Eaton Vance Emerging Markets Debt Opportunities Fund Investment Analysis

The Eaton Vance Emerging Markets Debt Opportunities Fund is a great option for investors looking to diversify their portfolios with emerging market debt. This fund focuses on high-quality debt securities from emerging market issuers.

The fund's investment objective is to provide a high level of current income and capital appreciation. It invests in a diversified portfolio of debt securities, including bonds and loans, from emerging market issuers.

The fund's investment strategy is to focus on high-quality debt securities with strong credit profiles. This includes bonds and loans from issuers in countries such as Brazil, Mexico, and South Africa.

You might like: Gilt Edged Securities

The Eaton Vance Emerging Markets Debt Opportunities Fund has had its ups and downs over the years.

In 2024, the fund's return was 14.8%, which was a significant improvement from the previous year.

Here's a breakdown of the fund's performance over the past few years, with its return ranking in its category:

The fund's year-to-date (YTD) return was 3.51%, which is a respectable performance, but not as impressive as some other periods.

Over the past 12 months, the fund's return was 16.37%, which is a notable improvement.

Broaden your view: The Debt Snowball Method Involves . . .

The Eaton Vance Emerging Markets Debt Opportunities Fund comes with some risks that you should be aware of. Investments in foreign instruments or currencies can be riskier than U.S. investments due to various factors like market, economic, and political conditions.

The fund's exposure to derivatives involves unique risks, including counterparty risk, which can lead to a decline in the value of fund shares if a counterparty is unable to honor its commitments. This is a significant consideration for investors.

Here are the fund's operational fees, which include an expense ratio of 0.91%, a management fee of 0.62%, and no 12b-1 fee. These fees are relatively high compared to other funds in the category, ranking 72.32% in the category for expense ratio and 30.69% for management fee.

The fund's expense ratio is actually lower than some of its peers, coming in at 0.78%, which is considered a medium range. This is a relatively low fee compared to some other funds in the category.

Take a look at this: What Is the Extra Fees Put on a Credit Card

Investing in the Fund can be a complex and potentially high-risk endeavor.

The value of your investments may fluctuate rapidly in response to economic, financial, and market events.

You may lose money investing in the Fund, and there's no guarantee of returns.

Investments in foreign instruments or currencies can be particularly volatile due to factors like market conditions, economic changes, and currency exchange rates.

Emerging countries may pose even greater risks due to these factors.

Investments in debt instruments carry risks related to the creditworthiness of the issuer and the potential for non-payment of principal and interest.

Income securities may decline in value if investors become concerned about the issuer's ability to make payments.

The Fund's use of derivatives can amplify both the potential risks and returns, and may involve unique risks like counterparty, correlation, and liquidity risk.

If a counterparty fails to meet its commitments, the value of your shares may decline, and you could experience delays in retrieving your assets.

Suggestion: Eaton Vance Large Cap Value

As interest rates rise, certain income investments may lose value.

The Fund's exposure to specific geographic regions or countries may increase the risk of significant fluctuations in the value of your shares.

A non-diversified fund like this one may be more susceptible to risks due to its concentrated investment strategy.

On a similar theme: Allspring Special Mid Cap Value R6

Operating fees can eat into your investment returns, so it's essential to understand what you're paying for. EIDOX fees stand at 0.91% of assets under management.

The expense ratio is a significant component of these fees, with EIDOX charging 0.91% and ranking 72.32% in its category. This suggests it's a relatively high fee compared to others in the same category.

Management fees are another key expense, with EIDOX charging 0.62% of AUM. This fee is lower than the expense ratio, but still contributes to your overall costs.

Here's a breakdown of the fees mentioned:

EELDX, on the other hand, features an expense ratio of 0.78%, which falls within the medium range. This is lower than EIDOX's expense ratio, suggesting EELDX may be a more cost-effective option.

The worst drawdowns are a crucial aspect of understanding risk in investments. The Eaton Vance Emerging Markets Debt Opportunities Fund has experienced several significant drawdowns.

The largest drawdown was 19.13%, occurring on Mar 23, 2020. Recovery took 159 trading sessions.

A drawdown of -17.36% occurred from Sep 7, 2021, to Jul 14, 2022, lasting 262 trading sessions to recover. The fund took another 18 trading sessions to fully recover by Jul 31, 2023.

Another notable drawdown was -12.96%, which lasted from Jul 25, 2014, to Jan 20, 2016, a total of 513 trading sessions.

The fund has also experienced a -7.87% drawdown from May 9, 2013, to Sep 3, 2013, and another -7.51% drawdown from Apr 9, 2018, to Sep 4, 2018.

Here is a summary of the fund's worst drawdowns:

The Volatility Chart is a crucial tool for investors to gauge the risk associated with a particular fund. The Eaton Vance Emerging Markets Debt Opportunities Fund has a current volatility of 0.82%, indicating a relatively stable performance over the past month.

This chart shows the rolling one-month volatility, giving you a clear picture of how the fund's value has fluctuated.

The Eaton Vance Emerging Markets Debt Opportunities Fund is a diversified investment that spreads its bets across various asset classes.

The fund's portfolio is primarily composed of bonds, which account for 87.48% of its total assets.

Here's a breakdown of the fund's top 10 holdings, which include government bonds and treasury bonds from countries like Egypt, Poland, and Serbia.

The fund's asset allocation is diversified, with a significant portion of its assets invested in bonds, but also a smaller portion in cash and other assets.

The Emerging Markets Holdings are a key part of the Portfolio Composition, and it's worth taking a closer look.

The Emerging Markets Debt Opportunities Fund Holdings are available for download, with the most recent update being on November 30, 2024.

These holdings can be accessed by downloading the Form N-PORT, which provides a detailed breakdown of the fund's holdings.

This information can be a valuable resource for investors looking to gain a deeper understanding of the fund's composition.

Asset allocation is a crucial aspect of portfolio composition, and it's fascinating to see how different asset classes perform.

Bonds hold the largest weighting in our example portfolio at 87.48%, with a return range of 0.00% to 100.50%.

Cash makes up a significant portion of the portfolio at 11.42%, with a relatively low return range of 0.00% to 29.76%.

Convertible bonds are a small but notable portion of the portfolio at 1.53%, with a return range of 0.00% to 8.47%.

Other assets, such as real estate or commodities, account for 1.11% of the portfolio, with a wide return range of -10.15% to 91.74%.

Interestingly, stocks are not allocated to this particular portfolio, but preferred stocks are not allocated either, likely due to their relatively low returns.

Here's a breakdown of the asset allocation in the portfolio:

When analyzing a portfolio's concentration, we want to understand how the investment is distributed across different assets. The EIDOX portfolio has a significant number of holdings, with 742 assets in total.

The size of these holdings varies greatly, with the top 10 holdings accounting for 23.36% of the total net assets. This is a moderate level of concentration, which can be beneficial in certain market conditions.

A look at the number of holdings shows that EIDOX has a relatively large portfolio, with 742 holdings in total. This is more than the Category High benchmark, which has 1860 holdings.

The EIDOX portfolio's net assets in the top 10 holdings are $608 million, which is a significant portion of the total net assets. In contrast, the Category Low benchmark has a net loss of $134 million in its top 10 holdings.

Here's a comparison of the EIDOX portfolio's concentration metrics with the Category Low and Category High benchmarks:

The EIDOX portfolio's concentration metrics are relatively high compared to the Category Low benchmark, but lower than the Category High benchmark. This suggests that the portfolio is moderately concentrated, with a mix of smaller and larger holdings.

The Top 10 Holdings of the Emerging Markets Debt Opportunities Fund are a fascinating mix of government bonds and international loans. The fund's managers have carefully selected these investments to provide a balance of risk and potential return.

The top holding is the Egypt Government Bond, with a yield of 7.15%. This is a significant investment, making up a substantial portion of the fund's overall holdings.

The fund's managers have also invested in a range of other government bonds, including the Republic of Poland Government Bond and the Republic of Cameroon International Bond. These investments provide a relatively stable source of income.

Here are the Top 10 Holdings of the Emerging Markets Debt Opportunities Fund:

It's worth noting that the fund's managers have invested a significant portion of the fund's net assets in these top 10 holdings, with a total weighting of 23.36%.

The Eaton Vance Emerging Markets Debt Opportunities Fund has a history of providing regular dividend payments to its shareholders. The fund has been increasing its distributions for 2 consecutive years.

The dividend yield of the fund has fluctuated over the years, ranging from a low of 1.65% in 2015 to a high of 9.15% in 2022. The annual payout has also varied, from a low of $0.14 in 2015 to a high of $0.75 in 2017.

Here is a breakdown of the dividend payments per share over the past few years:

The fund's monthly dividend distributions have also been consistent, with the exception of January 2025, which had a dividend payment of $0.06.

Broaden your view: Best Vanguard Funds for Dividends

The Eaton Vance Emerging Markets Debt Opportunities Fund has been consistently paying dividends over the years, with a strong record of increasing its distributions.

Its dividend yield has been impressive, with a 8.40% yield over the last twelve months. This is a significant return on investment for shareholders.

The fund has been increasing its distributions for 2 consecutive years, which is a positive sign for investors. This trend suggests that the fund's management is committed to delivering consistent returns.

Here's a breakdown of the fund's dividend history over the past few years:

The monthly dividend distributions for the fund have also been steady, with some fluctuations over the years. For example, in 2020, the monthly dividend was $0.06, while in 2019 it was $0.05.

When evaluating a company's dividend potential, one key metric to consider is the net income ratio. EIDOX's net income ratio is 6.27%, which is significantly higher than the Category Low of -2.28%.

EIDOX's net income ratio is also higher than the Category High of 8.00%. In fact, it ranks 4.95% in the EIDOX % Rank, indicating a relatively strong performance in this area.

A net income ratio of 6.27% suggests that EIDOX is generating a substantial portion of its revenue as net income. This can be a good sign for investors looking for companies with strong dividend potential.

Here's a comparison of EIDOX's net income ratio with the Category Low and High:

This table highlights EIDOX's relatively strong net income ratio compared to the Category Low and High.

Risk Management is crucial for the Eaton Vance Emerging Markets Debt Opportunities Fund. The fund's investment objective is to provide a high level of current income and total return through investment in emerging markets debt securities.

The fund's risk management strategy is designed to help mitigate potential losses. By investing in a diversified portfolio of emerging markets debt securities, the fund aims to reduce its exposure to individual issuers and industries.

The fund's manager uses a combination of qualitative and quantitative analysis to evaluate the creditworthiness of potential investments. This includes analyzing the issuer's financial statements, management team, and industry trends.

The fund's investment process also involves a rigorous credit committee review, which helps to ensure that only high-quality investments are selected. This process helps to minimize the risk of default and maximize potential returns.

The fund's portfolio is actively managed to take advantage of changing market conditions. The manager has the flexibility to adjust the portfolio as needed to maintain the fund's investment objective.

Expand your knowledge: Non Profit Credit and Debt Counseling