Eaton Vance Floating-Rate Income Trust (NYSE: EFT) is a diversified, closed-end management investment company that seeks to provide current income with capital preservation. Originally launched in June 1988, the trust is listed on the New York Stock Exchange and offers investors access to a portfolio of floating-rate debt instruments. As a closed-end vehicle, it issues a fixed number of shares and may employ leverage to enhance income potential.
The trust’s primary investment strategy centers on senior secured floating-rate loans, often referred to as bank loans, issued by U.S. and select non-U.S. corporate borrowers. These loans typically carry interest rates tied to benchmark rates such as SOFR, which can adjust periodically, helping to mitigate interest-rate risk. In addition to first-lien loans, the portfolio may include second-lien debt, unsecured loans and other floating-rate credit instruments, subject to the trust’s diversification and quality guidelines.
Portfolio management is provided by Eaton Vance Management, a division of Morgan Stanley Investment Management, drawing on the firm’s credit research capabilities and experience in leveraged finance. A dedicated team of analysts and portfolio managers in Boston conducts fundamental credit analysis, monitors issuer performance and adjusts portfolio exposures in response to changing market conditions. Oversight is provided by a board of independent trustees, ensuring alignment with shareholder interests and regulatory compliance.
Eaton Vance Floating-Rate Income Trust primarily serves U.S. investors seeking a high-income solution with the potential for reduced interest-rate sensitivity. The trust invests broadly across industries—including healthcare, consumer goods, energy and technology—while maintaining diversification limits to manage issuer concentration. Income generated by the portfolio is distributed to shareholders on a monthly basis, reflecting the trust’s focus on delivering regular yield.
AI Generated. May Contain Errors.
Free EFT Stock Alerts