<PAGE>
EV TRADITIONAL CALIFORNIA MUNICIPALS FUND
EV TRADITIONAL FLORIDA TAX FREE FUND
EV TRADITIONAL NATIONAL MUNICIPALS FUND
EV TRADITIONAL NEW YORK TAX FREE FUND
SUPPLEMENT TO PROSPECTUSES DATED NOVEMBER 25, 1994
EATON VANCE INCOME FUND OF BOSTON
SUPPLEMENT TO PROSPECTUS DATED FEBRUARY 1, 1995
THE FOLLOWING SENTENCE IS ADDED TO "HOW TO BUY FUND SHARES" IN THE EV
TRADITIONAL CALIFORNIA MUNICIPALS FUND, EV TRADITIONAL FLORIDA TAX FREE FUND, EV
TRADITIONAL NATIONAL MUNICIPALS FUND, AND EV TRADITIONAL NEW YORK TAX FREE FUND
PROSPECTUSES:
Fund shares may be sold at net asset value where the amount invested
represents redemption proceeds from a mutual fund unaffiliated with
Eaton Vance, if the redemption occurred no more than 60 days prior to
the purchase of Fund shares and the redeemed shares were subject to a
sales charge.
IN ADDITION, THE FOLLOWING CHANGES (1-5) APPLY TO FUND SHARES PURCHASED ON
OR AFTER MARCH 27, 1995:
1. THE SHAREHOLDER TRANSACTION EXPENSES TABLE UNDER "SHAREHOLDER AND FUND
EXPENSES" IS REPLACED BY THE FOLLOWING TABLE:
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Charge Imposed on Purchases
(as a percentage of offering price) 3.75%
Sales Charges Imposed on Reinvested Distributions None
Redemption Fees None
Fees to Exchange Shares None
Contingent Deferred Sales Charges Imposed on Redemptions None
Based on the Shareholder Transaction Expenses shown above and on the
total operating expenses shown in the relevant Prospectus, an investor would
pay expenses $10 less than the expenses for one year and three years shown
in the Example under "Shareholder and Fund Expenses".
2. THE FIRST PARAGRAPH UNDER "THE EATON VANCE EXCHANGE PRIVILEGE" IS
REPLACED BY THE FOLLOWING PARAGRAPH:
Shares of the Fund may currently be exchanged for shares of any of
the following funds: Eaton Vance Cash Management Fund, Eaton Vance
Income Fund of Boston, Eaton Vance Municipal Bond Fund L.P., Eaton Vance
Tax Free Reserves and any fund in the Eaton Vance Traditional Group of
Funds on the basis of the net asset value per share of each fund at the
time of the exchange (plus, in the case of an exchange made within six
months of the date of purchase, an amount equal to the difference, if
any, between the sales charge previously paid on the shares being
exchanged and the sales charge payable on the shares being acquired).
Such exchange offers are available only in states where shares of the
fund being acquired may be legally sold.
<PAGE>
3. THE SALES CHARGE AND DEALER COMMISSION TABLES UNDER "HOW TO BUY FUND
SHARES" ARE REPLACED BY THE FOLLOWING TABLE:
The current sales charges and dealer commissions are:
<TABLE>
<CAPTION>
SALES CHARGE SALES CHARGE DEALER COMMISSION
AS PERCENTAGE OF AS PERCENTAGE OF AS PERCENTAGE OF
AMOUNT OF PURCHASE OFFERING PRICE AMOUNT INVESTED OFFERING PRICE
<S> <C> <C> <C>
Less than $50,000 3.75% 3.90% 4.00%
$50,000 but less than $100,000 2.75% 2.83% 3.00%
$100,000 but less than $250,000 2.25% 2.30% 2.50%
$250,000 but less than $500,000 1.75% 1.78% 2.00%
$500,000 but less than
$1,000,000 1.25% 1.27% 1.50%
$1,000,000 or more 0.00%<F1> 0.00%<F1> 0.25%<F2>
<FN>
<F1> Fund shares purchased before March 27, 1995, at net asset value with no
initial sales charge by virtue of the purchase having been in the amount of
$1 million or more may be subject to a contingent deferred sales charge
upon redemption.
<F2> The Principal Underwriter may pay Authorized Firms that initiate and are
responsible for purchases of $1 million or more a commission at an annual
rate of 0.25% of average daily net assets paid quarterly for one year.
</TABLE>
4. IN THE DESCRIPTIONS OF THE STATEMENT OF INTENTION AND THE RIGHT OF
ACCUMULATION UNDER "EATON VANCE SHAREHOLDER SERVICES," THE $100,000 AMOUNTS ARE
REPLACED BY $50,000 AMOUNTS.
5. REFERENCES TO A CONTINGENT DEFERRED SALES CHARGE OR "CDSC" DO NOT APPLY
TO FUND SHARES PURCHASED ON OR AFTER MARCH 27, 1995.
March 27, 1995 T-11/94PS
<PAGE>
EATON VANCE INCOME FUND OF BOSTON
EATON VANCE INCOME FUND OF BOSTON (THE "FUND") IS A MUTUAL FUND SEEKING AS
ITS PRIMARY OBJECTIVE TO PROVIDE AS MUCH CURRENT INCOME AS POSSIBLE. IN SEEKING
ITS INVESTMENT OBJECTIVE, THE FUND MAY INVEST UP TO 100% OF ITS ASSETS IN LOWER
RATED BONDS, COMMONLY KNOWN AS "JUNK BONDS",THAT ENTAIL GREATER RISKS, INCLUDING
DEFAULT, THAN THOSE OF HIGHER RATED SECURITIES. INVESTORS SHOULD CAREFULLY
CONSIDER THESE RISKS AND INVEST FOR THE LONG TERM. SEE "THE FUND'S INVESTMENT
OBJECTIVES" AND "HOW THE FUND INVESTS ITS ASSETS AND RISKS ASSOCIATED WITH
INVESTMENTS".
Shares of the Fund are not deposits or obligations of, or guaranteed or
endorsed by, any bank or other insured depository institution, and are not
federally insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board or any other government agency. Shares of the Fund involve
investment risks, including fluctuations in value and the possible loss of some
or all of the principal investment.
This Prospectus is designed to provide you with information you should know
before investing. Please retain this document for future reference. A Statement
of Additional Information for the Fund dated February 1, 1995, as supplemented
from time to time, has been filed with the Securities and Exchange Commission
and is incorporated herein by reference. The Statement of Additional Information
is available without charge from the Fund's Principal Underwriter, Eaton Vance
Distributors, Inc., 24 Federal Street, Boston, MA 02110 (telephone (800)
225-6265). The Fund's investment adviser is Eaton Vance Management (the
"Investment Adviser") which is located at the same address.
- -------------------------------------------------------------------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Shareholder and Fund Expenses ............................................. 2
The Fund's Financial Highlights ........................................... 3
The Fund's Investment Objectives .......................................... 4
How the Fund Invests its Assets and Risks
Associated with Investments ............................................. 4
Organization of the Fund ................................................. 8
Management of the Fund .................................................... 9
Service Plan .............................................................. 9
Valuing Fund Shares ....................................................... 10
How to Buy Fund Shares .................................................... 11
How to Redeem Fund Shares ................................................. 13
Reports to Shareholders ................................................... 14
The Lifetime Investing
Account/Distribution Options ............................................ 14
The Eaton Vance Exchange Privilege ........................................ 15
Eaton Vance Shareholder Services .......................................... 16
Distributions and Taxes ................................................... 18
Performance Information ................................................... 18
Statement of Intention and Escrow
Agreement ............................................................... 19
Appendix A ................................................................ 21
Appendix B ................................................................ 24
- -------------------------------------------------------------------------------
PROSPECTUS DATED FEBRUARY 1, 1995
<PAGE>
SHAREHOLDER AND FUND EXPENSES(1)
- ------------------------------------------------------------------------------
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Charge Imposed on Purchases
(as a percentage of offering price) 4.75%
Sales Charges Imposed on Reinvested Distributions None
Redemption Fees None
Exchange Fees None
Contingent Deferred Sales Charges (on purchases
of $1 million or more) Imposed on Redemptions
During the First Eighteen Months (as a percentage
of redemption proceeds exclusive of all reinvestments
and capital appreciation in the account)(2) 1.00%
ANNUAL FUND OPERATING EXPENSES
(as a percentage of average daily net assets)
Investment Adviser Fee 0.625%
Rule 12b-1 Fees (Service Plan) 0.100%
Other Expenses 0.315%
------
Total Operating Expenses 1.040%
======
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
An investor would pay
the following expenses
(including initial maximum
sales charge) on a $1,000
investment, assuming (a) 5%
annual return and (b) redemption
at the end of each time period: $58 $79 $102 $169
Notes:
(1) The purpose of the above table and Example is to assist investors in
understanding the various costs and expenses that investors in the Fund may
bear directly or indirectly. The percentages indicated in the table and the
amounts included in the Example are based on the Fund's fiscal year ended
September 30, 1994. The table and Example should not be considered a
representation of past or future expenses and actual expenses may be greater
or less than those shown. For further information regarding the expenses of
the Fund see "The Fund's Financial Highlights", "Management of the Fund",
"How to Buy Fund Shares" and "Service Plan".
(2) If shares are purchased at net asset value with no initial sales charge by
virtue of the purchase having been in the amount of $1 million or more and
are redeemed within 18 months after the end of the calendar month in which
the purchase was made, a contingent deferred sales charge of 1% will be
imposed on such redemption. See "How to Buy Fund Shares", "How to Redeem
Fund Shares" and "Eaton Vance Shareholder Services".
<PAGE>
THE FUND'S FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------
The following information should be read in conjunction with the financial
statements included in the Statement of Additional Information, all of which has
been so included in reliance upon the report of Coopers & Lybrand L.L.P.,
independent accountants, as experts in accounting and auditing. The financial
highlights for each of the seven years in the period ending September 30, 1991,
presented here, were audited by other auditors whose report dated November 5,
1991, expressed an unqualified opinion on such financial highlights. Further
information regarding the performance of the Fund is contained in the Fund's
annual report to shareholders which may be obtained without charge by contacting
the Fund's Principal Underwriter, Eaton Vance Distributors, Inc.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
---------------------------------------------------------------------------------------------------
1994 1993 1992 1991<F1> 1990<F1> 1989<F1> 1988<F1> 1987<F1> 1986<F1> 1985<F1>
---- ---- ---- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
beginning of year ........... $ 8.40 $ 8.33 $ 7.56 $ 6.89 $ 9.16 $ 9.39 $ 10.07 $ 10.01 $ 9.30 $ 8.51
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
INCOME FROM OPERATIONS:
Net investment income ....... $ 0.83 $ 0.92 $ 0.97 $ 1.04 $ 1.15 $ 1.10 $ 1.08 $ 1.02 $ 1.04 $ 1.01
Net realized and unrealized
gain (loss) on investments (0.47) 0.07 0.77 0.71 (2.26) (0.22) (0.25) 0.08 0.71 0.78
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
From net investment income .. $ (0.81) $ (0.92) $ (0.97) $ (1.04) $ (1.15) $ (1.10) $ (1.30) $ (1.04) $ (1.04) $ (1.00)
From paid-in capital ........ -- -- -- (0.04) (0.01) (0.01) (0.21) -- -- --
In excess of net investment
income .................... (0.05) -- -- -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total distributions ....... $ (0.86) $ (0.92) $ (0.97) $ (1.08) $ (1.16) $ (1.11) $ (1.51) $ (1.04) $ (1.04) $ (1.00)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE, end of year .. $ 7.90 $ 8.40 $ 8.33 $ 7.56 $ 6.89 $ 9.16 $ 9.39 $ 10.07 $ 10.01 $ 9.30
======== ======= ======= =======---======= ======= ======= ======= ======= =======
TOTAL RETURN<F2> .............. 4.25% 12.59% 24.25% 28.53% (13.06%) 9.76% 9.35% 11.11% 19.26% 21.86%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year
(000 omitted) ............. $103,482 $95,123 $85,778 $70,773 $65,588 $45,852 $44,492 $42,824 $38,336 $35,799
Ratio of net expenses to
average daily net assets .. 1.04% 1.03% 1.08% 1.15% 1.05% 1.39% 1.31% 1.21% 1.16% 1.21%
Ratio of net investment
income to average daily net
assets .................... 9.75% 11.01% 12.02% 15.36% 14.26% 11.54% 11.32% 9.84% 10.36% 11.06%
PORTFOLIO TURNOVER ............ 70% 102% 90% 80% 67% 66% 61% 86% 74% 57%
<FN>
<F1>Audited by previous auditors.
<F2>Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset
value on the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net
asset value on the payable date.
</TABLE>
<PAGE>
THE FUND'S INVESTMENT OBJECTIVES
- ------------------------------------------------------------------------------
THE FUND'S PRIMARY INVESTMENT OBJECTIVE IS TO PROVIDE AS MUCH CURRENT INCOME AS
POSSIBLE. In seeking this objective, the Fund currently invests a significant
portion of its assets in high yield, high risk bonds -- i.e. those rated lower
than investment grade and unrated obligations (commonly referred to as "junk
bonds"). The Fund also seeks reasonable preservation of capital to the extent
attainable from such investments, and growth of income and capital, as secondary
objectives.
The high yield, high risk bonds in which the Fund invests are considered
predominently speculative with respect to the ability of the issuer to meet
principal and interest payments. Achievement of the Fund's objectives, which
cannot be assured, are therefore much more dependent on the Investment Adviser's
own credit analysis than is the case for higher quality bonds. Investors are
urged to carefully consider the substantial risks of investing in a portfolio of
high yield, high risk bonds before purchasing shares of the Fund.
HOW THE FUND INVESTS ITS ASSETS AND RISKS ASSOCIATED WITH INVESTMENTS
- ------------------------------------------------------------------------------
THE FUND SEEKS AS MUCH CURRENT INCOME AS POSSIBLE BY INVESTING PRIMARILY IN
HIGH-YIELDING, HIGH RISK, FIXED-INCOME SECURITIES. During its last fiscal year
the Fund invested a significant portion of its assets in high yield, high risk
bonds which were rated lower than investment grade (i.e., bonds rated lower than
Baa by Moody's Investors Service, Inc. ("Moody's") and lower than BBB by
Standard & Poor's Ratings Group ("S&P")) or which were unrated bonds. These
obligations are commonly referred to as "junk bonds", carry a high degree of
risk and are considered speculative by the investment community. At September
30, 1994 (the end of its last fiscal year), the Fund had approximately 96.8% of
its assets invested in such bonds. At January 23, 1995, the Fund had
approximately 98% of its assets invested in such bonds. See Appendix B to this
Prospectus for the asset composition information for the most recent fiscal year
of the Fund. For a description of the Moody's and S&P's ratings of bonds, see
Appendix A to this Prospectus.
A substantial portion of the Fund's assets consists of high yield, high
risk corporate bonds issued in connection with mergers, acquisitions, leveraged
buy-outs, recapitalizations and other highly leveraged transactions. These bonds
are subject to greater credit risks than some of the other fixed- income
securities in which the Fund may invest. These credit risks include the
possibility of non-payment following a default or the bankruptcy of the issuer.
The value of such bonds may also be subject to a greater degree of volatility in
response to interest rate fluctuations, economic downturns and changes in the
financial conditions of the issuer. These bonds may also be less liquid than
other fixed-income securities. During periods of deteriorating economic
conditions and contraction in the credit markets, the ability of issuers of such
bonds to service their debt, meet projected goals, or obtain additional
financing may be impaired. As of January 23, 1995, approximately 43.04% of the
Fund's assets were invested in such bonds.
Credit ratings are based largely on the issuer's historical financial
condition and the rating agency's investment analysis at the time of rating, and
the rating assigned to any particular security is not necessarily a reflection
of the issuer's current financial condition. Credit quality in the high yield,
high risk bond market can change from time to time, and recently issued credit
ratings may not fully reflect the actual risks posed by a particular high yield
security. Although the Fund's Investment Adviser considers security ratings when
making investment decisions, it performs its own credit and investment analysis
and does not rely primarily on the ratings assigned by the rating services. In
evaluating the quality of a particular issue, whether rated or unrated, the
Investment Adviser will normally take into consideration, among other things,
the issuer's financial resources and operating history, its sensitivity to
economic conditions and trends, the ability of its management, its debt maturity
schedules and borrowing requirements, and relative values based on anticipated
cash flow, interest and asset coverages, and earnings prospects. Because of the
greater number of investment considerations involved in investing in high yield,
high risk bonds, the achievement of the Fund's objectives depends more on the
Investment Adviser's judgment and analytical abilities than would be the case if
the Fund were investing primarily in securities in the higher rating categories.
The Fund may also invest a portion of its assets in loan interests, which
are interests in amounts owed by a corporate, governmental or other borrower to
lenders or lending syndicates. Loan interests purchased by the Fund may have a
maturity of any number of days or years, may be secured or unsecured, and may be
of any credit quality. Loan interests, which may take the form of participation
interests in, assignments of or novations of a loan, may be acquired from U.S.
and foreign banks, insurance companies, finance companies or other financial
institutions which have made loans or are members of a lending syndicate or from
the holders of loan interests. Loan interests involve the risk of loss in case
of default or bankruptcy of the borrower and, in the case of participation
interests, involve a risk of insolvency of the agent lending bank or other
financial intermediary. Loan interests are not rated by any nationally
recognized rating service and are, at present, not readily marketable and may be
subject to contractual restrictions on resale. The Fund may also invest in
restricted securities and securities eligible for resale pursuant to Rule 144A
of the Securities Act of 1933. An investment in restricted securities may
involve relative greater risk and cost to the Fund because of their liquidity.
Fixed-income securities that the Fund may invest in also include zero
coupon bonds, deferred interest bonds and bonds on which the interest is payable
in kind ("PIK bonds"). Zero coupon and deferred interest bonds are debt
obligations which are issued at a significant discount from face value. The
discount approximates the total amount of interest the bonds will accrue and
compound over the period until maturity or the first interest accrual date at a
rate of interest reflecting the market rate of the security at the time of
issuance. While zero coupon bonds do not require the periodic payment of
interest, deferred interest bonds provide for a period of delay before the
regular payment of interest begins. PIK bonds are debt obligations which provide
that the issuer thereof may, at its option, pay interest on such bonds in cash
or in the form of additional debt obligations. Such investments benefit the
issuer by mitigating its need for cash to meet debt service, but also require a
higher rate of return to attract investors who are willing to defer receipt of
such cash. Such investments may experience greater volatility in market value
due to changes in interest rates than debt obligations which make regular
payments of interest. The Fund will accrue income on such investments for tax
and accounting purposes, in accordance with applicable law, which income is
distributable to shareholders. Because no cash is received at the time such
income is accrued, the Fund may be required to liquidate other portfolio
securities to satisfy its distribution obligations.
The fixed-income securities in which the Fund may invest include preferred
and preference stocks and all types of debt obligations of both domestic and
foreign issuers, such as bonds, debentures, notes, equipment lease certificates,
equipment trust certificates, conditional sales contracts, commercial paper, and
obligations issued or guaranteed by the U.S. Government, any state or territory
of the United States, any foreign government or any of their respective
political subdivisions, agencies or instrumentalities. Debt securities may bear
fixed, fixed and contingent, floating or variable rates of interest.
The Fund's portfolio may be invested in a broad range of securities,
including fixed-income and equity securities and short-term obligations.
Investment in bonds may include those in both the higher categories of
recognized rating services (such as Moody's Baa and S&P's BBB and above) and in
the lower categories of such services (Moody's Ba and S&P's BB and below) and
unrated bonds. Bonds in the lower rated or unrated categories involve much
greater risk of principal and income, and involve greater volatility of price,
than securities in the higher rated categories. The Fund may also invest in
non-dividend paying common stocks and rights and warrants when the Investment
Adviser believes they present opportunities for capital appreciation.
FIXED-INCOME OBLIGATIONS. Fixed-income obligations offering the high current
income sought by the Fund ordinarily are rated in lower rating categories by
recognized rating agencies or are unrated. Such obligations are subject to
substantially greater credit risks (including, without limitation, the
possibility of default by or bankruptcy of the issuers of such securities and
subordination of such obligations to the prior claims of banks and other senior
creditors) than securities in higher rating categories. The lower quality and
unrated securities in which the Fund invests have speculative characteristics in
varying degrees. The value of such obligations may be more susceptible to real
and perceived adverse economic or industry conditions than is the case of higher
quality bonds. While the Investment Adviser will attempt to reduce the risks of
investing in lower rated or unrated securities through active portfolio
management, diversification, credit analysis and attention to current
developments and trends in the economy and the financial markets, there can be
no assurance that a broadly diversified portfolio of such securities would
substantially lessen the risks of defaults brought about by an economic downturn
or recession. The Fund will take such action as it considers appropriate in the
event of anticipated financial difficulties, default or bankruptcy of the issuer
of any such obligation. The Fund will also incur additional expenditures in
taking protective action with respect to portfolio obligations in default and
assets securing such obligations. The Fund may retain in its portfolio, as an
opportunity for possible capital appreciation, bonds of companies that are being
reorganized or restructured (including defaulted bonds and bonds of bankrupt
companies), when such retention is considered desirable by the Investment
Adviser. The Fund may also acquire other securities issued in exchange for such
obligations or issued in connection with the debt restructuring or
reorganization of the issuers, or where such acquisition, in the judgment of the
Investment Adviser, may enhance the value of such obligations or would otherwise
be consistent with the Fund's investment policies.
The Fund may invest a portion of its assets in debt securities that are not
paying current income in anticipation of the receipt of possible future income
or growth of capital. Interest and/or principal payments thereon could be in
arrears when such securities are acquired, and the issuer may be in bankruptcy
or undergoing a debt restructuring or reorganization. Such securities may be
unrated or the lowest rated obligations (rated C by Moody's or D by S&P). Bonds
rated C by Moody's are regarded as having extremely poor prospects of ever
attaining any real investment standing. Bonds rated D by S&P are in payment
default or a bankruptcy petition has been filed and debt service payments are
jeopardized. Unrated bonds are generally regarded as being speculative and
expose the investor to risks with respect to the issuer's capacity to pay
interest and repay principal which are similar to the risks of lower rated
bonds.
NET ASSET VALUE FLUCTUATION. The net asset value of the Fund will change in
response to fluctuations in prevailing interest rates and changes in the value
of its portfolio securities. When interest rates decline, the value of
securities already held in the Fund's portfolio can be expected to rise.
Conversely, when interest rates rise, the value of existing portfolio securities
can be expected to decline. Although the lower rated and unrated obligations in
the Fund's portfolio may provide higher yields, they may also be subject to a
greater degree of market fluctuation and are subject to substantially greater
investment risks than high quality obligations. Furthermore, the net investment
income provided by the Fund will fluctuate over time. In addition and as
indicated above, the Fund invests in high yield, high risk bonds structured as
zero coupon, deferred interest or pay-in-kind securities; these bonds tend to be
more speculative and may be subject to substantially greater fluctuations in
value due to changes in interest rates than other income bearing obligations.
Therefore, an investment in shares of the Fund will not constitute a complete
investment program and is not appropriate for investors who cannot assume the
greater risk of capital depreciation inherent in seeking higher yields from high
risk bonds.
High yield, high risk corporate bonds are frequently traded in markets
where the number of potential purchasers and sellers is limited. There is no
established resale market for certain of these bonds in which the Fund invests.
These considerations may make it difficult for the Fund to value its portfolio
securities, may affect the choice of securities sold to meet redemption requests
and may have the effect of limiting the ability of the Fund to sell or dispose
of such bonds on favorable terms. The secondary market for high yield, high risk
corporate obligations is relatively new, is volatile and may be disrupted by
war, inflation or economic downturns, and is less liquid than the market for
high quality bonds. In the event of an illiquid market or in the absence of
readily available market quotations for certain of these bonds in the Fund's
portfolio, judgment will play a greater role in the valuation of such bonds
because there is less reliable, objective data available. Adverse market or
economic conditions could make it difficult at times for the Fund to sell or
dispose of certain high yield, high risk bonds. The Fund may also be forced to
sell these bonds at a significant loss to meet shareholder redemptions.
The Fund may invest in securities issued by foreign companies, which
investments may be subject to various risks such as fluctuations in currency and
exchange rates, foreign taxes, social, political and economic conditions in the
countries in which such companies operate, and changes in governmental, economic
or monetary policies both here and abroad. There may be less publicly available
information about a foreign company than about a comparable domestic company,
and since the securities markets in many foreign countries are not as advanced
as those in the United States the securities of many foreign companies are less
liquid and their prices are more volatile than securities of comparable domestic
companies. As of the end of its last fiscal year, the Fund held securities
issued by foreign companies.
FUTURES CONTRACTS AND OPTIONS ON FUTURES CONTRACTS. To hedge against changes in
securities prices, currency exchange rates, interest rates or the rate of
inflation the Fund has the authority to purchase and sell various kinds of
futures contracts and purchase and write call and put options on any of such
futures contracts; it may also enter into closing purchase and sale transactions
with respect to any of such contracts and options. The futures contracts may be
based on various securities in which the Fund may invest, foreign currencies,
certificates of deposit, Eurodollar time deposits, securities indices, economic
indices (such as the Consumer Price indices compiled by the U.S. Department of
Labor) and other financial instruments and indices. The Fund would engage in
futures and related options transactions for bona fide hedging or non-hedging
purposes as defined in or permitted by regulations of the Commodity Futures
Trading Commission. The Fund did not engage in such transactions during its last
fiscal year, and there is no assurance that it will engage in such transactions
in the future.
The Fund may not purchase or sell futures contracts or purchase or sell
related options, except for closing purchase or sale transactions, if
immediately thereafter the sum of the amount of margin deposits on the Fund's
outstanding non-hedging positions in futures and related options and the amount
of premiums paid for outstanding non-hedging positions in options on futures
would exceed 5% of the market value of the Fund's net assets. These transactions
involve brokerage costs, require margin deposits and, in the case of contracts
and options obligating the Fund to purchase securities or commodities, require
the Fund to segregate liquid high grade debt securities in an amount equal to
the underlying value of such contracts and options.
In addition, while transactions in futures contracts and options on futures
may reduce certain risks, such transactions themselves involve (1) liquidity
risk that contractual positions cannot be easily closed out in the event of
market changes, (2) correlation risk that changes in the value of hedging
positions may not match the market fluctuations intended to be hedged
(especially given that the only futures contracts currently available to hedge
corporate fixed income securities are futures on various U.S. Government
securities, stock index futures and on municipal securities indices), (3) market
risk that an incorrect prediction by the Investment Adviser of interest rates
may cause the Fund to perform less well than if such positions had not been
entered into, and (4) skills different from those needed to select portfolio
securities. Thus, while the Fund may benefit from the use of futures and options
on futures, unanticipated changes in securities prices, currency exchange rates,
interest rates or the rate of inflation may result in a poorer overall
performance for the Fund than if it had not entered into any futures contracts
or options transactions. In the event of an imperfect correlation between a
futures position and a portfolio position which is intended to be protected, the
desired protection may not be obtained and the Fund may be exposed to risk of
loss. The loss incurred by the Fund in writing options on futures is potentially
unlimited and may exceed the amount of the premium received. The Fund's futures
transactions may be limited by the requirements of the Internal Revenue Code for
qualification as a regulated investment company.
The Fund has adopted certain fundamental investment restrictions which are
enumerated in detail in the Statement of Additional Information and which may
not be changed unless authorized by a shareholder vote. While the Fund's
investment objectives are not fundamental (i.e., changeable only if authorized
by shareholder vote), the Fund's management believes that any material change of
the investment objectives should be authorized by shareholder vote. If any
changes were made, the Fund might have investment objectives different from the
objectives which an investor considered appropriate at the time the investor
became a shareholder in the Fund.
- --------------------------------------------------------------------------------
IN SEEKING TO PROVIDE AS MUCH CURRENT INCOME AS POSSIBLE, THE FUND INVESTS A
SIGNIFICANT PORTION OF ITS ASSETS IN HIGH YIELD, HIGH RISK CORPORATE BONDS.
THESE OBLIGATIONS CARRY SUBSTANTIALLY GREATER INVESTMENT RISK THAN HIGHER
QUALITY BONDS. ACHIEVEMENT OF THE FUND'S OBJECTIVES, WHICH CANNOT BE ASSURED,
IS THEREFORE MUCH MORE DEPENDENT UPON THE INVESTMENT ADVISER'S OWN CREDIT
ANALYSIS THAN IS THE CASE FOR HIGHER QUALITY BONDS. INVESTORS ARE URGED TO
CAREFULLY CONSIDER THE SUBSTANTIALLY GREATER RISKS OF INVESTING IN A
PORTFOLIO OF HIGH YIELD, HIGH RISK CORPORATE BONDS BEFORE PURCHASING SHARES
OF THE FUND.
- --------------------------------------------------------------------------------
ORGANIZATION OF THE FUND
- ------------------------------------------------------------------------------
THE FUND, A BUSINESS TRUST ESTABLISHED UNDER MASSACHUSETTS LAW PURSUANT TO A
DECLARATION OF TRUST DATED MARCH 27, 1989, AS AMENDED, IS A MUTUAL FUND -- AN
OPEN-END DIVERSIFIED MANAGEMENT INVESTMENT COMPANY. Its predecessor, was
organized as a Maryland corporation and commenced operation in 1971. The
Trustees of the Fund are responsible for the overall management and supervision
of its affairs. The Fund has one class of shares of beneficial interest, an
unlimited number of which may be issued. Each share represents an equal
proportionate beneficial interest in the Fund. When issued and outstanding, the
shares are fully paid and nonassessable by the Fund and redeemable as described
under "How to Redeem Fund Shares". Shareholders are entitled to one vote for
each full share held. Fractional shares may be voted proportionately. Shares
have no preemptive or conversion rights and are freely transferable. Upon
liquidation of the Fund, shareholders are entitled to share pro rata in the net
assets of the Fund available for distribution to shareholders.
MANAGEMENT OF THE FUND
- ------------------------------------------------------------------------------
THE FUND ENGAGES EATON VANCE MANAGEMENT ("EATON VANCE") AS ITS INVESTMENT
ADVISER. EATON VANCE, ITS AFFILIATES AND ITS PREDECESSOR COMPANIES HAVE BEEN
MANAGING ASSETS OF INDIVIDUALS AND INSTITUTIONS SINCE 1924 AND MANAGING
INVESTMENT COMPANIES SINCE 1931.
Acting under the general supervision of the Trustees of the Fund, Eaton
Vance manages the Fund's investments and affairs. Under its investment advisory
agreement with the Fund, Eaton Vance receives a monthly advisory fee of 5/96 of
1% (equivalent to 5/8 of 1% annually) of average monthly net assets of the Fund.
The Fund paid Eaton Vance advisory fees equivalent to 0.625% of the Fund's
average daily net assets for the fiscal year ended September 30, 1994.
Eaton Vance also furnishes for the use of the Fund office space and all
necessary office facilities, equipment and personnel for servicing the
investments of the Fund. The Fund is responsible for the payment of all expenses
other than those expressly stated to be payable by Eaton Vance under the
investment advisory agreement.
Eaton Vance places the Fund's portfolio security transactions for execution
with many broker-dealer firms and uses its best efforts to obtain execution of
such transactions at prices which are advantageous to the Fund and at reasonably
competitive commission rates. Subject to the foregoing, Eaton Vance may consider
sales of shares of the Fund or of other investment companies sponsored by Eaton
Vance as a factor in the selection of broker- dealer firms to execute portfolio
transactions.
Hooker Talcott, Jr. has acted as the portfolio manager since 1986. He has
been a Vice President of Eaton Vance since 1987.
EATON VANCE OR ITS AFFILIATES ACTS AS INVESTMENT ADVISER TO INVESTMENT
COMPANIES AND VARIOUS INDIVIDUAL AND INSTITUTIONAL CLIENTS WITH ASSETS UNDER
MANAGEMENT OF APPROXIMATELY $15 BILLION. Eaton Vance is a wholly-owned
subsidiary of Eaton Vance Corp., a publicly held holding company. Eaton Vance
Corp., through its subsidiaries and affiliates, engages in investment management
and marketing activities, fiduciary and banking services, oil and gas
operations, real estate investment, consulting and management, and development
of precious metals properties. Eaton Vance Distributors, Inc. (the "Principal
Underwriter" or "EVD"), 24 Federal Street, Boston, MA 02110, a wholly-owned
subsidiary of Eaton Vance, acts as Principal Underwriter to the Fund.
SERVICE PLAN
- ------------------------------------------------------------------------------
In addition to advisory fees and other expenses, the Fund pays service fees
pursuant to a Service Plan (the "Plan") designed to meet the requirements of
Rule 12b-1 under the Investment Company Act of 1940 and the service fee
requirements of the revised sales charge rule of the National Association of
Securities Dealers, Inc. The Plan is further described in the Statement of
Additional Information, and the following is a description of the salient
features of the Plan.
THE PLAN PROVIDES THAT THE FUND MAY MAKE SERVICE FEE PAYMENTS FOR PERSONAL
SERVICES AND/OR THE MAINTENANCE OF SHAREHOLDER ACCOUNTS TO THE PRINCIPAL
UNDERWRITER, A FINANCIAL SERVICE FIRM ("AUTHORIZED FIRM") AND OTHER PERSONS IN
AMOUNTS NOT EXCEEDING .25% OF THE FUND'S AVERAGE DAILY NET ASSETS FOR ANY FISCAL
YEAR. The Trustees of the Fund have implemented the Plan by authorizing the Fund
to make quarterly service fee payments to the Principal Underwriter and
Authorized Firms in amounts not expected to exceed .25% of that portion of the
Fund's average daily net assets for any fiscal year which is attributable to
shares of the Fund sold on or after May 22, 1989 and remaining outstanding for
at least twelve months. The Plan replaced the Fund's distribution plan which
originally became effective on May 22, 1989. During the fiscal year ended
September 30, 1994, the Fund made payments under the Plan to the Principal
Underwriter and Authorized Firms equivalent to 0.10% of the Fund's average daily
net assets for such year.
VALUING FUND SHARES
- ------------------------------------------------------------------------------
THE FUND VALUES ITS SHARES ONCE ON EACH DAY THE NEW YORK STOCK EXCHANGE (THE
"EXCHANGE") IS OPEN FOR TRADING, as of the close of regular trading on the
Exchange (normally 4:00 p.m. New York time). The Fund's net asset value per
share is determined by its custodian, Investors Bank & Trust Company ("IBT"),
(as agent for the Fund) in the manner authorized by the Trustees of the Fund.
Net asset value is computed by dividing the value of the Fund's total assets,
less its liabilities, by the number of shares outstanding. Securities listed on
securities exchanges or in the NASDAQ National Market are valued at closing sale
prices. Unlisted or listed securities for which closing sale prices are not
available are valued at the mean between the latest bid and asked prices. Debt
securities will normally be valued on the basis of market valuations furnished
by a pricing service; the pricing service uses information with respect to
transactions in bonds, quotations from bond dealers, market transactions in
comparable securities, various relationships between securities, and yield to
maturity in determining value. Securities for which market quotations are
unavailable, including any security the disposition of which is restricted under
the Securities Act of 1933, and other assets are valued at fair value using
methods determined in good faith by the Trustees. Short-term obligations
maturing in sixty days or less are valued at amortized cost which approximates
market.
Authorized Firms must communicate an investor's order to the Principal
Underwriter prior to the close of the Principal Underwriter's business day to
receive that day's net asset value per share and the public offering price based
thereon. It is the Authorized Firms' responsibility to transmit orders promptly
to the Principal Underwriter, which is a wholly-owned subsidiary of Eaton Vance.
Eaton Vance Corp. owns 77.3% of the outstanding stock of IBT, the Fund's
custodian.
- --------------------------------------------------------------------------------
SHAREHOLDERS MAY DETERMINE THE VALUE OF THEIR INVESTMENT BY MULTIPLYING THE
NUMBER OF FUND SHARES OWNED BY THE CURRENT NET ASSET VALUE.
- --------------------------------------------------------------------------------
HOW TO BUY FUND SHARES
- ------------------------------------------------------------------------------
SHARES OF THE FUND MAY BE PURCHASED FOR CASH OR MAY BE ACQUIRED IN EXCHANGE FOR
SECURITIES. Investors may purchase shares of the Fund through Authorized Firms
at the effective public offering price, which price is based on the effective
net asset value per share plus the applicable sales charge. The Fund receives
the net asset value, while the sales charge is divided between the Authorized
Firm and the Principal Underwriter. The Principal Underwriter will furnish the
names of Authorized Firms to an investor upon request. The Fund may suspend the
offering of shares at any time and may refuse an order for the purchase of
shares.
The sales charge may vary depending on the size of the purchase and the
number of shares of Eaton Vance funds the investor may already own, any
arrangement to purchase additional shares during a 13-month period or special
purchase programs. Complete details of how investors may purchase shares at
reduced sales charges under a Statement of Intention, Right of Accumulation, or
various employee benefit plans are available from Authorized Firms or the
Principal Underwriter.
The current sales charges are:
<TABLE>
<CAPTION>
SALES CHARGE SALES CHARGE DEALER DISCOUNT
AS PERCENTAGE AS PERCENTAGE AS PERCENTAGE
AMOUNT OF PURCHASE OF AMOUNT INVESTED OF OFFERING PRICE OF OFFERING PRICE
<S> <C> <C> <C>
Less than $100,000 .................. 4.99% 4.75% 4.00%
$100,000 but less than $250,000 ..... 3.90 3.75 3.15
$250,000 but less than $500,000 ...... 2.83 2.75 2.30
$500,000 but less than $1,000,000 .. 2.04 2.00 1.70
$1,000,000 or more ................... 0<F1> 0<F1> 0<F2>
<FN>
<F1>No sales charge is payable at the time of purchase on investments of $1 million or more. A
contingent deferred sales charge ("CDSC") of 1% will be imposed on such investments, as
described below, in the event of certain redemption transactions within 18 months of
purchase.
<F2>The Principal Underwriter may pay a commission to Authorized Firms who initiate and are
responsible for purchases of $1 million or more as follows: 1.00% on sales up to $2
million, plus 0.80% on the next $1 million, 0.20% on the next $2 million and 0.08% on the
excess over $5 million.
</TABLE>
The Principal Underwriter may at times allow discounts up to the full sales
charge. During periods when the discount includes the full sales charge, such
Firms may be deemed to be underwriters as that term is defined in the Securities
Act of 1933.
The Principal Underwriter may, from time to time, at its own expense,
provide additional incentives to Authorized Firms which employ registered
representatives who sell a minimum dollar amount of the Fund's shares and/or
shares of other funds distributed by the Principal Underwriter. In some
instances, such additional incentives may be offered only to Authorized Firms
whose representatives are expected to sell significant amounts of shares.
An initial investment in the Fund must be at least $1,000. Once an account
has been established the investor may send investments of $50 or more at any
time directly to the Fund's Transfer Agent (the "Transfer Agent") as follows:
The Shareholder Services Group, Inc., BOS725, P.O. Box 1559, Boston, MA 02104.
The $1,000 minimum initial investment is waived for Bank Draft Investing
accounts, which may be established with an investment of $50 or more. See "Eaton
Vance Shareholder Services".
Shares of the Fund may be sold at net asset value to current and retired
Directors and Trustees of Eaton Vance funds; to officers and employees and
clients of Eaton Vance and its affiliates; to registered representatives and
employees of Authorized Firms; and bank employees who refer customers to
registered representatives of Authorized Firms; and to such persons' spouses and
children under the age of 21 and their beneficial accounts. Shares may also be
issued at net asset value (1) in connection with the merger of an investment
company with the Fund, (2) to investors making an investment as part of a fixed
fee program whereby an entity unaffiliated with the Investment Adviser provides
multiple investment services, such as management, brokerage and custody and (3)
where the amount invested represents redemption proceeds from a mutual fund
unaffiliated with Eaton Vance, if the redemption occurred no more than 60 days
prior to the purchase of Fund shares and the redeemed shares were subject to a
sales charge.
No initial sales charge and no contingent deferred sales charge will be
payable or imposed with respect to shares of the Fund purchased by retirement
plans qualified under Section 401, 403(b) or 457 of the Internal Revenue Code
("Eligible Plans"). In order to purchase shares without a sales charge, the plan
sponsor of an Eligible Plan must notify the transfer agent of the Fund of its
status as an Eligible Plan. Participant accounting services (including trust
fund reconciliation services) will be offered only through third party
recordkeepers and not by EVD. The Fund's Principal Underwriter may pay
commissions to Authorized Firms who initiate and are responsible for purchases
of shares of the Fund by Eligible Plans of up to 1.00% of the amount invested in
such shares.
ACQUIRING FUND SHARES IN EXCHANGE FOR SECURITIES. IBT, as escrow agent,
will receive securities acceptable to Eaton Vance, as investment adviser, in
exchange for Fund shares at the applicable public offering price shown above.
The minimum value of securities or securities and cash accepted for deposit is
$5,000. Securities accepted will be sold by IBT as agent for the account of
their owner on the day of their receipt by IBT or as soon thereafter as
possible. The number of Fund shares to be issued in exchange for securities will
be the aggregate proceeds from the sale of such securities, divided by the
applicable public offering price per Fund share on the day such proceeds are
received. Eaton Vance will use reasonable efforts to obtain the current market
price for such securities but does not guarantee the best available price. Eaton
Vance will absorb any transaction costs, such as commissions, on the sale of the
securities.
Securities determined to be acceptable should be transferred via book entry
or physically delivered, in proper form for transfer, through an Authorized
Firm, together with a completed and signed Letter of Transmittal in approved
form (available from Authorized Firms), as follows:
IN THE CASE OF BOOK ENTRY:
Deliver through Depository Trust Co.
Broker #2212
Investors Bank & Trust Company
For A/C Eaton Vance Income Fund of Boston
IN THE CASE OF PHYSICAL DELIVERY:
Investors Bank & Trust Company
Attention: Eaton Vance Income Fund of Boston
Physical Securities Processing Settlement Area
89 South Street
Boston, MA 02111
Investors who are contemplating an exchange of securities for shares of the
Fund, or their representatives, must contact Eaton Vance to determine whether
the securities are acceptable before forwarding such securities to IBT. Eaton
Vance reserves the right to reject any securities. Exchanging securities for
Fund shares may create a taxable gain or loss. Each investor should consult his
or her tax adviser with respect to the particular Federal, state and local tax
consequences of exchanging securities for Fund shares.
- --------------------------------------------------------------------------------
If you don't have an Authorized Firm, Eaton Vance can recommend one.
- --------------------------------------------------------------------------------
HOW TO REDEEM FUND SHARES
- ------------------------------------------------------------------------------
A SHAREHOLDER MAY REDEEM FUND SHARES BY DELIVERING TO THE SHAREHOLDER SERVICES
GROUP, INC., BOS725, P.O. BOX 1559, BOSTON, MASSACHUSETTS 02104, during its
business hours a written request for redemption in good order, plus any share
certificates with executed stock powers. The redemption price will be based on
the net asset value per share next computed after such delivery. Good order
means that all relevant documents must be endorsed by the record owner(s)
exactly as the shares are registered and the signature(s) must be guaranteed by
a member of either the Securities Transfer Association's STAMP program or the
New York Stock Exchange's Medallion Signature Program, or certain banks, savings
and loan institutions, credit unions, securities dealers, securities exchanges,
clearing agencies and registered securities associations as required by a
regulation of the Securities and Exchange Commission (the "Commission") and
acceptable to The Shareholder Services Group, Inc. In addition, in some cases,
good order may require the furnishing of additional documents such as where
shares are registered in the name of a corporation, partnership or fiduciary.
Within seven days after receipt of a redemption request in good order by
The Shareholder Services Group, Inc., the Fund will make payment in cash for the
net asset value of the shares as of the date determined above and reduced by the
amount of any Federal income tax required to be withheld.
To sell shares at their net asset value through an Authorized Firm (a
repurchase), a shareholder can place a repurchase order with the Authorized
Firm, which may charge a fee. The value of such shares is based upon the net
asset value calculated after EVD, as the Fund's agent, receives the order. It is
the Authorized Firm's responsibility to transmit promptly repurchase orders to
EVD. Throughout this Prospectus, the word "redemption" is generally meant to
include a repurchase.
If shares were recently purchased, the proceeds of redemption (or
repurchase) will not be sent until the check (including a certified or cashier's
check) received for the shares purchased has cleared. Payment for shares
tendered for redemption may be delayed up to 15 days from the purchase date when
the purchase check has not yet cleared. Redemptions or repurchases may result in
a taxable gain or loss.
Due to the high cost of maintaining small accounts, the Fund reserves the
right to redeem Fund accounts with balances of less than $1,000. Prior to such a
redemption, shareholders will be given 60 days written notice to make an
additional purchase. Thus, an investor making an initial investment of $1,000
would not be able to redeem shares without being subject to this policy.
However, no such redemption would be required by the Fund if the cause of the
low account balance was a reduction in the net asset value of Fund shares.
If shares have been purchased at net asset value with no initial sales
charge by virtue of the purchase having been in the amount of $1 million or more
and are redeemed within 18 months after the end of the calendar month in which
the purchase was made, a CDSC of 1% will be imposed on such redemption. The CDSC
will be retained by the Principal Underwriter. The CDSC will be imposed on an
amount equal to the lesser of the current market value or the original purchase
price of the shares redeemed. Accordingly, no CDSC will be imposed on increases
in account value above the initial purchase price, including any dividends or
distributions that have been reinvested in additional shares. In determining
whether a CDSC is applicable to a redemption, the calculation will be made in a
manner that results in the lowest possible rate being charged. It will be
assumed that redemptions are made first from any shares in the shareholder's
account that are not subject to a CDSC.
The CDSC is waived for redemptions involving certain liquidation, merger or
acquisition transactions involving other investment companies. If a shareholder
reinvests redemption proceeds within the 30-day period and in accordance with
the conditions set forth under "Eaton Vance Shareholder Services -- Reinvestment
Privilege," the shareholder's account will be credited with the amount of any
CDSC paid on such redeemed shares.
REPORTS TO SHAREHOLDERS
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THE FUND WILL ISSUE TO ITS SHAREHOLDERS SEMI-ANNUAL AND ANNUAL REPORTS
CONTAINING FINANCIAL STATEMENTS. Financial statements included in annual reports
are audited by the Fund's independent accountants. Shortly after the end of each
year, the Fund will furnish all shareholders with information necessary for
preparing Federal and state income tax returns.
THE LIFETIME INVESTING ACCOUNT/DISTRIBUTION OPTIONS
- ------------------------------------------------------------------------------
AFTER AN INVESTOR MAKES AN INITIAL PURCHASE OF FUND SHARES, THE FUND'S TRANSFER
AGENT, THE SHAREHOLDER SERVICES GROUP, INC., WILL SET UP A LIFETIME INVESTING
ACCOUNT FOR THE INVESTOR ON THE FUND'S RECORDS. This account is a complete
record of all transactions between the investor and the Fund which at all times
shows the balance of shares owned. The Fund will not issue share certificates
except upon request.
At least quarterly, shareholders will receive a statement showing complete
details of any transaction and the current balance in the account. THE LIFETIME
INVESTING ACCOUNT PERMITS A SHAREHOLDER TO MAKE ADDITIONAL INVESTMENTS IN SHARES
BY SENDING A CHECK FOR $50 OR MORE TO The Shareholder Services Group, Inc.
Any questions concerning a shareholder's account or services available may
also be directed by telephone to EATON VANCE SHAREHOLDER SERVICES at 800-225-
6265, extension 2, or in writing to The Shareholder Services Group, Inc.,
BOS725, P.O. Box 1559, Boston, MA 02104 (please provide the name of the
shareholder, the Fund and the account number).
THE FOLLOWING DISTRIBUTION OPTIONS WILL BE AVAILABLE TO ALL LIFETIME
INVESTING ACCOUNTS and may be changed as often as desired by written notice to
the Fund's dividend disbursing agent, The Shareholder Services Group, Inc.,
BOS725, P.O. Box 1559, Boston, MA 02104. The currently effective option will
appear on each account statement.
Share Option -- Dividends and capital gains will be reinvested in
additional shares.
Income Option -- Dividends will be paid in cash and capital gains will be
reinvested in additional shares.
Cash Option -- Dividends and capital gains will be paid in cash.
The Share Option will be assigned if no other option is specified.
Distributions, including those reinvested, will be reduced by any withholding
required under Federal income tax laws.
If the Income Option or Cash Option has been selected, dividend and/or
capital gains distribution checks which are returned by the United States Postal
Service as not deliverable or which remain uncashed for six months or more will
be reinvested in the account at the then current net asset value. Furthermore,
the distribution option on the account will be automatically changed to the
Share Option until such time as the shareholder selects a different option.
DISTRIBUTION INVESTMENT OPTION. In addition to the distribution options set
forth above, dividends and/or capital gains may be invested in additional shares
of another Eaton Vance fund. Before selecting this option, a shareholder should
obtain a prospectus of the other Eaton Vance fund and consider its objectives
and policies carefully.
"STREET NAME" ACCOUNTS. If shares of the Fund are held in a "street name"
account with an Authorized Firm, all recordkeeping, transaction processing and
payments of distributions relating to the beneficial owner's account will be
performed by the Authorized Firm, and not by the Fund and its transfer agent.
Since the Fund will have no record of the beneficial owner's transactions, a
beneficial owner should contact the Authorized Firm to purchase, redeem or
exchange shares, to make changes in or give instructions concerning the account,
or to obtain information about the account. The transfer of shares in a "street
name" account to an account with another dealer or to an account directly with
the Fund involves special procedures and will require the beneficial owner to
obtain historical purchase information about the shares in the account from the
Authorized Firm. Before establishing a "street name" account with an investment
firm, or transferring the account to another investment firm, an investor
wishing to reinvest distributions should determine whether the firm which will
hold the shares allows reinvestment of distributions in "street name" accounts.
- --------------------------------------------------------------------------------
UNDER A LIFETIME INVESTING ACCOUNT A SHAREHOLDER CAN MAKE ADDITIONAL INVESTMENTS
BY SENDING A CHECK FOR $50 OR MORE.
- --------------------------------------------------------------------------------
THE EATON VANCE EXCHANGE PRIVILEGE
- ------------------------------------------------------------------------------
Shares of the Fund may currently be exchanged for shares of any of the following
funds: Eaton Vance Cash Management Fund, Eaton Vance Municipal Bond Fund L.P.,
Eaton Vance Tax Free Reserves and any fund in the Eaton Vance Traditional Group
of Funds on the basis of the net asset value per share of each fund at the time
of the exchange, provided that such exchange offers are available only in states
where shares of the fund being acquired may be legally sold.
Each exchange must involve shares which have a net asset value of at least
$1,000. The exchange privilege may be changed or discontinued without penalty.
Shareholders will be given sixty (60) days notice prior to any termination or
material amendment of the exchange privilege. The Fund does not permit the
exchange privilege to be used for "Market Timing" and may terminate the exchange
privilege for any shareholder account engaged in Market Timing activity. Any
shareholder account for which more that two round-trip exchanges are made within
any twelve month period will be deemed to be engaged in Market Timing.
Furthermore, a group of unrelated accounts for which exchanges are entered
contemporaneously by a financial intermediary will be considered to be engaged
in Market Timing.
Shares of the Fund which are subject to a CDSC may be exchanged into any of
the above funds without incurring the CDSC. The shares acquired in an exchange
may be subject to a CDSC upon redemption. For purposes of computing the CDSC
payable upon redemption of shares acquired in an exchange, the holding period of
the original shares is added to the holding period of the shares acquired in the
exchange.
The Shareholder Services Group, Inc. makes exchanges at the next determined
net asset value after receiving an exchange request in good order (see "How to
Redeem Fund Shares"). Consult The Shareholder Services Group, Inc. for
additional information concerning the exchange privilege. Applications and
prospectuses of the other funds are available from Authorized Firms or the
Principal Underwriter. The prospectus for each fund describes its investment
objectives and policies, and shareholders should obtain a prospectus and
consider these objectives and policies carefully before requesting an exchange.
Shares of certain other funds for which Eaton Vance acts as investment
adviser or administrator may be exchanged for Fund shares at their respective
net asset value per share, but subject to any restrictions or qualifications set
forth in the current prospectus of any such fund.
Telephone exchanges are accepted by The Shareholder Services Group, Inc.
provided the investor has not disclaimed in writing the use of the privilege. To
effect such exchanges, call The Shareholder Services Group, Inc. at 800-
262-1122 or, within Massachusetts, 617-573-9403, Monday through Friday, 9:00
a.m. to 4:00 p.m. (Eastern Standard Time). Shares acquired by telephone exchange
must be registered in the same name(s) and with the same address as the shares
beings exchanged. Neither the Fund, the Principal Underwriter nor The
Shareholder Services Group, Inc. will be responsible for the authenticity of
exchange instructions received by telephone, provided that reasonable procedures
to confirm that instructions communicated are genuine have been followed.
Telephone instructions will be tape recorded. In times of drastic economic or
market changes, a telephone exchange may be difficult to implement. An exchange
may result in a taxable gain or loss.
EATON VANCE SHAREHOLDER SERVICES
- ------------------------------------------------------------------------------
THE FUND OFFERS THE FOLLOWING SERVICES, WHICH ARE VOLUNTARY, INVOLVE NO EXTRA
CHARGE, AND MAY BE CHANGED OR DISCONTINUED WITHOUT PENALTY AT ANY TIME. Full
information on each of the services described below and an application, where
required, are available from Authorized Firms or the Principal Underwriter. The
cost of administering such services for the benefit of shareholders who
participate in them is borne by the Fund as an expense to all shareholders.
INVEST-BY-MAIL -- FOR PERIODIC SHARE ACCUMULATION: Once the $1,000 minimum
investment has been made, checks of $50 or more payable to the order of the Fund
may be mailed directly to The Shareholder Services Group, Inc., BOS725, P.O. Box
1559, Boston, MA 02104 at any time -- whether or not dividends are reinvested.
The name of the shareholder, the Fund and the account number should accompany
each investment.
BANK DRAFT INVESTING -- FOR REGULAR SHARE ACCUMULATION: Cash investments of $50
or more may be made through the shareholder's checking account via bank draft
each month or quarter. The $1,000 minimum initial investment and small account
redemption policy are waived for these accounts.
STATEMENT OF INTENTION: Purchases of $100,000 or more made over a 13-month
period are eligible for reduced sales charges. See "Statement of Intention and
Escrow Agreement."
RIGHT OF ACCUMULATION: Purchases may qualify for reduced sales charges when the
current market value of holdings (shares at current offering price), plus new
purchases, reaches $100,000 or more. Shares of the Eaton Vance funds mentioned
under "The Eaton Vance Exchange Privilege" may be combined under the Statement
of Intention and Right of Accumulation.
WITHDRAWAL PLAN: A shareholder may draw on shareholdings systematically with
monthly or quarterly checks in an amount specified by the shareholder. A minimum
deposit of $5,000 in shares is required. The maintenance of a withdrawal plan
concurrently with purchases of additional shares would be disadvantageous
because of the sales charge included in such purchases.
REINVESTMENT PRIVILEGE: A SHAREHOLDER WHO HAS REPURCHASED OR REDEEMED SHARES MAY
REINVEST ANY PORTION OR ALL OF THE REPURCHASE OR REDEMPTION PROCEEDS (PLUS THAT
AMOUNT NECESSARY TO ACQUIRE A FRACTIONAL SHARE TO ROUND OFF THE PURCHASE TO THE
NEAREST FULL SHARE), IN SHARES OF THE FUND, or, provided that the shares
repurchased or redeemed have been held for at least 30 days, in shares of any of
the other funds offered by the Principal Underwriter with an initial sales
charge at net asset value, provided that the reinvestment is effected within 30
days after such repurchase or redemption. Shares are sold to a reinvesting
shareholder at the net asset value next determined following timely receipt of a
written purchase order by the Principal Underwriter or by the fund whose shares
are to be purchased (or by such fund's Transfer Agent). The privilege is also
available to holders of shares of the other funds offered with an initial sales
charge by the Principal Underwriter who wish to reinvest such redemption or
repurchase proceeds in shares of the Fund. If a shareholder reinvests redemption
proceeds within the 30 day period, the shareholder's account will be credited
with the amount of any CDSC paid on such redeemed shares. To the extent that any
shares of the Fund are sold at a loss and the proceeds are reinvested in shares
of the Fund (or other shares of the Fund are acquired within the period
beginning 30 days before and ending 30 days after the date of the redemption)
some or all of the loss generally will not be allowed as a tax deduction.
Shareholders should consult their tax advisers concerning the tax consequences
of reinvestments.
TAX-SHELTERED RETIREMENT PLANS: Shares of the Fund are available for purchase in
connection with the following tax-sheltered retirement plans:
-- Pension and Profit Sharing Plans for self-employed individuals,
corporations and non-profit organizations;
-- Individual Retirement Account Plans for individuals and their non-
employed spouses; and
-- 403(b) Retirement Plans for employees of public school systems,
hospitals, colleges and other non-profit organizations meeting certain
requirements of the Internal Revenue Code.
Detailed information concerning these plans, including certain exceptions
to minimum investment requirements, and copies of the plans are available from
the Principal Underwriter. This information should be read carefully and
consultation with an attorney or tax adviser may be advisable. The information
sets forth the service fee charged for retirement plans and describes the
Federal income tax consequences of establishing a plan. Under all plans,
dividends and distributions will be automatically reinvested in additional
shares.
DISTRIBUTIONS AND TAXES
- ------------------------------------------------------------------------------
DISTRIBUTIONS. Substantially all of the investment income earned by the Fund,
less its expenses, will be declared daily as a distribution to shareholders of
record at the time of declaration. Such distributions whether taken in cash or
reinvested in additional shares, will ordinarily be paid on the last day of each
month or the next business day thereafter. Capital gains, if any, realized on
sales of investments and on options and futures transactions will be reduced by
any capital loss carryovers and will be distributed at least once a year,
usually in December. Daily distribution crediting will commence on the day that
collected funds for the purchase of Fund shares are available at the Fund's
Transfer Agent.
TAXES. For Federal income tax purposes, a shareholder's proportionate share of
distributions from the Fund's net investment income and net short-term capital
gains and certain foreign exchange gains are taxable as ordinary income, whether
received in cash or reinvested in additional shares. A small portion of
distributions from net investment income may be eligible for the dividends
received deduction for corporations. A shareholder's proportionate share of
distributions from the Fund's net long-term capital gain is taxable as long-term
capital gains whether received in cash or reinvested in additional shares,
regardless of the length of time Fund shares have been owned by the shareholder.
If shares are purchased shortly before the record date of a distribution, the
shareholder will pay the full price for the shares and then receive some portion
of the price back as a taxable distribution.
Sales charges paid upon a purchase of shares of the Fund cannot be taken
into account for purposes of determining gain or loss on a redemption or
exchange of the shares before the 91st day after their purchase to the extent
shares of the Fund or of another fund are subsequently acquired pursuant to the
Fund's reinvestment or exchange privilege. In addition, losses realized on a
redemption of Fund shares may be disallowed under certain "wash sale" rules if
within a period beginning 30 days before and ending 30 days after the date of
redemption other shares of the Fund are acquired. Any disregarded or disallowed
amounts will result in an adjustment to the shareholder's tax basis in some or
all of any other shares acquired.
Shareholders will receive annually one or more Forms 1099 to assist in
reporting on their Federal and state income tax returns the prior calendar
year's distributions, proceeds from the redemption or exchange of Fund shares,
and Federal income tax (if any) withheld by the Fund's Transfer Agent.
- --------------------------------------------------------------------------------
AS A REGULATED INVESTMENT COMPANY UNDER THE INTERNAL REVENUE CODE, THE FUND DOES
NOT PAY FEDERAL INCOME OR EXCISE TAXES TO THE EXTENT THAT IT DISTRIBUTES TO
SHAREHOLDERS ITS NET INVESTMENT INCOME AND NET REALIZED CAPITAL GAINS IN
ACCORDANCE WITH THE TIMING REQUIREMENTS IMPOSED BY THE CODE.
- --------------------------------------------------------------------------------
PERFORMANCE INFORMATION
- ------------------------------------------------------------------------------
FROM TIME TO TIME, THE FUND MAY ADVERTISE ITS YIELD AND/OR AVERAGE ANNUAL TOTAL
RETURN. The current yield for the Fund will be calculated by dividing the net
investment income per share during a recent 30 day period by the maximum
offering price per share of the Fund on the last day of the period and
annualizing the resulting figure. The Fund's average annual total return is
determined by multiplying a hypothetical initial purchase order of $1,000 by the
average annual compound rate of return (including capital appreciation/
depreciation, and dividends and distributions paid and reinvested) for the
stated period and annualizing the result. The calculation assumes the maximum
sales charge is deducted from the initial $1,000 purchase order and that all
dividends and distributions are reinvested at net asset value on the
reinvestment dates during the period. The Fund may also publish annual and
cumulative total return figures from time to time.
The Fund may also publish its distribution rate and/or its effective
distribution rate. The Fund's distribution rate is computed by dividing the most
recent monthly distribution per share annualized by the current net asset value
per share. The Fund's effective distribution rate is computed by dividing the
distribution rate by the ratio used to annualize the distribution and
reinvesting the resulting amount for a full year on the basis of such ratio. The
effective distribution rate will be higher than the distribution rate because of
the compounding effect of the assumed reinvestment. Investors should note that
the Fund's yield is calculated using a standardized formula the income component
of which is computed from the yields to maturity of all debt obligations in the
Fund's portfolio based on the market value of such obligations and from
dividends from equity securities based on stated annual rates, exclusive of
special or extra distributions (with all purchases and sales of securities
during such period included in the income calculation on a settlement date
basis), whereas the distribution rate is based on the Fund's last monthly
distribution which tends to be relatively stable and may be more or less than
the amount of net investment income and short-term capital gain actually earned
by the Fund during the month.
The Fund may also furnish total return calculations based on investments at
various sales charge levels or at net asset value. Any performance data which is
based on the Fund's net asset value per share would be reduced if a sales charge
were taken into account.
Investors should note that the investment results of the Fund will
fluctuate over time, and any presentation of the Fund's total return for any
prior period should not be considered a representation of what an investment may
earn or what an investor's total return may be in any future period.
STATEMENT OF INTENTION AND ESCROW AGREEMENT
- ------------------------------------------------------------------------------
TERMS OF ESCROW. If the investor, on an application, makes a Statement of
Intention to invest a specified amount over a thirteen month period, then out of
the initial purchase (or subsequent purchases if necessary) 5% of the dollar
amount specified on the application shall be held in escrow by the escrow agent
in the form of shares (computed to the nearest full share at the public offering
price applicable to the initial purchase hereunder) registered in the investor's
name. All income dividends and capital gains distributions on escrowed shares
will be paid to the investor or to the investor's order.
When the minimum investment so specified is completed, the escrowed shares
will be delivered to the investor. If the investor has an accumulation account
the shares will remain on deposit under the account.
If total purchases under this Statement of Intention are less than the
amount specified, the investor will promptly remit to EVD any difference between
the sales charge on the amount specified and on the amount actually purchased.
If the investor does not within 20 days after written request by EVD or the
Authorized Firm pay such difference in sales charge, the escrow agent will
redeem an appropriate number of the escrowed shares in order to realize such
difference. Full shares remaining after any such redemption together with any
excess cash proceeds of the shares so redeemed will be delivered to the investor
or to the investor's order by the escrow agent.
In signing the application, the investor irrevocably constitutes and
appoints the escrow agent the attorney to surrender for redemption any or all
escrowed shares with full power of substitution in the premises.
PROVISION FOR RETROACTIVE PRICE ADJUSTMENT. If total purchases made under this
Statement are large enough to qualify for a lower sales charge than that
applicable to the amount specified, all transactions will be computed at the
expiration date of this Statement to give effect to the lower charge. Any
difference in sales charge will be refunded to the investor in cash, or applied
to the purchase of additional shares at the lower charge if specified by the
investor. This refund will be made by the Authorized Firm and by EVD. If at the
time of the recomputation a firm other than the original firm is placing the
orders, the adjustment will be made only on those shares purchased through the
firm then handling the account.
<PAGE>
APPENDIX A
DESCRIPTION OF MOODY'S INVESTORS SERVICE, INC.'S CORPORATE BOND RATINGS:
Aaa: Bonds which are rated Aaa are judged to be of the best quality. They carry
the smallest degree of investment risk and are generally referred to as
"gilt-edge". Interest payments are protected by a large or by an exceptionally
stable margin and principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong position of such issues.
Aa: Bonds which are rated Aa are judged to be of high quality by all standards.
Together with the Aaa group they comprise what are generally known as high grade
bonds. They are rated lower than the best bonds because margins of protection
may not be as large as in Aaa securities or fluctuation of protective elements
may be of greater amplitude or there may be other elements present which make
the long-term risks appear somewhat larger than in Aaa securities.
A: Bonds which are rated A possess many favorable investment attributes and are
to be considered as upper medium grade obligations. Factors giving security to
principal and interest are considered adequate, but elements may be present
which suggest a susceptibility to impairment sometime in the future.
SECURITIES IN WHICH THE FUND MAY INVEST WILL INCLUDE THOSE IN THE FOLLOWING
CATEGORIES:
Baa: Bonds which are rated Baa are considered as medium grade obligations, i.e.,
they are neither highly protected nor poorly secured. Interest payments and
principal security appear adequate for the present, but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and in
fact have speculative characteristics as well.
Ba: Bonds which are rated Ba are judged to have speculative elements; their
future cannot be considered as well assured. Often the protection of interest
and principal payments may be very moderate and thereby not well safeguarded
during both good and bad times over the future. Uncertainty of position
characterizes bonds in this class.
B: Bonds which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of maintenance of
other terms of the contract over any long period of time may be small.
Caa: Bonds which are rated Caa are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to principal or
interest.
Ca: Bonds which are rated Ca represent obligations which are speculative in a
high degree. Such issues are often in default or have other marked shortcomings.
C: Bonds which are rated C are the lowest rated class of bonds, and issues so
rated can be regarded as having extremely poor prospects of ever attaining any
real investment standing.
NOTE: Moody's applies numerical modifiers, 1, 2 and 3 in each generic rating
classification from Aa to B. The modifier 1 indicates that the company ranks in
the higher end of its generic rating category; the modifier 2 indicates a
mid-range ranking; and the modifier 3 indicates that the company ranks in the
lower end of its generic rating category.
DESCRIPTION OF STANDARD & POOR'S RATINGS GROUP CORPORATE BOND RATINGS:
INVESTMENT GRADE
AAA: Bonds rated AAA have the highest rating assigned by Standard & Poor's.
Capacity to pay interest and repay principal is extremely strong.
AA: Bonds rated AA have a very strong capacity to pay interest and repay
principal and differ from the higher rated issues only in small degree.
A: Bonds rated A have a strong capacity to pay interest and repay principal
although they are somewhat more susceptible to the adverse effects of changes in
circumstances and economic conditions than bonds in higher rated categories.
SECURITIES IN WHICH THE FUND MAY INVEST WILL INCLUDE THOSE IN THE FOLLOWING
CATEGORIES:
BBB: Bonds rated BBB are regarded as having an adequate capacity to pay interest
and repay principal. Whereas they normally exhibit adequate protection
parameters, adverse economic conditions or changing circumstances are more
likely to lead to a weakened capacity to pay interest and repay principal for
bonds in this category than for bonds in higher rated categories.
SPECULATIVE GRADE
Debt rated BB, B, CCC, CC, and C is regarded as having predominantly speculative
characteristics with respect to capacity to pay interest and repay principal. BB
indicates the least degree of speculation and C the highest. While such debt
will likely have some quality and protective characteristics, these are
outweighed by large uncertainties or major exposures to adverse conditions.
BB: Debt rated BB has less near-term vulnerability to default than other
speculative issues. However, it faces major ongoing uncertainties or exposure to
adverse business, financial, or economic conditions which could lead to
inadequate capacity to meet timely interest and principal payments. The BB
rating category is also used for debt subordinated to senior debt that is
assigned an actual or implied BBB- rating.
B: Debt rated B has a greater vulnerability to default but currently has the
capacity to meet interest payments and principal repayments. Adverse business,
financial, or economic conditions will likely impair capacity or willingness to
pay interest and repay principal. The B rating category is also used for debt
subordinated to senior debt that is assigned an actual or implied BB or BB-
rating.
CCC: Debt rated CCC has a currently identifiable vulnerability to default, and
is dependent upon favorable business, financial, and economic conditions to meet
timely payment of interest and repayment of principal. In the event of adverse
business, financial, or economic conditions, it is not likely to have the
capacity to pay interest and repay principal. The CCC rating category is also
used for debt subordinated to senior debt that is assigned an actual or implied
B or B- rating.
CC: The rating CC is typically applied to debt subordinated to senior debt which
is assigned an actual or implied CCC debt rating.
C: The rating C is typically applied to debt subordinated to senior debt which
is assigned an actual or implied CCC- debt rating. The C rating may be used to
cover a situation where a bankruptcy petition has been filed, but debt service
payments are continued.
C1: The Rating C1 is reserved for income bonds on which no interest is being
paid.
D: Debt rated D is in payment default. The D rating category is used when
interest payments or principal payments are not made on the date due even if the
applicable grace period has not expired, unless Standard & Poor's believes that
such payments will be made during such grace period. The D rating also will be
used upon the filing of a bankruptcy petition if debt service payments are
jeopardized.
PLUS(+) OR MINUS (-): The ratings from AA to CCC may be modified by the addition
of a plus or minus sign to show relative standing within the major rating
categories.
p: The letter "p" indicates that the rating is provisional. A provisional rating
assumes the successful completion of the project being financed by the debt
being rated and indicates that payment of debt service requirements is largely
or entirely dependent upon the successful and timely completion of the project.
This rating, however, while addressing credit quality subsequent to completion
of the project, makes no comment on the likelihood of, or the risk of default
upon failure of such completion. The investor should exercise his own judgment
with respect to such likelihood and risk.
L: The letter "L" indicates that the rating pertains to the principal amount of
those bonds to the extent that the underlying deposit collateral is insured by
the Federal Deposit Insurance Corp. and interest is adequately collateralized.
In the case of certificates of deposit, the letter "L" indicates that the
deposit, combined with other deposits being held in the same right and capacity,
will be honored for principal and accrued pre-default interest up to the federal
insurance limits within 30 days after closing of the insured institution or, in
the event that the deposit is assumed by a successor insured institution, upon
maturity.
NR: Bonds may lack a Standard & Poor's rating because no public rating has been
requested, because there is insufficient information on which to base a rating,
or because Standard & Poor's does not rate a particular type of obligation as a
matter of policy.
Notes: Bonds which are unrated expose the investor to risks with respect to
capacity to pay interest or repay principal which are similar to the risks of
lower-rated speculative obligations. The Fund is dependent on the Investment
Adviser's judgment, analysis and experience in the evaluation of such bonds.
Investors should note that the assignment of a rating to a bond by a rating
service may not reflect the effect of recent developments on the issuer's
ability to make interest and principal payments.
<PAGE>
APPENDIX B
EATON VANCE INCOME FUND OF BOSTON
ASSET COMPOSITION INFORMATION
FOR FISCAL YEAR ENDED SEPTEMBER 30, 1994
Percent of
Net Assets
----------
Common Stocks & Warrants ............................. 1.0%
Short-Term Obligations ............................... 1.4%
Debt Securities -- Moody's Rating
Ba ............................................... 7.7%
B1 ............................................... 22.0%
B2 ............................................... 27.2%
B3 ............................................... 26.1%
Caa .............................................. 9.6%
Unrated .......................................... 5.0%
----
Total ............................................ 100.0%
The chart above indicates the weighted average composition of the Fund's
portfolio for the fiscal year ended September 30, 1994, with the debt securities
rated by Moody's Investors Service, Inc. separated into the indicated
categories. The weighted average indicated above was calculated on a dollar
weighted basis and was computed as at the end of each month during the fiscal
year. The chart does not necessarily indicate what the composition of the Fund's
portfolio will be in the current and subsequent fiscal years.
For a description of Moody's Investors Service, Inc's. ratings of fixed-
income securities, see Appendix A to this Prospectus.
<PAGE>
INVESTMENT ADVISER
Eaton Vance Management
24 Federal Street
Boston, MA 02110
PRINCIPAL UNDERWRITER
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(800) 225-6265
CUSTODIAN
Investors Bank & Trust Company
24 Federal Street
Boston, MA 02110
TRANSFER AGENT
The Shareholder Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
(800) 262-1122
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
One Post Office Square
Boston, MA 02109
LEGAL COUNSEL
Gordon Altman Butowsky
Weitzen Shalov & Wein
114 West 47th Street
New York, New York 10036
EATON VANCE
INCOME FUND
OF BOSTON
24 Federal Street
Boston, MA 02110
IBP
[LOGO] EATON VANCE
INCOME FUND
OF BOSTON
PROSPECTUS
FEBRUARY 1, 1995
-----------------------------
Seeking to provice as much
-----------------------------
current income as possible
-----------------------------
by investing primarily in
-----------------------------
high-yielding, high risk
-----------------------------
fixed-income securities
-----------------------------
-----------------------------
The
Boston
Tradition
