Eaton Vance Floating Rate Income Trust

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number: 811-21574

 

 

Eaton Vance Floating-Rate Income Trust

(Exact Name of Registrant as Specified in Charter)

 

 

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

 

 

Maureen A. Gemma

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

 

 

(617) 482-8260

(Registrant’s Telephone Number)

May 31

Date of Fiscal Year End

May 31, 2016

Date of Reporting Period

 

 

 


Item 1. Reports to Stockholders


LOGO

 

 

Eaton Vance

Floating-Rate Income Trust

(EFT)

Annual Report

May 31, 2016

 

 

 

 

LOGO


 

 

Commodity Futures Trading Commission Registration. Effective December 31, 2012, the Commodity Futures Trading Commission (“CFTC”) adopted certain regulatory changes that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a prescribed level of its assets in certain CFTC-regulated instruments (including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. The Fund has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act. Accordingly, neither the Fund nor the adviser with respect to the operation of the Fund is subject to CFTC regulation. Because of its management of other strategies, the Fund’s adviser is registered with the CFTC as a commodity pool operator and a commodity trading advisor.

Fund shares are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.


Annual Report May 31, 2016

Eaton Vance

Floating-Rate Income Trust

Table of Contents

Management’s Discussion of Fund Performance

     2   

Performance

     3   

Fund Profile

     4   

Endnotes and Additional Disclosures

     5   

Financial Statements

     6   

Report of Independent Registered Public Accounting Firm

     44   

Federal Tax Information

     45   

Annual Meeting of Shareholders

     46   

Dividend Reinvestment Plan

     47   

Board of Trustees’ Contract Approval

     49   

Management and Organization

     52   

Important Notices

     55   


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Management’s Discussion of Fund Performance1

 

 

Economic and Market Conditions

The U.S. floating-rate loan market was mixed over the

12-month period ended May 31, 2016, with the S&P/LSTA Leveraged Loan Index,2 a broad barometer of the loan market, returning 0.49% during the period. Positive returns for the asset class were driven by income, with price declines during 2015 detracting from returns.

Technical conditions (i.e., the balance of market supply and demand) put downward pressure on loan prices from the beginning of the period through the end of 2015. The supply of new loans outpaced institutional inflows, while the retail side of the loan market experienced net outflows in 2015 and the first two months of 2016.

From the start of the period through February 2016, falling energy prices also negatively impacted the loan market. While the floating-rate loan market has relatively small energy exposure, ongoing negative headlines about the energy sector appeared to weigh on loan prices in general. In addition, concerns regarding a slowdown in global growth, weakness in the Chinese economy and lower commodity prices all contributed to weak technical conditions.

However, from March 2016 through the end of the period, oil prices rebounded, market sentiment improved and corporate fundamentals (which had continued to remain largely positive during the period) began to prevail. Flows into the loan market moved from negative to flat and loan prices rose.

With the U.S. economy continuing its low-growth recovery during the period, improving corporate fundamentals kept the default rate fairly benign. The loan default rate, a measure of corporate health and credit risk in the overall market, was 1.96%, well below the market’s 10-year average of 3.1%, according to Standard & Poor’s Leveraged Commentary & Data.

Fund Performance

For the 12-month period ended May 31, 2016, Eaton Vance Floating-Rate Income Trust (the Fund) had a total return of 0.46% at net asset value (NAV), performing in line with the 0.49% return of the S&P/LSTA Leveraged Loan Index (the Index).

Under normal market conditions, the Fund invests at least 80% of its total assets in senior loans of domestic and foreign borrowers that are denominated in U.S. dollars, euros, British

pounds, Swiss francs, Canadian dollars and Australian dollars. In keeping with the Fund’s secondary objective of preservation of capital, the Fund has historically tended to underweight lower-quality loans — a strategy that may help the Fund experience limited credit losses over time, but which may detract from relative performance versus the Index during periods when lower-quality issues outperform.

For the 12-month period, BBB-rated8 loans in the Index returned 3.78%, BB-rated loans in the Index returned 2.59%, B-rated loans in the Index returned 0.51%, CCC-rated loans in the Index returned –2.97%, and D-rated (defaulted) loans in the Index returned –37.96%. The negative performance of the D-rated category was due in large part to the continued decline of loans issued by Energy Future Holdings, also known as TXU, a major Index component that defaulted in 2014 but was not held by the Fund. Across the ratings tiers, the Fund’s overweight to BB-rated loans, which outperformed the Index, and underweight to CCC-rated and D-rated loans aided relative performance versus the Index.

The Fund’s employment of investment leverage6 detracted from performance versus the Index. The use of leverage has the effect of achieving additional exposure to the loan market, and thus magnifying a fund’s exposure to its underlying investments in both up and down market environments. The use of leverage hurt performance versus the Index, which does not employ leverage, as the additional income earned by utilizing leverage was less than the magnified negative contribution from declining prices. The Fund’s exposure to high-yield bonds, which underperformed the loan market during the period, also detracted from relative results versus the Index, which does not include high-yield bonds.

On a sector-level basis, the Fund’s underweight to utilities and avoidance of TXU contributed to the Fund’s relative results versus the Index as the utilities sector trailed the Index during the period. Similarly, the Fund’s overweight to financial intermediaries, a sector that outperformed the overall loan market during the period, helped the Fund’s relative performance versus the Index. In contrast, the Fund’s underweight to lodging and casinos, a sector that outperformed the Index during the period, detracted from the Fund’s relative performance versus the Index.

 

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested and include management fees and other expenses. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance 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.

 

  2  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Performance2,3

 

Portfolio Managers Scott H. Page, CFA and Ralph Hinckley, CFA

 

% Average Annual Total Returns    Inception Date      One Year      Five Years      Ten Years  

Fund at NAV

     06/29/2004         0.46      4.99      4.91

Fund at Market Price

             1.14         2.73         4.63   

S&P/LSTA Leveraged Loan Index

             0.49      3.71      4.49
           
% Premium/Discount to NAV4                                
              –7.57
           

Distributions5

                                   

Total Distributions per share for the period

            $ 0.904   

Distribution Rate at NAV

              6.05

Distribution Rate at Market Price

              6.55
           

% Total Leverage6

                                   

Borrowings

              25.86

Variable Rate Term Preferred Shares (VRTP Shares)

              8.92   

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested and include management fees and other expenses. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance 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.

 

  3  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Fund Profile

 

 

Top 10 Issuers (% of total investments)7        

Valeant Pharmaceuticals International, Inc.

    1.2

Asurion, LLC

    1.1   

Avago Technologies Cayman Ltd.

    1.1   

Community Health Systems, Inc.

    0.9   

Reynolds Group Holdings, Inc.

    0.9   

FMG Resources (August 2006) Pty. Ltd.

    0.9   

Intelsat Jackson Holdings S.A.

    0.9   

Virgin Media Investment Holdings Limited

    0.9   

Telesat Canada

    0.8   

Calpine Corp.

    0.8   

Total

    9.5
Top 10 Sectors (% of total investments)7        

Health Care

    9.9

Electronics/Electrical

    9.3   

Business Equipment and Services

    6.5   

Retailers (Except Food and Drug)

    5.2   

Chemicals and Plastics

    5.2   

Lodging and Casinos

    4.2   

Leisure Goods/Activities/Movies

    4.1   

Food Products

    3.5   

Oil and Gas

    3.2   

Insurance

    3.1   

Total

    54.2
 

 

Credit Quality (% of bonds, loans and asset-backed securities)8

 

 

LOGO

    

 

 

See Endnotes and Additional Disclosures in this report.

 

  4  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Endnotes and Additional Disclosures

 

 

1 

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.

 

2 

S&P/LSTA Leveraged Loan Index is an unmanaged index of the institutional leveraged loan market. 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.

 

3 

Performance results reflect the effects of leverage. The Fund’s performance for certain periods reflects the effects of expense reductions. Absent these reductions, performance would have been lower. Performance since inception for an index, if presented, is the performance since the Fund’s or oldest share class’ inception, as applicable.

 

4 

The shares of the Fund often trade at a discount or premium from their net asset value. The discount or premium of the Fund 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 http://eatonvance.com/closedend.

 

5 

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.

 

6 

Leverage represents the liquidation value of the Fund’s VRTP Shares and borrowings outstanding as a percentage of Fund net assets applicable to common shares plus VRTP Shares and 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.

 

7 

Excludes cash and cash equivalents.

 

8 

Credit ratings are categorized using 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” are not rated by S&P.

 

   Fund profile subject to change due to active management.
 

 

  5  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments

 

 

Senior Floating-Rate Loans — 133.2%(1)   
     
Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Aerospace and Defense — 1.8%

  

BE Aerospace, Inc.

     

Term Loan, 3.75%, Maturing December 16, 2021

      1,079      $ 1,087,669   

IAP Worldwide Services, Inc.

     

Revolving Loan, Maturing July 18, 2018(2)

      325        301,827   

Term Loan - Second Lien, 8.00%, Maturing July 18, 2019(3)

      442        353,730   

Silver II US Holdings, LLC

     

Term Loan, 4.00%, Maturing December 13, 2019

      2,190        1,998,569   

TransDigm, Inc.

     

Term Loan, 3.75%, Maturing February 28, 2020

      4,664        4,673,660   

Term Loan, 3.75%, Maturing June 4, 2021

      2,014        2,013,046   
                     
      $ 10,428,501   
                     

Air Transport — 0.5%

  

Virgin America, Inc.

     

Term Loan, 4.50%, Maturing April 4, 2019

      2,625      $ 2,633,137   
                     
      $ 2,633,137   
                     

Automotive — 2.8%

  

Allison Transmission, Inc.

     

Term Loan, 3.50%, Maturing August 23, 2019

      3      $ 2,560   

CS Intermediate Holdco 2, LLC

     

Term Loan, 4.00%, Maturing April 4, 2021

      1,186        1,188,829   

Dayco Products, LLC

     

Term Loan, 5.25%, Maturing December 12, 2019

      1,075        1,059,121   

FCA US, LLC

     

Term Loan, 3.50%, Maturing May 24, 2017

      1,982        1,985,721   

Term Loan, 3.25%, Maturing December 31, 2018

      1,338        1,340,712   

Federal-Mogul Holdings Corporation

     

Term Loan, 4.75%, Maturing April 15, 2021

      4,274        4,058,399   

Horizon Global Corporation

     

Term Loan, 7.00%, Maturing June 30, 2021

      529        530,699   

MPG Holdco I, Inc.

     

Term Loan, 3.75%, Maturing October 20, 2021

      2,312        2,314,054   

Schaeffler AG

     

Term Loan, 4.25%, Maturing May 15, 2020

      242        244,064   

TI Group Automotive Systems, LLC

     

Term Loan, 4.50%, Maturing June 30, 2022

  EUR     896        991,023   

Term Loan, 4.50%, Maturing June 30, 2022

      1,318        1,324,967   

Tower Automotive Holdings USA, LLC

     

Term Loan, 4.00%, Maturing April 23, 2020

      724        722,475   
Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Automotive (continued)

  

Visteon Corporation

     

Term Loan, 3.50%, Maturing April 9, 2021

      685      $ 684,881   
                     
      $ 16,447,505   
                     

Beverage and Tobacco — 0.4%

  

Flavors Holdings, Inc.

     

Term Loan, 6.75%, Maturing April 3, 2020

      1,426      $ 1,297,698   

Term Loan - Second Lien, 11.00%, Maturing October 3, 2021

      1,000        845,000   
                     
      $ 2,142,698   
                     

Brokerage / Securities Dealers / Investment Houses — 0.4%

  

Astro AB Borrower, Inc.

     

Term Loan, 5.50%, Maturing April 30, 2022

      1,513      $ 1,505,915   

Term Loan - Second Lien, 9.75%, Maturing March 3, 2023

      300        285,000   

Salient Partners L.P.

     

Term Loan, 7.50%, Maturing May 19, 2021

      860        816,703   
                     
      $ 2,607,618   
                     

Building and Development — 2.8%

  

ABC Supply Co., Inc.

     

Term Loan, 3.50%, Maturing April 16, 2020

      1,089      $ 1,091,221   

Auction.com, LLC

     

Term Loan, 6.00%, Maturing May 12, 2019

      1,114        1,115,142   

CPG International, Inc.

     

Term Loan, 4.75%, Maturing September 30, 2020

      1,456        1,457,899   

DTZ U.S. Borrower, LLC

     

Term Loan, 4.25%, Maturing November 4, 2021

      2,829        2,826,269   

Gates Global, Inc.

     

Term Loan, 4.25%, Maturing July 6, 2021

      5,046        4,881,963   

Headwaters, Incorporated

     

Term Loan, 4.50%, Maturing March 24, 2022

      223        224,499   

Quikrete Holdings, Inc.

     

Term Loan, 4.00%, Maturing September 28, 2020

      1,166        1,167,826   

RE/MAX International, Inc.

     

Term Loan, 4.25%, Maturing July 31, 2020

      1,606        1,591,288   

Realogy Corporation

     

Term Loan, 3.75%, Maturing March 5, 2020

      970        973,928   

Summit Materials Companies I, LLC

     

Term Loan, 4.00%, Maturing July 17, 2022

      695        697,047   
 

 

  6   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Building and Development (continued)

  

WireCo WorldGroup, Inc.

     

Term Loan, 6.00%, Maturing February 15, 2017

      627      $ 621,005   
                     
      $ 16,648,087   
                     

Business Equipment and Services — 9.7%

  

Acosta Holdco, Inc.

     

Term Loan, 4.25%, Maturing September 26, 2021

      3,669      $ 3,650,965   

AlixPartners, LLP

     

Term Loan, 4.50%, Maturing July 28, 2022

      672        674,703   

Altisource Solutions S.a.r.l.

     

Term Loan, 4.50%, Maturing December 9, 2020

      731        637,587   

Aretec Group, Inc.

     

Term Loan, 8.00%, Maturing May 25, 2023

      1,145        1,093,658   

Term Loan - Second Lien, 6.50%, (2.00% Cash, 4.50% PIK), Maturing May 23, 2021

      3,166        2,374,183   

Brickman Group Ltd., LLC

     

Term Loan, 4.00%, Maturing December 18, 2020

      904        903,592   

Brock Holdings III, Inc.

  

Term Loan, 6.00%, Maturing March 16, 2017

      1,159        1,107,405   

CCC Information Services, Inc.

     

Term Loan, 4.00%, Maturing December 20, 2019

      484        486,232   

Ceridian, LLC

     

Term Loan, 4.50%, Maturing September 15, 2020

      671        651,623   

Corporate Capital Trust, Inc.

     

Term Loan, 4.00%, Maturing May 20, 2019

      1,029        1,027,045   

CPM Holdings, Inc.

     

Term Loan, 6.00%, Maturing April 11, 2022

      298        296,075   

Crossmark Holdings, Inc.

     

Term Loan, 4.50%, Maturing December 20, 2019

      1,540        1,054,664   

Education Management, LLC

     

Term Loan, 5.50%, Maturing July 2, 2020(3)

      298        168,260   

Term Loan, 8.50%, (2.00% Cash, 6.50% PIK), Maturing July 2, 2020(3)

      539        28,888   

EIG Investors Corp.

     

Term Loan, 6.48%, Maturing November 9, 2019

      4,828        4,672,731   

Emdeon Business Services, LLC

     

Term Loan, 3.75%, Maturing November 2, 2018

      1,590        1,591,565   

Extreme Reach, Inc.

     

Term Loan, 7.25%, Maturing February 7, 2020

      1,555        1,557,605   

Garda World Security Corporation

     

Term Loan, 4.75%, Maturing November 6, 2020

  CAD     3,282        2,424,490   

Global Payments, Inc.

     

Term Loan, 3.94%, Maturing April 22, 2023

      725        733,005   
Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Business Equipment and Services (continued)

  

IG Investment Holdings, LLC

     

Term Loan, 6.00%, Maturing October 29, 2021

      1,843      $ 1,843,304   

IMS Health Incorporated

     

Term Loan, 3.50%, Maturing March 17, 2021

      2,142        2,148,587   

Information Resources, Inc.

     

Term Loan, 4.75%, Maturing September 30, 2020

      1,304        1,307,095   

ION Trading Finance Limited

     

Term Loan, 4.25%, Maturing June 10, 2021

      522        524,007   

Term Loan, 4.50%, Maturing June 10, 2021

  EUR     1,148        1,286,264   

KAR Auction Services, Inc.

     

Term Loan, 3.94%, Maturing March 11, 2021

      3,047        3,055,672   

Kronos Incorporated

     

Term Loan, 4.50%, Maturing October 30, 2019

      3,613        3,619,231   

Term Loan - Second Lien, 9.75%, Maturing April 30, 2020

      1,223        1,246,921   

MCS AMS Sub-Holdings, LLC

     

Term Loan, 7.50%, Maturing October 15, 2019

      956        888,544   

Monitronics International, Inc.

     

Term Loan, 4.25%, Maturing March 23, 2018

      592        579,468   

Term Loan, 4.50%, Maturing April 11, 2022

      743        702,591   

PGX Holdings, Inc.

     

Term Loan, 5.75%, Maturing September 29, 2020

      1,536        1,534,878   

Prime Security Services Borrower, LLC

     

Term Loan, 5.50%, Maturing May 2, 2022

      1,225        1,239,738   

Sensus USA, Inc.

     

Term Loan, 6.50%, Maturing March 16, 2023

      1,275        1,278,187   

ServiceMaster Company

     

Term Loan, 4.25%, Maturing July 1, 2021

      4,620        4,648,607   

TNS, Inc.

     

Term Loan, 5.00%, Maturing February 14, 2020

      657        652,892   

Travelport Finance (Luxembourg) S.a.r.l.

     

Term Loan, 5.75%, Maturing September 2, 2021

      1,305        1,309,830   

WASH Multifamily Laundry Systems, LLC

     

Term Loan, 4.25%, Maturing May 14, 2022

      48        47,771   

Term Loan, 4.25%, Maturing May 14, 2022

      274        272,776   

West Corporation

     

Term Loan, 3.25%, Maturing June 30, 2018

      3,357        3,358,766   
                     
      $ 56,679,405   
                     

Cable and Satellite Television — 3.5%

  

Altice US Finance I Corporation

     

Term Loan, 4.25%, Maturing December 14, 2022

      1,586      $ 1,591,134   

Charter Communications Operating, LLC

     

Term Loan, 3.50%, Maturing January 24, 2023

      2,275        2,289,219   
 

 

  7   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Cable and Satellite Television (continued)

  

MCC Iowa, LLC

     

Term Loan, 3.75%, Maturing June 30, 2021

      958      $ 960,124   

Neptune Finco Corp.

     

Term Loan, 5.00%, Maturing October 9, 2022

      4,300        4,333,325   

Numericable Group SA

     

Term Loan, 4.56%, Maturing July 29, 2022

  EUR     771        864,160   

Term Loan, 4.56%, Maturing July 31, 2022

      423        423,305   

Numericable U.S., LLC

     

Term Loan, 5.00%, Maturing January 15, 2024

      925        929,336   

Telenet International Finance S.a.r.l.

     

Term Loan, Maturing June 30, 2024(2)

      925        930,203   

Virgin Media Investment Holdings Limited

     

Term Loan, 3.65%, Maturing June 30, 2023

      2,932        2,935,877   

Term Loan, 4.25%, Maturing June 30, 2023

  GBP     1,650        2,384,051   

Ziggo B.V.

     

Term Loan, 3.75%, Maturing January 15, 2022

  EUR     424        472,330   

Term Loan, 3.75%, Maturing January 15, 2022

  EUR     659        733,187   

Term Loan, 3.75%, Maturing January 15, 2022

  EUR     1,192        1,327,081   
                     
      $ 20,173,332   
                     

Chemicals and Plastics — 7.2%

  

Allnex (Luxembourg) & Cy S.C.A.

     

Term Loan, 4.50%, Maturing October 3, 2019

      297      $ 296,782   

Allnex USA, Inc.

     

Term Loan, 4.50%, Maturing October 3, 2019

      154        153,986   

Aruba Investments, Inc.

     

Term Loan, 4.50%, Maturing February 2, 2022

      316        316,291   

Axalta Coating Systems US Holdings, Inc.

     

Term Loan, 3.75%, Maturing February 1, 2020

      3,474        3,484,374   

Chemours Company (The)

     

Term Loan, 3.75%, Maturing May 12, 2022

      1,117        1,098,874   

Emerald Performance Materials, LLC

     

Term Loan, 4.50%, Maturing August 1, 2021

      556        554,531   

Term Loan - Second Lien, 7.75%, Maturing August 1, 2022

      625        601,563   

Flint Group GmbH

     

Term Loan, 4.50%, Maturing September 7, 2021

      164        160,902   

Flint Group US, LLC

     

Term Loan, 4.50%, Maturing September 7, 2021

      993        974,981   

GCP Applied Technologies, Inc.

     

Term Loan, 5.25%, Maturing February 3, 2022

      600        603,938   

Gemini HDPE, LLC

     

Term Loan, 4.75%, Maturing August 7, 2021

      2,458        2,463,666   
Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Chemicals and Plastics (continued)

  

Huntsman International, LLC

     

Term Loan, 3.75%, Maturing October 1, 2021

      1,183      $ 1,183,757   

Term Loan, 4.25%, Maturing April 1, 2023

      575        579,672   

Ineos Finance PLC

     

Term Loan, 4.25%, Maturing March 31, 2022

  EUR     470        521,652   

Ineos US Finance, LLC

     

Term Loan, 3.75%, Maturing May 4, 2018

      4,533        4,536,506   

Term Loan, 4.25%, Maturing March 31, 2022

      767        768,085   

Kraton Polymers, LLC

     

Term Loan, 6.00%, Maturing January 6, 2022

      2,300        2,278,438   

Kronos Worldwide, Inc.

     

Term Loan, 4.00%, Maturing February 18, 2020

      319        299,390   

MacDermid, Inc.

     

Term Loan, 5.50%, Maturing June 7, 2020

      597        597,149   

Term Loan, 5.50%, Maturing June 7, 2020

      667        666,313   

Term Loan, 5.50%, Maturing June 7, 2020

      1,442        1,441,080   

Minerals Technologies, Inc.

     

Term Loan, 3.75%, Maturing May 9, 2021

      1,309        1,311,161   

Orion Engineered Carbons GmbH

     

Term Loan, 4.75%, Maturing July 25, 2021

      568        570,628   

Term Loan, 4.75%, Maturing July 25, 2021

  EUR     938        1,055,756   

OXEA Finance, LLC

     

Term Loan, 4.25%, Maturing January 15, 2020

      756        747,124   

PolyOne Corporation

     

Term Loan, 3.75%, Maturing November 11, 2022

      549        549,825   

PQ Corporation

     

Term Loan, 5.75%, Maturing November 4, 2022

      1,300        1,313,542   

SIG Combibloc US Acquisition, Inc.

     

Term Loan, 4.25%, Maturing March 13, 2022

      1,337        1,340,364   

Solenis International L.P.

     

Term Loan, 4.25%, Maturing July 31, 2021

      320        318,324   

Term Loan, 4.50%, Maturing July 31, 2021

  EUR     1,059        1,181,545   

Sonneborn Refined Products B.V.

     

Term Loan, 4.75%, Maturing December 10, 2020

      73        73,465   

Sonneborn, LLC

     

Term Loan, 4.75%, Maturing December 10, 2020

      416        416,300   

Trinseo Materials Operating S.C.A.

     

Term Loan, 4.25%, Maturing November 5, 2021

      1,836        1,841,863   

Tronox Pigments (Netherlands) B.V.

     

Term Loan, 4.50%, Maturing March 19, 2020

      3,155        3,067,671   

Univar, Inc.

     

Term Loan, 4.25%, Maturing July 1, 2022

      3,582        3,578,866   
 

 

  8   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Chemicals and Plastics (continued)

  

Zep, Inc.

     

Term Loan, 5.50%, Maturing June 27, 2022

      1,365      $ 1,370,232   
                     
      $ 42,318,596   
                     

Clothing / Textiles — 0.3%

  

Ascena Retail Group, Inc.

     

Term Loan, 5.25%, Maturing August 21, 2022

      1,791      $ 1,733,585   
                     
      $ 1,733,585   
                     

Conglomerates — 0.7%

  

Bestway UK Holdco Limited

     

Term Loan, 5.01%, Maturing October 6, 2021

  GBP     1,103      $ 1,599,912   

RGIS Services, LLC

     

Term Loan, 5.50%, Maturing October 18, 2017

      3,042        2,570,541   
                     
      $ 4,170,453   
                     

Containers and Glass Products — 3.1%

  

Berry Plastics Holding Corporation

     

Term Loan, 3.50%, Maturing February 8, 2020

      2,328      $ 2,331,969   

Term Loan, 3.75%, Maturing January 6, 2021

      680        682,217   

Term Loan, 4.00%, Maturing October 1, 2022

      1,128        1,134,031   

Hilex Poly Co., LLC

     

Term Loan, 6.00%, Maturing December 5, 2021

      3,648        3,672,283   

Libbey Glass, Inc.

     

Term Loan, 3.75%, Maturing April 9, 2021

      437        437,740   

Pelican Products, Inc.

     

Term Loan, 5.25%, Maturing April 10, 2020

      1,359        1,308,487   

Reynolds Group Holdings, Inc.

     

Term Loan, 4.50%, Maturing December 1, 2018

      3,558        3,575,990   

SIG Combibloc Purchase Co. S.a.r.l.

     

Term Loan, 4.25%, Maturing March 13, 2022

  EUR     2,178        2,444,305   

TricorBraun, Inc.

     

Term Loan, 4.00%, Maturing May 3, 2018

      643        643,890   

Verallia

     

Term Loan, 5.00%, Maturing October 29, 2022

  EUR     1,825        2,049,782   
                     
      $ 18,280,694   
                     

Cosmetics / Toiletries — 1.6%

  

Coty, Inc.

     

Term Loan, 3.75%, Maturing October 27, 2022

      950      $ 952,177   

Galleria Co.

     

Term Loan, 3.75%, Maturing January 26, 2023

      1,900        1,902,945   
Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Cosmetics / Toiletries (continued)

  

KIK Custom Products, Inc.

     

Term Loan, 6.00%, Maturing August 26, 2022

      1,741      $ 1,726,014   

Revlon Consumer Products Corporation

     

Term Loan, 4.00%, Maturing October 8, 2019

      1,273        1,275,191   

Sun Products Corporation (The)

     

Term Loan, 5.50%, Maturing March 23, 2020

      3,352        3,332,714   
                     
      $ 9,189,041   
                     

Drugs — 3.5%

  

Alkermes, Inc.

     

Term Loan, 3.50%, Maturing September 25, 2019

      411      $ 410,382   

AMAG Pharmaceuticals, Inc.

     

Term Loan, 4.75%, Maturing August 13, 2021

      1,170        1,165,613   

DPx Holdings B.V.

     

Term Loan, 4.25%, Maturing March 11, 2021

      2,753        2,719,820   

Endo Luxembourg Finance Company I S.a.r.l.

     

Term Loan, 3.75%, Maturing September 26, 2022

      2,918        2,882,780   

Horizon Pharma, Inc.

     

Term Loan, 4.50%, Maturing May 7, 2021

      1,241        1,216,976   

Mallinckrodt International Finance S.A.

     

Term Loan, 3.25%, Maturing March 19, 2021

      1,666        1,638,233   

Valeant Pharmaceuticals International, Inc.

     

Term Loan, 3.71%, Maturing October 20, 2018

      2,074        2,045,410   

Term Loan, 4.75%, Maturing December 11, 2019

      1,260        1,245,154   

Term Loan, 4.75%, Maturing August 5, 2020

      3,504        3,454,863   

Term Loan, 5.00%, Maturing April 1, 2022

      3,955        3,910,925   
                     
      $ 20,690,156   
                     

Ecological Services and Equipment — 0.7%

  

ADS Waste Holdings, Inc.

     

Term Loan, 3.75%, Maturing October 9, 2019

      2,060      $ 2,057,802   

EnergySolutions, LLC

     

Term Loan, 6.75%, Maturing May 29, 2020

      2,291        2,233,690   
                     
      $ 4,291,492   
                     

Electronics / Electrical — 13.9%

  

Answers Corporation

     

Term Loan, 6.25%, Maturing October 3, 2021

      2,200      $ 1,402,285   

Avago Technologies Cayman Ltd.

     

Term Loan, 4.25%, Maturing February 1, 2023

      9,600        9,634,666   

Campaign Monitor Finance Pty. Limited

     

Term Loan, 6.25%, Maturing March 18, 2021

      1,068        1,032,912   
 

 

  9   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Electronics / Electrical (continued)

  

CommScope, Inc.

     

Term Loan, 3.83%, Maturing December 29, 2022

      1,020      $ 1,022,850   

CompuCom Systems, Inc.

     

Term Loan, 4.25%, Maturing May 11, 2020

      1,024        694,347   

Dell International, LLC

     

Term Loan, 4.00%, Maturing April 29, 2020

      6,462        6,463,566   

Deltek, Inc.

     

Term Loan, 5.00%, Maturing June 25, 2022

      342        342,712   

Term Loan - Second Lien, 9.50%, Maturing June 25, 2023

      450        453,937   

Entegris, Inc.

     

Term Loan, 3.50%, Maturing April 30, 2021

      369        369,816   

Excelitas Technologies Corp.

     

Term Loan, 6.00%, Maturing October 31, 2020

      916        877,478   

Eze Castle Software, Inc.

     

Term Loan, 4.00%, Maturing April 6, 2020

      1,485        1,484,081   

Go Daddy Operating Company, LLC

     

Term Loan, 4.25%, Maturing May 13, 2021

      4,779        4,800,159   

Hyland Software, Inc.

     

Term Loan, 4.75%, Maturing July 1, 2022

      635        636,306   

Term Loan - Second Lien, 8.25%, Maturing July 1, 2023

      625        607,292   

Infor (US), Inc.

     

Term Loan, 3.75%, Maturing June 3, 2020

      6,723        6,610,234   

Informatica Corporation

     

Term Loan, 4.50%, Maturing August 5, 2022

      3,458        3,428,235   

Lattice Semiconductor Corporation

  

Term Loan, 5.25%, Maturing March 10, 2021

      616        605,020   

M/A-COM Technology Solutions Holdings, Inc.

     

Term Loan, 4.50%, Maturing May 7, 2021

      565        567,762   

MA FinanceCo., LLC

     

Term Loan, 4.50%, Maturing November 20, 2019

      1,103        1,105,428   

Term Loan, 5.25%, Maturing November 19, 2021

      2,057        2,066,042   

Magic Newco, LLC

     

Term Loan, 5.00%, Maturing December 12, 2018

      1,516        1,524,753   

MH Sub I, LLC

     

Term Loan, 4.75%, Maturing July 8, 2021

      1,354        1,356,472   

Microsemi Corporation

     

Term Loan, 5.25%, Maturing January 15, 2023

      1,025        1,036,459   

NXP B.V.

     

Term Loan, 3.75%, Maturing December 7, 2020

      1,029        1,034,048   

ON Semiconductor Corporation

     

Term Loan, 5.25%, Maturing March 31, 2023

      1,200        1,211,250   

Orbotech, Inc.

     

Term Loan, 5.00%, Maturing August 6, 2020

      357        355,822   
Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Electronics / Electrical (continued)

  

Renaissance Learning, Inc.

     

Term Loan, 4.50%, Maturing April 9, 2021

      2,244      $ 2,218,164   

Term Loan - Second Lien, 8.00%, Maturing April 11, 2022

      250        230,000   

Rocket Software, Inc.

     

Term Loan, 5.75%, Maturing February 8, 2018

      1,423        1,423,260   

Term Loan - Second Lien, 10.25%, Maturing February 8, 2019

      1,950        1,954,062   

RP Crown Parent, LLC

     

Term Loan, 6.00%, Maturing December 21, 2018

      6,159        5,897,638   

SGS Cayman L.P.

     

Term Loan, 6.00%, Maturing April 23, 2021

      219        218,813   

SkillSoft Corporation

     

Term Loan, 5.75%, Maturing April 28, 2021

      3,966        3,222,734   

Smart Technologies ULC

     

Term Loan, 10.50%, Maturing January 31, 2018

      564        568,156   

SS&C Technologies, Inc.

     

Term Loan, 4.01%, Maturing July 8, 2022

      2,119        2,129,752   

Term Loan, 4.02%, Maturing July 8, 2022

      291        292,777   

SunEdison Semiconductor B.V.

     

Term Loan, 6.50%, Maturing May 27, 2019

      1,952        1,907,894   

SurveyMonkey, Inc.

     

Term Loan, 6.25%, Maturing February 5, 2019

      2,317        2,282,475   

Sutherland Global Services, Inc.

     

Term Loan, 6.00%, Maturing April 23, 2021

      939        940,009   

Sybil Software, LLC

     

Term Loan, 4.25%, Maturing March 20, 2020

      1,667        1,671,110   

Vertafore, Inc.

     

Term Loan, 4.25%, Maturing October 3, 2019

      1,004        1,006,063   

Wall Street Systems Delaware, Inc.

     

Term Loan, 4.25%, Maturing April 30, 2021

      1,293        1,294,287   

Western Digital Corporation

     

Term Loan, 6.25%, Maturing April 29, 2023

      1,350        1,349,789   

Zebra Technologies Corporation

     

Term Loan, 4.75%, Maturing October 27, 2021

      2,088        2,099,913   
                     
  $ 81,430,828   
                     

Financial Intermediaries — 4.0%

  

Armor Holding II, LLC

     

Term Loan, 5.75%, Maturing June 26, 2020

      2,467      $ 2,435,695   

Term Loan - Second Lien, 10.25%, Maturing December 26, 2020

      1,425        1,389,375   

Citco Funding, LLC

     

Term Loan, 4.25%, Maturing June 29, 2018

      2,245        2,246,131   
 

 

  10   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Financial Intermediaries (continued)

  

First Data Corporation

     

Term Loan, 3.94%, Maturing September 24, 2018

      2,100      $ 2,101,531   

Term Loan, 4.19%, Maturing July 8, 2022

      850        852,808   

Grosvenor Capital Management Holdings, LLP

     

Term Loan, 3.75%, Maturing January 4, 2021

      1,229        1,221,543   

Guggenheim Partners, LLC

     

Term Loan, 4.25%, Maturing July 22, 2020

      1,467        1,474,497   

Harbourvest Partners, LLC

     

Term Loan, 3.25%, Maturing February 4, 2021

      783        776,033   

Medley, LLC

     

Term Loan, 6.50%, Maturing June 15, 2019

      540        547,869   

MIP Delaware, LLC

     

Term Loan, 4.00%, Maturing March 9, 2020

      482        482,405   

NXT Capital, Inc.

     

Term Loan, 6.25%, Maturing September 4, 2018

      147        146,985   

Term Loan, 6.25%, Maturing September 4, 2018

      718        717,640   

Term Loan, 6.25%, Maturing September 4, 2018

      804        804,375   

Ocwen Financial Corporation

     

Term Loan, 5.50%, Maturing February 15, 2018

      2,089        2,048,468   

Sesac Holdco II, LLC

     

Term Loan, 5.25%, Maturing February 8, 2019

      957        957,045   

Starwood Property Trust, Inc.

     

Term Loan, 3.50%, Maturing April 17, 2020

      291        290,273   

Walker & Dunlop, Inc.

     

Term Loan, 5.25%, Maturing December 11, 2020

      697        698,383   

Walter Investment Management Corp.

     

Term Loan, 4.75%, Maturing December 19, 2020

      4,748        4,035,426   
                     
  $ 23,226,482   
                     

Food Products — 5.0%

                   

AdvancePierre Foods, Inc.

     

Term Loan, 5.75%, Maturing July 10, 2017

      3,895      $ 3,905,739   

Term Loan, Maturing May 26,
2023(2)

      3,100        3,118,408   

Term Loan - Second Lien, 9.50%, Maturing October 10, 2017

      1,186        1,190,774   

Blue Buffalo Company Ltd.

     

Term Loan, 3.75%, Maturing August 8, 2019

      1,424        1,433,115   

Charger OpCo B.V.

     

Term Loan, 4.25%, Maturing July 2, 2022

  EUR     425        477,317   

Clearwater Seafoods Limited Partnership

     

Term Loan, 4.75%, Maturing June 26, 2019

      989        992,569   
Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Food Products (continued)

                   

Del Monte Foods, Inc.

     

Term Loan, 4.25%, Maturing February 18, 2021

      1,261      $ 1,230,285   

Term Loan - Second Lien, 8.25%, Maturing August 18, 2021

      1,500        1,129,999   

Dole Food Company, Inc.

     

Term Loan, 4.50%, Maturing November 1, 2018

      2,336        2,334,280   

High Liner Foods Incorporated

     

Term Loan, 4.25%, Maturing April 24, 2021

      896        889,213   

JBS USA, LLC

  

Term Loan, 3.75%, Maturing May 25, 2018

      969        970,811   

Term Loan, 3.75%, Maturing September 18, 2020

      1,706        1,708,383   

Term Loan, 4.00%, Maturing October 30, 2022

      748        747,807   

Maple Holdings Acquisition Corp.

     

Term Loan, 5.25%, Maturing March 3, 2023

      1,112        1,117,663   

NBTY, Inc.

     

Term Loan, 5.00%, Maturing May 5, 2023

      4,075        4,101,997   

Term Loan, 6.25%, Maturing May 5, 2023

  GBP     1,000        1,455,742   

Oak Tea, Inc.

     

Term Loan, 4.25%, Maturing July 2, 2022

      1,969        1,976,717   

Post Holdings, Inc.

     

Term Loan, 3.75%, Maturing June 2, 2021

      295        297,633   
                     
  $ 29,078,452   
                     

Food Service — 3.8%

  

1011778 B.C. Unlimited Liability Company

     

Term Loan, 3.75%, Maturing December 10, 2021

      5,179      $ 5,197,742   

Centerplate, Inc.

     

Term Loan, 4.75%, Maturing November 26, 2019

      1,100        1,066,516   

Landry’s, Inc.

     

Term Loan, 4.00%, Maturing April 24, 2018

      2,248        2,253,793   

Manitowoc Foodservice, Inc.

     

Term Loan, 5.75%, Maturing March 3, 2023

      1,428        1,441,672   

NPC International, Inc.

     

Term Loan, 4.75%, Maturing December 28, 2018

      1,695        1,697,137   

P.F. Chang’s China Bistro, Inc.

     

Term Loan, 4.25%, Maturing July 2, 2019

      448        428,381   

Seminole Hard Rock Entertainment, Inc.

     

Term Loan, 3.50%, Maturing May 14, 2020

      292        291,628   

US Foods, Inc.

     

Term Loan, 4.50%, Maturing March 31, 2019

      4,425        4,430,406   

Weight Watchers International, Inc.

     

Term Loan, 4.00%, Maturing April 2, 2020

      7,396        5,467,064   
                     
  $ 22,274,339   
                     
 

 

  11   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Food / Drug Retailers — 2.2%

  

Albertsons, LLC

     

Term Loan, 5.50%, Maturing March 21, 2019

      2,428      $ 2,432,265   

Term Loan, 5.13%, Maturing August 25, 2019

      1,410        1,412,921   

Term Loan, 5.50%, Maturing August 25, 2021

      990        993,437   

Rite Aid Corporation

     

Term Loan - Second Lien, 5.75%, Maturing August 21, 2020

      1,500        1,508,125   

Term Loan - Second Lien, 4.88%, Maturing June 21, 2021

      1,500        1,505,625   

Supervalu, Inc.

     

Term Loan, 5.50%, Maturing March 21, 2019

      4,761        4,766,567   
                     
  $ 12,618,940   
                     

Health Care — 13.9%

  

Acadia Healthcare Company, Inc.

     

Term Loan, 3.75%, Maturing February 11, 2022

      272      $ 272,920   

ADMI Corp.

     

Term Loan, 5.25%, Maturing April 30, 2022

      372        372,071   

Akorn, Inc.

  

Term Loan, 5.25%, Maturing April 16, 2021

      935        938,940   

Albany Molecular Research, Inc.

     

Term Loan, 5.75%, Maturing July 16, 2021

      771        773,053   

Alere, Inc.

     

Term Loan, 4.25%, Maturing June 18, 2022

      1,781        1,775,772   

Alliance Healthcare Services, Inc.

     

Term Loan, 4.25%, Maturing June 3, 2019

      2,288        2,219,788   

Amneal Pharmaceuticals, LLC

     

Term Loan, 4.50%, Maturing November 1, 2019

      2,334        2,332,406   

AmSurg Corp.

     

Term Loan, 3.50%, Maturing July 16, 2021

      663        665,306   

Ardent Legacy Acquisitions, Inc.

     

Term Loan, 6.50%, Maturing August 4, 2021

      1,121        1,124,824   

Auris Luxembourg III S.a.r.l.

     

Term Loan, 4.25%, Maturing January 15, 2022

      842        840,990   

BSN Medical, Inc.

     

Term Loan, 4.00%, Maturing August 28, 2019

      643        641,471   

CareCore National, LLC

     

Term Loan, 5.50%, Maturing March 5, 2021

      3,810        3,562,498   

CeramTec Acquisition Corporation

     

Term Loan, 4.25%, Maturing August 30, 2020

      36        35,990   

CHG Healthcare Services, Inc.

     

Term Loan, 4.25%, Maturing November 19, 2019

      1,289        1,292,259   
Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Health Care (continued)

  

Community Health Systems, Inc.

     

Term Loan, 3.75%, Maturing December 31, 2019

      2,653      $ 2,607,276   

Term Loan, 4.00%, Maturing January 27, 2021

      2,882        2,843,888   

Concentra, Inc.

     

Term Loan, 4.00%, Maturing June 1, 2022

      174        174,339   

Convatec, Inc.

     

Term Loan, 4.25%, Maturing June 15, 2020

      1,422        1,426,130   

CPI Buyer, LLC

     

Term Loan, 5.50%, Maturing August 18, 2021

      1,091        1,074,961   

DaVita HealthCare Partners, Inc.

     

Term Loan, 3.50%, Maturing June 24, 2021

      3,512        3,538,781   

DJO Finance, LLC

     

Term Loan, 4.25%, Maturing June 8, 2020

      2,407        2,359,430   

Envision Healthcare Corporation

     

Term Loan, 4.25%, Maturing May 25, 2018

      1,967        1,972,706   

Faenza Acquisition GmbH

     

Term Loan, 4.25%, Maturing August 30, 2020

      101        101,214   

Term Loan, 4.25%, Maturing August 30, 2020

      331        331,656   

Global Healthcare Exchange, LLC

     

Term Loan, 5.50%, Maturing August 15, 2022

      1,194        1,196,239   

Greatbatch Ltd.

     

Term Loan, 5.25%, Maturing October 27, 2022

      1,047        1,049,012   

Iasis Healthcare, LLC

     

Term Loan, 4.50%, Maturing May 3, 2018

      1,806        1,811,349   

Indivior Finance S.a.r.l.

     

Term Loan, 7.00%, Maturing December 19, 2019

      1,055        1,023,047   

inVentiv Health, Inc.

     

Term Loan, 7.75%, Maturing May 15, 2018

      2,139        2,148,708   

Term Loan, 7.75%, Maturing May 15, 2018

      2,457        2,453,844   

Jaguar Holding Company II

     

Term Loan, 4.25%, Maturing August 18, 2022

      5,214        5,228,614   

Kindred Healthcare, Inc.

     

Term Loan, 4.25%, Maturing April 9, 2021

      1,621        1,623,151   

Kinetic Concepts, Inc.

     

Term Loan, 4.50%, Maturing May 4, 2018

      5,017        5,023,185   

Knowledge Universe Education, LLC

     

Term Loan, 6.00%, Maturing August 13, 2022

      1,244        1,243,750   

LHP Hospital Group, Inc.

     

Term Loan, 9.00%, Maturing July 3, 2018

      1,905        1,895,295   

MMM Holdings, Inc.

     

Term Loan, 9.75%, Maturing December 12, 2017

      571        380,998   

MPH Acquisition Holdings LLC

     

Term Loan, Maturing May 26, 2023(2)

      2,675        2,696,400   

MSO of Puerto Rico, Inc.

     

Term Loan, 9.75%, Maturing December 12, 2017

      415        276,984   
 

 

  12   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Health Care (continued)

  

National Mentor Holdings, Inc.

     

Term Loan, 4.25%, Maturing January 31, 2021

      588      $ 589,011   

National Surgical Hospitals, Inc.

     

Term Loan, 4.50%, Maturing June 1, 2022

      1,000        995,600   

New Millennium Holdco, Inc.

     

Term Loan, 7.50%, Maturing December 21, 2020

      2,341        1,778,916   

Onex Carestream Finance L.P.

     

Term Loan, 5.00%, Maturing June 7, 2019

      3,770        3,726,397   

Opal Acquisition, Inc.

     

Term Loan, 5.00%, Maturing November 27, 2020

      2,240        1,969,066   

Ortho-Clinical Diagnostics, Inc.

     

Term Loan, 4.75%, Maturing June 30, 2021

      3,738        3,538,006   

PRA Holdings, Inc.

     

Term Loan, 4.50%, Maturing September 23, 2020

      1,103        1,109,380   

Radnet Management, Inc.

     

Term Loan, 4.29%, Maturing October 10, 2018

      2,109        2,107,529   

Select Medical Corporation

     

Term Loan, 6.00%, Maturing June 1, 2018

      1,453        1,454,379   

Sterigenics-Nordion Holdings, LLC

     

Term Loan, 4.25%, Maturing May 15, 2022

      771        771,125   

Steward Health Care System, LLC

     

Term Loan, 6.75%, Maturing April 12, 2020

      954        954,081   

Tecomet, Inc.

     

Term Loan, 5.75%, Maturing December 5, 2021

      1,259        1,202,405   
                     
      $ 81,525,140   
                     

Home Furnishings — 0.3%

  

Serta Simmons Holdings, LLC

     

Term Loan, 4.25%, Maturing October 1, 2019

      1,638      $ 1,643,919   
                     
      $ 1,643,919   
                     

Industrial Equipment — 4.6%

  

Apex Tool Group, LLC

     

Term Loan, 4.50%, Maturing January 31, 2020

      3,049      $ 3,001,211   

Blount International, Inc.

     

Term Loan, 7.25%, Maturing April 12, 2023

      1,150        1,165,812   

Delachaux S.A.

     

Term Loan, 4.50%, Maturing October 28, 2021

      460        449,847   

Doosan Infracore International, Inc.

     

Term Loan, 4.50%, Maturing May 28, 2021

      996        998,123   

Filtration Group Corporation

     

Term Loan - Second Lien, 8.25%, Maturing November 21, 2021

      262        258,270   
Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Industrial Equipment (continued)

  

Gardner Denver, Inc.

     

Term Loan, 4.25%, Maturing July 30, 2020

      3,378      $ 3,131,964   

Term Loan, 4.75%, Maturing July 30, 2020

  EUR     439        455,427   

Husky Injection Molding Systems Ltd.

     

Term Loan, 4.25%, Maturing June 30, 2021

      3,038        3,029,351   

Term Loan - Second Lien, 7.25%, Maturing June 30, 2022

      477        466,132   

Milacron, LLC

     

Term Loan, 4.25%, Maturing September 28, 2020

      1,255        1,256,089   

Paladin Brands Holding, Inc.

     

Term Loan, 7.25%, Maturing August 16, 2019

      1,163        994,253   

Paternoster Holding IV GmbH

     

Term Loan, 6.63%, Maturing February 10, 2022

  EUR     1,000        1,096,772   

Rexnord, LLC

     

Term Loan, 4.00%, Maturing August 21, 2020

      5,997        5,975,322   

Signode Industrial Group US, Inc.

     

Term Loan, 3.75%, Maturing May 1, 2021

      1,013        1,008,267   

STS Operating, Inc.

     

Term Loan, 4.75%, Maturing February 12, 2021

      310        278,794   

Tank Holding Corp.

     

Term Loan, 5.25%, Maturing March 16, 2022

      834        779,836   

Terex Corporation

     

Term Loan, 3.50%, Maturing August 13, 2021

  EUR     1,724        1,917,332   

Unifrax Corporation

     

Term Loan, 4.25%, Maturing November 28, 2018

      300        292,263   

VAT Lux III S.a.r.l.

     

Term Loan, 4.25%, Maturing February 11, 2021

      324        320,678   
                     
      $ 26,875,743   
                     

Insurance — 4.6%

  

Alliant Holdings I, Inc.

     

Term Loan, 4.50%, Maturing August 12, 2022

      2,059      $ 2,048,625   

AmWINS Group, LLC

     

Term Loan, 5.25%, Maturing September 6, 2019

      5,280        5,303,409   

AssuredPartners, Inc.

     

Term Loan, 5.75%, Maturing October 21, 2022

      1,023        1,025,495   

Term Loan - Second Lien, 10.00%, Maturing October 20, 2023

      775        755,625   

Asurion, LLC

     

Term Loan, 5.00%, Maturing May 24, 2019

      2,146        2,151,775   

Term Loan, 5.00%, Maturing August 4, 2022

      5,590        5,576,482   

Term Loan - Second Lien, 8.50%, Maturing March 3, 2021

      2,550        2,499,637   
 

 

  13   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Insurance (continued)

  

Cunningham Lindsey U.S., Inc.

     

Term Loan, 5.00%, Maturing December 10, 2019

      1,372      $ 1,173,225   

Term Loan - Second Lien, 9.25%, Maturing June 10, 2020

      1,000        779,900   

Hub International Limited

     

Term Loan, 4.50%, Maturing October 2, 2020

      3,047        3,024,334   

USI, Inc.

     

Term Loan, 4.25%, Maturing December 27, 2019

      2,840        2,828,686   
                     
      $ 27,167,193   
                     

Leisure Goods / Activities / Movies — 6.2%

  

AMC Entertainment, Inc.

     

Term Loan, 4.00%, Maturing December 15, 2022

      2,363      $ 2,377,157   

Ancestry.com, Inc.

     

Term Loan, 5.00%, Maturing August 17, 2022

      1,692        1,695,306   

Bombardier Recreational Products, Inc.

     

Term Loan, 3.75%, Maturing January 30, 2019

      3,583        3,594,613   

Bright Horizons Family Solutions, Inc.

     

Term Loan, 3.75%, Maturing January 30, 2020

      992        997,420   

CDS U.S. Intermediate Holdings, Inc.

     

Term Loan, 5.00%, Maturing July 8, 2022

      1,473        1,448,925   

ClubCorp Club Operations, Inc.

     

Term Loan, 4.25%, Maturing December 15, 2022

      2,100        2,107,438   

Emerald Expositions Holding, Inc.

     

Term Loan, 4.75%, Maturing June 17, 2020

      1,023        1,024,327   

Fender Musical Instruments Corporation

     

Term Loan, 5.75%, Maturing April 3, 2019

      276        274,502   

Lindblad Expeditions, Inc.

     

Term Loan, 5.50%, Maturing May 8, 2021

      202        201,649   

Term Loan, 5.50%, Maturing May 8, 2021

      1,563        1,562,781   

Live Nation Entertainment, Inc.

     

Term Loan, 3.50%, Maturing August 16, 2020

      2,862        2,871,798   

LTF Merger Sub, Inc.

     

Term Loan, 4.25%, Maturing June 10, 2022

      1,489        1,484,796   

Match Group, Inc.

     

Term Loan, 6.26%, Maturing November 16, 2022

      1,259        1,268,505   

Nord Anglia Education Finance, LLC

     

Term Loan, 5.00%, Maturing March 31, 2021

      1,840        1,828,967   

Sabre, Inc.

     

Term Loan, 4.00%, Maturing February 19, 2019

      1,282        1,287,279   

SeaWorld Parks & Entertainment, Inc.

     

Term Loan, 3.00%, Maturing May 14, 2020

      2,997        2,939,695   

Sonifi Solutions, Inc.

     

Term Loan, 6.75%, Maturing March 28, 2018(3)

      1,367        546,644   
Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Leisure Goods / Activities / Movies (continued)

  

SRAM, LLC

     

Term Loan, 4.01%, Maturing April 10, 2020

      1,854      $ 1,645,254   

Steinway Musical Instruments, Inc.

     

Term Loan, 4.75%, Maturing September 19, 2019

      2,173        2,097,254   

WMG Acquisition Corp.

     

Term Loan, 3.75%, Maturing July 1, 2020

      1,949        1,940,641   

Zuffa, LLC

     

Term Loan, 3.75%, Maturing February 25, 2020

      3,120        3,120,233   
                     
      $ 36,315,184   
                     

Lodging and Casinos — 5.5%

  

Affinity Gaming, LLC

     

Term Loan, 5.25%, Maturing November 9, 2017

      428      $ 430,090   

Amaya Holdings B.V.

     

Term Loan, 5.00%, Maturing August 1, 2021

      3,724        3,613,300   

Term Loan - Second Lien, 8.00%, Maturing August 1, 2022

      2,040        2,029,800   

Boyd Gaming Corporation

     

Term Loan, 4.00%, Maturing August 14, 2020

      444        445,325   

Caesars Entertainment Operating Company

     

Term Loan, 0.00%, Maturing March 1, 2017(4)

      1,370        1,378,396   

CityCenter Holdings, LLC

     

Term Loan, 4.25%, Maturing October 16, 2020

      712        715,593   

Four Seasons Holdings, Inc.

     

Term Loan - Second Lien, 6.25%, Maturing December 27, 2020

      3,950        3,959,875   

Gala Group Finance PLC

     

Term Loan, 5.01%, Maturing May 27, 2018

  GBP     2,850        4,136,684   

Golden Nugget, Inc.

     

Term Loan, 5.50%, Maturing November 21, 2019

      146        146,629   

Term Loan, 5.50%, Maturing November 21, 2019

      341        342,134   

Hilton Worldwide Finance, LLC

     

Term Loan, 3.50%, Maturing October 26, 2020

      4,850        4,870,623   

La Quinta Intermediate Holdings, LLC

     

Term Loan, 3.75%, Maturing April 14, 2021

      1,076        1,065,650   

MGM Growth Properties Operating Partnership LP

     

Term Loan, 4.00%, Maturing April 25, 2023

      2,100        2,116,078   

Playa Resorts Holding B.V.

     

Term Loan, 4.00%, Maturing August 9, 2019

      1,534        1,524,107   

Scientific Games International, Inc.

     

Term Loan, 6.00%, Maturing October 18, 2020

      3,959        3,929,183   

Term Loan, 6.00%, Maturing October 1, 2021

      938        931,675   

Tropicana Entertainment, Inc.

     

Term Loan, 4.00%, Maturing November 27, 2020

      390        391,463   
                     
  $ 32,026,605   
                     
 

 

  14   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Nonferrous Metals / Minerals — 2.5%

  

Alpha Natural Resources, LLC

     

DIP Loan, 10.00%, Maturing February 6, 2017

      375      $ 370,313   

Term Loan, 3.50%, Maturing May 22, 2020

      2,476        1,107,862   

Arch Coal, Inc.

     

DIP Loan, 5.00%, Maturing January 31, 2017(5)

      900        891,563   

Term Loan, 7.50%, Maturing May 16, 2018

      3,891        1,760,797   

Dynacast International, LLC

     

Term Loan, 4.50%, Maturing January 28, 2022

      668        669,085   

Fairmount Santrol, Inc.

     

Term Loan, 4.50%, Maturing September 5, 2019

      2,764        2,077,552   

Murray Energy Corporation

     

Term Loan, 7.00%, Maturing April 16, 2017

      322        265,688   

Term Loan, 7.50%, Maturing April 16, 2020

      2,059        1,420,614   

Noranda Aluminum Acquisition Corporation

     

Term Loan, 5.75%, Maturing February 28, 2019

      1,107        448,284   

Novelis, Inc.

     

Term Loan, 4.00%, Maturing June 2, 2022

      2,928        2,923,483   

Oxbow Carbon, LLC

     

Term Loan, 4.25%, Maturing July 19, 2019

      317        311,799   

Term Loan - Second Lien, 8.00%, Maturing January 17, 2020

      2,225        2,074,812   

United Central Industrial Supply Company, LLC

     

Term Loan - Second Lien, 12.50%, Maturing April 9, 2019(3)

      500        166,850   
                     
  $ 14,488,702   
                     

Oil and Gas — 4.3%

  

Ameriforge Group, Inc.

     

Term Loan, 5.00%, Maturing December 19, 2019

      3,164      $ 1,792,761   

Bronco Midstream Funding, LLC

     

Term Loan, 5.00%, Maturing August 15, 2020

      1,988        1,759,394   

CITGO Holding, Inc.

     

Term Loan, 9.50%, Maturing May 12, 2018

      896        901,798   

CITGO Petroleum Corporation

     

Term Loan, 4.50%, Maturing July 29, 2021

      1,084        1,076,728   

Crestwood Holdings, LLC

     

Term Loan, 9.00%, Maturing June 19, 2019

      999        854,038   

Drillships Ocean Ventures, Inc.

     

Term Loan, 5.50%, Maturing July 25, 2021

      2,466        1,606,965   

Energy Transfer Equity L.P.

     

Term Loan, 4.00%, Maturing December 2, 2019

      418        408,302   

Fieldwood Energy, LLC

     

Term Loan, 3.88%, Maturing October 1, 2018

      1,125        919,533   

Term Loan, Maturing August 31,
2020(2)

      550        442,063   
Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Oil and Gas (continued)

  

Fieldwood Energy, LLC (continued)

     

Term Loan - Second Lien, 8.38%, Maturing September 30, 2020

      1,700      $ 640,132   

Floatel International, Ltd.

     

Term Loan, 6.00%, Maturing June 27, 2020

      1,107        652,844   

MEG Energy Corp.

     

Term Loan, 3.75%, Maturing March 31, 2020

      8,059        7,114,914   

Paragon Offshore Finance Company

     

Term Loan, 5.25%, Maturing July 18, 2021

      938        267,366   

Samson Investment Company

     

Term Loan - Second Lien, 0.00%, Maturing September 25, 2018(4)

      1,950        40,624   

Seadrill Partners Finco, LLC

     

Term Loan, 4.00%, Maturing February 21, 2021

      5,019        2,413,523   

Sheridan Investment Partners II L.P.

     

Term Loan, 4.25%, Maturing December 16, 2020

      39        21,859   

Term Loan, 4.25%, Maturing December 16, 2020

      106        58,613   

Term Loan, 4.25%, Maturing December 16, 2020

      759        421,352   

Sheridan Production Partners I, LLC

     

Term Loan, 4.25%, Maturing October 1, 2019

      223        131,628   

Term Loan, 4.25%, Maturing October 1, 2019

      365        215,499   

Term Loan, 4.25%, Maturing October 1, 2019

      2,756        1,626,305   

Southcross Holdings Borrower L.P.

     

Term Loan, 9.00%, (3.50% Cash, 5.50% PIK), Maturing April 13, 2023

      59        49,075   

Tervita Corporation

     

Term Loan, 6.25%, Maturing May 15, 2018

      1,600        1,480,040   
                     
      $ 24,895,356   
                     

Publishing — 2.7%

  

682534 N.B., Inc.

     

Term Loan, 12.00%, (8.00% Cash, 4.00% PIK), Maturing October 1, 2020(3)

      328      $ 262,094   

Ascend Learning, LLC

     

Term Loan, 5.50%, Maturing July 31, 2019

      1,884        1,890,362   

Getty Images, Inc.

     

Term Loan, 4.75%, Maturing October 18, 2019

      5,961        4,504,413   

Laureate Education, Inc.

     

Term Loan, 5.00%, Maturing June 15, 2018

      4,683        4,562,362   

Merrill Communications, LLC

     

Term Loan, 6.25%, Maturing June 1, 2022

      669        619,233   

Penton Media, Inc.

     

Term Loan, 4.75%, Maturing October 3, 2019

      635        636,203   

ProQuest, LLC

     

Term Loan, 5.75%, Maturing October 24, 2021

      1,983        1,940,917   
 

 

  15   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Publishing (continued)

  

Springer Science+Business Media Deutschland GmbH

   

Term Loan, 4.50%, Maturing August 14, 2020

      1,566      $ 1,528,326   
                     
      $ 15,943,910   
                     

Radio and Television — 3.4%

  

ALM Media Holdings, Inc.

     

Term Loan, 5.50%, Maturing July 31, 2020

      457      $ 434,968   

AP NMT Acquisition B.V.

     

Term Loan, 6.75%, Maturing August 13, 2021

      2,005        1,626,186   

Block Communications, Inc.

     

Term Loan, 4.00%, Maturing November 7, 2021

      246        247,021   

Cumulus Media Holdings, Inc.

     

Term Loan, 4.25%, Maturing December 23, 2020

      4,607        3,279,542   

Entercom Radio, LLC

     

Term Loan, 4.04%, Maturing November 23, 2018

      395        395,521   

Gray Television, Inc.

     

Term Loan, 3.94%, Maturing June 13, 2021

      289        289,962   

Hubbard Radio, LLC

     

Term Loan, 4.25%, Maturing May 27, 2022

      698        682,969   

iHeartCommunications, Inc.

     

Term Loan, 7.20%, Maturing January 30, 2019

      2,132        1,644,381   

Term Loan, 7.95%, Maturing July 30, 2019

      364        280,287   

MGOC, Inc.

     

Term Loan, 4.00%, Maturing July 31, 2020

      1,503        1,504,764   

Mission Broadcasting, Inc.

     

Term Loan, 3.75%, Maturing October 1, 2020

      708        708,322   

Nexstar Broadcasting, Inc.

     

Term Loan, 3.75%, Maturing October 1, 2020

      802        803,249   

Raycom TV Broadcasting, LLC

     

Term Loan, 3.75%, Maturing August 4, 2021

      955        943,507   

Sinclair Television Group, Inc.

     

Term Loan, 3.00%, Maturing April 9, 2020

      558        556,520   

Univision Communications, Inc.

     

Term Loan, 4.00%, Maturing March 1, 2020

      6,348        6,356,611   
                     
      $ 19,753,810   
                     

Retailers (Except Food and Drug) — 7.6%

  

99 Cents Only Stores

     

Term Loan, 4.50%, Maturing January 11, 2019

      372      $ 252,209   

B&M Retail Limited

     

Term Loan, 3.26%, Maturing May 21, 2019

  GBP     400        571,464   

Term Loan, 3.76%, Maturing April 28, 2020

  GBP     325        467,183   

Bass Pro Group, LLC

     

Term Loan, 4.00%, Maturing June 5, 2020

      2,608        2,575,124   
Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Retailers (Except Food and Drug) (continued)

  

CDW, LLC

     

Term Loan, 3.25%, Maturing April 29, 2020

      5,069      $ 5,082,518   

David’s Bridal, Inc.

  

Term Loan, 5.25%, Maturing October 11, 2019

      1,710        1,575,030   

Dollar Tree, Inc.

     

Term Loan, 3.50%, Maturing July 6, 2022

      2,211        2,220,162   

Evergreen Acqco 1 L.P.

     

Term Loan, 5.00%, Maturing July 9, 2019

      1,418        1,220,261   

Harbor Freight Tools USA, Inc.

     

Term Loan, 4.75%, Maturing July 26, 2019

      1,081        1,088,684   

J. Crew Group, Inc.

     

Term Loan, 4.00%, Maturing March 5, 2021

      3,236        2,421,030   

Jo-Ann Stores, Inc.

     

Term Loan, 4.00%, Maturing March 16, 2018

      1,802        1,805,085   

Men’s Wearhouse, Inc. (The)

     

Term Loan, 4.50%, Maturing June 18, 2021

      1,512        1,445,202   

Michaels Stores, Inc.

     

Term Loan, 3.75%, Maturing January 28, 2020

      2,765        2,772,564   

Term Loan, 4.00%, Maturing January 28, 2020

      887        890,696   

Neiman Marcus Group, Inc. (The)

     

Term Loan, 4.25%, Maturing October 25, 2020

      2,661        2,445,623   

Party City Holdings, Inc.

     

Term Loan, 4.25%, Maturing August 19, 2022

      2,985        2,984,461   

PetSmart, Inc.

     

Term Loan, 4.25%, Maturing March 11, 2022

      5,222        5,228,778   

PFS Holding Corporation

     

Term Loan, 4.50%, Maturing January 31, 2021

      1,717        1,579,257   

Pier 1 Imports (U.S.), Inc.

     

Term Loan, 4.50%, Maturing April 30, 2021

      565        528,217   

Rent-A-Center, Inc.

     

Term Loan, 3.75%, Maturing March 19, 2021

      495        489,852   

Spin Holdco, Inc.

     

Term Loan, 4.25%, Maturing November 14, 2019

      3,582        3,530,542   

Toys ‘R’ Us Property Company I, LLC

     

Term Loan, 6.00%, Maturing August 21, 2019

      1,923        1,750,000   

Vivarte SA

     

Term Loan, 11.00%, (4.00% Cash, 7.00% PIK), Maturing October 29, 2019(6)

  EUR     631        708,645   

Term Loan, 5.00%, (1.25% Cash, 3.75% PIK), Maturing October 29, 2020(7)

  EUR     945        575,631   

Term Loan, 0.10%, (0.10% Cash, 0.00% PIK), Maturing October 29, 2021(3)

  EUR     204        0   

Wilton Brands, LLC

     

Term Loan, 8.50%, Maturing August 30, 2018

      538        482,068   
                     
  $ 44,690,286   
                     
 

 

  16   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Steel — 1.6%

  

FMG Resources (August 2006) Pty. Ltd.

     

Term Loan, 4.25%, Maturing June 30, 2019

      8,389      $ 7,875,485   

JMC Steel Group, Inc.

     

Term Loan, 4.75%, Maturing April 1, 2017

      1,110        1,108,403   

Neenah Foundry Company

     

Term Loan, 6.75%, Maturing April 26, 2017

      410        407,476   
                     
  $ 9,391,364   
                     

Surface Transport — 0.7%

  

Hertz Corporation (The)

     

Term Loan, 3.75%, Maturing March 11, 2018

      1,983      $ 1,986,386   

Kenan Advantage Group, Inc.

     

Term Loan, 1.50%, Maturing January 31, 2017(5)

      50        50,140   

Term Loan, 4.00%, Maturing July 31, 2022

      122        121,975   

Term Loan, 4.00%, Maturing July 31, 2022

      375        374,714   

Stena International S.a.r.l.

     

Term Loan, 4.00%, Maturing March 3, 2021

      1,715        1,449,175   
                     
      $ 3,982,390   
                     

Telecommunications — 3.8%

  

Intelsat Jackson Holdings S.A.

     

Term Loan, 3.75%, Maturing June 30, 2019

      8,350      $ 7,713,312   

IPC Corp.

     

Term Loan, 5.50%, Maturing August 6, 2021

      2,351        2,192,540   

Mitel US Holdings, Inc.

     

Term Loan, 5.50%, Maturing April 29, 2022

      771        773,605   

Syniverse Holdings, Inc.

     

Term Loan, 4.00%, Maturing April 23, 2019

      1,970        1,504,362   

Term Loan, 4.00%, Maturing April 23, 2019

      2,111        1,612,056   

Telesat Canada

     

Term Loan, 3.50%, Maturing March 28, 2019

      7,509        7,517,080   

Windstream Corporation

     

Term Loan, 3.50%, Maturing August 8, 2019

      819        812,182   
                     
      $ 22,125,137   
                     

Utilities — 3.6%

  

Calpine Construction Finance Company L.P.

     

Term Loan, 3.00%, Maturing May 3, 2020

      1,118      $ 1,095,076   

Term Loan, 3.25%, Maturing January 31, 2022

      413        405,246   

Calpine Corporation

     

Term Loan, 3.50%, Maturing May 27, 2022

      3,499        3,478,064   

Dynegy Holdings, Inc.

     

Term Loan, 4.00%, Maturing April 23, 2020

      1,047        1,045,999   
Borrower/Tranche Description        Principal
Amount*
(000’s omitted)
    Value  

Utilities (continued)

  

EFS Cogen Holdings I, LLC

     

Term Loan, 3.75%, Maturing December 17, 2020

      450      $ 451,419   

Electrical Components International, Inc.

     

Term Loan, 5.75%, Maturing May 28, 2021

      1,580        1,582,439   

Energy Future Intermediate Holding Co., LLC

     

DIP Loan, 4.25%, Maturing December 19, 2016

      1,925        1,926,604   

EWT Holdings III Corp.

     

Term Loan, 4.75%, Maturing January 15, 2021

      440        439,875   

Term Loan, 5.50%, Maturing January 15, 2021

      625        625,781   

Term Loan - Second Lien, 8.50%, Maturing January 15, 2022

      1,800        1,728,000   

Granite Acquisition, Inc.

     

Term Loan, 5.00%, Maturing December 19, 2021

      121        120,411   

Term Loan, 5.00%, Maturing December 19, 2021

      2,719        2,702,412   

Invenergy Thermal Operating I, LLC

     

Term Loan, 6.50%, Maturing October 7, 2022

      199        191,040   

Lonestar Generation, LLC

     

Term Loan, 5.25%, Maturing February 22, 2021

      1,379        1,003,312   

Longview Power, LLC

     

Term Loan, 7.00%, Maturing April 13, 2021

      3,275        2,931,349   

TPF II Power, LLC

     

Term Loan, 5.50%, Maturing October 2, 2021

      1,472        1,474,816   
                     
      $ 21,201,843   
                     

Total Senior Floating-Rate Loans
(identified cost $814,751,057)

      $ 779,089,923   
                     
Corporate Bonds & Notes — 9.4%     
     
Security        Principal
Amount*
(000’s omitted)
    Value  

Aerospace and Defense — 0.1%

  

Aerojet Rocketdyne Holdings, Inc.

     

7.125%, 3/15/21

      70      $ 74,025   

CBC Ammo, LLC/CBC FinCo, Inc.

     

7.25%, 11/15/21(8)

      75        63,750   

Huntington Ingalls Industries, Inc.

     

5.00%, 11/15/25(8)

      15        15,788   

Orbital ATK, Inc.

     

5.25%, 10/1/21

      45        47,194   

TransDigm, Inc.

     

7.50%, 7/15/21

      10        10,609   

6.00%, 7/15/22

      85        86,912   

6.50%, 7/15/24

      80        82,000   
                     
      $ 380,278   
                     
 

 

  17   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Security        Principal
Amount*
(000’s omitted)
    Value  

Automotive — 0.1%

  

American Axle & Manufacturing, Inc.

     

5.125%, 2/15/19

      20      $ 20,423   

General Motors Financial Co., Inc.

     

4.75%, 8/15/17

      75        77,478   

3.25%, 5/15/18

      10        10,194   

Navistar International Corp.

     

8.25%, 11/1/21

      30        21,381   

ZF North America Capital, Inc.

     

4.50%, 4/29/22(8)

      150        151,387   
                     
      $ 280,863   
                     

Beverage and Tobacco — 0.0%(9)

  

Constellation Brands, Inc.

     

6.00%, 5/1/22

      70      $ 79,363   

4.25%, 5/1/23

      105        108,675   
                     
      $ 188,038   
                     

Brokerage / Securities Dealers / Investment Houses — 0.0%(9)

  

Alliance Data Systems Corp.

     

6.375%, 4/1/20(8)

      55      $ 56,031   
                     
      $ 56,031   
                     

Building and Development — 0.1%

  

Builders FirstSource, Inc.

     

7.625%, 6/1/21(8)

      15      $ 15,825   

10.75%, 8/15/23(8)

      18        19,665   

Greystar Real Estate Partners, LLC

     

8.25%, 12/1/22(8)

      50        52,250   

HD Supply, Inc.

     

7.50%, 7/15/20

      110        116,325   

5.25%, 12/15/21(8)

      40        42,250   

Hillman Group, Inc. (The)

     

6.375%, 7/15/22(8)

      75        68,063   

Nortek, Inc.

     

8.50%, 4/15/21

      40        41,900   

Reliance Intermediate Holdings, L.P.

     

6.50%, 4/1/23(8)

      120        126,300   

Standard Industries, Inc.

     

5.375%, 11/15/24(8)

      75        77,062   

6.00%, 10/15/25(8)

      55        58,713   

TRI Pointe Group, Inc./TRI Pointe Homes, Inc.

     

4.375%, 6/15/19

      45        45,225   

5.875%, 6/15/24

      60        60,150   
Security        Principal
Amount*
(000’s omitted)
    Value  

Building and Development (continued)

  

USG Corp.

     

5.875%, 11/1/21(8)

      40      $ 42,175   

5.50%, 3/1/25(8)

      5        5,331   
                     
      $ 771,234   
                     

Business Equipment and Services — 0.2%

  

Acosta, Inc.

     

7.75%, 10/1/22(8)

      145      $ 140,288   

FTI Consulting, Inc.

     

6.00%, 11/15/22

      40        42,350   

IMS Health, Inc.

     

6.00%, 11/1/20(8)

      80        82,128   

National CineMedia, LLC

     

6.00%, 4/15/22

      835        874,662   

ServiceMaster Co., LLC (The)

     

7.45%, 8/15/27

      45        46,800   

United Rentals North America, Inc.

     

7.625%, 4/15/22

      40        42,775   

6.125%, 6/15/23

      15        15,600   
                     
      $ 1,244,603   
                     

Cable and Satellite Television — 0.6%

  

Cable One, Inc.

     

5.75%, 6/15/22(8)

      15      $ 15,413   

CCO Holdings, LLC/CCO Holdings Capital Corp.

     

5.25%, 9/30/22

      160        164,800   

5.75%, 1/15/24

      10        10,388   

5.375%, 5/1/25(8)

      95        96,662   

5.75%, 2/15/26(8)

      45        46,238   

CSC Holdings, LLC

     

8.625%, 2/15/19

      15        16,650   

5.25%, 6/1/24

      10        9,025   

DISH DBS Corp.

     

6.75%, 6/1/21

      185        192,085   

5.875%, 7/15/22

      30        29,190   

5.875%, 11/15/24

      20        18,613   

IAC/InterActiveCorp

     

4.875%, 11/30/18

      57        58,567   

Virgin Media Secured Finance PLC

     

5.375%, 4/15/21(8)

      923        957,670   

6.00%, 4/15/21(8)

  GBP     945        1,431,308   

5.50%, 1/15/25(8)

      625        637,891   
                     
      $ 3,684,500   
                     
 

 

  18   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Security        Principal
Amount*
(000’s omitted)
    Value  

Chemicals and Plastics — 0.7%

  

Hexion, Inc.

     

6.625%, 4/15/20

      4,575      $ 3,900,187   

Platform Specialty Products Corp.

     

10.375%, 5/1/21(8)

      15        15,300   

6.50%, 2/1/22(8)

      60        53,550   

Scotts Miracle-Gro Co. (The)

     

6.00%, 10/15/23(8)

      15        15,975   

Tronox Finance, LLC

     

6.375%, 8/15/20

      135        104,625   

7.50%, 3/15/22(8)

      25        18,750   

W.R. Grace & Co.

     

5.125%, 10/1/21(8)

      30        31,181   

5.625%, 10/1/24(8)

      15        15,919   
                     
      $ 4,155,487   
                     

Commercial Services — 0.0%(9)

  

CEB, Inc.

     

5.625%, 6/15/23(8)

      15      $ 14,925   

ExamWorks Group, Inc.

     

5.625%, 4/15/23

      35        37,669   
                     
      $ 52,594   
                     

Conglomerates — 0.0%(9)

  

Belden, Inc.

     

5.50%, 9/1/22(8)

      20      $ 20,300   

Spectrum Brands, Inc.

     

6.375%, 11/15/20

      50        52,563   

6.625%, 11/15/22

      35        37,472   

5.75%, 7/15/25

      75        78,750   

TMS International Corp.

     

7.625%, 10/15/21(8)

      55        38,775   
                     
      $ 227,860   
                     

Consumer Products — 0.0%(9)

  

Central Garden & Pet Co.

     

6.125%, 11/15/23

      50      $ 52,125   
                     
      $ 52,125   
                     

Containers and Glass Products — 0.8%

  

Berry Plastics Corp.

     

6.00%, 10/15/22(8)

      25      $ 25,813   
Security        Principal
Amount*
(000’s omitted)
    Value  

Containers and Glass Products (continued)

  

Beverage Packaging Holdings Luxembourg II SA/Beverage Packaging Holdings II Issuer, Inc.

     

5.625%, 12/15/16(8)

      15      $ 14,981   

Owens-Brockway Glass Container, Inc.

     

5.875%, 8/15/23(8)

      35        37,166   

6.375%, 8/15/25(8)

      15        16,003   

Reynolds Group Holdings, Inc.

     

5.75%, 10/15/20

      4,350        4,496,812   
                     
      $ 4,590,775   
                     

Distribution & Wholesale — 0.0%(9)

  

American Tire Distributors, Inc.

     

10.25%, 3/1/22(8)

      50      $ 43,563   
                     
      $ 43,563   
                     

Diversified Financial Services — 0.0%(9)

  

Quicken Loans, Inc.

     

5.75%, 5/1/25(8)

      35      $ 33,338   
                     
      $ 33,338   
                     

Drugs — 0.1%

  

ConvaTec Finance International SA

     

8.25%, 1/15/19(8)(10)

      200      $ 200,250   

Mallinckrodt International Finance S.A./Mallinckrodt CB, LLC

     

4.875%, 4/15/20(8)

      30        29,250   

5.625%, 10/15/23(8)

      85        80,325   

5.50%, 4/15/25(8)

      30        27,225   

Valeant Pharmaceuticals International, Inc.

     

6.375%, 10/15/20(8)

      205        183,475   

7.50%, 7/15/21(8)

      50        45,500   

5.625%, 12/1/21(8)

      30        25,500   

5.875%, 5/15/23(8)

      100        84,562   

6.125%, 4/15/25(8)

      70        58,625   
                     
      $ 734,712   
                     

Ecological Services and Equipment — 0.0%(9)

  

Advanced Disposal Services, Inc.

     

8.25%, 10/1/20

      55      $ 56,925   

Clean Harbors, Inc.

     

5.25%, 8/1/20

      50        51,188   

5.125%, 6/1/21

      25        25,375   
 

 

  19   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Security        Principal
Amount*
(000’s omitted)
    Value  

Ecological Services and Equipment (continued)

  

Covanta Holding Corp.

     

5.875%, 3/1/24

      25      $ 25,000   
                     
      $ 158,488   
                     

Electric Utilities — 0.0%(9)

  

NRG Yield Operating, LLC

     

5.375%, 8/15/24

      25      $ 24,188   
                     
      $ 24,188   
                     

Electronics / Electrical — 0.4%

  

Anixter, Inc.

     

5.50%, 3/1/23

      50      $ 51,188   

CommScope, Inc.

     

4.375%, 6/15/20(8)

      20        20,650   

Freescale Semiconductor, Inc.

     

6.00%, 1/15/22(8)

      55        58,476   

Infor (US), Inc.

     

5.75%, 8/15/20(8)

      35        36,790   

6.50%, 5/15/22

      50        46,125   

Informatica, LLC

     

7.125%, 7/15/23(8)

      30        28,725   

Nuance Communications, Inc.

     

5.375%, 8/15/20(8)

      90        91,912   

SS&C Technologies Holdings, Inc.

     

5.875%, 7/15/23

      60        62,700   

Western Digital Corp.

     

7.375%, 4/1/23(8)

      1,550        1,619,750   

Zebra Technologies Corp.

     

7.25%, 10/15/22

      105        112,481   
                     
      $ 2,128,797   
                     

Equipment Leasing — 0.2%

  

International Lease Finance Corp.

     

6.75%, 9/1/16(8)

      400      $ 404,250   

7.125%, 9/1/18(8)

      400        441,000   
                     
      $ 845,250   
                     

Financial Intermediaries — 0.3%

  

CIT Group, Inc.

     

5.50%, 2/15/19(8)

      45      $ 47,138   

5.375%, 5/15/20

      10        10,450   
Security        Principal
Amount*
(000’s omitted)
    Value  

Financial Intermediaries (continued)

  

First Data Corp.

     

6.75%, 11/1/20(8)

      1,066      $ 1,123,693   

7.00%, 12/1/23(8)

      155        157,712   

5.00%, 1/15/24(8)

      30        30,094   

Icahn Enterprises, L.P./Icahn Enterprises Finance Corp.

     

3.50%, 3/15/17

      45        45,000   

6.00%, 8/1/20

      65        63,212   

JPMorgan Chase & Co.

     

6.75% to 2/1/24, 1/29/49(11)

      80        88,975   

Navient Corp.

     

5.50%, 1/15/19

      110        110,412   

5.00%, 10/26/20

      30        28,125   

5.875%, 10/25/24

      35        30,013   
                     
      $ 1,734,824   
                     

Food Products — 0.4%

  

Dean Foods Co.

     

6.50%, 3/15/23(8)

      50      $ 52,250   

Iceland Bondco PLC

     

4.838%, 7/15/20(8)(12)

  GBP     1,500        1,944,409   

Pilgrim’s Pride Corp.

     

5.75%, 3/15/25(8)

      10        10,131   

Post Holdings, Inc.

     

6.75%, 12/1/21(8)

      15        15,863   

6.00%, 12/15/22(8)

      35        35,831   

7.75%, 3/15/24(8)

      40        43,500   

8.00%, 7/15/25(8)

      20        22,300   

WhiteWave Foods Co. (The)

     

5.375%, 10/1/22

      25        26,844   
                     
      $ 2,151,128   
                     

Food Service — 0.0%(9)

  

1011778 B.C. Unlimited Liability Company/New Red Finance, Inc.

     

4.625%, 1/15/22(8)

      65      $ 66,544   

6.00%, 4/1/22(8)

      125        129,844   

Yum! Brands, Inc.

     

5.30%, 9/15/19

      10        10,662   

3.75%, 11/1/21

      15        14,531   

3.875%, 11/1/23

      5        4,619   
                     
      $ 226,200   
                     
 

 

  20   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Security        Principal
Amount*
(000’s omitted)
    Value  

Food / Drug Retailers — 0.0%(9)

  

Rite Aid Corp.

     

6.125%, 4/1/23(8)

      120      $ 127,350   
                     
      $ 127,350   
                     

Health Care — 1.3%

  

Alere, Inc.

     

7.25%, 7/1/18

      15      $ 15,516   

6.50%, 6/15/20

      35        35,263   

6.375%, 7/1/23(8)

      65        68,087   

AmSurg Corp.

     

5.625%, 11/30/20

      50        51,625   

5.625%, 7/15/22

      45        45,844   

Capsugel SA

     

7.00%, 5/15/19(8)(10)

      19        19,071   

Centene Corp.

     

4.75%, 5/15/22

      20        20,650   

CHS/Community Health Systems, Inc.

     

5.125%, 8/15/18

      2,445        2,493,558   

7.125%, 7/15/20

      130        121,225   

6.875%, 2/1/22

      95        82,117   

DJO Finco, Inc./DJO Finance, LLC/DJO Finance Corp.

     

8.125%, 6/15/21(8)

      40        36,100   

HCA Holdings, Inc.

     

6.25%, 2/15/21

      90        96,750   

HCA, Inc.

     

6.50%, 2/15/20

      20        22,050   

4.75%, 5/1/23

      1,200        1,227,000   

5.875%, 2/15/26

      25        25,938   

Hill-Rom Holdings, Inc.

     

5.75%, 9/1/23(8)

      25        25,688   

Hologic, Inc.

     

5.25%, 7/15/22(8)

      70        73,500   

Jaguar Holding Co. II/Pharmaceutical Product Development, LLC

     

6.375%, 8/1/23(8)

      140        143,290   

Kinetic Concepts, Inc./KCI USA, Inc.

     

10.50%, 11/1/18

      50        50,125   

MPH Acquisition Holdings, LLC

     

6.625%, 4/1/22(8)

      155        169,802   

Opal Acquisition, Inc.

     

8.875%, 12/15/21(8)

      60        47,250   

RegionalCare Hospital Partners Holdings, Inc.

     

8.25%, 5/1/23(8)

      1,425        1,470,429   
Security        Principal
Amount*
(000’s omitted)
    Value  

Health Care (continued)

  

Surgical Care Affiliates, Inc.

     

6.00%, 4/1/23(8)

      40      $ 41,300   

Teleflex, Inc.

     

5.25%, 6/15/24

      20        20,800   

Tenet Healthcare Corp.

     

6.00%, 10/1/20

      55        58,162   

4.375%, 10/1/21

      675        676,687   

8.125%, 4/1/22

      105        106,181   

6.75%, 6/15/23

      20        18,875   

WellCare Health Plans, Inc.

     

5.75%, 11/15/20

      120        124,800   
                     
      $ 7,387,683   
                     

Holding Company – Diversified — 0.0%(9)

  

Argos Merger Sub, Inc.

     

7.125%, 3/15/23(8)

      80      $ 81,200   

HRG Group, Inc.

     

7.875%, 7/15/19

      110        116,325   
                     
      $ 197,525   
                     

Home Furnishings — 0.0%(9)

  

Tempur Sealy International, Inc.

     

6.875%, 12/15/20

      40      $ 42,728   

5.625%, 10/15/23

      35        36,444   
                     
      $ 79,172   
                     

Industrial Equipment — 0.0%(9)

  

BlueLine Rental Finance Corp.

     

7.00%, 2/1/19(8)

      75      $ 63,750   

Erickson Air-Crane, Inc., Promissory Note

     

6.00%, 11/2/20(3)(13)

      62        23,536   

Vander Intermediate Holding II Corp.

     

9.75%, 2/1/19(8)(10)

      55        28,737   
                     
      $ 116,023   
                     

Insurance — 0.0%(9)

  

Hub Holdings, LLC/Hub Holdings Finance, Inc.

     

8.125%, 7/15/19(8)(10)

      45      $ 42,525   

Hub International, Ltd.

     

7.875%, 10/1/21(8)

      60        58,950   

USI, Inc.

     

7.75%, 1/15/21(8)

      100        99,875   
 

 

  21   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Security        Principal
Amount*
(000’s omitted)
    Value  

Insurance (continued) )

  

Wayne Merger Sub, LLC

     

8.25%, 8/1/23(8)

      40      $ 39,900   
                     
      $ 241,250   
                     

Internet Software & Services — 0.0%(9)

  

Netflix, Inc.

     

5.50%, 2/15/22

      80      $ 83,900   

5.875%, 2/15/25

      120        126,300   

Riverbed Technology, Inc.

     

8.875%, 3/1/23(8)

      40        41,300   
                     
      $ 251,500   
                     

Leisure Goods / Activities / Movies — 0.1%

  

Activision Blizzard, Inc.

     

6.125%, 9/15/23(8)

      35      $ 38,281   

NCL Corp., Ltd.

     

5.25%, 11/15/19(8)

      25        25,625   

4.625%, 11/15/20(8)

      45        46,125   

Regal Entertainment Group

     

5.75%, 3/15/22

      35        36,225   

Royal Caribbean Cruises, Ltd.

     

7.25%, 6/15/16

      25        24,970   

7.25%, 3/15/18

      50        54,500   

Sabre GLBL, Inc.

     

5.375%, 4/15/23(8)

      25        25,688   

5.25%, 11/15/23(8)

      40        41,050   

Viking Cruises, Ltd.

     

8.50%, 10/15/22(8)

      100        89,500   

6.25%, 5/15/25(8)

      45        35,662   
                     
      $ 417,626   
                     

Lodging and Casinos — 0.8%

  

Buffalo Thunder Development Authority

     

11.00%, 12/9/22(8)

      250      $ 118,557   

Caesars Entertainment Operating Co., Inc.

     

8.50%, 2/15/20(4)

      2,375        2,244,375   

9.00%, 2/15/20(4)

      1,875        1,762,500   

GLP Capital, L.P./GLP Financing II, Inc.

     

4.875%, 11/1/20

      75        78,844   

Hilton Worldwide Finance, LLC/Hilton Worldwide Finance Corp.

     

5.625%, 10/15/21

      110        114,021   
Security        Principal
Amount*
(000’s omitted)
    Value  

Lodging and Casinos (continued)

  

MGM Resorts International

     

6.625%, 12/15/21

      90      $ 97,537   

7.75%, 3/15/22

      30        33,863   

6.00%, 3/15/23

      65        68,087   

RHP Hotel Properties, L.P./RHP Finance Corp.

     

5.00%, 4/15/23

      30        30,244   

Station Casinos, LLC

     

7.50%, 3/1/21

      55        57,992   

Tunica-Biloxi Gaming Authority

     

9.00%, 11/15/15(4)(8)

      345        146,625   
                     
      $ 4,752,645   
                     

Media — 0.2%

  

Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH

     

5.50%, 1/15/23(8)

      1,000      $ 1,035,000   
                     
      $ 1,035,000   
                     

Nonferrous Metals / Minerals — 0.1%

  

Eldorado Gold Corp.

     

6.125%, 12/15/20(8)

      120      $ 113,400   

IAMGOLD Corp.

     

6.75%, 10/1/20(8)

      60        50,700   

Imperial Metals Corp.

     

7.00%, 3/15/19(8)

      25        22,625   

Kissner Milling Co., Ltd.

     

7.25%, 6/1/19(8)

      95        95,475   

New Gold, Inc.

     

6.25%, 11/15/22(8)

      70        66,675   

SunCoke Energy Partners, L.P./SunCoke Energy Partners Finance Corp.

     

7.375%, 2/1/20

      55        44,412   
                     
      $ 393,287   
                     

Oil and Gas — 0.6%

  

Antero Resources Corp.

     

6.00%, 12/1/20

      15      $ 15,000   

5.375%, 11/1/21

      100        98,000   

5.625%, 6/1/23

      35        34,300   

Blue Racer Midstream, LLC/Blue Racer Finance Corp.

     

6.125%, 11/15/22(8)

      10        9,050   

Bonanza Creek Energy, Inc.

     

6.75%, 4/15/21

      70        26,950   
 

 

  22   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Security        Principal
Amount*
(000’s omitted)
    Value  

Oil and Gas (continued)

  

Canbriam Energy, Inc.

     

9.75%, 11/15/19(8)

      30      $ 29,025   

CITGO Petroleum Corp.

     

6.25%, 8/15/22(8)

      775        751,750   

Concho Resources, Inc.

     

5.50%, 4/1/23

      245        246,225   

CrownRock, L.P./CrownRock Finance, Inc.

     

7.125%, 4/15/21(8)

      95        98,800   

7.75%, 2/15/23(8)

      60        62,850   

CVR Refining, LLC/Coffeyville Finance, Inc.

     

6.50%, 11/1/22

      135        118,125   

Denbury Resources, Inc.

     

5.50%, 5/1/22

      20        14,300   

Endeavor Energy Resources, L.P./EER Finance, Inc.

     

7.00%, 8/15/21(8)

      95        93,100   

8.125%, 9/15/23(8)

      25        25,625   

Energy Transfer Equity L.P.

     

5.875%, 1/15/24

      85        78,413   

EP Energy, LLC/Everest Acquisition Finance, Inc.

     

7.75%, 9/1/22

      70        37,275   

Gulfport Energy Corp.

     

7.75%, 11/1/20

      150        153,000   

6.625%, 5/1/23

      65        64,188   

Matador Resources Co.

     

6.875%, 4/15/23

      40        40,400   

Memorial Resource Development Corp.

     

5.875%, 7/1/22

      140        139,562   

Newfield Exploration Co.

     

5.625%, 7/1/24

      130        130,000   

Noble Energy, Inc.

     

5.625%, 5/1/21

      27        28,098   

Paramount Resources, Ltd.

     

6.875%, 6/30/23(8)

      30        23,400   

PBF Holding Co., LLC/PBF Finance Corp.

     

8.25%, 2/15/20

      20        20,875   

PBF Logistics, L.P./PBF Logistics Finance Corp.

     

6.875%, 5/15/23

      50        49,000   

RSP Permian, Inc.

     

6.625%, 10/1/22

      85        88,187   

Sabine Pass Liquefaction, LLC

     

5.625%, 2/1/21

      170        174,462   

5.625%, 4/15/23

      100        101,500   

5.625%, 3/1/25

      55        55,206   
Security        Principal
Amount*
(000’s omitted)
    Value  

Oil and Gas (continued)

  

Sabine Pass LNG, L.P.

     

6.50%, 11/1/20

      105      $ 110,119   

Seven Generations Energy, Ltd.

     

8.25%, 5/15/20(8)

      140        147,350   

6.75%, 5/1/23(8)

      65        66,300   

Seventy Seven Energy, Inc.

     

6.50%, 7/15/22(4)

      35        2,100   

SM Energy Co.

     

6.125%, 11/15/22

      25        23,000   

6.50%, 1/1/23

      90        82,369   

Sunoco, L.P./Sunoco Finance Corp.

     

6.375%, 4/1/23(8)

      50        49,750   

Tesoro Corp.

     

5.375%, 10/1/22

      90        92,137   

Tesoro Logistics, L.P./Tesoro Logistics Finance Corp.

     

5.50%, 10/15/19

      15        15,675   

6.25%, 10/15/22

      35        36,313   

Triangle USA Petroleum Corp.

     

6.75%, 7/15/22(8)

      35        7,700   

Williams Partners, L.P./ACMP Finance Corp.

     

4.875%, 3/15/24

      10        9,053   
                     
      $ 3,448,532   
                     

Publishing — 0.1%

  

Laureate Education, Inc.

     

9.25%, 9/1/19(8)

      580      $ 536,500   

MHGE Parent, LLC/MHGE Parent Finance, Inc.

     

8.50%, 8/1/19(8)(10)

      30        30,450   

Tribune Media Co.

     

5.875%, 7/15/22

      60        60,900   
                     
      $ 627,850   
                     

Radio and Television — 0.4%

  

Clear Channel Worldwide Holdings, Inc.

     

Series A, 6.50%, 11/15/22

      50      $ 49,000   

Series B, 6.50%, 11/15/22

      100        100,875   

iHeartCommunications, Inc.

     

9.00%, 12/15/19

      953        751,679   

11.25%, 3/1/21

      50        37,875   

Nielsen Co. Luxembourg S.a.r.l. (The)

     

5.50%, 10/1/21(8)

      35        36,531   

Sirius XM Radio, Inc.

     

5.875%, 10/1/20(8)

      25        25,938   

6.00%, 7/15/24(8)

      95        99,750   
 

 

  23   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Security        Principal
Amount*
(000’s omitted)
    Value  

Radio and Television (continued)

  

Starz, LLC/Starz Finance Corp.

     

5.00%, 9/15/19

      70      $ 71,400   

Univision Communications, Inc.

     

6.75%, 9/15/22(8)

      837        893,497   

5.125%, 5/15/23(8)

      30        30,375   
                     
      $ 2,096,920   
                     

Real Estate Investment Trusts (REITs) — 0.0%(9)

  

Communications Sales & Leasing, Inc./CSL Capital LLC

     

8.25%, 10/15/23

      10      $ 9,475   

ESH Hospitality, Inc.

     

5.25%, 5/1/25(8)

      35        34,125   
                     
      $ 43,600   
                     

Retailers (Except Food and Drug) — 0.4%

  

Chinos Intermediate Holdings A, Inc.

     

7.75%, 5/1/19(8)(10)

      36      $ 14,906   

Dollar Tree, Inc.

     

5.25%, 3/1/20(8)

      50        52,360   

5.75%, 3/1/23(8)

      110        116,737   

Fresh Market, Inc. (The)

     

9.75%, 5/1/23(8)

      1,300        1,189,500   

Hot Topic, Inc.

     

9.25%, 6/15/21(8)

      150        151,875   

L Brands, Inc.

     

6.875%, 11/1/35

      65        68,900   

Michaels Stores, Inc.

     

5.875%, 12/15/20(8)

      45        46,913   

Murphy Oil USA, Inc.

     

6.00%, 8/15/23

      140        145,950   

Party City Holdings, Inc.

     

6.125%, 8/15/23(8)

      65        66,625   

Radio Systems Corp.

     

8.375%, 11/1/19(8)

      65        68,412   

Sally Holdings, LLC/Sally Capital, Inc.

     

5.75%, 6/1/22

      55        57,475   

Vista Outdoor, Inc.

     

5.875%, 10/1/23(8)

      40        42,004   
                     
      $ 2,021,657   
                     
Security        Principal
Amount*
(000’s omitted)
    Value  

Road & Rail — 0.0%(9)

  

Watco Cos., LLC/Watco Finance Corp.

     

6.375%, 4/1/23(8)

      45      $ 45,281   
                     
      $ 45,281   
                     

Software and Services — 0.0%(9)

  

IHS, Inc.

     

5.00%, 11/1/22

      60      $ 62,700   

Infor Software Parent, LLC/Infor Software Parent, Inc.

     

7.125%, 5/1/21(8)(10)

      60        50,393   

SunGard Availability Services Capital, Inc.

     

8.75%, 4/1/22(8)

      70        40,075   
                     
      $ 153,168   
                     

Steel — 0.0%(9)

  

ArcelorMittal

     

7.25%, 2/25/22

      25      $ 26,250   

JMC Steel Group, Inc.

     

8.25%, 3/15/18(8)

      65        66,341   
                     
      $ 92,591   
                     

Surface Transport — 0.1%

  

Hertz Corp. (The)

     

6.25%, 10/15/22

      70      $ 69,912   

XPO Logistics, Inc.

     

7.875%, 9/1/19(8)

      195        203,775   

6.50%, 6/15/22(8)

      75        72,375   
                     
      $ 346,062   
                     

Technology — 0.0%(9)

  

Micron Technology, Inc.

     

5.25%, 8/1/23(8)

      20      $ 17,050   

5.625%, 1/15/26(8)

      20        16,400   
                     
      $ 33,450   
                     

Telecommunications — 0.6%

  

Avaya, Inc.

     

9.00%, 4/1/19(8)

      45      $ 33,300   

CenturyLink, Inc.

     

6.75%, 12/1/23

      40        39,150   

CommScope Technologies Finance, LLC

     

6.00%, 6/15/25(8)

      65        66,462   
 

 

  24   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Security        Principal
Amount*
(000’s omitted)
    Value  

Telecommunications (continued)

  

Frontier Communications Corp.

     

6.25%, 9/15/21

      45      $ 42,075   

10.50%, 9/15/22(8)

      15        15,656   

7.625%, 4/15/24

      30        26,550   

6.875%, 1/15/25

      50        41,688   

11.00%, 9/15/25(8)

      65        66,381   

Intelsat Jackson Holdings S.A.

     

7.25%, 10/15/20

      85        59,712   

7.50%, 4/1/21

      5        3,425   

6.625%, 12/15/22

      35        23,713   

Intelsat Luxembourg S.A.

     

7.75%, 6/1/21

      75        22,688   

8.125%, 6/1/23

      90        27,225   

Level 3 Financing, Inc.

     

5.375%, 1/15/24

      25        25,469   

SBA Telecommunications, Inc.

     

5.75%, 7/15/20

      155        160,037   

Sprint Communications, Inc.

     

7.00%, 8/15/20

      680        581,400   

6.00%, 11/15/22

      5        3,775   

Sprint Corp.

     

7.25%, 9/15/21

      60        48,825   

7.875%, 9/15/23

      250        197,500   

7.625%, 2/15/25

      45        34,172   

T-Mobile USA, Inc.

     

6.25%, 4/1/21

      40        42,050   

6.633%, 4/28/21

      50        52,750   

6.731%, 4/28/22

      20        21,050   

6.625%, 4/1/23

      40        42,550   

6.375%, 3/1/25

      35        36,794   

6.50%, 1/15/26

      115        121,972   

Wind Acquisition Finance SA

     

4.999%, 4/30/19(8)(12)

  EUR     550        614,773   

6.50%, 4/30/20(8)

      525        542,062   

3.751%, 7/15/20(8)(12)

  EUR     525        570,998   

Windstream Corp.

     

6.375%, 8/1/23

      40        30,975   

Windstream Services, LLC

     

7.75%, 10/1/21

      80        70,200   
                     
      $ 3,665,377   
                     

Utilities — 0.7%

  

AES Corp. (The)

     

5.50%, 3/15/24

      20      $ 20,294   
Security        Principal
Amount*
(000’s omitted)
    Value  

Utilities (continued)

  

Air Medical Merger Sub Corp.

     

6.375%, 5/15/23(8)

      50      $ 49,125   

Calpine Corp.

     

5.375%, 1/15/23

      55        54,020   

7.875%, 1/15/23(8)

      2,204        2,355,525   

5.75%, 1/15/25

      20        19,425   

5.25%, 6/1/26(8)

      1,150        1,151,437   

Dynegy, Inc.

     

6.75%, 11/1/19

      80        80,600   

7.375%, 11/1/22

      65        63,213   

7.625%, 11/1/24

      55        53,075   
                     
      $ 3,846,714   
                     

Total Corporate Bonds & Notes
(identified cost $57,378,326)

      $ 55,185,139   
                     
Asset-Backed Securities — 6.0%   
     
Security        Principal
Amount
(000’s omitted)
    Value  

ALM Loan Funding, Ltd.

     

Series 2015-16A, Class D, 5.978%, 7/15/27(8)(12)

    $ 1,000      $ 862,823   

Apidos CLO XVII

     

Series 2014-17A, Class B, 3.483%, 4/17/26(8)(12)

      600        585,423   

Series 2014-17A, Class C, 3.933%, 4/17/26(8)(12)

      1,000        910,605   

Series 2014-17A, Class D, 5.383%, 4/17/26(8)(12)

      1,000        811,000   

Apidos CLO XIX

     

Series 2014-19A, Class E, 6.083%, 10/17/26(8)(12)

      2,400        2,059,798   

Apidos CLO XXI

     

Series 2015-21A, Class D, 6.183%, 7/18/27(8)(12)

      1,000        846,232   

Ares CLO, Ltd.

     

Series 2014-32A, Class D, 6.326%, 11/15/25(8)(12)

      2,000        1,706,384   

Series 2015-2A, Class E2, 5.838%, 7/29/26(8)(12)

      1,000        833,215   

Babson CLO, Ltd.

     

Series 2013-IA, Class C, 3.334%, 4/20/25(8)(12)

      500        489,900   

Series 2013-IA, Class D, 4.134%, 4/20/25(8)(12)

      400        370,438   

Series 2013-IA, Class E, 5.034%, 4/20/25(8)(12)

      250        202,627   

Birchwood Park CLO, Ltd.

     

Series 2014-1A, Class E1, 5.728%, 7/15/26(8)(12)

      525        411,404   

Carlyle Global Market Strategies CLO, Ltd.

     

Series 2014-4A, Class E, 5.828%, 10/15/26(8)(12)

      2,000        1,701,826   

Series 2015-5A, Class D, 6.592%, 1/20/28(8)(12)

      500        441,826   

Cent CLO, L.P.

     

Series 2014-22A, Class D, 5.932%, 11/7/26(8)(12)

      1,000        764,203   
 

 

  25   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Security        Principal
Amount
(000’s omitted)
    Value  

Centurion CDO IX Ltd.

     

Series 2005-9A, Class D1, 5.383%, 7/17/19(8)(12)

    $ 750      $ 705,651   

CIFC Funding, Ltd.

     

Series 2013-2A, Class A3L, 3.283%, 4/21/25(8)(12)

      2,925        2,752,008   

Cumberland Park CLO, Ltd.

     

Series 2015-2A, Class E, 5.634%, 7/20/26(8)(12)

      2,025        1,653,724   

Dryden XXVIII Senior Loan Fund

     

Series 2013-28A, Class A3L, 3.326%, 8/15/25(8)(12)

      1,500        1,466,116   

Series 2013-28A, Class B1L, 3.826%, 8/15/25(8)(12)

      640        572,305   

Series 2013-28A, Class B2L, 4.526%, 8/15/25(8)(12)

      430        315,142   

Dryden XL Senior Loan Fund

     

Series 2015-40A, Class E, 6.576%, 8/15/28(8)(12)

      1,000        873,506   

Galaxy CLO, Ltd.

     

Series 2015-21A, Class E1, 6.17%, 1/20/28(8)(12)

      1,000        853,233   

Golub Capital Partners CLO, Ltd.

     

Series 2015-23A, Class E, 6.383%, 5/5/27(8)(12)

      2,000        1,652,832   

Oak Hill Credit Partners, Ltd.

     

Series 2013-8A, Class C, 3.334%, 4/20/25(8)(12)

      450        437,541   

Series 2013-8A, Class D, 4.134%, 4/20/25(8)(12)

      500        455,761   

Series 2015-11A, Class E, 7.334%, 10/20/28(8)(12)

      1,000        921,472   

Octagon Investment Partners XVI Ltd.

     

Series 2013-1A, Class C1, 3.383%, 7/17/25(8)(12)

      1,025        985,736   

Series 2013-1A, Class D, 3.983%, 7/17/25(8)(12)

      1,025        904,444   

Series 2013-1A, Class E, 5.133%, 7/17/25(8)(12)

      1,225        897,305   

Octagon Investment Partners XXIII, Ltd.

     

Series 2015-1A, Class E2, 7.128%, 7/15/27(8)(12)

      2,000        1,829,098   

Palmer Square CLO, Ltd.

     

Series 2015-2A, Class D, 6.084%, 7/20/27(8)(12)

      1,200        1,017,143   

Race Point CLO, Ltd.

     

Series 2012-7A, Class D, 4.882%, 11/8/24(8)(12)

      1,750        1,652,495   

Recette CLO, LLC

     

Series 2015-1A, Class E, 6.334%, 10/20/27(8)(12)

      1,000        856,872   

Ziggurat CLO, Ltd.

     

Series 2014-1A, Class E, 5.633%, 10/17/26(8)(12)

      2,000        1,461,042   
                     

Total Asset-Backed Securities
(identified cost $38,492,727)

      $ 35,261,130   
                     
Common Stocks — 1.1%      
     
Security        Shares     Value  

Aerospace and Defense — 0.1%

  

IAP Global Services, LLC(3)(13)(14)

      58      $ 701,379   
                     
      $ 701,379   
                     
Security        Shares     Value  

Automotive — 0.1%

  

Dayco Products, LLC(13)(14)

      20,780      $ 696,130   
                     
      $ 696,130   
                     

Building and Development — 0.1%

  

Panolam Holdings Co.(3)(14)(15)

      280      $ 243,609   
                     
      $ 243,609   
                     

Business Equipment and Services — 0.1%

  

Education Management Corp.(3)(13)(14)

      3,569,737      $ 0   

RCS Capital Corp.(13)(14)

      63,815        382,888   
                     
      $ 382,888   
                     

Health Care — 0.1%

  

New Millennium Holdco, Inc.(13)(14)

      68,551      $ 269,920   
                     
      $ 269,920   
                     

Lodging and Casinos — 0.1%

  

Tropicana Entertainment, Inc.(13)(14)

      37,016      $ 729,215   
                     
      $ 729,215   
                     

Oil and Gas — 0.0%(9)

  

Southcross Holdings Group, LLC(3)(13)(14)

      67      $ 0   

Southcross Holdings L.P., Class A(13)(14)

      67        23,994   
                     
      $ 23,994   
                     

Publishing — 0.5%

  

ION Media Networks, Inc.(3)(13)(14)

      4,429      $ 2,209,983   

MediaNews Group, Inc.(3)(13)(14)

      29,104        948,210   

Nelson Education, Ltd.(3)(13)(14)

      54,585        0   
                     
      $ 3,158,193   
                     

Total Common Stocks
(identified cost $2,718,268)

      $ 6,205,328   
                     
Convertible Preferred Stocks — 0.0%(9)   
     
Security        Shares     Value  

Business Equipment and Services — 0.0%(9)

  

Education Management Corp., Series A-1, 7.50%(3)(13)(14)

      3,972      $ 35,192   
                     

Total Convertible Preferred Stocks
(identified cost $280,330)

      $ 35,192   
                     
 

 

  26   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

Closed-End Funds — 2.1%      
     
Security        Shares     Value  

BlackRock Floating Rate Income Strategies Fund, Inc.

      111,292      $ 1,487,974   

Invesco Senior Income Trust

      538,147        2,227,929   

Nuveen Credit Strategies Income Fund

      406,731        3,316,891   

Nuveen Floating Rate Income Fund

      164,907        1,724,927   

Nuveen Floating Rate Income Opportunity Fund

      115,017        1,203,078   

Voya Prime Rate Trust

      441,753        2,252,941   
                     

Total Closed-End Funds
(identified cost $13,551,541)

   

  $ 12,213,740   
                     
Miscellaneous — 0.0%(9)      
     
Security        Principal
Amount/
Shares
    Value  

Lodging and Casinos — 0.0%(9)

  

Buffalo Thunder Development Authority, Residual Claim Certificates, Expires 11/15/29(8)(14)

    $ 110,685      $ 55   
                     
      $ 55   
                     

Oil and Gas — 0.0%

  

SemGroup Corp., Escrow Certificate(3)(14)

      605,000      $ 0   
                     
      $ 0   
                     

Total Miscellaneous
(identified cost $0)

      $ 55   
                     
Short-Term Investments — 1.7%      
     
Description        Interest
(000’s omitted)
    Value  

Eaton Vance Cash Reserves Fund, LLC, 0.51%(16)

    $ 9,882      $ 9,881,589   
                     

Total Short-Term Investments
(identified cost $9,881,589)

   

  $ 9,881,589   
                     

Total Investments — 153.5%
(identified cost $937,053,838)

   

  $ 897,872,096   
                     

Less Unfunded Loan Commitments — (0.2)%

  

  $ (950,202
                     

Net Investments — 153.3%
(identified cost $936,103,636)

   

  $ 896,921,894   
                     

Notes Payable — (39.6)%

  

  $ (232,000,000
                     

Variable Rate Term Preferred Shares, at Liquidation Value — (13.7)%

  

  $ (80,000,000
                     

Other Assets, Less Liabilities — 0.0%(9)

    $ 179,052   
                     

Net Assets Applicable to Common Shares — 100.0%

      $ 585,100,946   
                     

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

 

  * In U.S. dollars unless otherwise indicated.

 

  (1) 

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. The stated interest rate represents the weighted average interest rate of all contracts within the senior loan facility and includes commitment fees on unfunded loan commitments, if any. Senior Loans typically have rates of interest which are redetermined either daily, monthly, quarterly or semi-annually by reference to a base lending rate, plus a premium. These base lending rates are primarily the London Interbank Offered Rate (“LIBOR”) and secondarily, the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit (“CD”) rate or other base lending rates used by commercial lenders.

 

  (2) 

This Senior Loan will settle after May 31, 2016, at which time the interest rate will be determined.

 

  (3) 

For fair value measurement disclosure purposes, security is categorized as Level 3 (see Note 12).

 

  (4) 

Currently the issuer is in default with respect to interest and/or principal payments. For a variable rate security, interest rate has been adjusted to reflect non-accrual status.

 

  (5) 

Unfunded or partially unfunded loan commitments. See Note 1G for description.

 

  (6) 

Includes new money preferred shares that trade with the loan.

 

  (7) 

Includes Vivarte Class A preferred shares and Luxco ordinary shares that trade with the loan.

 

 

  27   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Portfolio of Investments — continued

 

 

 

  (8) 

Security exempt from registration pursuant to Rule 144A under 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 May 31, 2016, the aggregate value of these securities is $62,382,185 or 10.7% of the Trust’s net assets applicable to common shares.

 

  (9) 

Amount is less than 0.05%.

 

(10) 

Represents a payment-in-kind security which may pay interest in additional principal at the issuer’s discretion. For corporate bonds, the interest rate paid in additional principal is generally higher than the indicated cash rate.

 

(11) 

Security converts to floating rate after the indicated fixed-rate coupon period.

(12) 

Variable rate security. The stated interest rate represents the rate in effect at May 31, 2016.

 

(13) 

Security was acquired in connection with a restructuring of a Senior Loan and may be subject to restrictions on resale.

 

(14) 

Non-income producing security.

 

(15) 

Restricted security (see Note 7).

 

(16) 

Affiliated investment company, available to Eaton Vance portfolios and funds, which invests in high quality, U.S. dollar denominated money market instruments. The rate shown is the annualized seven-day yield as of May 31, 2016.

 

 

Forward Foreign Currency Exchange Contracts  
Currency Purchased     Currency Sold      Counterparty    Settlement
Date
     Unrealized
Appreciation
     Unrealized
(Depreciation)
 
USD     8,014,075      EUR     7,106,573       HSBC Bank USA, N.A.      6/30/16       $ 99,213       $   
USD     7,296,246      GBP     5,080,279       Goldman Sachs International      6/30/16                 (63,250
USD     1,446,332      GBP     995,000       State Street Bank and Trust Company      6/30/16         4,935           
USD     7,577,458      EUR     6,686,319       Goldman Sachs International      7/29/16         123,396           
USD     3,452,485      GBP     2,373,674       State Street Bank and Trust Company      7/29/16         13,297           
USD     2,442,728      CAD     3,173,201       State Street Bank and Trust Company      8/31/16         22,697           
USD     4,039,804      EUR     3,600,795       State Street Bank and Trust Company      8/31/16         20,949           
USD     1,762,297      GBP     1,201,793       JPMorgan Chase Bank, N.A.      8/31/16         20,591           
                                       $ 305,078       $ (63,250

Abbreviations:

 

DIP     Debtor In Possession
PIK     Payment In Kind

Currency Abbreviations:

 

CAD     Canadian Dollar
EUR     Euro
GBP     British Pound Sterling
USD     United States Dollar

 

  28   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Statement of Assets and Liabilities

 

 

Assets   May 31, 2016  

Unaffiliated investments, at value (identified cost, $926,222,047)

  $ 887,040,305   

Affiliated investment, at value (identified cost, $9,881,589)

    9,881,589   

Cash

    7,614,662   

Restricted cash*

    320,000   

Foreign currency, at value (identified cost, $37,460)

    37,413   

Interest and dividends receivable

    5,474,535   

Interest receivable from affiliated investment

    4,690   

Receivable for investments sold

    1,003,964   

Receivable for open forward foreign currency exchange contracts

    305,078   

Prepaid upfront fees on variable rate term preferred shares

    132,267   

Prepaid upfront fees on notes payable

    245,284   

Prepaid expenses

    29,560   

Total assets

  $ 912,089,347   
Liabilities        

Notes payable

  $ 232,000,000   

Variable rate term preferred shares, at liquidation value

    80,000,000   

Payable for investments purchased

    13,629,309   

Payable for open forward foreign currency exchange contracts

    63,250   

Payable to affiliates:

 

Investment adviser fee

    568,883   

Trustees’ fees

    8,027   

Interest expense and fees payable

    443,250   

Accrued expenses

    275,682   

Total liabilities

  $ 326,988,401   

Net assets applicable to common shares

  $ 585,100,946   
Sources of Net Assets        

Common shares, $0.01 par value, unlimited number of shares authorized, 39,863,690 shares issued and outstanding

  $ 398,637   

Additional paid-in capital

    747,871,292   

Accumulated net realized loss

    (125,913,060

Accumulated undistributed net investment income

    1,785,277   

Net unrealized depreciation

    (39,041,200

Net assets applicable to common shares

  $ 585,100,946   
Net Asset Value Per Common Share        

($585,100,946 ÷ 39,863,690 common shares issued and outstanding)

  $ 14.68   

 

* Represents restricted cash on deposit at the custodian for open forward foreign currency exchange contracts.

 

  29   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Statement of Operations

 

 

Investment Income  

Year Ended

May 31, 2016

 

Interest and other income

  $ 48,666,571   

Dividends

    851,157   

Interest allocated from affiliated investment

    33,519   

Expenses allocated from affiliated investment

    (1,579

Total investment income

  $ 49,549,668   
Expenses        

Investment adviser fee

  $ 6,970,567   

Trustees’ fees and expenses

    51,788   

Custodian fee

    344,048   

Transfer and dividend disbursing agent fees

    17,994   

Legal and accounting services

    252,802   

Printing and postage

    77,599   

Amortization of deferred offering costs

    90,144   

Interest expense and fees

    5,415,456   

Miscellaneous

    128,340   

Total expenses

  $ 13,348,738   

Deduct —

 

Reduction of custodian fee

  $ 17   

Total expense reductions

  $ 17   

Net expenses

  $ 13,348,721   

Net investment income

  $ 36,200,947   
Realized and Unrealized Gain (Loss)        

Net realized gain (loss) —

 

Investment transactions

  $ (17,226,266

Investment transactions allocated from affiliated investment

    37   

Foreign currency and forward foreign currency exchange contract transactions

    428,142   

Net realized loss

  $ (16,798,087

Change in unrealized appreciation (depreciation) —

 

Investments

  $ (22,219,618

Foreign currency and forward foreign currency exchange contracts

    515,208   

Net change in unrealized appreciation (depreciation)

  $ (21,704,410

Net realized and unrealized loss

  $ (38,502,497

Net decrease in net assets from operations

  $ (2,301,550

 

  30   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Statements of Changes in Net Assets

 

 

    Year Ended May 31,  
Increase (Decrease) in Net Assets   2016     2015  

From operations —

   

Net investment income

  $ 36,200,947      $ 35,156,685   

Net realized gain (loss) from investment, foreign currency and forward foreign currency exchange contract transactions

    (16,798,087     4,513,875   

Net change in unrealized appreciation (depreciation) from investments, foreign currency and forward foreign currency exchange contracts

    (21,704,410     (21,791,821

Net increase (decrease) in net assets from operations

  $ (2,301,550   $ 17,878,739   

Distributions to common shareholders —

   

From net investment income

  $ (36,036,776   $ (35,518,548

Total distributions to common shareholders

  $ (36,036,776   $ (35,518,548

Net decrease in net assets

  $ (38,338,326   $ (17,639,809
Net Assets Applicable to Common Shares                

At beginning of year

  $ 623,439,272      $ 641,079,081   

At end of year

  $ 585,100,946      $ 623,439,272   

Accumulated undistributed net investment income

included in net assets applicable to common shares

               

At end of year

  $ 1,785,277      $ 687,522   

 

  31   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Statement of Cash Flows

 

 

Cash Flows From Operating Activities  

Year Ended

May 31, 2016

 

Net decrease in net assets from operations

  $ (2,301,550

Adjustments to reconcile net decrease in net assets from operations to net cash provided by operating activities:

 

Investments purchased

    (272,011,499

Investments sold and principal repayments

    327,388,507   

Increase in short-term investments, net

    (3,896,315

Net amortization/accretion of premium (discount)

    (1,632,326

Amortization of deferred offering costs and prepaid upfront fees on variable rate term preferred shares

    225,008   

Amortization of prepaid upfront fees on notes payable

    310,344   

Increase in restricted cash

    (320,000

Decrease in interest and dividends receivable

    311,057   

Increase in interest receivable from affiliated investment

    (3,222

Increase in receivable for open forward foreign currency exchange contracts

    (284,196

Decrease in prepaid expenses

    6,182   

Decrease in payable for open forward foreign currency exchange contracts

    (302,585

Decrease in payable to affiliate for investment adviser fee

    (65,164

Increase in payable to affiliate for Trustees’ fees

    41   

Increase in interest expense and fees payable

    52,317   

Increase in accrued expenses

    52,226   

Increase in unfunded loan commitments

    950,202   

Net change in unrealized (appreciation) depreciation from investments

    22,219,618   

Net realized (gain) loss from investments

    17,226,266   

Net cash provided by operating activities

  $ 87,924,911   
Cash Flows From Financing Activities        

Distributions paid to common shareholders, net of reinvestments

  $ (36,036,776

Payment of prepaid upfront fees on variable rate term preferred shares

    (120,000

Payment of prepaid upfront fees on notes payable

    (310,000

Proceeds from notes payable

    23,000,000   

Repayments of notes payable

    (81,000,000

Net cash used in financing activities

  $ (94,466,776

Net decrease in cash*

  $ (6,541,865

Cash at beginning of year(1)

  $ 14,193,940   

Cash at end of year(1)

  $ 7,652,075   
Supplemental disclosure of cash flow information:        

Cash paid for interest and fees on borrowings and variable rate term preferred shares

  $ 5,347,931   

 

* Includes net change in unrealized appreciation (depreciation) on foreign currency of $(71).

 

(1) 

Balance includes foreign currency, at value.

 

  32   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Financial Highlights

 

Selected data for a common share outstanding during the periods stated

 

    Year Ended May 31,  
     2016     2015     2014     2013     2012  

Net asset value — Beginning of year (Common shares)

  $ 15.640      $ 16.080      $ 16.300      $ 15.510      $ 15.900   
Income (Loss) From Operations   

Net investment income(1)

  $ 0.908      $ 0.882      $ 0.889      $ 1.058      $ 1.034   

Net realized and unrealized gain (loss)

    (0.964     (0.431     (0.145     0.707        (0.368

Distributions to APS shareholders —

         

From net investment income(1)

                         (0.024     (0.032

Discount on redemption and repurchase of APS(1)

                         0.036          

Total income (loss) from operations

  $ (0.056   $ 0.451      $ 0.744      $ 1.777      $ 0.634   
Less Distributions to Common Shareholders   

From net investment income

  $ (0.904   $ (0.891   $ (0.966   $ (1.041   $ (1.024

Total distributions to common shareholders

  $ (0.904   $ (0.891   $ (0.966   $ (1.041   $ (1.024

Premium from common shares sold through shelf offering (see Note 6)(1)

  $      $      $ 0.002      $ 0.054      $   

Net asset value — End of year (Common shares)

  $ 14.680      $ 15.640      $ 16.080      $ 16.300      $ 15.510   

Market value — End of year (Common shares)

  $ 13.560      $ 14.360      $ 15.180      $ 16.680      $ 15.790   

Total Investment Return on Net Asset Value(2)

    0.46     3.43     4.87     12.15     4.43

Total Investment Return on Market Value(2)

    1.14     0.59     (3.19 )%      12.66     3.13

 

  33   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Year Ended May 31,  
Ratios/Supplemental Data   2016     2015     2014     2013     2012  

Net assets applicable to common shares, end of year (000’s omitted)

  $ 585,101      $ 623,439      $ 641,079      $ 646,842      $ 582,011   

Ratios (as a percentage of average daily net assets applicable to common shares):

         

Expenses excluding interest and fees(3)

    1.36     1.37     1.36     1.38 %(4)      1.28 %(4) 

Interest and fee expense(5)

    0.93     0.80     0.77     0.66     0.58

Total expenses(3)

    2.29     2.17     2.13     2.04 %(4)      1.86 %(4) 

Net investment income

    6.22     5.60     5.50     6.61 %(4)      6.73 %(4) 

Portfolio Turnover

    29     32     35     47     38

Senior Securities:

         

Total notes payable outstanding (in 000’s)

  $ 232,000      $ 290,000      $ 300,000      $ 290,000      $ 260,000   

Asset coverage per $1,000 of notes payable(6)

  $ 3,867      $ 3,426      $ 3,404      $ 3,506      $ 3,546   

Total preferred shares outstanding(7)

    800        800        800        800        3,200   

Asset coverage per preferred share(7)(8)

  $ 287,532      $ 268,497      $ 268,705      $ 274,822      $ 67,796   

Involuntary liquidation preference per preferred share(7)(9)

  $ 100,000      $ 100,000      $ 100,000      $ 100,000      $ 25,000   

Approximate market value per preferred share(7)(9)

  $ 100,000      $ 100,000      $ 100,000      $ 100,000      $ 25,000   

 

(1) 

Computed using average common shares outstanding.

 

(2) 

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.

 

(3) 

Excludes the effect of custody fee credits, if any, of less than 0.005%.

 

(4) 

Ratios do not reflect the effect of dividend payments to APS shareholders.

 

(5) 

Interest and fee expense relates to variable rate term preferred shares (see Note 2) and the notes payable, primarily incurred to redeem the Trust’s APS (see Note 9).

 

(6) 

Calculated by subtracting the Trust’s total liabilities (not including the notes payable and preferred shares) from the Trust’s total assets, and dividing the result by the notes payable balance in thousands.

 

(7) 

Preferred shares represent variable rate term preferred shares as of May 31, 2016, 2015, 2014 and 2013 and APS as of May 31, 2012.

 

(8) 

Calculated by subtracting the Trust’s total liabilities (not including the notes payable and 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 preferred shares, and multiplying the result by the liquidation value of one preferred share. Such amount equates to 288%, 268%, 269%, 275%, 271% and 287% at May 31, 2016, 2015, 2014, 2013 and 2012, respectively.

 

(9) 

Plus accumulated and unpaid dividends.

 

 

Ratios based on net assets applicable to common shares plus preferred shares (variable rate term preferred shares and APS, as applicable) and borrowings are presented below. Ratios do not reflect the effect of dividend payments to APS shareholders and exclude the effect of custody fee credits, if any.

 

    Year Ended May 31,  
     2016      2015      2014      2013      2012  

Expenses excluding interest and fees

    0.86      0.85      0.85      0.89      0.81

Interest and fee expense

    0.58      0.50      0.49      0.42      0.37

Total expenses

    1.44      1.35      1.34      1.31      1.18

Net investment income

    3.90      3.50      3.46      4.23      4.28

 

APS     Auction Preferred Shares

 

  34   See Notes to Financial Statements.


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Notes to Financial Statements

 

 

1  Significant Accounting Policies

Eaton Vance Floating-Rate Income 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 objective is to provide a high level of current income. The Trust will, as a secondary objective, also seek preservation of capital to the extent consistent with its primary goal of high current income.

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 (including short-term obligations with a remaining maturity of more than sixty days) 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 asked 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 obligations purchased with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates market 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 asked prices therefore on the exchange where such securities are principally traded. Equity securities listed on the NASDAQ Global or Global Select Market generally 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 asked 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.

Derivatives. Forward foreign currency exchange contracts are generally valued at the mean of the average bid and average asked prices that are reported by currency dealers to a third party pricing service at the valuation time. Such third party pricing service valuations are supplied for specific settlement periods and the Trust’s forward foreign currency exchange contracts are valued at an interpolated rate between the closest preceding and subsequent settlement period reported by the third party pricing service.

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.

Affiliated Fund. The Trust may invest in Eaton Vance Cash Reserves Fund, LLC (Cash Reserves Fund), an affiliated investment company managed by Eaton Vance Management (EVM). The value of the Trust’s investment in Cash Reserves Fund reflects the Trust’s proportionate interest in its net assets. Cash Reserves Fund generally values its investment securities utilizing the amortized cost valuation technique in accordance with Rule 2a-7 under the 1940 Act. This technique involves initially valuing a portfolio security at its cost and thereafter assuming a constant amortization to maturity of any discount or premium. If amortized cost is determined not to approximate fair value, Cash Reserves Fund may value its investment securities in the same manner as debt obligations described above.

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 fairly reflects the security’s value, or the amount that

 

  35  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Notes to Financial Statements — continued

 

 

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 condition, 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. Distributions from investment companies are recorded as dividend income, capital gains or return of capital based on the nature of the distribution.

D  Federal Taxes — The Trust’s policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its net investment income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary.

As of May 31, 2016, 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  Expense Reduction — State Street Bank and Trust Company (SSBT) serves as custodian of the Trust. Pursuant to the custodian agreement, SSBT receives a fee that may be reduced by credits, which are determined based on the average daily cash balance the Trust maintains with SSBT. All credit balances, if any, used to reduce the Trust’s custodian fees are reported as a reduction of expenses in the Statement of Operations. Effective September 1, 2015, SSBT began imposing fees on certain uninvested cash balances and discontinued credits on cash deposit balances.

F  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.

G  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 May 31, 2016, the Trust had sufficient cash and/or securities to cover these commitments.

H  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.

I  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 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.

J  Forward Foreign Currency Exchange Contracts — The Trust may enter into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date. The forward foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded as unrealized until such time as the contracts have been closed. Risks may arise upon entering these contracts from the potential inability of counterparties to meet the terms of their contracts and from movements in the value of a foreign currency relative to the U.S. dollar.

K  When-Issued Securities and Delayed Delivery Transactions — The Trust may purchase securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. At the time the transaction is negotiated, the price of the security that will be delivered is fixed. The Trust maintains cash and/or security positions for these commitments such that sufficient liquid assets will be available to

 

  36  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Notes to Financial Statements — continued

 

 

make payments upon settlement. Securities purchased on a delayed delivery or when-issued basis are marked-to-market daily and begin earning interest on settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

L  Statement of Cash Flows — The cash amount shown in the Statement of Cash Flows of the Trust is the amount included in the Trust’s Statement of Assets and Liabilities and represents the unrestricted cash on hand at its custodian and does not include any short-term investments.

2  Variable Rate Term Preferred Shares

On December 18, 2012, the Trust issued 800 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), all of which are outstanding at May 31, 2016. The Trust used the net proceeds from the issuance to enter into a series of transactions which resulted in a redemption and/or repurchase of its Auction Preferred Shares.

The VRTP Shares are a form of preferred shares that represent stock of the Trust. The VRTP Shares have a par value of $0.01 per share, a liquidation preference of $100,000 per share, and a current mandatory redemption date of January 8, 2017, unless extended. The original mandatory redemption date of December 18, 2015 was extended to July 8, 2016 on May 20, 2015 and further extended on December 22, 2015 upon consent of the holders of the VRTP Shares and approval of the Trust’s Board of Trustees. Dividends on the VRTP Shares are determined each day based on a spread of 1.45% to the Conduit’s current cost of funding. Such spread to the cost of funding is determined based on the current credit rating of the VRTP Shares.

The VRTP Shares are 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 are also subject to mandatory redemption at a redemption price equal to $100,000 per share, plus accumulated and unpaid dividends, if the Trust is in default for an extended period on its asset maintenance or leverage ratio requirements with respect to the VRTP Shares. Six months prior to the mandatory redemption date, the Trust is required to segregate in a liquidity account with its custodian investments equal to 110% of the VRTP Shares’ redemption price, and over the six month period execute a series of liquidation transactions to assure sufficient liquidity to redeem the VRTP Shares. The holders of the VRTP Shares, voting as a class, are entitled to elect two Trustees of the Trust. If the dividends on the VRTP Shares remain unpaid in an amount equal to two full years’ dividends, the holders of the VRTP Shares as a class have the right to elect a majority of the Board of Trustees.

For financial reporting purposes, the liquidation value of the VRTP Shares is presented as a liability on the Statement of Assets and Liabilities and unpaid dividends are included in interest expense and fees payable. 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. Costs incurred by the Trust in connection with its offering of VRTP Shares were capitalized as deferred offering costs and were amortized over a period of three years to the original mandatory redemption date of December 18, 2015. In connection with the issuance of VRTP Shares, the Trust paid an initial upfront fee to the Conduit of $400,000 that prior to the extension of the mandatory redemption date, was being amortized to interest expense and fees over a period of three years. In connection with the subsequent extensions of the mandatory redemption date, the Trust paid additional upfront fees of $194,074 which, together with the unamortized portion of the initial upfront fee, are being amortized over the remaining term of the VRTP Shares to January 8, 2017. The unamortized amounts as of May 31, 2016 are presented as prepaid upfront fees on VRTP Shares on the Statement of Assets and Liabilities. The carrying amount of the VRTP Shares at May 31, 2016 represents its liquidation value, which approximates fair value. If measured at fair value, the VRTP Shares would have been considered as Level 2 in the fair value hierarchy (see Note 12) at May 31, 2016.

The average liquidation preference of the VRTP Shares during the year ended May 31, 2016 was $80,000,000.

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. In addition, at least annually, the Trust intends to distribute all or substantially all of its net realized capital gains (reduced by available capital loss carryforwards from prior years). Distributions to common shareholders are recorded on the ex-dividend date. Dividends to VRTP shareholders are accrued daily and payable monthly. The dividend rate on the VRTP Shares at May 31, 2016 was 2.04%. The amount of dividends accrued and the average dividend rate of the VRTP Shares during the year ended May 31, 2016 were $1,493,253 and 1.87%, respectively.

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.

 

  37  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Notes to Financial Statements — continued

 

 

The tax character of distributions declared, including distributions on VRTP Shares that are treated as interest payments for financial reporting purposes, for the years ended May 31, 2016 and May 31, 2015 was as follows:

 

    Year Ended May 31,  
     2016      2015  

Distributions declared from:

    

Ordinary income

  $ 37,530,029       $ 36,863,119   

During the year ended May 31, 2016, accumulated net realized loss was decreased by $913,036, accumulated undistributed net investment income was increased by $933,584 and paid-in capital was decreased by $1,846,620 due to differences between book and tax accounting, primarily for foreign currency gain (loss), tax straddle transactions, premium amortization, accretion of market discount, defaulted bond interest, investments in partnerships and the treatment of VRTP Shares as equity for tax purposes. These reclassifications had no effect on the net assets or net asset value per share of the Trust.

As of May 31, 2016, the components of distributable earnings (accumulated losses) on a tax basis were as follows:

 

Undistributed ordinary income

  $ 1,921,986   

Capital loss carryforwards and deferred capital losses

  $ (124,966,485

Net unrealized depreciation

  $ (39,987,775

Other temporary differences

  $ (136,709

The differences between components of distributable earnings (accumulated losses) on a tax basis and the amounts reflected in the Statement of Assets and Liabilities are primarily due to wash sales, investments in partnerships, the timing of recognizing distributions to shareholders, premium amortization, accretion of market discount and defaulted bond interest.

At May 31, 2016, the Trust, for federal income tax purposes, had capital loss carryforwards of $107,490,819 and deferred capital losses of $17,475,666, 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. Such capital loss carryforwards will expire on May 31, 2017 ($49,801,677), May 31, 2018 ($40,967,167) and May 31, 2019 ($16,721,975) and their character is short-term. Under tax regulations, capital losses incurred in taxable years beginning after December 2010 are considered deferred capital losses and are treated as arising on the first day of the Trust’s next taxable year, retaining the same short-term or long-term character as when originally deferred. Deferred capital losses are required to be used prior to capital loss carryforwards, which carry an expiration date. As a result of this ordering rule, capital loss carryforwards may be more likely to expire unused. Of the deferred capital losses at May 31, 2016, $1,132,461 are short-term and $16,343,205 are long-term.

The cost and unrealized appreciation (depreciation) of investments of the Trust at May 31, 2016, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

  $ 937,050,211   

Gross unrealized appreciation

  $ 8,579,575   

Gross unrealized depreciation

    (48,707,892

Net unrealized depreciation

  $ (40,128,317

4  Investment Adviser Fee and Other Transactions with Affiliates

The investment adviser fee is earned by EVM as compensation for management and investment advisory services rendered to the Trust. The fee is computed at an annual rate of 0.75% of the Trust’s average daily gross assets and is payable monthly. Gross assets as referred to herein represent net assets plus obligations attributable to investment leverage. For the year ended May 31, 2016, the Trust’s investment adviser fee amounted to $6,970,567. The Trust invests its cash in Cash Reserves Fund. EVM does not currently receive a fee for advisory services provided to Cash Reserves Fund. EVM also serves as administrator of the Trust, but receives no compensation.

 

  38  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Notes to Financial Statements — continued

 

 

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 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 May 31, 2016, 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 and principal repayments on Senior Loans, aggregated $263,292,657 and $323,070,338, respectively, for the year ended May 31, 2016.

6  Common Shares of Beneficial Interest and Shelf Offering

The Trust may issue common shares pursuant to its dividend reinvestment plan. There were no common shares issued by the Trust for the years ended May 31, 2016 and May 31, 2015.

On November 11, 2013, the Board of Trustees of the Trust authorized the repurchase by the Trust of up to 10% of its then currently outstanding common shares in open-market transactions at a discount to net asset value. The repurchase program does not obligate the Trust to purchase a specific amount of shares. There were no repurchases of common shares by the Trust for the years ended May 31, 2016 and May 31, 2015.

Pursuant to a registration statement filed with the SEC, the Trust is authorized to issue up to an additional 5,495,789 common shares through an equity shelf offering program (the “shelf offering”). Under the shelf offering, the Trust, subject to market conditions, may raise additional capital from time to time and in varying amounts and offering methods at a net price at or above the Trust’s net asset value per common share. During the years ended May 31, 2016 and May 31, 2015, there were no shares sold by the Trust pursuant to its shelf offering.

7  Restricted Securities

At May 31, 2016, the Trust owned the following securities (representing less than 0.1% of net assets applicable to common shares) which were restricted as to public resale and not registered under the Securities Act of 1933 (excluding Rule 144A securities). The Trust has various registration rights (exercisable under a variety of circumstances) with respect to these securities. The value of these securities is determined based on valuations provided by brokers when available, or if not available, they are valued at fair value using methods determined in good faith by or at the direction of the Trustees.

 

Description   Date of
Acquisition
    Shares     Cost     Value  

Common Stocks

       

Panolam Holdings Co.

    12/30/09             280      $ 153,860      $ 243,609   

Total Restricted Securities

                  $ 153,860      $ 243,609   

8  Financial Instruments

The Trust may trade in financial instruments with off-balance sheet risk in the normal course of its investing activities. These financial instruments may include forward foreign currency exchange contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment the Trust has in particular classes of financial instruments and do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. A summary of obligations under these financial instruments at May 31, 2016 is included in the Portfolio of Investments. At May 31, 2016, the Trust had sufficient cash and/or securities to cover commitments under these contracts.

The Trust is subject to foreign exchange risk in the normal course of pursuing its investment objective. Because the Trust holds foreign currency denominated investments, the value of these investments and related receivables and payables may change due to future changes in foreign currency exchange rates. To hedge against this risk, the Trust enters into forward foreign currency exchange contracts.

The Trust enters into forward foreign currency exchange contracts that may contain provisions whereby the counterparty may terminate the contract under certain conditions, including but not limited to a decline in the Trust’s net assets below a certain level over a certain period of time, which would trigger a payment by the Trust for those derivatives in a liability position. At May 31, 2016, the fair value of derivatives with credit-related contingent features in a net liability position was $63,250. The aggregate fair value of assets pledged as collateral by the Trust for such liability was $10,000 at May 31, 2016.

 

  39  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Notes to Financial Statements — continued

 

 

The over-the-counter (OTC) derivatives in which the Trust invests are subject to the risk that the counterparty to the contract fails to perform its obligations under the contract. To mitigate this risk, the Trust has entered into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with substantially all its derivative counterparties. An ISDA Master Agreement is a bilateral agreement between the Trust and a counterparty that governs certain OTC derivatives and typically contains, among other things, set-off provisions in the event of a default and/or termination event as defined under the relevant ISDA Master Agreement. Under an ISDA Master Agreement, the Trust may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy or insolvency. Certain ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event the Trust’s net assets decline by a stated percentage or the Trust fails to meet the terms of its ISDA Master Agreements, which would cause the counterparty to accelerate payment by the Trust of any net liability owed to it.

The collateral requirements for derivatives traded under an ISDA Master Agreement are governed by a Credit Support Annex to the ISDA Master Agreement. Collateral requirements are determined at the close of business each day and are typically based on changes in market values for each transaction under an ISDA Master Agreement and netted into one amount for such agreement. Generally, the amount of collateral due from or to a counterparty is subject to a minimum transfer threshold amount before a transfer is required, which may vary by counterparty. Collateral pledged for the benefit of the Trust and/or counterparty is held in segregated accounts by the Trust’s custodian and cannot be sold, re-pledged, assigned or otherwise used while pledged. The portion of such collateral representing cash, if any, is reflected as restricted cash and, in the case of cash pledged by a counterparty for the benefit of the Trust, a corresponding liability on the Statement of Assets and Liabilities. Securities pledged by the Trust as collateral, if any, are identified as such in the Portfolio of Investments.

The fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) and whose primary underlying risk exposure is foreign exchange risk at May 31, 2016 was as follows:

 

    Fair Value  
Derivative   Asset Derivative      Liability Derivative  

Forward foreign currency exchange contracts

  $ 305,078 (1)     $ (63,250 )(2) 

 

(1) 

Statement of Assets and Liabilities location: Receivable for open forward foreign currency exchange contracts; Net unrealized depreciation.

 

(2) 

Statement of Assets and Liabilities location: Payable for open forward foreign currency exchange contracts; Net unrealized depreciation.

The Trust’s derivative assets and liabilities at fair value by type, which are reported gross in the Statement of Assets and Liabilities, are presented in the table above. The following tables present the Trust’s derivative assets and liabilities by counterparty, net of amounts available for offset under a master netting agreement and net of the related collateral received by the Trust for such assets and pledged by the Trust for such liabilities as of May 31, 2016.

 

Counterparty   Derivative
Assets Subject to
Master Netting
Agreement
     Derivatives
Available
for Offset
     Non-cash
Collateral
Received
(a)
     Cash
Collateral
Received
(a)
     Net Amount
of Derivative
Assets
(b)
 

Goldman Sachs International

  $ 123,396       $ (63,250    $         —       $         —       $ 60,146   

HSBC Bank USA, N.A.

    99,213                                 99,213   

JPMorgan Chase Bank, N.A.

    20,591                                 20,591   

State Street Bank and Trust Company

    61,878                                 61,878   
    $ 305,078       $ (63,250    $       $       $ 241,828   
             
Counterparty  

Derivative

Liabilities Subject to
Master Netting
Agreement

     Derivatives
Available
for Offset
     Non-cash
Collateral
Pledged
(a)
     Cash
Collateral
Pledged
(a)
     Net Amount
of Derivative
Liabilities
(c)
 

Goldman Sachs International

  $ (63,250    $ 63,250       $       $       $   

 

(a) 

In some instances, the actual collateral received and/or pledged may be more than the amount shown due to overcollateralization.

 

  40  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Notes to Financial Statements — continued

 

 

 

(b) 

Net amount represents the net amount due from the counterparty in the event of default.

 

(c) 

Net amount represents the net amount payable to the counterparty in the event of default.

The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations and whose primary underlying risk exposure is foreign exchange risk for the year ended May 31, 2016 was as follows:

 

Derivative   Realized Gain (Loss)
on Derivatives Recognized
in Income
(1)
     Change in Unrealized
Appreciation (Depreciation) on
Derivatives Recognized in Income
(2)
 

Forward foreign currency exchange contracts

    596,886         586,781   

 

(1) 

Statement of Operations location: Net realized gain (loss) – Foreign currency and forward foreign currency exchange contract transactions.

 

(2) 

Statement of Operations location: Change in unrealized appreciation (depreciation) – Foreign currency and forward foreign currency exchange contracts.

The average notional amount of forward foreign currency exchange contracts outstanding during the year ended May 31, 2016, which is indicative of the volume of this derivative type, was approximately $42,205,000.

9  Revolving Credit and Security Agreement

The Trust has entered into a Revolving Credit and Security Agreement, as amended (the Agreement) with conduit lenders and a bank to borrow up to $310 million. Borrowings under the Agreement are secured by the assets of the Trust. Interest is charged at a rate above the conduits’ commercial paper issuance rate and is payable monthly. Under the terms of the Agreement, in effect through March 13, 2017, the Trust also pays a program fee of 0.67% per annum on its outstanding borrowings to administer the facility and a liquidity fee of 0.15% (0.25% if the outstanding loan amount is less than or equal to 60% (50% prior to March 15, 2016) of the total facility size) per annum on the borrowing limit under the Agreement. Program and liquidity fees for the year ended May 31, 2016 totaled $2,294,443 and are included in interest expense and fees on the Statement of Operations. The Trust also paid an upfront fee of $310,000, which is being amortized to interest expense over a period of one year through March 2017. The unamortized balance at May 31, 2016 is approximately $245,000 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 May 31, 2016, the Trust had borrowings outstanding under the Agreement of $232,000,000 at an interest rate of 0.63%. Based on the short-term nature of the borrowings under the Agreement and the variable interest rate, the carrying amount of the borrowings at May 31, 2016 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 12) at May 31, 2016. For the year ended May 31, 2016, the average borrowings under the Agreement and the average interest rate (excluding fees) were $267,081,967 and 0.44%, respectively.

10  Risks Associated with Foreign Investments

Investing in securities issued by companies whose principal business activities are outside the United States may involve significant risks not present in domestic investments. For example, there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Certain foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitation on the removal of funds or other assets of the Trust, political or financial instability or diplomatic and other developments which could affect such investments. Foreign securities markets, while growing in volume and sophistication, are generally not as developed as those in the United States, and securities of some foreign issuers (particularly those located in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker/dealers and issuers than in the United States.

11  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.

 

  41  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Notes to Financial Statements — continued

 

 

12  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 May 31, 2016, the hierarchy of inputs used in valuing the Trust’s investments and open derivative instruments, which are carried at value, were as follows:

 

Asset Description   Level 1      Level 2      Level 3*      Total  

Senior Floating-Rate Loans (Less Unfunded Loan Commitments)

  $       $ 776,613,255       $ 1,526,466       $ 778,139,721   

Corporate Bonds & Notes

            55,161,603         23,536         55,185,139   

Asset-Backed Securities

            35,261,130                 35,261,130   

Common Stocks

    729,215         1,372,932         4,103,181         6,205,328   

Convertible Preferred Stocks

                    35,192         35,192   

Closed-End Funds

    12,213,740                         12,213,740   

Miscellaneous

            55         0         55   

Short-Term Investments

            9,881,589                 9,881,589   

Total Investments

  $ 12,942,955       $ 878,290,564       $ 5,688,375       $ 896,921,894   

Forward Foreign Currency Exchange Contracts

  $       $ 305,078       $       $ 305,078   

Total

  $ 12,942,955       $ 878,595,642       $ 5,688,375       $ 897,226,972   

Liability Description

                                  

Forward Foreign Currency Exchange Contracts

  $       $ (63,250    $       $ (63,250

Total

  $       $ (63,250    $       $ (63,250

 

* None of the unobservable inputs for Level 3 assets, individually or collectively, had a material impact on the Trust.

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 May 31, 2016 is not presented.

At May 31, 2016, there were no investments transferred between Level 1 and Level 2 during the year then ended.

13  Legal Proceedings

In May 2015, the Trust was served with an amended complaint filed in an adversary proceeding in the United States Bankruptcy Court for the Southern District of New York. The adversary proceeding was filed by the Motors Liquidation Company Avoidance Action Trust (“AAT”) against the former holders of a $1.5 billion term loan issued by General Motors Corp. (“GM”) in 2006 (the “Term Loan Lenders”) who received a full repayment of the term loan pursuant to a court order in the GM bankruptcy proceeding. The court order was made with the understanding that the term loan was fully secured at the time of GM’s bankruptcy filing in June 2009. The AAT is seeking (1) a determination from the Bankruptcy Court that the security interest held by the Term Loan Lenders was not perfected at the time GM filed for Chapter 11 Bankruptcy protection and thus the Term Loan Lenders should have been treated in the same manner as GM’s unsecured creditors, (2) disgorgement of any interest payments made to the Term Loan Lenders within ninety days of GM’s filing for Chapter 11 Bankruptcy protection, and (3) disgorgement of the $1.5 billion term loan repayment that was made to the Term Loan Lenders. The value of the payment received under the term loan agreement by the Trust is approximately $4,166,000 (equal to 0.71% of net assets applicable to common shares at May 31, 2016). The Trust cannot predict the outcome of these proceedings or the effect, if any, on the Trust’s net asset value. The attorneys’ fees and costs related to these actions are expensed by the Trust as incurred.

 

  42  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Notes to Financial Statements — continued

 

 

14  Subsequent Event

In June 2016, the redemption date of the VRTP Shares was further extended to April 8, 2017 from January 8, 2017 upon consent of the holders of the VRTP Shares and approval of the Trust’s Board of Trustees.

 

  43  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Report of Independent Registered Public Accounting Firm

 

 

To the Trustees and Shareholders of Eaton Vance Floating-Rate Income Trust:

We have audited the accompanying statement of assets and liabilities of Eaton Vance Floating-Rate Income Trust (the “Trust”), including the portfolio of investments, as of May 31, 2016, and 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, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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. The Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, 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. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities and senior loans owned as of May 31, 2016, by correspondence with the custodian, brokers, and selling or agent banks; where 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.

In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Eaton Vance Floating-Rate Income Trust as of May 31, 2016, 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 five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

Boston, Massachusetts

July 18, 2016

 

  44  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Federal Tax Information (Unaudited)

 

 

The Form 1099-DIV you receive in February 2017 will show the tax status of all distributions paid to your account in calendar year 2016. 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 qualified dividend income for individuals.

Qualified Dividend Income.  For the fiscal year ended May 31, 2016, the Trust designates approximately $15,434, or up to the maximum amount of such dividends allowable pursuant to the Internal Revenue Code, as qualified dividend income eligible for the reduced tax rate of 15%.

 

  45  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Annual Meeting of Shareholders (Unaudited)

 

 

The Fund held its Annual Meeting of Shareholders on March 24, 2016. The following action was taken by the shareholders:

Item 1:  The election of Helen Frame Peters, Valerie A. Mosley and Ralph F. Verni as Class III Trustees of the Fund for a three-year term expiring in 2019. Mr. Verni was elected solely by VRTP shareholders.

 

Nominee for Trustee
Elected by All Shareholders
  Number of Shares  
  For      Withheld  

Helen Frame Peters

    31,989,627         1,890,628   

Valerie A. Mosley

    32,094,296         1,785,959   
Nominee for Trustee
Elected by VRTP Shareholders
  Number of Shares  
  For      Withheld  

Ralph F. Verni

    800         0   

 

  46  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Dividend Reinvestment Plan

 

 

The Trust offers a dividend reinvestment plan (the Plan) pursuant to which shareholders may elect to have dividends and capital gains distributions reinvested in common shares (the Shares) of the Trust. You may elect to participate in the Plan by completing the Dividend Reinvestment Plan Application Form. If you do not participate, you will receive all distributions in cash paid by check mailed directly to you by American Stock Transfer & Trust Company, LLC (AST) as a dividend paying agent. On the distribution payment date, if the net asset value 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 net asset value per Share or 95% of the market price. Otherwise, Shares generally will be purchased on the open market by AST, 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 your Shares be re-registered in your name with the Trust’s transfer agent, American Stock Transfer & Trust Company, LLC or you will not be able to participate.

The Plan Agent’s service fee for handling distributions will be paid by the Trust. Each participant 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 have the Agent 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 Plan Agent. Any inquiries regarding the Plan can be directed to the Plan Agent at 1-866-439-6787.

 

  47  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

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 Income Trust

c/o American Stock Transfer & Trust Company, LLC

P.O. Box 922

Wall Street Station

New York, NY 10269-0560

 

 

Number of Employees

The Trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a diversified, closed-end management investment company and has no employees.

Number of Shareholders

As of May 31, 2016, Trust records indicate that there are 9 registered shareholders and approximately 20,353 shareholders owning the Trust shares in street name, such as through brokers, banks, and financial intermediaries.

If you are a street name shareholder and wish to receive Trust reports directly, which contain important information about the Trust, please write or call:

Eaton Vance Distributors, Inc.

Two International Place

Boston, MA 02110

1-800-262-1122

New York Stock Exchange symbol

The New York Stock Exchange symbol is EFT.

 

  48  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

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 each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuation is approved at least annually by the fund’s board of trustees, including by a vote of 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 of the Boards of Trustees (each a “Board”) of the registered investment companies advised, administered and/or distributed by Eaton Vance Management or its affiliates (the “Eaton Vance Funds”) held on April 26, 2016, the Board, including a majority of the Independent Trustees, voted to approve continuation of existing investment advisory and sub-advisory agreements for the Eaton Vance Funds for an additional one-year period. In voting its approval, the Board relied upon the affirmative recommendation of its Contract Review Committee, which is a committee comprised exclusively of Independent Trustees. Prior to making its recommendation, the Contract Review Committee reviewed information furnished by each adviser to the Eaton Vance Funds (including information specifically requested by the Board) for a series of meetings of the Contract Review Committee held between February and April 2016. The Contract Review Committee also considered information received at prior meetings of the Board and its committees, as relevant to its annual evaluation of the investment advisory and sub-advisory agreements.

The information that the Board considered included, among other things, the following (for funds that invest through one or more underlying portfolio(s), 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 the advisory and related fees paid by each fund with 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 comparable funds;

 

 

A report from an independent data provider comparing the investment performance of each fund (including, where relevant, yield data, Sharpe ratios and information ratios) to the investment performance of comparable funds over various time periods;

 

 

Data regarding investment performance in comparison to benchmark indices and customized groups of peer funds identified by the adviser in consultation with the Board;

 

 

For each fund, comparative information concerning the fees charged and the services provided by each adviser in managing other accounts (including mutual funds, other collective investment funds and institutional accounts) using investment strategies and techniques similar to those used in managing such fund;

 

 

Profitability analyses for each adviser with respect to each fund;

Information about Portfolio Management and Trading

 

 

Descriptions of the investment management services provided to each fund, including the investment strategies and processes it employs;

 

 

The procedures and processes used to determine the fair value of fund assets and actions taken to monitor and test the effectiveness of such procedures and processes;

 

 

Information about each adviser’s policies and practices with respect to trading, including each adviser’s processes for monitoring best execution of portfolio transactions;

 

 

Information about the allocation of brokerage transactions and the benefits received by each adviser as a result of brokerage allocation, including information concerning the acquisition of research through client commission arrangements and policies with respect to “soft dollars”;

 

 

Data relating to portfolio turnover rates of each fund;

Information about each Adviser

 

 

Reports detailing the financial results and condition of each adviser;

 

 

Descriptions of the qualifications, education and experience of the individual investment professionals whose responsibilities include portfolio management and investment research for the funds, and information relating to their compensation and responsibilities with respect to managing other mutual funds and investment accounts;

 

 

The Code of Ethics of each adviser and its affiliates, together with information relating to compliance with and the administration of such codes;

 

 

Policies and procedures relating to proxy voting and the handling of corporate actions and class actions;

 

 

Information concerning the resources devoted to compliance efforts undertaken by each adviser and its affiliates (including descriptions of various compliance programs) and their record of compliance;

 

 

Information concerning the business continuity and disaster recovery plans of each adviser and its affiliates;

 

 

A description of Eaton Vance Management’s procedures for overseeing third party advisers and sub-advisers, including with respect to regulatory and compliance issues, investment management and other matters;

 

  49  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Board of Trustees’ Contract Approval — continued

 

 

Other Relevant Information

 

 

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 management of the relationship with the custodian, subcustodians and fund accountants by each adviser or the funds’ administrator; and

 

 

The terms of each investment advisory agreement.

Over the course of the twelve-month period ended April 30, 2016, with respect to one or more funds, the Board met ten times and the Contract Review Committee, the Audit Committee, the Governance Committee, the Portfolio Management Committee and the Compliance Reports and Regulatory Matters Committee, each of which is a Committee comprised solely of Independent Trustees, met seven, sixteen, four, nine and eleven times, respectively. At such meetings, the Trustees participated in investment and performance reviews with the portfolio managers and other investment professionals of each investment adviser relating to each fund, and considered various investment and trading strategies used in pursuing each fund’s investment objective, such as the use of derivative instruments, as well as risk management techniques. The Board and its Committees also 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 and other fund advisers with respect to such matters. In addition to the formal meetings of the Board and its Committees, the Independent Trustees hold regular teleconferences in between meetings to discuss, among other topics, matters relating to the continuation of investment advisory and sub-advisory agreements.

For funds that invest through one or more underlying portfolios, the Board considered similar information about the portfolio(s) when considering the approval of investment advisory agreements. In addition, in cases where the fund’s investment adviser has engaged a sub-adviser, the Board considered similar information about the sub-adviser when considering the approval of any sub-advisory agreement.

The Contract Review Committee was assisted throughout the contract review process by Goodwin Procter LLP, independent legal counsel for the Independent Trustees. The members of the Contract Review Committee relied upon the advice of such counsel and their own business judgment in determining the material factors to be considered in evaluating each investment advisory and sub-advisory agreement and the weight to be given to each such factor. The conclusions reached with respect to each investment advisory 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 and sub-advisory agreement. In evaluating each investment advisory and sub-advisory agreement, including the specific fee structures and other terms of the agreements, the Contract Review Committee was informed by multiple years of analysis and discussion among the Independent Trustees and the Eaton Vance Funds’ advisers and sub-advisers.

Results of the Process

Based on its consideration of the foregoing, and such other information as it deemed relevant, including the factors and conclusions described below, the Contract Review Committee concluded that the continuation of the investment advisory agreement of Eaton Vance Floating-Rate Income Trust (the “Fund”) with Eaton Vance Management (the “Adviser”), including its fee structure, is in the interests of shareholders and, therefore, the Contract Review Committee recommended to the Board approval of the agreement. The Board accepted the recommendation of the Contract Review Committee based on the material factors considered and conclusions reached by the Contract Review Committee with respect to the agreement. Accordingly, the Board, including a majority of the Independent Trustees, voted to approve continuation of the investment advisory agreement for the Fund.

Nature, Extent and Quality of Services

In considering whether to approve the investment advisory agreement of 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 process with respect to the types of investments held by the Fund, including the education, experience and number of its investment professionals and other personnel who provide portfolio management, investment research, and similar services to the Fund. In particular, the Board considered the abilities and experience of such investment professionals in analyzing factors such as the special considerations relevant to investing in senior floating rate loans. The Board considered the Adviser’s large group of bank loan investment professionals and other personnel who provide services to the Fund, including portfolio managers and analysts. The Board also took into account the resources dedicated to portfolio management and other services, as well as the compensation methods of the Adviser and other factors, such as 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 considered the compliance programs of the Adviser and relevant affiliates thereof. Among other matters, the Board considered compliance and reporting matters relating to personal trading by investment professionals, selective disclosure of portfolio holdings, late trading, frequent trading, 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.

 

  50  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Board of Trustees’ Contract Approval — continued

 

 

The Board considered shareholder and other administrative services provided or managed 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 agreement.

Fund Performance

The Board compared the Fund’s investment performance to that of comparable funds and appropriate benchmark indices, as well as a customized peer group of similarly managed funds. The Board’s review included comparative performance data for the one-, three-, five- and ten-year periods ended September 30, 2015 for the Fund. On the basis of the foregoing and other relevant information provided by the Adviser in response to inquiries from the Contract Review Committee, 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 September 30, 2015, as compared to those of comparable funds, before and after giving effect to any undertaking to waive fees or reimburse expenses. The Board also considered factors that had an impact on Fund expense ratios, as identified by management in response to inquiries from the Contract Review Committee.

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 Other “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 services. The Board also considered other direct or indirect fall-out benefits received by the Adviser and its affiliates in connection with their 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.

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.

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 any benefits from economies of scale. 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. The Board concluded that, in light of the level of the Adviser’s profits with respect to the Fund, the implementation of breakpoints in the advisory fee schedule is not warranted at this time.

 

  51  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Management and Organization

 

 

Fund Management.  The Trustees of Eaton Vance Floating-Rate Income Trust (the Trust) are responsible for the overall management and supervision of the Trust’s affairs. The Trustees and officers of the Trust 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. The “Noninterested Trustees” consist of those Trustees who are not “interested persons” of the Trust, as that term is defined under the 1940 Act. The business address of each Trustee and officer is Two International Place, Boston, Massachusetts 02110. As used below, “EVC” refers to Eaton Vance Corp., “EV” refers to Eaton Vance, Inc., “EVM” refers to Eaton Vance Management, “BMR” refers to Boston Management and Research, “EVMI” refers to Eaton Vance Management (International) Limited and “EVD” refers to Eaton Vance Distributors, Inc. EVC and EV are the corporate parent and trustee, respectively, of EVM and BMR. EVMI is an indirect, wholly-owned subsidiary of EVC. EVD is the Trust’s principal underwriter and a wholly-owned subsidiary of EVC. Each officer affiliated with Eaton Vance may hold a position with other Eaton Vance affiliates that is comparable to his or her position with EVM listed below. Each Trustee oversees 175 portfolios in the Eaton Vance Complex (including all master and feeder funds in a master feeder structure). Each officer serves as an officer of certain other Eaton Vance funds. Each Trustee serves for a three year term. Each officer serves until his or her successor is elected.

 

Name and Year of Birth   

Position(s)

with the
Trust

    

Term Expiring;

Trustee Since(1)

    

Principal Occupation(s) and Directorships

During Past Five Years and Other Relevant Experience

Interested Trustee

            

Thomas E. Faust Jr.

1958

   Class I Trustee     

Until 2017.

Trustee since 2007.

    

Chairman, Chief Executive Officer and President of EVC, Director and President of EV, Chief Executive Officer and President of EVM and BMR, and Director of EVD and EVMI. Trustee and/or officer of 175 registered investment companies. Mr. Faust is an interested person because of his positions with EVM, BMR, EVD, EVMI, EVC and EV, which are affiliates of the Trust.

Directorships in the Last Five Years.(2) Director of EVC and Hexavest Inc. (investment management firm).

            

Noninterested Trustees

Scott E. Eston(A)

1956

   Class I Trustee     

Until 2017.

Trustee since 2011.

    

Private investor. Formerly held various positions at Grantham, Mayo, Van Otterloo and Co., L.L.C. (investment management firm) (1997-2009), including Chief Operating Officer (2002-2009), Chief Financial Officer (1997-2009) and Chairman of the Executive Committee (2002-2008); President and Principal Executive Officer, GMO Trust (open-end registered investment company) (2006-2009). Former Partner, Coopers and Lybrand L.L.P. (now PricewaterhouseCoopers) (an independent registered public accounting firm) (1987-1997).

Directorships in the Last Five Years.(2) None.

Cynthia E. Frost

1961

   Class I Trustee     

Until 2017.

Trustee since 2014.

    

Private investor. Formerly, Chief Investment Officer of Brown University (university endowment) (2000-2012); Portfolio Strategist for Duke Management Company (university endowment manager) (1995-2000); Managing Director, Cambridge Associates (investment consulting company) (1989-1995); Consultant, Bain and Company (management consulting firm) (1987-1989); Senior Equity Analyst, BA Investment Management Company (1983-1985).

Directorships in the Last Five Years. None.

George J. Gorman

1952

   Class II Trustee     

Until 2018.

Trustee since 2014.

    

Principal at George J. Gorman LLC (consulting firm). Formerly, Senior Partner at Ernst & Young LLP (public accounting firm) (1974-2009).

Directorships in the Last Five Years. Formerly, Trustee of the Bank of America Money Market Funds Series Trust (2011-2014) and of the Ashmore Funds (2010-2014).

Valerie A. Mosley

1960

   Class III Trustee     

Until 2019.

Trustee since 2014.

    

Chairwoman and Chief Executive Officer of Valmo Ventures (a consulting and investment firm). Former Partner and Senior Vice President, Portfolio Manager and Investment Strategist at Wellington Management Company, LLP (investment management firm) (1992-2012). Former Chief Investment Officer, PG Corbin Asset Management (1990-1992). Formerly worked in institutional corporate bond sales at Kidder Peabody (1986-1990).

Directorships in the Last Five Years.(2) Director of Dynex Capital, Inc. (mortgage REIT) (since 2013).

 

  52  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Management and Organization — continued

 

 

Name and Year of Birth   

Position(s)

with the
Trust

    

Term Expiring;

Trustee Since(1)

    

Principal Occupation(s) and Directorships

During Past Five Years and Other Relevant Experience

Noninterested Trustees (continued)

William H. Park

1947

   Chairperson of the Board and Class II Trustee     

Until 2018.

Chairperson of the Board since 2016 and Trustee since 2003.

    

Private investor. Formerly, Consultant (management and transactional) (2012-2014). Formerly, Chief Financial Officer, Aveon Group L.P. (investment management firm) (2010-2011). Formerly, Vice Chairman, Commercial Industrial Finance Corp. (specialty finance company) (2006-2010). Formerly, President and Chief Executive Officer, Prizm Capital Management, LLC (investment management firm) (2002-2005). Formerly, Executive Vice President and Chief Financial Officer, United Asset Management Corporation (investment management firm) (1982-2001). Formerly, Senior Manager, Price Waterhouse (now PricewaterhouseCoopers) (an independent registered public accounting firm) (1972-1981).

Directorships in the Last Five Years.(2) None.

Helen Frame Peters

1948

   Class III Trustee     

Until 2019.

Trustee since 2008.

    

Professor of Finance, Carroll School of Management, Boston College. Formerly, Dean, Carroll School of Management, Boston College (2000-2002). Formerly, Chief Investment Officer, Fixed Income, Scudder Kemper Investments (investment management firm) (1998-1999). Formerly, Chief Investment Officer, Equity and Fixed Income, Colonial Management Associates (investment management firm) (1991-1998).

Directorships in the Last Five Years.(2) Formerly, Director of BJ’s Wholesale Club, Inc. (wholesale club retailer) (2004-2011). Formerly, Trustee of SPDR Index Shares Funds and SPDR Series Trust (exchange traded funds) (2000-2009). Formerly, Director of Federal Home Loan Bank of Boston (a bank for banks) (2007-2009).

Susan J. Sutherland

1957

   Class II Trustee     

Until 2018.

Trustee since 2015.

    

Private investor. Formerly, Associate, Counsel and Partner at Skadden, Arps, Slate, Meagher & Flom LLP (law firm) (1982-2013).

Directorships in the Last Five Years. Formerly, Director of Montpelier Re Holdings Ltd. (global provider of customized insurance and reinsurance products) (2013-2015).

Harriett Tee Taggart

1948

   Class II Trustee     

Until 2018.

Trustee since 2011.

    

Managing Director, Taggart Associates (a professional practice firm). Formerly, Partner and Senior Vice President, Wellington Management Company, LLP (investment management firm) (1983-2006).

Directorships in the Last Five Years.(2) Director of Albemarle Corporation (chemicals manufacturer) (since 2007) and The Hanover Group (specialty property and casualty insurance company) (since 2009). Formerly, Director of Lubrizol Corporation (specialty chemicals) (2007-2011).

Ralph F. Verni(A)

1943

   Class III Trustee     

Until 2019.

Trustee since 2005.

    

Consultant and private investor. Formerly, Chief Investment Officer (1982-1992), Chief Financial Officer (1988-1990) and Director (1982-1992), New England Life. Formerly, Chairperson, New England Mutual Funds (1982-1992). Formerly, President and Chief Executive Officer, State Street Management & Research (1992-2000). Formerly, Chairperson, State Street Research Mutual Funds (1992-2000). Formerly, Director, W.P. Carey, LLC (1998-2004) and First Pioneer Farm Credit Corp. (financial services cooperative) (2002-2006).

Directorships in the Last Five Years.(2) None.

            

Principal Officers who are not Trustees

Name and Year of Birth    Position(s)
with the
Trust
    

Officer

Since(3)

    

Principal Occupation(s)

During Past Five Years

Scott H. Page

1959

   President      Since 1996      Vice President of EVM and BMR.

Payson F. Swaffield

1956

   Vice President      Since 2003      Chief Income Investment Officer of EVC. Vice President of EVM and BMR.

Maureen A. Gemma

1960

   Vice President, Secretary and Chief Legal Officer      Since 2005      Vice President of EVM and BMR.

 

  53  


Eaton Vance

Floating-Rate Income Trust

May 31, 2016

 

Management and Organization — continued

 

 

Name and Year of Birth    Position(s)
with the
Trust
    

Officer

Since(3)

    

Principal Occupation(s)

During Past Five Years

Principal Officers who are not Trustees (continued)

James F. Kirchner

1967

   Treasurer      Since 2007      Vice President of EVM and BMR.

Paul M. O’Neil

1953

   Chief Compliance Officer      Since 2004      Vice President of EVM and BMR.

 

(1) 

Year first appointed to serve as Trustee for a fund in the Eaton Vance family of funds. Each Trustee has served continuously since appointment unless indicated otherwise. 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.

(2) 

During their respective tenures, the Trustees (except for Mmes. Frost and Sutherland and Mr. Gorman) also served as Board members of one or more of the following funds (which operated in the years noted): eUnitsTM 2 Year U.S. Market Participation Trust: Upside to Cap / Buffered Downside (launched in 2012 and terminated in 2014); eUnitsTM 2 Year U.S. Market Participation Trust II: Upside to Cap / Buffered Downside (launched in 2012 and terminated in 2014); and Eaton Vance National Municipal Income Trust (launched in 1998 and terminated in 2009). However, Ms. Mosley did not serve as a Board member of eUnitsTM 2 Year U.S. Market Participation Trust: Upside to Cap / Buffered Downside (launched in 2012 and terminated in 2014).

(3) 

Year first elected to serve as officer of a fund in the Eaton Vance family of funds when the officer has served continuously. Otherwise, year of most recent election as an officer of a fund in the Eaton Vance family of funds. Titles may have changed since initial election.

(A) 

VRTP Trustee.

 

  54  


Eaton Vance Funds

 

IMPORTANT NOTICES

 

 

Privacy.  The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy (“Privacy Policy”) with respect to nonpublic personal information about its customers:

 

 

Only such information received from you, through application forms or otherwise, and information about your Eaton Vance fund transactions will be collected. This may include information such as name, address, social security number, tax status, account balances and transactions.

 

 

None of such information about you (or former customers) will be disclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to service your account). In the normal course of servicing a customer’s account, Eaton Vance may share information with unaffiliated third parties that perform various required services such as transfer agents, custodians and broker-dealers.

 

 

Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information.

 

 

We reserve the right to change our Privacy Policy at any time upon proper notification to you. Customers may want to review our Privacy Policy periodically for changes by accessing the link on our homepage: www.eatonvance.com.

Our pledge of privacy applies to the following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance Investment Counsel, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management (International) Limited, Eaton Vance Management’s Real Estate Investment Group and Boston Management and Research. In addition, our Privacy Policy applies only to those Eaton Vance customers who are individuals and who have a direct relationship with us. If a customer’s account (i.e., fund shares) is held in the name of a third-party financial advisor/broker-dealer, it is likely that only such advisor’s privacy policies apply to the customer. This notice supersedes all previously issued privacy disclosures. For more information about Eaton Vance’s Privacy Policy, please call 1-800-262-1122.

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. Eaton Vance, or your financial advisor, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial advisor, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial advisor. Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial advisor.

Portfolio Holdings.  Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) will file a schedule of portfolio holdings on Form N-Q with the SEC for the first and third quarters of each fiscal year. The Form N-Q will be available 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. Form N-Q may also be reviewed and copied at the SEC’s public reference room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the public reference room).

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.

Share Repurchase Program.  The Fund’s Board of Trustees has approved a share repurchase program authorizing the Fund to repurchase up to 10% of its outstanding common shares as of the approved date in open-market transactions at a discount to net asset value. The repurchase program does not obligate the Fund to purchase a specific amount of shares. The Fund’s repurchase activity, including the number of shares purchased, average price and average discount to net asset value, is disclosed in the Fund’s annual and semi-annual reports to shareholders.

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 “Individual Investors — Closed-End Funds”.

 

  55  


 

 

This Page Intentionally Left Blank


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

 

 


LOGO

 

2224    5.31.16    


Item 2. Code of Ethics

The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122.

Item 3. Audit Committee Financial Expert

The registrant’s Board has designated William H. Park, an independent trustee, as its audit committee financial expert. Mr. Park is a certified public accountant who is a private investor. Previously, he served as a consultant, as the Chief Financial Officer of Aveon Group, L.P. (an investment management firm), as the Vice Chairman of Commercial Industrial Finance Corp. (specialty finance company), as President and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm), as Executive Vice President and Chief Financial Officer of United Asset Management Corporation (an institutional investment management firm) and as a Senior Manager at Price Waterhouse (now PricewaterhouseCoopers) (an independent registered public accounting firm).


Item 4. Principal Accountant Fees and Services

Rule 2-01(c)(1)(ii)(A) of Regulation S-X (the “Loan Rule”) prohibits an accounting firm, such as the Fund’s principal accountant, Deloitte & Touche LLP (“D&T”), from having certain financial relationships with their audit clients and affiliated entities. Specifically, the Loan Rule provides, in relevant part, that an accounting firm generally would not be independent if it receives a loan from a lender that is a “record or beneficial owner of more than ten percent of the audit client’s equity securities.” Based on information provided to the Audit Committee of the Board of Trustees (the “Audit Committee”) of the Eaton Vance Family of Funds by D&T, certain relationships between D&T and its affiliates (“Deloitte Entities”) and its lenders who are record owners of shares of one or more funds (the “Funds”) within the Eaton Vance Funds’ investment company complex implicate the Loan Rule, calling into question D&T’s independence with respect to the Funds. The Funds are providing this disclosure to explain the facts and circumstances as well as D&T’s conclusions concerning D&T’s objectivity and impartiality with respect to the audits of the Funds.

D&T advised the Audit Committee that it believes that, in light of the facts surrounding its lending relationships, its ability to exercise objective and impartial judgment on all issues encompassed within D&T’s audit engagement has not been impaired. D&T has advised the Audit Committee that this conclusion is based in part on the following considerations: (1) Deloitte Entity personnel responsible for managing the lending relationships have had no interactions with the audit engagement team; (2) the lending relationships are in good standing and the principal and interest payments are up-to-date; (3) the lending relationships are not significant to the Deloitte Entities or to D&T.

On June 20, 2016, the U.S. Securities and Exchange Commission (the “SEC”) issued no-action relief to another mutual fund complex (see Fidelity Management & Research Company et al., No-Action Letter (June 20, 2016)) related to the auditor independence issue described above. In that letter, the SEC indicated that it would not recommend enforcement action against the fund group if the auditor is not in compliance with the Loan Rule provided that: (1) the auditor has complied with PCAOB Rule 3526(b)(1) and 3526(b)(2); (2) the auditor’s non-compliance under the Loan Rule is with respect to certain lending relationships; and (3) notwithstanding such non-compliance, the auditor has concluded that it is objective and impartial with respect to the issues encompassed within its engagement as auditor of the funds. Based on information provided by D&T, the requirements of the no-action letter appear to be met with respect to D&T’s lending relationships described above. The SEC has indicated that the no-action relief will expire 18 months from its issuance.

(a) –(d)

The following table presents the aggregate fees billed to the registrant for the registrant’s fiscal years ended May 31, 2015 and May 31, 2016 by D&T for professional services rendered for the audit of the registrant’s annual financial statements and fees billed for other services rendered by D&T during such periods

Eaton Vance Floating-Rate Income Trust

 

Fiscal Years Ended

   5/31/15      5/31/16  

Audit Fees

   $ 103,150       $ 106,250   

Audit-Related Fees(1)

   $ 18,000       $ 0   

Tax Fees(2)

   $ 19,920       $ 20,003   

All Other Fees(3)

   $ 0       $ 0   
  

 

 

    

 

 

 

Total

   $ 141,070       $ 126,253   
  

 

 

    

 

 

 

 

(1) Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees and specifically include fees for the performance of certain agreed-upon procedures relating to the registrant’s revolving credit and security agreement.


(2)  Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning and specifically include fees for tax return preparation and other related tax compliance/planning matters.
(3)  All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services.

(e)(1) The registrant’s audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant’s principal accountant (the “Pre-Approval Policies”). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee.

The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant’s audit committee at least annually. The registrant’s audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant’s principal accountant.

(e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant’s audit committee pursuant to the “de minimis exception” set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X.

(f) Not applicable.

(g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed to the registrant by D&T for the registrant’s fiscal years ended May 31, 2015 and May 31, 2016; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed to the Eaton Vance organization by D&T for the same time periods.

 

Fiscal Years Ended

   5/31/15      5/31/16  

Registrant

   $ 37,920       $ 20,003   

Eaton Vance(1)

   $ 76,000       $ 10,434   

 

(1) The investment adviser to the registrant, as well as any of its affiliates that provide ongoing services to the registrant, are subsidiaries of Eaton Vance Corp.

(h) The registrant’s audit committee has considered whether the provision by the registrant’s principal accountant of non-audit services to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants

The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. Ralph F. Verni (Chair), Scott E. Eston, George J. Gorman and William H. Park are the members of the registrant’s audit committee.


Item 6. Schedule of Investments

Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the “Fund Policy”), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund’s investment adviser and adopted the investment adviser’s proxy voting policies and procedures (the “Policies”) which are described below. The Trustees will review the Fund’s proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board’s Special Committee except as contemplated under the Fund Policy. The Board’s Special Committee will instruct the investment adviser on the appropriate course of action.

The Policies are designed to promote accountability of a company’s management to its shareholders and to align the interests of management with those shareholders. An independent proxy voting service (“Agent”), currently Institutional Shareholder Services, Inc., has been retained to assist in the voting of proxies through the provision of vote analysis, implementation and recordkeeping and disclosure services. The investment adviser will generally vote proxies through the Agent. The Agent is required to vote all proxies and/or refer them back to the investment adviser pursuant to the Policies. It is generally the policy of the investment adviser to vote in accordance with the recommendation of the Agent. The Agent shall refer to the investment adviser proxies relating to mergers and restructurings, and the disposition of assets, termination, liquidation and mergers contained in mutual fund proxies. The investment adviser will normally vote against anti-takeover measures and other proposals designed to limit the ability of shareholders to act on possible transactions, except in the case of closed-end management investment companies. The investment adviser generally supports management on social and environmental proposals. The investment adviser may abstain from voting from time to time where it determines that the costs associated with voting a proxy outweighs the benefits derived from exercising the right to vote or the economic effect on shareholders interests or the value of the portfolio holding is indeterminable or insignificant.

In addition, the investment adviser will monitor situations that may result in a conflict of interest between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund by maintaining a list of significant existing and prospective corporate clients. The investment adviser’s personnel responsible for reviewing and voting proxies on behalf of the Fund will report any proxy received or expected to be received from a company included on that list to the personnel of the investment adviser identified in the Policies. If such personnel expects to instruct the Agent to vote such proxies in a manner inconsistent with the guidelines of the Policies or the recommendation of the Agent, the personnel will consult with members of senior management of the investment adviser to determine if a material conflict of interests exists. If it is determined that a material conflict does exist, the investment adviser will seek instruction on how to vote from the Special Committee.

Information on how the Fund voted proxies relating to portfolio securities during the most recent 12 month period ended June 30 is available (1) without charge, upon request, by calling 1-800-262-1122, and (2) on the Securities and Exchange Commission’s website at http://www.sec.gov.


Item 8. Portfolio Managers of Closed-End Management Investment Companies

Eaton Vance Management (“EVM” or “Eaton Vance”) is the investment adviser of the Trust. Ralph H. Hinckley, Jr. and Scott H. Page comprise the investment team responsible for the overall management of the Trust’s investments.

Mr. Hinckley is a Vice President of EVM and has been a portfolio manager of the Trust since January 2008. Mr. Page is a Vice President of EVM, has been a portfolio manager of the Trust since June 2004 and is Co-Director of EVM’s Floating Rate Loan Group. Messrs. Hinckley and Page have managed other Eaton Vance portfolios for more than five years. This information is provided as of the date of filing of this report.

The following table shows, as of the Trust’s most recent fiscal year end, the number of accounts each portfolio manager managed in each of the listed categories and the total assets (in millions of dollars) in the accounts managed within each category. The table also shows the number of accounts with respect to which the advisory fee is based on the performance of the account, if any, and the total assets (in millions of dollars) in those accounts.

 

     Number of
All
Accounts
     Total Assets of
All Accounts
     Number of
Accounts
Paying a
Performance Fee
     Total Assets of
Accounts Paying a
Performance Fee
 

Ralph H. Hinckley, Jr.

           

Registered Investment Companies

     1       $ 896.9         0       $ 0   

Other Pooled Investment Vehicles

     2       $ 6,835.1         0       $ 0   

Other Accounts

     0       $ 0         0       $ 0   

Scott H. Page

           

Registered Investment Companies

     13       $ 21,755.1         0       $ 0   

Other Pooled Investment Vehicles

     12       $ 9,419.6         1       $ 2.4   

Other Accounts

     8       $ 4,209.1         0       $ 0   

The following table shows the dollar range of Trust shares beneficially owned by each portfolio manager as of the Trust’s most recent fiscal year end.

 

Portfolio Manager

   Dollar Range of Equity
Securities Beneficially
Owned
in the Trust

Ralph H. Hinckley, Jr.

   $10,001 - $50,000

Scott H. Page

   $100,001 - $500,000

Potential for Conflicts of Interest. It is possible that conflicts of interest may arise in connection with a portfolio manager’s management of the Trust’s investments on the one hand and investments of other accounts for which a portfolio manager is responsible on the other. For example, a portfolio manager may have conflicts of interest in allocating management time, resources and investment opportunities among the Trust and other accounts he or she advises. In addition, due to differences in the investment strategies or restrictions between


the Trust and the other accounts, a portfolio manager may take action with respect to another account that differs from the action taken with respect to the Trust. In some cases, another account managed by a portfolio manager 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 a portfolio manager in the allocation of management time, resources and investment opportunities. Whenever conflicts of interest arise, a portfolio manager will endeavor to exercise his or her discretion in a manner that he or she believes is equitable to all interested persons. EVM has adopted several policies and procedures designed to address these potential conflicts including a code of ethics and policies which govern the investment adviser’s trading practices, including among other things the aggregation and allocation of trades among clients, brokerage allocation, cross trades and best execution.

Compensation Structure for EVM

Compensation of EVM’s portfolio managers and other investment professionals has three primary components: (1) a base salary, (2) an annual cash bonus, and (3) annual stock-based compensation consisting of options to purchase shares of Eaton Vance Corp.’s (“EVC’s”) nonvoting common stock and restricted shares of EVC’s nonvoting common stock. EVM’s investment professionals also receive certain retirement, insurance and other benefits that are broadly available to EVM’s employees. Compensation of EVM’s investment professionals is reviewed primarily on an annual basis. Cash bonuses, stock-based compensation awards, and adjustments in base salary are typically paid or put into effect at or shortly after the October 31st fiscal year end of EVC.

Method to Determine Compensation. EVM compensates its portfolio managers based primarily on the scale and complexity of their portfolio responsibilities and the total return performance of managed funds and accounts versus the benchmark(s) stated in the prospectus, as well as an appropriate peer group (as described below). In addition to rankings within peer groups of funds on the basis of absolute performance, consideration may also be given to relative risk-adjusted performance. Risk-adjusted performance measures include, but are not limited to, the Sharpe ratio (Sharpe ratio uses standard deviation and excess return to determine reward per unit of risk). Performance is normally based on periods ending on the September 30th preceding fiscal year end. Fund performance is normally evaluated primarily versus peer groups of funds as determined by Lipper Inc. and/or Morningstar, Inc. When a fund’s peer group as determined by Lipper or Morningstar is deemed by EVM’s management not to provide a fair comparison, performance may instead be evaluated primarily against a custom peer group or market index. In evaluating the performance of a fund and its manager, primary emphasis is normally placed on three-year performance, with secondary consideration of performance over longer and shorter periods. A portion of the compensation payable to equity portfolio managers and investment professionals will be determined based on the ability of one or more accounts managed by such manager to achieve a specified target average annual gross return over a three year period in excess of the account benchmark. The cash bonus to be payable at the end of the three year term will be established at the inception of the term and will be adjusted positively or negatively to the extent that the average annual gross return varies from the specified target return. For funds that are tax-managed or otherwise have an objective of after-tax returns, performance is measured net of taxes. For other funds, performance is evaluated on a pre-tax basis. For funds with an investment objective other than total return (such as current income), consideration will also be given to the fund’s success in achieving its objective. For managers responsible for multiple funds and accounts, investment performance is evaluated on an aggregate basis, based on averages or weighted averages among managed funds and accounts. Funds and accounts that have performance-based advisory fees are not accorded disproportionate weightings in measuring aggregate portfolio manager performance.

The compensation of portfolio managers with other job responsibilities (such as heading an investment group or providing analytical support to other portfolios) will include consideration of the scope of such responsibilities and the managers’ performance in meeting them.

EVM seeks to compensate portfolio managers commensurate with their responsibilities and performance, and competitive with other firms within the investment management industry. EVM participates in investment-industry


compensation surveys and utilizes survey data as a factor in determining salary, bonus and stock-based compensation levels for portfolio managers and other investment professionals. Salaries, bonuses and stock-based compensation are also influenced by the operating performance of EVM and its parent company. The overall annual cash bonus pool is generally based on a substantially fixed percentage of pre-bonus adjusted operating income. While the salaries of EVM’s portfolio managers are comparatively fixed, cash bonuses and stock-based compensation may fluctuate significantly from year to year, based on changes in manager performance and other factors as described herein. For a high performing portfolio manager, cash bonuses and stock-based compensation may represent a substantial portion of total compensation.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

No such purchases this period.

Item 10. Submission of Matters to a Vote of Security Holders

No material changes.

Item 11. Controls and Procedures

(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There have been no changes in the registrant’s internal controls over financial reporting during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits

(a)(1)

   Registrant’s Code of Ethics – Not applicable (please see Item 2).

(a)(2)(i)

   Treasurer’s Section 302 certification.

(a)(2)(ii)

   President’s Section 302 certification.

(b)

   Combined Section 906 certification.


Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Eaton Vance Floating-Rate Income Trust

 

By:  

/s/ Scott H. Page

  Scott H. Page
  President
Date:   July 18, 2016

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:  

/s/ James F. Kirchner

  James F. Kirchner
  Treasurer
Date:   July 18, 2016

 

By:  

/s/ Scott H. Page

  Scott H. Page
  President
Date:   July 18, 2016