Eaton Vance — Investor Presentation (2026)
60 slides from Eaton Vance's investor presentation, 2026
Slide 1: The BEAT: 2026 Outlook
The BEAT Bonds | Equities | Alternatives | Taxes Monthly Global Market and Asset Allocation Guide 2026 Outlook The BEAT | 2026 Outlook
Slide 2: About The BEAT and contents
3 The BEAT, previously known as the Monthly Market Monitor, provides connectivity TOP VIEWS 3 between changing market events and implications for investor portfolios. Spanning Bonds, Equities, Alternatives and Taxes, this monthly review provides timely 14 information across a broad array of markets
Slide 3: The Shape of Things To Come in 2026: From K Shaped to U
TOP VIEWS The Shape of Things To Come in 2026: From “K” Shaped to “U” Economic conditions and market performance in 2026 may prove to be more U-shaped than K. The trough likely occurred in 2025, partially masked by stronger equity performance, with notably narrow leadership. While 2025 represented t
Slide 4: Capital Markets Investment Framework
TOP VIEWS Capital Markets Investment Framework OUR VIEW Points of Focus: ASSET ALLOCATION –– – = + ++ Bonds 1 Remain U/W duration. Duration ⚫ ⚫ ⚫ ⚫ ⚫ Corporate credit remains 2 Credit ⚫ ⚫ ⚫ ⚫ ⚫ expensive; we maintain a Equities relative preference for Emerging Market (EM) Hard Risk Level ⚫ ⚫ ⚫ ⚫ ⚫ C
Slide 5: Global Fixed Income
TOP VIEWS Global Fixed Income OUR VIEW Points of Focus: FIXED INCOME –– – = + ++ Bonds 1 MBS/ABS remains our highest U.S. Treasuries ⚫ ⚫ ⚫ ⚫ ⚫ conviction fixed income O/W. Inflation-Linked Bonds ⚫ ⚫ ⚫ ⚫ ⚫ 2 Remain U/W IG given poor risk asymmetry relative to spreads. Eurozone Govt. Bonds ⚫ ⚫ ⚫ ⚫ ⚫ E
Slide 6: Global Equity
TOP VIEWS Global Equity OUR VIEW Points of Focus: EQUITIES –– – = + ++ Regional O/W U.S. given positive 1 U.S. ⚫ ⚫ ⚫ ⚫ ⚫ trends in growth. O/W U.S. industrial policy beneficiaries. Eurozone ⚫ ⚫ ⚫ ⚫ ⚫ Targeted exposure in Europe; Japan ⚫ ⚫ ⚫ ⚫ ⚫ 2 O/W banks and beneficiaries Emerging Markets (EM) ⚫ ⚫
Slide 7: Top Views: Investment Themes
TOP VIEWS INVESTMENT THEME DESCRIPTION IMPLEMENTATION Global Fiscal Expansion Most major countries will likely benefit • U/W Duration from positive fiscal impulses in the • O/W TIPS vs. Nominals coming 1-2 years. Partly spurred by Trump, partly by industrial policy. EU Investment After decades of un
Slide 8: 2026 Outlook: The Mid-Cycle Rebound Was Interrupted, but May Resume
TOP VIEWS 2026 Outlook: The Mid-Cycle Rebound Was Interrupted, but May Resume The 2021-23 Fed hiking cycle drove a mid-cycle slowdown, where labor markets and industrial production softened. A rebound was expected in 2025, but was interrupted by trade policy. This mid-cycle rebound may finally come
Slide 9: Drivers of 2026 Growth Acceleration
TOP VIEWS Drivers of 2026 Growth Acceleration We see Fed policy, fiscal policy, deregulation and fading tariff headwinds all contributing to growth acceleration in 2026. These economic drivers stand in addition to an ongoing structural tailwind from AI, prominent in 2025. 2ND HALF 2025 2026 VIEW IMP
Slide 10: 2026: The First Clear Signs of an AI Productivity Lift?
TOP VIEWS 2026: The First Clear Signs of an AI Productivity Lift? The adoption of AI remains a key focus in 3Q25, as structural trends continue to be a major driver of higher productivity heading into 2026. Company Commentary Continues To Focus on AI Adoption Technology Sectors Continue To Lead Adop
Slide 11: Two 2026 Economic Risk Scenarios Worth Monitoring
TOP VIEWS Two 2026 Economic Risk Scenarios Worth Monitoring A near-term downside surprise would be an increase in labor market deterioration; a longer-term risk comes from inflation. Downside Risk #1: Labor markets have seen weak hiring in 2025, but few Downside Risk #2: A rise in non-tariff inflati
Slide 12: Fiscal Expansion Is a Global Theme
TOP VIEWS Fiscal Expansion Is a Global Theme Geopolitical and economic dynamics are triggering changes in policy-making, with an increasing use of fiscal tools to jumpstart economies. Growth models are also reorienting to domestic-driven growth, rather than export-led. Germany’s Fiscal Expansion Mir
Slide 13: Global Monetary Easing Continues, but Slows
TOP VIEWS Global Monetary Easing Continues, but Slows In 2026, the outlook for global central banks suggests continued monetary policy easing, albeit at a slower pace than 2025. Global Central Banks Begin Shifting From “Easing” To “Normalization” G10 and Major EM Central Banks Policy Rate YoY Change
Slide 14: Remain U/W Duration: Fewer Cuts With Stronger Growth
BONDS Remain U/W Duration: Fewer Cuts With Stronger Growth Our more optimistic view on growth for 2026 suggests that additional Fed rate cuts in 2026 are less likely. The Taylor Rule* Higher Than the Fed Funds Rate Implies Fewer Cuts Than Expected U.S. Taylor Rule–implied Fed Funds vs. Fed Funds Int
Slide 15: U.S. Credit Markets: Despite Tight Spreads, Fundamentals Remain Healthy
BONDS U.S. Credit Markets: Despite Tight Spreads, Fundamentals Remain Healthy While credit spreads remain tight by historical standards, the fundamentals underpinning credit markets continue to trend positively. Credit card delinquencies have drifted lower, and Moody’s forecasts show default rates f
Slide 16: Municipal Bonds in 2026: Focus on the Curve and Active Management
BONDS Municipal Bonds in 2026: Focus on the Curve and Active Management Focusing on the steepest part of the muni curve provides yield pickup and potential return from bond roll. We believe this curve discipline and an opportunistic approach will be essential for navigating the complex monetary and
Slide 17: Case for Mortgage-Backed Securities and Securitized Assets
BONDS Case for Mortgage-Backed Securities and Securitized Assets Securitized markets trade at wider spreads and offer more attractive yields than many other credit-oriented sectors. Spread Percentile Ranks vs. 10-Year History Current Yields vs. 10-Year Average 100% 9% 8.1% Cheap vs. History 90% 8% 7
Slide 18: U.S. Equity Returns Generally Positive When Economic Growth Improves
EQUITIES U.S. Equity Returns Generally Positive When Economic Growth Improves Since 1998, S&P 500 returns have been positive 87% of the time when the ISM* Composite is greater than 50 (indicating growth), and 92% of the time when the ISM Composite YoY change is positive (indicating acceleration). If
Slide 19: What Could Drive 2026 EPS Outperformance vs. Expectations?
EQUITIES What Could Drive 2026 EPS Outperformance vs. Expectations? In 2025, cyclical EPS disappointed expectations for reacceleration, while tech EPS outperformed expectations for deceleration. A 2026 with both cyclical EPS recovery and tech growth persistence presents one path to EPS upside. U.S.
Slide 20: Growth Drivers Diverge Across Global Equities
EQUITIES Growth Drivers Diverge Across Global Equities AI-driven growth should continue to support earnings in the U.S. and Emerging Markets. Europe and Japan are poised to benefit from a cyclical rebound in traditional sectors when U.S. tariff pressures ease and domestic fiscal tailwinds kick in. A
Slide 21: Changes Under the Hood for European Equities
EQUITIES Changes Under the Hood for European Equities While top level EPS growth prospects may not have changed meaningfully post-COVID, we have seen a shift in sector leadership within European equities. We believe this change will remain a feature into 2026, as it reflects efforts to revive the in
Slide 22: Final Stage of the Bull Market Is Likely To Extend Through 2026
EQUITIES Final Stage of the Bull Market Is Likely To Extend Through 2026 As the market moves into the fourth and final stage of the current bull cycle, it is still premature to call for a cycle end in 2026. Tailwinds heading into 2026 suggest that another strong year for equities is likely. 1. Year
Slide 23: Private Markets – 2026 Outlook and Commentary
ALTERNATIVES Private Markets – 2026 Outlook and Commentary Neutral / We see improving distribution activity, helped by rising M&A volumes, reduced tariff uncertainty and more attractive relative Private Equity Positive valuations versus public markets. We remain tactically cautious on core middle-ma
Slide 24: Private Equity
ALTERNATIVES Private Equity Positive on buyouts/growth, neutral on venture capital Points of Focus Neutral / Neutral / 2026 Outlook Negative Negative Neutral Positive Positive Improved M&A activity: While distributions in 2025 remained 1 near record lows, there is a positive M&A momentum. Buyout Buy
Slide 25: Infrastructure
ALTERNATIVES Infrastructure Constructive on Energy, Selective on Digital Points of Focus Neutral / Neutral / 2026 Outlook Negative Negative Neutral Positive Positive Demand for data centers remains strong: This results in 1 strong demand for additional power generation. Transport Extended time to ma
Slide 26: Real Estate
ALTERNATIVES Real Estate Residential, Industrial supported by long-term tailwinds Points of Focus Neutral / Neutral / 2026 Outlook Negative Negative Neutral Positive Positive Slow down in new development and under construction 1 assets: This provides strong support for asset owners. Industrial Resid
Slide 27: Transition Considerations – Managing Taxes for Money in Motion
TAXES Transition Considerations – Managing Taxes for Money in Motion WHEN ASSETS SHIFT, TAX IMPLICATIONS CAN SIGNIFICANTLY IMPACT OUTCOMES. Proactive tax management during these transitions helps minimize tax drag, optimize timing for realizing gains and losses, and preserve wealth. By incorporating
Slide 28: Investor Scenario 1
TAXES Investor Scenario 1 Transitioning from an underperforming investment manager Scenario: Solution: An investor was dissatisfied with the Run a transition analysis to illustrate the performance of an active manager in a impacts of an allocation change. Separately Managed Account (SMA). • Transiti
Slide 29: Investor Scenario 2
TAXES Investor Scenario 2 Onboarding new clients and transitioning existing assets Scenario: Solution: Onboarding a new investor with existing assets. Partner with a manager with robust transition capabilities that can provide transparency into potential tax outcomes and address the complex planning
Slide 30: Sample Transition Analyses
TAXES Sample Transition Analyses Eaton Vance and Parametric offer a variety of transition analyses, spanning various asset classes, active and passive mandates, and including individual or a combination of products Source: Eaton Vance, December 2025. For illustrative purposes only. The views and opi
Slide 31: Sovereign Bond Yields
MARKET MONITOR: 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% Nov ’25 Nov ’25 0% 0% Past performance is no guarantee of future results. It is not possible to invest directly in an ind
Slide 32: Key Rates (%)
MARKET MONITOR: BONDS Key Rates (%) Security Current 12-Mo. Ago Average Minimum Maximum 1-Week SIFMA 2.79 2.86 2.53 1.86 3.22 Secured Overnight Financing Rate 4.12 4.57 4.31 3.91 4.65 1-Mo SOFR 3.86 4.55 4.27 3.86 4.53 3-Mo SOFR 3.79 4.50 4.21 3.79 4.47 2-Yr Treasury 3.49 4.22 3.88 3.42 4.39 5-Yr Tr
Slide 33: Monetary Policy
MARKET MONITOR: BONDS Monetary Policy Central Bank Policy Rates Market Expectations for Future Central Bank Rates Current 1-Mo. Ago 12-Mo. Ago 5.0% 4.0% U.S. Federal Reserve 4.00% 4.00% 4.75% 3.69% 10% 4.49% BOE BOE 3.64% BOE 4.00% 4.00% 4.75% 3.49% 3.49% 4.23% 3.37% 9% 3.95% BOJ 0.50% 0.50% 0.25% 4
Slide 34: U.S. Treasury Yields
MARKET MONITOR: 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% 3-mo. Treasury 3.79 3.81 4.49 0.28 4.24 1-Mo. Ago Nov ‘25 12-Mo. Ago 6-mo. Treasury 3.75 3.82 4.44 0.30 4.33 4% 2-yr. Trea
Slide 35: Developed Market Currency Performance and Yields
MARKET MONITOR: BONDS 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) - - - - - -0.55 -10.78 -8.99 -3.91 0.61 3.60 Euro (EUR) * 0.55 12.08 9.88 4.07 -0.60 -
Slide 36: Characteristics and Performance Analysis
MARKET MONITOR: BONDS Characteristics and Performance Analysis Averages Total Returns (%) Coupon Price Yield to Spread Maturity Duration Index (%) ($) Worst (%) (bps) (yrs.) (yrs.) 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y U.S. High Grade Bloomberg U.S. Aggregate Index 3.64 94.5 4.27 30 8.2 6.0 0.62 2.35 7.46 5.
Slide 37: Spread Analysis (bps)
MARKET MONITOR: BONDS Spread Analysis (bps) 1,600 1,400 1331 High 1,200 1087 Current Median 1,000 Low 800 721 600 492 373 436 460 400 325 383 260 358 366 292 132 270 200 127 261 259 80 125 122 55 51 76 80 113 30 43 29 36 0 72 26 22 54 7 -200 -88 Floating-Rate Emerging Aggregate MBS ABS CMBS Corporat
Slide 38: Corporate Bond Market Update
MARKET MONITOR: BONDS Corporate Bond Market Update Averages Total Returns (%) Coupon Price Yield to Spread Maturity Duration (%) ($) Worst (%) (bps) (yrs.) (yrs.) 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y U.S. High Grade Bloomberg U.S. Corp. Investment Grade Index 4.46 95.8 4.76 80 10.5 6.9 0.65 2.56 7.99 5.90 6
Slide 39: Corporate Bond Market Update
MARKET MONITOR: BONDS Corporate Bond Market Update Average Spread (bps) Current 1-Mo. Ago 12-Mo. Ago Median 1,200 HY Corporate 292 294 274 384 1,000 Loans 436 429 424 460 800 IG Corporate 80 78 78 113 Loans 600 400 High Yield Corporate 200 0 Investment Grade Corporate Annual Default Rate 8% Current
Slide 40: Municipal Bond Market Update
MARKET MONITOR: 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 4.65 102.7 3.58 13.6 6.6 0.23 3.82 4.15 2.64 3.94 0.91 2.41 AAA Index 4.60 103.7 3.42 13.2
Slide 41: Municipal Bond Market Update
MARKET MONITOR: BONDS Municipal Bond Market Update AAA Muni-to-Treasury Yield Ratios 350% Current 1-Mo. Ago 12-Mo. Ago Median 280% 5Y 67 64 64 71 210% 10Y 68 67 66 82 30Y 89 89 83 93 140% 10Y 30Y 70% 5Y 0% '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 Credit Quality Spreads vs. AAA (bps) 200 Current 1
Slide 42: Emerging Markets Bond Market Update
MARKET MONITOR: 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 '
Slide 43: Local Sovereign Currency Yields
MARKET MONITOR: BONDS 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 3.93 36.72 Norwegian Krone (NOK) Turkish New Lira (TRY) 4.15 39.18 3.76 Nigerian Naira (NGN) 18.23 British Poun
Slide 44: Asset Class Return Analysis (%)
MARKET MONITOR: 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
Slide 45: Performance: Market Barometer (%)
MARKET MONITOR: EQUITIES Performance: Market Barometer (%) 1-Month Returns 1-Year Returns 3-Year Returns Value Core Growth Value Core Growth Value Core Growth 2.66 0.24 -1.81 7.25 14.09 20.35 12.09 20.31 27.98 Large Cap Mid Cap 2.39 1.27 -2.12 2.86 3.10 3.29 10.32 12.36 16.74 Small Cap 2.81 0.96 -0.
Slide 46: Dividend Yields and Volatility Analysis
MARKET MONITOR: EQUITIES Dividend Yields and Volatility Analysis Historical Yields Current Yields 4.0% 5.0% 3.5% 4.01 MSCI EAFE 4.0% 3.0% 2.79 3.0% 2.5% 2.31 MSCI EM 2.0% 1.58 2.0% 1.10 1.5% MSCI World 1.0% 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
Slide 47: Valuation Analysis
MARKET MONITOR: EQUITIES Valuation Analysis Regions/Styles: Current NTM P/E vs. 10-Year High, Low, Average 60.0 270.3 High *Not to scale Current 50.0 Average Low 40.0 32.8 30.0 29.7 27.4 22.9 24.2 24.1 21.2 MSCI World 22.4 20.3 19.7 18.1 17.4 17.4 20.0 17.6 Current P/E 18.7 15.7 17.3 17.2 15.4 14.3
Slide 48: Valuation Analysis
MARKET MONITOR: 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 31.1 26.5 30.0 24.0 28.6 28.4 22.3 S&P 500 22.6 19.9 23.9 21.3 24.7 17.7 22.7 21.4 20.0 18.7 19.3 22.4 19.1 Current P/E 17.1 17.6 19.1 18.0 15.5 14
Slide 49: Corporate Earnings Growth
MARKET MONITOR: EQUITIES Corporate Earnings Growth Regions/Styles Expected EPS Growth 40.0 2024 EPS Growth 30.0 28.96 20.88 19.91 20.0 18.22 14.96 12.07 17.29 10.52 9.56 8.91 8.62 7.02 10.0 7.48 3.57 2.74 7.70 2.64 0.20 3.03 0.51 0.0 (10.0) Russell 1000 Russell 2000 MSCI EM S&P 500 MSCI World MSCI A
Slide 50: S&P 500 Index: 1-Month Return Analysis
MARKET MONITOR: EQUITIES S&P 500 Index: 1-Month Return Analysis 3-5 Year Earnings Growth Trailing 12 Month P/E Return On Equity 4.0% 2.0% 2.2 2.2 1.4 2.1 6.0% 3.8 1.0 2.0% 0.2 4.0% 3.0 0.6 1.4 2.4 0.2 0.0% 2.0% 0.2 (0.1) 0.0% 0.0% (2.0%) (2.0%) (4.0%) (4.0%) (3.8) (1.0) (1.1) (4.1) (6.0%) (6.0%) (2.
Slide 51: S&P 500 Index: YTD Analysis
MARKET MONITOR: EQUITIES S&P 500 Index: YTD Analysis 3-5 Year Earnings Growth Trailing 12 Month P/E Return On Equity 30.0% 26.5 30.0% 30.0% 27.6 25.0 25.0% 25.0% 20.3 25.0% 22.2 20.0% 17.8 18.9 20.0% 17.8 16.7 20.0% 17.8 15.7 14.1 15.0% 11.0 15.0% 10.7 10.5 15.0% 10.1 10.1 10.0% 8.6 10.0% 10.0% 5.0%
Slide 52: Index Sectors: Return Analysis
MARKET MONITOR: EQUITIES Index Sectors: Return Analysis S&P 500 MSCI World Return % Return % 1 month 1 month 40.00 1 year 40.00 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.
Slide 53: Current Characteristics and Sector Weights
MARKET MONITOR: 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 1951 390 870 1321 2189 694 1196 403 1242 Maximum Market Cap $4,301.10B $30.72B $4,301.10B $3,593.7
Slide 54: Asset Class Return Analysis (%)
MARKET MONITOR: EQUITIES Asset Class Return Analysis (%) 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y 2024 2023 2022 2021 2020 S&P 500 0.25 6.34 17.81 15.00 20.57 15.28 14.63 25.02 26.29 -18.11 28.71 18.40 Russell 1000 Defensive 2.81 5.58 13.24 10.25 15.69 12.02 12.84 18.55 20.23 -16.43 26.93 13.93 Russell 1000 Dyn
Slide 55: Asset Class Return Analysis (%)
MARKET MONITOR: 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 30.90 Inter
Slide 56: Portfolio Solutions Group
Portfolio Solutions Group The Portfolio Solutions Group is a comprehensive multi-asset business, with activity across all JIM CARON asset strategies and type, both Chief Investment Officer MARK BAVOSO Managing Director traditional and alternative, through Managing Director solutions that span fully
Slide 57: Asset Allocation Committee
Asset Allocation Committee MARK BAVOSO KYLE LEE, CFA The Asset Allocation Committee Senior Portfolio Manager, Portfolio Solutions Group Portfolio Manager is an independent group of senior Co-Head of the Emerging Markets Team JUSTIN BOURGETTE, CFA investment professionals across Portfolio Manager SCO
Slide 58: Index Definitions
Index Definitions The Bloomberg Bitcoin Index measures a single bitcoin's USD FNMA, and FHLMC. The MDAX lists German companies trading on the Frankfurt Stock performance, using DAR's vetted price, calculated as a time-weighted Exchange. It includes the 50 Prime Standard shares that rank in size Bloo
Slide 59: 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 60: 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