UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FormN-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-22049
International Income Portfolio
(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)
October 31
Date of Fiscal Year End
April 30, 2019
Date of Reporting Period
Item 1. Reports to Stockholders
International Income Portfolio
April 30, 2019
Portfolio of Investments (Unaudited)
| Foreign Government Bonds— 18.9% |
| |||||||||||
| Security | Principal Amount (000’s omitted) | Value | ||||||||||
| Dominican Republic— 5.2% | ||||||||||||
Dominican Republic, 16.00%, 7/10/20(1) | DOP | 208,000 | $ | 4,426,986 | ||||||||
Total Dominican Republic |
| $ | 4,426,986 | |||||||||
| Iceland— 5.4% | ||||||||||||
Republic of Iceland, 6.25%, 2/5/20 | ISK | 557,133 | $ | 4,655,791 | ||||||||
Total Iceland |
| $ | 4,655,791 | |||||||||
| Nigeria— 0.1% | ||||||||||||
Republic of Nigeria, 0.00%, 2/6/20(1) | NGN | 23,430 | $ | 58,580 | ||||||||
Republic of Nigeria, 0.00%, 2/20/20(1) | NGN | 11,710 | 29,122 | |||||||||
Total Nigeria |
| $ | 87,702 | |||||||||
| Serbia— 2.0% | ||||||||||||
Serbia Treasury Bond, 10.00%, 3/20/21 | RSD | 156,760 | $ | 1,670,456 | ||||||||
Total Serbia |
| $ | 1,670,456 | |||||||||
| Sri Lanka— 2.2% | ||||||||||||
Sri Lanka Government Bond, 10.75%, 3/1/21 | LKR | 336,000 | $ | 1,921,179 | ||||||||
Total Sri Lanka |
| $ | 1,921,179 | |||||||||
| Ukraine— 4.0% | ||||||||||||
Ukraine Government International Bond, | UAH | 39,375 | $ | 1,269,023 | ||||||||
Ukraine Government International Bond, | UAH | 30,860 | 1,129,342 | |||||||||
Ukraine Government International Bond, | UAH | 28,055 | 1,061,975 | |||||||||
Total Ukraine |
| $ | 3,460,340 | |||||||||
Total Foreign Government Bonds |
| $ | 16,222,454 | |||||||||
| Mortgage Pass-Throughs— 0.9% |
| |||||||||||
| Security | Principal Amount | Value | ||||||||||
Federal National Mortgage Association: |
| |||||||||||
2.306%, (COF + 1.25%), with maturity at 2035(2) | $ | 485,756 | $ | 481,362 | ||||||||
3.99%, (COF + 1.78%), with maturity at 2035(2) | 329,038 | 341,639 | ||||||||||
| $ | 823,001 | |||||||||||
Total Mortgage Pass-Throughs |
| $ | 823,001 | |||||||||
| Short-Term Investments — 72.8% |
| |||||||||
| Foreign Government Securities — 15.0% |
| |||||||||
| Security | Principal Amount (000’s omitted) | Value | ||||||||
| Egypt— 7.0% | ||||||||||
Egypt Treasury Bill, 0.00%, 7/23/19 | EGP | 20,450 | $ | 1,145,367 | ||||||
Egypt Treasury Bill, 0.00%, 7/30/19 | EGP | 27,225 | 1,519,962 | |||||||
Egypt Treasury Bill, 0.00%, 8/6/19 | EGP | 22,400 | 1,246,657 | |||||||
Egypt Treasury Bill, 0.00%, 8/20/19 | EGP | 27,525 | 1,536,180 | |||||||
Egypt Treasury Bill, 0.00%, 4/14/20 | EGP | 3,100 | 156,903 | |||||||
Egypt Treasury Bill, 0.00%, 4/28/20 | EGP | 8,050 | 400,965 | |||||||
Total Egypt |
| $ | 6,006,034 | |||||||
| Georgia— 2.0% | ||||||||||
Georgia Treasury Bill, 0.00%, 7/4/19 | GEL | 4,291 | $ | 1,568,555 | ||||||
Georgia Treasury Bill, 0.00%, 7/18/19 | GEL | 445 | 162,413 | |||||||
Total Georgia |
| $ | 1,730,968 | |||||||
| Nigeria— 5.0% | ||||||||||
Nigeria OMO Bill, 0.00%, 6/6/19 | NGN | 296,640 | $ | 812,769 | ||||||
Nigeria OMO Bill, 0.00%, 8/29/19 | NGN | 121,510 | 323,492 | |||||||
Nigeria OMO Bill, 0.00%, 9/12/19 | NGN | 178,690 | 471,789 | |||||||
Nigeria OMO Bill, 0.00%, 9/19/19 | NGN | 153,170 | 403,346 | |||||||
Nigeria OMO Bill, 0.00%, 9/26/19 | NGN | 26,872 | 70,576 | |||||||
Nigeria OMO Bill, 0.00%, 2/20/20 | NGN | 35,140 | 87,392 | |||||||
Nigeria OMO Bill, 0.00%, 3/5/20 | NGN | 171,980 | 425,562 | |||||||
Nigeria Treasury Bill, 0.00%, 6/13/19 | NGN | 317,700 | 868,485 | |||||||
Nigeria Treasury Bill, 0.00%, 2/27/20 | NGN | 351,400 | 871,596 | |||||||
Total Nigeria |
| $ | 4,335,007 | |||||||
| Uruguay— 1.0% | ||||||||||
Uruguay Treasury Bill, 0.00%, 1/3/20 | UYU | 31,168 | $ | 843,513 | ||||||
Total Uruguay |
| $ | 843,513 | |||||||
Total Foreign Government Securities |
| $ | 12,915,522 | |||||||
| U.S. Treasury Obligations — 48.6% |
| |||||||||
| Security | Principal Amount (000’s omitted) | Value | ||||||||
U.S. Treasury Bill, 0.00%, 5/2/19 | $ | 11,000 | $ | 10,999,291 | ||||||
U.S. Treasury Bill, 0.00%, 5/9/19 | 13,200 | 13,193,079 | ||||||||
U.S. Treasury Bill, 0.00%, 5/16/19 | 15,000 | 14,985,497 | ||||||||
| 14 | See Notes to Financial Statements. |
International Income Portfolio
April 30, 2019
Portfolio of Investments (Unaudited) — continued
| Security | Principal Amount (000’s omitted) | Value | ||||||||
U.S. Treasury Bill, 0.00%, 5/23/19 | $ | 2,600 | $ | 2,596,287 | ||||||
Total U.S. Treasury Obligations |
| $ | 41,774,154 | |||||||
| Other— 9.2% |
| |||||||||
| Description | Units | Value | ||||||||
Eaton Vance Cash Reserves Fund, LLC, 2.54%(3) | 7,939,652 | $ | 7,939,652 | |||||||
Total Other |
| $ | 7,939,652 | |||||||
Total Short-Term Investments |
| $ | 62,629,328 | |||||||
Total Investments— 92.6% |
| $ | 79,674,783 | |||||||
Other Assets, Less Liabilities — 7.4% |
| $ | 6,324,365 | |||||||
Net Assets — 100.0% |
| $ | 85,999,148 | |||||||
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
| (1) | Security exempt from registration under Regulation S of the Securities Act of 1933, which exempts from registration securities offered and sold outside the United States. Security may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933. At April 30, 2019, the aggregate value of these securities is $7,975,028 or 9.3% of the Portfolio’s net assets. |
| (2) | Adjustable rate mortgage security whose interest rate generally adjusts monthly based on a weighted average of interest rates on the underlying mortgages. The coupon rate may not reflect the applicable index value as interest rates on the underlying mortgages may adjust on various dates and at various intervals and may be subject to lifetime ceilings and lifetime floors and lookback periods. Rate shown is the coupon rate at April 30, 2019. |
| (3) | 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 annualizedseven-day yield as of April 30, 2019. |
| Forward Foreign Currency Exchange Contracts | ||||||||||||||||||||||||
| Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized (Depreciation) | |||||||||||||||||||
| TRY | 350,000 | USD | 60,223 | Standard Chartered Bank | 5/2/19 | $ | — | $ | (1,601 | ) | ||||||||||||||
| TRY | 10,956,000 | USD | 1,932,786 | UBS AG | 5/2/19 | — | (97,752 | ) | ||||||||||||||||
| USD | 1,072,449 | TRY | 6,306,000 | Standard Chartered Bank | 5/2/19 | 16,249 | — | |||||||||||||||||
| USD | 840,336 | TRY | 5,000,000 | UBS AG | 5/2/19 | 2,880 | — | |||||||||||||||||
| BRL | 5,821,642 | USD | 1,475,589 | Standard Chartered Bank | 5/3/19 | 9,107 | — | |||||||||||||||||
| USD | 1,461,869 | BRL | 5,821,642 | Standard Chartered Bank | 5/3/19 | — | (22,827 | ) | ||||||||||||||||
| RSD | 277,312,000 | EUR | 2,327,615 | Citibank, N.A. | 5/6/19 | 24,419 | — | |||||||||||||||||
| GBP | 1,350,000 | USD | 1,781,615 | JPMorgan Chase Bank, N.A. | 5/7/19 | — | (20,742 | ) | ||||||||||||||||
| JPY | 90,000,000 | USD | 813,332 | BNP Paribas | 5/7/19 | — | (5,061 | ) | ||||||||||||||||
| JPY | 158,000,000 | USD | 1,465,374 | State Street Bank and Trust Company | 5/7/19 | — | (46,409 | ) | ||||||||||||||||
| USD | 1,748,247 | GBP | 1,350,000 | State Street Bank and Trust Company | 5/7/19 | — | (12,626 | ) | ||||||||||||||||
| USD | 2,227,670 | JPY | 248,000,000 | Goldman Sachs International | 5/7/19 | 434 | — | |||||||||||||||||
| USD | 1,469,698 | EUR | 1,268,600 | Standard Chartered Bank | 5/9/19 | 46,086 | — | |||||||||||||||||
| USD | 110,113 | EUR | 95,046 | Standard Chartered Bank | 5/9/19 | 3,453 | — | |||||||||||||||||
| USD | 62,328 | EUR | 53,800 | Standard Chartered Bank | 5/9/19 | 1,954 | — | |||||||||||||||||
| ARS | 51,500,000 | USD | 1,153,028 | Goldman Sachs International | 5/13/19 | — | (7,915 | ) | ||||||||||||||||
| THB | 39,308,000 | USD | 1,232,506 | Standard Chartered Bank | 5/13/19 | — | (979 | ) | ||||||||||||||||
| UGX | 982,637,000 | USD | 263,442 | Standard Chartered Bank | 5/14/19 | — | (2,463 | ) | ||||||||||||||||
| USD | 65,388 | EUR | 57,622 | Citibank, N.A. | 5/17/19 | 680 | — | |||||||||||||||||
| AUD | 259,894 | USD | 185,167 | Australia and New Zealand Banking Group Limited | 5/20/19 | — | (1,874 | ) | ||||||||||||||||
| 15 | See Notes to Financial Statements. |
International Income Portfolio
April 30, 2019
Portfolio of Investments (Unaudited) — continued
| Forward Foreign Currency Exchange Contracts (continued) | ||||||||||||||||||||||||
| Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized (Depreciation) | |||||||||||||||||||
| IDR | 55,943,000,000 | USD | 3,912,645 | Citibank, N.A. | 5/20/19 | $ | 8,652 | $ | — | |||||||||||||||
| IDR | 6,400,000,000 | USD | 447,615 | Citibank, N.A. | 5/20/19 | 990 | — | |||||||||||||||||
| UGX | 966,940,000 | USD | 249,533 | Standard Chartered Bank | 5/20/19 | 6,992 | — | |||||||||||||||||
| NZD | 500,000 | USD | 334,096 | Standard Chartered Bank | 5/23/19 | — | (22 | ) | ||||||||||||||||
| TRY | 2,000,000 | USD | 336,929 | Citibank, N.A. | 5/23/19 | — | (6,116 | ) | ||||||||||||||||
| ZAR | 4,900,000 | USD | 344,157 | Goldman Sachs International | 5/23/19 | — | (2,430 | ) | ||||||||||||||||
| NOK | 16,363,000 | EUR | 1,705,332 | State Street Bank and Trust Company | 5/24/19 | — | (17,917 | ) | ||||||||||||||||
| THB | 99,122,000 | USD | 3,108,175 | Standard Chartered Bank | 5/24/19 | — | (1,894 | ) | ||||||||||||||||
| USD | 909,255 | THB | 29,000,000 | Standard Chartered Bank | 5/24/19 | 454 | — | |||||||||||||||||
| UGX | 2,087,369,000 | USD | 560,217 | Citibank, N.A. | 5/28/19 | — | (7,265 | ) | ||||||||||||||||
| TRY | 5,000,000 | USD | 825,287 | UBS AG | 5/31/19 | — | (2,170 | ) | ||||||||||||||||
| BRL | 3,409,667 | USD | 863,863 | Societe Generale | 6/4/19 | 3,575 | — | |||||||||||||||||
| JPY | 248,000,000 | USD | 2,233,817 | Goldman Sachs International | 6/10/19 | — | (385 | ) | ||||||||||||||||
| CLP | 575,000,000 | USD | 856,994 | Goldman Sachs International | 6/12/19 | — | (8,265 | ) | ||||||||||||||||
| CNH | 5,750,000 | USD | 854,226 | UBS AG | 6/13/19 | — | (616 | ) | ||||||||||||||||
| UGX | 967,448,000 | USD | 250,634 | Standard Chartered Bank | 6/14/19 | 4,791 | — | |||||||||||||||||
| UGX | 1,079,000,000 | USD | 271,447 | Citibank, N.A. | 6/26/19 | 12,730 | — | |||||||||||||||||
| SEK | 7,500,000 | EUR | 718,569 | State Street Bank and Trust Company | 7/9/19 | — | (16,667 | ) | ||||||||||||||||
| JPY | 118,130,422 | USD | 1,102,194 | Standard Chartered Bank | 7/22/19 | — | (34,773 | ) | ||||||||||||||||
| MAD | 1,838,000 | USD | 191,339 | BNP Paribas | 7/22/19 | — | (2,895 | ) | ||||||||||||||||
| HUF | 240,000,000 | EUR | 743,250 | Bank of America, N.A. | 7/29/19 | — | (3,735 | ) | ||||||||||||||||
| PLN | 3,300,000 | EUR | 764,526 | Citibank, N.A. | 7/29/19 | 1,793 | — | |||||||||||||||||
| JPY | 111,869,578 | USD | 1,038,300 | Standard Chartered Bank | 8/1/19 | — | (26,671 | ) | ||||||||||||||||
| MAD | 22,140,000 | USD | 2,278,950 | BNP Paribas | 8/9/19 | — | (14,536 | ) | ||||||||||||||||
| MAD | 1,899,000 | USD | 196,401 | Societe Generale | 9/11/19 | — | (2,555 | ) | ||||||||||||||||
| MAD | 1,220,000 | USD | 126,405 | Societe Generale | 9/13/19 | — | (1,885 | ) | ||||||||||||||||
| UGX | 994,582,000 | USD | 259,614 | Standard Chartered Bank | 9/30/19 | — | (5,080 | ) | ||||||||||||||||
| UGX | 1,065,780,000 | USD | 276,109 | Citibank, N.A. | 10/25/19 | — | (5,317 | ) | ||||||||||||||||
| UGX | 970,600,000 | USD | 245,535 | Standard Chartered Bank | 1/30/20 | — | (377 | ) | ||||||||||||||||
| UGX | 992,807,000 | USD | 247,583 | Standard Chartered Bank | 3/16/20 | — | (132 | ) | ||||||||||||||||
| UGX | 1,047,780,000 | USD | 261,031 | Citibank, N.A. | 4/20/20 | — | (2,698 | ) | ||||||||||||||||
| $ | 145,239 | $ | (384,650 | ) | ||||||||||||||||||||
| Centrally Cleared Forward Foreign Currency Exchange Contracts | ||||||||||||||||||||||||
| Currency Purchased | Currency Sold | Settlement Date | Value/Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
| BRL | 3,409,667 | USD | 864,235 | 5/3/19 | $ | 5,334 | ||||||||||||||||||
| BRL | 649,358 | USD | 164,590 | 5/3/19 | 1,016 | |||||||||||||||||||
| BRL | 9,880,667 | USD | 2,492,097 | 5/3/19 | 27,774 | |||||||||||||||||||
| USD | 2,504,414 | BRL | 9,880,667 | 5/3/19 | (15,457 | ) | ||||||||||||||||||
| USD | 162,685 | BRL | 649,358 | 5/3/19 | (2,921 | ) | ||||||||||||||||||
| USD | 866,167 | BRL | 3,409,667 | 5/3/19 | (3,402 | ) | ||||||||||||||||||
| 16 | See Notes to Financial Statements. |
International Income Portfolio
April 30, 2019
Portfolio of Investments (Unaudited) — continued
| Centrally Cleared Forward Foreign Currency Exchange Contracts (continued) | ||||||||||||||||||||||||
| Currency Purchased | Currency Sold | Settlement Date | Value/Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
| EUR | 450,000 | USD | 509,720 | 5/9/19 | $ | (4,733 | ) | |||||||||||||||||
| CZK | 20,000,000 | USD | 877,193 | 5/13/19 | (1,842 | ) | ||||||||||||||||||
| EUR | 1,487,636 | USD | 1,681,637 | 5/13/19 | (11,647 | ) | ||||||||||||||||||
| SEK | 32,100,000 | USD | 3,493,687 | 5/13/19 | (110,928 | ) | ||||||||||||||||||
| USD | 3,495,365 | EUR | 3,062,000 | 5/13/19 | 58,025 | |||||||||||||||||||
| USD | 878,219 | EUR | 770,895 | 5/13/19 | 12,828 | |||||||||||||||||||
| USD | 1,688,631 | SEK | 15,800,000 | 5/13/19 | 23,597 | |||||||||||||||||||
| USD | 1,757,469 | IDR | 25,000,000,000 | 5/20/19 | 5,107 | |||||||||||||||||||
| RUB | 30,000,000 | USD | 468,776 | 5/23/19 | (5,609 | ) | ||||||||||||||||||
| INR | 63,000,000 | USD | 901,030 | 5/24/19 | 1,481 | |||||||||||||||||||
| INR | 30,000,000 | USD | 429,062 | 5/24/19 | 705 | |||||||||||||||||||
| MXN | 7,600,000 | USD | 399,194 | 5/24/19 | 338 | |||||||||||||||||||
| AUD | 3,960,000 | USD | 2,792,671 | 6/14/19 | 1,815 | |||||||||||||||||||
| AUD | 390,742 | USD | 275,461 | 6/14/19 | 277 | |||||||||||||||||||
| COP | 3,896,921,000 | USD | 1,234,003 | 6/19/19 | (31,575 | ) | ||||||||||||||||||
| COP | 114,274,000 | USD | 35,942 | 6/19/19 | (682 | ) | ||||||||||||||||||
| GBP | 1,964,000 | USD | 2,619,000 | 6/20/19 | (51,270 | ) | ||||||||||||||||||
| USD | 2,540,106 | GBP | 1,964,000 | 6/20/19 | (27,623 | ) | ||||||||||||||||||
| AUD | 1,981,364 | USD | 1,399,913 | 6/21/19 | (1,482 | ) | ||||||||||||||||||
| USD | 1,564,556 | EUR | 1,372,212 | 6/27/19 | 18,116 | |||||||||||||||||||
| NOK | 6,300,000 | USD | 741,408 | 7/11/19 | (9,214 | ) | ||||||||||||||||||
| PHP | 136,855,000 | USD | 2,605,273 | 7/11/19 | 24,462 | |||||||||||||||||||
| USD | 743,038 | EUR | 653,950 | 7/11/19 | 5,177 | |||||||||||||||||||
| PEN | 14,283,000 | USD | 4,273,021 | 7/12/19 | 33,291 | |||||||||||||||||||
| COP | 3,939,039,000 | USD | 1,248,606 | 7/17/19 | (34,755 | ) | ||||||||||||||||||
| EUR | 358,000 | USD | 404,687 | 7/18/19 | (515 | ) | ||||||||||||||||||
| RUB | 60,000,000 | USD | 924,663 | 7/25/19 | (6,789 | ) | ||||||||||||||||||
| USD | 445,570 | EUR | 396,200 | 8/30/19 | (3,312 | ) | ||||||||||||||||||
| USD | 3,331,212 | EUR | 2,962,104 | 8/30/19 | (24,759 | ) | ||||||||||||||||||
| USD | 1,862,900 | EUR | 1,618,000 | 9/20/19 | 26,622 | |||||||||||||||||||
| $ | (102,550 | ) | ||||||||||||||||||||||
| Futures Contracts | ||||||||||||||||||||
| Description | Number of Contracts | Position | Expiration Date | Notional Amount | Value/Unrealized Depreciation | |||||||||||||||
Interest Rate Futures | ||||||||||||||||||||
| U.S.10-Year Treasury Note | 2 | Short | 6/19/19 | $ | (247,344 | ) | $ | (2,625 | ) | |||||||||||
| $ | (2,625 | ) | ||||||||||||||||||
| 17 | See Notes to Financial Statements. |
International Income Portfolio
April 30, 2019
Portfolio of Investments (Unaudited) — continued
Abbreviations:
| COF | – | Cost of Funds 11th District | ||
| OMO | – | Open Markets Operation | ||
Currency Abbreviations:
| ARS | – | Argentine Peso | ||
| AUD | – | Australian Dollar | ||
| BRL | – | Brazilian Real | ||
| CLP | – | Chilean Peso | ||
| CNH | – | Yuan Renminbi Offshore | ||
| COP | – | Colombian Peso | ||
| CZK | – | Czech Koruna | ||
| DOP | – | Dominican Peso | ||
| EGP | – | Egyptian Pound | ||
| EUR | – | Euro | ||
| GBP | – | British Pound Sterling | ||
| GEL | – | Georgian Lari | ||
| HUF | – | Hungarian Forint | ||
| IDR | – | Indonesian Rupiah | ||
| INR | – | Indian Rupee | ||
| ISK | – | Icelandic Krona | ||
| JPY | – | Japanese Yen | ||
| LKR | – | Sri Lankan Rupee | ||
| MAD | – | Moroccan Dirham | ||
| MXN | – | Mexican Peso | ||
| NGN | – | Nigerian Naira | ||
| NOK | – | Norwegian Krone | ||
| NZD | – | New Zealand Dollar | ||
| PEN | – | Peruvian Sol | ||
| PHP | – | Philippine Peso | ||
| PLN | – | Polish Zloty | ||
| RSD | – | Serbian Dinar | ||
| RUB | – | Russian Ruble | ||
| SEK | – | Swedish Krona | ||
| THB | – | Thai Baht | ||
| TRY | – | New Turkish Lira | ||
| UAH | – | Ukrainian Hryvnia | ||
| UGX | – | Ugandan Shilling | ||
| USD | – | United States Dollar | ||
| UYU | – | Uruguayan Peso | ||
| ZAR | – | South African Rand | ||
| 18 | See Notes to Financial Statements. |
International Income Portfolio
April 30, 2019
Statement of Assets and Liabilities (Unaudited)
| Assets | April 30, 2019 | |||
Unaffiliated investments, at value (identified cost, $72,153,724) | $ | 71,735,131 | ||
Affiliated investment, at value (identified cost, $7,939,652) | 7,939,652 | |||
Cash | 4,836,174 | |||
Deposits for derivatives collateral — | ||||
Financial futures contracts | 8,135 | |||
Centrally cleared derivatives | 735,232 | |||
Forward foreign currency exchange contracts | 70,042 | |||
Foreign currency, at value (identified cost, $388,527) | 388,462 | |||
Interest receivable | 389,798 | |||
Dividends receivable from affiliated investment | 11,976 | |||
Receivable for variation margin on open centrally cleared derivatives | 345,530 | |||
Receivable for open forward foreign currency exchange contracts | 145,239 | |||
Tax reclaims receivable | 447 | |||
Receivable from affiliate | 11,131 | |||
Total assets | $ | 86,616,949 | ||
| Liabilities |
| |||
Cash collateral due to broker | $ | 70,042 | ||
Payable for variation margin on open financial futures contracts | 419 | |||
Payable for open forward foreign currency exchange contracts | 384,650 | |||
Payable to affiliates: | ||||
Investment adviser fee | 44,158 | |||
Trustees’ fees | 472 | |||
Accrued expenses | 118,060 | |||
Total liabilities | $ | 617,801 | ||
Net Assets applicable to investors’ interest in Portfolio | $ | 85,999,148 | ||
| 19 | See Notes to Financial Statements. |
International Income Portfolio
April 30, 2019
Statement of Operations (Unaudited)
| Investment Income | Six Months Ended April 30, 2019 | |||
Interest (net of foreign taxes, $52,745) | $ | 1,822,751 | ||
Dividends from affiliated investment | 101,545 | |||
Total investment income | $ | 1,924,296 | ||
| Expenses |
| |||
Investment adviser fee | $ | 277,930 | ||
Trustees’ fees and expenses | 2,828 | |||
Custodian fee | 80,909 | |||
Legal and accounting services | 37,425 | |||
Interest expense | 4,803 | |||
Miscellaneous | 7,115 | |||
Total expenses | $ | 411,010 | ||
Deduct — |
| |||
Allocation of expenses to affiliate | $ | 50,457 | ||
Total expense reductions | $ | 50,457 | ||
Net expenses | $ | 360,553 | ||
Net investment income | $ | 1,563,743 | ||
| Realized and Unrealized Gain (Loss) |
| |||
Net realized gain (loss) — |
| |||
Investment transactions | $ | (631,910 | ) | |
Investment transactions — affiliated investment | (982 | ) | ||
Financial futures contracts | (34,149 | ) | ||
Foreign currency transactions | (63,832 | ) | ||
Forward foreign currency exchange contracts | 1,723,839 | |||
Net realized gain | $ | 992,966 | ||
Change in unrealized appreciation (depreciation) — |
| |||
Investments | $ | 897,056 | ||
Investments — affiliated investment | 1,319 | |||
Financial futures contracts | (17,245 | ) | ||
Foreign currency | 61,689 | |||
Forward foreign currency exchange contracts | (842,072 | ) | ||
Net change in unrealized appreciation (depreciation) | $ | 100,747 | ||
Net realized and unrealized gain | $ | 1,093,713 | ||
Net increase in net assets from operations | $ | 2,657,456 | ||
| 20 | See Notes to Financial Statements. |
International Income Portfolio
April 30, 2019
Statements of Changes in Net Assets
| Increase (Decrease) in Net Assets | Six Months Ended April 30, 2019 (Unaudited) | Year Ended October 31, 2018 | ||||||
From operations — |
| |||||||
Net investment income | $ | 1,563,743 | $ | 3,938,678 | ||||
Net realized gain (loss) | 992,966 | (5,432,311 | ) | |||||
Net change in unrealized appreciation (depreciation) | 100,747 | (820,345 | ) | |||||
Net increase (decrease) in net assets from operations | $ | 2,657,456 | $ | (2,313,978 | ) | |||
Capital transactions — |
| |||||||
Contributions | $ | 10,514,565 | $ | 15,327,947 | ||||
Withdrawals | (22,335,693 | ) | (20,762,786 | ) | ||||
Net decrease in net assets from capital transactions | $ | (11,821,128 | ) | $ | (5,434,839 | ) | ||
Net decrease in net assets | $ | (9,163,672 | ) | $ | (7,748,817 | ) | ||
| Net Assets | ||||||||
At beginning of period | $ | 95,162,820 | $ | 102,911,637 | ||||
At end of period | $ | 85,999,148 | $ | 95,162,820 | ||||
| 21 | See Notes to Financial Statements. |
International Income Portfolio
April 30, 2019
Financial Highlights
Six Months Ended (Unaudited) | Year Ended October 31, | |||||||||||||||||||||||
| Ratios/Supplemental Data | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||||||
Ratios (as a percentage of average daily net assets): | ||||||||||||||||||||||||
Expenses(1) | 0.81 | %(2)(3)(4) | 0.81 | %(3)(4) | 0.80 | %(3) | 0.81 | %(3)(4) | 0.81 | %(3)(4) | 0.83 | % | ||||||||||||
Net investment income | 3.52 | %(2) | 3.81 | % | 3.02 | % | 3.17 | % | 3.56 | % | 3.49 | % | ||||||||||||
Portfolio Turnover | 2 | %(5) | 23 | % | 29 | % | 38 | % | 23 | % | 42 | % | ||||||||||||
Total Return | 3.06 | %(5) | (2.28 | )%(3) | 9.09 | %(3) | 3.25 | %(3) | (5.84 | )%(3) | 0.90 | % | ||||||||||||
Net assets, end of period (000’s omitted) | $ | 85,999 | $ | 95,163 | $ | 102,912 | $ | 138,716 | $ | 237,251 | $ | 607,664 | ||||||||||||
| (1) | Excludes the effect of custody fee credits, if any, of less than 0.005%. Effective September 1, 2015, custody fee credits, which were earned on cash deposit balances, were discontinued by the custodian. |
| (2) | Annualized. |
| (3) | The investment adviser reimbursed certain operating expenses (equal to 0.11%, 0.11%, 0.13%, 0.08% and 0.04% of average daily net assets for the six months ended April 30, 2019 and the years ended October 31, 2018, 2017, 2016 and 2015, respectively). Absent this reimbursement, total return would be lower. |
| (4) | Includes interest expense of 0.01% for the six months ended April 30, 2019 and each of the years ended October 31, 2018, 2016 and 2015. |
| (5) | Not annualized. |
| 22 | See Notes to Financial Statements. |
International Income Portfolio
April 30, 2019
Notes to Financial Statements (Unaudited)
1 Significant Accounting Policies
International Income Portfolio (the Portfolio) is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a diversified,open-end management investment company. The Portfolio’s investment objective is total return. The Declaration of Trust permits the Trustees to issue interests in the Portfolio. At April 30, 2019, Eaton Vance Diversified Currency Income Fund held a 99.9% interest in the Portfolio.
The following is a summary of significant accounting policies of the Portfolio. The policies are in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The Portfolio 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.
Debt Obligations. Debt obligations are generally valued on the basis of valuations provided by third party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and ask prices, broker/dealer quotations, prices or yields of securities with similar characteristics, interest rates, anticipated prepayments, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security.Short-term debt obligations purchased with a remaining maturity of sixty days or less for which a valuation from a third party pricing service is not readily available may be valued at amortized cost, which approximates fair value.
Derivatives. Financial futures contracts are valued at the closing settlement price established by the board of trade or exchange on which they are traded. Forward foreign currency exchange contracts are generally valued at the mean of the average bid and average ask 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 Portfolio’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 Portfolio may invest in Eaton Vance Cash Reserves Fund, LLC (Cash Reserves Fund), an affiliated investment company managed by Eaton Vance Management (EVM). While Cash Reserves Fund is not a registered money market mutual fund, it conducts all of its investment activities in accordance with the requirements of Rule2a-7 under the 1940 Act. Investments in Cash Reserves Fund are valued at the closing net asset value per unit on the valuation day. Cash Reserves Fund generally values its investment securities based on available market quotations provided by a third party pricing service.
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 Portfolio in a manner that most fairly reflects the security’s “fair value”, which is the amount that the Portfolio might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies or entities, quotations or relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company’s or entity’s financial statements, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
B Investment Transactions — Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost.
C Income — Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount. Withholding taxes on foreign interest have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates. Dividend income is recorded on theex-dividend date for dividends received in cash and/or securities.
D Federal and Other Taxes — The Portfolio has elected to be treated as a partnership for federal tax purposes. No provision is made by the Portfolio for federal or state taxes on any taxable income of the Portfolio because each investor in the Portfolio is ultimately responsible for the payment of any taxes on its share of taxable income. Since at least one of the Portfolio’s investors is a regulated investment company that invests all or substantially all of its assets in the Portfolio, the Portfolio normally must satisfy the applicable source of income and diversification requirements (under the Internal Revenue Code) in order for its investors to satisfy them. The Portfolio will allocate, at least annually among its investors, each investor’s distributive share of the Portfolio’s net investment income, net realized capital gains and losses and any other items of income, gain, loss, deduction or credit.
In addition to the requirements of the Internal Revenue Code, the Portfolio may also be subject to local taxes on the recognition of capital gains in certain countries. In determining the daily net asset value, the Portfolio estimates the accrual for such taxes, if any, based on the unrealized appreciation on certain portfolio securities and the related tax rates. Taxes attributable to unrealized appreciation are included in the change in unrealized appreciation (depreciation) on investments. Capital gains taxes on securities sold are included in net realized gain (loss) on investments.
| 23 |
International Income Portfolio
April 30, 2019
Notes to Financial Statements (Unaudited) — continued
As of April 30, 2019, the Portfolio had no uncertain tax positions that would require financial statement recognition,de-recognition, or disclosure. The Portfolio files a U.S. federal income tax return annually after its fiscalyear-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.
E Foreign Currency Translation — Investment valuations, other assets, and liabilities initially expressed in foreign currencies are translated each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investment securities and income and expenses denominated in foreign currencies are translated into U.S. dollars based upon currency exchange rates in effect on the respective dates of such transactions. Recognized gains or losses on investment transactions attributable to changes in foreign currency exchange rates are recorded for financial statement purposes as net realized gains and losses on investments. That portion of unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.
F 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.
G Indemnifications — Under the Portfolio’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 Portfolio. Under Massachusetts law, if certain conditions prevail, interestholders in the Portfolio could be deemed to have personal liability for the obligations of the Portfolio. However, the Portfolio’s Declaration of Trust contains an express disclaimer of liability on the part of Portfolio interestholders and theBy-laws provide that the Portfolio shall assume the defense on behalf of any Portfolio interestholder. Moreover, theBy-laws also provide for indemnification out of Portfolio property of any interestholder held personally liable solely by reason of being or having been an interestholder for all loss or expense arising from such liability. Additionally, in the normal course of business, the Portfolio enters into agreements with service providers that may contain indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred.
H Financial Futures Contracts — Upon entering into a financial futures contract, the Portfolio is required to deposit with the broker, either in cash or securities, an amount equal to a certain percentage of the contract amount (initial margin). Subsequent payments, known as variation margin, are made or received by the Portfolio each business day, depending on the daily fluctuations in the value of the underlying security, and are recorded as unrealized gains or losses by the Portfolio. Gains (losses) are realized upon the expiration or closing of the financial futures contracts. Should market conditions change unexpectedly, the Portfolio may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. Futures contracts have minimal counterparty risk as they are exchange traded and the clearinghouse for the exchange is substituted as the counterparty, guaranteeing counterparty performance.
I Forward Foreign Currency Exchange Contracts — The Portfolio 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. While forward foreign currency exchange contracts are privately negotiated agreements between the Portfolio and a counterparty, certain contracts may be “centrally cleared”, whereby all payments made or received by the Portfolio pursuant to the contract are with a central clearing party (CCP) rather than the original counterparty. The CCP guarantees the performance of the original parties to the contract. Upon entering into centrally cleared contracts, the Portfolio is required to deposit with the CCP, either in cash or securities, an amount of initial margin determined by the CCP, which is subject to adjustment. For centrally cleared contracts, the daily change in valuation is recorded as a receivable or payable for variation margin and settled in cash with the CCP daily. Risks may arise upon entering forward foreign currency exchange 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. In the case of centrally cleared contracts, counterparty risk is minimal due to protections provided by the CCP.
J Interim Financial Statements — The interim financial statements relating to April 30, 2019 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Portfolio’s management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.
2 Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Boston Management and Research (BMR), a subsidiary of EVM, as compensation for investment advisory services rendered to the Portfolio. Pursuant to the investment advisory agreement between the Portfolio and BMR, the fee is computed at an annual rate of 0.625% of the Portfolio’s average daily net assets up to $1 billion, 0.600% from $1 billion but less than $2 billion, and at reduced rates on daily net assets of $2 billion or more, and is payable monthly. For the six months ended April 30, 2019, the Portfolio’s investment adviser fee amounted to $277,930 or 0.625% (annualized) of the Portfolio’s average daily net assets. Pursuant to a voluntary expense reimbursement, BMR was allocated $50,457 of the Portfolio’s operating expenses for the six months ended April 30, 2019. The Portfolio invests its cash in Cash Reserves Fund. EVM does not currently receive a fee for advisory services provided to Cash Reserves Fund.
Trustees and officers of the Portfolio who are members of EVM’s or BMR’s organizations receive remuneration for their services to the Portfolio out of the investment adviser fee. Trustees of the Portfolio who are not affiliated with the investment adviser may elect to defer receipt of all or a percentage of their
| 24 |
International Income Portfolio
April 30, 2019
Notes to Financial Statements (Unaudited) — continued
annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the six months ended April 30, 2019, no significant amounts have been deferred. Certain officers and Trustees of the Portfolio are officers of the above organizations.
3 Purchases and Sales of Investments
Purchases and sales of investments, other than short-term obligations and including maturities and paydowns, for the six months ended April 30, 2019 were as follows:
| Purchases | Sales | |||||||
Investments(non-U.S. Government) | $ | 11,142,434 | $ | 50,268 | ||||
U.S. Government and Agency Securities | — | 1,201,842 | ||||||
| $ | 11,142,434 | $ | 1,252,110 | |||||
4 Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of investments, including open derivative contracts, of the Portfolio at April 30, 2019, as determined on a federal income tax basis, were as follows:
Aggregate cost | $ | 80,261,889 | ||
Gross unrealized appreciation | $ | 330,845 | ||
Gross unrealized depreciation | (1,262,537 | ) | ||
Net unrealized depreciation | $ | (931,692 | ) | |
5 Financial Instruments
The Portfolio may trade in financial instruments withoff-balance sheet risk in the normal course of its investing activities. These financial instruments may include forward foreign currency exchange contracts and futures 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 Portfolio 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 April 30, 2019 is included in the Portfolio of Investments. At April 30, 2019, the Portfolio had sufficient cash and/or securities to cover commitments under these contracts.
In the normal course of pursuing its investment objective, the Portfolio is subject to the following risks:
Foreign Exchange Risk: The Portfolio engages in forward foreign currency exchange contracts to enhance total return, to seek to hedge against fluctuations in currency exchange rates and/or as a substitute for the purchase or sale of securities or currencies.
Interest Rate Risk: The Portfolio utilizes futures contracts to enhance total return, to seek to hedge against fluctuations in interest rates, and/or to change the effective duration of its portfolio.
The Portfolio enters intoover-the-counter (OTC) derivatives that may contain provisions whereby the counterparty may terminate the contract under certain conditions, including but not limited to a decline in the Portfolio’s net assets below a certain level over a certain period of time, which would trigger a payment by the Portfolio for those derivatives in a liability position. At April 30, 2019, the fair value of derivatives with credit-related contingent features in a net liability position was $384,650. At April 30, 2019, there were no assets pledged by the Portfolio for such liability.
The OTC derivatives in which the Portfolio 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 Portfolio 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 Portfolio 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 Portfolio may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and
| 25 |
International Income Portfolio
April 30, 2019
Notes to Financial Statements (Unaudited) — continued
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 Portfolio’s net assets decline by a stated percentage or the Portfolio fails to meet the terms of its ISDA Master Agreements, which would cause the counterparty to accelerate payment by the Portfolio 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 Portfolio and/or counterparty is held in segregated accounts by the Portfolio’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 deposits for derivatives collateral and, in the case of cash pledged by a counterparty for the benefit of the Portfolio, a corresponding liability on the Statement of Assets and Liabilities. Securities pledged by the Portfolio as collateral, if any, are identified as such in the Portfolio of Investments. The carrying amount of the liability for cash collateral due to broker at April 30, 2019 approximated its fair value. If measured at fair value, such liability would have been considered as Level 2 in the fair value hierarchy (see Note 8) at April 30, 2019.
The fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) by risk exposure at April 30, 2019 was as follows:
| Fair Value | ||||||||||||
| Statement of Assets and Liabilities Caption | Foreign Exchange | Interest Rate | Total | |||||||||
Not applicable | $ | 245,965 | * | $ | — | $ | 245,965 | |||||
Receivable for open forward foreign currency exchange contracts | 145,239 | — | 145,239 | |||||||||
Total Asset Derivatives | $ | 391,204 | $ | — | $ | 391,204 | ||||||
Derivatives not subject to master netting or similar agreements | $ | 245,965 | $ | — | $ | 245,965 | ||||||
Total Asset Derivatives subject to master netting or similar agreements | $ | 145,239 | $ | — | $ | 145,239 | ||||||
| Foreign Exchange | Interest Rate | Total | ||||||||||
Not applicable | $ | (348,515 | )* | $ | (2,625 | )* | $ | (351,140 | ) | |||
Payable for open forward foreign currency exchange contracts | (384,650 | ) | — | (384,650 | ) | |||||||
Total Liability Derivatives | $ | (733,165 | ) | $ | (2,625 | ) | $ | (735,790 | ) | |||
Derivatives not subject to master netting or similar agreements | $ | (348,515 | ) | $ | (2,625 | ) | $ | (351,140 | ) | |||
Total Liability Derivatives subject to master netting or similar agreements | $ | (384,650 | ) | $ | — | $ | (384,650 | ) | ||||
| * | For futures contracts and centrally cleared derivatives, amount represents value as shown in the Portfolio of Investments. Only the current day’s variation margin on open futures contracts and centrally cleared derivatives is reported within the Statement of Assets and Liabilities as Receivable or Payable for variation margin on open financial futures contracts and centrally cleared derivatives, as applicable. |
| 26 |
International Income Portfolio
April 30, 2019
Notes to Financial Statements (Unaudited) — continued
The Portfolio’s derivative assets and liabilities at fair value by risk, which are reported gross in the Statement of Assets and Liabilities, are presented in the table above. The following tables present the Portfolio’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 Portfolio for such assets and pledged by the Portfolio for such liabilities as of April 30, 2019.
| 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) | |||||||||||||||
Citibank, N.A. | $ | 49,264 | $ | (21,396 | ) | $ | — | $ | (27,868 | ) | $ | — | ||||||||
Goldman Sachs International | 434 | (434 | ) | — | — | — | ||||||||||||||
Societe Generale | 3,575 | (3,575 | ) | — | — | — | ||||||||||||||
Standard Chartered Bank | 89,086 | (89,086 | ) | — | — | — | ||||||||||||||
UBS AG | 2,880 | (2,880 | ) | — | — | — | ||||||||||||||
| $ | 145,239 | $ | (117,371 | ) | $ | — | $ | (27,868 | ) | $ | — | |||||||||
| 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) | |||||||||||||||
Australia and New Zealand Banking Group Limited | $ | (1,874 | ) | $ | — | $ | — | $ | — | $ | (1,874 | ) | ||||||||
Bank of America, N.A. | (3,735 | ) | — | — | — | (3,735 | ) | |||||||||||||
BNP Paribas | (22,492 | ) | — | — | — | (22,492 | ) | |||||||||||||
Citibank, N.A. | (21,396 | ) | 21,396 | — | — | — | ||||||||||||||
Goldman Sachs International | (18,995 | ) | 434 | — | — | (18,561 | ) | |||||||||||||
JPMorgan Chase Bank, N.A. | (20,742 | ) | — | — | — | (20,742 | ) | |||||||||||||
Societe Generale | (4,440 | ) | 3,575 | — | — | (865 | ) | |||||||||||||
Standard Chartered Bank | (96,819 | ) | 89,086 | — | — | (7,733 | ) | |||||||||||||
State Street Bank and Trust Company | (93,619 | ) | — | — | — | (93,619 | ) | |||||||||||||
UBS AG | (100,538 | ) | 2,880 | — | — | (97,658 | ) | |||||||||||||
| $ | (384,650 | ) | $ | 117,371 | $ | — | $ | — | $ | (267,279 | ) | |||||||||
| (a) | In some instances, the total collateral received and/or pledged may be more than the amount shown due to over collateralization. |
| (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. |
| 27 |
International Income Portfolio
April 30, 2019
Notes to Financial Statements (Unaudited) — continued
The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations by risk exposure for the six months ended April 30, 2019 was as follows:
| Statement of Operations Caption | Foreign Exchange | Interest Rate | ||||||
Net realized gain (loss) — | ||||||||
Financial futures contracts | $ | — | $ | (34,149 | ) | |||
Forward foreign currency exchange contracts | 1,723,839 | — | ||||||
Total | $ | 1,723,839 | $ | (34,149 | ) | |||
Change in unrealized appreciation (depreciation) — | ||||||||
Financial futures contracts | $ | — | $ | (17,245 | ) | |||
Forward foreign currency exchange contracts | (842,072 | ) | — | |||||
Total | $ | (842,072 | ) | $ | (17,245 | ) | ||
The average notional cost of futures contracts and average notional amounts of other derivative contracts outstanding during the six months ended April 30, 2019, which are indicative of the volume of these derivative types, were approximately as follows:
| Futures Contracts — Short | Forward Foreign Currency Exchange Contracts* | |||||
| $1,519,000 | $ | 105,551,000 | ||||
| * | The average notional amount for forward foreign currency exchange contracts is based on the absolute value of notional amounts of currency purchased and currency sold. |
6 Line of Credit
The Portfolio participates with other portfolios and funds managed by EVM and its affiliates in a $625 million unsecured line of credit agreement with a group of banks, which is in effect through October 29, 2019. Borrowings are made by the Portfolio solely to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Interest is charged to the Portfolio based on its borrowings at an amount above either the Eurodollar rate or Federal Funds rate. In addition, a fee computed at an annual rate of 0.15% on the daily unused portion of the line of credit is allocated among the participating portfolios and funds at the end of each quarter. Because the line of credit is not available exclusively to the Portfolio, it may be unable to borrow some or all of its requested amounts at any particular time. The Portfolio did not have any significant borrowings or allocated fees during the six months ended April 30, 2019.
7 Risks Associated with Foreign Investments
The Portfolio’s investments in foreign instruments can be adversely affected by changes in currency exchange rates and political, economic and market developments abroad. In emerging or less developed countries, these risks can be more significant. Investment markets in emerging market countries are typically substantially smaller, less liquid and more volatile than the major markets in developed countries. Emerging market countries may have relatively unstable governments and economies. Emerging market investments often are subject to speculative trading, which typically contributes to volatility.
The Portfolio may have difficulties enforcing its legal or contractual rights in a foreign country. Economic data as reported by foreign governments and other issuers may be delayed, inaccurate or fraudulent. In the event of a default by a sovereign entity, there are typically no assets to be seized or cash flows to be attached. Furthermore, the willingness or ability of a foreign government to renegotiate defaulted debt may be limited.
| 28 |
International Income Portfolio
April 30, 2019
Notes to Financial Statements (Unaudited) — continued
8 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 April 30, 2019, the hierarchy of inputs used in valuing the Portfolio’s investments and open derivative instruments, which are carried at value, were as follows:
| Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Foreign Government Bonds | $ | — | $ | 16,222,454 | $ | — | $ | 16,222,454 | ||||||||
Mortgage Pass-Throughs | — | 823,001 | — | 823,001 | ||||||||||||
Short-Term Investments — | ||||||||||||||||
Foreign Government Securities | — | 12,915,522 | — | 12,915,522 | ||||||||||||
U.S. Treasury Obligations | — | 41,774,154 | — | 41,774,154 | ||||||||||||
Other | — | 7,939,652 | — | 7,939,652 | ||||||||||||
Total Investments | $ | — | $ | 79,674,783 | $ | — | $ | 79,674,783 | ||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 391,204 | $ | — | $ | 391,204 | ||||||||
Total | $ | — | $ | 80,065,987 | $ | — | $ | 80,065,987 | ||||||||
Liability Description | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | (733,165 | ) | $ | — | $ | (733,165 | ) | ||||||
Futures Contracts | (2,625 | ) | — | — | (2,625 | ) | ||||||||||
Total | $ | (2,625 | ) | $ | (733,165 | ) | $ | — | $ | (735,790 | ) | |||||
| 29 |
Eaton Vance
Diversified Currency Income Fund
April 30, 2019
Board of Trustees’ Contract Approval
Overview of the Contract Review Process
The Investment Company Act of 1940, as amended (the “1940 Act”), provides, in substance, that the investment advisory agreement between a fund and its investment adviser will continue in effect fromyear-to-year only if its continuation is approved on an annual basis by a vote of the fund’s board of trustees, including a majority of the trustees who are not “interested persons” of the fund (“independent trustees”), cast in person at a meeting called for the purpose of considering such approval.
At a meeting held on April 24, 2019, the Boards of Trustees/Directors (collectively, the “Board”) of the registered investment companies advised by Eaton Vance Management or its affiliate, Boston Management and Research (the “Eaton Vance Funds”), including a majority of the independent trustees (the “Independent Trustees”), voted to approve the continuation of existing investment advisory andsub-advisory agreements for each of the Eaton Vance Funds for an additionalone-year period. In voting its approval, the Board relied upon the affirmative recommendation of its Contract Review Committee, which is a committee exclusively comprised of Independent Trustees. Prior to making its recommendation, the Contract Review Committee reviewed information furnished by the adviser andsub-adviser (where applicable) to each of the Eaton Vance Funds (including information specifically requested by the Board) for a series of meetings held between February and April 2019. Members of the Contract Review Committee also considered information received at prior meetings of the Board and its committees, to the extent such information was relevant to the Contract Review Committee’s annual evaluation of the investment advisory andsub-advisory agreements.
Among other things, the information the Board considered included the following (for funds that invest through one or more underlying portfolios, references to “each fund” in this section may include information that was considered at the portfolio-level):
Information about Fees, Performance and Expenses
| • | A report from an independent data provider comparing advisory and related fees paid by each fund to such fees paid by comparable funds, as identified by the independent data provider (“comparable funds”); |
| • | A report from an independent data provider comparing each fund’s total expense ratio (and its components) to those of comparable funds; |
| • | A report from an independent data provider comparing the investment performance of each fund (including, where relevant, yield data, Sharpe ratios and information ratios) to the investment performance of comparable funds over various time periods; |
| • | Data regarding investment performance relative to benchmark indices and, in certain instances, to customized groups of peer funds and blended indices identified by the adviser in consultation with the Portfolio Management Committee of the Board; |
| • | Comparative information concerning the fees charged and services provided by the adviser andsub-adviser (where applicable) to each fund 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(s), if any; |
| • | Profitability analyses with respect to the adviser andsub-adviser (where applicable) to each of the funds; |
Information about Portfolio Management and Trading
| • | Descriptions of the investment management services provided to each fund, as well as each of the funds’ investment strategies and policies; |
| • | The procedures and processes used to determine the fair value of fund assets, when necessary, and actions taken to monitor and test the effectiveness of such procedures and processes; |
| • | Information about the policies and practices of each fund’s adviser andsub-adviser (where applicable and in the context of asub-adviser with trading responsibilities) with respect to trading, including their processes for seeking best execution of portfolio transactions; |
| • | Information about the allocation of brokerage transactions and the benefits, if any, received by the adviser andsub-adviser (where applicable and in the context of asub-adviser with trading responsibilities) to each fund 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 the portfolio turnover rate of each fund; |
Information about each Adviser andSub-adviser
| • | Reports detailing the financial results and condition of the adviser andsub-adviser (where applicable) to each fund; |
| • | Information regarding the individual investment professionals whose responsibilities include portfolio management and investment research for the funds, and, for portfolio managers and certain other investment professionals, information relating to their responsibilities with respect to managing other mutual funds and investment accounts, if applicable; |
| • | The Code of Ethics of the adviser and its affiliates and thesub-adviser (where applicable) of each fund, 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 the adviser and its affiliates and thesub-adviser (where applicable) of each fund, if any, including descriptions of their various compliance programs and their record of compliance; |
| 30 |
Eaton Vance
Diversified Currency Income Fund
April 30, 2019
Board of Trustees’ Contract Approval — continued
| • | Information concerning the business continuity and disaster recovery plans of the adviser and its affiliates and thesub-adviser (where applicable) of each fund, if any; |
| • | A description of Eaton Vance Management’s and Boston Management and Research’s oversight ofsub-advisers, including with respect to regulatory and compliance issues, investment management and other matters; |
Other Relevant Information
| • | Information concerning the nature, cost and character of the administrative and othernon-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 the adviser or administrator to each of the funds; and |
| • | The terms of each investment advisory agreement. |
During the various meetings of the Board and its committees throughout the twelve months ended April 2019, the Trustees received information from portfolio managers and other investment professionals of the advisers andsub-advisers (where applicable) of the funds regarding investment and performance matters, and considered various investment and trading strategies used in pursuing the funds’ investment objectives. The Trustees also received information regarding risk management techniques employed in connection with the management of the funds. The Board and its Committees evaluated issues pertaining to industry and regulatory developments, compliance procedures, fund governance and other issues with respect to the funds, and received and participated in reports and presentations provided by Eaton Vance Management, Boston Management and Research and fundsub-advisers (as applicable), with respect to such matters. In addition to the formal meetings of the Board and its committees, the Independent Trustees held regular teleconferences to discuss, among other topics, matters relating to the continuation of investment advisory andsub-advisory agreements.
The Contract Review Committee was advised throughout the contract review process by Goodwin Procter LLP, independent legal counsel for the Independent Trustees. The members of the Contract Review Committee, with the advice of such counsel, exercised their own business judgment in determining the material factors to be considered in evaluating each investment advisory andsub-advisory agreement and the weight to be given to each such factor. The conclusions reached with respect to each investment advisory andsub-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 andsub-advisory agreement. In evaluating each investment advisory andsub-advisory agreement, including the fee structures and other terms contained in such agreements, the members of the Contract Review Committee were also informed by multiple years of analysis and discussion with the adviser andsub-adviser (where applicable) to each of the Eaton Vance Funds.
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 between Eaton Vance Diversified Currency Income Fund (the “Fund”) and Eaton Vance Management (“EVM”), as well as the investment advisory agreement between International Income Portfolio (the “Portfolio”), the portfolio in which the Fund invests, and Boston Management and Research (“BMR”) (EVM, with respect to the Fund, and BMR, with respect to the Portfolio, are each referred to herein as the “Adviser”), including their respective fee structures, are in the interests of shareholders and, therefore, recommended to the Board approval of each agreement. Based on the recommendation of the Contract Review Committee, the Board, including a majority of the Independent Trustees, voted to approve continuation of the investment advisory agreements for the Fund and the Portfolio.
Nature, Extent and Quality of Services
In considering whether to approve the investment advisory agreements for the Fund and the Portfolio, the Board evaluated the nature, extent and quality of services provided to the Fund and the Portfolio by the applicable Adviser.
The Board considered each Adviser’s management capabilities and investment processes in light of the types of investments held by the Fund and the Portfolio, including the education, experience and number of investment professionals and other personnel who provide portfolio management, investment research, and similar services to the Fund and the Portfolio. The Board considered each Adviser’s expertise with respect to global markets andin-house research capabilities. The Board also took into account the resources dedicated to portfolio management and other services, the compensation methods of each Adviser and other factors, including the reputation and resources of the Adviser to recruit and retain highly qualified research, advisory and supervisory investment professionals. In addition, the Board considered the time and attention devoted to the Eaton Vance Funds, including the Fund and the Portfolio, 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 and the Portfolio, including the provision of administrative services. The Board also considered the business-related and other risks to which each Adviser or its affiliates may be subject in managing the Fund and the Portfolio.
The Board noted that under the terms of the investment advisory agreement of the Fund, EVM may invest assets of the Fund directly in securities, for which it would receive a fee, or in the Portfolio, for which it receives no separate fee but for which BMR receives an advisory fee from the Portfolio.
| 31 |
Eaton Vance
Diversified Currency Income Fund
April 30, 2019
Board of Trustees’ Contract Approval — continued
The Board considered the compliance programs of each Adviser and relevant affiliates thereof. The Board considered compliance and reporting matters regarding, among other things, personal trading by investment professionals, disclosure of portfolio holdings, late trading, frequent trading, portfolio valuation, business continuity and the allocation of investment opportunities. The Board also considered the responses of each Adviser and its affiliates to requests in recent years from regulatory authorities, such as the Securities and Exchange Commission and the Financial Industry Regulatory Authority.
The Board considered 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, as well as the ability, in many cases, to exchange an investment among different funds without incurring additional sales charges.
After consideration of the foregoing factors, among others, the Board concluded that the nature, extent and quality of services provided by each Adviser, taken as a whole, are appropriate and consistent with the terms of the applicable 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 with respect to the Fund for theone-, three-, five- andten-year periods ended September 30, 2018. In this regard, the Board noted that the performance of the Fund was higher than the median performance of the Fund’s peer group and consistent with the median performance of the Fund’s custom peer group for the three-year period. The Board also noted that the performance of the Fund was higher than its benchmark index for the three-year period. The Board concluded that the performance of the Fund was satisfactory.
Management Fees and Expenses
The Board considered contractual fee rates payable by the Portfolio and 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 theone-year period ended September 30, 2018, 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 the Fund’s total expense ratio relative to comparable funds.
After considering the foregoing information, and in light of the nature, extent and quality of the services provided by each Adviser, the Board concluded that the management fees charged for advisoryand related services are reasonable.
Profitability and“Fall-Out” Benefits
The Board considered the level of profits realized by each Adviser and relevant affiliates thereof in providing investment advisory and administrative services to the Fund, to the Portfolio 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 each Adviser and its affiliates to third parties in respect of distribution services.
The Board concluded that, in light of the foregoing factors and the nature, extent and quality of the services rendered, the profits realized by each Adviser and its affiliates are deemed not to be excessive.
The Board also considered direct or indirectfall-out benefits received by each Adviser and its affiliates in connection with their respective relationships with the Fund and the Portfolio, including the benefits of research services that may be available to each Adviser as a result of securities transactions effected for the Fund and the Portfolio and other investment advisory clients.
Economies of Scale
In reviewing management fees and profitability, the Board also considered the extent to which the applicable Adviser and its affiliates, on the one hand, and the Fund and the Portfolio, on the other hand, can expect to realize benefits from economies of scale as the assets of the Fund and the Portfolio 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 each Adviser and its affiliates may have been affected by such increases or decreases. Based upon the foregoing, the Board concluded that the Fund currently shares in the benefits from economies of scale, if any, when they are realized by the Adviser. The Board also concluded that the structure of the advisory fees, which include breakpoints at several asset levels, will allow the Fund and the Portfolio to continue to benefit from any economies of scale in the future.
| 32 |
Eaton Vance
Diversified Currency Income Fund
April 30, 2019
Officers and Trustees
Officers of Eaton Vance Diversified Currency Income Fund
Payson F. Swaffield
President
Maureen A. Gemma
Vice President, Secretary and Chief Legal Officer
James F. Kirchner
Treasurer
Richard F. Froio
Chief Compliance Officer
Officers of International Income Portfolio
Payson F. Swaffield
President
Maureen A. Gemma
Vice President, Secretary and Chief Legal Officer
James F. Kirchner
Treasurer
Richard F. Froio
Chief Compliance Officer
Trustees of Eaton Vance Diversified Currency Income Fund and International Income Portfolio
William H. Park
Chairperson
Thomas E. Faust Jr.*
Mark R. Fetting
Cynthia E. Frost
George J. Gorman
Valerie A. Mosley
Helen Frame Peters
Keith Quinton(1)
Marcus L. Smith(1)
Susan J. Sutherland
Scott E. Wennerholm
| * | Interested Trustee |
(1) Messrs. Quinton and Smith began serving as Trustees effective October 1, 2018.
| 33 |
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 Advisers International Ltd., 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 call1-800-262-1122.
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 at1-800-262-1122, or contact your financial advisor. Your instructions that householding not apply to delivery of your Eaton Vance documents will typically 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) files a schedule of portfolio holdings on Part F toForm N-PORT with the SEC for the first and third quarters of each fiscal year. The FormN-PORT will be available on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at1-800-262-1122 or in the EDGAR database on the SEC’s website at www.sec.gov.
Proxy Voting. From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds’ and Portfolios’ Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent12-month period ended June 30, without charge, upon request, by calling1-800-262-1122 and by accessing the SEC’s website at www.sec.gov.
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Investment Adviser of International Income Portfolio
Boston Management and Research
Two International Place
Boston, MA 02110
Investment Adviser and Administrator of Eaton Vance Diversified Currency Income Fund
Eaton Vance Management
Two International Place
Boston, MA 02110
Principal Underwriter*
Eaton Vance Distributors, Inc.
Two International Place
Boston, MA 02110
(617)482-8260
Custodian
State Street Bank and Trust Company
State Street Financial Center, One Lincoln Street
Boston, MA 02111
Transfer Agent
BNY Mellon Investment Servicing (US) Inc.
Attn: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02940-9653
(800)262-1122
Fund Offices
Two International Place
Boston, MA 02110
| * | FINRA BrokerCheck. Investors may check the background of their Investment Professional by contacting the Financial Industry Regulatory Authority (FINRA). FINRA BrokerCheck is a free tool to help investors check the professional background of current and former FINRA-registered securities firms and brokers. FINRA BrokerCheck is available by calling1-800-289-9999 and at www.FINRA.org. The FINRA BrokerCheck brochure describing this program is available to investors at www.FINRA.org. |
7758 4.30.19
Item 2. Code of Ethics
Not required in this filing.
Item 3. Audit Committee Financial Expert
Not required in this filing.
Item 4. Principal Accountant Fees and Services
Not required in this filing.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this FormN-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures forClosed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers ofClosed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities byClosed-End Management Investment Company and Affiliated Purchasers
Not applicable.
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. Disclosure of Securities Lending Activities forClosed-End Management Investment Companies
Not applicable.
Item 13. 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.
International Income Portfolio
| By: | /s/ Payson F. Swaffield | |
| Payson F. Swaffield | ||
| President | ||
| Date: | June 24, 2019 | |
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: | June 24, 2019 | |
| By: | /s/ Payson F. Swaffield | |
| Payson F. Swaffield | ||
| President | ||
| Date: | June 24, 2019 | |