The fund, which has a minimum investment of $1,000, is the newest addition to a suite of tax-advantaged funds offered by Eaton Vance. At least 80% of the funds portfolio will be invested in a diversified portfolio of highest-rated municipal obligations, Treasuries or other obligations of government-sponsored enterprises.
The remaining 20% may be invested in lower-grade municipals at least A3 or A- at the time of purchase. All of the holdings will have maturity durations of between two and six years, which could be altered in the future.
We employ a quantitatively driven, relative value approach that seeks to take advantage of inefficiencies in high-quality fixed-income markets, said Jim Evans, director of the tax-advantaged bond strategies division of Eaton Vance. We have employed a similar approach to the management of separate accounts for the past 16 years.
