Eaton Vance Limited Duration Income Fund claims to invest in a portfolio of low-duration bonds. Low-duration bonds should outperform high-duration bonds during rising rate environments, yet EVV is significantly underperforming the broader indices.

EVV: Good In Concept But Distribution Sustainability Is A Big Concern

EVV is a fixed income CEF with a multi-asset composition. The CEF has posted a positive total return since our Buy rating in May.

EVV: Continuing To Outperform Since Our Buy Rating

EVV's latest report shows us that the distribution continues to lack distribution coverage by a sizeable margin. The fund's fairly sizeable allocation to senior loan exposure is only showing a minimal impact.

EVV: Distribution Coverage Remains Weak, Caution Is Warranted

EVV is one of the highest-paying Eaton Vance funds. Unfortunately, it continues to remain significantly short on coverage. Eaton Vance generally pays more sustainable distributions, but this one is overpaying.

EVV: Falls To A Discount, But Still Cautious

PCEF: Shrinking Capital And Income

EVV hasn't covered its generous distribution for a while, which is why I own it personally but not in any of our model Income Factory portfolios.

Eaton Vance Limited Duration Income Fund's Growing Coverage Gap

Eaton Vance Limited Duration Income Fund is a closed-ended fixed income mutual fund launched and managed by Eaton Vance Management. The fund invests in the fixed income markets of the United States. It primarily invests in senior, secured floating-rate loans, government agency mortgage-backed securities, and corporate bonds that are rated below investment grade. The fund seeks to maintain an average duration of three and a half years and average quality BBB/BBB- in its investments. It benchmarks the performance of its portfolio against the S&P/LSTA Leveraged Loan Index, the Merrill Lynch U.S. High Yield Index, and the Barclays Capital U.S. Intermediate Government Bond Index. Eaton Vance Limited Duration Income Fund was formed on May 30, 2003 and is domiciled in the United States.