Edgar Filing: Eaton Vance Short Duration Diversified Income Fund

Eaton Vance Short Duration Diversified Income Fund

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-21563

Investment Company Act File Number

Eaton Vance Short Duration Diversified Income Fund

(Exact Name of Registrant as Specified in Charter)

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

Maureen A. Gemma

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

(617) 482-8260

(Registrant’s Telephone Number, Including Area Code)

October 31

Date of Fiscal Year End

July 31, 2009

Date of Reporting Period

TABLE OF CONTENTS


	Item 1. Schedule of Investments
	Item 2. Controls and Procedures
Signatures
EX-99.CERT Section 302 Certification

Item 1. Schedule of Investments


Eaton Vance Short Duration Diversified Income Fund	as of July 31, 2009

PORTFOLIO OF INVESTMENTS (Unaudited)

Senior Floating-Rate Interests — 57.7%⁽¹⁾


Principal
Amount*
(000’s omitted)		Borrower/Tranche Description	Value
Aerospace and Defense — 1.2%
		ACTS Aero Technical Support & Service, Inc.
	188	Term Loan, 0.00%, Maturing October 5, 2014⁽²⁾	$	42,718
		DAE Aviation Holdings, Inc.
	113	Term Loan, 4.24%, Maturing July 31, 2014		93,531
	115	Term Loan, 4.24%, Maturing July 31, 2014		95,362
		Evergreen International Aviation
	261	Term Loan, 11.50%, Maturing October 31, 2011		160,004
		Hawker Beechcraft Acquisition
	1,866	Term Loan, 2.39%, Maturing March 26, 2014		1,275,881
	110	Term Loan, 2.60%, Maturing March 26, 2014		75,303
		Hexcel Corp.
	500	Term Loan, 6.50%, Maturing May 21, 2014		502,084
		TransDigm, Inc.
	1,000	Term Loan, 2.41%, Maturing June 23, 2013		970,833
		Vought Aircraft Industries, Inc.
	121	Term Loan, 2.94%, Maturing December 17, 2011		118,182
	369	Term Loan, 7.50%, Maturing December 17, 2011		362,088

			$	3,695,986

Air Transport — 0.4%
		Delta Air Lines, Inc.
	500	Term Loan, 2.23%, Maturing April 30, 2012	$	395,000
	343	Term Loan - Second Lien, 3.55%, Maturing April 30, 2014		235,955
		Northwest Airlines, Inc.
	813	Term Loan, 2.29%, Maturing December 31, 2010		777,030

			$	1,407,985

Automotive — 2.9%
		Accuride Corp.
	536	Term Loan, 3.00%, Maturing January 31, 2012	$	494,166
		Adesa, Inc.
	885	Term Loan, 2.54%, Maturing October 18, 2013		825,570
		Allison Transmission, Inc.
	794	Term Loan, 3.06%, Maturing September 30, 2014		692,092
		Dayco Europe S.R.I.
EUR	222	Term Loan, 0.00%, Maturing June 21, 2010⁽²⁾		76,957
		Dayco Products, LLC
	491	Term Loan, 0.00%, Maturing June 21, 2011⁽²⁾		138,036
		Delphi Corp.
	622	DIP Loan, 8.25%, Maturing September 30, 2009		622,492
		Federal-Mogul Corp.
	292	Term Loan, 2.24%, Maturing December 27, 2014		221,342
	226	Term Loan, 2.23%, Maturing December 27, 2015		171,362
		Ford Motor Co.
	487	Term Loan, 3.50%, Maturing December 15, 2013		415,695
		Goodyear Tire & Rubber Co.
	3,175	Term Loan - Second Lien, 2.04%, Maturing April 30, 2010		2,942,168
		HLI Operating Co., Inc.
	359	DIP Loan, 26.00%, Maturing November 30, 2009⁽⁴⁾		344,200
EUR	27	Term Loan, 3.56%, Maturing May 30, 2014		2,915
EUR	1,297	Term Loan, 9.50%, Maturing May 30, 2014		140,975
		Keystone Automotive Operations, Inc.
	237	Term Loan, 3.79%, Maturing January 12, 2012		112,344


Principal
Amount*
(000’s omitted)		Borrower/Tranche Description	Value
		LKQ Corp.
	242	Term Loan, 2.55%, Maturing October 12, 2014	$	237,463
		TriMas Corp.
	1,070	Term Loan, 2.62%, Maturing August 2, 2011		965,957
	296	Term Loan, 2.65%, Maturing August 2, 2013		267,419
		TRW Automotive, Inc.
	499	Term Loan, 6.31%, Maturing February 2, 2014		474,727

			$	9,145,880

Beverage and Tobacco — 0.0%
		Culligan International Co.
EUR	300	Term Loan - Second Lien, 5.48%, Maturing May 31, 2013	$	110,461

			$	110,461

Building and Development — 1.2%
		Brickman Group Holdings, Inc.
	587	Term Loan, 2.34%, Maturing January 23, 2014	$	538,984
		Building Materials Corp. of America
	390	Term Loan, 3.06%, Maturing February 22, 2014		350,938
		Epco/Fantome, LLC
	440	Term Loan, 2.91%, Maturing November 23, 2010		336,600
		Hovstone Holdings, LLC
	134	Term Loan, 5.50%, Maturing September 25, 2009⁽³⁾⁽⁴⁾		54,039
		LNR Property Corp.
	631	Term Loan, 3.81%, Maturing July 3, 2011		385,076
		Mueller Water Products, Inc.
	404	Term Loan, 6.03%, Maturing May 24, 2014		372,116
		Panolam Industries Holdings, Inc.
	156	Term Loan, 5.00%, Maturing September 30, 2012		114,865
		Realogy Corp.
	255	Term Loan, 3.28%, Maturing September 1, 2014		197,355
	946	Term Loan, 3.31%, Maturing September 1, 2014		733,033
		Wintergames Acquisition ULC
	732	Term Loan, 7.79%, Maturing October 31, 2009		577,461

			$	3,660,467

Business Equipment and Services — 5.3%
		Activant Solutions, Inc.
	500	Term Loan, 2.48%, Maturing May 1, 2013	$	452,500
		Acxiom Corp.
	468	Term Loan, 2.37%, Maturing September 15, 2012		450,395
		Affiliated Computer Services
	497	Term Loan, 2.29%, Maturing March 20, 2013		488,852
		Affinion Group, Inc.
	1,394	Term Loan, 2.79%, Maturing October 17, 2012		1,328,835
		Allied Barton Security Service
	199	Term Loan, 6.75%, Maturing February 21, 2015		199,607
		Education Management, LLC
	1,415	Term Loan, 2.38%, Maturing June 1, 2013		1,358,337
		Info USA, Inc.
	88	Term Loan, 2.60%, Maturing February 14, 2012		83,590
		Intergraph Corp.
	921	Term Loan, 2.66%, Maturing May 29, 2014		876,696
		Mitchell International, Inc.
	191	Term Loan, 2.63%, Maturing March 28, 2014		167,013
		N.E.W. Holdings I, LLC
	260	Term Loan, 2.80%, Maturing May 22, 2014		240,871
		Protection One, Inc.
	1,051	Term Loan, 2.54%, Maturing March 31, 2012		1,003,835
		Quintiles Transnational Corp.
	888	Term Loan, 2.48%, Maturing March 31, 2013		842,743


Principal
Amount*
(000’s omitted)		Borrower/Tranche Description	Value
		Sabre, Inc.
	1,365	Term Loan, 2.67%, Maturing September 30, 2014	$	1,103,615
		Serena Software, Inc.
	1,193	Term Loan, 2.63%, Maturing March 10, 2013		1,100,081
		Sitel (Client Logic)
	273	Term Loan, 5.96%, Maturing January 29, 2014		203,535
		SunGard Data Systems, Inc.
	82	Term Loan, 2.45%, Maturing February 11, 2013		77,943
	2,318	Term Loan, 4.35%, Maturing February 28, 2016		2,226,215
		TDS Investor Corp.
EUR	526	Term Loan, 3.62%, Maturing August 23, 2013		584,545
		Ticketmaster
	1,000	Term Loan, 3.60%, Maturing July 22, 2014		970,000
		Valassis Communications, Inc.
	108	Term Loan, 2.04%, Maturing March 2, 2014		103,122
	481	Term Loan, 2.04%, Maturing March 2, 2014		458,234
		VWR International, Inc.
	950	Term Loan, 2.79%, Maturing June 28, 2013		872,021
		West Corp.
	1,677	Term Loan, 2.67%, Maturing October 24, 2013		1,593,360

			$	16,785,945

Cable and Satellite Television — 4.5%
		Cequel Communications, LLC
	475	Term Loan - Second Lien, 4.81%, Maturing May 5, 2014	$	425,719
	1,133	Term Loan - Second Lien, 6.31%, Maturing May 5, 2014⁽⁴⁾		1,026,523
		Charter Communications Operating, Inc.
	1,962	Term Loan, 6.25%, Maturing April 28, 2013		1,837,371
		CSC Holdings, Inc.
	1,481	Term Loan, 2.04%, Maturing March 29, 2013		1,434,220
		CW Media Holdings, Inc.
	1,191	Term Loan, 3.85%, Maturing February 15, 2015		1,029,104
		Insight Midwest Holdings, LLC
	1,029	Term Loan, 2.31%, Maturing April 6, 2014		977,171
		Kabel Deutschland GmbH
EUR	1,000	Term Loan, 2.29%, Maturing March 31, 2012		1,336,575
		MCC Iowa, LLC
	1,975	Term Loan, 2.02%, Maturing January 31, 2015		1,862,784
		ProSiebenSat.1 Media AG
EUR	62	Term Loan, 3.53%, Maturing March 2, 2015		33,381
EUR	9	Term Loan, 3.14%, Maturing June 26, 2015		10,390
EUR	232	Term Loan, 3.14%, Maturing June 26, 2015		256,016
EUR	62	Term Loan, 3.78%, Maturing March 2, 2016		33,381
		UPC Broadband Holding B.V.
EUR	1,394	Term Loan, 4.52%, Maturing December 31, 2016		1,789,606
EUR	1,006	Term Loan, 4.77%, Maturing December 31, 2017		1,291,674
		YPSO Holding SA
EUR	191	Term Loan, 3.44%, Maturing July 28, 2014		202,969
EUR	312	Term Loan, 3.44%, Maturing July 28, 2014		331,159
EUR	496	Term Loan, 3.44%, Maturing July 28, 2014		525,938

			$	14,403,981

Chemicals and Plastics — 3.4%
		Ashland, Inc.
	254	Term Loan, 7.65%, Maturing November 20, 2014	$	259,127
		Brenntag Holding GmbH and Co.
EUR	1,111	Term Loan, 8.37%, Maturing December 23, 2013⁽⁴⁾		1,275,014
		Celanese Holdings, LLC
	1,485	Term Loan, 2.35%, Maturing April 2, 2014		1,409,891
		Cognis GmbH
	400	Term Loan, 2.62%, Maturing September 15, 2013		335,800


Principal
Amount*
(000’s omitted)		Borrower/Tranche Description	Value
		Georgia Gulf Corp.
	185	Term Loan, 9.02%, Maturing October 3, 2013	$	172,024
		Huntsman International, LLC
	2,475	Term Loan, 2.04%, Maturing August 16, 2012		2,300,278
		INEOS Group
	1,218	Term Loan, 7.50%, Maturing December 14, 2013		943,985
	1,218	Term Loan, 8.00%, Maturing December 14, 2014		943,985
		Kranton Polymers, LLC
	624	Term Loan, 2.63%, Maturing May 12, 2013		522,282
		MacDermid, Inc.
EUR	363	Term Loan, 2.75%, Maturing April 12, 2014		365,618
		Millenium Inorganic Chemicals
	300	Term Loan - Second Lien, 6.35%, Maturing October 31, 2014		187,500
		Rockwood Specialties Group, Inc.
EUR	1,425	Term Loan, 6.25%, Maturing May 15, 2014		1,970,120

			$	10,685,624

Clothing/Textiles — 0.4%
		Hanesbrands, Inc.
	1,000	Term Loan, 5.24%, Maturing September 5, 2013	$	1,007,407
	250	Term Loan - Second Lien, 4.25%, Maturing March 5, 2014		240,833
		St. John Knits International, Inc.
	110	Term Loan, 10.00%, Maturing March 23, 2012		82,775

			$	1,331,015

Conglomerates — 2.0%
		Doncasters (Dunde HoldCo 4 Ltd.)
	124	Term Loan, 2.79%, Maturing July 13, 2015	$	86,413
	124	Term Loan, 3.29%, Maturing July 13, 2015		86,413
GBP	250	Term Loan - Second Lien, 5.09%, Maturing January 13, 2016		195,234
		Jarden Corp.
	824	Term Loan, 2.35%, Maturing January 24, 2012		805,791
	167	Term Loan, 2.35%, Maturing January 24, 2012		163,016
	408	Term Loan, 3.10%, Maturing January 24, 2012		404,202
		Manitowoc Company, Inc. (The)
	249	Term Loan, 7.50%, Maturing August 21, 2014		226,155
		Polymer Group, Inc.
	1,199	Term Loan, 2.67%, Maturing November 22, 2012		1,136,081
		RBS Global , Inc.
	2,000	Term Loan, 2.96%, Maturing July 19, 2013		1,820,000
		RGIS Holdings, LLC
	813	Term Loan, 3.04%, Maturing April 30, 2014		694,906
	41	Term Loan, 3.10%, Maturing April 30, 2014		34,745
		US Investigations Services, Inc.
	516	Term Loan, 3.36%, Maturing February 21, 2015		461,954
		Vertrue, Inc.
	242	Term Loan, 3.60%, Maturing August 16, 2014		193,465

			$	6,308,375

Containers and Glass Products — 1.7%
		Berry Plastics Corp.
	534	Term Loan, 2.30%, Maturing April 3, 2015	$	455,310
		Consolidated Container Co.
	318	Term Loan, 2.54%, Maturing March 28, 2014		285,919
		Crown Americas, Inc.
EUR	970	Term Loan, 2.38%, Maturing November 15, 2012		1,265,024
		Graham Packaging Holdings Co.
	89	Term Loan, 2.56%, Maturing October 7, 2011		86,218
	893	Term Loan, 6.75%, Maturing April 5, 2014		893,176
		Pregis Corp.
	944	Term Loan, 2.54%, Maturing October 12, 2011		778,655


Principal
Amount*
(000’s omitted)		Borrower/Tranche Description	Value
		Smurfit-Stone Container Corp.
	367	DIP Loan, 8.75%, Maturing August 6, 2010	$	372,343
	198	Revolving Loan, 3.05%, Maturing December 31, 2009		187,933
	596	Term Loan, 2.89%, Maturing November 1, 2009		566,629
	136	Term Loan, 2.57%, Maturing November 1, 2011		128,749
	257	Term Loan, 2.57%, Maturing November 1, 2011		243,154
	78	Term Loan, 2.57%, Maturing November 1, 2011		73,516
	120	Term Loan, 4.50%, Maturing November 1, 2011		113,134

			$	5,449,760

Cosmetics/Toiletries — 0.3%
		Bausch & Lomb, Inc.
	121	Term Loan, 3.70%, Maturing April 30, 2015	$	114,635
	475	Term Loan, 3.85%, Maturing April 30, 2015		451,660
		Prestige Brands, Inc.
	464	Term Loan, 2.54%, Maturing April 7, 2011		455,534

			$	1,021,829

Drugs — 0.2%
		Pharmaceutical Holdings Corp.
	101	Term Loan, 3.56%, Maturing January 30, 2012	$	92,243
		Warner Chilcott Corp.
	111	Term Loan, 2.29%, Maturing January 18, 2012		108,568
	317	Term Loan, 2.46%, Maturing January 18, 2012		309,569

			$	510,380

Ecological Services and Equipment — 0.4%
		Big Dumpster Merger Sub, Inc.
	95	Term Loan, 2.54%, Maturing February 5, 2013	$	55,439
		Blue Waste B.V. (AVR Acquisition)
EUR	500	Term Loan, 2.79%, Maturing April 1, 2015		637,822
		Sensus Metering Systems, Inc.
	353	Term Loan, 7.00%, Maturing June 3, 2013		349,179
		Wastequip, Inc.
	390	Term Loan, 2.54%, Maturing February 5, 2013		228,072

			$	1,270,512

Electronics/Electrical — 1.8%
		Aspect Software, Inc.
	369	Term Loan, 3.31%, Maturing July 11, 2011	$	321,195
	500	Term Loan - Second Lien, 7.38%, Maturing July 11, 2013		271,250
		Freescale Semiconductor, Inc.
	1,186	Term Loan, 2.06%, Maturing December 1, 2013		881,140
		Infor Enterprise Solutions Holdings
	383	Term Loan, 4.04%, Maturing July 28, 2012		329,761
	735	Term Loan, 4.04%, Maturing July 28, 2012		632,042
	250	Term Loan, 5.79%, Maturing March 2, 2014		138,750
	92	Term Loan - Second Lien, 6.54%, Maturing March 2, 2014		48,125
	158	Term Loan - Second Lien, 6.54%, Maturing March 2, 2014		87,083
		Network Solutions, LLC
	695	Term Loan, 2.84%, Maturing March 7, 2014		606,476
		Open Solutions, Inc.
	318	Term Loan, 2.63%, Maturing January 23, 2014		226,526
		Sensata Technologies Finance Co.
	977	Term Loan, 2.25%, Maturing April 27, 2013		823,706
		Spectrum Brands, Inc.
	16	Term Loan, 2.60%, Maturing March 30, 2013		15,112
	324	Term Loan, 6.25%, Maturing March 30, 2013		297,284
		SS&C Technologies, Inc.
	383	Term Loan, 2.48%, Maturing November 23, 2012		344,137


Principal
Amount*
(000’s omitted)		Borrower/Tranche Description	Value
		Vertafore, Inc.
	485	Term Loan, 3.16%, Maturing January 31, 2012	$	463,247
	275	Term Loan - Second Lien, 6.66%, Maturing January 31, 2013		222,750

			$	5,708,584

Equipment Leasing — 0.1%
		AWAS Capital, Inc.
	491	Term Loan - Second Lien, 6.63%, Maturing March 22, 2013	$	224,443

			$	224,443

Farming/Agriculture — 0.1%
		BF Bolthouse HoldCo, LLC
	375	Term Loan - Second Lien, 5.79%, Maturing December 16, 2013	$	325,781

			$	325,781

Financial Intermediaries — 0.4%
		Citco III, Ltd.
	988	Term Loan, 2.85%, Maturing June 30, 2014	$	691,879
		Jupiter Asset Management Group
GBP	213	Term Loan, 3.11%, Maturing June 30, 2015		269,621
		LPL Holdings, Inc.
	492	Term Loan, 2.19%, Maturing December 18, 2014		451,817

			$	1,413,317

Food Products — 1.3%
		Acosta, Inc.
	606	Term Loan, 2.54%, Maturing July 28, 2013	$	576,695
		Advantage Sales & Marketing, Inc.
	918	Term Loan, 2.31%, Maturing March 29, 2013		877,259
		American Seafoods Group, LLC
	577	Term Loan, 2.04%, Maturing September 30, 2011		524,686
		Michael Foods, Inc.
	197	Term Loan, 6.50%, Maturing April 30, 2014		198,970
		Pinnacle Foods Finance, LLC
	1,054	Term Loan, 3.06%, Maturing April 2, 2014		963,953
		Reddy Ice Group, Inc.
	925	Term Loan, 2.04%, Maturing August 9, 2012		747,708
		Wrigley Company
	251	Term Loan, 6.50%, Maturing October 6, 2014		254,528

			$	4,143,799

Food Service — 1.4%
		Aramark Corp.
	1,881	Term Loan, 2.47%, Maturing January 26, 2014	$	1,788,854
	119	Term Loan, 3.75%, Maturing January 26, 2014		113,645
GBP	536	Term Loan, 3.33%, Maturing January 27, 2014		833,074
		Buffets, Inc.
	30	Term Loan, 7.85%, Maturing November 1, 2013⁽⁴⁾		13,964
	140	Term Loan - Second Lien, 19.12%, Maturing November 1, 2013⁽⁴⁾		65,596
		Denny’s, Inc.
	37	Term Loan, 2.38%, Maturing March 31, 2012		35,150
	117	Term Loan, 3.43%, Maturing March 31, 2012		110,820
		JRD Holdings, Inc.
	616	Term Loan, 2.54%, Maturing June 26, 2014		592,762
		OSI Restaurant Partners, LLC
	19	Term Loan, 3.05%, Maturing May 9, 2013		14,427
	208	Term Loan, 2.63%, Maturing May 9, 2014		159,629


Principal
Amount*
(000’s omitted)		Borrower/Tranche Description	Value
		QCE Finance, LLC
	275	Term Loan - Second Lien, 6.35%, Maturing November 5, 2013	$	144,375
		Selecta
EUR	741	Term Loan, 3.71%, Maturing June 28, 2015		598,242

			$	4,470,538

Food/Drug Retailers — 1.6%
		General Nutrition Centers, Inc.
	774	Term Loan, 2.73%, Maturing September 16, 2013	$	707,319
		Iceland Foods Group, Ltd.
GBP	53	Term Loan, 2.36%, Maturing May 2, 2014		87,222
GBP	250	Term Loan, 3.11%, Maturing May 2, 2015		408,564
		Rite Aid Corp.
	995	Term Loan, 2.05%, Maturing June 1, 2014		828,057
	1,492	Term Loan, 6.00%, Maturing June 4, 2014		1,348,830
		Rite Aid Funding II
	500	Term Loan - Second Lien, 15.00%, Maturing September 14, 2010		510,000
		Roundy’s Supermarkets, Inc.
	1,165	Term Loan, 3.05%, Maturing November 3, 2011		1,135,019

			$	5,025,011

Forest Products — 1.3%
		Appleton Papers, Inc.
	499	Term Loan, 6.50%, Maturing June 5, 2014	$	436,387
		Georgia-Pacific Corp.
	1,920	Term Loan, 2.31%, Maturing December 20, 2012		1,857,670
	427	Term Loan, 3.77%, Maturing December 23, 2014		417,969
		Newpage Corp.
	1,789	Term Loan, 4.06%, Maturing December 5, 2014		1,555,147

			$	4,267,173

Healthcare — 5.3%
		Accellent, Inc.
	986	Term Loan, 3.17%, Maturing November 22, 2012	$	897,694
		American Medical Systems
	253	Term Loan, 2.56%, Maturing July 20, 2012		245,430
		AMR HoldCo, Inc.
	287	Term Loan, 2.30%, Maturing February 10, 2012		274,684
		Biomet, Inc.
	761	Term Loan, 3.58%, Maturing December 26, 2014		723,484
EUR	344	Term Loan, 3.98%, Maturing December 26, 2014		467,824
		Cardinal Health 409, Inc.
	417	Term Loan, 2.54%, Maturing April 10, 2014		356,802
		Carestream Health, Inc.
	880	Term Loan, 2.29%, Maturing April 30, 2013		812,967
		Carl Zeiss Vision Holding GmbH
	400	Term Loan, 2.79%, Maturing March 23, 2015		198,000
		Community Health Systems, Inc.
	105	Term Loan, 2.54%, Maturing July 25, 2014		98,475
	2,049	Term Loan, 2.90%, Maturing July 25, 2014		1,929,655
		Concentra, Inc.
	494	Term Loan, 2.85%, Maturing June 25, 2014		439,361
		Dako EQT Project Delphi
	250	Term Loan - Second Lien, 4.35%, Maturing December 12, 2016		105,417
		DJO Finance, LLC
	197	Term Loan, 3.41%, Maturing May 15, 2014		184,523
		Fenwal, Inc.
	426	Term Loan, 2.92%, Maturing February 28, 2014		363,011
	73	Term Loan, 2.92%, Maturing February 28, 2014		61,894
		HCA, Inc.
	2,066	Term Loan, 2.85%, Maturing November 18, 2013		1,943,418


Principal
Amount*
(000’s omitted)		Borrower/Tranche Description	Value
		Health Management Association, Inc.
	1,030	Term Loan, 2.35%, Maturing February 28, 2014	$	959,381
		HealthSouth Corp.
	482	Term Loan, 2.54%, Maturing March 10, 2013		460,499
		IM U.S. Holdings, LLC
	816	Term Loan, 2.42%, Maturing June 26, 2014		786,043
		Invacare Corp.
	150	Term Loan, 2.54%, Maturing February 12, 2013		135,000
		MultiPlan Merger Corp.
	431	Term Loan, 2.81%, Maturing April 12, 2013		410,791
		Mylan, Inc.
	1,000	Term Loan, 3.81%, Maturing October 2, 2014		974,200
		National Mentor Holdings, Inc.
	275	Term Loan, 2.60%, Maturing June 29, 2013		235,788
	17	Term Loan, 4.59%, Maturing June 29, 2013		14,420
		Nyco Holdings
EUR	308	Term Loan, 3.37%, Maturing December 29, 2014		398,161
EUR	308	Term Loan, 4.12%, Maturing December 29, 2015		398,161
		P&F Capital S.A.R.L.
EUR	63	Term Loan, 3.95%, Maturing February 21, 2014		87,590
EUR	204	Term Loan, 3.95%, Maturing February 21, 2014		281,824
EUR	122	Term Loan, 3.95%, Maturing February 21, 2014		168,713
EUR	98	Term Loan, 3.95%, Maturing February 21, 2014		135,349
EUR	92	Term Loan, 4.45%, Maturing February 21, 2015		127,271
EUR	34	Term Loan, 4.45%, Maturing February 21, 2015		47,298
EUR	71	Term Loan, 4.45%, Maturing February 21, 2015		98,187
EUR	290	Term Loan, 4.45%, Maturing February 21, 2015		400,042
		ReAble Therapeutics Finance, LLC
	434	Term Loan, 2.47%, Maturing November 16, 2013		422,868
		Select Medical Corp.
	491	Term Loan, 2.72%, Maturing February 24, 2012		469,511
		Select Medical Holdings Corp.
	479	Term Loan, 2.72%, Maturing February 24, 2012		457,605
		Viant Holdings, Inc.
	483	Term Loan, 2.85%, Maturing June 25, 2014		419,831

			$	16,991,172

Home Furnishings — 0.8%
		Interline Brands, Inc.
	264	Term Loan, 1.98%, Maturing June 23, 2013	$	238,497
	148	Term Loan, 1.98%, Maturing June 23, 2013		133,783
		National Bedding Co., LLC
	995	Term Loan, 2.31%, Maturing August 31, 2011		868,048
		Oreck Corp.
	442	Term Loan, 0.00%, Maturing February 2, 2012⁽²⁾⁽³⁾		138,366
		Simmons Co.
	1,307	Term Loan, 10.50%, Maturing December 19, 2011		1,241,271

			$	2,619,965

Industrial Equipment — 1.4%
		Brand Energy and Infrastructure Services, Inc.
	197	Term Loan, 3.67%, Maturing February 7, 2014	$	183,973
		CEVA Group PLC U.S.
	752	Term Loan, 3.29%, Maturing January 4, 2014		561,692
	263	Term Loan, 3.29%, Maturing January 4, 2014		196,413
	262	Term Loan, 3.60%, Maturing January 4, 2014		188,286
		EPD Holdings (Goodyear Engineering Products)
	86	Term Loan, 2.55%, Maturing July 13, 2014		58,608
	602	Term Loan, 2.55%, Maturing July 13, 2014		409,211
	200	Term Loan - Second Lien, 6.05%, Maturing July 13, 2015		79,500


Principal
Amount*
(000’s omitted)		Borrower/Tranche Description	Value
		Generac Acquisition Corp.
	363	Term Loan, 2.81%, Maturing November 7, 2013	$	285,266
		Gleason Corp.
	175	Term Loan, 2.42%, Maturing June 30, 2013		163,525
	20	Term Loan, 2.42%, Maturing June 30, 2013		18,783
		John Maneely Co.
	1,502	Term Loan, 3.63%, Maturing December 8, 2013		1,175,985
		Polypore, Inc.
	833	Term Loan, 2.56%, Maturing July 3, 2014		787,185
		Sequa Corp.
	397	Term Loan, 3.84%, Maturing November 30, 2014		324,688
		TFS Acquisition Corp.
	219	Term Loan, 5.10%, Maturing August 11, 2013		101,201

			$	4,534,316

Insurance — 1.4%
		CCC Information Services Group, Inc.
	563	Term Loan, 2.54%, Maturing February 10, 2013	$	541,048
		Conseco, Inc.
	778	Term Loan, 6.50%, Maturing October 10, 2013		567,960
		Crawford & Company
	346	Term Loan, 3.10%, Maturing October 31, 2013		297,683
		Crump Group, Inc.
	219	Term Loan, 3.29%, Maturing August 4, 2014		177,682
		Getty Images, Inc.
	1,454	Term Loan, 6.25%, Maturing July 2, 2015		1,468,050
		Hub International Holdings, Inc.
	580	Term Loan, 2.79%, Maturing June 13, 2014		535,124
	130	Term Loan, 2.79%, Maturing June 13, 2014		120,281
		U.S.I. Holdings Corp.
	718	Term Loan, 3.35%, Maturing May 4, 2014		610,268

			$	4,318,096

Leisure Goods/Activities/Movies — 2.9%
		24 Hour Fitness Worldwide, Inc.
	392	Term Loan, 2.94%, Maturing June 8, 2012	$	338,940
		AMC Entertainment, Inc.
	1,974	Term Loan, 1.79%, Maturing January 26, 2013		1,878,665
		Bombardier Recreational Products
	524	Term Loan, 3.30%, Maturing June 28, 2013		374,696
		Cinemark, Inc.
	995	Term Loan, 2.23%, Maturing October 5, 2013		956,079
		Metro-Goldwyn-Mayer Holdings, Inc.
	1,602	Term Loan, 3.54%, Maturing April 8, 2012		929,317
		National CineMedia, LLC
	725	Term Loan, 2.38%, Maturing February 13, 2015		683,313
		Regal Cinemas Corp.
	1,519	Term Loan, 4.35%, Maturing November 10, 2010		1,509,202
		Revolution Studios Distribution Co., LLC
	293	Term Loan, 4.04%, Maturing December 21, 2014		266,924
	225	Term Loan - Second Lien, 7.29%, Maturing June 21, 2015		129,375
		Six Flags Theme Parks, Inc.
	835	Term Loan, 2.66%, Maturing April 30, 2015		815,082
		Universal City Development Partners, Ltd.
	925	Term Loan, 6.00%, Maturing June 9, 2011		910,416
		Zuffa, LLC
	490	Term Loan, 2.38%, Maturing June 20, 2016		428,750

			$	9,220,759


Principal
Amount*
(000’s omitted)		Borrower/Tranche Description	Value
Lodging and Casinos — 1.4%
		Harrah’s Operating Co.
	438	Term Loan, 3.50%, Maturing January 28, 2015	$	351,809
	1,735	Term Loan, 3.51%, Maturing January 28, 2015		1,394,698
		Herbst Gaming, Inc.
	995	Term Loan, 0.00%, Maturing December 2, 2011⁽²⁾		451,038
		Isle of Capri Casinos, Inc.
	216	Term Loan, 2.04%, Maturing November 30, 2013		204,533
	539	Term Loan, 2.35%, Maturing November 30, 2013		511,331
	163	Term Loan, 2.35%, Maturing November 30, 2013		154,185
		New World Gaming Partners, Ltd.
	58	Term Loan, 3.10%, Maturing June 30, 2014		38,113
	287	Term Loan, 3.10%, Maturing June 30, 2014		188,176
		Venetian Casino Resort/Las Vegas Sands, Inc.
	166	Term Loan, 2.09%, Maturing May 14, 2014		131,778
	824	Term Loan, 2.09%, Maturing May 23, 2014		652,235
		VML US Finance, LLC
	133	Term Loan, 2.85%, Maturing May 25, 2012		123,468
	266	Term Loan, 2.85%, Maturing May 25, 2013		246,937

			$	4,448,301

Nonferrous Metals/Minerals — 0.5%
		Murray Energy Corp.
	686	Term Loan, 6.94%, Maturing January 28, 2010	$	665,573
		Noranda Aluminum Acquisition
	1,429	Term Loan, 2.29%, Maturing May 18, 2014		1,007,145

			$	1,672,718

Oil and Gas — 1.8%
		Citgo Petroleum Corp.
	995	Term Loan, 1.64%, Maturing November 15, 2012	$	935,155
		Dresser, Inc.
	300	Term Loan - Second Lien, 6.04%, Maturing May 4, 2015		231,250
		Dynegy Holdings, Inc.
	75	Term Loan, 1.79%, Maturing April 2, 2013		72,582
	925	Term Loan, 1.79%, Maturing April 2, 2013		897,049
		Enterprise GP Holdings, L.P.
	297	Term Loan, 2.68%, Maturing October 31, 2014		290,874
		Hercules Offshore, Inc.
	995	Term Loan, 7.58%, Maturing July 6, 2013		920,304
		Targa Resources, Inc.
	1,481	Term Loan, 2.29%, Maturing October 31, 2012		1,455,844
	818	Term Loan, 2.60%, Maturing October 31, 2012		803,877

			$	5,606,935

Publishing — 4.0%
		American Media Operations, Inc.
	1,481	Term Loan, 10.00%, Maturing January 31, 2013 ⁽⁴⁾	$	1,187,229
		CanWest MediaWorks, Ltd.
	221	Term Loan, 4.75%, Maturing July 10, 2014		116,058
		GateHouse Media Operating, Inc.
	739	Term Loan, 2.29%, Maturing August 28, 2014		186,894
	311	Term Loan, 2.30%, Maturing August 28, 2014		78,606
		Idearc, Inc.
	2,716	Term Loan, 0.00%, Maturing November 17, 2014⁽²⁾		1,253,959
		Laureate Education, Inc.
	59	Term Loan, 3.75%, Maturing August 17, 2014		52,176
	394	Term Loan, 3.75%, Maturing August 17, 2014		348,637
		MediaNews Group, Inc.
	198	Term Loan, 6.79%, Maturing August 2, 2013		40,317


Principal
Amount*
(000’s omitted)		Borrower/Tranche Description	Value
		Mediannuaire Holding
EUR	234	Term Loan, 2.90%, Maturing October 10, 2014	$	196,354
EUR	234	Term Loan, 3.40%, Maturing October 10, 2015		196,354
		Nebraska Book Co., Inc.
	712	Term Loan, 9.25%, Maturing March 4, 2011		705,374
		Nielsen Finance, LLC
	1,717	Term Loan, 2.30%, Maturing August 9, 2013		1,601,332
		Philadelphia Newspapers, LLC
	212	Term Loan, 0.00%, Maturing June 29, 2013⁽²⁾		46,733
		R.H. Donnelley Corp.
	917	Term Loan, 6.75%, Maturing June 30, 2010		707,478
		Reader’s Digest Association, Inc. (The)
	1,902	Term Loan, 2.64%, Maturing March 2, 2014		941,310
		SGS International, Inc.
	500	Term Loan, 2.92%, Maturing December 30, 2011		455,000
		TL Acquisitions, Inc.
	494	Term Loan, 2.79%, Maturing July 5, 2014		425,421
		Tribune Co.
	179	Term Loan, 0.00%, Maturing August 17, 2009⁽²⁾		73,323
	500	Term Loan, Maturing May 17, 2014^(2)(15)		192,891
	790	Term Loan, 0.00%, Maturing May 17, 2014⁽²⁾		325,677
		World Directories Acquisition
EUR	867	Term Loan, 3.02%, Maturing May 31, 2014		749,426
		Xsys, Inc.
EUR	980	Term Loan, 3.94%, Maturing September 27, 2014		925,024
		YBR Acquisition BV
EUR	450	Term Loan, 3.04%, Maturing June 30, 2013		411,020
EUR	450	Term Loan, 3.54%, Maturing June 30, 2014		411,020
		Yell Group, PLC
	2,000	Term Loan, 3.29%, Maturing February 10, 2013		1,210,000

			$	12,837,613

Radio and Television — 2.1%
		Block Communications, Inc.
	265	Term Loan, 2.60%, Maturing December 22, 2011	$	230,876
		CMP KC, LLC
	479	Term Loan, 6.25%, Maturing May 5, 2013⁽³⁾		137,572
		Intelsat Corp.
	726	Term Loan, 2.80%, Maturing January 3, 2014		694,379
	726	Term Loan, 2.80%, Maturing January 3, 2014		694,591
	726	Term Loan, 2.80%, Maturing January 3, 2014		694,379
		Ion Media Networks, Inc.
	113	DIP Loan, 10.17%, Maturing May 29, 2010⁽⁵⁾		111,495
	850	Term Loan, 0.00%, Maturing January 15, 2012⁽²⁾		229,500
		NEP II, Inc.
	171	Term Loan, 2.54%, Maturing February 16, 2014		150,533
		Nexstar Broadcasting, Inc.
	359	Term Loan, 2.24%, Maturing October 1, 2012		269,921
	379	Term Loan, 2.35%, Maturing October 1, 2012		285,401
		SFX Entertainment
	336	Term Loan, 3.72%, Maturing June 21, 2013		314,491
		Tyrol Acquisition 2 SAS
EUR	250	Term Loan, 2.54%, Maturing January 19, 2015		302,319
EUR	250	Term Loan, 3.40%, Maturing January 19, 2016		302,320
		Univision Communications, Inc.
	2,525	Term Loan, 2.54%, Maturing September 29, 2014		2,044,725
		Young Broadcasting, Inc.
	241	Term Loan, 0.00%, Maturing November 3, 2012⁽²⁾		120,625
	486	Term Loan, 0.00%, Maturing November 3, 2012⁽²⁾		243,125

			$	6,826,252


Principal
Amount*
(000’s omitted)		Borrower/Tranche Description	Value
Retailers (Except Food and Drug) — 0.8%
		American Achievement Corp.
	190	Term Loan, 6.26%, Maturing March 25, 2011	$	163,319
		Josten’s Corp.
	375	Term Loan, 2.64%, Maturing October 4, 2011		364,732
		Neiman Marcus Group, Inc.
	206	Term Loan, 2.50%, Maturing April 5, 2013		169,506
		Orbitz Worldwide, Inc.
	309	Term Loan, 3.51%, Maturing July 25, 2014		225,152
		Oriental Trading Co., Inc.
	300	Term Loan - Second Lien, 6.29%, Maturing January 31, 2013		52,500
	446	Term Loan, 9.75%, Maturing July 31, 2013		316,789
		Rent-A-Center, Inc.
	256	Term Loan, 2.04%, Maturing November 15, 2012		245,732
		Rover Acquisition Corp.
	414	Term Loan, 2.72%, Maturing October 26, 2013		398,629
		Savers, Inc.
	100	Term Loan, 3.06%, Maturing August 11, 2012		95,466
	109	Term Loan, 3.06%, Maturing August 11, 2012		104,452
		Yankee Candle Company, Inc. (The)
	412	Term Loan, 2.29%, Maturing February 6, 2014		376,683

			$	2,512,960

Steel — 0.2%
		Algoma Acquisition Corp.
	701	Term Loan, 2.79%, Maturing June 20, 2013	$	582,206
		Niagara Corp.
	294	Term Loan, 7.25%, Maturing June 29, 2014		149,940

			$	732,146

Surface Transport — 0.1%
		Swift Transportation Co., Inc.
	500	Term Loan, 3.56%, Maturing May 10, 2014	$	388,379

			$	388,379

Telecommunications — 1.5%
		Asurion Corp.
	425	Term Loan, 3.58%, Maturing July 13, 2012	$	410,391
	250	Term Loan - Second Lien, 6.79%, Maturing January 13, 2013		226,042
		BCM Luxembourg, Ltd.
EUR	369	Term Loan, 2.42%, Maturing September 30, 2014		449,395
EUR	369	Term Loan, 2.67%, Maturing September 30, 2015		449,445
EUR	500	Term Loan - Second Lien, 4.79%, Maturing March 31, 2016		507,169
		CommScope, Inc.
	313	Term Loan, 3.10%, Maturing November 19, 2014		306,100
		Crown Castle Operating Co.
	499	Term Loan, 1.79%, Maturing January 9, 2014		474,946
		Intelsat Subsidiary Holding Co.
	292	Term Loan, 2.80%, Maturing July 3, 2013		277,892
		IPC Systems, Inc.
GBP	256	Term Loan, 3.44%, Maturing May 31, 2014		354,306
		Macquarie UK Broadcast Ventures, Ltd.
GBP	219	Term Loan, 2.59%, Maturing December 26, 2014		305,694
		Stratos Global Corp.
	302	Term Loan, 3.10%, Maturing February 13, 2012		293,182
		Windstream Corp.
	860	Term Loan, 1.98%, Maturing July 17, 2013		834,253

			$	4,888,815


Principal
Amount*
(000’s omitted)		Borrower/Tranche Description	Value
Utilities — 1.6%
		AEI Finance Holding, LLC
	75	Term Loan, 5.99%, Maturing March 30, 2012	$	64,291
	525	Term Loan, 3.60%, Maturing March 30, 2014		447,904
		Astoria Generating Co.
	375	Term Loan - Second Lien, 4.10%, Maturing August 23, 2013		339,687
		Calpine Corp.
	743	DIP Loan, 3.48%, Maturing March 29, 2014		683,996
		Mirant North America, LLC
	897	Term Loan, 2.04%, Maturing January 3, 2013		853,378
		NRG Energy, Inc.
	1,038	Term Loan, 2.01%, Maturing June 1, 2014		986,866
	556	Term Loan, 2.10%, Maturing June 1, 2014		529,027
		TXU Texas Competitive Electric Holdings Co., LLC
	221	Term Loan, 3.80%, Maturing October 10, 2014		171,262
	1,206	Term Loan, 3.80%, Maturing October 10, 2014		930,340

			$	5,006,751


Total Senior Floating-Rate Interests (identified cost $202,573,749)			$	183,972,024

Mortgage-Backed Securities — 60.0%

Collateralized Mortgage Obligations — 8.7%


Principal
Amount
(000’s omitted)		Security	Value
		Federal Home Loan Mortgage Corp.:
$	6,359	Series 2113, Class QG, 6.00%, 1/15/29	$	6,770,221
	3,200	Series 2167, Class BZ, 7.00%, 6/15/29		3,421,125
	4,159	Series 2182, Class ZB, 8.00%, 9/15/29		4,585,985
		Federal National Mortgage Association:
$	229	Series 1989-89, Class H, 9.00%, 11/25/19	$	260,079
	505	Series 1991-122, Class N, 7.50%, 9/25/21		555,474
	4,638	Series 1993-84, Class M, 7.50%, 6/25/23		5,167,756
	1,729	Series 1994-42, Class K, 6.50%, 4/25/24		1,870,280
	1,353	Series 1997-28, Class ZA, 7.50%, 4/20/27		1,486,999
	1,230	Series 1997-38, Class N, 8.00%, 5/20/27		1,391,338
	2,074	Series G-33, Class PT, 7.00%, 10/25/21		2,251,421


Total Collateralized Mortgage Obligations (identified cost $25,944,314)			$	27,760,678

Commercial Mortgage-Backed Securities — 2.2%


Principal
Amount
(000’s omitted)		Security	Value
$	595	CSFB, Series 2004-C3, Class A5, 5.113%, 7/15/36	$	575,019
	700	GECMC, Series 2004-C1, Class A3, 4.596%, 11/10/38		660,483
	1,250	GECMC, Series 2004-C3, Class A4, 5.189%, 7/10/39 ⁽¹⁶⁾		1,251,098
	1,250	GSMS, Series 2004-GG2, Class A6, 5.396%, 8/10/38		1,161,010
	1,270	L-UCMT, Series 2004-C6, Class A6, 5.02%, 8/15/29		1,149,148
	1,000	MSC, Series 2003-IQ6, Class A4, 4.97%, 12/15/41		972,708
	1,225	WBCMT, Series 2004-C12, Class A4, 5.249%, 7/15/41⁽¹⁶⁾		1,156,807


Total Commercial Mortgage-Backed Securities (identified cost $6,690,989)			$	6,926,273

Mortgage Pass-Throughs — 49.1%


Principal
Amount
(000’s omitted)		Security	Value
		Federal Home Loan Mortgage Corp.:
$	7,379	2.956%, with maturity at 2035⁽⁶⁾	$	7,517,021
	11,561	5.00%, with maturity at 2019		12,176,362
	11,342	6.00%, with various maturities to 2029		12,012,374
	2,459	6.15%, with maturity at 2027		2,613,232
	5,792	6.50%, with maturity at 2019⁽⁷⁾		6,202,166
	8,893	7.00%, with various maturities to 2035		9,566,346
	6,005	7.50%, with various maturities to 2035		6,709,834
	7,361	8.00%, with various maturities to 2032⁽⁷⁾		8,266,319
	6,148	8.50%, with various maturities to 2031		7,086,020
	569	9.00%, with maturity at 2031		669,631
	532	9.50%, with various maturities to 2022		612,583
	1,187	11.50%, with maturity at 2019		1,308,260
		Federal National Mortgage Association:
$	8,384	5.00%, with maturity at 2013	$	8,687,000
	2,897	5.50%, with maturity at 2029		3,001,057
	3,498	6.321%, with maturity at 2032⁽⁶⁾		3,616,332
	7,221	6.50%, with maturity at 2018		7,673,951
	12,314	7.00%, with various maturities to 2033		13,417,541
	14,183	7.50%, with various maturities to 2031		15,842,398
	4,148	8.00%, with various maturities to 2029		4,684,130
	850	8.50%, with various maturities to 2027		969,629
	1,913	9.00%, with various maturities to 2029		2,214,954
	132	9.50%, with maturity at 2014		138,693
	1,706	10.00%, with various maturities to 2031		1,954,511
		Government National Mortgage Association:
$	6,453	7.50%, with maturity at 2025	$	7,211,059
	6,398	8.00%, with various maturities to 2027		7,291,682
	3,363	9.00%, with various maturities to 2026		3,962,237
	574	9.50%, with maturity at 2025		659,502
	702	11.00%, with maturity at 2018		787,253


Total Mortgage Pass-Throughs (identified cost $150,566,120)			$	156,852,077


Total Mortgage-Backed Securities (identified cost $183,201,423)			$	191,539,028

Asset-Backed Securities — 0.0%


Principal
Amount
(000’s omitted)		Security	Value
$	500	Centurion CDO 9 Ltd., Series 2005-9A, Class D1, 5.863%, 7/17/19⁽⁶⁾⁽⁸⁾	$	30,000


Total Asset-Backed Securities (identified cost $500,000)			$	30,000

Corporate Bonds & Notes — 0.2%


Principal
Amount
(000’s omitted)		Security	Value
Building and Development — 0.1%
		Grohe Holding, Variable Rate
EUR	500	3.871%, 1/15/14	$	505,981

			$	505,981


Principal
Amount
(000’s omitted)		Security	Value
Telecommunications — 0.1%
		Qwest Corp., Sr. Notes, Variable Rate
$	200	3.879%, 6/15/13	$	189,000

			$	189,000


Total Corporate Bonds & Notes (identified cost $846,625)			$	694,981

Foreign Corporate Bonds & Notes — 1.2%


Principal
Amount
(000’s omitted)		Security	Value
		JP Morgan Chilean Inflation Linked Note
$	2,337	3.80%, 11/17/15⁽⁹⁾	$	2,465,816
		Kazkommerts International
	2,000	7.875%, 4/7/14		1,330,000


Total Foreign Corporate Bonds & Notes (identified cost $3,647,650)			$	3,795,816

Foreign Government Securities — 8.3%


Principal
Amount
(000’s omitted)		Security	Value
		Ghana Government Bond
GHS	320	13.50%, 3/30/10	$	204,368
GHS	1,300	13.67%, 6/11/12⁽³⁾		736,087
GHS	730	13.69%, 3/15/10		467,965
		Ivory Coast
$	562	4.00%, 3/31/28⁽²⁾		206,559
		Nota Do Tesouro Nacional
BRL	2,972	6.00%, 5/15/15⁽¹⁰⁾		1,549,332
		Poland Government Bond
PLN	6,687	3.00%, 8/24/16⁽¹⁷⁾		2,164,180
		Republic of Georgia
$	1,501	7.50%, 4/15/13		1,292,061
		Republic of Indonesia
$	600	6.875%, 1/17/18		610,500
$	1,960	11.625%, 3/4/19⁽⁸⁾		2,646,000
		Republic of Iraq
$	1,040	5.80%, 1/15/28		715,000
		Republic of Macedonia
EUR	1,716	4.625%, 12/8/15		2,000,920
		Republic of South Korea
$	970	7.125%, 4/16/19		1,090,944
		Republic of Turkey
TRY	5,565	10.00%, 2/15/12⁽¹¹⁾		4,006,397
TRY	8,962	12.00%, 8/14/13⁽¹²⁾		7,048,822
		Republic of Uruguay
UYU	46,811	5.00%, 9/14/18⁽¹³⁾		1,843,420


Total Foreign Government Securities (identified cost $22,858,470)			$	26,582,555

Common Stocks — 0.0%


Shares		Security	Value
Building Products — 0.0%
	234	Euramax International, Inc.⁽³⁾	$	0
	154	United Subcontractors, Inc.⁽³⁾		19,681

			$	19,681

Hotels, Restaurants & Leisure — 0.0%
	6,477	Buffets, Inc.	$	8,906

			$	8,906


Total Common Stocks (identified cost $27,778)			$	28,587

Currency Options Purchased — 0.0%

Principal

Amount

of Contracts

Strike

Expiration

Description

(000’s omitted)

Price

Date

Value

Japanese Yen Put Option

JPY

741,000

106.91

4/8/10

34,848

Total Currency Options Purchased
(identified cost $128,433)

34,848

Short-Term Investments — 7.9%

Foreign Government Securities — 4.7%


Principal
Amount
(000’s omitted)		Security	Value
		Egypt Treasury Bill
EGP	3,350	0.00%, 10/27/09	$	589,888
		Iceland Treasury Bill
ISK	89,914	0.00%, 10/15/09		597,924
ISK	277,352	0.00%, 11/16/09		1,824,630
		Iceland Treasury Note
ISK	131,164	7.00%, 3/17/10		881,353
		Lebanon Treasury Bill
LBP	560,000	0.00%, 9/24/09		369,621
LBP	581,160	0.00%, 10/1/09		383,667
LBP	559,000	0.00%, 10/8/09		368,692
LBP	525,000	0.00%, 10/22/09		345,618
LBP	586,500	0.00%, 12/17/09		379,982
LBP	852,790	0.00%, 12/24/09		551,660
LBP	879,100	0.00%, 12/31/09		567,790
LBP	848,000	0.00%, 1/7/10		546,846
LBP	570,000	0.00%, 1/21/10		366,401
		Lebanon Treasury Note
LBP	585,000	9.32%, 10/8/09		391,098
LBP	586,100	9.32%, 10/22/09		392,139
		Sri Lanka Treasury Bill
LKR	192,980	0.00%, 10/30/09		1,636,789
LKR	349,400	0.00%, 1/8/10		2,895,594
LKR	218,000	0.00%, 1/15/10		1,809,540


Total Foreign Government Securities (identified cost $14,769,194)			$	14,899,232

Other Securities — 3.2%


	Interest
Description	(000’s omitted)		Value
Cash Management Portfolio, 0.00%⁽¹⁴⁾	$	10,257	$	10,256,589


Total Other Securities (identified cost $10,256,589)			$	10,256,589


Total Short-Term Investments (identified cost $25,025,783)			$	25,155,821


Total Investments — 135.3% (identified cost $438,809,911)			$	431,833,660


Less Unfunded Loan Commitments — 0.0%			$	(37,633	)


Net Investments — 135.3% (identified cost $438,772,278)			$	431,796,027

Currency Options Written — (0.0)%

Principal

Amount

of Contracts

Strike

Expiration

Description

(000’s omitted)

Price

Date

Value

Japanese Yen Call Option

JPY

(1,057,000

)

76.30

4/8/10

(114,050

)

Total Currency Options Written
(premiums received $135,484)

(114,050

)

Other Assets and Liabilites — (35.3)%

(112,626,378

)

Net Assets — 100.0%

319,055,599



The percentage shown for each investment category in the Portfolio of Investments is based on net assets.

CSFB	-	Credit Suisse First Boston

DIP	-	Debtor in Possession

GECMC	-	General Electric Commercial Mortgage Corporation

GSMS	-	GS Mortgage Securities Corporation II

L-UCMT	-	LB-UBS Commercial Mortgage Trust

MSC	-	Morgan Stanley Capital I

WBCMT	-	Wachovia Bank Commercial Mortgage Trust

BRL	-	Brazilian Real

EGP	-	Egyptian Pound

EUR	-	Euro

GBP	-	British Pound Sterling

GHS	-	Ghanaian Cedi

ISK	-	Icelandic Krona

JPY	-	Japanese Yen

LBP	-	Lebanese Pound

LKR	-	Sri Lanka Rupee

PLN	-	Polish Zloty

TRY	-	New Turkish Lira

UYU	-	Uruguayan Peso

*		In U.S. dollars unless otherwise indicated.

(1)		Senior floating-rate interests (Senior Loans) often require prepayments from excess cash flows or permit the borrowers to repay at their election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, Senior Loans will have an expected average life of approximately two to four years. The stated interest rate represents the weighted average interest rate of all contracts within the senior loan facility and includes commitment fees on unfunded loan commitments, if any. Senior Loans typically have rates of interest which are redetermined either daily, monthly, quarterly or semi-annually by reference to a base lending rate, plus a premium. These base rates are primarily the London Interbank Offered Rate (“LIBOR”) and secondarily, the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit (“CD”) rate or other base lending rates used by commercial lenders.



(2)				Defaulted security. Currently the issuer is in default with respect to interest payments.

(3)				Security valued at fair value using methods determined in good faith by or at the direction of the Trustees.

(4)				Represents a payment-in-kind security which may pay all or a portion of interest in additional par.

(5)				Unfunded or partially unfunded loan commitments. The Fund may enter into certain credit agreements all or a portion of which may be unfunded. The Fund is obligated to fund these commitments at the borrower’s discretion.

(6)				Adjustable rate security. Rate shown is the rate at July 31, 2009.

(7)				Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.

(8)				Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At July 31, 2009, the aggregate value of these securities is $2,676,000 or 0.8% of the Fund’s net assets.

(9)				Bond pays a 3.80% coupon on the face at the end of the payment period. Principal is adjusted based on changes in the Chilean UF (Unidad de Fomento) Rate. The original face is $2,000,000 and the current face is $2,337,225.

(10)				Bond pays a 6.00% coupon on the face at the end of the payment period. Principal is adjusted based on the ICPA (Amplified Consumer Price Index) as determined by the Brazilian Institute of Geography and Statistics. The original face is BRL 1,615,000 and the current face is BRL 2,972,131.

(11)				Bond pays a 10.00% coupon on the face at the end of the payment period. Principal is adjusted based on the Turkey Inflation Indexed CPI. The original face is TRY 4,586,000 and the current face is TRY 5,564,882.

(12)				Bond pays a 12.00% coupon on the face at the end of the payment period. Principal is adjusted based on the Turkey Inflation Indexed CPI. The orignal face is TRY 8,502,000 and the current face is TRY 8,961,508.

(13)				Bond pays a 5.00% coupon on the face at the end of the payment period. Principal is adjusted based on the Uruguayan inflation rate. The original face is UYU 38,030,000 and the current face is UYU 46,810,778.

(14)				Affiliated investment company available to Eaton Vance portfolios and funds which invests in high quality, U.S. dollar denominated money market instruments. The rate shown is the annualized seven-day yield as of July 31, 2009. Net income allocated from the investment in Cash Management Portfolio for the fiscal year to date ended July 31, 2009 was $31,438.

(15)				This Senior Loan will settle after July 31, 2009, at which time the interest rate will be determined.

(16)				Weighted average fixed-rate coupon that changes/updates monthly.

(17)				Bond pays a 3.00% coupon on the face at the end of the payment period. Principal is adjusted based on the Polish Consumer Price Index. The original face is PLN 5,827,000 and the current face is PLN 6,686,890.

A summary of financial instruments outstanding at July 31, 2009 is as follows:

Forward Foreign Currency Exchange Contracts

Sales


			Net Unrealized
Settlement			Appreciation
Date	Deliver	In Exchange For	(Depreciation)
8/28/09	British Pound Sterling 1,456,409	United States Dollar 2,381,768	$	(50,956	)
8/7/09	Euro 2,915,745	United States Dollar 4,146,189		(9,648	)
8/17/09	Euro 1,422,985	United States Dollar 1,987,042		(41,197	)
8/27/09	Euro 1,400,000	United States Dollar 1,990,695		(4,828	)
8/31/09	Euro 14,458,552	United States Dollar 20,271,035		(337,990	)
8/31/09	Japanese Yen 204,100,000	United States Dollar 2,157,597		130
7/20/10	Kazakhstan Tenge 186,263,000	United States Dollar 1,142,718		(16,719	)
7/21/10	Kazakhstan Tenge 185,190,000	United States Dollar 1,143,148		(9,368	)
7/23/10	Kazakhstan Tenge 181,859,600	United States Dollar 1,120,860		(10,454	)
8/20/09	Philippine Peso 71,400,000	United States Dollar 1,479,088		(4,106	)
8/24/09	Philippine Peso 97,600,000	United States Dollar 1,993,464		(33,358	)
8/24/09	Philippine Peso 55,300,000	United States Dollar 1,145,568		(2,826	)
8/13/09	South African Rand 18,183,562	United States Dollar 2,240,045		(98,989	)
8/20/09	South African Rand 39,778,983	United States Dollar 4,890,458		(219,353	)
10/30/09	Sri Lanka Rupee 192,980,000	United States Dollar 1,654,634		(7,971	)
1/8/10	Sri Lanka Rupee 349,400,000	United States Dollar 2,963,528		(15,656	)
1/15/10	Sri Lanka Rupee 218,000,000	United States Dollar 1,849,809		(7,056	)

			$	(870,345	)

Purchases


			Net Unrealized
Settlement			Appreciation
Date	In Exchange For	Deliver	(Depreciation)
8/21/09	Australian Dollar 1,466,500	United States Dollar 1,169,475	$	55,629
9/2/09	Brazilian Real 2,883,492	United States Dollar 1,509,287		27,302
8/24/09	British Pound Sterling 1,460,000	Euro 1,695,543		21,978
8/24/09	Colombian Peso 3,463,573,521	United States Dollar 1,737,869		(42,851	)
8/10/09	Indian Rupee 113,446,400	United States Dollar 2,339,583		25,250
8/10/09	Indonesian Rupiah 11,672,000,000	United States Dollar 1,131,446		44,001
9/4/09	Indonesian Rupiah 11,710,000,000	United States Dollar 1,175,467		1,418
9/28/09	Indonesian Rupiah 12,600,000,000	United States Dollar 1,241,624		20,779
8/13/09	New Turkish Lira 1,995,812	United States Dollar 1,273,327		80,582
8/20/09	Norwegian Krone 18,017,300	United States Dollar 2,826,465		111,780
8/27/09	Norwegian Krone 12,390,000	United States Dollar 1,973,653		46,530
9/3/09	Polish Zloty 15,987,300	Euro 3,815,403		46,122
8/31/09	Serbian Dinar 76,800,000	Euro 815,460		4,310
9/21/09	Serbian Dinar 80,500,000	Euro 847,368		7,976
8/17/09	South Korean Won 4,262,000,000	United States Dollar 3,435,019		34,744
7/20/10	Ukraine Hryvnia 11,484,300	United States Dollar 1,142,716		(42,997	)
7/21/10	Ukraine Hryvnia 11,317,000	United States Dollar 1,143,131		(59,827	)
7/23/10	Ukraine Hryvnia 11,065,700	United States Dollar 1,117,747		(59,269	)
6/15/11	Yuan Renminbi 20,600,000	United States Dollar 3,116,490		(36,035	)
6/15/11	Yuan Renminbi 9,800,000	United States Dollar 1,483,724		(18,265	)
8/26/09	Zambian Kwacha 2,553,900,000	United States Dollar 482,961		22,487
12/11/09	Zambian Kwacha 3,099,500,000	United States Dollar 582,066		5,051
12/21/09	Zambian Kwacha 3,170,000,000	United States Dollar 587,037		10,971
1/27/10	Zambian Kwacha 2,558,443,600	United States Dollar 470,475		4,952
5/26/10	Zambian Kwacha 3,486,700,000	United States Dollar 589,368		23,585
5/27/10	Zambian Kwacha 3,186,400,000	United States Dollar 537,698		22,171

			$	358,374

At July 31, 2009, closed forward foreign currency purchases and sales contracts excluded above amounted to a receivable of $184,227 and a payable of $72,440.

Futures Contracts


									Net Unrealized
Expiration			Aggregate						Appreciation
Date	Contracts	Position	Cost			Value			(Depreciation)
9/09	14 Euro-Bobl	Short	$	(2,283,399	)	$	(2,317,680	)	$	(34,281	)
9/09	10 Euro-Bund	Short		(1,688,653	)		(1,739,436	)		(50,783	)
9/09	42 U.S. 5 Year Treasury Note	Short		(4,856,103	)		(4,846,078	)		10,025
9/09	44 U.S. 10 Year Treasury Note	Short		(5,159,346	)		(5,160,376	)		(1,030	)

									$	(76,069	)


•	Euro-Bobl: Medium-term debt securities issued by the Federal Republic of Germany with a term to maturity of 4.5 to 5.5 years.

•	Euro-Bund: Long-term debt securities issued by the Federal Republic of Germany with a term to maturity of 8.5 to 10.5 years.

Interest Rate Swaps

Portfolio

Net Unrealized

Notional

Pays/Receives

Floating

Annual

Termination

Appreciation

Counterparty

Amount

Floating Rate

Rate Index

Fixed Rate

Date

(Depreciation)

JPMorgan Chase Bank

BRL 3,693,637

Pay

Brazilian Interbank Deposit Rate

12.73

1/02/12

155,682

JPMorgan Chase Bank

BRL 4,309,749

Pay

Brazilian Interbank Deposit Rate

10.35

1/02/12

(116,044

)

39,638

BRL — Brazilian Real

Credit Default Swaps — Sell Protection


		Notional		Contract					Current			Net Unrealized
		Amount*		Annual			Termination		Market Annual			Appreciation
Reference Entity	Counterparty	(000’s omitted)		Fixed Rate**			Date		Fixed Rate***			(Depreciation)
Brazil	JPMorgan Chase Bank	$	2,100		5.25	%		11/20/09		0.53	%	$	52,845
Colombia	Credit Suisse First Boston, Inc.		2,200		4.90			11/20/09		0.84			49,316
Iceland	JPMorgan Chase Bank		2,600		1.75			3/20/18		4.92			(481,229	)
Iceland	Barclays Bank PLC		800		1.88			3/20/18		4.92			(141,827	)
Iceland	JPMorgan Chase Bank		800		1.90			3/20/18		4.92			(140,866	)
Iceland	JPMorgan Chase Bank		1,000		2.10			3/20/23		4.77			(198,885	)
Iceland	JPMorgan Chase Bank		1,000		2.45			3/20/23		4.77			(172,145	)
Kazakhstan	Citigroup, Inc.		1,900		8.00			10/20/09		2.19			67,919
Kazakhstan	Barclays Bank PLC		1,900		9.75			11/20/09		2.19			81,593
Peru	Citigroup, Inc.		1,900		2.00			9/20/11		1.05			52,230
Peru	Citigroup, Inc.		1,000		2.90			10/20/13		1.37			68,675

												$	(762,374	)

Credit Default Swaps — Buy Protection


		Notional		Contract					Net Unrealized
		Amount		Annual			Termination		Appreciation
Reference Entity	Counterparty	(000’s omitted)		Fixed Rate**			Date		(Depreciation)
Austria	Barclays Bank PLC	$	2,200		0.44	%		12/20/13	$	12,420
Austria	Barclays Bank PLC		1,000		1.42			3/20/14		(37,818	)
Brazil	Barclays Bank PLC		2,300		1.65			9/20/19		(19,834	)
Italy	Credit Suisse First Boston, Inc.		6,800		0.20			12/20/16		175,762
Kazakhstan	Barclays Bank PLC		2,000		2.43			9/20/13		108,837
Lebanon	Citigroup, Inc.		1,200		3.30			9/20/14		(10,469	)
Malaysia	Barclays Bank PLC		2,100		2.40			3/20/14		(155,135	)
Malaysia	Citigroup, Inc.		2,000		2.45			3/20/14		(152,213	)
Philippines	Credit Suisse First Boston, Inc.		5,000		2.15			9/20/11		(79,036	)
Philippines	JPMorgan Chase Bank		5,000		2.17			9/20/11		(81,240	)
Thailand	Citigroup, Inc.		900		0.95			9/20/19		(9,288	)
Thailand	Barclays Bank PLC		1,900		0.97			9/20/19		(22,729	)
Turkey	JPMorgan Chase Bank		10,000		2.00			3/20/10		(163,121	)
Turkey	Credit Suisse First Boston, Inc.		10,000		2.01			3/20/10		(164,131	)
Turkey	Credit Suisse First Boston, Inc.		880		2.11			1/20/13		(7,671	)
Turkey	Barclays Bank PLC		1,100		2.12			1/20/13		(9,954	)
Turkey	JPMorgan Chase Bank		3,740		2.12			1/20/13		(33,843	)
Turkey	Citigroup, Inc.		2,300		2.93			9/20/19		(155,810	)

									$	(805,273	)


*		If the Fund is the seller of credit protection, the notional amount is the maximum potential amount of future payments the Fund could be required to make if a credit event, as defined in the credit default swap agreement, were to occur. At July 31, 2009, such maximum potential amount for all open credit default swaps in which the Fund is the seller was $17,200,000.

**		The contract annual fixed rate represents the fixed rate of interest received by the Fund (as a seller of protection) or paid by the Fund (as a buyer of protection) annually on the notional amount of the credit default swap contract.

***		Current market annual fixed rates, utilized in determining the net unrealized appreciation or depreciation as of period end, serve as an indicator of the market’s perception of the current status of the payment/performance risk associated with the credit derivative. The current market annual fixed rate of a particular reference entity reflects the cost, as quoted by the pricing vendor, of selling protection against default of that entity as of period end and may include upfront payments required to be made to enter into the agreement. The higher the fixed rate, the greater the market perceived risk of a credit event involving the reference entity. A rate identified as “Defaulted” indicates a credit event has occurred for the reference entity.

Cross-Currency Swaps

Notional

Amount on

Fixed Rate

Floating Rate

(Currency

Floating

Termination

Net Unrealized

Counterparty

Received)

Delivered)

Rate

Fixed Rate

Date

Depreciation

Citigroup, Inc.

TRY 1,110

USD 687

3-month USD-
LIBOR-BBA

11.95

2/15/12

(131,946

)

Citigroup, Inc.

TRY 2,367

USD 1,427

3-month USD-
LIBOR-BBA

12.10

2/15/12

(322,352

)

Credit Suisse First Boston, Inc.

TRY 1,799

USD 1,039

3-month USD-
LIBOR-BBA

12.45

2/15/12

(292,327

)

Citigroup, Inc.

TRY 3,434

USD 2,044

3-month USD-
LIBOR-BBA

12.46

8/14/13

(522,700

)

(1,269,325

)

TRY — New Turkish Lira

The Fund pays interest on the currency received and receives interest on the currency delivered. At the termination date, the notional amount of the currency received will be exchanged for the notional amount of the currency delivered.

Written call options activity for the fiscal year to date ended July 31, 2009 was as follows:


	Principal Amount
	of Contracts		Premiums
	(000’s Omitted)		Received
Outstanding, beginning of period		—	$	—
Options written	JPY	1,057,000		135,484

Outstanding, end of period	JPY	1,057,000	$	135,484

JPY - Japanese Yen

At July 31, 2009, the Fund had sufficient cash and/or securities to cover commitments under these contracts.

In the normal course of pursuing its investment objectives, the Fund is subject to the following risks:

Credit Risk: The Fund may enter into credit default swap contacts to manage its credit risk, to gain exposure to a credit in which the Fund may otherwise invest, or to enhance return.

Foreign Exchange Risk: The Fund holds foreign currency denominated investments. The value of these investments and related receivables and payables may change due to future changes in foreign currency exchange rates. To hedge against this risk, the Fund may enter into forward foreign currency exchange contracts. The Fund may also enter into such contracts to hedge the currency risk of investments it anticipates purchasing. The Fund may also purchase or write currency option contracts to enhance return.

Interest Rate Risk: The Fund holds fixed-rate bonds. The value of these bonds may decrease if interest rates rise. To hedge against this risk, the Fund may enter into interest rate and cross-currency swap contracts. The Fund may also purchase and sell U.S. Treasury and foreign debt futures contracts to hedge against changes in interest rates.

At July 31, 2009, the aggregate fair value of derivative instruments (not accounted for as hedging instruments under Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards No. 133) by risk exposure was as follows:


		Fair Value
		Asset		Liability
Risk	Derivative	Derivatives		Derivatives
Credit	Credit default swaps	$	669,597	$	(2,237,244	)

		$	669,597	$	(2,237,244	)


Foreign Exchange	Currency options purchased	$	34,848	$	—
Foreign Exchange	Currency options written		—		(114,050	)
Foreign Exchange	Forward foreign currency exchange contracts		801,975		(1,202,159	)

		$	836,823	$	(1,316,209	)


Interest Rate	Futures contracts	$	10,025	$	(86,094	)
Interest Rate	Interest rate swaps		155,682		(116,044	)
Interest Rate	Cross-currency swaps		—		(1,269,325	)

		$	165,707	$	(1,471,463	)

The cost and unrealized appreciation (depreciation) of investments of the Fund at July 31, 2009, as determined on a federal income tax basis, were as follows:


Aggregate cost	$	440,704,380

Gross unrealized appreciation	$	19,164,083
Gross unrealized depreciation		(28,072,436	)

Net unrealized depreciation	$	(8,908,353	)

The Fund adopted FASB Statement of Financial Accounting Standards No. 157 (FAS 157), “Fair Value Measurements”, effective November 1, 2008. FAS 157 established a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.


	•	Level 1 — quoted prices in active markets for identical investments

	•	Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

	•	Level 3 — significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

At July 31, 2009, the inputs used in valuing the Fund’s investments, which are carried at value, were as follows:


	Quoted Prices in
	Active Markets for			Significant Other			Significant
	Identical Assets			Observable Inputs			Unobservable Inputs

Asset Description	(Level 1)			(Level 2)			(Level 3)		Total
Senior Floating-Rate Interests (less unfunded Loan Commitments)	$	—		$	183,604,414		$	329,977	$	183,934,391
Collateralized Mortgage Obligations		—			27,760,678			—		27,760,678
Commercial Mortgage-Backed Securities		—			6,926,273			—		6,926,273
Mortgage Pass-Throughs		—			156,852,077			—		156,852,077
Asset-Backed Securities		—			30,000			—		30,000
Corporate Bonds & Notes		—			694,981			—		694,981
Foreign Corporate Bonds & Notes		—			3,795,816			—		3,795,816
Foreign Government Securities		—			25,846,468			736,087		26,582,555
Common Stocks		—			8,906			19,681		28,587
Currency Options Purchased		—			34,848			—		34,848
Short-Term Investments		10,256,589			14,899,232			—		25,155,821

Total Investments	$	10,256,589		$	420,453,693		$	1,085,745	$	431,796,027

Forward Foreign Currency Exchange Contracts	$	—		$	801,975		$	—	$	801,975
Futures Contracts		10,025			—			—		10,025
Interest Rate Swaps		—			155,682			—		155,682
Credit Default Swaps		—			669,597			—		669,597

Total	$	10,266,614		$	422,080,947		$	1,085,745	$	433,433,306


Liability Description
Currency Options Written	$	—		$	(114,050	)	$	—	$	(114,050	)
Forward Foreign Currency Exchange Contracts		—			(1,202,159	)		—		(1,202,159	)
Futures Contracts		(86,094	)		—			—		(86,094	)
Interest Rate Swaps		—			(116,044	)		—		(116,044	)
Credit Default Swaps		—			(2,237,244	)		—		(2,237,244	)
Cross-Currency Swaps		—			(1,269,325	)		—		(1,269,325	)

Total	$	(86,094	)	$	(4,938,822	)	$	—	$	(5,024,916	)

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:


	Investment in
	Senior			Investment in
	Floating-Rate			Foreign Government			Investment in
	Interests			Securities			Common Stocks		Total
Balance as of October 31, 2008	$	269,506		$	1,735,349		$	—	$	2,004,855
Realized gains (losses)		(243,398	)		—			—		(243,398	)
Change in net unrealized appreciation (depreciation)		(83,660	)		(325,990	)		—		(409,650	)
Net purchases (sales)		(12,852	)		—			19,681		6,829
Accrued discount (premium)		(700	)		(939	)		—		(1,639	)
Net transfers to (from) Level 3		401,081			(672,333	)		—		(271,252	)

Balance as of July 31, 2009	$	329,977		$	736,087		$	19,681	$	1,085,745


Change in net unrealized appreciation(depreciation) on investments still held as of July 31, 2009	$	(239,573	)	$	(173,437	)	$	—	$	(413,010	)

Equity securities (including common shares of closed-end investment companies) listed on a U.S. securities exchange generally are valued at the last sale price on the day of valuation or, if no sales took place on such date, at the mean between the closing bid and asked prices therefore on the exchange where such securities are principally traded. Equity securities listed on the NASDAQ Global or Global Select Market generally are valued at the NASDAQ official closing price. Unlisted or listed securities for which closing sales prices or closing quotations are not available are valued at the mean between the latest available bid and asked prices or, in the case of preferred equity securities that are not listed or traded in the over-the-counter market, by a third party pricing service that will use various techniques that consider factors including, but not limited to, prices or yields of securities with similar characteristics, benchmark yields, broker/dealer quotes, quotes of underlying common stock, issuer spreads, as well as industry and economic events.

For additional information on the Fund’s policy regarding the valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements included in its semiannual or annual report to shareholders.

Item 2. Controls and Procedures

(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant on this Form N-Q has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant on this Form N-Q has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There have been no changes in the registrant’s internal controls over financial reporting during the fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrant’s internal control over financial reporting.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Eaton Vance Short Duration Diversified Income Fund


By:		/s/ Payson F. Swaffield

		Payson F. Swaffield
		President

Date:		September 25, 2009

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By:		/s/ Payson F. Swaffield

		Payson F. Swaffield
		President

Date:		September 25, 2009

By:		/s/ Barbara E. Campbell

		Barbara E. Campbell
		Treasurer

Date:		September 25, 2009

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