Annual Report June 30, 2022
Eaton Vance
Floating-Rate 2022 Target Term Trust
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Management’s Discussion of Fund Performance†
Economic and Market Conditions
Amid increasing global concerns about inflation and
supply-chain disruptions, and the negative effect of Russia’s invasion of Ukraine on both of those issues, senior loans displayed their value as a portfolio diversifier by outperforming the majority of U.S. fixed-income asset classes during
the 12-month period ended June 30, 2022. While returns were nonetheless negative at -2.78% for the S&P/LSTA Leveraged Loan Index (the Index), a broad measure of the asset class, senior loans outperformed corporate bonds, corporate high yield
bonds, municipal bonds, and U.S. government bonds during the period.
For senior loan investors, the one-year period appeared to
consist of two distinct parts. From the opening of the period on July 1, 2021 through January 2022, the asset class generally rallied — except for a pause in July 2021, when returns were flat, and in November 2021 when a new COVID-19 variant
caused equity and fixed-income prices to plummet worldwide. In a yield-starved environment, senior loans offered attractive spreads versus other asset classes.
The ongoing rollout of vaccines, the reopening of U.S.
businesses, and comparatively low yields in other fixed-income asset classes all provided tailwinds for senior loans during that time. Technical factors also bolstered loan performance as demand outpaced supply and institutional demand for
collateralized loan obligations (CLOs) remained strong. Reflecting investors’ seemingly increased appetite for risk, lower-rated loans generally outperformed higher-rated issues.
In February 2022, however, the economic impact of
Russia’s invasion of Ukraine became a tipping point for loan performance. While the U.S. Federal Reserve’s (the Fed’s) projection of seven rate increases in 2022 was viewed as a positive for floating-rate loans, investors began to
worry about the negative effects of supply-chain disruptions, higher commodity and labor expenses, rising debt service costs on loan issuers, and the potential for a recession in both the U.S. and global economies.
Manifesting investors’ concerns, higher-quality loans
began to outperform lower-quality loans. Loan prices, which had risen earlier in the period, declined each month from February through the end of the period. While mutual fund inflows for the asset class continued through April, flows turned
negative in the final two months of the period and CLO demand declined as well. As of period-end on June 30, 2022, loan prices had fallen to $92.16 from $98.37 at the start of the period.
One remaining bright spot, however, was issuer fundamentals.
The trailing 12-month default rate plummeted from 1.25% at the beginning of the period to 0.28% at period-end, near the market’s all-time low of 0.15%.
For the period as a whole, higher quality loans outperformed
lower quality issues, with BBB-, BB-, B-, CCC- and D-rated (defaulted) loans in the Index returning -0.93%, -1.81%, -2.97%, -6.56%, and -17.74%, respectively.
Fund Performance
For the 12-month period ended June 30, 2022, Eaton Vance
Floating-Rate 2022 Target Term Trust (the Fund) returned -4.04% at net asset value of its common shares (NAV), underperforming the -2.78% return of the Index. The Fund is managed against the stated objectives of delivering high current income and
returning the initial NAV of $9.85 (before deduction of offering costs) per common share to shareholders after five years. At period end, the Fund’s NAV was $8.60.
The Fund’s employment of investment leverage was the
largest detractor from performance versus the Index during the period. The use of leverage has the effect of achieving additional exposure to the loan market, and thus magnifying exposure to the Fund’s underlying investments in both up and
down market environments. The use of leverage hurt performance versus the Index, which does not employ leverage, as leverage amplified the price declines of loans in the Fund’s underlying portfolio during the period.
The Fund’s out-of-Index allocation to corporate high
yield bonds also detracted from Fund performance versus the Index. Rising interest rates led high yield bonds in general to underperform senior loans during the period.
Loan selections within the radio & television industry also
detracted from Fund performance versus the Index; a loan to a struggling sports broadcasting firm was among the Fund’s top relative detractors during the period. Loan selections and underweight positions, relative to the Index, in the
utilities and the lodging & casinos industries dragged on Fund performance versus the Index as well.
In contrast, loan selections in the health care and the
electronics/electrical industries contributed to Fund returns versus the Index. The Fund’s small cash position also helped relative performance as the senior loan asset class delivered negative performance during the period.
See Endnotes and
Additional Disclosures in this report.
Past
performance is no guarantee of future results. Returns are historical and are calculated net of management fees and other expenses by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions
reinvested in accordance with the Fund’s Dividend Reinvestment Plan. Furthermore, returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Performance at market
price will differ from performance at NAV due to variations in the Fund’s market price versus NAV, which may reflect factors such as fluctuations in supply and demand for Fund shares, changes in Fund distributions, shifting market expectations
for the Fund’s future returns and distribution rates, and other considerations affecting the trading prices of closed-end funds. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than
their original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For
performance as of the most recent month-end, please refer to eatonvance.com.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Management’s
Discussion of Fund Performance† — continued
In anticipation of the Fund’s expected termination in
October 2022, management began working in February 2022 to lower the potential risk profile of the portfolio. This benefited relative performance, as the change in fund positioning occurred before the selloff in the loan market that occurred during
the final two months of the period.
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are
historical and are calculated net of management fees and other expenses by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested in accordance with the Fund’s Dividend
Reinvestment Plan. Furthermore, returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Performance at market price will differ from performance at NAV due to variations
in the Fund’s market price versus NAV, which may reflect factors such as fluctuations in supply and demand for Fund shares, changes in Fund distributions, shifting market expectations for the Fund’s future returns and distribution rates,
and other considerations affecting the trading prices of closed-end funds. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance for periods less than or equal
to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month-end, please refer to
eatonvance.com.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Performance
Portfolio Manager(s) Craig P.
Russ, Andrew N. Sveen, CFA, Catherine C. McDermott and Daniel P. McElaney, CFA
| %
Average Annual Total Returns1,2 |
Inception
Date |
One
Year |
Five
Years |
Since
Inception |
| Fund
at NAV |
07/31/2017
|
(4.04)%
|
—%
|
2.30%
|
| Fund
at Market Price |
—
|
(5.83)
|
—
|
2.13
|
|
| S&P/LSTA
Leveraged Loan Index |
—
|
(2.78)%
|
2.91%
|
2.82%
|
| %
Premium/Discount to NAV3 |
|
| |
(0.81)%
|
| Distributions
4 |
|
| Total
Distributions per share for the period |
$0.369
|
| Distribution
Rate at NAV |
3.77%
|
| Distribution
Rate at Market Price |
3.80
|
| %
Total Leverage5 |
|
| Borrowings
|
20.96%
|
Growth of $10,000
This graph shows the change in value of a hypothetical
investment of $10,000 in the Fund for the period indicated. For comparison, the same investment is shown in the indicated index.
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are
historical and are calculated net of management fees and other expenses by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested in accordance with the Fund’s Dividend
Reinvestment Plan. Furthermore, returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Performance at market price will differ from performance at NAV due to variations
in the Fund’s market price versus NAV, which may reflect factors such as fluctuations in supply and demand for Fund shares, changes in Fund distributions, shifting market expectations for the Fund’s future returns and distribution rates,
and other considerations affecting the trading prices of closed-end funds. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance for periods less than or equal
to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month-end, please refer to
eatonvance.com.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
| Top
10 Issuers (% of total investments)* |
|
| TransDigm,
Inc. |
1.5%
|
| Hyland
Software, Inc. |
1.4
|
| Applied
Systems, Inc. |
1.3
|
| Virgin
Media Bristol, LLC |
1.3
|
| Asurion
LLC |
1.3
|
| Epicor
Software Corporation |
1.3
|
| Banff
Merger Sub, Inc. |
1.2
|
| Uber
Technologies, Inc. |
1.2
|
| USI,
Inc. |
1.0
|
| Tibco
Software, Inc. |
1.0
|
| Total
|
12.5%
|
| *
|
Excludes
cash and cash equivalents. |
| Top
10 Industries (% of total investments)* |
| Software
|
20.1%
|
| Diversified
Telecommunication Services |
5.7
|
| IT
Services |
4.5
|
| Health
Care Providers & Services |
4.3
|
| Chemicals
|
4.2
|
| Insurance
|
4.2
|
| Machinery
|
4.2
|
| Health
Care Technology |
3.4
|
| Hotels,
Restaurants & Leisure |
3.4
|
| Commercial
Services & Supplies |
3.1
|
| Total
|
57.1%
|
| *
|
Excludes
cash and cash equivalents. |
| Credit
Quality (% of bonds and loans)1 |
|
1 |
Credit
ratings are categorized using S&P Global Ratings (“S&P”). 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 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 S&P. |
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
The Fund's Investment
Objectives, Principal Strategies and Principal Risks‡
Investment Objectives. The Fund’s
investment objectives are high current income and to return $9.85 per share, the original net asset value per common share before deducting offering costs of $0.02 per common share (“Original NAV”), to holders of common shares of record
on or about October 31, 2022 (the “Termination Date”). Although the Fund has an investment objective of returning Original NAV to common shareholders of record on or about the Termination Date, the Fund may not be successful in achieving
this objective. The return of Original NAV is not an express or implied guarantee obligation of the Fund. See “Term Structure” below.
Principal Strategies. The Fund
seeks to achieve its investment objectives by investing under normal circumstances at least 80% of its managed assets in senior floating-rate loans (“Senior Loans”) of any maturity (“80% Policy”). Managed assets is the total
assets of the Fund, minus the sum of its accrued liabilities (other than Fund liabilities incurred for the express purpose of creating leverage) (“Managed Assets”). As it nears the Termination Date, the Fund may deviate from its 80%
Policy and invest in higher credit quality instruments with maturities extending beyond the Termination Date to seek to enhance the liquidity of its portfolio and reduce investment risk.
Senior Loans are made to U.S. and non-U.S. corporations,
partnerships and other business entities which operate in various industries and geographical regions, including entities in emerging market countries. Senior Loans generally hold one of the most senior positions in the capital structure of a
business entity (referred to as the “borrower” or “issuer”), are secured with first lien priority on specific collateral and have a claim on the assets and/or stock of the borrower that is senior to that held by unsecured
creditors, subordinated debt holders and stockholders of the borrower. Senior Loans held by the Fund typically have a dollar weighted average period until the next interest rate adjustment of approximately 90 days or less.
Loans are typically rated below investment grade (i.e., rated
lower than BBB- by S&P Global Ratings (“S&P”). The Fund’s investments in below investment grade securities are commonly referred to as “junk” or “high yield” investments and are considered
speculative with respect to the issuer’s capacity to pay interest and repay principal. Under normal market conditions, no more than 15% of the Fund’s Managed Assets may be invested in securities rated CCC+ or lower by S&P or Fitch
Ratings, or Caa1 or lower by Moody’s Investor Services, Inc. at time of purchase, or comparably rated by another nationally recognized statistical rating organization or, if unrated, determined by the Fund’s investment adviser to be of
comparable credit quality.
The Fund may use certain
credit derivatives to take on additional credit risk and obtain exposure to Senior Loans. The Fund’s use of total return swaps, credit default swaps (including credit default swaps on high yield bonds or high yield bond indices) and other
derivative transactions other than for hedging purposes, as measured by the total notional amount of such instruments, will not exceed 20% of the Fund’s Managed Assets. The Fund may also use certain derivatives for hedging purposes (e.g., to
hedge credit risk, foreign currency risk or interest rate risk). Such derivatives include futures contracts and options thereon, foreign currency exchange contracts and other currency hedging strategies, and interest rate swaps. There is no limit on
the use of derivatives for hedging purposes.
Under normal
conditions, the Fund may invest up to 20% of its Managed Assets in (1) income producing securities (including, without limitation, U.S. government and U.S. government agency backed debt securities and
investment grade and below investment grade corporate debt securities
(commonly referred to as “junk” or “high yield” securities, collectively “High Yield Bonds”)), (2) loan interests that have a lower than first lien priority on collateral or that are not secured by any specific
collateral of the borrower (“Junior Loans”), (3) warrants and equity securities, including common stock and preferred stock, issued by a borrower or its affiliates and (4) investment companies. The longest maturity for any high yield
securities in which the Fund invests will be not more than six months beyond the Termination Date. The Fund will not invest more than 5% of its Managed Assets in securities issued by a single issuer, other than securities issued by the U.S.
government.
The Fund employs leverage to seek
opportunities for additional income. Leverage may amplify the effect on the Fund’s NAV of any increase or decrease in the value of investments held. There can be no assurance that the use of borrowings will be successful. The Fund has issued
preferred shares and borrowed to establish leverage. Investments in derivative instruments may result in economic leverage for the Fund.
Term Structure. In accordance
with its Declaration of Trust, the Fund will terminate at the close of business on or about the Termination Date. The Fund intends, on or about the Termination Date, to cease its investment operations, liquidate its portfolio (to the extent
possible), retire or redeem its leverage facilities, and distribute all its liquidated net assets to common shareholders of record. However, if the Fund’s Board of Trustees determines it is in the best interest of the shareholders to do so,
upon provision of at least 60 days’ prior written notice to shareholders but without shareholder approval, the Fund’s term may be extended, and the Termination Date deferred, for one period of up to twelve months and one period of up to
six months by a vote of the Board of Trustees.
Principal Risks
Market Risk. The value of
investments held by the Fund may increase or decrease in response to economic, political, financial, public health crises (such as epidemics or pandemics) or other disruptive events (whether real, expected or perceived) in the U.S. and global
markets and include such events as war, natural disasters, epidemics and pandemics, terrorism, conflicts and social unrest. These events may negatively impact broad segments of businesses and populations and may exacerbate pre-existing risks to the
Fund. The frequency and magnitude of resulting changes in the value of the Fund’s investments cannot be predicted. Certain securities and other investments held by the Fund may experience increased volatility, illiquidity, or other potentially
adverse effects in reaction to changing market conditions. Monetary and/or fiscal actions taken by U.S. or foreign governments to stimulate or stabilize the global economy may not be effective and could lead to high market volatility. No active
trading market may exist for certain investments held by the Fund, which may impair the ability of the Fund to sell or to realize the current valuation of such investments in the event of the need to liquidate such assets.
Five Year Term Risk. Because
the assets of the Fund will be liquidated in connection with its termination, the Fund may be required to sell portfolio securities when it otherwise would not, including at times when market conditions are not favorable, or at a time when a
particular security is in default or bankruptcy, or otherwise in severe distress, which may cause the Fund to lose money. Expenses associated with liquidation of the Fund’s assets may also be substantial during this period. In addition, during
the life of the Fund, the value of the Fund’s assets could change significantly, and
See Endnotes and Additional Disclosures in this report.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
The Fund's Investment
Objectives, Principal Strategies and Principal Risks‡ — continued
the Fund could incur substantial losses prior to or at liquidation. Although
the Fund has an investment objective of returning Original NAV to common shareholders of record on or about the Termination Date, the Fund may not be successful in achieving this objective. The return of Original NAV is not an express or implied
guarantee obligation of the Fund. There can be no assurance that the Fund will be able to return Original NAV to shareholders of record, and such return is not backed or otherwise guaranteed by the adviser or any other entity.
The Fund’s ability to return Original NAV to common
shareholders of record on or about the Termination Date will depend on market conditions, the presence or absence of defaulted or distressed securities in the Fund’s portfolio that may prevent those securities from being sold in a timely
manner at a reasonable price, and the performance of the Fund’s portfolio investments and cash flow management. The Fund currently intends to set aside and retain in its net assets (and therefore its NAV) a portion of its net investment
income, and possibly all or a portion of its gains, in pursuit of its objective to return Original NAV to shareholders upon termination. This will reduce the amounts otherwise available for distribution prior to the liquidation of the Fund. In
addition, the Fund’s investment in higher quality and lower yielding securities, especially as the Fund nears its Termination Date, may reduce investment income and, therefore, the monthly dividends during the period closely prior to
termination. To the extent that lower distribution rates may negatively impact common share price, such reduced yield and monthly dividends may cause a reduction of common share price. The Fund may invest less than 80% of its Managed Assets in
Senior Loans shortly prior to the original Termination Date and during any extension of the Termination Date. During such time, the Fund may not earn as much income as it would in Senior Loans.
Credit Risk. Investments in
fixed-income and other debt obligations, including loans, (referred to below as “debt instruments”) are subject to the risk of non-payment of scheduled principal and interest. Changes in economic conditions or other circumstances may
reduce the capacity of the party obligated to make principal and interest payments on such instruments and may lead to defaults. Such non-payments and defaults may reduce the value of Fund shares and income distributions. The value of debt
instruments also may decline because of concerns about the issuer’s ability to make principal and interest payments. In addition, the credit ratings of debt instruments may be lowered if the financial condition of the party obligated to make
payments with respect to such instruments deteriorates. In the event of bankruptcy of the issuer of a debt instrument, the Fund could experience delays or limitations with respect to its ability to realize the benefits of any collateral securing the
instrument. In order to enforce its rights in the event of a default, bankruptcy or similar situation, the Fund may be required to retain legal or similar counsel, which may increase the Fund’s operating expenses and adversely affect net asset
value. Due to their lower place in the borrower’s capital structure secured and unsecured subordinated loans, second lien loans and subordinate bridge loans, involve a higher degree of overall risk than Senior Loans to the same
borrower.
Additional Risks of Loans. Loans are traded in a private, unregulated interdealer or inter-bank resale market and are generally subject to contractual restrictions that must be satisfied before a loan can be bought or sold. These restrictions may
impede the Fund’s ability to buy or sell loans (thus affecting their liquidity) and may negatively impact the transaction price. See also “Market Risk” above. It also may take longer than seven days for transactions in loans to
settle. The types of covenants included in
loan agreements generally vary depending on market conditions, the
creditworthiness of the issuer, the nature of the collateral securing the loan and possibly other factors. Loans with fewer covenants that restrict activities of the borrower may provide the borrower with more flexibility to take actions that may be
detrimental to the loan holders and provide fewer investor protections in the event of such actions or if covenants are breached. The Fund may experience relatively greater realized or unrealized losses or delays and expense in enforcing its rights
with respect to loans with fewer restrictive covenants. Loans to entities located outside of the U.S. may have substantially different lender protections and covenants as compared to loans to U.S. entities and may involve greater risks. The Fund may
have difficulties and incur expense enforcing its rights with respect to non-U.S. loans and such loans could be subject to bankruptcy laws that are materially different than in the U.S. Loans may be structured such that they are not securities under
securities law, and in the event of fraud or misrepresentation by a borrower, lenders may not have the protection of the anti-fraud provisions of the federal securities laws. Loans are also subject to risks associated with other types of income
investments, including credit risk and risks of lower rated investments.
Lower Rated Investments Risk.
Investments rated below investment grade and comparable unrated investments (sometimes referred to as “junk”) have speculative characteristics because of the credit risk associated with their issuers. Changes in economic conditions or
other circumstances typically have a greater effect on the ability of issuers of lower rated investments to make principal and interest payments than they do on issuers of higher rated investments. An economic downturn generally leads to a higher
non-payment rate, and a lower rated investment may lose significant value before a default occurs. Lower rated investments typically are subject to greater price volatility and illiquidity than higher rated investments.
Interest Rate Risk. In general,
the value of debt instruments will fluctuate based on changes in interest rates. The value of these securities is likely to increase when interest rates fall and decline when interest rates rise. Duration measures the time-weighted expected cash
flows of a fixed-income security, while maturity refers to the amount of time until a fixed-income security matures. Generally, securities with longer durations or maturities are more sensitive to changes in interest rates than securities with
shorter durations or maturities, causing them to be more volatile. Conversely, fixed-income securities with shorter durations or maturities will be less volatile but may provide lower returns than fixed-income securities with longer durations or
maturities. The impact of interest rate changes is significantly less for floating-rate instruments that have relatively short periodic rate resets (e.g., ninety days or less). In a rising interest rate environment, the duration of income securities
that have the ability to be prepaid or called by the issuer may be extended. In a declining interest rate environment, the proceeds from prepaid or maturing instruments may have to be reinvested at a lower interest rate.
LIBOR Risk. The London
Interbank Offered Rate or LIBOR is used throughout global banking and financial industries to determine interest rates for a variety of financial instruments (such as debt instruments and derivatives) and borrowing arrangements. The ICE Benchmark
Administration Limited, the administrator of LIBOR ceased publishing certain LIBOR settings on December 31, 2021, and is expected to cease publishing the remaining LIBOR settings on June 30, 2023. The Fund has exposure to LIBOR-based instruments.
Although the transition process away from LIBOR has become increasingly well defined in advance of the
See Endnotes and Additional Disclosures in this report.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
The Fund's Investment
Objectives, Principal Strategies and Principal Risks‡ — continued
anticipated discontinuation, the impact on certain debt securities,
derivatives and other financial instruments that utilize LIBOR remains uncertain. Any effects of the transition away from LIBOR and the adoption of alternative reference rates, as well as other unforeseen effects, could result in losses to the Fund,
and such effects may occur prior to the anticipated discontinuation of the remaining LIBOR settings in 2023. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition to replacement rates may be exacerbated if an
orderly transition to an alternative reference rate is not completed in a timely manner.
Leverage Risk. Leverage,
including leverage from the issuance of preferred shares and borrowings, creates risks, including the likelihood of greater volatility of NAV and market price of, and distributions from, the common shares and the risk that fluctuations in dividend
rates on preferred shares and in the costs of borrowings may affect the return to common shareholders. To the extent the income derived from investments purchased with funds received from leverage exceeds the cost of leverage, the Fund’s
distributions will be greater than if leverage had not been used. Conversely, if the income from the investments purchased with such funds is not sufficient to cover the cost of leverage, the amount of income available for distribution to common
shareholders will be less than if leverage had not been used. In the latter case, the investment adviser may nevertheless determine to maintain the Fund’s leveraged position if it deems such action to be appropriate. While the Fund has
preferred shares or borrowings outstanding, an increase in short-term rates would also result in an increased cost of leverage, which would adversely affect the Fund’s income available for distribution. In connection with its borrowings and
preferred shares, the Fund will be required to maintain specified asset coverage by applicable federal securities laws and (as applicable) the terms of the preferred shares and its credit facility. The Fund may be required to dispose of portfolio
investments on unfavorable terms if market fluctuations or other factors cause the required asset coverage to be less than the prescribed amount. There can be no assurance that a leveraging strategy will be successful.
Foreign Investment Risk.
Foreign investments can be adversely affected by political, economic and market developments abroad, including the imposition of economic and other sanctions by the United States or another country. There may be less publicly available information
about foreign issuers because they may not be subject to reporting practices, requirements or regulations comparable to those to which United States companies are subject. Foreign markets may be smaller, less liquid and more volatile than the major
markets in the United States, and as a result, Fund share values may be more volatile. Trading in foreign markets typically involves higher expense than trading in the United States. The Fund may have difficulties enforcing its legal or contractual
rights in a foreign country.
Emerging Markets
Investment Risk. Investment markets within emerging market countries are typically smaller, less liquid, less developed and more volatile than those in more developed markets like the United States, and may be
focused in certain sectors. Emerging market securities often involve greater risks than developed market securities. The information available about an emerging market issuer may be less reliable than for comparable issuers in more developed capital
markets.
Currency Risk. Exchange rates for currencies
fluctuate daily. The value of foreign investments may be affected favorably or unfavorably by changes in currency exchange rates in relation to the U.S. dollar. Currency markets generally are not as regulated as securities markets and currency
transactions are subject to settlement, custodial and other operational risks.
Derivatives Risk. The
Fund’s exposure to derivatives involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other investments. The use of derivatives can lead to losses because of adverse movements in
the price or value of the security, instrument, index, currency, commodity, economic indicator or event underlying a derivative (“reference instrument”), due to failure of a counterparty or due to tax or regulatory constraints.
Derivatives may create leverage in the Fund, which represents a non-cash exposure to the underlying reference instrument. Leverage can increase both the risk and return potential of the Fund. Derivatives risk may be more significant when derivatives
are used to enhance return or as a substitute for a cash investment position, rather than solely to hedge the risk of a position held by the Fund. Use of derivatives involves the exercise of specialized skill and judgment, and a transaction may be
unsuccessful in whole or in part because of market behavior or unexpected events. Changes in the value of a derivative (including one used for hedging) may not correlate perfectly with the underlying reference instrument. Derivative instruments
traded in over-the-counter markets may be difficult to value, may be illiquid, and may be subject to wide swings in valuation caused by changes in the value of the underlying reference instrument. If a derivative’s counterparty is unable to
honor its commitments, the value of Fund shares may decline and the Fund could experience delays in the return of collateral or other assets held by the counterparty. The loss on derivative transactions may substantially exceed the initial
investment, particularly when there is no stated limit on the Fund’s use of derivatives. A derivative investment also involves the risks relating to the reference instrument underlying the investment.
U.S. Government Securities
Risk. Although certain U.S. Government sponsored agencies (such as the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association) may be chartered or sponsored by acts of Congress, their
securities are neither issued nor guaranteed by the U.S. Treasury. U.S. Treasury securities generally have a lower return than other obligations because of their higher credit quality and market liquidity.
Equity Securities Risk. The
value of equity securities and related instruments may decline in response to adverse changes in the economy or the economic outlook; deterioration in investor sentiment; interest rate, currency, and commodity price fluctuations; adverse
geopolitical, social or environmental developments; issuer and sector-specific considerations; unexpected trading activity among retail investors; or other factors. Market conditions may affect certain types of stocks to a greater extent than other
types of stocks. If the stock market declines in value, the value of the Fund’s equity securities will also likely decline. Although prices can rebound, there is no assurance that values will return to previous levels.
Liquidity Risk. The Fund is
exposed to liquidity risk when trading volume, lack of a market maker or trading partner, large position size, market conditions, or legal restrictions impair its ability to sell particular investments or to sell them at advantageous market prices.
Consequently, the Fund may have to accept a lower price to sell an investment or continue to hold it or keep the position open, sell other investments to raise cash or
See Endnotes and Additional Disclosures in this report.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
The Fund's Investment
Objectives, Principal Strategies and Principal Risks‡ — continued
abandon an investment opportunity, any of which could have a negative effect
on the Fund’s performance. These effects may be exacerbated during times of financial or political stress.
Market Discount Risk. As with
any security, the market value of the common shares may increase or decrease from the amount initially paid for the common shares. The Fund's common shares have traded both at a premium and at a discount relative to NAV. The shares of closed-end
management investment companies frequently trade at a discount from their NAV. This is a risk separate and distinct from the risk that the Fund's NAV may decrease.
Risks Associated with Active Management. The success of the Fund’s investment strategy depends on portfolio management’s successful application of analytical skills and investment judgment. Active management involves subjective
decisions.
Recent Market Conditions. An outbreak of respiratory disease caused by a novel coronavirus was first detected in China in late 2019 and subsequently spread internationally. This coronavirus has resulted in closing borders, enhanced health
screenings, changes to healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this coronavirus has resulted in a
substantial economic downturn, which may continue for an extended period of time. Health crises caused by outbreaks of disease, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and economic risks and disrupt
normal market conditions and operations. The impact of this outbreak has negatively affected the worldwide economy, as well as the economies of individual countries and industries, and could continue to affect the market in significant and
unforeseen ways. Other epidemics and pandemics that may arise in the future may have similar effects. For example, a global pandemic or other widespread health crisis could cause substantial market volatility and exchange trading suspensions and
closures. In addition, the increasing interconnectedness of markets around the world may result in many markets being affected by events or conditions in a single country or region or events affecting a single or small number of issuers. The
coronavirus outbreak and public and private sector responses thereto have led to large portions of the populations of many countries working from home for indefinite periods of time, temporary or permanent layoffs, disruptions in supply chains, and
lack of availability of certain goods. The impact of such responses could adversely affect the information technology and operational systems upon which the Fund and the Fund’s service providers rely, and could otherwise disrupt the ability of
the employees of the Fund’s service providers to perform critical tasks relating to the Fund. Any such impact could adversely affect the Fund’s performance, or the performance of the securities in which the Fund invests and may lead to
losses on your investment in the Fund.
Cybersecurity
Risk. With the increased use of technologies by Fund service providers to conduct business, such as the Internet, the Fund is susceptible to operational, information security and related risks. In general, cyber
incidents can result from deliberate attacks or unintentional events. Cybersecurity failures by or breaches of the Fund’s investment adviser or administrator and other service providers (including, but not limited to, the custodian or transfer
agent), and the issuers of securities in which the Fund invests, have the ability to cause disruptions and impact business operations potentially resulting in financial losses, interference with the Fund’s ability to calculate its net asset
value, impediments to trading, the
inability of Fund shareholders to transact business, violations of applicable
privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, or additional compliance costs.
General Fund Investing Risks.
The Fund is not a complete investment program and there is no guarantee that the Fund will achieve its investment objective. It is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit in a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Important Notice to Shareholders
The following information in this annual report is a summary of
certain changes since June 30, 2021. This information may not reflect all of the changes that have occurred since you purchased this fund.
As previously announced on March 11, 2022, the Trust's
portfolio managers include Craig P. Russ, Andrew N. Sveen, Catherine C. McDermott and Daniel McElaney.
In addition, effective July 1, 2022, the Trust is managed by
Andrew N. Sveen, Catherine C. McDermott and Daniel P. McElaney.
See Endnotes and Additional Disclosures in this report.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Endnotes and
Additional Disclosures
| †
|
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. |
| ‡ |
The information contained
herein is provided for informational purposes only and does not constitute a solicitation of an offer to buy or sell Fund shares. Common shares of the Fund are available for purchase and sale only at current market prices in secondary market
trading. There is no assurance that the Fund will achieve its investment objective. The Fund is subject to numerous risks, including investment risks. Shares of closed-end funds often trade at a discount from their NAV. The Fund is not a complete
investment program and you may lose money investing in the Fund. |
| |
|
| 1 |
S&P/LSTA Leveraged Loan
Index is an unmanaged index of the institutional leveraged loan market. S&P/LSTA Leveraged Loan indices are a product of S&P Dow Jones Indices LLC (“S&P DJI”) and have been licensed for use. S&P® is a registered
trademark of S&P DJI; Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); LSTA is a trademark of Loan Syndications and Trading Association, Inc. S&P DJI, Dow Jones, their respective
affiliates and their third party licensors do not sponsor, endorse, sell or promote the Fund, will not have any liability with respect thereto and do not have any liability for any errors, omissions, or interruptions of the S&P Dow Jones
Indices. 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 |
Performance
results reflect the effects of leverage. Performance since inception for an index, if presented, is the performance since the Fund’s or oldest share class’ inception, as applicable. |
|
3 |
The
shares of the Fund often trade at a discount or premium to their net asset value. The discount or premium may vary over time and may be higher or lower than what is quoted in this report. For up-to-date premium/discount information, please refer to
https://funds.eatonvance.com/closed-end-fund-prices.php. |
| 4 |
The Distribution Rate is
based on the Fund’s last regular distribution per share in the period (annualized) divided by the Fund’s NAV or market price at the end of the period. The Fund’s distributions may be comprised of amounts characterized for federal
income tax purposes as qualified and non-qualified ordinary dividends, capital gains and nondividend distributions, also known as return of capital. For additional information about nondividend distributions, please refer to Eaton Vance Closed-End
Fund Distribution Notices (19a) posted on our website, eatonvance.com. The Fund will determine the federal income tax character of distributions paid to a shareholder after the end of the calendar year. This is reported on the IRS form 1099-DIV and
provided to the shareholder shortly after each year-end. For information about the tax character of distributions made in prior calendar years, please refer to Performance-Tax Character of Distributions on the Fund’s webpage available at
eatonvance. com. The Fund’s distributions are determined by the investment adviser based on its current assessment of the Fund’s long-term return potential. Fund distributions may be affected by numerous factors including changes in Fund
performance, the cost of financing for leverage, portfolio holdings, realized and projected returns, and other factors. As portfolio and market conditions change, the rate of distributions paid by the Fund could change. |
|
5 |
Leverage
represents the liquidation value of the Fund’s borrowings outstanding as a percentage of Fund net assets applicable to common shares plus borrowings outstanding. Use of leverage creates an opportunity for income, but creates risks including
greater price volatility. The cost of leverage rises and falls with changes in short-term interest rates. The Fund may be required to maintain prescribed asset coverage for its leverage and may be required to reduce its leverage at an inopportune
time. |
| |
Fund profile subject to
change due to active management. |
| |
Important Notice to
Shareholders |
| |
Effective
April 29, 2022, the Trust began to prepare for its expected termination on October 31, 2022 (the Termination Date). During this period, the Trust may deviate from its policy of investing at least 80% of managed assets in senior floating-rate loans
and invest in higher credit quality instruments with maturities extending beyond the Termination Date to seek to enhance the liquidity of its portfolio and reduce investment risk. Investing in higher credit quality instruments may reduce the amount
of income available for distribution to common shareholders. |
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
| Security
|
Principal
Amount
(000's omitted) |
Value
|
| Building
and Development — 0.2% |
| Taylor
Morrison Communities, Inc./Taylor Morrison Holdings II, Inc., 5.875%, 4/15/23(1) |
$
|
500
|
$
499,660 |
| |
|
|
$ 499,660
|
| Cable
and Satellite Television — 0.5% |
| CSC
Holdings, LLC, 5.875%, 9/15/22 |
$
|
925
|
$
921,726 |
| |
|
|
$ 921,726
|
| Financial
Intermediaries — 0.9% |
| Ford
Motor Credit Co., LLC, 3.087%, 1/9/23 |
$
|
925
|
$
917,033 |
| Navient
Corp., 5.50%, 1/25/23 |
|
1,007
|
1,000,082
|
| |
|
|
$ 1,917,115
|
| Lodging
and Casinos — 0.2% |
| MGM
Resorts International, 6.00%, 3/15/23 |
$
|
310
|
$
309,834 |
| |
|
|
$ 309,834
|
| Oil
and Gas — 0.5% |
| Energy
Transfer, L.P., 4.25%, 3/15/23 |
$
|
1,000
|
$
999,762 |
| |
|
|
$ 999,762
|
| Telecommunications
— 0.7% |
| Sprint
Communications, Inc., 6.00%, 11/15/22 |
$
|
1,500
|
$
1,511,036 |
| |
|
|
$ 1,511,036
|
Total
Corporate Bonds
(identified cost $6,181,547) |
|
|
$ 6,159,133
|
| Senior
Floating-Rate Loans — 119.3%(2) |
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| Aerospace
and Defense — 2.6% |
| AI
Convoy (Luxembourg) S.a.r.l., Term Loan, 5.052%, (USD LIBOR + 3.50%), 1/18/27(3) |
$
|
268
|
$ 257,057
|
| Dynasty
Acquisition Co., Inc.: |
|
|
|
| Term
Loan, 5.166%, (1 mo. USD LIBOR + 3.50%), 4/6/26 |
|
651
|
603,101
|
| Term
Loan, 5.166%, (1 mo. USD LIBOR + 3.50%), 4/6/26 |
|
350
|
324,248 |
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| Aerospace
and Defense (continued) |
| Spirit
Aerosystems, Inc., Term Loan, 5.416%, (1 mo. USD LIBOR + 3.75%), 1/15/25 |
$
|
222
|
$
216,552 |
| TransDigm,
Inc.: |
|
|
|
| Term
Loan, 3.916%, (1 mo. USD LIBOR + 2.25%), 8/22/24 |
|
1,171
|
1,131,289
|
| Term
Loan, 3.916%, (1 mo. USD LIBOR + 2.25%), 12/9/25 |
|
2,852
|
2,715,263
|
| |
|
|
$ 5,247,510
|
| Airlines
— 0.1% |
| Mileage
Plus Holdings, LLC, Term Loan, 7.313%, (3 mo. USD LIBOR + 5.25%), 6/21/27 |
$
|
300
|
$
297,984 |
| |
|
|
$ 297,984
|
| Auto
Components — 2.3% |
| Adient
US, LLC, Term Loan, 4.916%, (1 mo. USD LIBOR + 3.25%), 4/10/28 |
$
|
371
|
$
346,809 |
| Chassix,
Inc., Term Loan, 7.325%, (USD LIBOR + 5.50%), 11/15/23(3) |
|
239
|
202,539
|
| Clarios
Global, L.P., Term Loan, 4.916%, (1 mo. USD LIBOR + 3.25%), 4/30/26 |
|
1,204
|
1,123,123
|
| DexKo
Global, Inc.: |
|
|
|
| Term
Loan, 5.402%, (3 mo. USD LIBOR + 3.75%), 10/4/28 |
|
59
|
54,515
|
| Term
Loan, 5.982%, (3 mo. USD LIBOR + 3.75%), 10/4/28 |
|
314
|
290,018
|
| Garrett
LX I S.a.r.l., Term Loan, 4.49%, (3 mo. USD LIBOR + 3.25%), 4/30/28 |
|
273
|
253,832
|
| LTI
Holdings, Inc.: |
|
|
|
| Term
Loan, 5.166%, (1 mo. USD LIBOR + 3.50%), 9/6/25 |
|
168
|
156,647
|
| Term
Loan, 6.416%, (1 mo. USD LIBOR + 4.75%), 7/24/26 |
|
73
|
68,197
|
| Term
Loan, 6.416%, (1 mo. USD LIBOR + 4.75%), 7/24/26 |
|
139
|
130,866
|
| Term
Loan - Second Lien, 6.416%, (1 mo. USD LIBOR + 4.75%), 7/24/26 |
|
84
|
79,312
|
| Tenneco,
Inc., Term Loan, 4.666%, (1 mo. USD LIBOR + 3.00%), 10/1/25 |
|
1,375
|
1,323,558
|
| Truck
Hero, Inc., Term Loan, 5.166%, (1 mo. USD LIBOR + 3.50%), 1/31/28 |
|
469
|
421,453
|
| Wheel
Pros, LLC, Term Loan, 6.095%, (1 mo. USD LIBOR + 4.50%), 5/11/28 |
|
397
|
329,510
|
| |
|
|
$ 4,780,379
|
| Automobiles
— 0.3% |
| Bombardier
Recreational Products, Inc., Term Loan, 3.666%, (1 mo. USD LIBOR + 2.00%), 5/24/27 |
$
|
196
|
$
181,833 |
11
See Notes to Financial Statements.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Portfolio of
Investments — continued
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| Automobiles
(continued) |
| MajorDrive
Holdings IV, LLC, Term Loan, 5.625%, (3 mo. USD LIBOR + 4.00%), 6/1/28 |
$
|
248
|
$
224,193 |
| Thor
Industries, Inc., Term Loan, 4.688%, (1 mo. USD LIBOR + 3.00%), 2/1/26 |
|
303
|
296,474
|
| |
|
|
$ 702,500
|
| Beverages
— 0.2% |
| Arterra
Wines Canada, Inc., Term Loan, 5.75%, (3 mo. USD LIBOR + 3.50%), 11/24/27 |
$
|
394
|
$
370,852 |
| |
|
|
$ 370,852
|
| Biotechnology
— 0.3% |
| Alltech,
Inc., Term Loan, 5.666%, (1 mo. USD LIBOR + 4.00%), 10/13/28 |
$
|
224
|
$
211,002 |
| Grifols
Worldwide Operations USA, Inc., Term Loan, 3.666%, (1 mo. USD LIBOR + 2.00%), 11/15/27 |
|
324
|
306,887
|
| |
|
|
$ 517,889
|
| Building
Products — 1.4% |
| ACProducts,
Inc., Term Loan, 6.97%, (USD LIBOR + 4.25%), 5/17/28(3) |
$
|
743
|
$
578,686 |
| Cornerstone
Building Brands, Inc., Term Loan, 4.574%, (1 mo. USD LIBOR + 3.25%), 4/12/28 |
|
321
|
267,782
|
| Gardner
Denver, Inc., Term Loan, 3.375%, (1 mo. USD LIBOR + 1.75%), 3/1/27 |
|
433
|
416,784
|
| Ingersoll-Rand
Services Company, Term Loan, 3.375%, (1 mo. USD LIBOR + 1.85%), 3/1/27 |
|
513
|
494,211
|
| LHS
Borrower, LLC, Term Loan, 6.375%, (SOFR + 4.75%), 2/16/29 |
|
648
|
588,400
|
| MI
Windows and Doors, LLC, Term Loan, 5.125%, (SOFR + 3.50%), 12/18/27 |
|
108
|
101,242
|
| Standard
Industries, Inc., Term Loan, 3.788%, (6 mo. USD LIBOR + 2.50%), 9/22/28 |
|
492
|
477,823
|
| |
|
|
$ 2,924,928
|
| Capital
Markets — 2.3% |
| Advisor
Group, Inc., Term Loan, 6.166%, (1 mo. USD LIBOR + 4.50%), 7/31/26 |
$
|
414
|
$
395,210 |
| Aretec
Group, Inc., Term Loan, 5.916%, (1 mo. USD LIBOR + 4.25%), 10/1/25 |
|
2,466
|
2,351,306
|
| Brookfield
Property REIT, Inc., Term Loan, 4.125%, (SOFR + 2.50%), 8/27/25 |
|
287
|
275,505
|
| EIG
Management Company, LLC, Term Loan, 5.416%, (1 mo. USD LIBOR + 3.75%), 2/22/25 |
|
96
|
92,877 |
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| Capital
Markets (continued) |
| Franklin
Square Holdings, L.P., Term Loan, 3.938%, (1 mo. USD LIBOR + 2.25%), 8/1/25 |
$
|
192
|
$
185,762 |
| Hudson
River Trading, LLC, Term Loan, 4.64%, (SOFR + 3.00%), 3/20/28 |
|
939
|
879,193
|
| Mariner
Wealth Advisors, LLC: |
|
|
|
| Term
Loan, 4.496%, (SOFR + 3.25%), 8/18/28 |
|
28
|
26,418
|
| Term
Loan, 4.496%, (SOFR + 3.25%), 8/18/28 |
|
195
|
184,652
|
| Victory
Capital Holdings, Inc., Term Loan, 3.219%, (3 mo. USD LIBOR + 2.25%), 7/1/26 |
|
343
|
329,732
|
| |
|
|
$ 4,720,655
|
| Chemicals
— 5.3% |
| Aruba
Investments, Inc., Term Loan, 5.633%, (1 mo. USD LIBOR + 4.00%), 11/24/27 |
$
|
296
|
$
275,523 |
| Atotech
B.V., Term Loan, 4.166%, (1 mo. USD LIBOR + 2.50%), 3/18/28 |
|
396
|
379,335
|
| Charter
NEX US, Inc., Term Loan, 5.416%, (1 mo. USD LIBOR + 3.75%), 12/1/27 |
|
173
|
163,265
|
| CPC
Acquisition Corp., Term Loan, 6.00%, (3 mo. USD LIBOR + 3.75%), 12/29/27 |
|
296
|
261,194
|
| Gemini
HDPE, LLC, Term Loan, 4.239%, (3 mo. USD LIBOR + 3.00%), 12/31/27 |
|
284
|
270,937
|
| INEOS
Enterprises Holdings US Finco, LLC, Term Loan, 5.075%, (3 mo. USD LIBOR + 3.50%), 8/28/26 |
|
80
|
77,625
|
| INEOS
Styrolution US Holding, LLC, Term Loan, 4.416%, (1 mo. USD LIBOR + 2.75%), 1/29/26 |
|
965
|
913,368
|
| INEOS
US Finance, LLC: |
|
|
|
| Term
Loan, 3.666%, (1 mo. USD LIBOR + 2.00%), 4/1/24 |
|
1,242
|
1,188,736
|
| Term
Loan, 4.166%, (1 mo. USD LIBOR + 2.50%), 11/8/28 |
|
274
|
260,940
|
| Kraton
Corporation, Term Loan, 5.109%, (SOFR + 3.25%), 3/15/29 |
|
200
|
190,522
|
| Lonza
Group AG, Term Loan, 6.25%, (3 mo. USD LIBOR + 4.00%), 7/3/28 |
|
719
|
645,813
|
| LSF11
Skyscraper Holdco S.a.r.l., Term Loan, 5.75%, (3 mo. USD LIBOR + 3.50%), 9/29/27 |
|
321
|
309,724
|
| Messer
Industries GmbH, Term Loan, 4.75%, (3 mo. USD LIBOR + 2.50%), 3/2/26 |
|
859
|
824,417
|
| Momentive
Performance Materials, Inc., Term Loan, 4.92%, (1 mo. USD LIBOR + 3.25%), 5/15/24 |
|
1,067
|
1,034,399
|
| Orion
Engineered Carbons GmbH, Term Loan, 4.50%, (3 mo. USD LIBOR + 2.25%), 9/24/28 |
|
174
|
169,997
|
| Rohm
Holding GmbH, Term Loan, 5.269%, (6 mo. USD LIBOR + 4.75%), 7/31/26 |
|
146
|
122,842
|
| Starfruit
Finco B.V., Term Loan, 5.25%, (3 mo. USD LIBOR + 3.00%), 10/1/25 |
|
835
|
790,367 |
12
See Notes to Financial Statements.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Portfolio of
Investments — continued
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| Chemicals
(continued) |
| Tronox
Finance, LLC, Term Loan, 4.402%, (USD LIBOR + 2.25%), 3/10/28(3) |
$
|
1,249
|
$
1,192,332 |
| Venator
Materials Corporation, Term Loan, 4.666%, (1 mo. USD LIBOR + 3.00%), 8/8/24 |
|
1,238
|
1,174,790
|
| W.R.
Grace & Co.-Conn., Term Loan, 6.063%, (3 mo. USD LIBOR + 3.75%), 9/22/28 |
|
498
|
470,137
|
| |
|
|
$ 10,716,263
|
| Commercial
Services & Supplies — 3.9% |
| Allied
Universal Holdco, LLC, Term Loan, 5.416%, (1 mo. USD LIBOR + 3.75%), 5/12/28 |
$
|
1,299
|
$
1,195,816 |
| Aramark
Services, Inc., Term Loan, 3.416%, (1 mo. USD LIBOR + 1.75%), 3/11/25 |
|
326
|
312,695
|
| Asplundh
Tree Expert, LLC, Term Loan, 3.416%, (1 mo. USD LIBOR + 1.75%), 9/7/27 |
|
467
|
453,020
|
| Belfor
Holdings, Inc., Term Loan, 5.416%, (1 mo. USD LIBOR + 3.75%), 4/6/26 |
|
194
|
188,180
|
| EnergySolutions,
LLC, Term Loan, 6.00%, (3 mo. USD LIBOR + 3.75%), 5/9/25 |
|
601
|
562,998
|
| Garda
World Security Corporation, Term Loan, 5.749%, (SOFR + 4.25%), 2/1/29 |
|
125
|
115,859
|
| GFL
Environmental, Inc., Term Loan, 4.239%, (3 mo. USD LIBOR + 3.00%), 5/30/25 |
|
779
|
762,699
|
| Harsco
Corporation, Term Loan, 3.938%, (1 mo. USD LIBOR + 2.25%), 3/10/28 |
|
173
|
160,689
|
| IRI
Holdings, Inc., Term Loan, 5.916%, (1 mo. USD LIBOR + 4.25%), 12/1/25 |
|
603
|
599,104
|
| LABL,
Inc., Term Loan, 6.666%, (1 mo. USD LIBOR + 5.00%), 10/29/28 |
|
323
|
297,909
|
| PECF
USS Intermediate Holding III Corporation, Term Loan, 5.916%, (1 mo. USD LIBOR + 4.25%), 12/15/28 |
|
299
|
270,665
|
| Phoenix
Services International, LLC, Term Loan, 5.416%, (1 mo. USD LIBOR + 3.75%), 3/1/25 |
|
335
|
254,695
|
| Prime
Security Services Borrower, LLC, Term Loan, 3.557%, (USD LIBOR + 2.75%), 9/23/26(3) |
|
983
|
921,360
|
| SITEL
Worldwide Corporation, Term Loan, 6.01%, (3 mo. USD LIBOR + 3.75%), 8/28/28 |
|
819
|
785,036
|
| TMS
International Corp., Term Loan, 4.129%, (USD LIBOR + 2.75%), 8/14/24(3) |
|
99
|
94,560
|
| TruGreen
Limited Partnership, Term Loan, 5.666%, (1 mo. USD LIBOR + 4.00%), 11/2/27 |
|
222
|
211,375
|
| Werner
FinCo, L.P., Term Loan, 5.666%, (1 mo. USD LIBOR + 4.00%), 7/24/24 |
|
834
|
787,881
|
| |
|
|
$ 7,974,541
|
| Communications
Equipment — 0.6% |
| CommScope,
Inc., Term Loan, 4.916%, (1 mo. USD LIBOR + 3.25%), 4/6/26 |
$
|
681
|
$
614,944 |
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| Communications
Equipment (continued) |
| Plantronics,
Inc., Term Loan, 4.166%, (1 mo. USD LIBOR + 2.50%), 7/2/25 |
$
|
450
|
$
444,589 |
| Tiger
Acquisition, LLC, Term Loan, 4.916%, (1 mo. USD LIBOR + 3.25%), 6/1/28 |
|
223
|
199,586
|
| |
|
|
$ 1,259,119
|
| Construction
Materials — 0.9% |
| Quikrete
Holdings, Inc., Term Loan, 4.291%, (1 mo. USD LIBOR + 2.63%), 2/1/27 |
$
|
1,884
|
$
1,776,656 |
| |
|
|
$ 1,776,656
|
| Containers
& Packaging — 2.0% |
| BWAY
Holding Company, Term Loan, 4.312%, (1 mo. USD LIBOR + 3.25%), 4/3/24 |
$
|
713
|
$
672,244 |
| Pregis
TopCo Corporation, Term Loan, 5.666%, (1 mo. USD LIBOR + 4.00%), 7/31/26 |
|
244
|
230,344
|
| Pretium
PKG Holdings, Inc.: |
|
|
|
| Term
Loan, 5.044%, (USD LIBOR + 4.00%), 10/2/28(3) |
|
274
|
247,859
|
| Term
Loan - Second Lien, 7.793%, (USD LIBOR + 6.75%), 10/1/29(3) |
|
175
|
151,813
|
| Proampac
PG Borrower, LLC, Term Loan, 5.008%, (USD LIBOR + 3.75%), 11/3/25(3) |
|
905
|
841,003
|
| Reynolds
Group Holdings, Inc.: |
|
|
|
| Term
Loan, 4.916%, (1 mo. USD LIBOR + 3.25%), 2/5/26 |
|
566
|
530,032
|
| Term
Loan, 5.166%, (1 mo. USD LIBOR + 3.50%), 9/24/28 |
|
447
|
417,706
|
| Trident
TPI Holdings, Inc.: |
|
|
|
| Term
Loan, 5.50%, (3 mo. USD LIBOR + 3.25%), 10/17/24 |
|
744
|
719,211
|
| Term
Loan, 5.597%, (3 mo. USD LIBOR + 4.00%), 9/15/28(4) |
|
43
|
40,700
|
| Term
Loan, 6.25%, (3 mo. USD LIBOR + 4.00%), 9/15/28 |
|
304
|
285,969
|
| |
|
|
$ 4,136,881
|
| Distributors
— 0.7% |
| Autokiniton
US Holdings, Inc., Term Loan, 5.62%, (1 mo. USD LIBOR + 4.50%), 4/6/28 |
$
|
743
|
$
688,669 |
| White
Cap Buyer, LLC, Term Loan, 5.275%, (SOFR + 3.75%), 10/19/27 |
|
862
|
794,566
|
| |
|
|
$ 1,483,235
|
| Diversified
Consumer Services — 0.8% |
| Ascend
Learning, LLC, Term Loan, 5.166%, (1 mo. USD LIBOR + 3.50%), 12/11/28 |
$
|
298
|
$
276,859 |
13
See Notes to Financial Statements.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Portfolio of
Investments — continued
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| Diversified
Consumer Services (continued) |
| KUEHG
Corp., Term Loan, 6.00%, (3 mo. USD LIBOR + 3.75%), 2/21/25 |
$
|
1,354
|
$
1,265,572 |
| Sotheby's,
Term Loan, 5.544%, (3 mo. USD LIBOR + 4.50%), 1/15/27 |
|
171
|
163,947
|
| |
|
|
$ 1,706,378
|
| Diversified
Telecommunication Services — 7.1% |
| Altice
France S.A.: |
|
|
|
| Term
Loan, 4.732%, (3 mo. USD LIBOR + 3.69%), 1/31/26 |
$
|
1,242
|
$
1,132,869 |
| Term
Loan, 5.411%, (3 mo. USD LIBOR + 4.00%), 8/14/26 |
|
1,477
|
1,351,649
|
| CenturyLink,
Inc., Term Loan, 3.916%, (1 mo. USD LIBOR + 2.25%), 3/15/27 |
|
2,706
|
2,493,120
|
| GEE
Holdings 2, LLC, Term Loan - Second Lien, 9.25%, (3 mo. USD LIBOR + 8.25%, Floor 1.00%), 2.50% cash, 6.75% PIK, 3/23/26 |
|
8
|
7,160
|
| Telenet
Financing USD, LLC, Term Loan, 3.324%, (1 mo. USD LIBOR + 2.00%), 4/30/28 |
|
1,500
|
1,394,374
|
| UPC
Broadband Holding B.V., Term Loan, 3.574%, (1 mo. USD LIBOR + 2.25%), 4/30/28 |
|
325
|
308,181
|
| UPC
Financing Partnership, Term Loan, 4.324%, (1 mo. USD LIBOR + 3.00%), 1/31/29 |
|
1,275
|
1,210,188
|
| Virgin
Media Bristol, LLC: |
|
|
|
| Term
Loan, 3.824%, (1 mo. USD LIBOR + 2.50%), 1/31/28 |
|
3,100
|
2,911,092
|
| Term
Loan, 4.574%, (1 mo. USD LIBOR + 3.25%), 1/31/29 |
|
475
|
455,406
|
| Zayo
Group Holdings, Inc., Term Loan, 4.666%, (1 mo. USD LIBOR + 3.00%), 3/9/27 |
|
919
|
824,627
|
| Ziggo
Financing Partnership, Term Loan, 3.824%, (1 mo. USD LIBOR + 2.50%), 4/30/28 |
|
2,650
|
2,476,094
|
| |
|
|
$ 14,564,760
|
| Electrical
Equipment — 0.9% |
| Brookfield
WEC Holdings, Inc., Term Loan, 4.416%, (1 mo. USD LIBOR + 2.75%), 8/1/25 |
$
|
1,256
|
$
1,190,710 |
| GrafTech
Finance, Inc., Term Loan, 4.666%, (1 mo. USD LIBOR + 3.00%), 2/12/25 |
|
227
|
219,532
|
| II-VI
Incorporated, Term Loan, 1/14/28(5) |
|
475
|
456,238
|
| |
|
|
$ 1,866,480
|
| Electronic
Equipment, Instruments & Components — 1.4% |
| Chamberlain
Group, Inc., Term Loan, 5.166%, (1 mo. USD LIBOR + 3.50%), 11/3/28 |
$
|
721
|
$
657,654 |
| CPI
International, Inc., Term Loan, 4.739%, (3 mo. USD LIBOR + 3.50%), 7/26/24 |
|
678
|
669,031 |
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| Electronic
Equipment, Instruments & Components (continued) |
| Creation
Technologies, Inc., Term Loan, 6.462%, (3 mo. USD LIBOR + 5.50%), 10/5/28 |
$
|
450
|
$
393,750 |
| EXC
Holdings III Corp., Term Loan, 5.75%, (3 mo. USD LIBOR + 3.50%), 12/2/24 |
|
854
|
820,469
|
| Mirion
Technologies, Inc., Term Loan, 5.627%, (6 mo. USD LIBOR + 2.75%), 10/20/28 |
|
323
|
305,628
|
| |
|
|
$ 2,846,532
|
| Engineering
& Construction — 1.6% |
| Aegion
Corporation, Term Loan, 6.273%, (1 mo. USD LIBOR + 4.75%), 5/17/28 |
$
|
198
|
$
182,124 |
| Amentum
Government Services Holdings, LLC: |
|
|
|
| Term
Loan, 5.163%, (SOFR + 4.00%), 2/15/29(3) |
|
350
|
333,812
|
| Term
Loan, 5.416%, (1 mo. USD LIBOR + 3.75%), 1/29/27 |
|
368
|
350,503
|
| American
Residential Services, LLC, Term Loan, 5.75%, (3 mo. USD LIBOR + 3.50%), 10/15/27 |
|
222
|
207,773
|
| APi
Group DE, Inc., Term Loan, 4.166%, (1 mo. USD LIBOR + 2.50%), 10/1/26 |
|
540
|
520,010
|
| Centuri
Group, Inc., Term Loan, 4.075%, (3 mo. USD LIBOR + 2.50%), 8/27/28 |
|
331
|
318,206
|
| Northstar
Group Services, Inc., Term Loan, 7.166%, (1 mo. USD LIBOR + 5.50%), 11/12/26 |
|
98
|
94,510
|
| Pike
Corporation, Term Loan, 4.67%, (1 mo. USD LIBOR + 3.00%), 1/21/28 |
|
168
|
159,942
|
| USIC
Holdings, Inc., Term Loan, 5.166%, (1 mo. USD LIBOR + 3.50%), 5/12/28 |
|
1,099
|
1,006,637
|
| |
|
|
$ 3,173,517
|
| Entertainment
— 3.7% |
| Alchemy
Copyrights, LLC, Term Loan, 4.062%, (1 mo. USD LIBOR + 3.00%), 3/10/28 |
$
|
197
|
$
190,612 |
| Crown
Finance US, Inc.: |
|
|
|
| Term
Loan, 4.00%, (6 mo. USD LIBOR + 2.50%), 2/28/25 |
|
604
|
383,921
|
| Term
Loan, 4.25%, (6 mo. USD LIBOR + 2.75%), 9/30/26 |
|
561
|
346,180
|
| Term
Loan, 10.076%, (6 mo. USD LIBOR + 8.25%), 2/28/25 |
|
134
|
138,930
|
| Term
Loan, 15.25%, (7.00% cash, 8.25% PIK), 5/23/24(6) |
|
178
|
199,293
|
| Delta
2 (LUX) S.a.r.l., Term Loan, 4.166%, (1 mo. USD LIBOR + 2.50%), 2/1/24 |
|
1,175
|
1,147,513
|
| Live
Nation Entertainment, Inc., Term Loan, 3.375%, (1 mo. USD LIBOR + 1.75%), 10/17/26 |
|
2,624
|
2,459,727 |
14
See Notes to Financial Statements.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Portfolio of
Investments — continued
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| Entertainment
(continued) |
| Playtika
Holding Corp., Term Loan, 4.416%, (1 mo. USD LIBOR + 2.75%), 3/13/28 |
$
|
828
|
$
781,711 |
| UFC
Holdings, LLC, Term Loan, 3.50%, (6 mo. USD LIBOR + 2.75%, Floor 0.75%), 4/29/26 |
|
1,984
|
1,855,343
|
| |
|
|
$ 7,503,230
|
| Equity
Real Estate Investment Trusts (REITs) — 0.2% |
| Iron
Mountain, Inc., Term Loan, 3.416%, (1 mo. USD LIBOR + 1.75%), 1/2/26 |
$
|
335
|
$
321,301 |
| |
|
|
$ 321,301
|
| Food
& Staples Retailing — 0.3% |
| US
Foods, Inc., Term Loan, 3.575%, (3 mo. USD LIBOR + 2.00%), 9/13/26 |
$
|
632
|
$
595,462 |
| |
|
|
$ 595,462
|
| Food
Products — 1.3% |
| CHG
PPC Parent, LLC, Term Loan, 4.688%, (1 mo. USD LIBOR + 3.00%), 12/8/28 |
$
|
200
|
$
188,527 |
| Del
Monte Foods, Inc., Term Loan, 5.684%, (SOFR + 4.25%), 5/16/29 |
|
200
|
189,167
|
| Froneri
International, Ltd., Term Loan, 3.916%, (1 mo. USD LIBOR + 2.25%), 1/29/27 |
|
809
|
747,189
|
| H
Food Holdings, LLC: |
|
|
|
| Term
Loan, 5.354%, (1 mo. USD LIBOR + 3.69%), 5/23/25 |
|
650
|
586,643
|
| Term
Loan, 5.666%, (1 mo. USD LIBOR + 4.00%), 5/23/25 |
|
169
|
152,621
|
| Monogram
Food Solutions, LLC, Term Loan, 5.688%, (1 mo. USD LIBOR + 4.00%), 8/28/28 |
|
249
|
235,691
|
| Nomad
Foods Europe Midco Limited, Term Loan, 3.661%, (3 mo. USD LIBOR + 2.25%), 5/15/24 |
|
240
|
232,048
|
| Shearer's
Foods, Inc., Term Loan, 5.166%, (1 mo. USD LIBOR + 3.50%), 9/23/27 |
|
172
|
156,147
|
| Sovos
Brands Intermediate, Inc., Term Loan, 4.25%, (6 mo. USD LIBOR + 3.50%, Floor 0.75%), 6/8/28 |
|
228
|
215,427
|
| |
|
|
$ 2,703,460
|
| Gas
Utilities — 0.5% |
| CQP
Holdco, L.P., Term Loan, 6.00%, (3 mo. USD LIBOR + 3.75%), 6/5/28 |
$
|
990
|
$
939,675 |
| |
|
|
$ 939,675
|
| Health
Care Equipment & Supplies — 0.5% |
| Bayou
Intermediate II, LLC, Term Loan, 5.786%, (3 mo. USD LIBOR + 4.50%), 8/2/28 |
$
|
323
|
$
308,015 |
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| Health
Care Equipment & Supplies (continued) |
| CryoLife,
Inc., Term Loan, 5.75%, (3 mo. USD LIBOR + 3.50%), 6/1/27 |
$
|
167
|
$
159,187 |
| Gloves
Buyer, Inc., Term Loan, 5.666%, (1 mo. USD LIBOR + 4.00%), 12/29/27 |
|
248
|
230,290
|
| Journey
Personal Care Corp., Term Loan, 6.50%, (3 mo. USD LIBOR + 4.25%), 3/1/28 |
|
446
|
347,490
|
| |
|
|
$ 1,044,982
|
| Health
Care Providers & Services — 5.4% |
| AEA
International Holdings (Lux) S.a.r.l., Term Loan, 6.063%, (3 mo. USD LIBOR + 3.75%), 9/7/28 |
$
|
473
|
$
452,538 |
| Cano
Health, LLC, Term Loan, 5.625%, (SOFR + 4.00%), 11/23/27 |
|
191
|
176,379
|
| CCRR
Parent, Inc., Term Loan, 6.01%, (3 mo. USD LIBOR + 3.75%), 3/6/28 |
|
222
|
214,531
|
| CHG
Healthcare Services, Inc., Term Loan, 4.75%, (6 mo. USD LIBOR + 3.25%), 9/29/28 |
|
496
|
467,561
|
| Electron
BidCo, Inc., Term Loan, 4.666%, (1 mo. USD LIBOR + 3.00%), 11/1/28 |
|
374
|
350,995
|
| Ensemble
RCM, LLC, Term Loan, 4.989%, (3 mo. USD LIBOR + 3.75%), 8/3/26 |
|
539
|
523,143
|
| Hanger,
Inc., Term Loan, 5.166%, (1 mo. USD LIBOR + 3.50%), 3/6/25 |
|
379
|
366,952
|
| LSCS
Holdings, Inc., Term Loan, 6.75%, (3 mo. USD LIBOR + 4.50%), 12/16/28 |
|
348
|
331,708
|
| MDVIP,
Inc., Term Loan, 5.345%, (1 mo. USD LIBOR + 3.75%), 10/16/28 |
|
125
|
118,661
|
| Medical
Solutions Holdings, Inc.: |
|
|
|
| Term
Loan, 3.50%, 11/1/28(4) |
|
108
|
101,430
|
| Term
Loan, 6.377%, (6 mo. USD LIBOR + 3.50%), 11/1/28 |
|
566
|
531,176
|
| Midwest
Physician Administrative Services, LLC, Term Loan, 5.50%, (3 mo. USD LIBOR + 3.25%), 3/12/28 |
|
198
|
181,700
|
| National
Mentor Holdings, Inc.: |
|
|
|
| Term
Loan, 5.747%, (USD LIBOR + 3.75%), 3/2/28(3) |
|
878
|
773,006
|
| Term
Loan, 6.01%, (3 mo. USD LIBOR + 3.75%), 3/2/28 |
|
25
|
21,808
|
| Option
Care Health, Inc., Term Loan, 4.416%, (1 mo. USD LIBOR + 2.75%), 10/27/28 |
|
199
|
191,413
|
| Pacific
Dental Services, LLC, Term Loan, 4.759%, (1 mo. USD LIBOR + 3.25%), 5/5/28 |
|
223
|
214,118
|
| Pediatric
Associates Holding Company, LLC: |
|
|
|
| Term
Loan, 4.085%, (USD LIBOR + 3.25%), 12/29/28(3)(4) |
|
33
|
30,882
|
| Term
Loan, 5.076%, (6 mo. USD LIBOR + 3.25%), 12/29/28 |
|
217
|
203,569
|
| Phoenix
Guarantor, Inc.: |
|
|
|
| Term
Loan, 4.916%, (1 mo. USD LIBOR + 3.25%), 3/5/26 |
|
728
|
681,437 |
15
See Notes to Financial Statements.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Portfolio of
Investments — continued
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| Health
Care Providers & Services (continued) |
| Phoenix
Guarantor, Inc.: (continued) |
|
|
|
| Term
Loan, 5.142%, (1 mo. USD LIBOR + 3.50%), 3/5/26 |
$
|
1,533
|
$
1,435,323 |
| Radnet
Management, Inc., Term Loan, 4.629%, (1 mo. USD LIBOR + 3.00%), 4/21/28 |
|
422
|
400,898
|
| Select
Medical Corporation, Term Loan, 4.17%, (1 mo. USD LIBOR + 2.50%), 3/6/25 |
|
2,144
|
2,054,313
|
| Sound
Inpatient Physicians, Term Loan, 4.416%, (1 mo. USD LIBOR + 2.75%), 6/27/25 |
|
192
|
175,380
|
| Surgery
Center Holdings, Inc., Term Loan, 4.95%, (1 mo. USD LIBOR + 3.75%), 8/31/26 |
|
709
|
661,986
|
| WP
CityMD Bidco, LLC, Term Loan, 5.50%, (3 mo. USD LIBOR + 3.25%), 12/22/28 |
|
299
|
282,342
|
| |
|
|
$ 10,943,249
|
| Health
Care Technology — 4.3% |
| Bracket
Intermediate Holding Corp., Term Loan, 5.219%, (3 mo. USD LIBOR + 4.25%), 9/5/25 |
$
|
337
|
$
324,523 |
| Certara,
L.P., Term Loan, 5.166%, (1 mo. USD LIBOR + 3.50%), 8/15/26 |
|
952
|
931,034
|
| Change
Healthcare Holdings, LLC, Term Loan, 4.166%, (1 mo. USD LIBOR + 2.50%), 3/1/24 |
|
1,651
|
1,609,696
|
| eResearchTechnology,
Inc., Term Loan, 6.166%, (1 mo. USD LIBOR + 4.50%), 2/4/27 |
|
123
|
114,220
|
| GHX
Ultimate Parent Corporation, Term Loan, 6.127%, (6 mo. USD LIBOR + 3.25%), 6/28/24 |
|
1,331
|
1,270,749
|
| Imprivata,
Inc., Term Loan, 5.416%, (1 mo. USD LIBOR + 3.75%), 12/1/27 |
|
469
|
451,766
|
| MedAssets
Software Intermediate Holdings, Inc., Term Loan, 5.666%, (1 mo. USD LIBOR + 4.00%), 12/18/28 |
|
499
|
467,578
|
| Navicure,
Inc., Term Loan, 5.666%, (1 mo. USD LIBOR + 4.00%), 10/22/26 |
|
1,773
|
1,680,053
|
| PointClickCare
Technologies, Inc., Term Loan, 5.938%, (6 mo. USD LIBOR + 3.00%), 12/29/27 |
|
247
|
233,297
|
| Project
Ruby Ultimate Parent Corp., Term Loan, 4.916%, (1 mo. USD LIBOR + 3.25%), 3/3/28 |
|
444
|
417,157
|
| Symplr
Software, Inc., Term Loan, 6.654%, (SOFR + 4.50%), 12/22/27 |
|
396
|
375,782
|
| Verscend
Holding Corp., Term Loan, 5.666%, (1 mo. USD LIBOR + 4.00%), 8/27/25 |
|
851
|
816,562
|
| |
|
|
$ 8,692,417
|
| Hotels,
Restaurants & Leisure — 4.3% |
| 1011778
B.C. Unlimited Liability Company, Term Loan, 3.416%, (1 mo. USD LIBOR + 1.75%), 11/19/26 |
$
|
1,779
|
$
1,702,862 |
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| Hotels,
Restaurants & Leisure (continued) |
| Carnival
Corporation: |
|
|
|
| Term
Loan, 5.877%, (6 mo. USD LIBOR + 3.00%), 6/30/25 |
$
|
539
|
$
503,156 |
| Term
Loan, 6.127%, (6 mo. USD LIBOR + 3.25%), 10/18/28 |
|
1,244
|
1,119,375
|
| Fertitta
Entertainment, LLC, Term Loan, 5.525%, (SOFR + 4.00%), 1/27/29 |
|
1,434
|
1,323,503
|
| Hilton
Grand Vacations Borrower, LLC, Term Loan, 4.666%, (1 mo. USD LIBOR + 3.00%), 8/2/28 |
|
397
|
372,287
|
| IRB
Holding Corp.: |
|
|
|
| Term
Loan, 4.238%, (SOFR + 3.15%), 12/15/27 |
|
640
|
610,905
|
| Term
Loan, 4.416%, (1 mo. USD LIBOR + 2.75%), 2/5/25 |
|
794
|
754,996
|
| Playa
Resorts Holding B.V., Term Loan, 4.42%, (1 mo. USD LIBOR + 2.75%), 4/29/24 |
|
429
|
407,134
|
| SeaWorld
Parks & Entertainment, Inc., Term Loan, 4.688%, (1 mo. USD LIBOR + 3.00%), 8/25/28 |
|
397
|
374,272
|
| SMG
US Midco 2, Inc., Term Loan, 4.166%, (1 mo. USD LIBOR + 2.50%), 1/23/25 |
|
96
|
90,046
|
| Stars
Group Holdings B.V. (The), Term Loan, 4.50%, (3 mo. USD LIBOR + 2.25%), 7/21/26 |
|
992
|
945,770
|
| Twin
River Worldwide Holdings, Inc., Term Loan, 4.37%, (1 mo. USD LIBOR + 3.25%), 10/2/28 |
|
522
|
486,648
|
| |
|
|
$ 8,690,954
|
| Household
Durables — 0.0%(7) |
| CFS
Brands, LLC, Term Loan, 4.666%, (1 mo. USD LIBOR + 3.00%), 3/20/25 |
$
|
96
|
$
83,774 |
| |
|
|
$ 83,774
|
| Household
Products — 0.4% |
| Energizer
Holdings, Inc., Term Loan, 3.875%, (1 mo. USD LIBOR + 2.25%), 12/22/27 |
$
|
428
|
$
407,828 |
| Kronos
Acquisition Holdings, Inc., Term Loan, 5.416%, (1 mo. USD LIBOR + 3.75%), 12/22/26 |
|
493
|
449,817
|
| |
|
|
$ 857,645
|
| Independent
Power and Renewable Electricity Producers — 0.6% |
| Calpine
Corporation, Term Loan, 4.17%, (1 mo. USD LIBOR + 2.50%), 12/16/27 |
$
|
1,256
|
$
1,197,223 |
| |
|
|
$ 1,197,223
|
| Insurance
— 5.2% |
| Alliant
Holdings Intermediate, LLC: |
|
|
|
| Term
Loan, 4.916%, (1 mo. USD LIBOR + 3.25%), 5/9/25 |
$
|
859
|
$
811,404 |
| Term
Loan, 4.916%, (1 mo. USD LIBOR + 3.25%), 5/9/25 |
|
170
|
160,661 |
16
See Notes to Financial Statements.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Portfolio of
Investments — continued
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| Insurance
(continued) |
| AmWINS
Group, Inc., Term Loan, 3.916%, (1 mo. USD LIBOR + 2.25%), 2/19/28 |
$
|
1,601
|
$
1,513,933 |
| AssuredPartners,
Inc., Term Loan, 5.166%, (1 mo. USD LIBOR + 3.50%), 2/12/27 |
|
1,293
|
1,212,293
|
| Hub
International Limited: |
|
|
|
| Term
Loan, 4.214%, (3 mo. USD LIBOR + 3.00%), 4/25/25 |
|
1,848
|
1,750,466
|
| Term
Loan, 4.348%, (3 mo. USD LIBOR + 3.25%), 4/25/25 |
|
683
|
648,285
|
| NFP
Corp., Term Loan, 4.916%, (1 mo. USD LIBOR + 3.25%), 2/15/27 |
|
1,356
|
1,259,484
|
| Ryan
Specialty Group, LLC, Term Loan, 4.625%, (SOFR + 3.00%), 9/1/27 |
|
712
|
687,382
|
| USI,
Inc.: |
|
|
|
| Term
Loan, 5.25%, (3 mo. USD LIBOR + 3.00%), 5/16/24 |
|
1,238
|
1,187,946
|
| Term
Loan, 5.50%, (3 mo. USD LIBOR + 3.25%), 12/2/26 |
|
1,526
|
1,448,390
|
| |
|
|
$ 10,680,244
|
| Interactive
Media & Services — 1.5% |
| Buzz
Merger Sub, Ltd., Term Loan, 4.416%, (1 mo. USD LIBOR + 2.75%), 1/29/27 |
$
|
220
|
$
208,391 |
| Camelot
U.S. Acquisition, LLC: |
|
|
|
| Term
Loan, 4.666%, (1 mo. USD LIBOR + 3.00%), 10/30/26 |
|
707
|
670,648
|
| Term
Loan, 4.666%, (1 mo. USD LIBOR + 3.00%), 10/30/26 |
|
443
|
419,841
|
| Foundational
Education Group, Inc., Term Loan, 6.066%, (SOFR + 3.75%), 8/31/28 |
|
249
|
238,800
|
| Getty
Images, Inc., Term Loan, 6.125%, (3 mo. USD LIBOR + 4.50%), 2/19/26 |
|
1,287
|
1,249,363
|
| Match
Group, Inc., Term Loan, 3.194%, (3 mo. USD LIBOR + 1.75%), 2/13/27 |
|
275
|
258,844
|
| |
|
|
$ 3,045,887
|
| Internet
& Direct Marketing Retail — 0.4% |
| Adevinta
ASA, Term Loan, 5.25%, (3 mo. USD LIBOR + 3.00%), 6/26/28 |
$
|
124
|
$
118,181 |
| CNT
Holdings I Corp., Term Loan, 4.69%, (1 mo. USD LIBOR + 3.50%), 11/8/27 |
|
296
|
281,716
|
| Hoya
Midco, LLC, Term Loan, 3.75%, (SOFR + 3.25%, Floor 0.50%), 2/3/29 |
|
371
|
359,584
|
| |
|
|
$ 759,481
|
| IT
Services — 5.6% |
| Asurion,
LLC: |
|
|
|
| Term
Loan, 4.791%, (1 mo. USD LIBOR + 3.13%), 11/3/23 |
$
|
945
|
$
908,786 |
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| IT
Services (continued) |
| Asurion,
LLC: (continued) |
|
|
|
| Term
Loan, 4.916%, (1 mo. USD LIBOR + 3.25%), 12/23/26 |
$
|
1,064
|
$
967,393 |
| Term
Loan, 4.916%, (1 mo. USD LIBOR + 3.25%), 7/31/27 |
|
741
|
672,117
|
| Term
Loan - Second Lien, 6.916%, (1 mo. USD LIBOR + 5.25%), 1/31/28 |
|
920
|
799,020
|
| Cyxtera
DC Holdings, Inc., Term Loan, 4.64%, (1 mo. USD LIBOR + 3.00%), 5/1/24 |
|
713
|
667,969
|
| Endure
Digital, Inc., Term Loan, 4.62%, (1 mo. USD LIBOR + 3.50%), 2/10/28 |
|
1,905
|
1,723,578
|
| EP
Purchaser, LLC, Term Loan, 5.75%, (3 mo. USD LIBOR + 3.50%), 11/6/28 |
|
200
|
190,897
|
| Gainwell
Acquisition Corp., Term Loan, 6.25%, (3 mo. USD LIBOR + 4.00%), 10/1/27 |
|
2,318
|
2,204,665
|
| Go
Daddy Operating Company, LLC, Term Loan, 3.666%, (1 mo. USD LIBOR + 2.00%), 8/10/27 |
|
441
|
423,832
|
| Indy
US Bidco, LLC, Term Loan, 5.416%, (1 mo. USD LIBOR + 3.75%), 3/5/28 |
|
272
|
252,789
|
| Informatica,
LLC, Term Loan, 4.438%, (1 mo. USD LIBOR + 2.75%), 10/27/28 |
|
1,247
|
1,186,869
|
| NAB
Holdings, LLC, Term Loan, 5.204%, (SOFR + 3.00%), 11/23/28 |
|
498
|
465,992
|
| Rackspace
Technology Global, Inc., Term Loan, 4.16%, (3 mo. USD LIBOR + 2.75%), 2/15/28 |
|
568
|
520,400
|
| Sedgwick
Claims Management Services, Inc., Term Loan, 4.916%, (1 mo. USD LIBOR + 3.25%), 12/31/25 |
|
458
|
430,873
|
| |
|
|
$ 11,415,180
|
| Leisure
Products — 0.1% |
| Fender
Musical Instruments Corporation, Term Loan, 5.226%, (SOFR + 4.00%), 12/1/28 |
$
|
149
|
$
141,085 |
| |
|
|
$ 141,085
|
| Life
Sciences Tools & Services — 0.9% |
| Cambrex
Corporation, Term Loan, 5.125%, (SOFR + 3.50%), 12/4/26 |
$
|
121
|
$
114,483 |
| Curia
Global, Inc., Term Loan, 4.989%, (3 mo. USD LIBOR + 3.75%), 8/30/26 |
|
813
|
767,421
|
| Loire
Finco Luxembourg S.a.r.l., Term Loan, 4.916%, (1 mo. USD LIBOR + 3.25%), 4/21/27 |
|
123
|
115,783
|
| Packaging
Coordinators Midco, Inc., Term Loan, 6.00%, (3 mo. USD LIBOR + 3.75%), 11/30/27 |
|
593
|
561,388
|
| Sotera
Health Holdings, LLC, Term Loan, 4.416%, (1 mo. USD LIBOR + 2.75%), 12/11/26 |
|
225
|
214,313
|
| |
|
|
$ 1,773,388
|
17
See Notes to Financial Statements.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Portfolio of
Investments — continued
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| Machinery
— 5.2% |
| Alliance
Laundry Systems, LLC, Term Loan, 4.524%, (USD LIBOR + 3.50%), 10/8/27(3) |
$
|
438
|
$
417,192 |
| American
Trailer World Corp., Term Loan, 5.375%, (SOFR + 3.75%), 3/3/28 |
|
397
|
355,530
|
| Conair
Holdings, LLC, Term Loan, 6.00%, (3 mo. USD LIBOR + 3.75%), 5/17/28 |
|
670
|
563,864
|
| CPM
Holdings, Inc., Term Loan, 4.562%, (1 mo. USD LIBOR + 3.50%), 11/17/25 |
|
121
|
115,498
|
| Delachaux
Group S.A., Term Loan, 5.738%, (3 mo. USD LIBOR + 4.50%), 4/16/26 |
|
164
|
149,717
|
| Engineered
Machinery Holdings, Inc., Term Loan, 6.00%, (3 mo. USD LIBOR + 3.75%), 5/19/28 |
|
1,088
|
1,023,270
|
| Filtration
Group Corporation: |
|
|
|
| Term
Loan, 4.666%, (1 mo. USD LIBOR + 3.00%), 3/29/25 |
|
1,082
|
1,027,747
|
| Term
Loan, 5.166%, (1 mo. USD LIBOR + 3.50%), 10/21/28 |
|
347
|
325,664
|
| Gates
Global, LLC, Term Loan, 4.166%, (1 mo. USD LIBOR + 2.50%), 3/31/27 |
|
2,300
|
2,176,303
|
| Icebox
Holdco III, Inc.: |
|
|
|
| Term
Loan, 5.625%, 12/22/28(4) |
|
69
|
64,457
|
| Term
Loan, 6.00%, (3 mo. USD LIBOR + 3.75%), 12/22/28 |
|
331
|
310,764
|
| Madison
IAQ, LLC, Term Loan, 4.524%, (6 mo. USD LIBOR + 3.25%), 6/21/28 |
|
1,485
|
1,357,661
|
| Penn
Engineering & Manufacturing Corp., Term Loan, 4.75%, (3 mo. USD LIBOR + 2.50%), 6/27/24 |
|
1,320
|
1,270,346
|
| Titan
Acquisition Limited, Term Loan, 5.877%, (6 mo. USD LIBOR + 3.00%), 3/28/25 |
|
1,125
|
1,035,055
|
| Vertical
US Newco, Inc., Term Loan, 4.019%, (6 mo. USD LIBOR + 3.50%), 7/30/27 |
|
516
|
484,928
|
| |
|
|
$ 10,677,996
|
| Media
— 3.3% |
| Charter
Communications Operating, LLC, Term Loan, 3.42%, (1 mo. USD LIBOR + 1.75%), 2/1/27 |
$
|
1,266
|
$
1,211,218 |
| CMG
Media Corporation, Term Loan, 5.166%, (1 mo. USD LIBOR + 3.50%), 12/17/26 |
|
683
|
628,509
|
| CSC
Holdings, LLC: |
|
|
|
| Term
Loan, 3.574%, (1 mo. USD LIBOR + 2.25%), 1/15/26 |
|
387
|
360,232
|
| Term
Loan, 3.824%, (1 mo. USD LIBOR + 2.50%), 4/15/27 |
|
459
|
427,702
|
| Cumulus
Media New Holdings, Inc., Term Loan, 4.75%, (6 mo. USD LIBOR + 3.75%, Floor 1.00%), 3/31/26 |
|
130
|
124,658
|
| Diamond
Sports Group, LLC: |
|
|
|
| Term
Loan, 9.181%, (SOFR + 8.00%), 5/26/26 |
|
275
|
271,232
|
| Term
Loan - Second Lien, 4.431%, (SOFR + 3.25%), 8/24/26 |
|
1,629
|
389,462 |
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| Media
(continued) |
| Entravision
Communications Corporation, Term Loan, 4.416%, (1 mo. USD LIBOR + 2.75%), 11/29/24 |
$
|
299
|
$
291,472 |
| Gray
Television, Inc.: |
|
|
|
| Term
Loan, 3.562%, (1 mo. USD LIBOR + 2.50%), 1/2/26 |
|
234
|
224,306
|
| Term
Loan, 4.062%, (1 mo. USD LIBOR + 3.00%), 12/1/28 |
|
448
|
429,280
|
| iHeartCommunications,
Inc.: |
|
|
|
| Term
Loan, 4.666%, (1 mo. USD LIBOR + 3.00%), 5/1/26 |
|
776
|
722,846
|
| Term
Loan, 4.916%, (1 mo. USD LIBOR + 3.25%), 5/1/26 |
|
156
|
145,400
|
| Magnite,
Inc., Term Loan, 6.022%, (USD LIBOR + 5.00%), 4/28/28(3) |
|
272
|
262,041
|
| MJH
Healthcare Holdings, LLC, Term Loan, 5.109%, (SOFR + 3.60%), 1/28/29 |
|
125
|
117,812
|
| Nexstar
Broadcasting, Inc., Term Loan, 4.166%, (1 mo. USD LIBOR + 2.50%), 9/18/26 |
|
112
|
110,647
|
| Recorded
Books, Inc., Term Loan, 6.003%, (3 mo. USD LIBOR + 4.00%), 8/29/25 |
|
94
|
89,564
|
| Sinclair
Television Group, Inc., Term Loan, 4.17%, (1 mo. USD LIBOR + 2.50%), 9/30/26 |
|
243
|
223,523
|
| Univision
Communications, Inc., Term Loan, 4.416%, (1 mo. USD LIBOR + 2.75%), 3/15/24 |
|
672
|
660,996
|
| |
|
|
$ 6,690,900
|
| Metals/Mining
— 0.9% |
| Dynacast
International, LLC, Term Loan, 10.506%, (3 mo. USD LIBOR + 9.00%), 10/22/25 |
$
|
245
|
$
228,992 |
| WireCo
WorldGroup, Inc., Term Loan, 5.688%, (3 mo. USD LIBOR + 4.25%), 11/13/28 |
|
222
|
209,569
|
| Zekelman
Industries, Inc., Term Loan, 4.185%, (3 mo. USD LIBOR + 2.00%), 1/24/27 |
|
1,496
|
1,400,675
|
| |
|
|
$ 1,839,236
|
| Oil,
Gas & Consumable Fuels — 1.8% |
| Buckeye
Partners, L.P., Term Loan, 3.916%, (1 mo. USD LIBOR + 2.25%), 11/1/26 |
$
|
1,026
|
$
985,647 |
| Centurion
Pipeline Company, LLC: |
|
|
|
| Term
Loan, 4.916%, (1 mo. USD LIBOR + 3.25%), 9/29/25 |
|
97
|
93,787
|
| Term
Loan, 5.666%, (1 mo. USD LIBOR + 4.00%), 9/28/25 |
|
99
|
95,172
|
| CITGO
Holding, Inc., Term Loan, 8.666%, (1 mo. USD LIBOR + 7.00%), 8/1/23 |
|
97
|
95,688
|
| CITGO
Petroleum Corporation, Term Loan, 7.916%, (1 mo. USD LIBOR + 6.25%), 3/28/24 |
|
860
|
850,623
|
| Freeport
LNG Investments, LLP, Term Loan, 4.563%, (3 mo. USD LIBOR + 3.50%), 12/21/28 |
|
297
|
264,522 |
18
See Notes to Financial Statements.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Portfolio of
Investments — continued
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| Oil,
Gas & Consumable Fuels (continued) |
| Oryx
Midstream Services Permian Basin, LLC, Term Loan, 4.705%, (3 mo. USD LIBOR + 3.25%), 10/5/28 |
$
|
373
|
$
355,168 |
| Oxbow
Carbon, LLC, Term Loan, 6.50%, (3 mo. USD LIBOR + 4.25%), 10/17/25 |
|
114
|
111,496
|
| QuarterNorth
Energy Holding, Inc., Term Loan - Second Lien, 9.666%, (1 mo. USD LIBOR + 8.00%), 8/27/26 |
|
423
|
424,807
|
| UGI
Energy Services, LLC, Term Loan, 5.416%, (1 mo. USD LIBOR + 3.75%), 8/13/26 |
|
388
|
379,917
|
| |
|
|
$ 3,656,827
|
| Paper
& Forest Products — 0.3% |
| Neenah,
Inc., Term Loan, 6.75%, (USD Prime + 2.00%), 4/6/28 |
$
|
542
|
$
539,007 |
| |
|
|
$ 539,007
|
| Personal
Products — 0.4% |
| HLF
Financing S.a.r.l., Term Loan, 4.166%, (1 mo. USD LIBOR + 2.50%), 8/18/25 |
$
|
375
|
$
355,841 |
| Sunshine
Luxembourg VII S.a.r.l., Term Loan, 6.00%, (3 mo. USD LIBOR + 3.75%), 10/1/26 |
|
444
|
412,713
|
| |
|
|
$ 768,554
|
| Pharmaceuticals
— 1.8% |
| Amneal
Pharmaceuticals, LLC, Term Loan, 5.497%, (USD LIBOR + 3.50%), 5/4/25(3) |
$
|
1,336
|
$
1,211,963 |
| Bausch
Health Companies, Inc., Term Loan, 6.549%, (SOFR + 5.25%), 2/1/27 |
|
253
|
218,008
|
| Elanco
Animal Health Incorporated, Term Loan, 2.812%, (1 mo. USD LIBOR + 1.75%), 8/1/27 |
|
730
|
690,828
|
| Horizon
Therapeutics USA, Inc., Term Loan, 3.375%, (1 mo. USD LIBOR + 1.75%), 3/15/28 |
|
815
|
788,210
|
| Jazz
Financing Lux S.a.r.l., Term Loan, 5.166%, (1 mo. USD LIBOR + 3.50%), 5/5/28 |
|
693
|
662,434
|
| |
|
|
$ 3,571,443
|
| Professional
Services — 1.5% |
| APFS
Staffing Holdings, Inc., Term Loan, 5.525%, (SOFR + 4.00%), 12/29/28 |
$
|
125
|
$
119,856 |
| CoreLogic,
Inc., Term Loan, 5.188%, (1 mo. USD LIBOR + 3.50%), 6/2/28 |
|
1,184
|
983,504
|
| Deerfield
Dakota Holding, LLC, Term Loan, 5.275%, (SOFR + 3.75%), 4/9/27 |
|
784
|
740,488
|
| First
Advantage Holdings, LLC, Term Loan, 4.416%, (1 mo. USD LIBOR + 2.75%), 1/31/27 |
|
257
|
247,301 |
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| Professional
Services (continued) |
| Trans
Union, LLC, Term Loan, 3.916%, (1 mo. USD LIBOR + 2.25%), 12/1/28 |
$
|
823
|
$
787,118 |
| Vaco
Holdings, LLC, Term Loan, 7.204%, (SOFR + 5.00%), 1/21/29 |
|
124
|
119,711
|
| |
|
|
$ 2,997,978
|
| Real
Estate Management & Development — 1.0% |
| Cushman
& Wakefield U.S. Borrower, LLC, Term Loan, 4.416%, (1 mo. USD LIBOR + 2.75%), 8/21/25 |
$
|
2,124
|
$
2,002,173 |
| |
|
|
$ 2,002,173
|
| Road
& Rail — 2.3% |
| Grab
Holdings, Inc., Term Loan, 5.50%, (6 mo. USD LIBOR + 4.50%, Floor 1.00%), 1/29/26 |
$
|
884
|
$
812,420 |
| Kenan
Advantage Group, Inc., Term Loan, 5.383%, (1 mo. USD LIBOR + 3.75%), 3/24/26 |
|
936
|
874,926
|
| Uber
Technologies, Inc.: |
|
|
|
| Term
Loan, 5.075%, (3 mo. USD LIBOR + 3.50%), 4/4/25 |
|
1,311
|
1,261,135
|
| Term
Loan, 5.075%, (3 mo. USD LIBOR + 3.50%), 2/25/27 |
|
1,899
|
1,825,649
|
| |
|
|
$ 4,774,130
|
| Semiconductors
& Semiconductor Equipment — 0.6% |
| Altar
Bidco, Inc., Term Loan, 5.506%, (SOFR + 3.35%), 2/1/29(3) |
$
|
600
|
$
554,813 |
| Cohu,
Inc., Term Loan, 3.519%, (6 mo. USD LIBOR + 3.00%), 10/1/25 |
|
90
|
88,298
|
| MACOM
Technology Solutions Holdings, Inc., Term Loan, 3.916%, (1 mo. USD LIBOR + 2.25%), 5/17/24 |
|
103
|
101,152
|
| Ultra
Clean Holdings, Inc., Term Loan, 5.416%, (1 mo. USD LIBOR + 3.75%), 8/27/25 |
|
456
|
443,562
|
| |
|
|
$ 1,187,825
|
| Software
— 25.1% |
| Applied
Systems, Inc.: |
|
|
|
| Term
Loan, 5.25%, (3 mo. USD LIBOR + 3.00%), 9/19/24 |
$
|
3,374
|
$
3,249,202 |
| Term
Loan - Second Lien, 7.75%, (3 mo. USD LIBOR + 5.50%), 9/19/25 |
|
171
|
165,473
|
| AppLovin
Corporation: |
|
|
|
| Term
Loan, 5.25%, (3 mo. USD LIBOR + 3.00%), 10/25/28 |
|
698
|
665,956
|
| Term
Loan, 5.50%, (3 mo. USD LIBOR + 3.25%), 8/15/25 |
|
1,819
|
1,745,843
|
| Aptean,
Inc., Term Loan, 5.916%, (1 mo. USD LIBOR + 4.25%), 4/23/26 |
|
316
|
302,391 |
19
See Notes to Financial Statements.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Portfolio of
Investments — continued
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| Software
(continued) |
| AQA
Acquisition Holding, Inc., Term Loan, 5.916%, (1 mo. USD LIBOR + 4.25%), 3/3/28 |
$
|
347
|
$ 335,816
|
| Astra
Acquisition Corp., Term Loan, 6.916%, (1 mo. USD LIBOR + 5.25%), 10/25/28 |
|
766
|
667,503
|
| Banff
Merger Sub, Inc.: |
|
|
|
| Term
Loan, 5.416%, (1 mo. USD LIBOR + 3.75%), 10/2/25 |
|
3,110
|
2,898,741
|
| Term
Loan - Second Lien, 7.166%, (1 mo. USD LIBOR + 5.50%), 2/27/26 |
|
400
|
372,500
|
| Barracuda
Networks, Inc., Term Loan, 5.982%, (3 mo. USD LIBOR + 3.75%), 2/12/25 |
|
1,089
|
1,081,320
|
| Ceridian
HCM Holding, Inc., Term Loan, 4.166%, (1 mo. USD LIBOR + 2.50%), 4/30/25 |
|
553
|
525,766
|
| Cloudera,
Inc., Term Loan, 5.416%, (1 mo. USD LIBOR + 3.75%), 10/8/28 |
|
1,222
|
1,128,255
|
| Cornerstone
OnDemand, Inc., Term Loan, 5.416%, (1 mo. USD LIBOR + 3.75%), 10/16/28 |
|
623
|
560,054
|
| Delta
TopCo, Inc., Term Loan, 5.836%, (3 mo. USD LIBOR + 3.75%), 12/1/27 |
|
569
|
518,373
|
| e2open,
LLC, Term Loan, 4.835%, (3 mo. USD LIBOR + 3.50%), 2/4/28 |
|
1,832
|
1,731,545
|
| ECI
Macola Max Holding, LLC, Term Loan, 6.00%, (3 mo. USD LIBOR + 3.75%), 11/9/27 |
|
1,530
|
1,449,404
|
| Epicor
Software Corporation, Term Loan, 4.916%, (1 mo. USD LIBOR + 3.25%), 7/30/27 |
|
3,477
|
3,279,815
|
| Finastra
USA, Inc., Term Loan, 4.739%, (3 mo. USD LIBOR + 3.50%), 6/13/24 |
|
2,584
|
2,332,669
|
| Fiserv
Investment Solutions, Inc., Term Loan, 5.455%, (3 mo. USD LIBOR + 4.00%), 2/18/27 |
|
220
|
209,751
|
| GoTo
Group, Inc., Term Loan, 6.345%, (1 mo. USD LIBOR + 4.75%), 8/31/27 |
|
763
|
599,249
|
| Greeneden
U.S. Holdings II, LLC, Term Loan, 5.666%, (1 mo. USD LIBOR + 4.00%), 12/1/27 |
|
346
|
331,282
|
| Hyland
Software, Inc., Term Loan, 5.166%, (1 mo. USD LIBOR + 3.50%), 7/1/24 |
|
3,614
|
3,501,361
|
| Imperva,
Inc., Term Loan, 5.399%, (3 mo. USD LIBOR + 4.00%), 1/12/26 |
|
246
|
221,013
|
| Ivanti
Software, Inc.: |
|
|
|
| Term
Loan, 5.611%, (3 mo. USD LIBOR + 4.00%), 12/1/27 |
|
272
|
232,639
|
| Term
Loan, 5.848%, (3 mo. USD LIBOR + 4.25%), 12/1/27 |
|
1,042
|
897,107
|
| MA
FinanceCo., LLC, Term Loan, 5.915%, (3 mo. USD LIBOR + 4.25%), 6/5/25 |
|
642
|
589,130
|
| Magenta
Buyer, LLC, Term Loan, 5.98%, (3 mo. USD LIBOR + 4.75%), 7/27/28 |
|
1,642
|
1,483,047
|
| Marcel
LUX IV S.a.r.l.: |
|
|
|
| Term
Loan, 4.69%, (SOFR + 3.25%), 3/15/26 |
|
583
|
561,944
|
| Term
Loan, 5.565%, (SOFR + 4.00%), 12/31/27 |
|
39
|
37,711 |
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| Software
(continued) |
| Mavenir
Systems, Inc., Term Loan, 6.205%, (3 mo. USD LIBOR + 4.75%), 8/18/28 |
$
|
175
|
$
163,216 |
| McAfee,
LLC, Term Loan, 5.145%, (SOFR + 4.00%), 3/1/29 |
|
1,300
|
1,182,675
|
| Mediaocean,
LLC, Term Loan, 5.166%, (1 mo. USD LIBOR + 3.50%), 12/15/28 |
|
299
|
284,786
|
| MH
Sub I, LLC, Term Loan, 5.416%, (1 mo. USD LIBOR + 3.75%), 9/13/24 |
|
174
|
163,902
|
| Panther
Commercial Holdings, L.P., Term Loan, 5.739%, (3 mo. USD LIBOR + 4.50%), 1/7/28 |
|
396
|
372,920
|
| Polaris
Newco, LLC, Term Loan, 5.666%, (1 mo. USD LIBOR + 4.00%), 6/2/28 |
|
1,291
|
1,195,871
|
| Proofpoint,
Inc., Term Loan, 4.825%, (3 mo. USD LIBOR + 3.25%), 8/31/28 |
|
1,095
|
1,021,135
|
| RealPage,
Inc., Term Loan, 4.666%, (1 mo. USD LIBOR + 3.00%), 4/24/28 |
|
2,729
|
2,526,037
|
| Seattle
Spinco, Inc., Term Loan, 4.416%, (1 mo. USD LIBOR + 2.75%), 6/21/24 |
|
923
|
880,090
|
| SolarWinds
Holdings, Inc., Term Loan, 4.416%, (1 mo. USD LIBOR + 2.75%), 2/5/24 |
|
1,399
|
1,341,414
|
| Sophia,
L.P., Term Loan, 5.50%, (3 mo. USD LIBOR + 3.25%), 10/7/27 |
|
2,147
|
2,010,536
|
| Sovos
Compliance, LLC: |
|
|
|
| Term
Loan, 6.152%, (1 mo. USD LIBOR + 4.50%), 8/11/28 |
|
48
|
45,247
|
| Term
Loan, 6.166%, (1 mo. USD LIBOR + 4.50%), 8/11/28 |
|
276
|
260,703
|
| SS&C
European Holdings S.a.r.l., Term Loan, 3.416%, (1 mo. USD LIBOR + 1.75%), 4/16/25 |
|
242
|
231,297
|
| SS&C
Technologies, Inc., Term Loan, 3.416%, (1 mo. USD LIBOR + 1.75%), 4/16/25 |
|
298
|
284,923
|
| SurveyMonkey,
Inc., Term Loan, 5.42%, (1 mo. USD LIBOR + 3.75%), 10/10/25 |
|
1,309
|
1,270,022
|
| Tibco
Software, Inc., Term Loan, 5.42%, (1 mo. USD LIBOR + 3.75%), 6/30/26 |
|
2,607
|
2,565,189
|
| Turing
Midco, LLC, Term Loan, 4.416%, (1 mo. USD LIBOR + 2.75%), 3/23/28 |
|
124
|
119,178
|
| Ultimate
Software Group, Inc. (The): |
|
|
|
| Term
Loan, 4.212%, (3 mo. USD LIBOR + 3.25%), 5/4/26 |
|
1,749
|
1,648,249
|
| Term
Loan, 5.416%, (1 mo. USD LIBOR + 3.75%), 5/4/26 |
|
632
|
597,584
|
| Veritas
US, Inc., Term Loan, 7.25%, (3 mo. USD LIBOR + 5.00%), 9/1/25 |
|
1,028
|
847,663
|
| VS
Buyer, LLC, Term Loan, 4.666%, (1 mo. USD LIBOR + 3.00%), 2/28/27 |
|
440
|
417,148
|
| |
|
|
$ 51,104,645
|
20
See Notes to Financial Statements.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Portfolio of
Investments — continued
| Borrower/Description
|
Principal
Amount
(000's omitted) |
Value
|
| Specialty
Retail — 2.8% |
| Belron
Finance US, LLC, Term Loan, 3.875%, (3 mo. USD LIBOR + 2.50%), 4/13/28 |
$
|
346
|
$
332,664 |
| Great
Outdoors Group, LLC, Term Loan, 5.416%, (1 mo. USD LIBOR + 3.75%), 3/6/28 |
|
1,034
|
948,547
|
| Harbor
Freight Tools USA, Inc., Term Loan, 4.416%, (1 mo. USD LIBOR + 2.75%), 10/19/27 |
|
1,578
|
1,403,357
|
| Les
Schwab Tire Centers, Term Loan, 4.00%, (3 mo. USD LIBOR + 3.25%, Floor 0.75%), 11/2/27 |
|
2,221
|
2,089,316
|
| Mattress
Firm, Inc., Term Loan, 5.64%, (6 mo. USD LIBOR + 4.25%), 9/25/28 |
|
571
|
495,071
|
| PetSmart,
Inc., Term Loan, 4.50%, (3 mo. USD LIBOR + 3.75%, Floor 0.75%), 2/11/28 |
|
546
|
514,658
|
| |
|
|
$ 5,783,613
|
| Technology
Hardware, Storage & Peripherals — 0.2% |
| NCR
Corporation, Term Loan, 3.74%, (3 mo. USD LIBOR + 2.50%), 8/28/26 |
$
|
365
|
$
354,962 |
| |
|
|
$ 354,962
|
| Trading
Companies & Distributors — 2.2% |
| Avolon
TLB Borrower 1 (US), LLC, Term Loan, 3.845%, (1 mo. USD LIBOR + 2.25%), 12/1/27 |
$
|
739
|
$
703,890 |
| DXP
Enterprises, Inc., Term Loan, 6.416%, (1 mo. USD LIBOR + 4.75%), 12/16/27 |
|
246
|
239,170
|
| Electro
Rent Corporation, Term Loan, 6.098%, (3 mo. USD LIBOR + 5.00%), 1/31/24 |
|
858
|
836,985
|
| Hillman
Group, Inc. (The): |
|
|
|
| Term
Loan, 2.88%, (1 mo. USD LIBOR + 2.75%), 7/14/28(4) |
|
30
|
27,710
|
| Term
Loan, 4.392%, (1 mo. USD LIBOR + 2.75%), 7/14/28 |
|
122
|
114,891
|
| Park
River Holdings, Inc., Term Loan, 4.217%, (3 mo. USD LIBOR + 3.25%), 12/28/27 |
|
247
|
204,290
|
| Spin
Holdco, Inc., Term Loan, 5.611%, (3 mo. USD LIBOR + 4.00%), 3/4/28 |
|
1,654
|
1,528,630
|
| SRS
Distribution, Inc.: |
|
|
|
| Term
Loan, 4.00%, (SOFR + 3.50%, Floor 0.50%), 6/2/28 |
|
175
|
161,252
|
| Term
Loan, 4.019%, (6 mo. USD LIBOR + 3.50%), 6/2/28 |
|
422
|
388,068
|
| TricorBraun
Holdings, Inc., Term Loan, 4.916%, (1 mo. USD LIBOR + 3.25%), 3/3/28 |
|
297
|
277,477
|
| |
|
|
$ 4,482,363
|
Total
Senior Floating-Rate Loans
(identified cost $259,331,865) |
|
|
$242,887,348
|
| Short-Term
Investments — 2.9% |
| Security
|
Shares
|
Value
|
| Morgan
Stanley Institutional Liquidity Funds - Government Portfolio, Institutional Class, 1.38%(8) |
|
5,808,842
|
$
5,808,842 |
Total
Short-Term Investments
(identified cost $5,808,842) |
|
|
$ 5,808,842
|
Total
Investments — 125.2%
(identified cost $271,322,254) |
|
|
$254,855,323
|
| Less
Unfunded Loan Commitments — (0.1)% |
|
|
$
(236,366) |
Net
Investments — 125.1%
(identified cost $271,085,888) |
|
|
$254,618,957
|
| Notes
Payable — (26.5)% |
|
|
$
(54,000,000) |
| Other
Assets, Less Liabilities — 1.4% |
|
|
$ 2,980,571
|
| Net
Assets Applicable to Common Shares — 100.0% |
|
|
$203,599,528
|
| The
percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares. |
|
(1) |
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 June 30, 2022,
the aggregate value of these securities is $499,660 or 0.2% of the Trust's net assets applicable to common shares. |
|
(2) |
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 London Interbank Offered Rate (“LIBOR”) or the Secured Overnight
Financing Rate (“SOFR”) 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. |
|
(3) |
The stated
interest rate represents the weighted average interest rate at June 30, 2022 of contracts within the senior loan facility. Interest rates on contracts are primarily redetermined either weekly, monthly or quarterly by reference to the indicated base
lending rate and spread and the reset period. |
|
(4) |
Unfunded
or partially unfunded loan commitments. The stated interest rate reflects the weighted average of the reference rate and spread for the funded portion, if any, and the commitment fees on the portion of the loan that is unfunded. At June 30,
2022, the total value of unfunded loan commitments is $222,060. See Note 1F for description. |
21
See Notes to Financial Statements.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Portfolio of
Investments — continued
|
(5) |
This
Senior Loan will settle after June 30, 2022, at which time the interest rate will be determined. |
|
(6) |
Fixed-rate
loan. |
|
(7) |
Amount
is less than 0.05%. |
|
(8) |
May
be deemed to be an affiliated investment company. The rate shown is the annualized seven-day yield as of June 30, 2022. |
| Abbreviations:
|
| LIBOR
|
– London
Interbank Offered Rate |
| PIK
|
– Payment
In Kind |
| SOFR
|
– Secured
Overnight Financing Rate |
| Currency
Abbreviations: |
| USD
|
– United
States Dollar |
22
See Notes to Financial Statements.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Statement of Assets
and Liabilities
| |
June
30, 2022 |
| Assets
|
|
| Unaffiliated
investments, at value (identified cost $265,277,046) |
$
248,810,115 |
| Affiliated
investment, at value (identified cost $5,808,842) |
5,808,842
|
| Cash
|
1,219,169
|
| Foreign
currency, at value (identified cost $35,855) |
32,169
|
| Interest
receivable |
613,983
|
| Dividends
receivable from affiliated investment |
4,075
|
| Receivable
for investments sold |
1,936,932
|
| Prepaid
upfront fees on notes payable |
28,340
|
| Prepaid
expenses |
13,986
|
| Total
assets |
$258,467,611
|
| Liabilities
|
|
| Notes
payable |
$
54,000,000 |
| Payable
for investments purchased |
470,250
|
| Payable
to affiliates: |
|
| Investment
adviser and administration fee |
151,160
|
| Trustees'
fees |
4,238
|
| Interest
expense and fees payable |
130,047
|
| Accrued
expenses |
112,388
|
| Total
liabilities |
$
54,868,083 |
| Net
assets applicable to common shares |
$203,599,528
|
| Sources
of Net Assets |
|
| Common
shares, $0.01 par value, unlimited number of shares authorized |
$
236,788 |
| Additional
paid-in capital |
232,593,771
|
| Accumulated
loss |
(29,231,031)
|
| Net
assets applicable to common shares |
$203,599,528
|
| Common
Shares Issued and Outstanding |
23,678,753
|
| Net
Asset Value Per Common Share |
|
| Net
assets ÷ common shares issued and outstanding |
$
8.60 |
23
See Notes to Financial Statements.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
| |
Year
Ended |
| |
June
30, 2022 |
| Investment
Income |
|
| Dividend
income from affiliated investments |
$
9,249 |
| Interest
and other income |
12,651,571
|
| Total
investment income |
$
12,660,820 |
| Expenses
|
|
| Investment
adviser and administration fee |
$
2,204,692 |
| Trustees’
fees and expenses |
16,527
|
| Custodian
fee |
150,266
|
| Transfer
and dividend disbursing agent fees |
22,207
|
| Legal
and accounting services |
51,873
|
| Printing
and postage |
38,846
|
| Interest
expense and fees |
1,501,455
|
| Miscellaneous
|
33,104
|
| Total
expenses |
$
4,018,970 |
| Deduct:
|
|
| Waiver
and/or reimbursement of expenses by affiliate |
$
935 |
| Total
expense reductions |
$
935 |
| Net
expenses |
$
4,018,035 |
| Net
investment income |
$
8,642,785 |
| Realized
and Unrealized Gain (Loss) |
|
| Net
realized gain (loss): |
|
| Investment
transactions |
$
(1,883,637) |
| Investment
transactions - affiliated investment |
(89)
|
| Foreign
currency transactions |
(871)
|
| Net
realized loss |
$
(1,884,597) |
| Change
in unrealized appreciation (depreciation): |
|
| Investments
|
$
(15,430,518) |
| Investments
- affiliated investment |
(13)
|
| Foreign
currency |
(3,516)
|
| Net
change in unrealized appreciation (depreciation) |
$(15,434,047)
|
| Net
realized and unrealized loss |
$(17,318,644)
|
| Net
decrease in net assets from operations |
$
(8,675,859) |
24
See Notes to Financial Statements.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Statements of Changes
in Net Assets
| |
Year
Ended June 30, |
| |
2022
|
2021
|
| Increase
(Decrease) in Net Assets |
|
|
| From
operations: |
|
|
| Net
investment income |
$
8,642,785 |
$
9,313,969 |
| Net
realized loss |
(1,884,597)
|
(3,073,511)
|
| Net
change in unrealized appreciation (depreciation) |
(15,434,047)
|
20,820,449
|
| Net
increase (decrease) in net assets from operations |
$
(8,675,859) |
$
27,060,907 |
| Distributions
to common shareholders |
$
(8,732,006) |
$
(9,945,706) |
| Capital
share transactions: |
|
|
| Reinvestment
of distributions to common shareholders |
$
354,193 |
$
177,035 |
| Net
increase in net assets from capital share transactions |
$
354,193 |
$
177,035 |
| Net
increase (decrease) in net assets |
$
(17,053,672) |
$
17,292,236 |
| Net
Assets Applicable to Common Shares |
|
|
| At
beginning of year |
$
220,653,200 |
$
203,360,964 |
| At
end of year |
$203,599,528
|
$220,653,200
|
25
See Notes to Financial Statements.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
| |
Year
Ended |
| |
June
30, 2022 |
| Cash
Flows From Operating Activities |
|
| Net
decrease in net assets from operations |
$
(8,675,859) |
| Adjustments
to reconcile net decrease in net assets from operations to net cash provided by operating activities: |
|
| Investments
purchased |
(63,744,657)
|
| Investments
sold and principal repayments |
114,554,372
|
| Decrease
in short-term investments, net |
632,960
|
| Net
amortization/accretion of premium (discount) |
(456,070)
|
| Amortization
of prepaid upfront fees on notes payable |
47,001
|
| Decrease
in interest receivable |
141,440
|
| Increase
in dividends receivable from affiliated investment |
(3,604)
|
| Increase
in prepaid expenses |
(4,031)
|
| Decrease
in payable to affiliate for investment adviser and administration fee |
(40,001)
|
| Increase
in payable to affiliate for Trustees' fees |
113
|
| Decrease
in interest expense and fees payable |
(133,312)
|
| Decrease
in accrued expenses |
(52,437)
|
| Decrease
in unfunded loan commitments |
(197,507)
|
| Net
change in unrealized (appreciation) depreciation from investments |
15,430,531
|
| Net
realized loss from investments |
1,883,726
|
| Net
cash provided by operating activities |
$
59,382,665 |
| Cash
Flows From Financing Activities |
|
| Cash
distributions paid to common shareholders |
$
(8,377,813) |
| Liquidation
of variable rate term preferred shares |
(32,000,000)
|
| Proceeds
from notes payable |
42,000,000
|
| Repayments
of notes payable |
(63,000,000)
|
| Payment
of upfront fees on notes payable |
(40,000)
|
| Net
cash used in financing activities |
$
(61,417,813) |
| Net
decrease in cash* |
$
(2,035,148) |
| Cash
at beginning of year (including foreign currency) |
$
3,286,486 |
| Cash
at end of year (including foreign currency) |
$
1,251,338 |
| Supplemental
disclosure of cash flow information: |
|
| Noncash
financing activities not included herein consist of: |
|
| Reinvestment
of dividends and distributions |
$
354,193 |
| Cash
paid for interest and fees on borrowings and variable rate term preferred shares |
1,627,766
|
| *
|
Includes
net change in unrealized appreciation (depreciation) on foreign currency of $(3,686). |
26
See Notes to Financial Statements.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Selected data for a
common share outstanding during the periods stated
| |
Year
Ended June 30, |
Period
Ended
June 30, 2018(1) |
| |
2022
|
2021
|
2020
|
2019
|
|
| Net
asset value — Beginning of year (Common shares) |
$
9.330 |
$
8.610 |
$
9.490 |
$
9.680 |
$
9.850(2) |
| Income
(Loss) From Operations |
|
|
|
|
|
| Net
investment income(3) |
$
0.365 |
$
0.394 |
$
0.469 |
$
0.502 |
$
0.404 |
| Net
realized and unrealized gain (loss) |
(0.726)
|
0.747
|
(0.826)
|
(0.159)
|
(0.152)
|
| Total
income (loss) from operations |
$(0.361)
|
$
1.141 |
$(0.357)
|
$
0.343 |
$
0.252 |
| Less
Distributions to Common Shareholders |
|
|
|
|
|
| From
net investment income |
$
(0.369) |
$
(0.421) |
$
(0.523) |
$
(0.533) |
$
(0.406) |
| Total
distributions to common shareholders |
$(0.369)
|
$(0.421)
|
$(0.523)
|
$(0.533)
|
$(0.406)
|
| Offering
costs charged to paid-in capital(3) |
$
— |
$
— |
$
— |
$
— |
$(0.020)
|
| Premium
related to exercise of underwriters’ over-allotment option(3) |
$
— |
$
— |
$
— |
$
— |
$
0.004 |
| Net
asset value — End of year (Common shares) |
$
8.600 |
$
9.330 |
$
8.610 |
$
9.490 |
$
9.680 |
| Market
value — End of year (Common shares) |
$
8.530 |
$
9.430 |
$
8.100 |
$
9.290 |
$
9.440 |
| Total
Investment Return on Net Asset Value(4) |
(4.04)%
|
13.56%
|
(3.65)%
|
3.86%
|
2.55%
(5)(6) |
| Total
Investment Return on Market Value(4) |
(5.83)%
|
22.01%
|
(7.36)%
|
4.20%
|
0.01%
(5)(6) |
27
See Notes to Financial Statements.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Financial
Highlights — continued
Selected data for a
common share outstanding during the periods stated
| |
Year
Ended June 30, |
Period
Ended
June 30, 2018(1) |
| |
2022
|
2021
|
2020
|
2019
|
|
| Ratios/Supplemental
Data |
|
|
|
|
|
| Net
assets applicable to common shares, end of year (000’s omitted) |
$203,600
|
$220,653
|
$203,361
|
$224,158
|
$228,461
|
| Ratios
(as a percentage of average daily net assets applicable to common shares):† |
|
|
|
|
|
| Expenses
excluding interest and fees |
1.16%
(7) |
1.23%
|
1.24%
|
1.25%
|
1.24%
(8) |
| Interest
and fee expense(9) |
0.69%
|
0.77%
|
1.68%
|
2.12%
|
1.53%
(8) |
| Total
expenses |
1.85%
(7) |
2.00%
|
2.92%
|
3.37%
|
2.77%
(8) |
| Net
investment income |
3.97%
|
4.31%
|
5.16%
|
5.25%
|
4.50%
(8) |
| Portfolio
Turnover |
18%
|
33%
|
32%
|
22%
|
30%
(5) |
| Senior
Securities: |
|
|
|
|
|
| Total
notes payable outstanding (in 000’s) |
$
54,000 |
$
75,000 |
$
79,500 |
$
92,000 |
$100,000
|
| Asset
coverage per $1,000 of notes payable(10) |
$
4,770 |
$
4,369 |
$
3,961 |
$
3,784 |
$
3,605 |
| Total
variable rate term preferred shares outstanding |
—
(11) |
320
|
320
|
320
|
320
|
| Asset
coverage per variable rate term preferred share(12) |
$
—(11) |
$306,218
|
$282,387
|
$280,773
|
$273,077
|
| Involuntary
liquidation preference per variable rate term preferred share(13) |
$
—(11) |
$100,000
|
$100,000
|
$100,000
|
$100,000
|
| Approximate
market value per variable rate term preferred share(13) |
$
—(11) |
$100,000
|
$100,000
|
$100,000
|
$100,000
|
|
(1) |
For the
period from the start of business, July 31, 2017, to June 30, 2018. |
|
(2) |
Net
asset value at beginning of period reflects the deduction of the sales charge of $0.15 per share paid by the shareholders from the $10.00 offering price. |
|
(3) |
Computed
using average common shares outstanding. |
|
(4) |
Returns
are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Trust’s dividend reinvestment
plan. |
|
(5) |
Not
annualized. |
|
(6) |
Total
investment return on net asset value is calculated assuming a purchase at the offering price of $10.00 less the sales load of $0.15 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period
reported with all distributions reinvested. Total investment return on market value is calculated assuming a purchase at the offering price of $10.00 less the sales load of $0.15 per share paid by the shareholder on the first day and a sale at the
current market price on the last day of the period reported with all distributions reinvested. |
|
(7) |
The
investment adviser reduced a portion of its adviser and administration fee (equal to less than 0.005% of average daily net assets for the year ended June 30, 2022). |
|
(8) |
Annualized.
|
|
(9) |
Interest
and fee expense relates to the variable rate term preferred shares (see Note 2) and the notes payable (see Note 7) for the purpose of financial leverage. |
|
(10) |
Calculated
by subtracting the Trust’s total liabilities (not including the notes payable and variable rate term preferred shares) from the Trust’s total assets, and dividing the result by the notes payable balance in thousands. |
|
(11) |
As of
June 30, 2022, the Trust had no variable rate term preferred shares outstanding (see Note 2). |
|
(12) |
Calculated
by subtracting the Trust’s total liabilities (not including the notes payable and variable rate term preferred shares) from the Trust’s total assets, dividing the result by the sum of the value of the notes payable and liquidation value
of the variable rate term preferred shares, and multiplying the result by the liquidation value of one variable rate term preferred share. |
|
(13) |
Plus
accumulated and unpaid dividends. |
|
† |
Ratios
based on net assets applicable to common shares plus variable rate term preferred shares and borrowings are presented below. Ratios for periods less than one year are annualized. |
| |
Year
Ended June 30, |
Period
Ended
June 30, 2018(1) |
| |
2022
|
2021
|
2020
|
2019
|
|
| Expenses
excluding interest and fees |
0.80%
|
0.81%
|
0.80%
|
0.80%
|
0.83%
|
| Interest
and fee expense |
0.48%
|
0.51%
|
1.08%
|
1.35%
|
1.02%
|
| Total
expenses |
1.28%
|
1.32%
|
1.88%
|
2.15%
|
1.85%
|
| Net
investment income |
2.75%
|
2.85%
|
3.32%
|
3.35%
|
3.00%
|
|
(1) |
For
the period from the start of business, July 31, 2017, to June 30, 2018. |
28
See Notes to Financial Statements.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Notes to Financial
Statements
1 Significant Accounting Policies
Eaton Vance Floating-Rate 2022 Target Term Trust (the Trust) is
a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a diversified, closed-end management investment company. The Trust’s investment objectives are high current income and to return
$9.85 per share, the original net asset value per common share before deducting offering costs of $0.02 per common share (“Original NAV”), to holders of common shares of record on or about October 31, 2022 (the “Termination
Date”). On or about the Termination Date, the Trust intends to cease its investment operations, liquidate its portfolio, retire its leverage facility, and seek to return Original NAV to common shareholders. On April 12, 2022, the Trust
redeemed one of its leverage facilities (see Note 2) in advance of the Termination Date. On April 29, 2022, the Trust announced that due to challenging market conditions over the life of the Trust, the Trust is not expected to meet its objective of
returning Original NAV to common shareholders at termination. Effective April 29, 2022, the Trust began to prepare for its expected termination. During the wind-up period, the Trust may deviate from its policy of investing at least 80% of managed
assets in senior floating-rate loans and invest in higher credit quality instruments with maturities extending beyond the Termination Date to seek to enhance the liquidity of its portfolio and reduce investment risk.
The following is a summary of significant accounting policies
of the Trust. The policies are in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The Trust is an investment company and follows accounting and reporting guidance in the Financial Accounting
Standards Board (FASB) Accounting Standards Codification Topic 946.
A Investment
Valuation—The following methodologies are used to determine the market value or fair value of
investments.
Senior Floating-Rate Loans. Interests in senior floating-rate loans (Senior Loans) for which reliable market quotations are readily available are valued generally at the average mean of bid and ask quotations obtained from a third party pricing
service. Other Senior Loans are valued at fair value by the investment adviser under procedures approved by the Trustees. In fair valuing a Senior Loan, the investment adviser utilizes one or more of the valuation techniques described in (i) through
(iii) below to assess the likelihood that the borrower will make a full repayment of the loan underlying such Senior Loan relative to yields on other Senior Loans issued by companies of comparable credit quality. If the investment adviser believes
that there is a reasonable likelihood of full repayment, the investment adviser will determine fair value using a matrix pricing approach that considers the yield on the Senior Loan. If the investment adviser believes there is not a reasonable
likelihood of full repayment, the investment adviser will determine fair value using analyses that include, but are not limited to: (i) a comparison of the value of the borrower’s outstanding equity and debt to that of comparable public
companies; (ii) a discounted cash flow analysis; or (iii) when the investment adviser believes it is likely that a borrower will be liquidated or sold, an analysis of the terms of such liquidation or sale. In certain cases, the investment adviser
will use a combination of analytical methods to determine fair value, such as when only a portion of a borrower’s assets are likely to be sold. In conducting its assessment and analyses for purposes of determining fair value of a Senior Loan,
the investment adviser will use its discretion and judgment in considering and appraising relevant factors. Fair value determinations are made by the portfolio managers of the Trust based on information available to such managers. The portfolio
managers of other funds managed by the investment adviser that invest in Senior Loans may not possess the same information about a Senior Loan borrower as the portfolio managers of the Trust. At times, the fair value of a Senior Loan determined by
the portfolio managers of other funds managed by the investment adviser that invest in Senior Loans may vary from the fair value of the same Senior Loan determined by the portfolio managers of the Trust. The fair value of each Senior Loan is
periodically reviewed and approved by the investment adviser’s Valuation Committee and by the Trustees based upon procedures approved by the Trustees. Junior Loans (i.e., subordinated loans and second lien loans) are valued in the same manner
as Senior Loans.
Debt Obligations. Debt obligations are generally valued on the basis of valuations provided by third party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to,
reported trades, executable bid and ask prices, broker/dealer quotations, prices or yields of securities with similar characteristics, interest rates, anticipated prepayments, benchmark curves or information pertaining to the issuer, as well as
industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Short-term debt obligations purchased with a
remaining maturity of sixty days or less for which a valuation from a third party pricing service is not readily available may be valued at amortized cost, which approximates fair value.
Equity Securities. Equity
securities listed on a U.S. securities exchange generally are valued at the last sale or closing price on the day of valuation or, if no sales took place on such date, at the mean between the closing bid and ask prices on the exchange where such
securities are principally traded. Equity securities listed on the NASDAQ National Market System are valued at the NASDAQ official closing price. Unlisted or listed securities for which closing sales prices or closing quotations are not available
are valued at the mean between the latest available bid and ask prices or, in the case of preferred equity securities that are not listed or traded in the over-the-counter market, by a third party pricing service that uses various techniques that
consider factors including, but not limited to, prices or yields of securities with similar characteristics, benchmark yields, broker/dealer quotes, quotes of underlying common stock, issuer spreads, as well as industry and economic
events.
Foreign Securities and Currencies. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rate quotations supplied by a third party pricing service. The pricing service uses a proprietary model to determine the
exchange rate. Inputs to the model include reported trades and implied bid/ask spreads.
Other. Investments in
management investment companies (including money market funds) that do not trade on an exchange are valued at the net asset value as of the close of each business day.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Notes to Financial
Statements — continued
Fair
Valuation. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the
Trustees of the Trust in a manner that most fairly reflects the security’s "fair value", which is the amount that the Trust might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such
determination is based on a consideration of relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on
the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies or entities, quotations or relevant information obtained from broker/dealers or other market participants,
information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company’s or entity’s financial statements, and an evaluation of the forces that influence the
issuer and the market(s) in which the security is purchased and sold.
B Investment Transactions—Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized
gains and losses on investments sold are determined on the basis of identified cost.
C Income—Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount. Fees associated
with loan amendments are recognized immediately. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities.
D Federal
Taxes—The Trust intends to make monthly distributions of net investment income and any net realized
capital gains in amounts necessary to maintain its taxation as a regulated investment company for U.S. federal income tax purposes. For the purpose of pursuing its investment objective of returning Original NAV, the Trust may retain a portion of its
net investment income and some or all of its net capital gains, which would result in the Trust paying U.S. federal excise and corporate income taxes.
As of June 30, 2022, the Trust had no uncertain tax positions
that would require financial statement recognition, de-recognition, or disclosure. The Trust files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of
three years from the date of filing.
E Foreign
Currency Translation—Investment valuations, other assets, and liabilities initially expressed in
foreign currencies are translated each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investment securities and income and expenses denominated in foreign currencies are translated into U.S. dollars
based upon currency exchange rates in effect on the respective dates of such transactions. Recognized gains or losses on investment transactions attributable to changes in foreign currency exchange rates are recorded for financial statement purposes
as net realized gains and losses on investments. That portion of unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.
F Unfunded Loan Commitments—The Trust may enter into certain loan agreements all or a portion of which may be unfunded. The Trust is
obligated to fund these commitments at the borrower's discretion. These commitments are disclosed in the accompanying Portfolio of Investments. At June 30, 2022, the Trust had sufficient cash and/or securities to cover these
commitments.
G Use of Estimates—The preparation of the financial statements in conformity with U.S. GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those
estimates.
H Indemnifications—Under the Trust’s organizational documents, its officers and Trustees may be indemnified against
certain liabilities and expenses arising out of the performance of their duties to the Trust. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as the Trust) could be deemed to have personal
liability for the obligations of the Trust. However, the Trust’s Declaration of Trust contains an express disclaimer of liability on the part of Trust shareholders and the By-laws provide that the Trust shall assume, upon request by the
shareholder, the defense on behalf of any Trust shareholders. Moreover, the By-laws also provide for indemnification out of Trust property of any shareholder held personally liable solely by reason of being or having been a shareholder for all loss
or expense arising from such liability. Additionally, in the normal course of business, the Trust enters into agreements with service providers that may contain indemnification clauses. The Trust's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Trust that have not yet occurred.
2 Variable Rate Term Preferred Shares
On September 6, 2017, the Trust issued 320 shares of Series C-1
Variable Rate Term Preferred Shares (VRTP Shares) in a private offering to a commercial paper conduit sponsored by a large financial institution (the Conduit).
VRTP Shares were a form of preferred shares that represented
stock of the Trust. They had a par value of $0.01 per share, a liquidation preference of $100,000 per share, and a mandatory redemption date of September 8, 2022, unless redeemed earlier by the Trust. Dividends on the VRTP Shares were determined
each day based on a spread of 1.75% to three-month LIBOR. Such spread was determined based on the current credit rating of the VRTP Shares, which was provided by Moody’s Investor Service.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Notes to Financial
Statements — continued
The
VRTP Shares were redeemable at the option of the Trust at a redemption price equal to $100,000 per share, plus accumulated and unpaid dividends, on any business day and solely for the purpose of reducing the leverage of the Trust. The VRTP Shares
were also subject to mandatory redemption at a redemption price equal to $100,000 per share, plus accumulated and unpaid dividends, if the Trust was in default for an extended period on its asset maintenance or leverage ratio requirements with
respect to the VRTP Shares. The holders of the VRTP Shares, voting as a class, were entitled to elect two Trustees of the Trust. If the dividends on the VRTP Shares remained unpaid in an amount equal to two full years’ dividends, the holders
of the VRTP Shares as a class had the right to elect a majority of the Board of Trustees.
On April 12, 2022, the Trust redeemed all of its VRTP Shares at
a liquidation price of $100,000 per share plus any accrued but unpaid dividends. The number of VRTP Shares redeemed was 320 and their liquidation preference was $32,000,000.
3 Distributions to Shareholders and Income Tax
Information
The Trust intends to make monthly
distributions of net investment income to common shareholders, after payment of any dividends on any outstanding VRTP Shares. The Trust may also distribute net realized capital gains, if any, generally not more than once per year. Distributions to
common shareholders are recorded on the ex-dividend date. Prior to the redemption of the VRTP Shares, dividends to variable rate term preferred shareholders were accrued daily and payable quarterly. The amount of dividends accrued and the average
annual dividend rate of the VRTP Shares during the year ended June 30, 2022 were $487,175 and 1.94%, respectively. Dividends accrued on VRTP Shares are treated as interest payments for financial reporting purposes and are included in interest
expense and fees on the Statement of Operations.
Distributions to shareholders are determined in accordance with
income tax regulations, which may differ from U.S. GAAP. As required by U.S. GAAP, only distributions in excess of tax basis earnings and profits are reported in the financial statements as a return of capital. Permanent differences between book and
tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.
The tax character of distributions declared, including
distributions on VRTP Shares that are treated as interest expense for financial reporting purposes, for the years ended June 30, 2022 and June 30, 2021 was as follows:
| |
Year
Ended June 30, |
| |
2022
|
2021
|
| Ordinary
income |
$9,219,181
|
$10,600,375
|
As of June 30, 2022, the components
of distributable earnings (accumulated loss) on a tax basis were as follows:
| Undistributed
ordinary income |
$
24,193 |
| Deferred
capital losses |
(12,413,912)
|
| Net
unrealized depreciation |
(16,841,312)
|
| Accumulated
loss |
$(29,231,031)
|
At June 30, 2022, the Trust, for
federal income tax purposes, had deferred capital losses of $12,413,912 which would reduce its taxable income arising from future net realized gains on investment transactions, if any, to the extent permitted by the Internal Revenue Code, and thus
would reduce the amount of distributions to shareholders, which would otherwise be necessary to relieve the Trust of any liability for federal income or excise tax. The deferred capital losses are treated as arising on the first day of the
Trust’s next taxable year and retain the same short-term or long-term character as when originally deferred. Of the deferred capital losses at June 30, 2022, $381,814 are short-term and $12,032,098 are long-term.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Notes to Financial
Statements — continued
The
cost and unrealized appreciation (depreciation) of investments of the Trust at June 30, 2022, as determined on a federal income tax basis, were as follows:
| Aggregate
cost |
$
271,456,583 |
| Gross
unrealized appreciation |
$
96,098 |
| Gross
unrealized depreciation |
(16,933,724)
|
| Net
unrealized depreciation |
$
(16,837,626) |
4 Investment Adviser and Administration Fee and
Other Transactions with Affiliates
The investment adviser
and administration fee is earned by Eaton Vance Management (EVM), an indirect, wholly-owned subsidiary of Morgan Stanley, as compensation for investment advisory and administrative services rendered to the Trust. The investment adviser and
administration fee is computed at an annual rate of 0.70% of the Trust’s average daily total managed assets and is payable monthly. During any extension period of the Trust’s term, the fee will be reduced to 0.35% of the Trust’s
average daily total managed assets. Total managed assets means total assets of the Trust (including assets attributable to borrowings, any outstanding preferred shares, or other forms of leverage) less accrued liabilities (other than liabilities
representing borrowings or such other forms of leverage). For the year ended June 30, 2022, the Trust’s investment adviser and administration fee amounted to $2,204,692.
Effective April 26, 2022, the Trust may invest in a money
market fund, the Institutional Class of the Morgan Stanley Institutional Liquidity Funds - Government Portfolio (the Liquidity Fund), an open-end management investment company managed by Morgan Stanley Investment Management Inc., a wholly-owned
subsidiary of Morgan Stanley. The investment adviser and administration fee paid by the Trust is reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Trust due to its investment in the Liquidity Fund.
For the year ended June 30, 2022, the investment adviser and administration fee paid was reduced by $935 relating to the Trust’s investment in the Liquidity Fund. Prior to April 26, 2022, the Trust may have invested its cash in Eaton Vance
Cash Reserves Fund, LLC (Cash Reserves Fund), an affiliated investment company managed by EVM. EVM did not receive a fee for advisory services provided to Cash Reserves Fund.
Trustees and officers of the Trust who are members of
EVM’s organization receive remuneration for their services to the Trust out of the investment adviser and administration fee. Trustees of the Trust who are not affiliated with EVM may elect to defer receipt of all or a percentage of their
annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the year ended June 30, 2022, no significant amounts have been deferred. Certain officers and Trustees of the Trust are officers of EVM.
5 Purchases and Sales of Investments
Purchases and sales of investments, other than short-term
obligations and including maturities, paydowns and principal repayments on Senior Loans, aggregated $55,434,296 and $113,753,536, respectively, for the year ended June 30, 2022.
6 Common Shares of Beneficial Interest
Common shares issued by the Trust pursuant to its dividend
reinvestment plan for the years ended June 30, 2022 and June 30, 2021 were 38,115 and 19,026, respectively.
7 Credit Agreement
The Trust has entered into a Credit Agreement, as amended (the
Agreement) with a bank to borrow up to a limit of $80 million ($100 million prior to March 15, 2022). Borrowings under the Agreement are secured by the assets of the Trust. Interest is charged at a rate above the Secured Overnight Financing Rate
(SOFR) and is payable monthly. Under the terms of the Agreement, in effect through March 14, 2023, the Trust pays a facility fee of 0.15% on the borrowing limit. In connection with the renewal of the Agreement on March 15, 2022, the Trust paid an
upfront fee of $40,000, which is being amortized to interest expense over a period of one year. The unamortized balance at June 30, 2022 is approximately $28,000 and is included in prepaid upfront fees on notes payable on the Statement of Assets and
Liabilities. The Trust is required to maintain certain net asset levels during the term of the Agreement. At June 30, 2022, the Trust had borrowings outstanding under the Agreement of $54,000,000 at an annual interest rate of 2.45%. Based on the
short-term nature of the borrowings under the Agreement and the variable interest rate, the carrying amount of the borrowings at June 30, 2022 approximated its fair value. If measured at fair value, borrowings under the Agreement would have been
considered as Level 2 in the fair value hierarchy (see Note 9) at June 30, 2022. For the year ended June 30, 2022, the average borrowings under the Agreement and the average annual interest rate (excluding fees) were $72,054,795 and 1.11%,
respectively.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Notes to Financial
Statements — continued
8 Investments in Affiliated Funds
At June 30, 2022, the value of the Trust's investment in
affiliated funds was $5,808,842, which represents 2.9% of the Trust's net assets applicable to common shares. Transactions in affiliated funds by the Trust for the year ended June 30, 2022 were as follows:
| Name
|
Value,
beginning
of period |
Purchases
|
Sales
proceeds |
Net
realized
gain (loss) |
Change
in
unrealized
appreciation
(depreciation) |
Value,
end
of period |
Dividend
income |
Units/Shares,
end of period |
| Short-Term
Investments |
| Cash
Reserves Fund |
$6,441,904
|
$84,487,229
|
$(90,929,031)
|
$
(89) |
$
(13) |
$
— |
$
3,209 |
—
|
| Liquidity
Fund |
—
|
21,044,892
|
(15,236,050)
|
—
|
—
|
5,808,842
|
6,040
|
5,808,842
|
| Total
|
|
|
|
$
(89) |
$
(13) |
$5,808,842
|
$9,249
|
|
9 Fair Value Measurements
Under generally accepted accounting principles for fair value
measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
| •
|
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) |
In cases where the inputs used to measure fair value fall in
different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not
necessarily an indication of the risk associated with investing in those securities.
At June 30, 2022, the hierarchy of inputs used in valuing the
Trust's investments, which are carried at value, were as follows:
| Asset
Description |
Level
1 |
Level
2 |
Level
3 |
Total
|
| Corporate
Bonds |
$
— |
$
6,159,133 |
$
— |
$
6,159,133 |
| Senior
Floating-Rate Loans (Less Unfunded Loan Commitments) |
—
|
242,650,982
|
—
|
242,650,982
|
| Short-Term
Investments |
5,808,842
|
—
|
—
|
5,808,842
|
| Total
Investments |
$5,808,842
|
$248,810,115
|
$ —
|
$254,618,957
|
Level 3 investments at the beginning
and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended June 30, 2022 is not presented.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Notes to Financial
Statements — continued
10 Risks and Uncertainties
Credit Risk
The Trust invests primarily in below investment grade
floating-rate loans, which are considered speculative because of the credit risk of their issuers. Changes in economic conditions or other circumstances are more likely to reduce the capacity of issuers of these securities to make principal and
interest payments. Such companies are more likely to default on their payments of interest and principal owed than issuers of investment grade bonds. An economic downturn generally leads to a higher non-payment rate, and a loan or other debt
obligation may lose significant value before a default occurs. Lower rated investments also may be subject to greater price volatility than higher rated investments. Moreover, the specific collateral used to secure a loan may decline in value or
become illiquid, which would adversely affect the loan’s value.
LIBOR Transition Risk
Certain instruments held by the Trust may pay an interest rate
based on the London Interbank Offered Rate (“LIBOR”), which is the average offered rate for various maturities of short-term loans between certain major international banks. LIBOR is used throughout global banking and financial
industries to determine interest rates for a variety of financial instruments (such as debt instruments and derivatives) and borrowing arrangements. The ICE Benchmark Administration Limited, the administrator of LIBOR, ceased publishing certain
LIBOR settings on December 31, 2021, and is expected to cease publishing the remaining LIBOR settings on June 30, 2023. Although the transition process away from LIBOR has become increasingly well-defined, the impact on certain debt securities,
derivatives and other financial instruments that utilize LIBOR remains uncertain. The phase-out of LIBOR may result in, among other things, increased volatility or illiquidity in markets for instruments based on LIBOR and changes in the value of
such instruments.
Pandemic Risk
An outbreak of respiratory disease caused by a novel
coronavirus was first detected in China in late 2019 and subsequently spread internationally. This coronavirus has resulted in closing borders, enhanced health screenings, changes to healthcare service preparation and delivery, quarantines,
cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. Health crises caused by outbreaks of disease, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and
economic risks and disrupt normal market conditions and operations. The impact of this outbreak has negatively affected the worldwide economy, as well as the economies of individual countries and industries, and could continue to affect the market
in significant and unforeseen ways. Other epidemics and pandemics that may arise in the future may have similar effects. Any such impact could adversely affect the Trust's performance, or the performance of the securities in which the Trust
invests.
11 Subsequent Events
In connection with the Trust's upcoming termination on October
31, 2022, the Trust repaid its outstanding borrowings of $25,000,000 under the Credit Agreement (the Agreement) on August 1, 2022 and terminated the Agreement on August 10, 2022. As of July 21, 2022, EVM reduced the investment adviser and
administration fee paid by the Trust to 0.35% of the Trust's average daily total managed assets. As of July 21, 2022, the assets of the Trust were comprised primarily of cash, cash equivalents and receivables for securities that had been sold but
unsettled.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Report of Independent
Registered Public Accounting Firm
To the
Trustees and Shareholders of Eaton Vance Floating-Rate 2022 Target Term Trust:
Opinion on the Financial Statements and Financial
Highlights
We have audited the accompanying statement of
assets and liabilities of Eaton Vance Floating-Rate 2022 Target Term Trust (the “Trust”), including the portfolio of investments, as of June 30, 2022, the related statements of operations and cash flows for the year then ended, the
statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the four years in the period then ended and for the period from the start of business, July 31, 2017, to June 30, 2018, and
the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Trust as of June 30, 2022, and the results of its operations and its cash flows for the year
then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended and for the period from the start of business, July 31, 2017, to June 30,
2018, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an opinion on the Trust's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the
PCAOB.
We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The
Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the
purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks
of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts
and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial
statements and financial highlights. Our procedures included confirmation of securities and senior loans owned as of June 30, 2022, by correspondence with the custodian, brokers and selling or agent banks; when replies were not received from brokers
and selling or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Emphasis of Matter
As disclosed in Notes 1 and 11 to the financial statements, the
Trust intends to cease its investment operations, liquidate its portfolio, retire its leverage facility, and seek to return Original NAV to common shareholders, on or about the Termination Date of October 31, 2022. On April 29, 2022, the Trust
announced that due to challenging market conditions over the life of the Trust, the Trust is not expected to meet its objective of returning Original NAV to common shareholders at termination. Effective April 29, 2022, the Trust began to prepare for
its expected termination. As of July 21, 2022, the assets of the Trust were comprised primarily of cash, cash equivalents and receivables for securities that had been sold but unsettled. Our opinion is not modified with respect to this matter.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
August 23, 2022
We have served as the auditor of one or
more Eaton Vance investment companies since 1959.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Federal Tax
Information (Unaudited)
The
Form 1099-DIV you receive in February 2023 will show the tax status of all distributions paid to your account in calendar year 2022. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their investment
in the Trust. As required by the Internal Revenue Code and/or regulations, shareholders must be notified regarding the status of 163(j) interest dividends.
163(j) Interest Dividends. For
the fiscal year ended June 30, 2022, the Trust designates 100% of distributions from net investment income as a 163(j) interest dividend.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Annual Meeting of
Shareholders (Unaudited)
The
Trust held its Annual Meeting of Shareholders on April 14, 2022. The following actions were taken by the shareholders.
Proposal 1a: The election of
Cynthia E. Frost, William H. Park and Helen Frame Peters as Class II Trustees of the Trust for a three-year term expiring in 2025.
The following votes were cast by the Trust’s common and
VRTP shareholders, voting together as a single class:
| |
|
|
Number
of Shares |
| Nominees
for Trustee |
|
|
For
|
Withheld
|
| Cynthia
E. Frost |
|
|
20,358,744
|
232,121
|
| William
H. Park* |
|
|
20,360,006
|
230,859
|
| Helen
Frame Peters* |
|
|
20,350,125
|
240,740
|
Proposal 1b: The election of Valerie A. Mosley as a Class I Trustee of the Trust, for a three-year term expiring in 2025.
The following votes were cast by the Trust’s VRTP
shareholders, voting separately as a single class:
| |
|
|
Number
of Shares |
| Nominee
for Trustee |
|
|
For
|
Withheld
|
| Valerie
A. Mosley |
|
|
320
|
0
|
*Mr. Park and Ms. Peters retired as Trustees effective July 1, 2022.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Dividend Reinvestment
Plan
The Trust offers a dividend reinvestment plan (Plan) pursuant
to which shareholders automatically have distributions reinvested in common shares (Shares) of the Trust unless they elect otherwise through their investment dealer. On the distribution payment date, if the NAV per Share is equal to or less than the
market price per Share plus estimated brokerage commissions, then new Shares will be issued. The number of Shares shall be determined by the greater of the NAV per Share or 95% of the market price. Otherwise, Shares generally will be purchased on
the open market by American Stock Transfer & Trust Company, LLC, the Plan agent (Agent). Distributions subject to income tax (if any) are taxable whether or not Shares are reinvested.
If your Shares are in the name of a brokerage firm, bank, or
other nominee, you can ask the firm or nominee to participate in the Plan on your behalf. If the nominee does not offer the Plan, you will need to request that the Trust's transfer agent re-register your Shares in your name or you will not be able
to participate.
The Agent’s service fee for
handling distributions will be paid by the Trust. Plan participants will be charged their pro rata share of brokerage commissions on all open-market purchases.
Plan participants may withdraw from the Plan at any time by
writing to the Agent at the address noted on the following page. If you withdraw, you will receive Shares in your name for all Shares credited to your account under the Plan. If a participant elects by written notice to the Agent to sell part or all
of his or her Shares and remit the proceeds, the Agent is authorized to deduct a $5.00 fee plus brokerage commissions from the proceeds.
If you wish to participate in the Plan and your Shares are held
in your own name, you may complete the form on the following page and deliver it to the Agent. Any inquiries regarding the Plan can be directed to the Agent at 1-866-439-6787.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Application for
Participation in Dividend Reinvestment Plan
This form is for shareholders who hold
their common shares in their own names. If your common shares are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to see if it will participate in the Plan on your behalf. If you wish to participate in
the Plan, but your brokerage firm, bank, or nominee is unable to participate on your behalf, you should request that your common shares be re-registered in your own name which will enable your participation in the Plan.
The following authorization and appointment
is given with the understanding that I may terminate it at any time by terminating my participation in the Plan as provided in the terms and conditions of the Plan.
| |
| Please
print exact name on account |
|
| |
| Shareholder
signature |
Date
|
| |
| Shareholder
signature |
Date
|
| Please
sign exactly as your common shares are registered. All persons whose names appear on the share certificate must sign. |
YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO
RECEIVE YOUR DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.
This authorization form, when signed, should
be mailed to the following address:
Eaton Vance Floating-Rate 2022 Target Term
Trust
c/o American Stock Transfer & Trust Company, LLC
P.O. Box 922
Wall Street Station
New York, NY 10269-0560
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Board of
Trustees’ Contract Approval
Overview of the Contract Review Process
The Investment Company Act of 1940, as amended (the “1940
Act”), provides, in substance, that the investment advisory agreement between a fund and its investment adviser will continue in effect from year-to-year only if its continuation is approved on an annual basis by a vote of the fund’s
board of trustees, including a majority of the trustees who are not “interested persons” of the fund (“independent trustees”), cast in person at a meeting called for the purpose of considering such approval.
At a meeting held on June 8, 2022, the Boards of
Trustees/Directors (collectively, the “Board”) that oversee the registered investment companies advised by Eaton Vance Management or its affiliate, Boston Management and Research (the “Eaton Vance Funds”), including a
majority of the independent trustees (the “Independent Trustees”), voted to approve the continuation of existing investment advisory agreements and sub-advisory
agreements1 for each of the Eaton Vance Funds for an additional one-year period. The Board relied upon the affirmative recommendation of its Contract Review Committee, which is
a committee exclusively comprised of Independent Trustees. Prior to making its recommendation, the Contract Review Committee reviewed information furnished by the adviser and sub-adviser to each of the Eaton Vance Funds (including information
specifically requested by the Board) for a series of formal meetings held between April and June 2022. Members of the Contract Review Committee also considered information received at prior meetings of the Board and its committees, to the extent
such information was relevant to the Contract Review Committee’s annual evaluation of the investment advisory agreements and sub-advisory agreements.
In connection with its evaluation of the investment advisory
agreements and sub-advisory agreements, the Board considered various information relating to the Eaton Vance Funds. This included information applicable to all or groups of Eaton Vance Funds, which is referenced immediately below, and information
applicable to the particular Eaton Vance Fund covered by this report (additional fund-specific information is referenced below under “Results of the Contract Review Process”). (For funds that invest through one or more underlying
portfolios, references to “each fund” in this section may include information that was considered at the portfolio-level.)
Information about Fees, Performance and Expenses
• A report from an independent
data provider comparing advisory and other fees paid by each fund to such fees paid by comparable funds, as identified by the independent data provider (“comparable funds”);
• A report from an independent
data provider comparing each fund’s total expense ratio (and its components) to those of comparable funds;
• A report from an independent
data provider comparing the investment performance of each fund (including, as relevant, total return data, income data, Sharpe ratios and information ratios) to the investment performance of comparable funds and, as applicable, benchmark indices,
over various time periods;
• In certain instances, data
regarding investment performance relative to customized groups of peer funds and blended indices identified by the adviser in consultation with the Portfolio Management Committee of the Board (a committee exclusively comprised of Independent
Trustees);
• Comparative
information concerning the fees charged and services provided by the adviser and sub-adviser to each fund in managing other accounts (which may include other mutual funds, collective investment funds and institutional accounts) using investment
strategies and techniques similar to those used in managing such fund(s), if any;
• Profitability analyses with
respect to the adviser and sub-adviser to each of the funds;
Information about Portfolio Management and Trading
• Descriptions of the investment
management services provided to each fund, as well as each of the funds’ investment strategies and policies;
• The procedures and processes
used to determine the value of fund assets, including, when necessary, the determination of “fair value” and actions taken to monitor and test the effectiveness of such procedures and processes;
• Information about the policies
and practices of each fund’s adviser and sub-adviser with respect to trading, including their processes for seeking best execution of portfolio transactions;
• Information about the
allocation of brokerage transactions and the benefits, if any, received by the adviser and sub-adviser to each fund as a result of brokerage allocation, including, as applicable, information concerning the acquisition of research through client
commission arrangements and policies with respect to “soft dollars”;
• Data relating to the portfolio
turnover rate of each fund and related information regarding active management in the context of particular strategies;
Information about each Adviser and Sub-adviser
• Reports detailing the
financial results and condition of the adviser and sub-adviser to each fund;
• Information regarding the
individual investment professionals whose responsibilities include portfolio management and investment research for the funds, and, for portfolio managers and certain other investment professionals, information relating to their responsibilities
with respect to managing other mutual funds and investment accounts, as applicable;
1 Not all Eaton Vance Funds have entered into a sub-advisory agreement with a sub-adviser. Accordingly,
references to “sub-adviser” or “sub-advisory agreement” in this “Overview” section may not be applicable to the particular Eaton Vance Fund covered by this report. Following the “Overview” section,
further information regarding the Board’s evaluation of a fund’s contractual arrangements is included under the “Results of the Contract Review Process” section.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Board of
Trustees’ Contract Approval — continued
• Information regarding the
adviser’s and its parent company’s (Morgan Stanley’s) efforts to retain and attract talented investment professionals, including in the context of a particularly competitive marketplace for talent, as well as the ongoing unique
environment presented by hybrid, remote and other alternative work arrangements;
• The Code of Ethics of the
adviser and its affiliates and the sub-adviser of each fund, together with information relating to compliance with, and the administration of, such codes;
• Policies and procedures
relating to proxy voting, including regular reporting with respect to fund proxy voting activities;
• Information regarding the
handling of corporate actions and class actions, as well as information regarding litigation and other regulatory matters;
• Information concerning the
resources devoted to compliance efforts undertaken by the adviser and its affiliates and the sub-adviser of each fund, if any, including descriptions of their various compliance programs and their record of compliance;
• Information concerning the
business continuity and disaster recovery plans of the adviser and its affiliates and the sub-adviser of each fund, if any;
• A description of Eaton Vance
Management’s and Boston Management and Research’s oversight of sub-advisers, including with respect to regulatory and compliance issues, investment management and other matters;
Other Relevant Information
• Information regarding
ongoing initiatives to further integrate and harmonize, where applicable, the investment management and other departments of the adviser and its affiliates with the overall investment management infrastructure of Morgan Stanley, in light of Morgan
Stanley’s acquisition of Eaton Vance on March 1, 2021;
• Information concerning the
nature, cost and character of the administrative and other non-investment advisory services provided by Eaton Vance Management and its affiliates;
• Information concerning
oversight of the relationship with the custodian, subcustodians, fund accountants, and other third-party service providers by the adviser and/or administrator to each of the funds;
• Information concerning efforts
to implement policies and procedures with respect to various new regulations applicable to the funds, including Rule 12d1-4 (the Fund-of-Funds Rule), Rule 18f-4 (the Derivatives Rule) and Rule 2a-5 (the Fair Valuation Rule);
• For an Eaton Vance Fund
structured as an exchange-listed closed-end fund, information concerning the benefits of the closed-end fund structure, as well as, where relevant, the closed-end fund’s market prices (including as compared to the closed-end fund’s net
asset value (NAV)), trading volume data, continued use of auction preferred shares (where applicable), distribution rates and other relevant matters;
• The risks which the adviser
and/or its affiliates incur in connection with the management and operation of the funds, including, among others, litigation, regulatory, entrepreneurial, and other business risks (and the associated costs of such risks); and
• The terms of each investment
advisory agreement and sub-advisory agreement.
During the
various meetings of the Board and its committees over the course of the year leading up to the June 8, 2022 meeting, the Trustees received information from portfolio managers and other investment professionals of the advisers and sub-advisers of the
funds regarding investment and performance matters, and considered various investment and trading strategies used in pursuing the funds’ investment objectives. The Trustees also received information regarding risk management techniques
employed in connection with the management of the funds. The Board and its committees evaluated issues pertaining to industry and regulatory developments, compliance procedures, fund governance and other issues with respect to the funds, and
received and participated in reports and presentations provided by Eaton Vance Management, Boston Management and Research and fund sub-advisers, with respect to such matters. In addition to the formal meetings of the Board and its committees, the
Independent Trustees held regular teleconferences to discuss, among other topics, matters relating to the continuation of investment advisory agreements and sub-advisory agreements.
The Contract Review Committee was advised throughout the
contract review process by Goodwin Procter LLP, independent legal counsel for the Independent Trustees. The members of the Contract Review Committee, with the advice of such counsel, exercised their own business judgment in determining the material
factors to be considered in evaluating each investment advisory agreement and sub-advisory agreement and the weight to be given to each such factor. The conclusions reached with respect to each investment advisory agreement and sub-advisory
agreement were based on a comprehensive evaluation of all the information provided and not any single factor. Moreover, each member of the Contract Review Committee may have placed varying emphasis on particular factors in reaching conclusions with
respect to each investment advisory agreement and sub-advisory agreement. In evaluating each investment advisory agreement and sub-advisory agreement, including the fee structures and other terms contained in such agreements, the members of the
Contract Review Committee were also informed by multiple years of analysis and discussion with the adviser and sub-adviser to each of the Eaton Vance Funds.
Results of the Contract Review Process
Based on its consideration of the foregoing, and such other
information it deemed relevant, including the factors and conclusions described below, the Contract Review Committee concluded that the continuation of the investment advisory and administrative agreement between Eaton Vance Floating-Rate 2022
Target Term Trust (the “Fund”) and Eaton Vance Management (the “Adviser”), including its fee structure, is in the interests of shareholders and, therefore, recommended to the Board approval of the agreement. Based on the
recommendation of the Contract Review Committee, the Board, including a majority of the Independent Trustees, voted to approve continuation of the investment advisory and administrative agreement for the Fund.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Board of
Trustees’ Contract Approval — continued
Nature, Extent and Quality of Services
In considering whether to approve the investment advisory and
administrative agreement for the Fund, the Board evaluated the nature, extent and quality of services provided to the Fund by the Adviser.
The Board considered the Adviser’s management
capabilities and investment processes in light of the types of investments held by the Fund, including the education, experience and number of investment professionals and other personnel who provide portfolio management, investment research, and
similar services to the Fund, including recent changes to such personnel. In particular, the Board considered the abilities and experience of the Adviser’s investment professionals in analyzing special considerations relevant to investing in
senior floating rate loans. In this regard, the Board considered the experience of the Adviser’s large group of bank loan investment professionals and other personnel who manage other accounts, including other Eaton Vance Funds, that invest in
senior floating rate loans. The Board also considered information regarding the management of the Fund’s portfolio in the context of the target term structure and noted the Adviser’s experience with this structure. The Board also took
into account the resources dedicated to portfolio management and other services, the compensation methods of the Adviser and other factors, including the reputation and resources of the Adviser to recruit and retain highly qualified research,
advisory and supervisory investment professionals. In addition, the Board considered the time and attention devoted to the Eaton Vance Funds, including the Fund, by senior management, as well as the infrastructure, operational capabilities and
support staff in place to assist in the portfolio management and operations of the Fund, including the provision of administrative services. The Board also considered the business-related and other risks to which the Adviser or its affiliates may be
subject in managing the Fund. The Board considered the deep experience of the Adviser and its affiliates with managing and operating funds organized as exchange-listed closed-end funds, such as the Fund. In this regard, the Board considered, among
other things, the Adviser’s and its affiliates’ experience with implementing leverage arrangements, monitoring and assessing trading price discounts and premiums and adhering to the requirements of securities exchanges.
The Board considered the compliance programs of the Adviser and
relevant affiliates thereof. The Board considered compliance and reporting matters regarding, among other things, personal trading by investment professionals, disclosure of portfolio holdings, portfolio valuation, business continuity and the
allocation of investment opportunities. The Board also considered the responses of the Adviser and its affiliates to requests in recent years from regulatory authorities, such as the Securities and Exchange Commission and the Financial Industry
Regulatory Authority.
The Board considered other
administrative services provided or overseen by Eaton Vance Management and its affiliates, including transfer agency and accounting services. The Board evaluated the benefits to shareholders of investing in a fund that is a part of a large fund
complex offering exposure to a variety of asset classes and investment disciplines.
After consideration of the foregoing factors, among others, the
Board concluded that the nature, extent and quality of services provided by the Adviser, taken as a whole, are appropriate and consistent with the terms of the investment advisory and administrative agreement.
Fund Performance
The Board compared the Fund’s investment performance to
that of comparable funds identified by an independent data provider (the peer group), as well as an appropriate benchmark index. The Board’s review included comparative performance data with respect to the Fund for the one- and three-year
periods ended December 31, 2021. In this regard, the Board noted that the performance of the Fund was consistent with the median performance of the Fund’s peer group for the three-year period. The Board also noted that the performance of the
Fund was higher than its benchmark index for the three-year period. The Board concluded that the performance of the Fund was satisfactory.
Management Fees and Expenses
The Board considered contractual fee rates payable by the Fund
for advisory and administrative services (referred to collectively as “management fees”). As part of its review, the Board considered the Fund’s management fees and total expense ratio for the one-year period ended December 31,
2021, as compared to those of comparable funds, before and after giving effect to any undertaking to waive fees or reimburse expenses. The Board also received and considered information about the services offered and the fee rates charged by the
Adviser to other types of accounts with investment objectives and strategies that are substantially similar to and/or managed in a similar investment style as the Fund. In this regard, the Board received information about the differences in the
nature and scope of services the Adviser provides to the Fund as compared to other types of accounts and the material differences in compliance, reporting and other legal burdens and risks to the Adviser as between the Fund and other types of
accounts. The Board also considered factors that had an impact on the Fund’s total expense ratio relative to comparable funds.
After considering the foregoing information, and in light of
the nature, extent and quality of the services provided by the Adviser, the Board concluded that the management fees charged for advisory and related services are reasonable.
Profitability and “Fall-Out” Benefits
The Board considered the level of profits realized by the
Adviser and relevant affiliates thereof in providing investment advisory and administrative services to the Fund and to all Eaton Vance Funds as a group. The Board considered the level of profits realized without regard to marketing support or other
payments by the Adviser and its affiliates to third parties in respect of distribution or other services.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Board of
Trustees’ Contract Approval — continued
The
Board concluded that, in light of the foregoing factors and the nature, extent and quality of the services rendered, the profits realized by the Adviser and its affiliates are deemed not to be excessive.
The Board also considered direct or indirect fall-out benefits
received by the Adviser and its affiliates in connection with their respective relationships with the Fund, including the benefits of research services that may be available to the Adviser as a result of securities transactions effected for the Fund
and other investment advisory clients.
Economies of
Scale
In reviewing management fees and profitability, the
Board also considered the extent to which the Adviser and its affiliates, on the one hand, and the Fund, on the other hand, can expect to realize benefits from economies of scale as the assets of the Fund increase. The Board acknowledged the
difficulty in accurately measuring the benefits resulting from economies of scale, if any, with respect to the management of any specific fund or group of funds. The Board reviewed data summarizing the increases and decreases in the assets of the
Fund and of all Eaton Vance Funds as a group over various time periods, and evaluated the extent to which the total expense ratio of the Fund and the profitability of the Adviser and its affiliates may have been affected by such increases or
decreases. Based upon the foregoing, the Board concluded that the Fund currently shares in the benefits from economies of scale, if any, when they are realized by the Adviser. The Board also considered the fact that the Fund is not continuously
offered and that the Fund’s assets are not expected to increase materially in the foreseeable future. Accordingly, the Board did not find that the implementation of breakpoints in the advisory fee schedule is warranted at this time.
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Management and
Organization
Fund
Management. The Board of Trustees of the Fund (the “Board”) is responsible for the overall management and supervision of the affairs of the Fund. The Board members and officers of the Fund are listed
below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. Each Trustee holds office until the annual meeting for the year in which his or her term expires and until his or her
successor is elected and qualified, subject to a prior death, resignation, retirement, disqualification or removal. Under the terms of the Fund’s current Trustee retirement policy, an Independent Trustee must retire and resign as a Trustee on
the earlier of: (i) the first day of July following his or her 74th birthday; or (ii), with limited exception, December 31st of the 20th year in which he or she has served as a Trustee. However, if such retirement and resignation would cause the
Fund to be out of compliance with Section 16 of the 1940 Act or any other regulations or guidance of the Securities and Exchange Commission, then such retirement and resignation will not become effective until such time as action has been taken for
the Fund to be in compliance therewith. The “noninterested Trustees” consist of those Trustees who are not “interested persons” of the Fund, as that term is defined under the 1940 Act. The business address of each Board
member and officer is Two International Place, Boston, Massachusetts 02110. As used below, “BMR” refers to Boston Management and Research, “EVC” refers to Eaton Vance Corp., “EV” refers to EV LLC,
“EVM” refers to Eaton Vance Management and “EVD” refers to Eaton Vance Distributors, Inc. EV is the trustee of each of EVM and BMR. Effective March 1, 2021, each of EVM, BMR, EVD and EV are indirect, wholly-owned subsidiaries
of Morgan Stanley. Each officer affiliated with EVM may hold a position with other EVM affiliates that is comparable to his or her position with EVM listed below. Each Trustee oversees 137 funds (with the exception of Ms. Wiser who oversees 136
funds) in the Eaton Vance fund complex (including both funds and portfolios in a hub and spoke structure).
| Name
and Year of Birth |
Fund
Position(s) |
Length
of Service |
Principal
Occupation(s) and Other Directorships
During Past Five Years and Other Relevant Experience |
| Interested Trustee
|
Thomas
E. Faust Jr.
1958 |
Class
I
Trustee |
Until
2024.
3 years.
Since 2007. |
Chairman
of Morgan Stanley Investment Management, Inc. (MSIM), member of the Board of Managers and President of EV, Chief Executive Officer of EVM and BMR, and Director of EVD. Formerly, Chairman, Chief Executive Officer and President of EVC. Mr. Faust is
an interested person because of his positions with MSIM, BMR, EVM, EVD, and EV, which are affiliates of the Fund, and his former position with EVC, which was an affiliate of the Fund prior to March 1, 2021.
Other
Directorships. Formerly, Director of EVC (2007-2021) and Hexavest Inc. (investment management firm) (2012-2021). |
| Noninterested Trustees
|
Mark
R. Fetting
1954 |
Class
I
Trustee |
Until
2024.
3 years.
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 |
Class
II
Trustee |
Until
2025.
3 years.
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 Class I
Trustee |
Until
2024.
3 years.
Chairperson of
the Board since
2021 and Trustee
since 2014. |
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. |
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Management and
Organization — continued
| Name
and Year of Birth |
Fund
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 |
Class
II
Trustee |
Until
2025.
3 years.
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 Groupon, Inc. (e-commerce provider) (since April 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). |
Keith
Quinton
1958 |
Class
I
Trustee |
Until
2024.
3 years.
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 |
Class
III
Trustee |
Until
2023.
3 years.
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 |
Class
III
Trustee |
Until
2023.
3 years.
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. Director of Kairos Acquisition Corp. (insurance/InsurTech acquisition
company) (since 2021). |
Scott
E. Wennerholm
1959 |
Class
III
Trustee |
Until
2023.
3 years.
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(1)
1967 |
Class
II
Trustee |
Until
2025.
3 years.
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 |
Fund
Position(s) |
Length
of Service |
Principal
Occupation(s)
During Past Five Years |
| Principal
Officers who are not Trustees |
Eric
A. Stein
1980 |
President
|
Since
2020 |
Vice
President and Chief Investment Officer, Fixed Income of EVM and BMR. Prior to November 1, 2020, Mr. Stein was a co-Director of Eaton Vance’s Global Income Investments. Also Vice President of Calvert Research and Management (“CRM”).
|
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. |
Eaton Vance
Floating-Rate 2022 Target Term Trust
June 30, 2022
Management and
Organization — continued
| Name
and Year of Birth |
Fund
Position(s) |
Length
of Service |
Principal
Occupation(s)
During Past Five Years |
| Principal
Officers who are not Trustees (continued) |
Jill
R. Damon
1984 |
Secretary
|
Since
2022 |
Vice
President of EVM and BMR since 2017. Formerly, associate at Dechert LLP (2009-2017). |
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).
|
(1) Ms. Wiser began serving as a Trustee effective April 4, 2022.
| 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. |
Potential Conflicts of Interest
As a diversified global financial services firm, Morgan Stanley
engages in a broad spectrum of activities, including financial advisory services, investment management activities, lending, commercial banking, sponsoring and managing private investment funds, engaging in broker-dealer transactions and principal
securities, commodities and foreign exchange transactions, research publication and other activities. In the ordinary course of its business, Morgan Stanley is a full-service investment banking and financial services firm and therefore engages in
activities where Morgan Stanley’s interests or the interests of its clients may conflict with the interests of a Fund or Portfolio, if applicable, (collectively for the purposes of this section, “Fund” or “Funds”).
Morgan Stanley advises clients and sponsors, manages or advises other investment funds and investment programs, accounts and businesses (collectively, together with the Morgan Stanley funds, any new or successor funds, programs, accounts or
businesses (other than funds, programs accounts or businesses sponsored, managed, or advised by former direct or indirect subsidiaries of Eaton Vance Corp. ("Eaton Vance Investment Accounts")), the "MS Investment Accounts, and, together with the
Eaton Vance Investment Accounts, the "Affiliated Investment Accounts") with a wide variety of investment objectives that in some instances may overlap or conflict with a Fund's investment objectives and present conflicts of interest. In addition,
Morgan Stanley or the investment adviser may also from time to time create new or successor Affiliated Investment Accounts that may compete with a Fund and present similar conflicts of interest. The discussion below enumerates certain actual,
apparent and potential conflicts of interest. There is no assurance that conflicts of interest will be resolved in favor of Fund shareholders and, in fact, they may not be. Conflicts of interest not described below may also exist.
The discussions below with respect to actual, apparent and
potential conflicts of interest also may be applicable to or arise from the MS Investment Accounts whether or not specifically identified.
Material Non-public and Other Information. It is expected that confidential or material non-public information regarding an investment or potential investment opportunity may become available to the investment adviser. If such information becomes available, the
investment adviser may be precluded (including by applicable law or internal policies or procedures) from pursuing an investment or disposition opportunity with respect to such investment or investment opportunity.
The investment adviser may also from time to time be subject to
contractual ‘‘stand-still’’ obligations and/or confidentiality obligations that may restrict its ability to trade in certain investments on a Fund’s behalf. In addition, the investment adviser may be precluded from
disclosing such information to an investment team, even in circumstances in which the information would be beneficial if disclosed. Therefore, the investment team may not be provided access to material non-public information in the possession of
Morgan Stanley that might be relevant to an investment decision to be made on behalf of a Fund, and the investment team may initiate a transaction or sell an investment that, if such information had been known to it, may not have been undertaken. In
addition, certain members of the investment team may be recused from certain investment-related discussions so that such members do not receive information that would limit their ability to perform functions of their employment with the investment
adviser or its affiliates unrelated to that of a Fund. Furthermore, access to certain parts of Morgan Stanley may be subject to third party confidentiality obligations and to information barriers established by Morgan Stanley in order to manage
potential conflicts of interest and regulatory restrictions, including without limitation joint transaction restrictions pursuant to the 1940 Act. Accordingly, the investment adviser’s ability to source investments from other business units
within Morgan Stanley may be limited and there can be no assurance that the investment adviser will be able to source any investments from any one or more parts of the Morgan Stanley network.
The investment adviser may restrict its investment decisions
and activities on behalf of the Funds in various circumstances, including because of applicable regulatory requirements or information held by the investment adviser or Morgan Stanley. The investment adviser might not engage in transactions or other
activities for, or enforce certain rights in favor of, a Fund due to Morgan Stanley’s activities outside the Funds. In instances where trading of an investment is restricted, the investment adviser may not be able to purchase or sell such
investment on behalf of a Fund, resulting in the Fund’s inability to participate in certain desirable transactions. This inability to buy or sell an investment could have an adverse effect on a Fund’s portfolio due to, among other
things, changes in an investment’s value during the period its trading is restricted. Also, in situations where the investment adviser is required to aggregate its positions with those of other Morgan Stanley business units for position limit
calculations, the investment adviser may have to refrain from making investments due to the positions held by other Morgan Stanley business units or their clients. There may be other situations where the investment adviser refrains from making an
investment due to additional disclosure obligations, regulatory requirements, policies, and reputational risk, or the investment adviser may limit purchases or sales of securities in respect of which Morgan Stanley is engaged in an underwriting or
other distribution capacity.
Morgan Stanley has
established certain information barriers and other policies to address the sharing of information between different businesses within Morgan Stanley. As a result of information barriers, the investment adviser generally will not have access, or will
have limited access, to certain information and personnel in other areas of Morgan Stanley and generally will not manage the Funds with the benefit of the information held by such other areas. Morgan Stanley, due to its access to and knowledge of
funds, markets and securities based on its prime brokerage and other businesses, may make decisions based on information or take (or refrain from taking) actions with respect to interests in investments of the kind held (directly or indirectly) by
the Funds in a manner that may be adverse to the Funds, and will not have any obligation or other duty to share information with the investment adviser.
In limited circumstances, however, including for purposes of
managing business and reputational risk, and subject to policies and procedures and any applicable regulations, Morgan Stanley personnel, including personnel of the investment adviser, on one side of an information barrier may have access to
information and personnel on the other side of the information barrier through “wall crossings.” The investment adviser faces conflicts of interest in determining whether to engage in such wall crossings. Information obtained in
connection with such wall crossings may limit or restrict the ability of the investment adviser to engage in or otherwise effect transactions on behalf of the Funds (including purchasing or selling securities that the investment adviser may
otherwise have purchased or sold for a Fund in the absence of a wall crossing). In managing conflicts of interest that arise because of the foregoing, the investment adviser generally will be subject to fiduciary requirements. The investment adviser
may also implement internal information
Potential Conflicts of
Interest — continued
barriers or ethical
walls, and the conflicts described herein with respect to information barriers and otherwise with respect to Morgan Stanley and the investment adviser will also apply internally within the investment adviser. As a result, a Fund may not be permitted
to transact in (e.g., dispose of a security in whole or in part) during periods when it otherwise would have been able to do so, which could adversely affect a Fund. Other investors in the security that are not subject to such restrictions may be
able to transact in the security during such periods. There may also be circumstances in which, as a result of information held by certain portfolio management teams in the investment adviser, the investment adviser limits an activity or transaction
for a Fund, including if the Fund is managed by a portfolio management team other than the team holding such information.
Investments by Morgan Stanley and its Affiliated Investment
Accounts. In serving in multiple capacities to Affiliated Investment Accounts, Morgan Stanley, including the investment adviser and its investment teams, may have obligations to other clients or investors in
Affiliated Investment Accounts, the fulfillment of which may not be in the best interests of a Fund or its shareholders. A Fund’s investment objectives may overlap with the investment objectives of certain Affiliated Investment Accounts. As a
result, the members of an investment team may face conflicts in the allocation of investment opportunities among a Fund and other investment funds, programs, accounts and businesses advised by or affiliated with the investment adviser. Certain
Affiliated Investment Accounts may provide for higher management or incentive fees or greater expense reimbursements or overhead allocations, all of which may contribute to this conflict of interest and create an incentive for the investment adviser
to favor such other accounts.
Morgan Stanley
currently invests and plans to continue to invest on its own behalf and on behalf of its Affiliated Investment Accounts in a wide variety of investment opportunities globally. Morgan Stanley and its Affiliated Investment Accounts, to the extent
consistent with applicable law and policies and procedures, will be permitted to invest in investment opportunities without making such opportunities available to a Fund beforehand. Subject to the foregoing, Morgan Stanley may offer investments that
fall into the investment objectives of an Affiliated Investment Account to such account or make such investment on its own behalf, even though such investment also falls within a Fund’s investment objectives. A Fund may invest in opportunities
that Morgan Stanley and/or one or more Affiliated Investment Accounts has declined, and vice versa. All of the foregoing may reduce the number of investment opportunities available to a Fund and may create conflicts of interest in allocating
investment opportunities. Investors should note that the conflicts inherent in making such allocation decisions may not always be resolved to a Fund’s advantage. There can be no assurance that a Fund will have an opportunity to participate in
certain opportunities that fall within their investment objectives.
To seek to reduce potential conflicts of interest and to
attempt to allocate such investment opportunities in a fair and equitable manner, the investment adviser has implemented allocation policies and procedures. These policies and procedures are intended to give all clients of the investment adviser,
including the Funds, fair access to investment opportunities consistent with the requirements of organizational documents, investment strategies, applicable laws and regulations, and the fiduciary duties of the investment adviser. Each client of the
investment adviser that is subject to the allocation policies and procedures, including each Fund, is assigned an investment team and portfolio manager(s) by the investment adviser. The investment team and portfolio managers review investment
opportunities and will decide with respect to the allocation of each opportunity considering various factors and in accordance with the allocation policies and procedures. The allocation policies and procedures are subject to change. Investors
should note that the conflicts inherent in making such allocation decisions may not always be resolved to the advantage of a Fund.
It is possible that Morgan Stanley or an Affiliated Investment
Account, including another Eaton Vance fund, will invest in or advise a company that is or becomes a competitor of a company of which a Fund holds an investment. Such investment could create a conflict between the Fund, on the one hand, and Morgan
Stanley or the Affiliated Investment Account, on the other hand. In such a situation, Morgan Stanley may also have a conflict in the allocation of its own resources to the portfolio investment. Furthermore, certain Affiliated Investment Accounts
will be focused primarily on investing in other funds which may have strategies that overlap and/or directly conflict and compete with a Fund.
In addition, certain investment professionals who are involved
in a Fund’s activities remain responsible for the investment activities of other Affiliated Investment Accounts managed by the investment adviser and its affiliates, and they will devote time to the management of such investments and other
newly created Affiliated Investment Accounts (whether in the form of funds, separate accounts or other vehicles), as well as their own investments. In addition, in connection with the management of investments for other Affiliated Investment
Accounts, members of Morgan Stanley and its affiliates may serve on the boards of directors of or advise companies which may compete with a Fund’s portfolio investments. Moreover, these Affiliated Investment Accounts managed by Morgan Stanley
and its affiliates may pursue investment opportunities that may also be suitable for a Fund.
It should be noted that Morgan Stanley may, directly or
indirectly, make large investments in certain of its Affiliated Investment Accounts, and accordingly Morgan Stanley’s investment in a Fund may not be a determining factor in the outcome of any of the foregoing conflicts. Nothing herein
restricts or in any way limits the activities of Morgan Stanley, including its ability to buy or sell interests in, or provide financing to, equity and/or debt instruments, funds or portfolio companies, for its own accounts or for the accounts of
Affiliated Investment Accounts or other investment funds or clients in accordance with applicable law.
Different clients of the investment adviser, including a Fund,
may invest in different classes of securities of the same issuer, depending on the respective clients’ investment objectives and policies. As a result, the investment adviser and its affiliates, at times, will seek to satisfy fiduciary
obligations to certain clients owning one class of securities of a particular issuer by pursuing or enforcing rights on behalf of those clients with respect to such class of securities, and those activities may have an adverse effect on another
client which owns a different class of securities of such issuer. For example, if one client holds debt securities of an issuer and another client holds equity securities of the same issuer, if the issuer experiences financial or operational
challenges, the investment adviser and its affiliates may seek a liquidation of the issuer on behalf of the client that holds the debt securities, whereas the client holding the
Potential Conflicts of
Interest — continued
equity securities may
benefit from a reorganization of the issuer. Thus, in such situations, the actions taken by the investment adviser or its affiliates on behalf of one client can negatively impact securities held by another client. These conflicts also exist as
between the investment adviser’s clients, including the Funds, and the Affiliated Investment Accounts managed by Morgan Stanley.
The investment adviser and its affiliates may give advice and
recommend securities to other clients which may differ from advice given to, or securities recommended or bought for, a Fund even though such other clients’ investment objectives may be similar to those of the Fund.
The investment adviser and its affiliates manage long and short
portfolios. The simultaneous management of long and short portfolios creates conflicts of interest in portfolio management and trading in that opposite directional positions may be taken in client accounts, including client accounts managed by the
same investment team, and creates risks such as: (i) the risk that short sale activity could adversely affect the market value of long positions in one or more portfolios (and vice versa) and (ii) the risks associated with the trading desk receiving
opposing orders in the same security simultaneously. The investment adviser and its affiliates have adopted policies and procedures that are reasonably designed to mitigate these conflicts. In certain circumstances, the investment adviser invests on
behalf of itself in securities and other instruments that would be appropriate for, held by, or may fall within the investment guidelines of its clients, including a Fund. At times, the investment adviser may give advice or take action for its own
accounts that differs from, conflicts with, or is adverse to advice given or action taken for any client.
From time to time, conflicts also arise due to the fact that
certain securities or instruments may be held in some client accounts, including a Fund, but not in others, or that client accounts may have different levels of holdings in certain securities or instruments. In addition, due to differences in the
investment strategies or restrictions among client accounts, the investment adviser may take action with respect to one account that differs from the action taken with respect to another account. In some cases, a client account may compensate the
investment adviser based on the performance of the securities held by that account. The existence of such a performance based fee may create additional conflicts of interest for the investment adviser in the allocation of management time, resources
and investment opportunities. The investment adviser has adopted several policies and procedures designed to address these potential conflicts including a code of ethics and policies that govern the investment adviser’s trading practices,
including, among other things, the aggregation and allocation of trades among clients, brokerage allocations, cross trades and best execution.
In addition, at times an investment adviser investment team
will give advice or take action with respect to the investments of one or more clients that is not given or taken with respect to other clients with similar investment programs, objectives, and strategies. Accordingly, clients with similar
strategies will not always hold the same securities or instruments or achieve the same performance. The investment adviser’s investment teams also advise clients with conflicting programs, objectives or strategies. These conflicts also exist
as between the investment adviser’s clients, including the Funds, and the Affiliated Investment Accounts managed by Morgan Stanley.
The investment adviser maintains separate trading desks by
investment team and generally based on asset class, including two trading desks trading equity securities. These trading desks operate independently of one another. The two equity trading desks do not share information. The separate equity trading
desks may result in one desk competing against the other desk when implementing buy and sell transactions, possibly causing certain accounts to pay more or receive less for a security than other accounts. In addition, Morgan Stanley and its
affiliates maintain separate trading desks that operate independently of each other and do not share trading information with the investment adviser. These Morgan Stanley and affiliate trading desks may compete against the investment adviser trading
desks when implementing buy and sell transactions, possibly causing certain Affiliated Investment Accounts to pay more or receive less for a security than other Affiliated Investment Accounts.
Investments by Separate Investment Departments. The entities and individuals that provide investment-related services for the Fund and certain other Eaton Vance Investment Accounts (the “Eaton Vance Investment Department”) may be different from the
entities and individuals that provide investment-related services to MS Investment Accounts (the “MS Investment Department and, together with the Eaton Vance Investment Department, the “Investment Departments”). Although Morgan
Stanley has implemented information barriers between the Investment Departments in accordance with internal policies and procedures, each Investment Department may engage in discussions and share information and resources with the other Investment
Department on certain investment-related matters. The sharing of information and resources between the Investment Departments is designed to further increase the knowledge and effectiveness of each Investment Department. Because each Investment
Department generally makes investment decisions and executes trades independently of the other, the quality and price of execution, and the performance of investments and accounts, can be expected to vary. In addition, each Investment Department may
use different trading systems and technology and may employ differing investment and trading strategies. As a result, a MS Investment Account could trade in advance of the Fund (and vice versa), might complete trades more quickly and efficiently
than the Fund, and/or achieve different execution than the Fund on the same or similar investments made contemporaneously, even when the Investment Departments shared research and viewpoints that led to that investment decision. Any sharing of
information or resources between the Investment Department servicing the Fund and the MS Investment Department may result, from time to time, in the Fund simultaneously or contemporaneously seeking to engage in the same or similar transactions as an
account serviced by the other Investment Department and for which there are limited buyers or sellers on specific securities, which could result in less favorable execution for the Fund than such account. The Eaton Vance Investment Department will
not knowingly or intentionally cause the Fund to engage in a cross trade with an account serviced by the MS Investment Department, however, subject to applicable law and internal policies and procedures, the Fund may conduct cross trades with other
accounts serviced by the Eaton Vance Investment Department. Although the Eaton Vance Investment Department may aggregate the Fund’s trades with trades of other accounts serviced by the Eaton Vance Investment Department, subject to applicable
law and internal policies and procedures, there will be no aggregation or coordination of trades with accounts serviced by the MS Investment Department, even when both Investment Departments are seeking to acquire or dispose of the same investments
contemporaneously.
Potential Conflicts of
Interest — continued
Payments
to Broker-Dealers and Other Financial Intermediaries. The investment adviser and/or EVD may pay compensation, out of their own funds and not as an expense of the Funds, to certain financial intermediaries (which may
include affiliates of the investment adviser and EVD), including recordkeepers and administrators of various deferred compensation plans, in connection with the sale, distribution, marketing and retention of shares of the Funds and/or shareholder
servicing. For example, the investment adviser or EVD may pay additional compensation to a financial intermediary for, among other things, promoting the sale and distribution of Fund shares, providing access to various programs, mutual fund
platforms or preferred or recommended mutual fund lists that may be offered by a financial intermediary, granting EVD access to a financial intermediary’s financial advisors and consultants, providing assistance in the ongoing education and
training of a financial intermediary’s financial personnel, furnishing marketing support, maintaining share balances and/or for sub-accounting, recordkeeping, administrative, shareholder or transaction processing services. Such payments are in
addition to any distribution fees, shareholder servicing fees and/or transfer agency fees that may be payable by the Funds. The additional payments may be based on various factors, including level of sales (based on gross or net sales or some
specified minimum sales or some other similar criteria related to sales of the Funds and/or some or all other Eaton Vance funds), amount of assets invested by the financial intermediary’s customers (which could include current or aged assets
of the Funds and/or some or all other Eaton Vance funds), a Fund’s advisory fee, some other agreed upon amount or other measures as determined from time to time by the investment adviser and/or EVD. The amount of these payments may be
different for different financial intermediaries.
The prospect of receiving, or the receipt of, additional
compensation, as described above, by financial intermediaries may provide such financial intermediaries and their financial advisors and other salespersons with an incentive to favor sales of shares of the Funds over other investment options with
respect to which these financial intermediaries do not receive additional compensation (or receive lower levels of additional compensation). These payment arrangements, however, will not change the price that an investor pays for shares of the Funds
or the amount that the Funds receive to invest on behalf of an investor. Investors may wish to take such payment arrangements into account when considering and evaluating any recommendations relating to Fund shares and should review carefully any
disclosures provided by financial intermediaries as to their compensation.
Morgan Stanley Trading and Principal Investing Activities. Notwithstanding anything to the contrary herein, Morgan Stanley will generally conduct its sales and trading businesses, publish research and analysis, and render investment advice without regard for a Fund’s
holdings, although these activities could have an adverse impact on the value of one or more of the Fund’s investments, or could cause Morgan Stanley to have an interest in one or more portfolio investments that is different from, and
potentially adverse to that of a Fund. Furthermore, from time to time, the investment adviser or its affiliates may invest “seed” capital in a Fund, typically to enable the Fund to commence investment operations and/or achieve sufficient
scale. The investment adviser and its affiliates may hedge such seed capital exposure by investing in derivatives or other instruments expected to produce offsetting exposure. Such hedging transactions, if any, would occur outside of a
Fund.
Morgan Stanley’s sales and trading,
financing and principal investing businesses (whether or not specifically identified as such, and including Morgan Stanley’s trading and principal investing businesses) will not be required to offer any investment opportunities to a Fund.
These businesses may encompass, among other things, principal trading activities as well as principal investing.
Morgan Stanley’s sales and trading, financing and
principal investing businesses have acquired or invested in, and in the future may acquire or invest in, minority and/or majority control positions in equity or debt instruments of diverse public and/or private companies. Such activities may put
Morgan Stanley in a position to exercise contractual, voting or creditor rights, or management or other control with respect to securities or loans of portfolio investments or other issuers, and in these instances Morgan Stanley may, in its
discretion and subject to applicable law, act to protect its own interests or interests of clients, and not a Fund’s interests.
Subject to the limitations of applicable law, a Fund may
purchase from or sell assets to, or make investments in, companies in which Morgan Stanley has or may acquire an interest, including as an owner, creditor or counterparty.
Morgan Stanley’s Investment Banking and Other Commercial
Activities. Morgan Stanley advises clients on a variety of mergers, acquisitions, restructuring, bankruptcy and financing transactions. Morgan Stanley may act as an advisor to clients, including other investment
funds that may compete with a Fund and with respect to investments that a Fund may hold. Morgan Stanley may give advice and take action with respect to any of its clients or proprietary accounts that may differ from the advice given, or may involve
an action of a different timing or nature than the action taken, by a Fund. Morgan Stanley may give advice and provide recommendations to persons competing with a Fund and/or any of a Fund’s investments that are contrary to the Fund’s
best interests and/or the best interests of any of its investments.
Morgan Stanley could be engaged in financial advising, whether
on the buy-side or sell-side, or in financing or lending assignments that could result in Morgan Stanley’s determining in its discretion or being required to act exclusively on behalf of one or more third parties, which could limit a
Fund’s ability to transact with respect to one or more existing or potential investments. Morgan Stanley may have relationships with third-party funds, companies or investors who may have invested in or may look to invest in portfolio
companies, and there could be conflicts between a Fund’s best interests, on the one hand, and the interests of a Morgan Stanley client or counterparty, on the other hand.
To the extent that Morgan Stanley advises creditor or debtor
companies in the financial restructuring of companies either prior to or after filing for protection under Chapter 11 of the U.S. Bankruptcy Code or similar laws in other jurisdictions, the investment adviser’s flexibility in making
investments in such restructurings on a Fund’s behalf may be limited. Morgan Stanley could provide investment banking services to competitors of portfolio companies, as well as to private equity and/or private credit funds; such activities may
present Morgan Stanley with a conflict of interest vis-a-vis a Fund’s investment and may also result in a conflict in respect of the allocation of investment banking resources to portfolio companies.
Potential Conflicts of
Interest — continued
To the
extent permitted by applicable law, Morgan Stanley may provide a broad range of financial services to companies in which a Fund invests, including strategic and financial advisory services, interim acquisition financing and other lending and
underwriting or placement of securities, and Morgan Stanley generally will be paid fees (that may include warrants or other securities) for such services. Morgan Stanley will not share any of the foregoing interest, fees and other compensation
received by it (including, for the avoidance of doubt, amounts received by the investment adviser) with a Fund, and any advisory fees payable will not be reduced thereby.
Morgan Stanley may be engaged to act as a financial advisor to
a company in connection with the sale of such company, or subsidiaries or divisions thereof, may represent potential buyers of businesses through its mergers and acquisition activities and may provide lending and other related financing services in
connection with such transactions. Morgan Stanley’s compensation for such activities is usually based upon realized consideration and is usually contingent, in substantial part, upon the closing of the transaction. Under these circumstances, a
Fund may be precluded from participating in a transaction with or relating to the company being sold or participating in any financing activity related to merger or acquisition.
The involvement or presence of Morgan Stanley in the investment
banking and other commercial activities described above (or the financial markets more broadly) may restrict or otherwise limit investment opportunities that may otherwise be available to the Funds. For example, issuers may hire and compensate
Morgan Stanley to provide underwriting, financial advisory, placement agency, brokerage services or other services and, because of limitations imposed by applicable law and regulation, a Fund may be prohibited from buying or selling securities
issued by those issuers or participating in related transactions or otherwise limited in its ability to engage in such investments.
Morgan Stanley’s Marketing Activities. Morgan Stanley is engaged in the business of underwriting, syndicating, brokering, administering, servicing, arranging and advising on the distribution of a wide variety of securities and other investments in which a
Fund may invest. Subject to the restrictions of the 1940 Act, including Sections 10(f) and 17(e) thereof, a Fund may invest in transactions in which Morgan Stanley acts as underwriter, placement agent, syndicator, broker, administrative agent,
servicer, advisor, arranger or structuring agent and receives fees or other compensation from the sponsors of such products or securities. Any fees earned by Morgan Stanley in such capacity will not be shared with the investment adviser or the
Funds. Certain conflicts of interest, in addition to the receipt of fees or other compensation, would be inherent in these transactions. Moreover, the interests of one of Morgan Stanley’s clients with respect to an issuer of securities in
which a Fund has an investment may be adverse to the investment adviser’s or a Fund’s best interests. In conducting the foregoing activities, Morgan Stanley will be acting for its other clients and will have no obligation to act in the
investment adviser’s or a Fund’s best interests.
Client Relationships. Morgan
Stanley has existing and potential relationships with a significant number of corporations, institutions and individuals. In providing services to its clients, Morgan Stanley may face conflicts of interest with respect to activities recommended to
or performed for such clients, on the one hand, and a Fund, its shareholders or the entities in which the Fund invests, on the other hand. In addition, these client relationships may present conflicts of interest in determining whether to offer
certain investment opportunities to a Fund.
In
acting as principal or in providing advisory and other services to its other clients, Morgan Stanley may engage in or recommend activities with respect to a particular matter that conflict with or are different from activities engaged in or
recommended by the investment adviser on a Fund’s behalf.
Principal Investments. To the
extent permitted by applicable law, there may be situations in which a Fund’s interests may conflict with the interests of one or more general accounts of Morgan Stanley and its affiliates or accounts managed by Morgan Stanley or its
affiliates. This may occur because these accounts hold public and private debt and equity securities of many issuers which may be or become portfolio companies, or from whom portfolio companies may be acquired.
Transactions with Portfolio Companies of Affiliated Investment
Accounts. The companies in which a Fund may invest may be counterparties to or participants in agreements, transactions or other arrangements with portfolio companies or other entities of portfolio investments of
Affiliated Investment Accounts (for example, a company in which a Fund invests may retain a company in which an Affiliated Investment Account invests to provide services or may acquire an asset from such company or vice versa). Certain of these
agreements, transactions and arrangements involve fees, servicing payments, rebates and/or other benefits to Morgan Stanley or its affiliates. For example, portfolio entities may, including at the encouragement of Morgan Stanley, enter into
agreements regarding group procurement and/or vendor discounts. Morgan Stanley and its affiliates may also participate in these agreements and may realize better pricing or discounts as a result of the participation of portfolio entities. To the
extent permitted by applicable law, certain of these agreements may provide for commissions or similar payments and/or discounts or rebates to be paid to a portfolio entity of an Affiliated Investment Account, and such payments or discounts or
rebates may also be made directly to Morgan Stanley or its affiliates. Under these arrangements, a particular portfolio company or other entity may benefit to a greater degree than the other participants, and the funds, investment vehicles and
accounts (which may or may not include a Fund) that own an interest in such entity will receive a greater relative benefit from the arrangements than the Eaton Vance funds, investment vehicles or accounts that do not own an interest therein. Fees
and compensation received by portfolio companies of Affiliated Investment Accounts in relation to the foregoing will not be shared with a Fund or offset advisory fees payable.
Investments in Portfolio Investments of Other Funds. To the extent permitted by applicable law, when a Fund invests in certain companies or other entities, other funds affiliated with the investment adviser may have made or may be making an investment in such companies or
other entities. Other funds that have been or may be managed by the investment adviser may invest in the companies or other entities in which a Fund has made an
Potential Conflicts of
Interest — continued
investment. Under
such circumstances, a Fund and such other funds may have conflicts of interest (e.g., over the terms, exit strategies and related matters, including the exercise of remedies of their respective investments). If the interests held by a Fund are
different from (or take priority over) those held by such other funds, the investment adviser may be required to make a selection at the time of conflicts between the interests held by such other funds and the interests held by a Fund.
Allocation of Expenses.
Expenses may be incurred that are attributable to a Fund and one or more other Affiliated Investment Accounts (including in connection with issuers in which a Fund and such other Affiliated Investment Accounts have
overlapping investments). The allocation of such expenses among such entities raises potential conflicts of interest. The investment adviser and its affiliates intend to allocate such common expenses among a Fund and any such other Affiliated
Investment Accounts on a pro rata basis or in such other manner as the investment adviser deems to be fair and equitable or in such other manner as may be required by applicable law.
Temporary Investments. To more
efficiently invest short-term cash balances held by a Fund, the investment adviser may invest such balances on an overnight “sweep” basis in shares of one or more money market funds or other short-term vehicles. It is anticipated that
the investment adviser to these money market funds or other short-term vehicles may be the investment adviser (or an affiliate) to the extent permitted by applicable law, including Rule 12d1-1 under the 1940 Act.
Transactions with Affiliates.
The investment adviser and any investment sub-adviser might purchase securities from underwriters or placement agents in which a Morgan Stanley affiliate is a member of a syndicate or selling group, as a result of which an affiliate might benefit
from the purchase through receipt of a fee or otherwise. Neither the investment adviser nor any investment sub-adviser will purchase securities on behalf of a Fund from an affiliate that is acting as a manager of a syndicate or selling group.
Purchases by the investment adviser on behalf of a Fund from an affiliate acting as a placement agent must meet the requirements of applicable law. Furthermore, Morgan Stanley may face conflicts of interest when the Funds use service providers
affiliated with Morgan Stanley because Morgan Stanley receives greater overall fees when they are used.
General Process for Potential Conflicts. All of the transactions described above involve the potential for conflicts of interest between the investment adviser, related persons of the investment adviser and/or their clients. The Advisers Act, the 1940 Act and
ERISA impose certain requirements designed to decrease the possibility of conflicts of interest between an investment adviser and its clients. In some cases, transactions may be permitted subject to fulfillment of certain conditions. Certain other
transactions may be prohibited. In addition, the investment adviser has instituted policies and procedures designed to prevent conflicts of interest from arising and, when they do arise, to ensure that it effects transactions for clients in a manner
that is consistent with its fiduciary duty to its clients and in accordance with applicable law. The investment adviser seeks to ensure that potential or actual conflicts of interest are appropriately resolved taking into consideration the
overriding best interests of the client.
Delivery of Shareholder Documents. The Securities and Exchange Commission (SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and
shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called “householding” and it helps eliminate duplicate mailings to shareholders. American Stock Transfer & Trust Company, LLC (“AST”), the closed-end funds transfer agent, or your financial intermediary, may household the mailing of your documents
indefinitely unless you instruct AST, or your financial intermediary, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact AST or your financial
intermediary. Your instructions that householding not apply to delivery of your Eaton Vance documents will typically be effective within 30 days of receipt by AST or your financial intermediary.
Portfolio
Holdings. Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) files a schedule of portfolio holdings on Part F to Form N-PORT with the
SEC. Certain information filed on Form N-PORT may be viewed on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SEC’s website at www.sec.gov.
Proxy
Voting. From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying
Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds’ and Portfolios’ Boards. You may obtain a description of these policies and procedures and information on how the Funds or
Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge, upon request, by calling 1-800-262-1122 and by accessing the SEC’s website at www.sec.gov.
Additional Notice to Shareholders. If applicable, a Fund may also redeem or purchase its outstanding preferred shares in order to maintain compliance with regulatory requirements, borrowing or
rating agency requirements or for other purposes as it deems appropriate or necessary.
Closed-End Fund Information. Eaton Vance closed-end funds make fund performance data and certain information about portfolio characteristics available on the Eaton Vance website shortly
after the end of each month. Other information about the funds is available on the website. The funds’ net asset value per share is readily accessible on the Eaton Vance website. Portfolio holdings for the most recent month-end are also posted
to the website approximately 30 days following the end of the month. This information is available at www.eatonvance.com on the fund information pages under "Closed-End Funds & Term Trusts."
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Investment Adviser and Administrator
Eaton Vance Management
Two International Place
Boston, MA 02110
Custodian
State Street Bank and Trust Company
State Street Financial Center, One Lincoln Street
Boston, MA 02111
Transfer Agent
American Stock Transfer & Trust Company, LLC
6201 15th Avenue
Brooklyn, NY 11219
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116-5022
Fund Offices
Two International Place
Boston, MA 02110