ 4,563,799,073 |
Class A | |||||
Year Ended October 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net asset value — Beginning of year | $ 4.830 | $ 5.590 | $ 5.340 | $ 5.580 | $ 5.490 |
Income (Loss) From Operations | |||||
Net investment income(1) | $ 0.272 | $ 0.230 | $ 0.235 | $ 0.251 | $ 0.281 |
Net realized and unrealized gain (loss) | 0.010 (2) | (0.715) | 0.304 | (0.173) | 0.127 |
Total income (loss) from operations | $ 0.282 | $ (0.485) | $ 0.539 | $ 0.078 | $ 0.408 |
Less Distributions | |||||
From net investment income | $ (0.270) | $ (0.256) | $ (0.242) | $ (0.260) | $ (0.287) |
Tax return of capital | (0.012) | (0.019) | (0.047) | (0.058) | (0.031) |
Total distributions | $ (0.282) | $ (0.275) | $ (0.289) | $ (0.318) | $ (0.318) |
Net asset value — End of year | $ 4.830 | $ 4.830 | $ 5.590 | $ 5.340 | $ 5.580 |
Total Return(3) | 5.85% (4) | (8.87)% (4) | 10.23% (4) | 1.56% (4) | 7.63% |
Ratios/Supplemental Data | |||||
Net assets, end of year (000’s omitted) | $557,880 | $596,063 | $841,709 | $843,097 | $767,671 |
Ratios (as a percentage of average daily net assets):(5) | |||||
Expenses | 1.00% (4)(6) | 1.00% (4)(6) | 1.00% (4) | 1.01% (4) | 1.04% |
Net investment income | 5.49% | 4.40% | 4.21% | 4.68% | 5.08% |
Portfolio Turnover of the Portfolio(7) | — | — | — | 32% | 38% |
Portfolio Turnover of the Fund | 29% | 28% | 63% | 18% (8) | — |
(1) | Computed using average shares outstanding. |
(2) | The per share amount is not in accord with the net realized and unrealized gain (loss) for the period because of the timing of Fund share transactions and the amount of the per share realized and unrealized gains and losses at such time. |
(3) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges. |
(4) | The investment adviser and/or administrator reimbursed certain operating expenses (equal to 0.02%, 0.02%, 0.01% and 0.02% of average daily net assets for the years ended October 31, 2023, 2022, 2021 and 2020, respectively). Absent this reimbursement, total return would be lower. |
(5) | Includes the Fund’s share of the Portfolio’s allocated expenses for the period while the Fund was investing in the Portfolio. |
(6) | Includes a reduction by the investment adviser of a portion of its adviser fee due to the Fund's investment in the Liquidity Fund (equal to less than 0.01% and less than 0.005% of average daily net assets for the years ended October 31, 2023 and 2022, respectively). |
(7) | Portfolio turnover represents the rate of portfolio activity for the period while the Fund was investing in the Portfolio. |
(8) | For the period from June 15, 2020 through October 31, 2020 when the Fund was making investments directly in securities. |
References to Portfolio herein are to Boston Income Portfolio, a Massachusetts business trust in which the Fund invested all of its investable assets prior to the close of business on June 12, 2020 and which had the same investment objectives and policies as the Fund during such period. |
Class C | |||||
Year Ended October 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net asset value — Beginning of year | $ 4.850 | $ 5.600 | $ 5.350 | $ 5.590 | $ 5.500 |
Income (Loss) From Operations | |||||
Net investment income(1) | $ 0.235 | $ 0.191 | $ 0.194 | $ 0.212 | $ 0.241 |
Net realized and unrealized gain (loss) | 0.009 (2) | (0.707) | 0.303 | (0.177) | 0.124 |
Total income (loss) from operations | $ 0.244 | $ (0.516) | $ 0.497 | $ 0.035 | $ 0.365 |
Less Distributions | |||||
From net investment income | $ (0.234) | $ (0.218) | $ (0.207) | $ (0.225) | $ (0.248) |
Tax return of capital | (0.010) | (0.016) | (0.040) | (0.050) | (0.027) |
Total distributions | $ (0.244) | $ (0.234) | $ (0.247) | $ (0.275) | $ (0.275) |
Net asset value — End of year | $ 4.850 | $ 4.850 | $ 5.600 | $ 5.350 | $ 5.590 |
Total Return(3) | 5.02% (4) | (9.39)% (4) | 9.39% (4) | 0.74% (4) | 6.79% |
Ratios/Supplemental Data | |||||
Net assets, end of year (000’s omitted) | $34,242 | $43,919 | $65,596 | $85,246 | $112,343 |
Ratios (as a percentage of average daily net assets):(5) | |||||
Expenses | 1.75% (4)(6) | 1.75% (4)(6) | 1.75% (4) | 1.76% (4) | 1.79% |
Net investment income | 4.73% | 3.65% | 3.47% | 3.95% | 4.36% |
Portfolio Turnover of the Portfolio(7) | — | — | — | 32% | 38% |
Portfolio Turnover of the Fund | 29% | 28% | 63% | 18% (8) | — |
(1) | Computed using average shares outstanding. |
(2) | The per share amount is not in accord with the net realized and unrealized gain (loss) for the period because of the timing of Fund share transactions and the amount of the per share realized and unrealized gains and losses at such time. |
(3) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges. |
(4) | The investment adviser and/or administrator reimbursed certain operating expenses (equal to 0.02%, 0.02%, 0.01% and 0.02% of average daily net assets for the years ended October 31, 2023, 2022, 2021 and 2020, respectively). Absent this reimbursement, total return would be lower. |
(5) | Includes the Fund’s share of the Portfolio’s allocated expenses for the period while the Fund was investing in the Portfolio. |
(6) | Includes a reduction by the investment adviser of a portion of its adviser fee due to the Fund's investment in the Liquidity Fund (equal to less than 0.01% and less than 0.005% of average daily net assets for the years ended October 31, 2023 and 2022, respectively). |
(7) | Portfolio turnover represents the rate of portfolio activity for the period while the Fund was investing in the Portfolio. |
(8) | For the period from June 15, 2020 through October 31, 2020 when the Fund was making investments directly in securities. |
References to Portfolio herein are to Boston Income Portfolio, a Massachusetts business trust in which the Fund invested all of its investable assets prior to the close of business on June 12, 2020 and which had the same investment objectives and policies as the Fund during such period. |
Class I | |||||
Year Ended October 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net asset value — Beginning of year | $ 4.840 | $ 5.590 | $ 5.340 | $ 5.590 | $ 5.500 |
Income (Loss) From Operations | |||||
Net investment income(1) | $ 0.285 | $ 0.243 | $ 0.249 | $ 0.263 | $ 0.294 |
Net realized and unrealized gain (loss) | 0.000 (2)(3) | (0.704) | 0.304 | (0.181) | 0.128 |
Total income (loss) from operations | $ 0.285 | $ (0.461) | $ 0.553 | $ 0.082 | $ 0.422 |
Less Distributions | |||||
From net investment income | $ (0.283) | $ (0.269) | $ (0.254) | $ (0.272) | $ (0.300) |
Tax return of capital | (0.012) | (0.020) | (0.049) | (0.060) | (0.032) |
Total distributions | $ (0.295) | $ (0.289) | $ (0.303) | $ (0.332) | $ (0.332) |
Net asset value — End of year | $ 4.830 | $ 4.840 | $ 5.590 | $ 5.340 | $ 5.590 |
Total Return(4) | 5.90% (5) | (8.44)% (5) | 10.50% (5) | 1.64% (5) | 7.90% |
Ratios/Supplemental Data | |||||
Net assets, end of year (000’s omitted) | $3,061,662 | $2,692,891 | $4,267,314 | $4,242,893 | $3,678,145 |
Ratios (as a percentage of average daily net assets):(6) | |||||
Expenses | 0.75% (5)(7) | 0.75% (5)(7) | 0.75% (5) | 0.76% (5) | 0.79% |
Net investment income | 5.75% | 4.64% | 4.47% | 4.91% | 5.32% |
Portfolio Turnover of the Portfolio(8) | — | — | — | 32% | 38% |
Portfolio Turnover of the Fund | 29% | 28% | 63% | 18% (9) | — |
(1) | Computed using average shares outstanding. |
(2) | Amount is less than $0.0005. |
(3) | The per share amount is not in accord with the net realized and unrealized gain (loss) for the period because of the timing of Fund share transactions and the amount of the per share realized and unrealized gains and losses at such time. |
(4) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. |
(5) | The investment adviser and/or administrator reimbursed certain operating expenses (equal to 0.02%, 0.02%, 0.01% and 0.02% of average daily net assets for the years ended October 31, 2023, 2022, 2021 and 2020, respectively). Absent this reimbursement, total return would be lower. |
(6) | Includes the Fund’s share of the Portfolio’s allocated expenses for the period while the Fund was investing in the Portfolio. |
(7) | Includes a reduction by the investment adviser of a portion of its adviser fee due to the Fund's investment in the Liquidity Fund (equal to less than 0.01% and less than 0.005% of average daily net assets for the years ended October 31, 2023 and 2022, respectively). |
(8) | Portfolio turnover represents the rate of portfolio activity for the period while the Fund was investing in the Portfolio. |
(9) | For the period from June 15, 2020 through October 31, 2020 when the Fund was making investments directly in securities. |
References to Portfolio herein are to Boston Income Portfolio, a Massachusetts business trust in which the Fund invested all of its investable assets prior to the close of business on June 12, 2020 and which had the same investment objectives and policies as the Fund during such period. |
Class R | |||||
Year Ended October 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net asset value — Beginning of year | $ 4.840 | $ 5.600 | $ 5.350 | $ 5.590 | $ 5.500 |
Income (Loss) From Operations | |||||
Net investment income(1) | $ 0.260 | $ 0.217 | $ 0.221 | $ 0.239 | $ 0.267 |
Net realized and unrealized gain (loss) | 0.010 (2) | (0.715) | 0.304 | (0.176) | 0.126 |
Total income (loss) from operations | $ 0.270 | $ (0.498) | $ 0.525 | $ 0.063 | $ 0.393 |
Less Distributions | |||||
From net investment income | $ (0.259) | $ (0.244) | $ (0.230) | $ (0.248) | $ (0.274) |
Tax return of capital | (0.011) | (0.018) | (0.045) | (0.055) | (0.029) |
Total distributions | $ (0.270) | $ (0.262) | $ (0.275) | $ (0.303) | $ (0.303) |
Net asset value — End of year | $ 4.840 | $ 4.840 | $ 5.600 | $ 5.350 | $ 5.590 |
Total Return(3) | 5.57% (4) | (9.08)% (4) | 9.95% (4) | 1.28% (4) | 7.34% |
Ratios/Supplemental Data | |||||
Net assets, end of year (000’s omitted) | $17,774 | $19,860 | $25,010 | $27,105 | $35,182 |
Ratios (as a percentage of average daily net assets):(5) | |||||
Expenses | 1.25% (4)(6) | 1.25% (4)(6) | 1.25% (4) | 1.26% (4) | 1.29% |
Net investment income | 5.24% | 4.16% | 3.97% | 4.44% | 4.83% |
Portfolio Turnover of the Portfolio(7) | — | — | — | 32% | 38% |
Portfolio Turnover of the Fund | 29% | 28% | 63% | 18% (8) | — |
(1) | Computed using average shares outstanding. |
(2) | The per share amount is not in accord with the net realized and unrealized gain (loss) for the period because of the timing of Fund share transactions and the amount of the per share realized and unrealized gains and losses at such time. |
(3) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. |
(4) | The investment adviser and/or administrator reimbursed certain operating expenses (equal to 0.02%, 0.02%, 0.01% and 0.02% of average daily net assets for the years ended October 31, 2023, 2022, 2021 and 2020, respectively). Absent this reimbursement, total return would be lower. |
(5) | Includes the Fund’s share of the Portfolio’s allocated expenses for the period while the Fund was investing in the Portfolio. |
(6) | Includes a reduction by the investment adviser of a portion of its adviser fee due to the Fund's investment in the Liquidity Fund (equal to less than 0.01% and less than 0.005% of average daily net assets for the years ended October 31, 2023 and 2022, respectively). |
(7) | Portfolio turnover represents the rate of portfolio activity for the period while the Fund was investing in the Portfolio. |
(8) | For the period from June 15, 2020 through October 31, 2020 when the Fund was making investments directly in securities. |
References to Portfolio herein are to Boston Income Portfolio, a Massachusetts business trust in which the Fund invested all of its investable assets prior to the close of business on June 12, 2020 and which had the same investment objectives and policies as the Fund during such period. |
Class R6 | |||||
Year Ended October 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net asset value — Beginning of year | $ 4.840 | $ 5.590 | $ 5.350 | $ 5.590 | $ 5.500 |
Income (Loss) From Operations | |||||
Net investment income(1) | $ 0.290 | $ 0.248 | $ 0.254 | $ 0.264 | $ 0.300 |
Net realized and unrealized gain (loss) | — (2) | (0.704) | 0.294 | (0.167) | 0.127 |
Total income (loss) from operations | $ 0.290 | $ (0.456) | $ 0.548 | $ 0.097 | $ 0.427 |
Less Distributions | |||||
From net investment income | $ (0.288) | $ (0.274) | $ (0.258) | $ (0.276) | $ (0.304) |
Tax return of capital | (0.012) | (0.020) | (0.050) | (0.061) | (0.033) |
Total distributions | $ (0.300) | $ (0.294) | $ (0.308) | $ (0.337) | $ (0.337) |
Net asset value — End of year | $ 4.830 | $ 4.840 | $ 5.590 | $ 5.350 | $ 5.590 |
Total Return(3) | 6.00% (4) | (8.35)% (4) | 10.39% (4) | 1.92% (4) | 8.00% |
Ratios/Supplemental Data | |||||
Net assets, end of year (000’s omitted) | $1,128,506 | $1,211,066 | $1,318,299 | $1,153,264 | $251,435 |
Ratios (as a percentage of average daily net assets):(5) | |||||
Expenses | 0.66% (4)(6) | 0.66% (4)(6) | 0.66% (4) | 0.66% (4) | 0.68% |
Net investment income | 5.85% | 4.77% | 4.55% | 4.92% | 5.42% |
Portfolio Turnover of the Portfolio(7) | — | — | — | 32% | 38% |
Portfolio Turnover of the Fund | 29% | 28% | 63% | 18% (8) | — |
(1) | Computed using average shares outstanding. |
(2) | Amount is less than $(0.0005). |
(3) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. |
(4) | The investment adviser and/or administrator reimbursed certain operating expenses (equal to 0.02%, 0.02%, 0.01% and 0.02% of average daily net assets for the years ended October 31, 2023, 2022, 2021 and 2020, respectively). Absent this reimbursement, total return would be lower. |
(5) | Includes the Fund’s share of the Portfolio’s allocated expenses for the period while the Fund was investing in the Portfolio. |
(6) | Includes a reduction by the investment adviser of a portion of its adviser fee due to the Fund's investment in the Liquidity Fund (equal to less than 0.01% and less than 0.005% of average daily net assets for the years ended October 31, 2023 and 2022, respectively). |
(7) | Portfolio turnover represents the rate of portfolio activity for the period while the Fund was investing in the Portfolio. |
(8) | For the period from June 15, 2020 through October 31, 2020 when the Fund was making investments directly in securities. |
References to Portfolio herein are to Boston Income Portfolio, a Massachusetts business trust in which the Fund invested all of its investable assets prior to the close of business on June 12, 2020 and which had the same investment objectives and policies as the Fund during such period. |
Year Ended October 31, | ||
2023 | 2022 | |
Ordinary income | $273,154,754 | $285,564,088 |
Tax return of capital | $ 11,756,082 | $ 20,505,015 |
Deferred capital losses | $ (366,999,553) |
Net unrealized depreciation | (555,850,319) |
Distributions payable | (837,511) |
Accumulated loss | $(923,687,383) |
Aggregate cost | $5,285,778,915 |
Gross unrealized appreciation | $ 37,665,918 |
Gross unrealized depreciation | (593,468,877) |
Net unrealized depreciation | $ (555,802,959) |
Average Daily Net Assets | Annual Fee Rate |
Up to $1.5 billion | 0.625% |
$1.5 billion but less than $2 billion | 0.600% |
$2 billion but less than $5 billion | 0.575% |
$5 billion but less than $10 billion | 0.555% |
$10 billion and over | 0.535% |
relating to the Fund's investment in the Liquidity Fund.
Year Ended October 31, 2023 | Year Ended October 31, 2022 | ||||
Shares | Amount | Shares | Amount | ||
Class A | |||||
Sales | 24,267,173 | $ 120,347,588 | 23,095,542 | $ 121,645,591 | |
Issued to shareholders electing to receive payments of distributions in Fund shares | 6,383,401 | 31,602,534 | 6,760,544 | 35,006,092 | |
Redemptions | (38,468,405) | (190,583,584) | (57,142,211) | (298,642,060) | |
Net decrease | (7,817,831) | $ (38,633,462) | (27,286,125) | $ (141,990,377) | |
Class C | |||||
Sales | 586,562 | $ 2,902,653 | 811,205 | $ 4,268,548 | |
Issued to shareholders electing to receive payments of distributions in Fund shares | 386,329 | 1,919,128 | 454,141 | 2,358,388 | |
Redemptions | (2,966,805) | (14,731,833) | (3,914,954) | (20,427,743) | |
Net decrease | (1,993,914) | $ (9,910,052) | (2,649,608) | $ (13,800,807) |
Year Ended October 31, 2023 | Year Ended October 31, 2022 | ||||
Shares | Amount | Shares | Amount | ||
Class I | |||||
Sales | 233,376,237 | $ 1,162,046,587 | 208,209,714 | $ 1,084,495,334 | |
Issued to shareholders electing to receive payments of distributions in Fund shares | 35,353,903 | 175,103,222 | 36,116,594 | 187,501,496 | |
Redemptions | (192,016,886) | (949,816,148) | (450,597,312) | (2,326,133,618) | |
Net increase (decrease) | 76,713,254 | $ 387,333,661 | (206,271,004) | $(1,054,136,788) | |
Class R | |||||
Sales | 666,783 | $ 3,308,529 | 1,065,672 | $ 5,653,358 | |
Issued to shareholders electing to receive payments of distributions in Fund shares | 211,358 | 1,047,761 | 212,912 | 1,100,408 | |
Redemptions | (1,307,032) | (6,471,751) | (1,645,240) | (8,733,922) | |
Net decrease | (428,891) | $ (2,115,461) | (366,656) | $ (1,980,156) | |
Class R6 | |||||
Sales | 63,283,835 | $ 313,746,538 | 57,127,762 | $ 298,612,478 | |
Issued to shareholders electing to receive payments of distributions in Fund shares | 13,322,263 | 65,988,627 | 13,971,636 | 72,026,107 | |
Redemptions | (93,514,921) | (456,625,481) | (56,397,348) | (291,191,737) | |
Net increase (decrease) | (16,908,823) | $ (76,890,316) | 14,702,050 | $ 79,446,848 |
Description | Date(s) of Acquisition | Shares | Cost | Value |
Common Stocks | ||||
Ascent CNR Corp., Class A | 4/25/16, 11/16/16 | 32,029,863 | $ 18,931 | $ 7,046,570 |
iFIT Health and Fitness, Inc. | 10/6/22 | 128,520 | 449,820 | 0 |
New Cotai Participation Corp., Class B | 4/12/13 | 36 | 1,111,500 | 0 |
Total Common Stocks | $1,580,251 | $ 7,046,570 | ||
Miscellaneous | ||||
PGP Investors, LLC, Membership Interests | 10/23/12, 2/18/15, 4/23/18, 11/30/20, 12/17/21 | 57,265 | $ 0 | $ 15,908,514 |
Total Miscellaneous | $ 0 | $15,908,514 | ||
Total Restricted Securities | $1,580,251 | $22,955,084 |
Fair Value | ||
Derivative | Asset Derivative | Liability Derivative |
Forward foreign currency exchange contracts | $20,449 (1) | $(14,744) (2) |
(1) | Statement of Assets and Liabilities location: Receivable for open forward foreign currency exchange contracts. |
(2) | Statement of Assets and Liabilities location: Payable for open forward foreign currency exchange contracts. |
Counterparty | Derivative Assets Subject to Master Netting Agreement | Derivatives Available for Offset | Non-cash Collateral Received(a) | Cash Collateral Received(a) | Net Amount of Derivative Assets(b) |
State Street Bank and Trust Company | $20,449 | $(14,744) | $ — | $ — | $5,705 |
Counterparty | Derivative Liabilities Subject to Master Netting Agreement | Derivatives Available for Offset | Non-cash Collateral Pledged(a) | Cash Collateral Pledged(a) | Net Amount of Derivative Liabilities(c) |
State Street Bank and Trust Company | $(14,744) | $14,744 | $ — | $ — | $ — |
(a) | In some instances, the total collateral received and/or pledged may be more than the amount shown due to overcollateralization. |
(b) | Net amount represents the net amount due from the counterparty in the event of default. |
(c) | Net amount represents the net amount payable to the counterparty in the event of default. |
Derivative | Realized Gain (Loss) on Derivatives Recognized in Income(1) | Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income(2) |
Forward foreign currency exchange contracts | $(2,465,032) | $(860,850) |
(1) | Statement of Operations location: Net realized gain (loss): Forward foreign currency exchange contracts. |
(2) | Statement of Operations location: Change in unrealized appreciation (depreciation): Forward foreign currency exchange contracts. |
Name | Value, beginning of period | Purchases | Sales proceeds | Net realized gain (loss) | Change in unrealized appreciation (depreciation) | Value, end of period | Dividend income | Shares, end of period |
Short-Term Investments | ||||||||
Liquidity Fund | $199,716,515 | $1,478,049,323 | $(1,516,371,763) | $ — | $ — | $161,394,075 | $8,993,689 | 161,394,075 |
• | Level 1 – quoted prices in active markets for identical investments |
• | Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3 – significant unobservable inputs (including a fund's own assumptions in determining the fair value of investments) |
Asset Description | Level 1 | Level 2 | Level 3 | Total |
Common Stocks | $ 14,368,345 | $ — | $ 7,046,570 | $ 21,414,915 |
Convertible Bonds | — | 43,234,092 | — | 43,234,092 |
Corporate Bonds | — | 4,198,965,974 | — | 4,198,965,974 |
Preferred Stocks | 23,956,436 | — | — | 23,956,436 |
Senior Floating-Rate Loans | — | 264,770,840 | — | 264,770,840 |
Miscellaneous | — | 331,110 | 15,908,514 | 16,239,624 |
Short-Term Investments | 161,394,075 | — | — | 161,394,075 |
Total Investments | $ 199,718,856 | $ 4,507,302,016 | $ 22,955,084 | $ 4,729,975,956 |
Forward Foreign Currency Exchange Contracts | $ — | $ 20,449 | $ — | $ 20,449 |
Total | $ 199,718,856 | $ 4,507,322,465 | $ 22,955,084 | $ 4,729,996,405 |
Liability Description | ||||
Forward Foreign Currency Exchange Contracts | $ — | $ (14,744) | $ — | $ (14,744) |
Total | $ — | $ (14,744) | $ — | $ (14,744) |
Common Stocks | Convertible Preferred Stocks | Miscellaneous | Total | |
Balance as of October 31, 2022 | $ 8,417,729 | $ 0 | $ 124,162,642 | $ 132,580,371 |
Realized gains (losses) | (9,761,964) | (6,715,678) | 135,098,049 | 118,620,407 |
Change in net unrealized appreciation (depreciation) | 8,311,428 | 6,589,422 | (106,106,870) | (91,206,020) |
Cost of purchases | — | — | 0 | 0 |
Proceeds from sales, including return of capital | 0 | 0 | (137,245,307) | (137,245,307) |
Accrued discount (premium) | — | — | — | — |
Transfers to Level 3(1) | 79,377 | 126,256 | — | 205,633 |
Transfers from Level 3 | — | — | — | — |
Balance as of October 31, 2023 | $ 7,046,570 | $ — | $ 15,908,514 | $ 22,955,084 |
Change in net unrealized appreciation (depreciation) on investments still held as of October 31, 2023 | $(1,371,159) | $ — | $ (13,595,093) | $ (14,966,252) |
(1) | Transferred to Level 3 due to a decrease in observable inputs. |
Type of Investment | Fair Value as of October 31, 2023 | Valuation Technique | Unobservable Input | Input | Impact to Valuation from an Increase to Input* |
Common Stocks | $ 7,046,570 | Market approach | EBITDA multiple discount rate | 15% | Decrease |
Miscellaneous | 15,908,514 | Market approach | Liquidity discount | 15% | Decrease |
Included in common stocks and miscellaneous are securites valued at $0 based on their estimated recovery value percentage. | |
* | Represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. |
Boston, Massachusetts
December 19, 2023
127 funds in the Eaton Vance fund complex (including both funds and portfolios in a hub and spoke structure).
Name and Year of Birth | Trust Position(s) | Length of Service | Principal Occupation(s) and Other Directorships During Past Five Years and Other Relevant Experience |
Interested Trustee | |||
Anchal Pachnanda(1) 1980 | Trustee | Since 2023 | Co-Head of Strategy of MSIM (since 2019). Formerly, Head of Strategy of MSIM (2017-2019). Ms. Pachnanda is an interested person because of her position with MSIM, which is an affiliate of the Trust. Other Directorships. None. |
Noninterested Trustees | |||
Alan C. Bowser 1962 | Trustee | Since 2022 | Private investor. Formerly, Chief Diversity Officer, Partner and a member of the Operating Committee, and formerly served as Senior Advisor on Diversity and Inclusion for the firm’s chief executive officer, Co-Head of the Americas Region, and Senior Client Advisor of Bridgewater Associates, an asset management firm (2011- 2023). Other Directorships. Independent Director of Stout Risius Ross (a middle market professional services advisory firm) (since 2021). |
Mark R. Fetting 1954 | Trustee | Since 2016 | Private investor. Formerly held various positions at Legg Mason, Inc. (investment management firm) (2000-2012), including President, Chief Executive Officer, Director and Chairman (2008-2012), Senior Executive Vice President (2004-2008) and Executive Vice President (2001-2004). Formerly, President of Legg Mason family of funds (2001-2008). Formerly, Division President and Senior Officer of Prudential Financial Group, Inc. and related companies (investment management firm) (1991-2000). Other Directorships. None. |
Cynthia E. Frost 1961 | Trustee | Since 2014 | Private investor. Formerly, Chief Investment Officer of Brown University (university endowment) (2000-2012). Formerly, Portfolio Strategist for Duke Management Company (university endowment manager) (1995-2000). Formerly, Managing Director, Cambridge Associates (investment consulting company) (1989-1995). Formerly, Consultant, Bain and Company (management consulting firm) (1987-1989). Formerly, Senior Equity Analyst, BA Investment Management Company (1983-1985). Other Directorships. None. |
George J. Gorman 1952 | Chairperson of the Board and Trustee | Since 2021 (Chairperson) and 2014 (Trustee) | Principal at George J. Gorman LLC (consulting firm). Formerly, Senior Partner at Ernst & Young LLP (a registered public accounting firm) (1974-2009). Other Directorships. None. |
Name and Year of Birth | Trust Position(s) | Length of Service | Principal Occupation(s) and Other Directorships During Past Five Years and Other Relevant Experience |
Noninterested Trustees (continued) | |||
Valerie A. Mosley 1960 | Trustee | Since 2014 | Chairwoman and Chief Executive Officer of Valmo Ventures (a consulting and investment firm). Founder of Upward Wealth, Inc., dba BrightUp, a fintech platform. Formerly, Partner and Senior Vice President, Portfolio Manager and Investment Strategist at Wellington Management Company, LLP (investment management firm) (1992-2012). Formerly, Chief Investment Officer, PG Corbin Asset Management (1990-1992). Formerly worked in institutional corporate bond sales at Kidder Peabody (1986-1990). Other Directorships. Director of DraftKings, Inc. (digital sports entertainment and gaming company) (since September 2020). Director of Envestnet, Inc. (provider of intelligent systems for wealth management and financial wellness) (since 2018). Formerly, Director of Dynex Capital, Inc. (mortgage REIT) (2013-2020) and Director of Groupon, Inc. (e-commerce provider) (2020-2022). |
Keith Quinton 1958 | Trustee | Since 2018 | Private investor, researcher and lecturer. Formerly, Independent Investment Committee Member at New Hampshire Retirement System (2017-2021). Formerly, Portfolio Manager and Senior Quantitative Analyst at Fidelity Investments (investment management firm) (2001-2014). Other Directorships. Formerly, Director (2016-2021) and Chairman (2019-2021) of New Hampshire Municipal Bond Bank. |
Marcus L. Smith 1966 | Trustee | Since 2018 | Private investor and independent corporate director. Formerly, Chief Investment Officer, Canada (2012-2017), Chief Investment Officer, Asia (2010-2012), Director of Asian Research (2004-2010) and portfolio manager (2001-2017) at MFS Investment Management (investment management firm). Other Directorships. Director of First Industrial Realty Trust, Inc. (an industrial REIT) (since 2021). Director of MSCI Inc. (global provider of investment decision support tools) (since 2017). Formerly, Director of DCT Industrial Trust Inc. (logistics real estate company) (2017-2018). |
Susan J. Sutherland 1957 | Trustee | Since 2015 | Private investor. Director of Ascot Group Limited and certain of its subsidiaries (insurance and reinsurance) (since 2017). Formerly, Director of Hagerty Holding Corp. (insurance) (2015-2018) and Montpelier Re Holdings Ltd. (insurance and reinsurance) (2013-2015). Formerly, Associate, Counsel and Partner at Skadden, Arps, Slate, Meagher & Flom LLP (law firm) (1982-2013). Other Directorships. Formerly, Director of Kairos Acquisition Corp. (insurance/InsurTech acquisition company) (2021-2023). |
Scott E. Wennerholm 1959 | Trustee | Since 2016 | Private investor. Formerly, Trustee at Wheelock College (postsecondary institution) (2012-2018). Formerly, Consultant at GF Parish Group (executive recruiting firm) (2016-2017). Formerly, Chief Operating Officer and Executive Vice President at BNY Mellon Asset Management (investment management firm) (2005-2011). Formerly, Chief Operating Officer and Chief Financial Officer at Natixis Global Asset Management (investment management firm) (1997-2004). Formerly, Vice President at Fidelity Investments Institutional Services (investment management firm) (1994-1997). Other Directorships. None. |
Nancy A. Wiser 1967 | Trustee | Since 2022 | Formerly, Executive Vice President and the Global Head of Operations at Wells Fargo Asset Management (2011-2021). Other Directorships. None. |
Name and Year of Birth | Trust Position(s) | Length of Service | Principal Occupation(s) During Past Five Years |
Principal Officers who are not Trustees | |||
Kenneth A. Topping 1966 | President | Since 2023 | Vice President and Chief Administrative Officer of EVM and BMR and Chief Operating Officer for Public Markets at MSIM. Also Vice President of Calvert Research and Management (“CRM”) since 2021. Formerly, Chief Operating Officer for Goldman Sachs Asset Management `Classic' (2009-2020). |
Deidre E. Walsh 1971 | Vice President and Chief Legal Officer | Since 2009 | Vice President of EVM and BMR. Also Vice President of CRM. |
James F. Kirchner 1967 | Treasurer | Since 2007 | Vice President of EVM and BMR. Also Vice President of CRM. |
Name and Year of Birth | Trust Position(s) | Length of Service | Principal Occupation(s) During Past Five Years |
Principal Officers who are not Trustees (continued) | |||
Nicholas S. Di Lorenzo 1987 | Secretary | Since 2022 | Formerly, associate (2012-2021) and counsel (2022) at Dechert LLP. |
Richard F. Froio 1968 | Chief Compliance Officer | Since 2017 | Vice President of EVM and BMR since 2017. Formerly, Deputy Chief Compliance Officer (Adviser/Funds) and Chief Compliance Officer (Distribution) at PIMCO (2012-2017) and Managing Director at BlackRock/Barclays Global Investors (2009-2012). |
Privacy Notice | April 2021 |
FACTS | WHAT DOES EATON VANCE DO WITH YOUR PERSONAL INFORMATION? |
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include:■ Social Security number and income ■ investment experience and risk tolerance ■ checking account number and wire transfer instructions |
How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Eaton Vance chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does Eaton Vance share? | Can you limit this sharing? |
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No |
For our marketing purposes — to offer our products and services to you | Yes | No |
For joint marketing with other financial companies | No | We don’t share |
For our investment management affiliates’ everyday business purposes — information about your transactions, experiences, and creditworthiness | Yes | Yes |
For our affiliates’ everyday business purposes — information about your transactions and experiences | Yes | No |
For our affiliates’ everyday business purposes — information about your creditworthiness | No | We don’t share |
For our investment management affiliates to market to you | Yes | Yes |
For our affiliates to market to you | No | We don’t share |
For nonaffiliates to market to you | No | We don’t share |
To limit our sharing | Call toll-free 1-800-262-1122 or email: EVPrivacy@eatonvance.comPlease note:If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing. |
Questions? | Call toll-free 1-800-262-1122 or email: EVPrivacy@eatonvance.com |
Privacy Notice — continued | April 2021 |
Who we are | |
Who is providing this notice? | Eaton Vance Management, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management (International) Limited, Eaton Vance Advisers International Ltd., Eaton Vance Global Advisors Limited, Eaton Vance Management’s Real Estate Investment Group, Boston Management and Research, Calvert Research and Management, Eaton Vance and Calvert Fund Families and our investment advisory affiliates (“Eaton Vance”) (see Investment Management Affiliates definition below) |
What we do | |
How does Eaton Vance protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information. |
How does Eaton Vance collect my personal information? | We collect your personal information, for example, when you■ open an account or make deposits or withdrawals from your account ■ buy securities from us or make a wire transfer ■ give us your contact informationWe also collect your personal information from others, such as credit bureaus, affiliates, or other companies. |
Why can’t I limit all sharing? | Federal law gives you the right to limit only■ sharing for affiliates’ everyday business purposes — information about your creditworthiness ■ affiliates from using your information to market to you ■ sharing for nonaffiliates to market to youState laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |
Definitions | |
Investment Management Affiliates | Eaton Vance Investment Management Affiliates include registered investment advisers, registered broker- dealers, and registered and unregistered funds. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies.■ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.■ Eaton Vance does not share with nonaffiliates so they can market to you. |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.■ Eaton Vance doesn’t jointly market. |
Other important information | |
Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Nonaffiliates unless you provide us with your written consent to share such information.California: Except as permitted by law, we will not share personal information we collect about California residents with Nonaffiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us. |
Two International Place
Boston, MA 02110
125 Old Broad Street
London, EC2N 1AR
United Kingdom
Two International Place
Boston, MA 02110
Two International Place
Boston, MA 02110
(617) 482-8260
One Congress Street, Suite 1
Boston, MA 02114-2016
Attn: Eaton Vance Funds
P.O. Box 534439
Pittsburgh, PA 15253-4439
(800) 262-1122
200 Berkeley Street
Boston, MA 02116-5022
Boston, MA 02110
Item 2. Code of Ethics
The registrant (sometimes referred to as the “Fund”) has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. The registrant has not amended the code of ethics as described in Form N-CSR during the period covered by this report. The registrant has not granted any waiver, including an implicit waiver, from a provision of the code of ethics as described in Form N-CSR during the period covered by this report.
Item 3. Audit Committee Financial Expert
The registrant’s Board of Trustees (the “Board”) has designated George J. Gorman and Scott E. Wennerholm, each an independent trustee, as audit committee financial experts. Mr. Gorman is a certified public accountant who is the Principal at George J. Gorman LLC (a consulting firm). Previously, Mr. Gorman served in various capacities at Ernst & Young LLP (a registered public accounting firm), including as Senior Partner. Mr. Gorman also has experience serving as an independent trustee and audit committee financial expert of other mutual fund complexes. Mr. Wennerholm is a private investor. Previously, Mr. Wennerholm served as a Trustee at Wheelock College (postsecondary institution), as a Consultant at GF Parish Group (executive recruiting firm), Chief Operating Officer and Executive Vice President at BNY Mellon Asset Management (investment management firm), Chief Operating Officer and Chief Financial Officer at Natixis Global Asset Management (investment management firm), and Vice President at Fidelity Investments Institutional Services (investment management firm).
Item 4. Principal Accountant Fees and Services
Eaton Vance Income Fund of Boston (the “Fund”) is a series of Eaton Vance Series Trust II (the “Trust”), a Massachusetts business trust, which, including the Fund, contains a total of 2 series (the “Series”). The Trust is registered under the Investment Company Act of 1940 as an open-end management investment company. This Form N-CSR relates to the Fund’s annual report.
(a)-(d)
The following table presents the aggregate fees billed to the fund for the fund’s fiscal years ended October 31, 2022 and October 31, 2023 by the registrant’s principal accountant, Deloitte & Touche LLP (“D&T”), for professional services rendered for the audit of the fund’s annual financial statements and fees billed for other services rendered by D&T during such periods.
Eaton Vance Income Fund of Boston Fiscal Years Ended | 10/31/22 | 10/31/23 | ||||||
Audit Fees | $ | 98,983 | $ | 98,600 | ||||
Audit-Related Fees(1) | $ | 0 | $ | 0 | ||||
Tax Fees(2) | $ | 1,350 | $ | 0 | ||||
All Other Fees(3) | $ | 0 | $ | 833 | ||||
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Total | $ | 100,333 | $ | 99,433 | ||||
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(1) | Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees. |
(2) | Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning and specifically include fees for tax return preparation and other tax related compliance/planning matters. |
(3) | All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. |
The various Series comprising the Trust have differing fiscal year ends (October 31 or June 30). The following table presents the aggregate audit, audit-related, tax, and other fees billed to all of the Series in the Trust by D&T for the last two fiscal years of each Series.
Fiscal Years Ended | 6/30/22 | 10/31/22 | 6/30/23 | 10/31/23 | ||||||||||||
Audit Fees | $ | 86,250 | $ | 98,983 | $ | 86,700 | $ | 98,600 | ||||||||
Audit-Related Fees(1) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Tax Fees(2) | $ | 3,675 | $ | 1,350 | $ | 0 | $ | 0 | ||||||||
All Other Fees(3) | $ | 0 | $ | 0 | $ | 38 | $ | 833 | ||||||||
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Total | $ | 89,925 | $ | 100,333 | $ | 86,738 | $ | 99,433 | ||||||||
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(1) | Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees. |
(2) | Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning and specifically include fees for tax return preparation and other tax related compliance/planning matters. |
(3) | All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. |
(e)(1) The registrant’s audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant’s principal accountant (the “Pre-Approval Policies”). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee.
The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant’s audit committee at least annually. The registrant’s audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant’s principal accountant.
(e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant’s audit committee pursuant to the “de minimis exception” set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X.
(f) Not applicable.
(g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to all of the Series in the Trust by D&T for the last two fiscal years of each series; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed to the Eaton Vance organization by D&T for the last two fiscal years of each Series.
Fiscal Years Ended | 6/30/22 | 10/31/22 | 6/30/23 | 10/31/23 | ||||||||||||
Registrant(1) | $ | 3,675 | $ | 1,350 | $ | 38 | $ | 833 | ||||||||
Eaton Vance(2) | $ | 0 | $ | 52,836 | $ | 0 | $ | 0 |
(1) | Includes all of the Series of the Trust. During the fiscal years reported above, certain of the Funds were “feeder” funds in a “master-feeder” fund structure or funds of funds. |
(2) | Various subsidiaries of Morgan Stanley act in either an investment advisory and/or service provider capacity with respect to the Series and/or their respective “master” funds (if applicable). |
(h) The registrant’s audit committee has considered whether the provision by the registrant’s principal accountant of non-audit services to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant’s independence.
(i) Not applicable.
(j) Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
No material changes.
Item 11. Controls and Procedures
(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrant’s internal controls over financial reporting during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 13. Exhibits
(a)(1) | Registrant’s Code of Ethics – Not applicable (please see Item 2). | |
(a)(2)(i) | Treasurer’s Section 302 certification. | |
(a)(2)(ii) | President’s Section 302 certification. | |
(b) | Combined Section 906 certification. |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Eaton Vance Series Trust II | ||
By: | /s/ Kenneth A. Topping | |
Kenneth A. Topping | ||
President | ||
Date: | December 22, 2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ James F. Kirchner | |
James F. Kirchner | ||
Treasurer | ||
Date: | December 22, 2023 |
By: | /s/ Kenneth A. Topping | |
Kenneth A. Topping | ||
President | ||
Date: | December 22, 2023 |