Eaton Vance Build America Bond Fund swaps out municipals from portfolio

By Toni Weeks

San Luis Obispo, Calif., Feb. 12 –Eaton Vance Mutual Funds Trust announced that the Eaton Vance Build America Bond Fund will change its name to Eaton Vance Core Plus Bond Fund, according to a 497 filing with the Securities and Exchange Commission.

Along with the new name, the fund will gain a new investment objective and strategy. It will seek total return and, under normal market conditions, will invest at least 80% of its net assets in bonds and other fixed- and floating-rate income instruments including, among others, corporate bonds, senior and junior loans, U.S. government securities and commercial paper. The fund may invest up to 35% of its net assets in securities rated below investment grade.

Currently, the Build America fund seeks current income with a secondary objective of capital appreciation by investing at least 80% of its net assets in taxable municipal obligations issue pursuant to the American Recovery and Reinvestment Act of 2009 or other legislation providing for the issuance of taxable municipal debt on which the issuer receives federal support.

In a separate 497 filing with the SEC, Eaton Vance Municipals Trust announced it will change the name of the Eaton Vance California Municipal Income Fund to Eaton Vance California Municipal Opportunities Fund. This fund’s investment strategy is not changing substantially, however.

The changes are effective on April 13.

Boston Management and Research, located in Boston, is the investment adviser to the funds.

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