Eaton Vance — Investor Presentation (August 2025)
58 slides from Eaton Vance's investor presentation, August 2025
Slide 1: The BEAT
The BEAT Bonds | Equities | Alternatives | Taxes Monthly Global Market and Asset Allocation Guide August 2025 The BEAT | August 2025
Slide 2: About The BEAT and contents
The BEAT provides connectivity between changing market events and implications for TOP IDEAS investor portfolios. 3 Spanning Bonds, Equities, Alternatives and Taxes, this monthly review provides timely information across a broad array of markets and investment topics. BONDS 22 Each edition explores
Slide 3: Key Themes for August 2025
KEY THEMES Key Themes for August 2025 U.S. Equities: Climbing the Wall of Worry Europe: Capital Expenditure Is Making a Comeback Through the noise. Equity markets continue to press higher Made for Germany. Following the announcement of the EUR 500 despite a fresh focus on tariffs, the related deadli
Slide 4: The Portfolio Solutions Group – Our Top Three Ideas
TOP IDEAS The Portfolio Solutions Group – Our Top Three Ideas Credit: Add to Overweight on EU HY Relative to U.S. HY Rates: Moving Underweight Duration Staying the course. We retain our preference for EU HY (High Yield) relative to Weighing the risks. We favor an underweight on duration, as the bala
Slide 5: Key Portfolio Themes and Implementation
TOP THEMES Key Portfolio Themes and Implementation Source: MSIM. For illustrative purposes only. Not a recommendation to buy or sell any security. It is not possible to invest directly in an index. The views and opinions expressed are those of the portfolio management team at the time of writing/of
Slide 6: U.S. Consumer Decelerates, but With No Sign of a Post-Tariff Collapse
TOP THEMES U.S. Consumer Decelerates, but With No Sign of a Post-Tariff Collapse Consumer spending through 2Q25 indicates some softness following the demand pull-forward seen in March, but consistent with the longer-term trend of mild deceleration. This is in line with the labor market, where there
Slide 7: Inflation Risk Remains a Key Focus in the U.S.
TOP THEMES Inflation Risk Remains a Key Focus in the U.S. Headline and core inflation have not inflected higher in the wake of tariffs, but the prices paid component of U.S. PMIs has been signalling risk. June’s CPI is also clearly higher in select tariff-exposed sub-categories. Second-half inflatio
Slide 8: Is the U.S. National Debt on a Sustainable Trajectory?
TOP THEMES Is the U.S. National Debt on a Sustainable Trajectory? In 2025, net interest payments are projected to be about 18.4% of U.S. federal revenues, a significant increase from historic levels, yet in line with the previous high (1991). While we see little risk in the country’s ability to roll
Slide 9: Equities Have Rallied to Record Highs Amid Growing Policy Uncertainty
TOP THEMES Equities Have Rallied to Record Highs Amid Growing Policy Uncertainty Equity markets continue to press higher despite a fresh focus on tariffs and the related deadlines. Why? In part it represents a view that trade policy will ultimately be calibrated to avoid excess growth risk. The abse
Slide 10: U.S. Earnings: The Case for Positive Surprises in 2H25
TOP THEMES U.S. Earnings: The Case for Positive Surprises in 2H25 While negative earnings projections are typically revised early in the year, current-year (CY) 2025 and 2026 estimates were revised down more than average after April 2. Recent trends have been more positive, mirroring historical 2 nd
Slide 11: Europe: German Infrastructure Spending Is Set for a Historic Surge
TOP THEMES Europe: German Infrastructure Spending Is Set for a Historic Surge The “Made for Germany” initiative of ~EUR 630bn is in addition to the EUR 500bn Infrastructure Fund announced in March. Combined with defense spending, public and private investment commitments represent over 30% of German
Slide 12: Japanese Government Bond Yield Curve Flattener Trade
TOP IDEAS Japanese Government Bond (JBG) Yield Curve Flattener Trade Japan’s Ministry of Finance acting as a backstop to shift future issuances away from the super-long sector, and increased foreign demand enticed by attractive FX-hedged JGB long-end yields, could drive a partial reversal of the ste
Slide 13: Real Estate Fundamentals Continue to Improve
TOP IDEAS Real Estate Fundamentals Continue to Improve Real estate has been experiencing a repricing over the last few years in response to higher interest rates, cyclical oversupply and secular demand destruction (in certain sectors). That said, the long-term operating outlook is markedly improving
Slide 14: OBBB Act Expected to Spark Bargain Prices for U.S. Renewables
TOP IDEAS OBBB Act Expected to Spark Bargain Prices for U.S. Renewables 2Q25 saw the fewest U.S. renewable transactions since 2021 as stakeholders awaited the final version of OBBB Act. With the bill now law, regulatory certainty has improved. Owner/operators able to raise funds quickly are now well
Slide 15: Municipals: Opportunity at the Long End of the Muni Curve
TOP IDEAS Municipals: Opportunity at the Long End of the Muni Curve As of July 31, 2025, the 5s/30s AAA muni spread sits at 214 basis points (bps), more than double the U.S. Treasury curve. This sharp steepness is rare, having occurred only three times since 2006. When the 5s/30s spread is over 200
Slide 16: Capital Markets Investment Framework
Capital Markets Investment Framework Current allocation Change from previous – – High conviction underweight – Underweight = Neutral Representative Allocations From the Portfolio Solutions Group + Overweight ++ High conviction overweight Asset Allocation Our View Commentary –– – = + ++ Bonds We move
Slide 17: Global Fixed Income
Global Fixed Income Current allocation Change from previous – – High conviction underweight – Underweight Representative Positioning From Portfolio Solutions Group = Neutral + Overweight ++ High conviction overweight Fixed Income Our View Commentary –– – = + ++ Bonds Resilience in U.S. economic data
Slide 18: Global Fixed Income
Global Fixed Income Current allocation Change from previous – – High conviction underweight – Underweight Representative Positioning From Portfolio Solutions Group = Neutral + Overweight ++ High conviction overweight Fixed Income Our View Commentary –– – = + ++ Public Credit After briefly tightening
Slide 19: Global Equity
Global Equity Current allocation Change from previous – – High conviction underweight – Underweight Representative Positioning From Portfolio Solutions Group = Neutral + Overweight ++ High conviction overweight Equity Our View Commentary –– – = + ++ Regional United States: News flow is likely to rem
Slide 20: Global Equity
Global Equity Current allocation Change from previous – – High conviction underweight – Underweight Representative Positioning From Portfolio Solutions Group = Neutral + Overweight ++ High conviction overweight Equity Our View Commentary –– – = + ++ Style Since mid-2022, the Growth vs. Value trade h
Slide 21: Alternatives
Alternatives Commentary From the Portfolio Solutions Group Alternative Assets Commentary Private Markets Private equity investors have been experiencing constrained distribution activity since 2022 when the shift in the interest rate regime triggered adjustments across capital markets. There was opt
Slide 22: Sovereign Bond Yields
BONDS Sovereign Bond Yields Developed Markets Emerging Markets (10 yr. Yield) (10 yr. Yield) 16% 16% 1 Mo. Ago 1 Mo. Ago 12 Mo. Ago 12 Mo. Ago 12% 12% 8% 8% 4% 4% July ’25 July ’25 0% 0% Past performance is no guarantee of future results. It is not possible to invest directly in an index. Source: Fa
Slide 23: Key Rates (%)
BONDS Key Rates (%) Security Current 12-Mo. Ago Average Minimum Maximum 1-Week SIFMA 2.29 3.51 2.88 1.86 4.21 Secured Overnight Financing Rate 4.39 5.38 4.57 4.26 5.38 1-Mo SOFR 4.35 5.34 4.53 4.29 5.35 3-Mo SOFR 4.30 5.24 4.46 4.21 5.24 2-Yr Treasury 3.94 4.26 4.00 3.54 4.39 5-Yr Treasury 3.95 3.92
Slide 24: Monetary Policy
BONDS Monetary Policy Central Bank Policy Rates Market Expectations for Future Central Bank Rates Current 1-Mo. Ago 12-Mo. Ago 5.0% U.S. Federal Reserve 4.50% 4.50% 5.50% 10% 4.49% BOE U.S. Federal Reserve BOE 4.25% 4.25% 5.25% 4.23% 9% 3.95% BOJ 0.50% 0.50% 0.25% 4.04% 4.29% 4.0% 3.74% 4.0% 8% BOE
Slide 25: U.S. Treasury Yields
BONDS U.S. Treasury Yields U.S. Treasury Yield Curves Yields & Performance 7% Yield (%) Total Return (%) Security 1-Mo. 12-Mo. 6% Current 1-Mo. 12-Mo. Ago Ago 5% July ‘25 3-mo. Treasury 4.33 4.29 5.26 0.35 4.57 1-Mo. Ago 12-Mo. Ago 6-mo. Treasury 4.27 4.25 5.08 0.33 4.60 4% 2-yr. Treasury 3.94 3.71
Slide 26: Characteristics and Performance Analysis
BONDS Characteristics and Performance Analysis Averages Total Returns (%) Coupon Price Yield to Spread Maturity Duration Index (%) ($) Worst (%) (bps) (yrs.) (yrs.) 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y U.S. High Grade Bloomberg U.S. Aggregate Index 3.58 92.2 4.64 31 8.3 6.0 -0.26 0.54 3.75 3.38 1.64 -1.07 1
Slide 27: Spread Analysis (bps)
BONDS Spread Analysis (bps) 1,600 1,400 1331 High 1,200 1087 Current Median 1,000 Low 800 721 600 492 373 465 400 325 417 390 260 362 366 299 286 200 127 132 261 259 83 76 115 101 127 31 44 40 51 52 80 0 35 54 74 29 7 22 -200 -88 Floating-Rate Emerging Aggregate MBS ABS CMBS Corporate Preferred Loan
Slide 28: Corporate Bond Market Update
BONDS Corporate Bond Market Update Averages Total Returns (%) Coupon Price Yield to Spread Maturity Duration (%) ($) Worst (%) (bps) (yrs.) (yrs.) 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y U.S. High Grade Bloomberg U.S. Corp. Investment Grade Index 4.41 93.7 5.07 76 10.4 6.8 0.07 1.92 4.24 4.49 3.26 -0.49 2.88 A
Slide 29: Corporate Bond Market Update
BONDS Corporate Bond Market Update Average Spread (bps) Current 1-Mo. Ago 12-Mo. Ago Median 1,200 HY Corporate 286 296 325 387 1,000 Loans 417 430 461 462 800 IG Corporate 76 83 93 115 Loans 600 400 High Yield Corporate 200 0 Investment Grade Corporate Annual Default Rate 8% Current 1-Mo. Ago 12-Mo.
Slide 30: Municipal Bond Market Update
BONDS Municipal Bond Market Update Averages Total Returns (%) Coupon Price Yield To Maturity Duration (%) ($) Worst (%) (yrs.) (yrs.) 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y Bloomberg Municipal Bond Index 4.64 99.1 3.98 13.3 7.0 -0.20 0.48 -0.55 0.00 1.54 0.13 2.11 AAA Index 4.59 100.0 3.81 12.9 7.2 -0.27 0.26
Slide 31: Municipal Bond Market Update
BONDS Municipal Bond Market Update AAA Muni-to-Treasury Yield Ratios 350% Current 1-Mo. Ago 12-Mo. Ago Median 5Y 64 70 68 72 280% 10Y 76 77 68 83 210% 30Y 95 94 84 94 140% 10Y 30Y 70% 5Y 0% Credit Quality Spreads vs. AAA (bps) 200 Current 1-Mo. Ago 12-Mo. Ago Median AA 11 11 10 16 150 A 35 35 34 36
Slide 32: Emerging Markets Bond Market Update
BONDS Emerging Markets Bond Market Update Sovereign EMD Spreads (USD) Corporate EMD Spreads (USD) Local EMD Yields (%) Bps Bps Bps 700 700 10% 8% 500 500 6% 300 300 4% 100 100 2% '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '15 '16 '17 '18 '19 '20 '21 '22 '
Slide 33: Asset Class Return Analysis (%)
BONDS Asset Class Return Analysis (%) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD 2025 Higher EMD (Local Investment Global Agg EMD (Local Municipal High Yield Municipal High Yield Bank Loan High Yield Bank Loan Currency) Grade Ex-U.S. Currency) 3.30 17.49 1.28 5.36 -0.77 13.46 8.95 15.21 1
Slide 34: Performance: Market Barometer (%)
EQUITIES Performance: Market Barometer (%) 1-Month Returns 1-Year Returns 3-Year Returns Value Core Growth Value Core Growth Value Core Growth Large Cap 0.57 2.22 3.78 8.79 16.54 23.75 10.59 16.94 22.60 Mid Cap 1.79 1.86 2.03 7.06 12.06 28.28 8.96 11.48 17.66 Small Cap 1.77 1.73 1.70 -4.27 -0.55 3.1
Slide 35: Dividend Yields and Volatility Analysis
EQUITIES Dividend Yields and Volatility Analysis Historical Yields Current Yields 4.0% 5.0% 4.36 3.5% MSCI EAFE 4.0% 3.0% 2.94 3.0% 2.55 2.5% MSCI EM 1.69 2.0% 2.0% 1.18 1.5% 1.0% MSCI World S&P 500 1.0% 0.0% '20 '21 '22 '23 '24 '25 S&P 500 MSCI World MSCI EM MSCI EAFE 10 Yr Treasury Correlation of
Slide 36: Valuation Analysis
EQUITIES Valuation Analysis Regions/Styles: Current NTM P/E vs. 10-Year High, Low, Average High 70.0 63.5 Current 60.0 Average Low 50.0 40.0 32.8 30.0 30.7 22.9 26.2 23.7 21.2 MSCI World 22.2 22.9 19.7 18.1 19.9 17.4 17.4 20.0 17.6 18.5 15.7 Current P/E 16.9 17.1 15.3 14.0 15.1 14.8 14.3 14.9 16.9 1
Slide 37: Valuation Analysis
EQUITIES Valuation Analysis S&P 500 Sectors: Current NTM P/E vs. 10-Year High, Low, Average High 77.2 70.0 Current Average 50.0 46.4 Low 30.4 26.5 30.0 24.0 28.6 30.0 22.1 S&P 500 22.6 19.9 24.7 21.3 24.4 17.7 19.9 21.4 19.9 22.0 19.8 Current P/E 16.7 19.0 17.4 18.7 17.8 15.1 15.0 16.5 13.6 16.0 16.
Slide 38: Corporate Earnings Growth
EQUITIES Corporate Earnings Growth Regions/Styles Expected EPS Growth 50.0 2024 EPS Growth 40.05 40.0 30.0 28.97 18.14 20.0 18.23 11.85 11.01 9.90 7.11 17.30 10.0 7.76 10.51 5.63 5.03 7.47 1.41 1.16 2.53 0.18 3.02 0.50 0.0 (10.0) Russell 2000 Russell 1000 MSCI EM MSCI World ex S&P 500 MSCI World MSC
Slide 39: S&P 500 Index: 1-Month Return Analysis
EQUITIES S&P 500 Index: 1-Month Return Analysis 3-5 Year Earnings Growth Trailing 12 Month P/E Return On Equity 6.0% 4.0% 4.0% 3.6 3.1 2.8 3.0 4.5 2.2 2.4 2.2 4.0% 2.0% 0.7 2.0% 1.3 1.3 2.5 1.2 2.2 0.0% 1.9 2.0% (0.2) 0.5 (2.0%) 0.0% 0.4 0.0% S&P 500 12.9+ 9.6-12.9 7.2-9.6 4.3-7.2 <4.3 Market Cap Be
Slide 40: S&P 500 Index: YTD Analysis
EQUITIES S&P 500 Index: YTD Analysis 3-5 Year Earnings Growth Trailing 12 Month P/E Return On Equity 20.0% 18.4 14.0% 16.0% 14.7 11.8 16.0% 13.1 12.0% 14.0% 9.6 12.0% 8.6 12.0% 10.0% 8.6 8.1 10.0 9.5 8.0% 5.3 10.0% 8.6 8.0% 6.8 4.4 8.0% 7.4 4.0% 6.0% 6.0% 3.2 0.0% 3.0 4.0% 4.0% (4.0%) 2.0% 2.0% (8.0
Slide 41: Index Sectors: Return Analysis
EQUITIES Index Sectors: Return Analysis S&P 500 MSCI World Return % Return % 40.00 1 month 40.00 1 month YTD YTD 1 year 1 year 30.00 30.00 20.00 20.00 10.00 10.00 0.00 0.00 (10.00) (10.00) Past performance is no guarantee of future results. It is not possible to invest directly in an index. Source:
Slide 42: Current Characteristics and Sector Weights
EQUITIES Current Characteristics and Sector Weights MSCI MSCI World ex MSCI MSCI MSCI S&P 500 R2000 R1000G R1000V World USA Small Cap EAFE EM MSCI Europe Asia Pac Number of Holdings 503 1972 388 873 1322 2172 695 1202 402 1243 Maximum Market Cap $4,340.03B $19.15B $4,340.03B $2,485.39B $4,374.19B $1
Slide 43: Asset Class Return Analysis (%)
EQUITIES Asset Class Return Analysis (%) 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y 2024 2023 2022 2021 2020 S&P 500 2.24 14.21 8.59 16.33 17.10 15.88 13.66 25.02 26.29 -18.11 28.71 18.40 Russell 1000 Defensive 1.35 6.90 4.31 9.06 12.43 12.09 12.00 18.55 20.23 -16.43 26.93 13.93 Russell 1000 Dynamic 3.05 21.72 12
Slide 44: Asset Class Return Analysis (%)
EQUITIES Asset Class Return Analysis (%) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD 2025 Higher Emerging International Growth Small-Cap Growth Growth Growth S&P 500 Value Growth Growth Markets Small-Cap 5.67 21.31 -1.51 36.39 38.49 28.71 -7.54 42.68 33.36 37.28 20.75 International Interna
Slide 45: Developed Market Currency Performance and Yields
ALTERNATIVES Developed Market Currency Performance and Yields Spot Returns vs. USD (%) Spot Returns vs. EUR (%) Local Interest Rates (%) Currency 1-Mo. YTD 1Y 3Y 5Y 1-Mo. YTD 1Y 3Y 5Y 1Y U.S. Dollar (USD) - - - - - 2.56 -9.53 -5.46 -3.78 0.65 3.87 Euro (EUR) * -2.50 10.53 5.77 3.93 -0.65 - - - - - 1
Slide 46: Emerging Market Currency Performance and Yields
ALTERNATIVES Emerging Market Currency Performance and Yields Spot Returns vs. USD (%) Spot Returns vs. EUR (%) Local Interest Rates (%) Currency 1-Mo. YTD 1Y 3Y 5Y 1-Mo. YTD 1Y 3Y 5Y 1Y Asia, excluding Japan Chinese Renminbi (CNY) -0.38 1.48 0.47 -2.16 -0.60 2.17 -8.19 -5.01 -5.86 0.05 1.35 Malaysia
Slide 47: Emerging Market Currency Performance and Yields
ALTERNATIVES Emerging Market Currency Performance and Yields Spot Returns vs. USD (%) Spot Returns vs. EUR (%) Local Interest Rates (%) Currency 1-Mo. YTD 1Y 3Y 5Y 1-Mo. YTD 1Y 3Y 5Y 1Y Europe Czech Koruna (CZK) -1.99 13.16 9.53 3.96 0.67 0.52 2.37 3.55 0.03 1.33 3.28 Hungarian Forint (HUF) -2.50 13
Slide 48: Local Sovereign Currency Yields
ALTERNATIVES Local Sovereign Currency Yields Developed Market Local Interest Rates % (1 Year) Emerging Market Local Interest Rates % (1 Year) Current 1 Yr Prior Current 1 Yr Prior 3.87 37.64 U.S. Dollar (USD) Turkish New Lira (TRY) 4.41 41.98 3.75 Nigerian Naira (NGN) 16.72 British Pound (GBP) 20.42
Slide 49: Commodities Return Analysis (%)
ALTERNATIVES Commodities Return Analysis (%) Index 1-Mo. 3-Mo. YTD 1Y 3Y 5Y Index 1-Mo. 3-Mo. YTD 1Y 3Y 5Y Bloomberg Commodity Index -0.45 1.36 5.05 9.71 -1.41 11.33 Bloomberg Sub Industrial Metals -6.30 0.27 1.31 3.25 0.42 7.56 Bloomberg Sub Agriculture -1.36 -6.44 -3.42 4.05 -2.55 11.44 Aluminum -
Slide 50: Asset Class Return Analysis (%)
ALTERNATIVES Asset Class Return Analysis (%) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD 2025 Higher Multi-Strategy MLP Long/Short Equity Fixed Income Long/Short Equity Convertible MLP MLP MLP MLP Currency Arbitrage Arbitrage 3.84 18.31 13.41 12.17 40.17 30.92 26.56 24.41 10.44 1.10 10.25
Slide 51: Asset Location Can Be as Important as Asset Allocation
TAXES Asset Location Can Be as Important as Asset Allocation While asset allocation decisions may explain most of your pretax returns, asset location will strongly influence what remains after taxes. It is the process of choosing which accounts to place your investments in based on tax treatment and
Slide 52: How Tax Drag Can Impact Wealth Over Time
TAXES How Tax Drag Can Impact Wealth Over Time For many investors, taxes are a larger drag on performance than fees or trading costs. Even a small reduction in current taxes can have large consequences for wealth accumulation over time. Optimizing taxes in your investment process may help you potent
Slide 53: Understanding the Tax Code
TAXES Understanding the Tax Code The tax code rewards tax-payers for certain behaviors and penalizes them for others. It can help you understand the tax consequences of potential investment decisions to help build better after-tax outcomes. Tax-Loss Harvest Manage Income Triggers Plan for Future Rev
Slide 54: Portfolio Solutions Group
Portfolio Solutions Group The Portfolio Solutions Group is a comprehensive multi-asset business, with activity across all asset strategies and type, both traditional and alternative, through solutions that span fully liquid (public assets), comprehensive JIM CARON EWA TUREK ERIC ZHANG SCHUYLER (publ
Slide 55: Asset Allocation Committee
Asset Allocation Committee MARK BAVOSO VISHAL KHANDUJA, CFA The Asset Allocation Committee Senior Portfolio Manager, Global Multi-Asset Team Portfolio Manager is an independent group of senior Co-Head of the Broad Markets Fixed Income Team JUSTIN BOURGETTE, CFA investment professionals across Portfo
Slide 56: Index Definitions
Index Definitions The Bloomberg Capital Expenditure Index measures capital CBOE Volatility Index (VIX) tracks the implied volatilities of a wide range Morgan Stanley Capital International (MSCI) Emerging Markets Index expenditure in the U.S. of S&P 500 Index options. is an unmanaged index of emergin
Slide 57: Index Definitions, Terms and About Risk
ADDITIONAL INFORMATION Index Definitions, Terms and About Risk The MSCI World Index is a free float adjusted market capitalization weighted index that is designed to measure sponsor, endorse, sell or promote the Fund, will not have any liability with respect thereto and do not have any the global eq
Slide 58: Risk Considerations
RISK CONSIDERATIONS Diversification does not eliminate the risk of loss. tax consequences, before making any investment decision. In general, equity securities’ values also fluctuate in response to activities specific to a company. The Firm does not provide tax advice. The tax information contained